Credit Reference Agency Record

You have received a letter from us recently because we’ve identified that we have been reporting inaccurate information about your account to Credit Reference Agencies. We apologise for this error and we’re now correcting it.

As our letter explains, based on your payments, our reporting should’ve shown that your account had been defaulted. By defaulted, we mean that you have not made the minimum monthly payment for 6 months or more by either:

not making any repayments to us
or not providing sufficient level of payment to us

What you need to know about your Credit Reference Agency record…

We have to provide accurate information to Credit Reference Agencies regarding the status of all our customers’ accounts. This means that we have to register your account as defaulted when you fail to make a number of payments – even if you’re now making payments to us. This also applies if the payments you make are too low. The information we provide allows financial organisations to make the right lending decisions.

We’ll correct our reporting error and update the information held by Credit Reference Agencies to show that your account has defaulted unless you’re able to make a satisfactory proposal for repayment. Please note that the recording of a default and previous payment performance may affect your ability to get credit from other lenders.

Your account will be reported as defaulted 28 days after the date of the letter that we recently sent to you. Please refer to the letter we sent you for confirmation of the outstanding balance.
Before registering your account as defaulted, we must give you notice of our intention to report your account. You’ll then have 28 days to make a repayment proposal. Please take a look at the enclosed FAQs for the options available to you

What happens next?

If your existing payment arrangement is sufficient to be classed as a formal arrangement your account will not be immediately defaulted. Your account will be continuously reviewed for the level of payment being made in line with the definitions of a satisfactory payment – where the level of payment is classed as a token arrangement rather than a formal payment arrangement then we are obliged to report your account as defaulted.

If you have any questions about your account or would like to discuss repayment of your account, just give us a call on the number quoted on our recent letter.

You can reach us Monday - Friday 9am - 6pm. You can also find some frequently asked questions below.

Registering a Default

What are the changes being made to correct my credit reference file?

We’ll be correcting your account status which was being reported incorrectly. If a satisfactory proposal for the dealing with the debt is not agreed we will register a default as we’re required to report this as a responsible lender. We’ll update your record to reflect the correct status retrospectively from the date it should have been reported as default

Why have you sent me a Formal Demand?

The Formal Demand is sent because you didn’t comply with the default notice we sent you some time ago. The document outlines the future intention to register a default and that the balance on your account is due. Your account will already have been closed, spending blocked and interest and fees suspended and this document represents formal closure of your account.

Why are you backdating my record with a default status?

We want to ensure that you’re not unfairly impacted by recording a default status on your account. To avoid this we’re issuing you with a Formal Demand now and giving you the time and opportunity to respond before we register your account as defaulted. If after 28 days we don’t hear from you or receive a satisfactory proposal we’ll then register the default using your current balance, which will reflect any payments you’ve made. If you’re able to settle the account we won’t register the default.

Backdating of the default date information is important because default statuses stay on your record for six years from the date of default before being removed. This means that the default will expire 6 years from the original date that the default should have been applied.

Which Credit Reference Agencies do we report to?

What are my options?

I have been declared bankrupt – will you still register a default?

I’m making payment to you each month – what does this mean to me?

If the payments you are making each month are less than the standard minimum payment for your account, but they are over 0.5% of the outstanding balance, then you can avoid having the default registered by continuing to make payment in line with your agreement. If you are making payment that are less than 0.5%, we are still required to update the default status against your credit file If you are able to make payments but do not have an agreement in place with us already, please call us on 0800 161 5205.

Credit reference agency record