UK : If a company lists a default on a payment is there any recourse to have the default amended?

January 27, 2005 6:45 AM

UK Credit Law query : If a company lists a default on a payment is there any recourse to have the default amended? (M:I)

You have left the property and the person living in the property has advised you that they will be taking over the service. They then do not do so and proceed to run up huge charges. They then report that you have left the property with no forwarding address. You trundle along merrily until you try and get a mortgage and then *BAM* huge default notice - you contact the credit agency and they agree to remove the default if the company contacts them to confirm it is okay to do so. You contact the company and make payment and then they say - "Thanks for paying - that default will remain for 6 years. Bye".

Is there anything you can do in this instance?

posted by longbaugh to Law & Government (4 answers total)

One thing you can do is write a letter to the credit reporting agency, alleging that the charge is false. I have heard that the people handling these claims are minimum wage drones, who will often just remove it from the report without doing the required research.

If it doesnt work the first time, just keep trying. There was one guy who claimed that this approach allowed him to eliminate 80% of the bankruptcy related notes on his credit report in less than 2 years after filing for bankruptcy.
posted by Irontom at 7:29 AM on January 27, 2005

IANAL - however, if you agreed to pay on the understanding that your credit record would be cleared, the the company is in breach of contract. Go and see your local Citizens Advice Bureau about sueing them - which need not be expensive, particularly if you can use the small claims route (you'll need an order of specific performance against the company - can't remember if you can get those under small claims).

Even if you paid without agreement you have options. If its a reasonable sized company write to the managing director at head offiice (google), this tends to get results. Call your MP. Call the local newspaper/radio (you could have quite a good story here - can't buy house because of evil company - even though it was someone else's debt). You could always say you had an agreement even if you didn't (but not in court!).

Finally you could file a notice of correction wwhich lets you put your side of the story across. Not sure how effective these are - but they are free. Don't forget to lodge one with Equifax, Experian and Call Credit - the UK's 3 credit reference agencies.

Good luck!
Wish I could afford a mortgage...
posted by prentiz at 4:36 PM on January 27, 2005

This sounds like an unfair contract terms / unfair terms in consumer credit contracts regulations type issue. There's no email in your profile but there is in mine. Drop me an email if you want me to take this further...
posted by dmt at 5:32 PM on January 27, 2005

Response by poster: dmt - should be down as longbaugh_mefi@(removeme)yahoo.co.uk

Further to the above I had a message from the uber-peon stating that "Unfortunately it will not be possible to make this amendment as would not be a true reflection of the payment history"

I have been told that they can do it but they are essentially refusing to do so because of the above.

It's all appreciated sirra.
posted by longbaugh at 7:44 AM on January 28, 2005