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31/05/2021 6:35 pm
Hi, brief history. I entered a trust deed in September 2018 and haven’t checked anything to do with my credit report until recently. I was under the knowledge that any creditors in my TDhad to put the account into default which would stop my report showing any missed payments and still interest and such.All the creditors involved have done this except amigo loans. I had lots of trouble with them to begin with. I wrote to them in March 2021 and requested that they put my account into default from sep 2018 as they had to and to remove the missed payments. They’re response was that my account was in default (not according to my clearscore report) and that they didn’t need to report it on my credit file and the missed payments would stay on my account as I was in arrears. Am I right in thinking they have to declare my account is in default to my credit file and that my file shouldn’t show any missed payments? All other lenders haven’t put down that I’ve missed payments. Hope this makes sense.
01/06/2021 9:26 am
Hi Landys2018. We aren't experts on credit reporting here, but as I understand it they do not have to report anything to the credit reference agencies if they don't want to - their only obligation is to ensure that any information they do report is accurate. If they are saying your account is in default but it isn't showing as such on your credit report then it follows it is inaccurate and should be amended.
In terms of missed payments, I'm not sure whether they are doing anything wrong here - if contractual payments aren't being made then perhaps they have every right to mark them as missed payments if they wish, even if that is not the convention most lenders follow after default. I may be wrong though - as I say I am not an expert on this.
The main thing is, when you are discharged from your Trust Deed they should amend the record to show that no further balance is owed.
Scottish Debt Solutions Expert - Ask me for help setting up a Scottish Trust Deed or Debt Arrangement Scheme plan.
01/06/2021 10:05 am
Hi Landys2018,
You have done the right thing in approaching the lender first and requesting they correct the information. As they have declined, I recommend raising the issue with the Credit Reference Agencies and sharing the communication you have confirming they believe the account is in default.
The CRA can then approach the lender to request they fix the problem
If you can dig out the original loan paperwork it may be helpful to have a quick read of it and identify where it mentions insolvency or "comrpomised agreement with creditors". If they identify these events as a breach of contract, default or termination event, then in my opinion they don't really have much choice but to update the listing with CRAs
Hope this helps
01/06/2021 12:31 pm
Hi Landys2018,
You still have the option to take your case to the Financial Ombudsman, if you don't agree with the company's decision.
I have a situation with MBNA at present, where my credit file with Clearscore is showing missed payments prior to entering my Sequestration which I was discharged on November 2020, and I wrote to MBNA to have this rectified, because all of our payments were up to date, with nothing missed. I received a phone call on Friday stating the Credit Section of MBNA does not see any missed payments being reported, so I've had to send a screen shot of the information I can see on Clearscore. They (MBNA) are due to get back to me this week.
