Has this debt collection agency acted unlawfully?

[Pipps]

In May 2015, I filed a Consumer Credit Act ("CCA") claim with my then bank ("CCC") for faulty goods that I had purchased for which they were jointly and severally liable.

 

They ignored that claim but after I obtained a successful Ombudsman's decision they finally agreed to process it.

 

In June 2017, while the CCA claim remained in progress,

the bank sold the outstanding credit card balance (of exactly the sum of the faulty goods) to a Debt Collection Agency ("DCA").

 

The DCA immediately filed a default on my credit file against my old address for the alleged debt.

 

In September 2017, I moved home.

I also served a letter before action on the bank in respect of the still unresolved CCA claim.

 

That letter stated my new home address, as would be stated in all subsequent litigation.

The bank ignored the letter before action and a county court claim was duly filed.

 

Meanwhile,

the bank would appear to have passed my new address to the DCA,

who in turn have now removed the purported June 2017 default and replaced it with a September 2017 default.

As you might imagine, a default which is now less than 6 months old is causing me serious financial prejudice.

 

Is it lawful for a DCA to register a default for one month before then removing it and replacing it with a more recent purported default for a new address?

 

Surely a "default" can only happen once?

 

Is it possible to enforce the reinstatement of the original June default until the litigation is determined?

[dx100uk]

dca's cant issue defaults

the OC defaulted before they sold the debt.

 

however the default should have been placed at around the third month you failed to pay the OC anything

 

as for the court claim

I take it you mean you issued a section 75 claim against the OC?

[Pipps]

Does that mean you would agree that the DCA's actions have been unlawful?

 

It was indeed a claim under section 75 of the Consumer Credit Act 1979. I will win the court claim some time next year. However, I need to urgently apply for a mortgage in the meantime now.

 

The fact remains that this DCA has issued a default and then moved it forward.

 

What action should I take to resolve this as swiftly as possible please?

[renegadeimp]

Edited:

 

name the DCA please. Also, as advised, the dca cant add a default. They can update it but cant change details. Are you sure that youre not confusing the monthly updates as a new default? Do you have a historic record you can check?

[dx100uk]

Does that mean you would agree that the DCA's actions have been unlawful?

 

It was indeed a claim under section 75 of the Consumer Credit Act 1979. I will win the court claim some time next year. However, I need to urgently apply for a mortgage in the meantime now.

 

The fact remains that this DCA has issued a default and then moved it forward.

 

What action should I take to resolve this as swiftly as possible please?

 

no a dca is not a creditor and cannot issue a default.

the OC registered that when they sold the debt in june i think you said.

 

cant see what diff 6mts is going to make..

a default is there for 6yrs. 6mts is not going to make any diff to a current mortgage application...

 

dx

[Pipps]

The DCA is 1st Credit (Finance) Limited, who have allegedly bought the purported debt.

 

In June 2017, the bank notified Equifax that the credit card account had settled after reporting 3 late payments.

 

In that same month, 1st Credit notified Equifax that I held an account with them and that the account had been defaulted. For reference, I have of course never held any account within 1st Credit now know anything about them.

 

Subsequently, 1st Credit have now left that default on file with Equifax while having now also filed a second default with Callcredit for September 2017 against my new address, with no mention of the alleged June 2017 default on my Callcredit file. For December 2017, 1st Credit have now also notified Callcredit that the account is in Queried status.

 

Regarding mortgages, some lenders accept applicants with one default within the last 2 years providing none have been within the last 6 months.

 

1st Credit's conduct here seems wilfully dishonest to me. Is it unlawful? What can I do to rectify it as a matter of urgency?

[dx100uk]

when the OC sells a debt they zero [write off against tax/insurance] the balance and report the account defaulted [if they have not already done this before hand].

 

the debt buyer, in this case 1st credit, and dependent upon how the individual OC/CRF work

either..

 

1. gets their name substituted in place of the OC on the credit file [thus now 'the owner']

or

2, the old account entry by the OC is shown as closed

and

a new account entry shows in their name with all the same details

 

the defaulted date in the debt summary cannot be changed by a DCA/debt buyer

...

from there the DCA typically updates the defaulted date

but the summary date remains the same.

they also update the 'calendar' area, but that has no bearing at all.

 

IF 1st crap it ARE showing this account with an incorrect defaulted date

you simply write to them with documentary proof of the OC's original defaulted date stapled to it

giving them 14 days to rectify the error

else you will raise a complaint with the information commissioners office

and seek financial compensation.

 

when was you last payment to the OC who was?

[mariner51]

Does the Default appear on all 3 of your CRA files?

[ericsbrother]

did you receive a letter from the bank/debt buyer assigning the debt to the new owner under the 1925 Law of Property Act?

If not then the transfer is flawed and the reporting unlawful.

 

The date of the default is a bit of a red herring so I wouldnt be fixating upon that but trying to get the other matters sorted.

 

You could write a letter to 1st crud and let them know about the ombudsman's determination and the current legal claim and tell them that you will be suing them for false reporting of a non-existent debt and suggest it will be in ther interests to desist from doing so and remove the existing default because you wont be settling for a measly £100 or so but seeking substantial damages as per Durkin v DSG, Vidal Hall v Google and others.

Make the letter as consise as possible, no mention of things that are not the business of 1st crud other than the preamble here.

[London1971]

 

Regarding mortgages, some lenders accept applicants with one default within the last 2 years providing none have been within the last 6 months.

 

 

Find yourself a good Broker, who specialises in adverse and I think you will be pleasantly surprised.

[Pipps]

did you receive a letter from the bank/debt buyer assigning the debt to the new owner under the 1925 Law of Property Act?

If not then the transfer is flawed and the reporting unlawful.

 

When the purported debt was assigned I received a letter from the bank stating the following:

 

Dear Sir,

 

Your account is moving to 1st Credit Limited

We are writing to let you know about an important change to your [bank] Credit Card account that means From now on, 1st Credit (Finance) Limited, a

specialist Financial services company, will look after your account.

Your account has been transferred From [bank] to 1st Credit (Finance)

Limited. This happened on 06/07/2017.

 

What it means for you

The balance on your account is now owed to 1st Credit Limited. Rest assured this

will not affect the amount that you owe or any payment arrangements that you

already have in place. 1st Credit Limited's aim is to help you clear your outstanding

balance in a way that works For you.

 

Please read the enclosed information

Enclosed is a letter From 1st Credit Limited with details of your new account

number and how to make contact if you have any queries in relation to your

account. There are also a number of Frequently asked questions on the back of this

letter that provide Further information about what this change means For you.

 

Yours faithfully

 

Then when the bank updated 1st Credit as to my new address, an identical second letter was sent with a current date but stating the same transfer debt transfer date of 06/07/2017. Yet 1st Credit then applied a further September 2017 default to my credit file.

 

Surely the September 2017 derogatory mark is unlawful? What should I do to force the DCA to remove it immediately?

[dx100uk]

already answered...