Credit Files not changed as agreed in F&F settlement

[gelnet]

Hiya,

I suppose it is my fault not checking my CRA files regularly. in 2012 the written agreed full and final settlement was that on receipt of the money from a third party the creditor would mark the account settled, reduce the balance to £0 and close the account.

They were paid and I recently checked my CRA files. The monthly status since 2012 continues to show this:
the account in the open section
Default
bal £2100
default bal £4700
credit limit £5000

I have applied to upgrade two bank accounts to the interest bearing cash-back type since 2012 but was rejected. The reason given that my credit score was too low.

Perhaps it is a bit cheeky but is there any prospect of successfully claiming compensation from the creditor DCA for failing to update the files as agreed which would have improved my credit score?

Is there a mechanism for evaluating the improvement in my credit score if the entry had changed to
the account in the closed section
Settled
bal £0

thank you

[Never-In-Doubt]

Re: Credit Files not changed as agreed in F&F settlement

Hi

sadly you'll find very few firms agree to, let alone actually remove default entries. Unless you specifically said "with full default removal at all 3 CRA's"... Then there is unlikely to be any comeback.

who did you pay - how much did you pay & when did you pay it?

Its unlikely you'll want to spend £10-£20k taking civil action for the risk you *might* get a maximum of £8k back due to damage caused by credit agency records. That's a tad risky plus it all depends what you agreed and also whether those you settled with did close it or whether they sold the written off balance to a new debt collector.

[Riz]

Re: Credit Files not changed as agreed in F&F settlement

The default should remain, but they should have marked it as a partial settlement and closed and not recorded any outstanding balance.

Unless you can clearly demonstrate that you lost out financially (refusal or other disadvantage) due to it not being marked as settled (partial) and closed over that period, then I think your best hope is to get it corrected and perhaps - if you are lucky - a small monetary gesture of goodwill.

[Never-In-Doubt]

Re: Credit Files not changed as agreed in F&F settlement

^^^ thanks for elaborating. I presumed he'd negotiated removal of DN in its entirety at the point of offer. Of course if he's settled then the default balance should be adjusted along with the amounts; as stated.

Regards financial redress I guess that's dependant on what was agreed at outset and whether it's the company, FOS, ICO or CRA's that get the complaint...

[Riz]

Re: Credit Files not changed as agreed in F&F settlement

I wasn't 100% sure from the original post, so thought I would cover all bases.

[gelnet]

Re: Credit Files not changed as agreed in F&F settlement

Thanks for the rapid replies and advice.

The lender was Allied Irish Bank
A third party offered a sum of money as an ex-gratia payment to be in Full and Final Settlement of my account. The offer made without prejudice, liability or admission on the clear understanding that on acceptance and payment:

1. It forms a binding contract
2. The amounts owed will be set to £0
3. No further payments will be demanded by the bank or any third party. The debt will not be sold or passed on. Neither the bank or any associate company will take any action to enforce or pursue the debt in any way and I will be released immediately from any liability.
4. All CRA files will be updated to show the account as "settled" in full and closed within 14 days.

The reply from the bank's legal administration department agreed and confirmed that following payment they would proceed to update the CRA files.

The only change made to the CRA files was that the balance reduced by the amount of the F&F payment.

[Riz]

Re: Credit Files not changed as agreed in F&F settlement

They just need to mark as settled then, which no outstanding balance should a closing balance be shown.

As said, unless you can show that you have suffered significant financial loss then I think the best likely result would be what I previously said.

Seen a few creditors off £50 to £100 when they make mistakes of this kind. I seem to recall a case or 2 that went to the FOS and they awarded much the same small amounts or maybe fractionally more.

Anything is probably a bonus over and above getting the file itself corrected.

[Never-In-Doubt]

Re: Credit Files not changed as agreed in F&F settlement

So really you need to complain to the bank and then complain to the CRA's direct if the bank say go away..... Last resort is the FOS & ICO.

[gelnet]

Re: Credit Files not changed as agreed in F&F settlement

Ok, Thank you.

I will update in in due course.....