Dilemma with defaulted account due to be removed from my credit file. Advice req

[lisalane78]

I have a defaulted credit card account dating back to 08/11/2007, that is now with C L Finance. I have been paying £15 monthly for approx 3 years and the balance is at £2305. My understanding is defaulted accounts are removed from your credit file after 6 years meaning in Nov 2013 it should be removed from my file. I wondered whether CL Finance were likely to approach me and demand full payment as the time approaches for it to be removed from my file. As it happens, I have received a letter out of the blue from Lewis Debt Company stating they require the balance paying or else. I don't have that amount of cash to pay in full but really do not want to end up in court as I've tried so hard to improve my credit rating over recent years and this is the only defaulted account on my file. Is it wise to approach them at this point to make a full and final offer at a reduced rate to avoid court? Also, because I have paid this nominal fee of £15, i have read somewhere that this is an acknowledgment of the debt and therefore they may be able to take me back to court once the debt is removed from my file? I'm assuming not and this is why they make a last ditch attempt to recoup it all before hand. Any advice would be gratefully received. Thank you

[FlamingParrot]

Re: Dilemma with defaulted account due to be removed from my credit file. Advice req

I have a defaulted credit card account dating back to 08/11/2007, that is now with C L Finance. I have been paying £15 monthly for approx 3 years and the balance is at £2305. My understanding is defaulted accounts are removed from your credit file after 6 years meaning in Nov 2013 it should be removed from my file.

It should drop off 6 years after the default was recorded on the credit file, this date is not the same as the date of your last contractual payment or the date of your default notice, it's usually a few months later.

I wondered whether CL Finance were likely to approach me and demand full payment as the time approaches for it to be removed from my file.

There's no reason for that because removal from your file doesn't mean the debt is Statute Barred, not when you've been paying. If you hadn't, then yes, they could try and collect before it being SBd which would be 6 years after the last payment or written acknowledgment (5 in Scotland).

As it happens, I have received a letter out of the blue from Lewis Debt Company stating they require the balance paying or else. I don't have that amount of cash to pay in full but really do not want to end up in court as I've tried so hard to improve my credit rating over recent years and this is the only defaulted account on my file. Is it wise to approach them at this point to make a full and final offer at a reduced rate to avoid court?

First of all you'll need to find out whether Lewis actually own the debt or they are acting on behalf of the previous owner CL Finance. Have you received a notice of assignment? If you do decide to make an offer you should start low and take steps to ensure they won't chase you for the balance or sell it to another debt purchaser. Do post up before doing anything. :grin:

Also, because I have paid this nominal fee of £15, i have read somewhere that this is an acknowledgment of the debt and therefore they may be able to take me back to court once the debt is removed from my file? I'm assuming not and this is why they make a last ditch attempt to recoup it all before hand. Any advice would be gratefully received. Thank you

Sadly this is correct, making any payments, even just £1/month, IS acknowledgment of the debt and will stop it from going Statute Barred, even when it's dropped off your credit file.

[lisalane78]

Re: Dilemma with defaulted account due to be removed from my credit file. Advice req

Thank you for the information and advice. So from what you're suggesting my position is this:

1. The account will come off my credit file in November meaning I will have a good credit rating/score

I don't mind paying it off at all, it is my debt that I am responsible for I just didn't want them to have the upper hand as it is due to come off my credit file so demand payment in full or else face court because if they do this I will get a CCJ for another 6 years and ill be back to square one. I had heard that you can request a full and final settlement where they may accept reduced amounts. I will give this a go and use one of the templates. Can you recommend one specifically at all? In relation to who I owe the debt to, it says CL Finance on my file but the letters are from The Lewis Group so I'm assuming they are acting on behalf of CL Finance.
thanks again for your advice

[lisalane78]

Re: Dilemma with defaulted account due to be removed from my credit file. Advice req

The letter from Lewis Group states
We have attempted to contact you on a number of occasions regarding your outstanding balance (they haven't at all).
If we do not receive a payment within the next seven days your account will be transferred to the field agents who will arrange for a collector to call at your home to personally collect the debt

[Kafka]

Re: Dilemma with defaulted account due to be removed from my credit file. Advice req

I think CL and Lewis all operate out of Cleckheaton in Yorkshire and are different parts of the same outfit.

Please provide the full background to this account as its not clear who owns it. Also need to know:

1) The default process.
2) The assignment (if it was sold)
3) What penalty or other charges have been added on to the account since it started (these don't form part of any legitimate debt and can be challenged).

[FlamingParrot]

Re: Dilemma with defaulted account due to be removed from my credit file. Advice req

The letter from Lewis Group states
We have attempted to contact you on a number of occasions regarding your outstanding balance (they haven't at all).
If we do not receive a payment within the next seven days your account will be transferred to the field agents who will arrange for a collector to call at your home to personally collect the debt

Most threats of this nature are just empty threats, meant to scare people into ringing them and making a payment. In the unlikely event someone did turn up, there is no law that says you have to give them the time of day, they have no more right to be on your property than the neighbour's cat! If you wish, you could send them a letter such as the ones I've sent when I had similar threats (I live in England, if you happen to be north of the border, there is a slightly different version):

Dear Sirs


Account No: XYZ


Please be advised that I will only communicate with you in writing. Should it be your intention to arrange a doorstep visit, please be advised that under OFT rules, you can only visit me at my home if you make an appointment and I have no wish to make such an appointment with you.

There is an implied license under English Common Law for people to be able to visit me on my property without express permission; the postman and people asking for directions etc (Armstrong v Sheppard & Short Ltd [1959] 2 QB 384. per Lord Evershed M.R.). Therefore take note that I revoke license under Common Law for you, or your representatives to visit me at my property and, if you do so, you will be liable to damages for a tort of trespass and action will be taken, including but not limited to, police attendance.

Yours faithfully,

[FlamingParrot]

Re: Dilemma with defaulted account due to be removed from my credit file. Advice req

Thank you for the information and advice. So from what you're suggesting my position is this:

1. The account will come off my credit file in November meaning I will have a good credit rating/score

I don't mind paying it off at all, it is my debt that I am responsible for I just didn't want them to have the upper hand as it is due to come off my credit file so demand payment in full or else face court because if they do this I will get a CCJ for another 6 years and ill be back to square one. I had heard that you can request a full and final settlement where they may accept reduced amounts. I will give this a go and use one of the templates. Can you recommend one specifically at all? In relation to who I owe the debt to, it says CL Finance on my file but the letters are from The Lewis Group so I'm assuming they are acting on behalf of CL Finance.
thanks again for your advice

Up to you whether you want to make a F&F offer, bearing in mind they haven't taken you to court in all these years... Have you ever sent a CCA request to see if this debt could be enforceable? If it was me, I'd be doing this before making any offers. They may not even be able to provide anything resembling an agreement, in which case they couldn't get a CCJ even if you don't pay anything. Or they could supply defective paperwork, which could be used as a bargaining tool should you still wish to make a F&F offer. This is the CCA request:

Dear Sirs

Account No: XYZ

I hereby formally request a copy of my Consumer Credit Agreement, pursuant to s.77-79 of the Consumer Credit Act 1974 (CCA1974).

I require you to provide me with a true copy, or reconstituted copy of the credit agreement relating to any account you deem to be mine, together with any other documentation the Act requires you to provide. I expect you to comply fully and properly with this request, within the statutory time limit (12 + 2 days).

If it is your view that you are not the creditor, s.175 of the CCA1974 applies in the case of a simple assignment, and places a duty upon you to pass this request to the creditor. In the case of an absolute assignment, you are a creditor as defined by s.189. If you contend that you purchased the rights but not the duties of any agreement, you are reminded that s.189 of the Act is clear that an assignment is of both rights and duties. Your attention is drawn to ss.5(2), 3(b), 6 and 7 of the Consumer Protection from Unfair Trading Regulations 2008 (CPUTR).

I also remind you of your duties, in line with recent OFT Guidance (issued Oct 2010) surrounding Unenforceability, I presume you're aware that the OFT has stipulated that 'sections 77-79 of the Consumer Credit Act 1974 outline the information creditors must provide to debtors under fixed-term, running account & Hire Agreements'. This simply means that under these sections a debtor can pay £1 to get:

• a copy of their agreement
• copies of some of the other documents mentioned in their agreement
• a statement of account

If this information is not provided within 12 working days the debt becomes unenforceable. This means a creditor cannot:

• make the debtor pay the debt before they're supposed to
• get a court judgment against the debtor

So, in line with the OFT Guidance, and the Consumer Credit Act, please find attached my £1 payment, which is the statutory fee - note that these funds are not to be used for any other purpose. If you are unable to comply fully and properly with this request, you should confirm this in writing at the earliest opportunity, and certainly within the statutory time limit for compliance, and return the fee.

Yours faithfully,

It should be sent recorded delivery, with a PO for £1 and signed digitally using a computer font rather than your real signature, just to be on the safe side. :grin: They have 14 days to respond.

From post 1, I see this account was defaulted in Nov 2007, presumably it was taken out before April 2007... :noidea:

[lisalane78]

Re: Dilemma with defaulted account due to be removed from my credit file. Advice req

Hi
I decided to wait until November for my debt to drop off my credit file, which it has finally have an excellent credit score! However I am concerned that the this account has now been assigned to Hoist Portfolio Holding Ltd (HPH Ltd) from CL Finance. Robinson Way are collecting on behalf of HPH Ltd. I have today received a letter headed IMMEDIATE ACTION REQUIRED stating the debt may still be registered as an unpaid debt in my name adversely affecting my credit rating. Is this true? As it has only just been removed after 6 years?? They are requesting I call to agree a reduced balance to settle, however, this would be recorded on my file as " partially settled". I don't understand as it is no longer on my file at all.

I have also noticed Robinson Way have carried out a trace search on my credit file. Are they allowed to search my file without my permission? I am really anxious about anything affecting my credit rating again but do not have the balance to pay. Please advise what I should do?

[CleverClogs]

Re: Dilemma with defaulted account due to be removed from my credit file. Advice req

I decided to wait until November for my debt to drop off my credit file, which it has finally have an excellent credit score!

That just shews that one should never quite believe such nonsense - they're less reliable than Hughie Green's clap-o-meter! (link) :rofl:

However I am concerned that the this account has now been assigned to Hoist Portfolio Holding Ltd (HPH Ltd) from CL Finance.

Why are you concerned that one bunch of numpties has sold the debt to another bunch of numpties?

Robinson Way are collecting on behalf of HPH Ltd. I have today received a letter headed IMMEDIATE ACTION REQUIRED stating the debt may still be registered as an unpaid debt in my name adversely affecting my credit rating. Is this true?

I very much doubt it.

capita eorum sunt plenis stercorum

I have also noticed Robinson Way have carried out a trace search on my credit file. Are they allowed to search my file without my permission?

Yes.

I am really anxious about anything affecting my credit rating again but do not have the balance to pay. Please advise what I should do?

Send the numpties the section 78 request from post #7 and enclose a £1 Postal Order for the statutory fee.

As this debt has been through several firms by now and as it is over six years old, there is a fair chance that not even the original creditor will have enough on which to reconstitute a "twue copy" of the agreement. If they will not or cannot comply with that request, the debt becomes unenforceable at law until/unless they do comply.

[lisalane78]

Re: Dilemma with defaulted account due to be removed from my credit file. Advice req

I have posted that s78 request today....see what happens. Many thanks for your advice and assistance. Happy New Year!!

[lisalane78]

Re: Dilemma with defaulted account due to be removed from my credit file. Advice req

Hi, I wanted to update that Robinson Way responded to my s78 request dated 08/01/2014 stating

"Following your request, we have today asked for a copy of the agreement/statement to verify that you are liable to pay the amount due.

Your account has been placed on hold temporarily pending receipt of this documentation and we will contact you again in due course.

Thank you for your co-operation"

I haven't heard anything since, does this acknowledgment give them more time to find the paperwork? Should I continue to wait or follow it up?


many thanks

[lisalane78]

Re: Dilemma with defaulted account due to be removed from my credit file. Advice req

I still haven't heard anything from Robinson Way. Is there a follow up letter I should now send??
Many thanks

[jamer81]

Re: Dilemma with defaulted account due to be removed from my credit file. Advice req

hello,
Thank you for posting this, I find myself in a similar position to yours last year.... my defaults (4) are all listed on my credit file in late 2008 so I expect to see these removed by Jan 15.
Did your credit score dramatically improve and so the DCA still contact you?

many thanks

[FlamingParrot]

Re: Dilemma with defaulted account due to be removed from my credit file. Advice req

Hi, I wanted to update that Robinson Way responded to my s78 request dated 08/01/2014 stating

"Following your request, we have today asked for a copy of the agreement/statement to verify that you are liable to pay the amount due.

Your account has been placed on hold temporarily pending receipt of this documentation and we will contact you again in due course.

Thank you for your co-operation"

I haven't heard anything since, does this acknowledgment give them more time to find the paperwork? Should I continue to wait or follow it up?

I still haven't heard anything from Robinson Way. Is there a follow up letter I should now send??

Although this was posted weeks ago, the situation remains the same: there is no need to follow up a CCA request, the account will be unenforceable until such time they respond.

Theirs was a standard DCA response, they don't get documents with the accounts, they always have to go back to the original creditor to obtain them.

If you hear from them, do post up. :typing:

[lisalane78]

Re: Dilemma with defaulted account due to be removed from my credit file. Advice req

Thank you flaming parrot for replying. I have now had another letter dated 02/04/2014 stating

"Please note we have not yet received a response from the original creditor. This note is to let you know that we are continuing to seek an update, we will let you know the response as soon as we hear; your account remains on a temporary delay"

Do I just leave it at that? It's been 3 months now since the s78 request.

Jamer- my credit scored improved to very good as soon as the default dropped off my file yes. It happened automatically but I did email equifax a couple of days prior to the drop off date to remind them that I wished for it to be removed.