Central Trust trashing credit file over a very old secured debt shortfall when home was repo'd by another previous company - FOS Involved ***Resolved***

[Rob4]

Hi.

 

In 2007, I took out a secured loan with Central Trust.

About 2 years later I had major health issues and became unemployed, and still unemployed.

I started on a roller coaster, relationship failed and the debts mounted.

 

Illness was so bad at one point, I was sectioned under the mental health act for a number of months.

My house was repossessed in 2013.

I hadn't paid the mortgage or any loans for many months.

 

I did have PPI on the loan, but the moment I tried to claim they said the illness must have been before I took it out, so they sent me a cheque for the fee.

Things are extremely hazy for these years, but I moved into rental accommodation in 2013, the house as far as I am aware covered the mortgage despite the secured loan being the one that took the case to court and won possession.

I never heard anything from Central Trust ever again,

 

when I joined an online credit score firm, I noted that the entry for central trust showed missed payments up to April 2013, and then noted as 'settled' and nothing owing in May 2013, and that has since fell off my credit report, which I presume is due to being over six years old.

 

This week I thought I would check my records and noticed that my credit score had nose dived and more concerning is Central Trust have placed a late payment of just over £24,000 in June this year, but it shows nothing prior to this.

 

When I click 'payment history' is shows nothing, almost like a new account.

The date of opening shows 2007.

So I am totally confused after 6 or 7 years of hearing nothing, except the account being settled in 2013, this new entry pops up from nowhere.

 

I have no idea who to turn too or who to seek advise from.

 

I would be grateful for any pointers.

 

Kind regards,

 

Robert.

[AndyOrch]

Hi Rob and Welcome to CAG

 

Is this them ?

 

https://www.centraltrust.co.uk/?gclid=EAIaIQobChMI7cnLpfr84gIVyb3tCh1FFgabEAAYASAAEgJ4dPD_BwE

 

Next inform your credit files and request Notice of Correction that the default has passed 6 years and already fell off.

 

https://www.experian.co.uk/consumer/guides/defaults.html

 

Andy

 

[Rob4]

Many thanks Andy.

That is them.

I have done as you have suggested, and done an online incident with Equifax, which is where I saw it.

I have received an email reply saying they will deal with within 28 days.

I didn't realise it was going to be that easy.

Your guidance is appreciated. 

As further update. I have received an email from Equifax saying my incident has been sent to Central Trust asking for the entry to be changed.

[AndyOrch]

Well done Rob

 

Now you know that central trust are going to deny this so you need to get your papertrail as proof that its already been recorded and entered and had reached its 6th anniversary and fell away.......they cant add to it again.

 

so its not yet that cut and dry......be prepared.

 

Andy 

[Rob4]

Hi Andy.

 

I have noted your points. I don't have any paper trail, not heard from them for over six years.

Likewise the entry on Equifax, that dropped off last few months back, and the last entry stated 'settled'.

 

Can I presume Equifax would have that information for themselves?

 

I am in a far better place these days and have no issue with any battle.

 

Is the Financial Ombudsman the next place to go should they deny my complaint?.

 

Your helps is much appreciated.

[AndyOrch]

Yes they should hold historic data...alternatively you could DSAR central trust and this should throw up the original default date.

 

Its the ICO Information Commissioner Office with regards to Data /Default reporting complaints

[Rob4]

Hi Andy.

I am pleased you mentioned that on your message before your last one.

I have managed to save the full file as a PDF, which shows at June 2013 on-wards, the account was marked as 'Dormant/Inactive' for six months and then in red 6 (in arrears) until June 2019. This was on Experian.

 

Nothing on Equifax except June 2013 saying 'settled'.

So it does show for six years that nothing happening to the account.

 

Then a new account is placed in June 2019 but this time on Equifax, and it then disappears from Experian.

So they simply stuck the balance on as a new account.

Can a company really be the that sly?

 

 

[AndyOrch]

Yep they can...you would be surprised what we see here.....and its all down to the beauty of the internet and Forums such as CAG that the this behavior can be shared.

You can imagine what went on before the Internet.

 

Knowledge is Power.

[Rob4]

Thanks for the warning Rob.

 

At least I have my file which shows what they have done. As you say, knowledge is power. Can't thank you enough, I should of known what they were capable of with their behaviour many years ago. Your sort of think they had changed.

[AndyOrch]

Leopard never changes its spots 

[Rob4]

Hi Andy. Your prediction is correct. Received an update via Equifax as follows ' I can confirm that this account is NOT settled and there is an outstanding balance of £24,743.66 which the customer needs to pay. The customer's property was sold in 2013 and this resulted in a shortfall to Central Trust of the above amount. There is no change to be made to the customer's credit profile. '

 

Do I now go to the Ombudsman?

 

Many thanks in advance.

[AndyOrch]

No the ICO as per my post #7

 

A default will stay on your credit file for six years from the date of default, regardless of whether you pay off the debt. But the good news is that once your default is removed, the lender won't be able to re-register it,  or add to it even if you still owe them money.

 

With regards to shortfalls in general after repossession

 

https://www.financial-ombudsman.org.uk/businesses/complaints-deal/mortgages/mortgage-shortfall

 

We consider whether it’s fair for the lender to recover the money if they haven’t been in touch for a long time. MCOB 13.6.4 requires residential mortgage lenders to contact their customer within six years of the sale date (five years in Scotland) to say whether they intend to recover a shortfall.

[Rob4]

H Andy.

 

I will do a DSAR request. The original default was dated 2010/11 and I have not received any communication of any sort from them since summer 2012. I also never received any form of balance sheet once the house was sold. Is it worth while making a complaint to the ICO? I will keep you posted. many thanks again for your help. Appreciated.

Edited June 26, 2019 by Rob4

[AndyOrch]

You only complain to the ICO with regards... the default issues and late marker.

You complain to the Financial Ombudsman with regards anything else..statements....Balance...shortfall.....etc etc

[Rob4]

Many thanks. I will get on with that.

[Rob4]

Hi Andy. An interesting development. I have had a letter, clearly spurned on by my complaint to Equifax. They appear to have agreed to the the dates. But they are going to chase the debt and but they have now stopped adding interest. Am I able to upload the letter securely for you to read?

[AndyOrch]

Hey Rob

 

You can upload it here to your  thread.....simply redact any identifiable details.

[Rob4]

Now attached Andy.

rob.pdf

[AndyOrch]

Jolly decent of them..I should hope no interest was added since repossession.If the shortfall mainly consists of interest and penalties and legal fees etc etc then this could be approaching statute barred....if not already ....subject the last payment date you actually made.(6 years) 

 

Only the capital element of the mortgage is limitation of 12 years...so do a bit of research Rob and try to work out what this balance consists of...you need to split the Capital away from all the other junk charges.

 

Andy

[Rob4]

Hi Andy.

 

I made no payment to them from about August 2012, I was fighting a loosing battle and just gave up, same with the mortgage.

The last contact of any sort from them was 2012.

 

Not a glimmer of anything, no phone calls and I have the same phone number, and the first letter I have had since 2012 was the one attached above, sent this week.

 

its near to seven years since they bothered to make contact.

I have never seen any form of balance sheet.

 

The original loan was £9000, when I became ill and unable to work, they sent about £1600 as they stated my illness would of been present before the insurance was taken out. But that was about 2008/2009.

 

I wasn't in a good place back then, I have moved on since then and strong enough for the battle.

 

I don't have a single letter of anything from them, everything went to the recycle bin years ago.

So a request to get the data seems my best option now.

 

Thanks again for the help.

[AndyOrch]

So this is just a secured loan taken out against the property ...not a second mortgage or remortgage.....dont suppose you recall the length of term of the loan?

 

 

 

Andy

[Rob4]

Hi Andy. No it was a secured loan, 100% not a second mortgage. Length of time I think was 10 years.

[AndyOrch]

A secured loan secured on property is treated the same a s a mortgage therefore the limitation period is 12 years 

[Rob4]

Hi Andy.

 

Are you saying i don't have to reply to their letter? I was presuming I would have to write to someone and get them to make it statute barred. If they are now going to continue updating my credit file, I will need to do something. Many thanks.

[AndyOrch]

Revised my last post Rob...with regards to Statute of Limitation.

 

However nothing changes with regards to default markers...so report it to the ICO once you have a response to the DSAR and the proof thats its been and gone past its anniversary of 6 years.