Lowell / Tesco Mobile - Default Removal

[battery426]

Hi,

I'm hoping someone will be able to help me as I am in desperate need of having a default removed from my credit record as it is effecting my ability to apply for a mortgage.

Basically, a few years ago I think (was a while ago and I can't be sure) I signed a Tesco mobile phone contract for an ex (I know this was incredibly stupid on my part and have definitely learnt my lesson) and the phone which was terminated early (by her, not me) and had a termination fee of £501. I passed this information on to her to be paid (all billing came from her account, we lived in different houses), but it looks as though it hadn't. I received a letter from Lowell early on this year saying the Tesco mobile debt has been sold to them and now owns it. I was mortified at this and immediately signed up to noddle to check my credit rating to see if there was any negative information logged which there wasn't. I have since paid the amount in full to Lowell, and since then a default has been added to my credit report as well as being linked to her address.

The only contact I had from Tesco was the final bill, I have received no emails or letters saying that this was outstanding, or payments were being missed or a default would be added. If I had, I would of paid them immediately so this exact thing wouldn't of happened.

I have recently received my £2 credit check from Equifax and currently awaiting the pass key for access to the £2 Experian credit report. The Equifax report does have two individual logs One from Lowell with the initial default date, and then the settled balance date, as well as one from Tesco with the missed payments and inevitably the default about 6 missed payments later, however this doesn't say settled ?.

Also probably worth noting I also received a "notice of assignment" accompanying a letter from Lowell apparently from Tesco saying that lowell had bought the debt. However, it looks like its been printed from the same lowell computer/printer (can tell from the printed file location on the right of the letter). The reference in the top left is the same, the dates on them are exactly the same and the letter isn't signed by anyone from Tesco.

Do I have any chance of removing this default and linked address from my credit profile, if so, how would I start going about it ?

Huge thanks for any help in advance.

[battery426]

Re: Lowell / Tesco Mobile - Default Removal

Merged with original post.

[Nibbler]

Re: Lowell / Tesco Mobile - Default Removal

So while the account was running, was O2 sending correspondence/statements to her address or yours?

Would notices and demands from O2 have gone to her address prior to you being traced by the collector?

If it was hers then it's quite possible that a default was recorded by 02 under your name at her address, either shortly before or at the time of the sale of the debt to Lowells. That may not then have shown on your report until the eventual trace/link had been made to your current address, by which time it has been switched into Lowell's name.

[battery426]

Re: Lowell / Tesco Mobile - Default Removal

We had gone our separate ways a few months after this. I didn't receive any letters from Tesco, but they did have my address as that is in the contract info. I did receive the occasional email from tesco mobile as well as the final payment bill email for early termination. All the monthly bills appear to be made available via the online account, so I'm not sure if she had received any correspondence.

[nemesis45]

Re: Lowell / Tesco Mobile - Default Removal

Tesco I suspect that will have placed the default and it is they you will have to challenge in regard to it.
It is common for notices of assignment to be sent on behalf of an original creditor by
the debt purchaser.
Sorry to say you have fallen into a very common trap, signing a phone contract and allowing someone to
use it, even if this person has in the past paid the bills it does not make them legally liable for any debt.

The argument you will have to try and put forward is that you were not aware ( though is may be argued that it reasonable to think you should have been aware) that the
cancellation charges had not been paid.

A default has been properly placed on the account there is no reasonable challenge to that.

In my opinion the only chance is too seek a " gesture of goodwill" from both Tesco and Lowell on the grounds that you have paid the debt.There is absolutely no guarantee that either will agree to remove the default.
The way information is reported to credit reference agencies is regulated by the Information Commissioners Office via its Technical Guidance on Defaults.

nem

[Nibbler]

Re: Lowell / Tesco Mobile - Default Removal

So you were legally responsible for payment, and you received a copy of the final termination and bill, by email if no other way.

It's the old problem that when you take out a contact in your name for someone else, then the legal duty is on you to make sure the terms are kept and the monies paid, no matter what private agreement you have with someone else.

Regards the default, they perhaps should have sent a few warnings, but if Tesco's T&C or other documents/info supplied with the contract warn that none payment can be reported to the CRAs, then ICO guidelines on recording defaults say that recording one without other notice is not likely to be 'unfair' under the DPA.

Likewise, a debt collector is entitled to have the default recorded changed to display their name when the debt is sold.

- - - Updated - - -

ICO guidance to case examiners.

I was not sent any default notices, should the default on my credit reference file be removed?

In most cases, the answer will be ‘no’, provided that adequate fair processing information was provided when the account was originally opened.

It may help to explain that a “default” on an individual’s credit file does not mean that an individual has been defaulted under the Consumer Credit Act; essentially, the same word is being used to describe two slightly different things (which can obviously lead to some confusion). Instead, a “default” on a credit file simply means the lender considers the relationship between itself and the individual to have broken down.

Therefore, whilst it may be a requirement of the Consumer Credit Act to issue default notices, there is no DPA obligation on a lender to issue a default notice to individuals before marking an account as being in default on their credit file. Although we advise that it is good practice to issue a notice, lenders will often have provided individuals with fair processing information about defaults and notices in the terms and conditions when the account was opened. Provided this was the case, then it is likely to satisfy the “fairness” aspects of the first principle.

[nemesis45]

Re: Lowell / Tesco Mobile - Default Removal

So you were legally responsible for payment, and you received a copy of the final termination and bill, by email if no other way.

It's the old problem that when you take out a contact in your name for someone else, then the legal duty is on you to make sure the terms are kept and the monies paid, no matter what private agreement you have with someone else.

Regards the default, they perhaps should have sent a few warnings, but if Tesco's T&C or other documents/info supplied with the contract warn that none payment can be reported to the CRAs, then ICO guidelines on recording defaults say that recording one without other notice is not likely to be 'unfair' under the DPA.

Likewise, a debt collector is entitled to have the default recorded changed to display their name when the debt is sold.

- - - Updated - - -

ICO guidance to case examiners.

Section 87 default notice are not applicable to service contracts, a final invoice/demand for payment is usually sent.

nem

[battery426]

Re: Lowell / Tesco Mobile - Default Removal

Section 87 default notice are not applicable to service contracts, a final invoice/demand for payment is usually sent.

nem

Yes thats what i've been lead to believe, but I had no notice about missed payments or anything. That seems extremely off, like I say, if i was aware of it I would of paid no questions asked.

[nemesis45]

Re: Lowell / Tesco Mobile - Default Removal

Yes thats what i've been lead to believe, but I had no notice about missed payments or anything. That seems extremely off, like I say, if i was aware of it I would of paid no questions asked.

Hello battery, we have seen so many such problems over a long time, and I cannot think of any other approach to this.
No doubt Tesco's records will show that various notices/and invoices were sent and when they were sent.
nem

[Nibbler]

Re: Lowell / Tesco Mobile - Default Removal

Section 87 default notice are not applicable to service contracts, a final invoice/demand for payment is usually sent.

nem

Yes Nem, and as you know I am fully aware of that.

Which is why I highlighted the sections which DO NOT mention them.

The sections I highlighted are equally applicable to "notices of intention to file a default with the Credit Reference Agencies" which are applicable to service contracts where defaults may be recorded with the CRAS, and similarly are not essential under DPA as long as other adequate warning has been given.

[wales01man]

Re: Lowell / Tesco Mobile - Default Removal

Whats the chances of getting the default removed?

[Nibbler]

Re: Lowell / Tesco Mobile - Default Removal

Whats the chances of getting the default removed?

Pretty slim, but possibly worth a shot regardless. Have seen some removed in similar circumstances, but it's just a case of low expectations.

[Nibbler]

Re: Lowell / Tesco Mobile - Default Removal

Yes thats what i've been lead to believe, .

What I posted applies to both, which is why I highlighted the sections that do.

The older ICO guidance made a better distinction, but was more prescriptive, so didn't really want to post that, as it might mislead now.

but I had no notice about missed payments or anything. That seems extremely off, like I say, if i was aware of it I would of paid no questions asked.

AS said, you can try arguing it to see where you get to.

See: Principles for the Reporting of Arrears, Arrangements and Defaults at Credit Reference Agencies

The lender must have notified you of their intention to register a default against you at least 28 days before doing so, in order to give you time to make an acceptable payment or reach an agreement with them on an arrangement.

Which is a tad misleading, or at least not complete compared to the actual DPA advice given to ICO case examiners, but if you quote that then you never know.

I've seen an occasional mobile default removed under similar circumstances, although much less so nowadays, and the transfer to Lowells is an addition complication. They can be awkward and unhelpful on this.

Nothing ventured, nothing gained though....

[nemesis45]

Re: Lowell / Tesco Mobile - Default Removal

Yes Nem, and as you know I am fully aware of that.

Which is why I highlighted the sections which DO NOT mention them.

The sections I highlighted are equally applicable to "notices of intention to file a default with the Credit Reference Agencies" which are applicable to service contracts where defaults may be recorded with the CRAS, and similarly are not essential under DPA as long as other adequate warning has been given.

Yes Nib as you know I am aware of that:lol:
nem

[Nibbler]

Re: Lowell / Tesco Mobile - Default Removal

Maybe more care when directing a quote then, as it appeared you were trying to "teach a grandmother to suck eggs". :lol:

(not that I'm a grandmother, or that keen on eggs )