Reporting on Credit File after 5 years and information wrong?

[tripspace]

Hi all,

 

I was wondering if someone could please share some knowledge on this.

Also please be kind

A friend told me about this forum

 

I checked my credit file and found that an old loan (which I am still paying off) has appeared.

This was originally a Credit Union loan, which was closed in April 2012

and then transferred to a Debt Collection Agency.

 

 

Since this has occurred I made a small amount of payments and finally agreed to £20 once I got a decent job.

I actually was planning on paying this off this month, ironically enough!

 

However, the Union has defaulted me for the last 5 years on the loan

and have the wrong information on this

e.g. it says I pay £64 a month and the debt has been going down.

This is incorrect (as there is only £300 left, not £600!)

and also how would I default if it was going down?

 

 

So here is my questions:

 

• If the original creditor closed the account in April 2012,

can they now all of a sudden put this on my credit file?

If so, is there a limit to the time they can put this on?

After 5 years this seems ridiculous.

 

• If the debt was transferred to an agency, should they not be the ones reporting on this?

 

• I assume if I contact them they will correct this as per the April 2012 closure?

If so, I can live with this….

But, I’m not want to continue to rage for another 6 years for the mistakes of my past to go away

 

This is quiet upsetting as I went to apply for a mortgage today, but was denied.

I’ve worked really hard since I’ve been a student to pay off debt and pay bills on time.

 

 

I was finally seeing the light at the end of the tunnel, even to the point my one

and only default fell of last month and I hit the 843 mark on my score

(even though scores are rubbish anyway, still nice to see).

 

Please help

 

Thanks in advance.

[martin2006]

What is the date of the default? if theyve defaulted you for the last 5 yrs then it has 1 more year to run and it will be gone forever if ive read correct

[tripspace]

Hi thanks for the reply, the date is for September 2012. It was transfered to a DCA in April 2012.

[dx100uk]

so there is a default in the debt summary line?

who is listed as the owner on the file

the loan co, or the DCA?

 

 

whos the DCA too please

and who, on their letters is listed as their client?

[martin2006]

I am pretty certain that credit unions do not report to cra's but i could be wrong, mine was never reported to any of the 3 main cra's.

That said, once sold on to a dca, it would then be reported so the dates seem to match up with whats happened.

Im guessing that there was no default from the CU and it only appeared once the dca took the debt over and defaulted it from sept 12?

So its there now till sept 18.

[silverfox1961]

Sorry for jumping in on this (too many cooks etc.)

 

A little confused. The account was closed in April 2012. If this was closed due to a failure to pay then a default should have been placed before doing so however, if the debt collector was collecting on behalf of the CU then no default would have to be placed so long as a payment arrangement was in place. If only token payments were being made, a default should have been placed automatically.

No debt collector can amend a credit file unless they have bought the debt when they can change the name of the creditor but not the dates so it sounds odd that you have been defaulted after the debt collector took over. This I would query as if they have delayed placing a default for whatever reason, this can be challenged.

 

What letters did the CU send you and what dates did they do so?

 

I would be sending the relevant CU a SAR to get confirmation of what happened. In the meantime, you could place a 'Notice of Correction' on your credit file (up to 200 words) to explain in your own words why you feel it is wrong and that it is under investigation. You don't have to mention that it is being investigated by you!

 

If nothing changes, your credit file could be screwed for another 26 months.

[tripspace]

Hi all,

 

First off, thank you so much for the responses!

It is really appreciated.

 

Dx100UK & Martin2006

 

The owner for the entry is Glasgow Credit Union and the DCA is C&L Collections.

 

SilverFox1961

 

They informed me the credit hasn't actually been sold

- but this is a debt recovery company they use to recover the funds.

The account was escalated to C&L in April 2012 apparently.

 

 

The default has been put in place continuously for 5 years....

as apparently I haven't paid the "£64" that was supposed to be paid.

Therefore it is a continuous to default.

 

 

There was no letters from GCU after April 2012.

I don't know what they said (I can't seem to find them),

but there was no mention that the account would continue to default.

 

 

GCU would not accepted a reduced amount to be paid to the account

and then the C&L people chased,

 

 

I promptly set up payments for £5 a month and have been increasing this up to £25 a month now

- with a view to clear off the entire debt.

 

The latest update

 

Essentially I called them today, after lodging a complaint,

they explained to me as the "£64" was not kept up it will continue to default.

They claim that the DCA should have sent me a letter / advised me

that the account would continue to default if I did not agree £64.

 

 

However, I remember distinctively asking this as I was working to pay off all debt

(as I had a part-time job coming up / going back to uni) if this would affect my credit file.

said no as long as I make payments as agreed.

also stated that this was reported on Equifax...

I never ever saw it on there.

said this is fair and complaint,

 

 

I told them it wasn't fairly reported because the letter clearly claimed (from what I can remember)

C&L had just taken over... no behalfs nothing.

 

I'm kinda stuck in a rock and a hard place..

. as technically speaking I didn't pay the amount they wanted each month,

but I did continue to contribute to account as it was all I could afford at the time.

 

 

Again, Ironically I was planning on paying it off this month..

. now I'm not even sure if there will be any point,

because with a 5 year old default (for every month) i'm screwed :-x

 

I'm half tempted to tell them to shove it and let them chase me for the £300 quid left.

I'm pretty sure they won't bother their arse taking me to court.

(I know this is a bad idea, but so tempting)

 

I really did think I was doing the right thing by making some kind of payment.

There must be some way to prove they didn't make me aware of the all the information

and failed to clarify that anything less than the above amount would impact my file

Edited July 7, 2016 by tripspace

[silverfox1961]

First of all, the marking of a credit file as defaulted doesn't mean they have defaulted you every year for the past few years as the date of the original default hasn't changed. All it is showing is that the default is continuing and will still fall off your file after 6 years from the original default date.

 

I bet you made the fundamental error of not getting anything they said in writing.

 

The only way to get info from the CU is to send them a SAR. There may be something on the account history to confirm what they told you. I suspect there won't be anything but you never know.

The default will vanish from you credit file within a month of the 6 years from the original default date.

 

By the way, closing an account doesn' actually mean it is closed. It is closed on their open books but remains on their bad loan books (for tax purposes) With the DCA, any letters should have said 'original creditor' somewhere on there of 'account collection on behalf of,,,'

 

Ignore what i said about 26 months. crap maths. 21 months or thereabouts.

[tripspace]

Hi Silverfox,

 

This is something I can totally live with.

if I pay off the debt say tomorrow.

 

 

Although I haven't been making their "acceptable payments" the default / account will only last from the April 2012 period?

 

 

Meaning that the attached will fall off?

 

Essentially they are still reporting default each month.

So this is why the above is really confusing.

 

Also I thought, if you closed and account... that reset the timer on the account?

If that's not the case, I have a credit card with a number 3

(that I am waiting until next year to fall off) for a full clean history.

 

I've also just checked an old closed account that I only closed in 2014.

I started the account in 2009.

Although the payment history from 60-72 months are still showing?

Is this right based on the above?

 

Thanks

[silverfox1961]

The monthly thing doesn't mean you are being defaulted every month. It just shows that the original default is outstanding. If you settled the debt, your file would show settled but also that the default is still in place until it falls off.

 

Closed accounts stay that long as well after closure as this is the industry standard. companies also have to keep this data for 6 years after closure due to money laundering regulations. so lonh as nothing on the closed account is negative, that can help lenders when making credit decisions.

[dx100uk]

any account closed or otherwise will vanish when its defaulted date reaches 6yrs paid or not

[maroondevo52]

I am pretty certain that credit unions do not report to cra's but i could be wrong, mine was never reported to any of the 3 main cra's.

 

Some do some don't, I'm sure the larger one's do.

The credit union at my work does but my local one does not.

[martin2006]

I was basing that on a CU i had a while back which has never appeared on any of my cra files

[maroondevo52]

I was basing that on a CU i had a while back which has never appeared on any of my cra files

 

Yes, I've had loans from my local credit union for over 20 years and they have never appeared on any cra files.

[tripspace]

Hi all,

 

Thanks for the advice.... so the plan of attack is to clear and close the account on the 21st.

 

Although i'm in two minds if I should bother paying it off now, since it will fall off anyway.

 

So just for complete clarification. If I pay this off and close the account, it will appear closed and as a result the original default in 2012 or whatever will fall off. Will the whole account disappear from this date in 2018?

 

Thanks.

[dx100uk]

yes

 

 

dx

[tripspace]

Excellent.

 

Thank you all.

 

 

The only reason I was confused is because I have been making payments,

but if the file is going to be closed and disappear anyway next yearish. Lets be done with it

 

My next thing to argue with them is when the default occurred....

cause the account was opened in 2011 and i'm pretty sure it hit default before 2012.

Even quicker. Cheers all.