How long does a company have to register a default?

[LondonGuy]

Hi,
I had an account with a catalogue stupidly taken out under my name by my Wife. The account was for £200 and when she we split she didn't pay. By the time I came to know about this, it had gone to collections. I set up a payment arrangement and it will fully paid on 4th March 2013.

Throughout this time it did not once show on my credit report that I had an account with the catalogue or that a default had been applied. Checked my report on 22nd April 2013 and a default had been applied on the date 11/04/12 but only added to my credit file on 21st April 2013, a whole year later.

I have written to the company to try and speak to them to have it removed, but they refused. Do I have any grounds on the fact it has been added to my account so long after the event?

Any help it much appreciated.

[Riz]

Re: How long does a company have to register a default?

Did the catalogue have an up to date address for you at the time of the original default?

Quite possible that the account and default was being reported to the CRAs, but they did not have the correct or up to date info to link it in to your report so that it showed. That is often the reason old defaults accounts suddenly pop up on your report years after the fact, when eventually that "link" is made.

[LondonGuy]

Re: How long does a company have to register a default?

Hi, yes, I have been at my address for 5 years and this was on my credit report.

[Never-In-Doubt]

Re: How long does a company have to register a default?

Hmmmm - just read this. What they've done is clearly a breach of Data Protection within their role as a Data Controller. The problem is they tried to add an entry AFTER the event which means at the actual time they applied the derogatory data; the account was already settled so the data is factually wrong.

Regardless of whether you got a default notice or anything, a lender cannot retrospectively add any derogatory data upon settlement of an account.

Now the problem is getting it resolved. If it was me I'd consider raiding a dispute with the CRA as Data Processor meaning they're ultimately responsible for the factual recording of data. I'd say something along the lines of

"This account was never brought to my attention until [ENTER DATE YOU STARTED THE REPAYMENT PLAN] and it was agreed at that time that I'd pay £X, which I did until the account was settled in March 2013. The lender then went and added a default even though the account was never defaulted as we were in a repayment plan. This was never my debt and thus I was never aware of its existence; that aside the data reported by the lender is factually incorrect because this account was never defaulted. I was never in breach of any terms, as it was never taken out by me. Please arrange for the immediate removal of this data and remind the lender that it is a severe breach of their Data Protection registration, deliberately adding derogatory incorrect data about a data subject to a Credit Agency. I expect them to argue but this account was never defaulted. In fact it never used to appear on any credit report until AFTER the account was settled. You can see this from your own records."

Thats the approach I'd take; direct with the CRA.