I received a response to a complaint I recently made to a Debt Collection Agency called PRA Group. It was all centered around two accounts they were collecting for a Payday Loan lender called QuickQuid.
A long time ago I defaulted on these accounts with QuickQuid and eventually QuickQuid sold them on to the debt collection agency. These two QuickQuid debts are quite old and I got them during a period of utter financial madness.
As PRA had purchased both of these accounts they took over reporting of the defaults to the Credit Reference Agencies.
A bit of background
Late last year I jumped on the same bandwagon a lot of other people were riding and made a complaint about my Payday Loan, in this case the complaint was to a company called QuickQuid. My complaint was that I was not convinced that their application process and credit checking processes were as robust as they should have been.
If QuickQuid had properly credit checked me and looked at my outstanding credit at the time I took out these payday loans, they most likely would have declined my application based on affordability. This is what would happen today since the rules were all tightened up!
After some back and forth QuickQuid did not agree with me and said I could refer the complaint to the Financial Ombudsman. Taking their advice I contacted the Financial Ombudsman.
Around a month or so later QuickQuid got back to the Financial Ombudsman and said that they would write off my two loans with them and they have now removed the three defaults they recorded on my credit report. They also paid me some compensation on top which I put towards paying off other debts.
Whilst it would be nice to think that I got money for nothing, technically I did not as I had a lot of loans with QuickQuid and repaid them a heck of a lot of interest over the years. Looking back at this we probably broke about even in the end.
The two defaults PRA Group were recording on my credit file are going to be deleted within the next 10 working days. This means that five defaults will be removed although thinking about it, only two should have ever been registered, not that it would have made much difference anyway.
PRA Group despite them being a Debt Collection Agency have typically always been quite fair with me. Their response to my letter about the duplicate defaults was handled within a reasonable amount of time and the account was put on hold whilst they reviewed the situation.
Bottom line is that these defaults will all be gone soon and it is one further step towards rebuilding my credit rating for the better. Unfortunately for me there are still a few defaults on my credit report although most of them are quite old now!