Trust Deed Forum - Defaulted accounts on credit file after discharge
Trust-Deed.co.uk
Home Home Page


















Trust Deed Forum
Trust Deed Forum
Home | Profile | Register | Active Topics | Members | Search | FAQ
Username:
Password:
Save Password
Forgot your Password?

 All Forums
 Trust Deeds
 Scottish Trust Deed Forum
 Defaulted accounts on credit file after discharge
 New Topic  Reply to Topic
Author Previous Topic Topic Next Topic  

Kezzabelle5
New Member

3 Posts

Posted - 16 April 2017 :  07:50:20  Show Profile  Reply with Quote
Hi there, this is my first post! My husband and I entered into a Trust Deed in December 2011. We reduced our payments half way through due to me having a baby and returning to work part time (which lengthened the term of the TD). We FINALLY finished paying it in December 2016. We received our discharge letter in February 2017. Now we are concentrating on rebuilding our credit rating. We've signed up to Experian. My credit file shows 2 defaulted accounts: one for MBMA with a zero balace and one for Max Recovery (who I believe MBMA sold the debt too) which shows continuous defaulted payments even though I was in a protected TD. Can anyone advise me on the best way to sort this please. Any advice appreciated, many thanks.

Firewalker
Advanced Contributor

451 Posts

Posted - 16 April 2017 :  16:11:51  Show Profile  Reply with Quote
Hi Kezzabelle

Congratulations - on completing the Trust Deed and having a baby amidst all that!

If you do not know already, defaults and trust deed will fall off your record six years after the date of the default, irrespective of what information they show.

With that in mind, you need to check the default dates to ensure they are the same as the date you SIGNED the Trust Deed.

If they differ, contact the company concerned, give them date of Trust Deed (and you can add that you have been discharged, although signing date is the significant information). I provided a copy of form 5 and highlighted signing date.

If you had no debt with the Max Recovery it would seem to be a false entry and should be removed. You can ask them when it was transferred and explain it should not be showing on your file. Your debt was with MBNA.

Please have a notebook ready, keep a note of date and time of calls and to whom you spoke. Also briefly what they said. Hopefully, there will be no problems, however you will have information to use if you have to escalate your complaint. I received 3 compensation payments because it was not actioned.

You have until December this year to bring all your default dates into line with the Trust Deed date so it all disappears and you start 2018 afresh!. I did not bother pursuing for a couple of weeks out.

Good luck!
Go to Top of Page

Kezzabelle5
New Member

3 Posts

Posted - 16 April 2017 :  20:50:35  Show Profile  Reply with Quote
Thank you so much for helpful reply. So am I right in saying that MBNA should not have sold on my debt to Max Recovery if I was already in my trust deed? I never missed a payment until my trustee advised me to stop making payments.
Go to Top of Page

Firewalker
Advanced Contributor

451 Posts

Posted - 17 April 2017 :  00:49:17  Show Profile  Reply with Quote
Hi Kezabelle.

I am not in a position to say whether they should or should not have. I know they did with mine after the Trust Deed. In fact, if I remember correctly, it was also MBNA for me.

Thinking logically, you only had one debt so how can two companies be claiming ownership of the debt on your credit file. For me, it should be one or the other.

It is probably a matter of timing and I believe debt is bought in bulk with balance of making more than they lose.

I suggest you speak with MBNA first about correcting their default date. You can ask them about the timing and transfer for your information when dealing with the other company.

Good luck. It would be interesting to hear what the explanation and outcome is if you would not mind sharing - I know your situation is not isolated.


Go to Top of Page

TDA (Debt Adviser)
Trust Deed Expert



11837 Posts

Posted - 18 April 2017 :  16:48:39  Show Profile  Reply with Quote
Hi Kezzabelle5.

Creditors can and do sell debts after people enter trust deeds. It's actually very common.

Firewalker has provided you with some excellent information.

Qualified Debt Adviser & Forum Administrator - Ask me anything about Trust Deeds    
Go to Top of Page

pingpong
Advanced Contributor

78 Posts

Posted - 19 April 2017 :  11:01:43  Show Profile  Reply with Quote
It happens all the time, the original creditor sells off a batch. In my file both appeared but it makes no difference to your rating which will be bad anyway because you have a TD on it.

Just make sure that the default date from MAX recovery is the same date that you signed your TD. Also the original creditor is responsible for making sure that they information that the recovery company puts on your file is accurate.

this is from the ICO Website

"One of my defaulted accounts has been sold on to a debt collection company. This debt is now appearing twice on my credit file. Is this right?

If it is clear from looking at the two entries that they relate to the same account, with the same default date and balances and the original debt is clearly showing as settled then it is likely that we would consider this to be fair in terms of the DPA. However, if the entries are recorded on your credit file in a way that may look like they are two different debts, or that could make the debt remain on your credit file for longer than six years from the date of the original default it is unlikely that we would consider this to be fair."
Go to Top of Page

Kezzabelle5
New Member

3 Posts

Posted - 26 April 2017 :  09:36:56  Show Profile  Reply with Quote
Thanks for the replies, hopefully it's sorted over the phone - they confirmed my TD details by looking up the public register of insolvencies and agreed to update their records. It can take 6-8 weeks approximately.
Go to Top of Page
  Previous Topic Topic Next Topic  
 New Topic  Reply to Topic
Jump To:
Trust Deed Forum © 2008 - 2017 www.trust-deed.co.uk Go To Top Of Page
Snitz Forums 2000

(c) Channel Active Limited. Company Number: 06412452. Data Protection Registration: Z1332750.
Telephone calls may be monitored or recorded. Authorised and regulated by the Financial Conduct Authority.
Trust-Deed.co.uk, Clyde Offices, 2nd Floor, 48 West George Street, Glasgow, G2 1BP. Tel: 0141 2490416.