Old lending stream 2009 debt incorrect default date

[Benny1973]

hi after some advice please

 

I took out a lending stream loan of £200 way back in July 2009.

Never paid.

 

 

Lending stream then sold on to PRA.

Pra then added their own notice to my credit File.

 

On Experian the lending stream debt has a default date of 28/11/2012 !!!

 

 

A whole 3 years and 5 months after I initially took out the loan.

This seems ridiculous with 3 months being the norm.

The PRA entry also therefore has the same default date.

 

 

The lending stream entry is showing as satisfied obviously cause pra have bought it

but their entry is very much active,

again with a ridiculous default date of over 40 months after the £200 payday loan was taken out !

 

With anything like the correct default date this would have already dropped off my credit file

but as it is its causing me a problem now im looking for a mortgage.

 

I put in a dispute with the credit reference agency

but obviously PRA just bat it off by saying its the correct date and nothing will be changed.

 

Is it worth me writing to lending stream asking them to correct the default date on my file as well as with pra otherwise I will take it to the financial ombudsman ?

 

Having looked at these 2 entries closely on Experian I notice 2 slight differences between the entries.

 

 

The loan start and default dates are identical however,

the lending stream entry is for £226.

The pra group entry is for £225.

Also the pra entry uses a different variation of my first name to the lending stream entry.

 

Having looked at another similar post to mine the advice given was

 

"Only the Original Creditor can issue a default.

If and/or when the OC sells/assigns any alleged debt,

then the receiving DCA can only replace the name of the OC,

the rest of the details MUST remain the same,

that includes the date and amount.

 

You need to report PRA to the Information Commissioner's Office for issuing/adding a default, which the have no legal right to do."

 

Therefore

The amount and my first name are different on the entries.

Can I therefore go to the ICO and force PRA to remove their entry ?

[dx100uk]

it might pay you to go down the irresponsible lending route as well?

yes the defaulted date by the OC

should be correct, and its not

and the DCA should not be changing it either.

 

 

it might be worthy to 'short circuit 'the whole issue'

by giving the ICO a ring....

[Benny1973]

Thanks for the prompt reply

 

Irresponsible lending route ? What would this entail ?

 

The defaulted date by the oc shouldn't be over 40 months after the loan wasn't repaid that's for certain but how do I go about challenging/ changing this ? Lending stream will just say that's what it is. Is it worth me putting in a dispute with experian ? I've heard LS aren't great at replying so if the fail to reply to experian within a set time period does it then get altered by experian ?

 

Can I ring the ICO or is it better to write ?

 

Many thanks

[martin2006]

Ring the ICO first and see what they say about it, you may then need to confirm everything with paperwork to prove what you are saying. Shouldnt be difiicult to prove.

[fairhead]

Hi Benny,

 

If the account was fully assigned to PRA, then the LS credit file entry should be listed under 'closed accounts', marked as either settled or assigned with a 0 balance.

 

The PRA entry should be under 'open accounts' if the default is still active. However, you are completely right in saying that the default is dated long after it should be. For short-term loan accounts, the default should be filed between 3-6 months after the relationship has broken down, i.e no payments made.

 

The ICO will side with you on the phone I imagine, but their complaints procedure is a faff. I personally wouldn't bother. Same goes for the FOS. The FOS don't actually rule using laws or regulations, they simply order what they feel is fair. And if you catch the adjudicator in a bad mood that day, you've had it.

 

Personally, I would contact LS with a formal complaint, detailing everything they have done wrong and what they need to do to put it right. PRA are simply using the data provided to them, so it's LS at fault. They normally get 8 weeks to respond, but give them 14 days. If you hear nothing within 14 days, send them a letter of intended legal action (see my post about legal action against payday lender), giving them another 14 days to respond.

 

If after a total of 30 days you hear nothing, or they refute your claims, submit a claim form against them. Even though they are based in the US, they also have a registered UK address, so jurisdiction shouldn't be a problem.

 

Some people will say court action is a bit extreme, but it's really not. You could get this sorted in less than 6 weeks by doing this. If you use the ICO or FOS, you'll be waiting at least 4-6 months and may not get the result you are looking for.

 

Any question just ask! Good luck

[fairhead]

..... Just read your initial post again.... it seems both entries should now be long removed from your credit file. You have a very strong case against them and I would say you even have a case to request compensation. As these inaccurate and unfair entries are now preventing you from obtaining vital credit, ie. a mortgage, I would include a compensation claim. £150-£300 is a realistic value and I'd suggest requesting £150 in your formal complaint, rising to £300 should you have to resort to legal action. Inform them that their current reporting is deemed as a deliberate circumvention of Section 5 of the Limitations Act, the Data Protection Act, and the ICO guidelines.

 

See what they come back with.

[Benny1973]

Many thanks for the advice fairhead.

 

 

I have attached the 2 entries on my CF, one for Lending stream showing settled and the PRA entry.

 

 

This shows the 2 different amounts (albeit only by £1), the different forename

and also the ridiculous amount of time between loan taken out and default date

 

I will do as you say because I need these removed asap.

other half is pregnant and need to buy a larger house and move from renting.

I cant wait for 4 - 6 months really.

 

 

I would just pay it if it meant clearing it but that will just show it as a settled default on my CF which is not what I want.

I want it gone.

 

Is there no way they could say in am now admitting the debt is mine

and by writing to them demanding they sort, they reset the 6 year clock on this ?

[dx100uk]

don't confuse the SB clock with the default

they are not related

[fairhead]

Hi Benny,

 

No point paying as it now as it's also Statute Barred. Make your formal complaint with no admission of liability. You could also reiterate that as you have not acknowledged the debt, nor made any payments towards it for over 6 years, it is now Statute Barred (presuming this is true and you make no contact with LS prior to the default?). They can't reset the 6 year clock from you complaining. Just ensure you do not acknowledge acceptance of any debt. It's somewhat regardless as they have sold it, but just be sure to cover all bases.

[fairhead]

don't confuse the SB clock with the default

they are not related

 

I'm aware of this, but the default on a short-term loan account would typically expire no more than 6 months after the SB date. PDL's cannot be reported for longer than 6 years + 6 months after no payments have been made.

[dx100uk]

sorry quotes don't work for us

it was in relation too:

 

 

Is there no way they could say in am now admitting the debt is mine

and by writing to them demanding they sort, they reset the 6 year clock on this ?

[Benny1973]

hi - I am about to send the following letter to LS. Is there anything you think I should add or remove ?

Date: 23/05/2016

Formal Complaint - Loan ID #

Dear Sirs,

After recently obtaining a copy of my Credit File from the Credit Reference Agencies, I am concerned to note that your company has placed an incorrect "Default” notice date against an account I held with you.

Please find attached document “Principles for the Reporting of Arrears, Arrangements & Defaults at Credit Reference Agencies” and a copy of my Experian credit File

• The account was created on 01/7/2009

The Attached 2014 document by the Information Commissioner’s Office: Principles for the Reporting of Arrears, Arrangements and Defaults at Credit Reference Agencies. It states: on “page 6 PRINCIPLE 4”

“As a general guide, [a default may be recorded] when you are 3 months in arrears, and normally by the time you are 6 months in arrears”.

• On my credit file it shows a default date of 28/11/2012, a full “40” months after the account was opened and defaulted. This is a breach of ICO guidelines and the DPA. Even allowing for the 6 months in arrears situation the default date should therefore be no later than 01/02/2010 and certainly not over 3 years, which is the current situation

Resolution

I would like you to amend my credit file accordingly by removing the duplicate entry, and also to contact debt management company PRA who are now the legal owners of the debt to update their records, giving the correct date 01/02/2010 as the default date for this account.Their reference in relation to this account is

I will allow up to 14 days from the date of this letter for you to respond to this formal complaint and if the above is not rectified I reserve the right to put in a complaint to the Information Commissioner and / or a complaint to the Financial Ombudsman as well as commencing legal action.

As these inaccurate and unfair entries are now preventing me from obtaining vital credit I would also request £150 in compensation rising to £300 should I have to resort to legal action.

It is of my opinion that your current reporting is deemed as a deliberate circumvention of Section 5 of the Limitations Act, the Data Protection Act, and the ICO guidelines

I would also add to this that the loan I was given was not affordable, my personal situation at the time, had proper checks been carried out by yourselves, should never have led me to be offered this loan. This was clearly a case of irresponsible lending.

I look forward to hearing from you

[fairhead]

I would add that the account is statute barred and your complaint is not an admission of any liability to them. I'd also remove the part about the FOS and ICO, you can't take your complaint to the FOS after 14 days, you have to wait the full 8 weeks. You also can't do both at the same time. Just say, if this can't be resolved within 14 days, legal action will be considered as time is of a necessity. Then you're good to go I think.

 

If you don't get the response you're after, then fire off the Notice of Intended Legal Action, which is straight to the point.

[Benny1973]

I would add that the account is statute barred and your complaint is not an admission of any liability to them. I'd also remove the part about the FOS and ICO, you can't take your complaint to the FOS after 14 days, you have to wait the full 8 weeks. You also can't do both at the same time. Just say, if this can't be resolved within 14 days, legal action will be considered as time is of a necessity. Then you're good to go I think.

 

If you don't get the response you're after, then fire off the Notice of Intended Legal Action, which is straight to the point.

 

 

 

Thanks - will alter and send. Is there a template letter anywhere for the notice of intended legal action ?

[fairhead]

There are various templates out there but's it's much better and probably easier to write your own. It's along the same lines of your formal complaint but more succinct. Cross that bridge if/when you come to it.

[Benny1973]

Ok ill let you know how I get on. many thanks again

[SabreSheep]

Hi

 

If you check the CAG library there may be some templates that cover your situation. As normal adapt them to suit your circumstances.

 

Templates are a good starting point.

[Benny1973]

Hi

 

The 14 days I gave LS for a response from my recorded and signed for letter of compliant was up yesterday without so much as a dickie bird so what now ?

 

 

Do I send a letter now stating due to no response my intention to start legal action ?

 

I raised the dispute on Experian 2 weeks ago also and lending stream have responded to them just to tell me to contact them and therefore as Experian have no further information then they cant alter the entry on my file.

Ive contacted them 15 days ago now and had no response !

 

112

[fairhead]

Hi

 

The 14 days I gave LS for a response from my recorded and signed for letter of compliant was up yesterday without so much as a dickie bird so what now ?

 

Do I send a letter now stating due to no response my intention to start legal action ?

 

I raised the dispute on Experian 2 weeks ago also and lending stream have responded to them just to tell me to contact them and therefore as Experian have no further information then they cant alter the entry on my file.

Ive contacted them 15 days ago now and had no response !

 

112

 

Hi Benny,

 

Did you also send them a copy by email?

It's not completely necessary but companies like this use registered offices

which just forward mail to another location.

 

 

Either way, it's time to start the litigation process, starting with your letter of intended legal action (Notice Before Action).

 

This letter should be straight to the point.

Ensure it is extremely clear what they need to do to prevent legal action,

together with a brief explanation of why they are in the wrong (legally)

and allow them exactly 14 days from the date on your letter.

 

 

Inform them if they do not settle the matter satisfactorily, or respond within this time frame,

you will submit your claim against them to the County Court via Moneyclaim online.

 

 

All costs and fees will be added to the sum of compensation you are demanding plus 8% statutory interest

from the date the credit entry should have been removed.

 

I'd send it to their registered office again, but also send it to their contact email addresses.

Title it accordingly with an added 'Immediate action required, do not ignore' to get their attention.

 

See if they reply to that. If not, you can then go straight ahead with submitting the N1 claim form to the court.

[Benny1973]

thanks fairhead

 

 

any chance you could pm me ? I cant pm until I have posted 30 messages apparently

[dx100uk]

keep it on thread please

no need for PM.

 

 

dx

[fairhead]

I'll try, not sure if you'll be able to reply