dispute/defaults.

[bluedawn]

hi. i am considering going into battle with a few companies regarding long standing debts, my first opponent looks like its going to be Paragon personal Finance, re a loan taken out in 1994, not through them initially but through Universal credit. I would appreciate it greatly if anyone on here could assist my knowlege before battle starts in earnest. I have 5 questions, here goes.

Q1. At what point does a queery about a debt formally become a dispute?

 

Q2. What is not allowed while a debt is in dispute?

 

Q3. Who ultimatly do you complain to if the creditor is ignoring the protocol while a debt is in dispute?

 

Q4. Two of the CRA's show defaults on my report, these are now over four and a half years old, the third CRA, Equifax, does not show these defaults and looks ok, Any ideas as to why they dont appear on the Equifax report?

 

Q5. If a default stays on your credit file for six years, what happens if after the six years you are still paying it back, its still not settled?

 

Im sure that i will have many more questions over the next few months but just want to try and get started and know where i stand. i thank everyone on here who tries to help others and hope that anything i learn through this site i can then try and help others too. Its unjust the way a lot of these companies seem to believe they have the right to "PUNISH" us forever because at some point in the past we may of had some difficulties.

[rory32]

Q1. At what point does a queery about a debt formally become a dispute?

 

When you dispute the amount owed, whether this be partially or in it's entirety, and have presented the dispute in writing.

Q2. What is not allowed while a debt is in dispute?

 

The creditor is not lawfully allowed to take any action against an account while it is in dispute.

Q3. Who ultimatly do you complain to if the creditor is ignoring the protocol while a debt is in dispute?

 

The creditor themselves, Trading Standards, the OFT and the FOS.

Q4. Two of the CRA's show defaults on my report, these are now over four and a half years old, the third CRA, Equifax, does not show these defaults and looks ok, Any ideas as to why they dont appear on the Equifax report?

 

Different companies use different CRA's. Equifax and Experian don't share info on defaults.

Q5. If a default stays on your credit file for six years, what happens if after the six years you are still paying it back, its still not settled?

 

It doesn't appear on your credit file, so doesn't affect your credit rating.

[bluedawn]

thanks very much rory, that clears things up for me. one thing ive just thought of which i do find scary, i have been paying a loan off for many years on reduced payments, the initial capital of £4ooo was paid back many years ago, while on reduced payments interest has not been charged, although in effect all i am paying back is interest, my point is, if they have not been applying the intesrest for such a long time can they suddenly reinstate it? they always state on their letters that they can. thank u

[rory32]

if they have not been applying the intesrest for such a long time can they suddenly reinstate it?

Yes. They don't under normal circumstances have to suspend interest but most companies do when you are on reduced payments as it is pointless applying interest.

 

If you send them a CCA request though and they default on it (12 working days after receiving your request) they can not then apply interest until they produce a copy of the credit agreement. Bearing in mind that the loan was taken out in 1994 it is unlikely that they will have it.

 

Have there been any charges on the account?

[bluedawn]

just thought of another question..sorry...re CRA's..If my credit report on Equifax looks ok, but on the other two CRA's shows defaults, is there any way that i could find out which lenders use equifax, as i am hoping to apply for a mortgage in the near future, and obviously want best market rates not bad arse defaulters rates ? thank u.

[rory32]

Credit Reference Agencies - Who uses who?...

[bluedawn]

Yes. They don't under normal circumstances have to suspend interest but most companies do when you are on reduced payments as it is pointless applying interest.

 

If you send them a CCA request though and they default on it (12 working days after receiving your request) they can not then apply interest until they produce a copy of the credit agreement. Bearing in mind that the loan was taken out in 1994 it is unlikely that they will have it.

 

Have there been any charges on the account?

yes about £400 in what they call sundry debts, they charge me £10 everytime they write to me despite being informed that i will only cpmmunicate in writing. there is also about £1700 added from what ithink original total amount payable was..but as you say i will cca THEM AND GET TERMS AND CONDITIONS too. i too doubt they have got it but they are very determined at paragon personal finance..

[bluedawn]

Credit Reference Agencies - Who uses who?...

thats outstanding ..if i use a equifax credit searcher life may not be so harsh...WOW is this up to date info? cant thank u enuf for this one:)

[rory32]

If they can't supply a copy of the credit agreement the debt is unenforceable, so it doesn't really matter how determined they are.

[rory32]

WOW is this up to date info?

As far as I know, yes.

[bluedawn]

If they can't supply a copy of the credit agreement the debt is unenforceable, so it doesn't really matter how determined they are.

 

brilliant this makes me feel a lot more confident about going for it with paragon. have you a link for a template for the best CCA request? thanks again for your help. also..in theory if they cant proove you owe them the money but you can proove you have paid them £7500, can you demand your money back? or are you pushing your luckwith that...and doesnt the fact that you have been paying someone with a credit licence imply that you must have borrowed some money ?

[rory32]

in theory if they cant proove you owe them the money but you can proove you have paid them £7500, can you demand your money back?

No a judge would deem your payments as voluntary.

 

doesnt the fact that you have been paying someone with a credit licence imply that you must have borrowed some money ?

Yes and if they can't produce a copy of the agreement the debt still exists, they just have no way of enforcing it as without a copy of the agreement which complies with the Consumer Credit Act a court can not enforce the debt.

 

Link to CCA request letter is here http://www.consumeractiongroup.co.uk/forum/general-debt/20758-creditors-dcas-letter-templates.html template N.

[bluedawn]

No a judge would deem your payments as voluntary.

 

 

Yes and if they can't produce a copy of the agreement the debt still exists, they just have no way of enforcing it as without a copy of the agreement which complies with the Consumer Credit Act a court can not enforce the debt.

 

Link to CCA request letter is here http://www.consumeractiongroup.co.uk/forum/general-debt/20758-creditors-dcas-letter-templates.html template N.

xcellent, real clear and even i can understand it, trouble with these matters is they seem daunting and are very draining and you end up just going along with things for a quiet life and then one day these people write to you again and your head is consumed with it all, what im learning from yourself and this site is just to focus on one thing at a time, keep it simple as possible and only venture into grey areas when absolutly necessary. thanks again for your experience and time. if you dont mind will let you know wot happens following the CCA.

[rory32]

if you dont mind will let you know wot happens following the CCA.

Please do