Info re defaults logged with credit ref agencies whilst an account remains unenforceable

[DojoJoJo]

Hi all,

Stumbled upon this today, which is an interesting report on a successful appeal clarifying legal status of creditors listing defaults with credit referencing agencies when an account is recognised as wholly unenforceable. I assume that also includes SB which in itself legally recognises that a debt is unenforceable through the courts.

You may have already seen it, but it may just help someone who has such a default and is trying to persuade a lender of their integrity.

http://www.hendersonchambers.co.uk/w...t-21.11.14.pdf

Moral of the story seems to be that the credit referencing agencies need to get their act together.

Would be interested in any comments

Dojojojo

[Never-In-Doubt]

Re: Info re defaults logged with credit ref agencies whilst an account remains unenforceable

We know about this. What about it?

Have you you misread it maybe? There is no formula for a CRA to say "unenforceable" so they report what the lender tells them. That is simply, did you breach the contract. Yes or no. If yes then you get a default. If no you won't.

If you then win in court you'd expect the default to be removed and if not you could look at compensation for damages for the default but whilst you're querying it, they can't (at present time) record anything other than a D. That's where this case is prevalent.

ONLY a court can declare a debt unenforceable. Not a bank. Not a DCA. Therefore only a court can decide if the DN registered is lawful. They both go hand in hand. If you argue it's UE and they sue you, then the court agrees it's UE you'd ask for DN removal. If it was found to be EN the default would remain.

Durkin v DSG Retail & Foster-Burnell v Lloyds both give another slant on things.