Debt Camel

Answers to questions about debts and credit ratings - in plain English!

What should the default date for a debt be?

A default badly damages your credit score, so how long will it be there?  In Britain, the credit record rules say:

the debt, including the default, is deleted from your credit record six years later after the first default.

An example: a debt with a default date in May 2014 will drop off your record in May 2020.

There are no exceptions to this rule. A debt which is marked as defaulted will disappear after six years whether you have paid it or not, in all the following situations:

  1. you have repaid the debt in full,
  2. you have made a partial settlement,
  3. you are still making monthly payments to it,
  4. you haven’t made any payment to it for years.

The default date is very important!

An older default date is better because it will disappear sooner.

The default date should be the same on all three credit reference agencies but it’s good to make sure, see How to check your credit records which explains how you can check all three credit reference agency record for free.

This article looks at what the default date should be. If you can get a creditor to change a default date from June 2015 to April 2013, the debt will disappear more than two years earlier.

What should the defaultn date be for a debt? The older the better!

When should a default be added to a credit record?

The Information Commissioner’s Office (ICO) says :

“As a general guide, [a default may be recorded] when you are 3 months in arrears, and normally by the time you are 6 months in arrears.

There are exceptions to this which may result in a default being recorded at a later stage, such as secured or long term loans e.g. mortgages, or if the product operates in a more flexible way e.g. current accounts, student loans, home credit.

So those are the main guidelines, but let’s look at specific situations.

Debt management plans and arrangements to pay

For situations where you miss a few payments, or make reduced payments, or enter a Debt Management Plan, the “3-6 months” guidance above applies.

If your arrears have already reached three months, then the lender can register a default, even if an arrangement to pay is then agreed or you pay the debt in full.

Arrears will usually continue to mount up when you have an arrangement to pay or a DMP, so later a default can be added even if you are making all the payments.

At the start of a DMP or an arrangement to pay you may not want a default – they do harm your credit score! But if you aren’t going to repay the debt in a few years, having a default is usually better because your credit score will clear up sooner. With no default date added, the record will stay until 6 years from the date the debt is finally settled which could be a long while.

So it can often be better to have a default early in a debt management plan rather than not have one – see this article on DMPs and Credit Ratings for some examples.

Overdrafts are more complicated

For most loans and credit cards the ICO 3-6 month provisions apply – the common exception is current accounts.

There is no regular or minimum monthly payment to an overdraft, so the concept of “3-6 months in arrears” doesn’t really exist. You may have abandoned an account with an overdraft and switched to using a different account, but unless you told the bank this and asked for an arrangement to repay it (for example in a debt management plan) the bank may not have been able to tell.

So default dates for overdrafts can often be later than you would think.

Debt sold to a debt collector

If a debt is sold to a debt collector, then the new creditor should use the same default date as the original creditor did. If the original creditor didn’t add a default, you can ask the original creditor to add one, then the debt collector will have to use that.

If the original creditor didn’t report to a credit reference agency at all (this is unusual) then the debt collector should apply the same ICO rule that the original creditor would have used.

CCJs

If you have had a CCJ registered for that debt, the default date must be earlier than the date of the CCJ. The CCJ stays for 6 years, so the debt disappears before the CCJ does.

Insolvency

If you have gone bankrupt, had an IVA or Debt Relief Order(DRO) then the default dates of the debts in your insolvency must not be later than the date the insolvency started. This is covered in detail in these articles:

Mortgages

Mortgages and other secured loans are an exception to the general “3-6 months in arrears” guidelines. In 2007 the ICO issued technical guidance on Filing Defaults With Credit Reference Agencies, see paragraph 14 for this specific area.

A mortgage lender has much more discretion on when to record a default, but it should generally not be later than six months after any repossession.

Only the first default date for a debt matters

When people talk about the default date for a debt, it is the first default date that matters.

Your credit file will normally show a default marker each month afterwards until the debt is settled. That looks bad, but in the credit scoring it is only counted as one default.

The whole debt will disappear six years after the first default.

What can you do if a default date looks wrong?

For some examples of how these principles have been applied in practice, see these case studies that the Financial Ombudsman has reported. They should give you a better feel for whether you can get your credit record changed.

To correct a problem with a default on your credit file you should write/email the lender (or the debt collection agency if your debt has been sold by the original lender), putting COMPLAINT as the subject, explaining why you think it is wrong.

Don’t just copy out the guidance above, add the facts and dates which relate to your specific case. Some common examples would be:

  • “I first missed payments to this debt in early 2013 and set up an arrangement to pay in June 2013”,
  • “I never received the December 2014 bill as I had moved house”,
  • “I only made token payments from 2012” etc.

Then say what you think should happen to your credit record, do you want it deleted, added, or changed to be earlier? For example:

  • “Please delete the default date because I was never three months in arrears according to the ICO rules.”
  • “You never contacted me to say the account was in arrears so it is unreasonable to have added a default. I had later accounts with you so you knew my contact details. I paid the debt as soon as I found out about it.”
  • “I would like you to add a default date in November 2012 in accordance with the ICO rules.”
  • “According to the ICO rules the default date of September 2015 is too late and I would like you to change it to May 2012.”
  • “[name of original lender] added a default in 2010, this has since dropped off my credit record. You should be using that same date, so please correct it.”

The credit reference agencies only report what they are told by the creditors, so complain to the creditor not Experian etc.

If you haven’t had your complaint to the lender sorted within 8 weeks, put in a complaint to the Financial Ombudsman.

Stop and think – will doing this “reset the clock”?

If you haven’t made any payments to a debt for years and you are hoping it will get to the 6 years point so the debt is statute barred, it is probably best not to contact the lender at all.  If you ask them to change the date then this will acknowledge the debt and “reset the clock”. See Questions about Statute barred debt for more information.

But also read No calls all letters about a debt for years? Is very common for you to be contacted about an old debt just a few months before it reaches the 6 year statute barred point. So unless this is very close, it’s probably not worth hoping this will happen and it’s better to get the default date sorted.

If the debt is already statute barred (are you absolutely sure? read the above article) then you can safely ask for the default date to be changed as once a debt is statute barred it will always remain barred.

And sometimes a default is good news!

Defaults sound bad, right? So getting one removed must be good? This is probably the most confusing thing of all, but No!

It can often be better to have a default on your credit record.  If there is a default against a debt, then the whole debt will “drop off” your file after six years, even if you haven’t repaid the debt. With no default, the record will not go away until six years after it is marked as settled/satisfied in some way.

So don’t rush into trying to get a default removed… and never try to get a default date changed to a later one because it will wreck your credit record for longer!

Remember: your credit record isn’t the only thing that matters

You may wonder why you should pay a debt at all if it will go from your credit record after 6 years if you don’t pay it. There are two good reasons:

  • it stops the creditor going to court for a CCJ, which would harm your credit record for another 6 years
  • seeing that problem debt is settled makes other lenders more likely to give you credit.

Even though it’s good for your credit score when defaults disappear, the debts still legally exist. See Do I have to pay a debt that isn’t on my credit record? for more details.

Don’t get confused with “Default Notices”

This article has looked at when a creditor marks your debt as “in default” with one of the credit reference agencies. The word “default” is also used in the term “Default Notice”. A lender has to send you a Default Notice before taking you to court over an unpaid debt. This has nothing to do with informing a credit reference agency that your debt is in default – your credit file may be marked as in default even if the creditor has no intention of taking court action.

If you have read things like the lender has to send you a Default Notice 14 days before starting court action and if you pay the debt in full within this time the lender can’t go to court these aren’t referring to credit records at all.  Anywhere you read the phrase Default Notice you are probably looking at information about CCJs, not credit records.

More Debt Camel articles:

How much will my credit score change if…

Is your debt statute barred?

Is your debt statute barred?

When can you get a default deleted?

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Comments

  1. Hi,

    I’m in a DMP and 6 of the 8 Debts all recorded a default straight away in April 2014. The other two were with Barclaycard and just recorded on my credit record AP each month from March 2014 to August 2015. They then sold the two debts to PRA Group who immediately add a default on August 2015. Is there any way I can get the dates rectified as this will extend my 6 years by nearly 18 months?

    Many thanks

    Dan

    Reply

  2. Hi Sara,

    I have a default from an old creation account that is now managed by Lowell. The default from Creation was in Aug 2013 but the last payment was May 2011. The debt is now stat barred but I think the default has been registered 2 years late? I have tried speaking to Lowell but they say they won’t change it? Is it worth going to the FOS about it?

    Reply

  3. I’m having issues with Capital One.

    I have filled in an income and expenditure forms and have provided proof of income.

    They continually mark my credit file every month as “late repayment”.

    They are refusing to default and sell the debt on.

    What can I do about this as they are aware that I am unable to make any payments, and in fact, I havent made any payments for over a year.

    Reply

    • Have you sent them a formal complaint? If not, do this as the article above says. Ask for a default to be added 3 months after you first missed a payment. If they refuse, send the case to the Finanical Ombudsman – this is easy to do!

      You can’t ask for them to sell the debt, that is their commercial decision.

      Have they frozen interest on the debt and stopped adding charges?

      Reply

  4. Hi Sara,
    I have 3 Defaults and 1 CCJ all from 2011-12 when I was on maternity leave. I have been on a low income since and made small monthly payments by arrangement to these defaulted accounts but paid the CCJ in full. They are all due to drop off this year, but I have not paid the balances in full. When I go to remortgage in 2021, will the broker/lenders be able to see if these have not been paid in full if the first default was recorded over 6 years ago?

    Reply

    • Yes, not from your credit record but because they will ask for your bank statements which will show the monthly payments.

      Reply

  5. I recently applied to move home as my current one is unsuitable for my disability. I started a DMP in 2010 and have never missed a payment. I was refused the move due to an entry on my credit file. I signed up to Checkmyfile and found that two of my debtors, one a loan from a company I do not recognise and one from a credit card company that is still reporting after the last 8 years. I have requested information from the loan company but this was more than two months ago. I also requested information from the other but they have refused to supply this based on the fact that they do not have an up to date address, but the debt appears to be administered by a debt company, on their behalf who have supplied me with information to my current address. I had surgery for a brain abscess in 2013 which causes me mental health issue. I am desperate to move as my current situation is causing me dreadful issues and destroying my health. What can I do?

    Reply

    • First, sign off from Checkmyfile! There is no need to pay for any credit reports and that one isn’t complete because it lacks the actual debt details from Experian :( See https://debtcamel.co.uk/best-way-to-check-credit-score/.

      I suggest you put in a formal written complaint to the loan company saying you have no knowledge of the alleged debt, you have informed them of this 2 months ago and you want it deleted from your credit record immediately or you will take your complaint to the Financial Ombudsman after 8 weeks. Add some details about your health issues and say you would like this handled speedily as this problem is making your health worse.

      The credit card – you knew about this debt? Are you saying the problem is that you defaulted more than 6 years ago? In that case you need to ask the card company to add a default back 8 years ago – again give details of your health problems as some card companies can be very difficult about doing this.

      Reply

      • Thank you very much for the advice. Pretty sure the card was defaulted in 2010 so I will take your advice. The original debt, was from 1991, if it was the one I think it could be but the Company they named, I never, ever had a loan with. Callcredit are the only agency reporting these debts, when I tried to sign up for the free service, I got rejected although the info I put was as on their files. Same with Experian. Both of these companies appear negligent with the handling of the information, given the terrible effect it can have on someone’s life. I am on to it. Thanks again. I know it won’t be easy but it gives me hope.

        Reply

        • “Both of these companies appear negligent with the handling of the information” I know it’s frustrating, but the credit reference agencies only report what they are told. You need to complain to the lender and take the case to the Ombudsman if the lender won’t correct the entry.

          Reply

        • If you aren’t sure what happened, also (in addition to, and separately from, your complaint) send any creditors or debt collectors involved a Subject Access request asking for a copy of all your personal information. See https://ico.org.uk/your-data-matters/your-right-of-access/. You can usually find where to send this from a Privacy Policy link on a lender’s home page.

          Reply

          • I have now complained to ICO as Vanquis are refusing to send the information to my address as it differs from their records. This is despite the fact that I sent them a letter from the Debt Company who are managing the account, confirming my address. I have emailed them today, advising of my complaint to the ICO and also that I am suspeding payments from my DMP.

  6. Hi, back in 2011/12 I got into a cycle of payday loans, taking one out to pay the previous one off. It all got too much and I eventually took the approach of burying my head in the sand, stopped paying and ignored them.

    I have been taking steps to rebuild my credit file over the last year and checking all 3 CRAs regularly. All the defaults have now passed the 6 year mark and are no longer showing on my report with the exception of two accounts I had with Lending Stream. Both of these accounts I stopped paying around the same time as the others and the reporting dropped off from Equifax and Callcredit in April/May 2018.

    However, Experian holds the default date of 17/11/2012 for both of these accounts meaning the default won’t be removed until November this year. Experian shows LendingStream reported the payment issues as 1,23,4,5 then reported 6 for 6 further months before marking as a default with an 8.

    From reading this article they haven’t followed the ICO guideline of reporting a default within 3-6 months and have also used different default dates with other CRAs.

    As the balance is still outstanding I’m not sure if I should attempt to contact them to request they update the date which would mean it wouldn’t appear on Experian anymore or if I should wait until November as I’m worried contacting them may result in resetting the clock.

    Thanks in advance

    Reply

    • If a debt is statute barred, the clock cannot be reset. See https://debtcamel.co.uk/statute-barred-debt/. But you may decide you don’t really want to get into an argument with a debt collector about this… it is only a few months until November, is this worth it?

      Having your Call Credit and Equifax reports from a few months ago showing the earlier default dates sounds like excellent evidence to get the creditor to change the date on the Experian record if you do want to do this.

      If you get a letter from the creditor threatening legal action, talk to National Debtline immediately about how to reply – don’t ignore this or you will have a court case to fight.

      Reply

  7. Hi, just wondering if you could please help shed some light on a default that should have dropped off my credit file today 17/07/18 as it’s been on my file for 6 years.
    Can defaults be moved over to closed accounts where they stay on file for 7 years ?? This seems to be what has happened. I’ve also filed a dispute asking for it to be removed as the 6 year period is over.

    Reply

    • “Can defaults be moved over to closed accounts where they stay on file for 7 years ??” No.
      What report are you looking at?

      Reply

      • Hi, lot’s of them, I signed up with credit wise through my capital one credit card the info on there says 2 of my default have been moved over to closed accounts. I’ve also signed up to clear score (which I believe to be info from equifax) they too have moved my 3 of my defaults to closed accounts 1 should have dropped off on the 17/07/18 the other default dates are October this year and January next year. I have signed up to credit club (which is suppose to be info that experian hold ) but I can’t see the data for closed accounts on there it jyst says I have 18 closed accounts. I’m also with noddle (which is callcredit). They have moved over 1 of my defaults. I’m confused and also worried that these defaults could be there for 7 years not 6.

        Reply

        • oh deep joy, another damned credit record report to add to my list here https://debtcamel.co.uk/best-way-to-check-credit-score/ – that brings it up to 13 in all.

          I can see no reason whatsoever to use Credit Wise. I suggest you cancel it. It won’t give you anything more than Clear Score will as they both report on Equifax date.

          Clear Score (and Credit Wise and MSE Credit Club) are all snapshot reports, one every 30 days, not done in R/T when you ask for one. I suggest you wait a month and then check again when you may find the default that yesterday passed the 6 year point has dropped off. If not, come back and I will have a look!

          Reply

          • Thankyou for your help. I will cancel the credit wise. It’s confusing enough with the other 3 reports.
            Think I will also request a statutory report from experian as I can’t see my closed accounts on credit
            I’ve been desperately trying to repair my credit file for years and it’s proving to be very stressful just as I think I’m getting somewhere boom another entry has been added that wasn’t there the last time I got a report, so frustrating and annoying that the lenders didn’t inform the CRAs soon as I had credit with them.

  8. Hi Sara, i had a Mortgage shortfall from a house re-possession from 2007. I made a full and final settlement in Jan of this year. This has been recorded as partially settled and closed with all 3 CRA’s.

    I have made NO acknowledgement of the debt or made any payment to the account since 2006. The nat-west have never marked the account as default, but always as a number 6 in the payment history. Does this mean it is defaulted or does it mean they are late payments?

    The reason i ask is because if the account is only marked as late payments, i am going to have to wait another 5 years until the debt is cleared off my credit file. If in fact it has defaulted, i will only need to wait until next May when the closed account will disappear from my reports. Any help with this will be greatly appreciated

    Reply

  9. Hi Sara, my 5 defaults are due to drop off in December this year, they are all satisfied/unenforceable and I have confirmation of such from the creditors. My question is – I have a CCJ from Apr 16 ( there is no default associated with this debt) that was satisfied in Jul 17 and is recorded as such on all the CRA’s. My partner and I are looking at going for a mortgage in the next year do you think the satisfied CCJ would affect this? I should say that all my other credit commitments are up to date and all green, I am carrying a small percentage balance on my 2 CC approx £100 on each. Thanks Jon

    Reply

    • I think the satisfied CCJ may make it difficult for you to get a mortgage at a reasonable rate. Talk to a good broker in mid next year when the CCJ will have been satisfied for a year

      Reply

  10. Hi
    I have an outstanding debt from an old Barclaycard which was sold to Link financial in 2015. I had been making reduced and then token payments to Barclaycard for at least 18 months before they sold the debt. The default date on my credit reports is listed as 3 months after Link took over this account. Link have refused to change the default date. Is it worthwhile writing to Barclaycard. Would they be able to add an earlier default date to this account even though they are no longer dealing with it.

    Thanks

    Reply

  11. Hi,

    I have debts of 62k across multiple banks and cards and I have been in a DMP for £118 PM Since March 18, the payment plan if unchanged is over 42 years, I am 54 so that’s not likely to happen.

    I have sold the house and released 120k in equity which can pay off the debt in full so I am lucky there. However now I am staying with a friend, have serious trouble renting (landlords will not accept me even using 6 months rent up front), the legal cover is void due to my credit rating so I am being rejected from nearly every property), getting a mortgage with an active DMP only 4 months old is almost impossible due to the 7 defaults. So I am a bit stuck, I have a job but potentially I may not be able to work here if I cannot find a place. The council said I have sold so I am deliberately homeless.

    I have contacted most of the banks now I been offered between 5% or 50% discount off the outstanding balance, so its looking like I could settle saving 17k out of the 62k.

    However the default will be on the credit file for 5 1/2 years by the look of it.

    There is nowhere to buy for the change even if 17k discount was offered, mortgage with a DMP so young is difficult to.
    So I am stuck with save 17k or settle in full, nobody seems to say which is best for me getting a new mortgage in a couple of years time.

    Full or settlement?

    David

    Reply

    • Well first you will be able to find somewhere to rent. Offer 12 months rent up front! Someone will accept.

      This article looks at the problem about getting a mortgage after a partial settlement https://debtcamel.co.uk/dmp-partial-settlement/. There isn’t an easy answer, but at your age you want as low a mortgage as possible so having 17k more for a deposit is probably important.

      Reply

  12. I have 2 accounts that have been marked as 6 months late payment since February of last year, and continue to be reported as 6 months late even though I haven’t made a payment for nearly 18 months.

    Today I sent an email complaint to the companies involved asking them to default the accounts in line with ICO guidelines.

    My question is, would 2 defaults dated 18 months ago look better on my credit record than 2 active accounts that have been in 6 months arrears for the last 18 months?

    Also can you advise if doing so would have a positive or negative impact on the credit score that the CRAs provide as part of their paid service? Apologies but I can’t see any comments on this In your previous article on the matter

    Reply

    • “would 2 defaults dated 18 months ago look better on my credit record than 2 active accounts that have been in 6 months arrears for the last 18 months?” No. they will look worse now and until they drop off the system, 6 years after the default date. But they will drop off sooner…

      But you have a bigger problem here than trying to improve your credit score. If you don’t make some arrangement to repay these debts, at some point you are likely to be taken to court for a CCJ, which will then wreck your credit record for another 6 years.

      Reply

  13. I have been on a DMP for over 4 years and have been making payments below my contractual agreements since on the plan. The creditor in question is fully aware and accepted the reduced payments. Only now are they putting the account into default, should they have done this sooner as per the ICO guidelines.

    Reply

    • It depends how much below the normal payments. If it’s only a bit below, it can take a long while to get to the “3-6months in arrears” point. But if it’s very low payments, that should have been after 4-7 months!

      Reply

  14. I currently have a default which was added to my account in December 2017 after Barclaycard sold my debt to Moorcroft and then to Robinson Way (Hoist Portfolio Holding 2 LTD) even though the last payment was November 2016. The thing is I want to try my luck at getting the default completely removed by settling. Like most, I made stupid mistakes at a young age but feel I have a good argument. The thing is I don’t know who to write to and if getting it removed fails I still want the date changed to be 3-6 months after Nov 16. Do I write to Barclaycard or Robinson Way?

    Reply

    • Are you saying that the debt was repaid in full in November 2016?

      What is your argument for getting it removed?

      Reply

      • No, the last payment that I made towards the balance was Nov 16.
        I feel that Barclaycard did not carry out proper checks, I had maxed out an Aqua card (£900) and wanted to balance transfer. Barclaycard gave me a credit limit of £4500. I definitely did not have a good credit rating so unsure how I received this. I was young and believe they took advantage of me by giving a credit card with that high amount of credit. Then they did not add the default when they were supposed to. Maybe I’m naive but I just want to try. I know it’s my fault, I spent the money so of course I’m paying it back, but if I can settle and get it removed it would make the future so much easier.

        Reply

          • Thanks Sara – just one last question for now, do I write to Barclaycard or Robinson Way who now own the debt (and issued the default)?

          • Your affordability complaint goes to Barclaycard as they were the ones that made the irresponsible lending.

  15. PART 1 – EMAIL TO THREE MOBILE
    Good morning,
    As discussed in my previous conversation with the Three Mobile team. (complaint reference number 2xxxx7)
    My account 9xxx0 was defaulted on the 18th of January due to Three mobile trying to take out money from my direct debit account ending in 8xx6 twice.
    At the very same time Three were debiting my account ending 8xx6 for a dongle account registered as 9xxx0 that was cancelled years prior.
    This over charge totalled to 1009 GBP.
    Three learnt of their mistake and paid me back 1009 GBP in May 2018.
    However they have still kept my 9xxx0 account in default on Experian.co.uk, even after their error of over charging me and draining my funds from my account ending 8xx6 of 1009GBP.

    Reply

    • PART 2 – EMAIL TO THREE MOBILE
      To add to this I never received any default notices correspondence from Three informing me of any default or that were going to escalate this and send it to a 3rd party debt collector. According to the consumer credit act 1974 section 86E. This is against the law.
      I was only aware that my account was in default when I logged into my Experian account recently to view my credit score as we are applying for a mortgage.
      Three mobile have listed a defaulted account dated – 18th Jan 2017 – balance outstanding of 199GBP.
      Since seeing this default for the first time , I contacted Three mobile straight away and paid this 199GBP in full on the 12th August 2018.
      Since then, I have been in constant communication with Three asking them to remove this error from my Experian Credit profile. To which they have agreed it is an error and not my fault and that it will be updated on their system and requested to be removed from Experian.
      Today (16/08/2018) I log into my Experian account. (as Three mobile promised me it will be sorted by today) to find ; I have been penalised a further 11 points on my credit score by Three mobile!! Why 11 points again???

      Reply

      • “ According to the consumer credit act 1974 section 86E. This is against the law.” Actually it isn’t, those legal provisions refer to a creditor sending you a “Default Notice” before taking court action against you, it’s confusing but they have NOTHING to do with registering a default on your credit record.

        Obviously Three are at fault here, but I am just pointing this out so that you can concentrate on the real problem which is that Three admitted they were wrong when they refunded you the money so there should have been no defaults or late payments on your credit record for their mistake.

        “I have been penalised a further 11 points on my credit score by Three mobile!! Why 11 points again???” Three have no control over how Experian calculate your credit score, this is some minor issue, don’t get side tracked by it. Keep your focus on getting the default and any late payment markers deleted.

        Reply

    • PART 3 – EMAIL TO THREE MOBILE
      To add to this mess – Three have also changed the defaulted account date as 12th of August 2018!!!! Non of which they said they were doing?! I have been on the phone and web chat to Three customer service for close to a week now and they did not say they were going to do this. They told me that they were going to remove the error of defaulted account completely. (I have all this conversation recorded – screenshots of the chat forum can be provided)
      I have spoke to Experian over the phone today (16/08/2018) and they can see that this an error on the part of Three mobile. Therefore have sent a complaint form (reference # #0xxx0) to Three stating this error.
      Three have not replied or made any effort to contact me.
      I have been chasing them every minute of the day however they keep telling me to wait another 24-48 hours even though they told me that the issue will be removed by today 16/08/2018.
      I am in the process of applying for a Mortgage, these errors caused by Three are stopping any lenders consider me.

      Reply

      • It is a shame you didn’t check your credit record months ago, errors can take time to sort out.

        Yiu could try emailing Three’s david.dyson@three.co.uk and say that their errors and incompetence mean you may lose your mortgage application. Give a brief history – basically their original errors, the date they corrected them (attach any correspondence where they agreed they were wrong) and their recent failures to correct this urgently, despite telling you they would.

        Reply

  16. Hi I need some advice on a problem I am having with British gas I left a property and gave meter readings in July 2009 my tenancy went onto August 2009 then my lettings company gave meter readings in September 2009 I was then billed for the 2 months I was not there for 69 pounds I informed them of the mistake at the time and didn’t think any more of it then exactly 7 years later a default has appeared on my account I have spoken to them and they refuse to remove or adjust the date.

    Reply

  17. This is an update on the case where I had a loan for which I had no recollection and an incorrect default date for a credit card that I had in 2007 up until it was transferred to my CCCS/Stepchange plan. The company who took on the debt say they are unable to produce a copy of the agreement as it was too long ago. They advise that it is not enforceable but invite me to continue to make payments. They have offered £50 compensation for inconvenience suffered. Given that I have issued 3 letters and made a long phone call, plus all the stress, it does not scatch the service.

    Reply

    • You had two problems debts, one you didn’t recognise at all and one which was in your StepChange DMP without a default date – is that correct? Which one of these is it?

      Reply

    • This one is the loan I did not recognise. I called in May requesting information. I followed up with a letter in May then again in July. The disputed entry has disappeared but they have not got a copy of the agreement as it has been destroyed. They are saying it still stands as I have paid it for years through the DMP but is not enforcable. They advise I should contact action fraud if I believe it was not my debt. I did not have a loan with Paragon ever, I know this. Unless I took a loan and the company got taken over, but due to memory issues following brain surgery, I just do not know. I don’t have any documentation either.

      Reply

      • OK so it’s off your credit records and you have told the DMP to stop paying it presumably? What were you hoping for, a refund of the money you have paid? That would seem to be unlikely if you have only just told them the debt isn’t yours.

        Reply

      • I have never acknowledged the debt, I cannot recall the loan but it has been on my debt plan since 2010. I just want to see it ended. I took payments off the plan in May. I just feel that £50 for the times my daughter has had to come over and I have had to collect her, the stress and misery of being ignored, being turned down for a house move and not being able to apply again. I was sure the loan was recorded before, they checked with callcredit and said it did not show. I am wondering if I can ask for more.

        Reply

  18. Good morning,
    After raising a complaint to 118 over an additional default date (My clearscore report stated that one had been added in 2018 following a transfer of the debt, the original default was in 2014) I have received the below;

    Based on the information available to me at the time of investigating your concern, I am partially upholding your complaint. I am satisfied we had the right to transfer ownership of your debt, however; we feel that you were working with your Debt Management Company and making consistent payments so it would be unfair to apply a default to your credit file.

    Happy days!

    Thankyou for this website!

    Reply

    • Do you mean they are deleting the debt? That is probably NOT what you should want. If that happens the debt with its missed payment markers will be on your credit record until 6 years after it is cleared. Instead you want them to change the date of the default to 2014, then the debt will disappear from your credit record in 2020.

      Have you looked at whether you have an affordability complaint about this debt? See https://debtcamel.co.uk/refunds-large-high-cost-loans/ – if you could win an affordability complaint all negative information has to be removed from your credit record.

      Reply

      • Hi Sara,
        No they are not deleting the debt, just the default date which was added in 2018, I already have one from 2014 which is fine.
        Regards affordability, unfortunatley i was bamboozled by there standard response and missed the 6m cut off to send to the FOS after reading things on this site which made me think otherwise.

        You are doing some great work on here, I just need the FOS to rule they can look into PDLs I have with QQ, PDEX and WDA and I’m on to a winner 😂

        Reply

        • it isn’t possible for a debt at a CRA to have two default dates. You need to check what they do and make sure they haven’t deleted the default date completely, that there is a default date of 2014 on your record. And check with all three CRAs.

          Reply

          • Ahhh, daft question but isn’t no default better than one in 2014?
            Or is it a case that the transferred debt would then be defaulted?

  19. Hi Sara,

    I have a credit card debt that is due to go statute barred at the end of November, as my last payment was Nov ‘12.

    I’ve just checked and the default date is August ‘13. Obviously this is quite a few months from my last payment and I wondered if you think it would be reasonable to ask them to change it. Even if they made it March ‘13 would seem fairer.

    The debt has been sold to Lowell some time ago so I won’t ask them to do anything until it is definitely SB’d.

    Thanks.

    Reply

    • The ICO rules say when a debt is 3-6 months in arrears. So that could be May. Not sure this is worth borthering with, is it? And if your last payment wasn’t in November, it can’t be statute barred in November… has to be the following month as the creditor has to have realised you have missed a payment.

      Reply

      • Oh sorry, yes it would be December.

        Hmm, yeah I guess so. Just wanted to try and fast track the default dropping off and my credit record improving. At the moment it will only fall off towards end of next year, whereas all my other defaults are in March.

        Reply

  20. Hi Sara,

    Wonder if you could help. I had a secured loan on a property that was repossed back in 2007 the loan was sold to idem and has ever since been recording 6 months late payments. Dating back 11 years. Nothing has been paid for over 6 years. What are our options? I feel like idem are going to record late payments forever.

    Reply

        • A default date should be added to the record when the house repossessed. Tat would mean that the debt disappeared from your credit record. You could write to The original creditor and ask them to correct this, Idem would then have to use the same default date.

          BUT I suggest you talk to National Debtline on 0808 808 4000 before trying to get a default date added. It may well be that this debt is not yet statute barred. If it isn’t, and you write this letter, it will be resetting the clock on the debt becoming statute barred.

          Reply

  21. Thanks for your reply Sara the original creditor was picture finance which I Don’t think these exist now. What do we do in this case? Would it become statute barred from house repossession date or from 6 years ago when we made the last payment.

    Reply

  22. Hi Sara,

    I have recently returned to the UK and am in the process of sorting out my credit file. I have 3 defaults detailed on my Noddle credit report but only one of those is on my Experian report. I have set up a payment plan for that account however I am considering offering a partial settlement as Halifax have said that is an option. This account is from 2013 as are the other two. Would you recommend clearing the accounts in full are partial settlements ? I am hoping to apply for a mortgage within 12-18 months but after reading up I discovered that they will stay on my file whether I make full or part payments so am not sure if it is worth paying them in full.

    Also, the default dates are set much later than when I last made payments on the accounts. The last payment I made to my credit card was July 2013 however the default date is recorded as February 2014. The last payment on my current account is October 2013 however the default date is December 2013 and on the last account I made the last payment in November 2013 however again the default date is recorded as July 2015. Can I get these default dates adjusted to the last payment dates as this will mean they fall off my report sooner ?

    Great thread BTW, really helpful and simple advice without all the jargon.

    Regards

    Kristian

    Reply

    • Check your Equifax report too – all problems have to be sorted.

      If you want a mortgage in 12-18 months, you need all defaulted debts settled now. This article https://debtcamel.co.uk/dmp-partial-settlement/ looks at the issue about whether it’s worth making full settlements or reducing the cost and having more of a deposit by making partial settlements.

      The credit card default is 6 months after the first missed payment – this is within the 3-6 month guidelines so it probably won’t be changed. The current account default is very quick! Only the last account looks worth asking to get it moved earlier, but if this is a current account it may be difficult as the bank may have no idea the account had been abandoned, people can just stop using an account for a while and would get cross if they found it was defaulted.

      Reply

      • Thanks for the swift response.

        I have attempted to sign up with Equifax but have been unsuccessful as I’ve lived a abroad for a numbers of years before returning to the UK a couple of years back so they are unable to verify me. I also called them to see if I can confirm who I am but again they were unable too so I can’t set up an account with them unfortunatley.

        The last account was a store card, I will ask to have this default date updated as per your comment above.

        Having read the partial settlement article you linked above I am still unsure if it is worth clearing them in full, ill do some more reading around.

        Thank you again for the advice, really helpful.

        Kind Regards

        Kristian

        Reply

  23. I had an account with MyJar from 2012. I’m sure there was a default against the account for 2012. I have checked my recent credit report and the default has been removed. Is this so the company will know the account will stay on my my credit file? also, can I request them to re add the default as 2012, so that my debt will be removed because the 6 years has passed?

    Reply

    • Sorry For the late reply. It’s unlikely that Myjar actually removed a default, but the question is should you ask for a default to be added? What date was the loan? Was it rolled? When did you last make a payment to it?

      Reply

  24. Hi,

    I contacted a company who added a default to my credit file. They stated that they have no record of me on their system. My first and last name are spelt wrong on the default on my credit file. I gave them all my details and also the details as recorded on the default (inc the error’s) but again they stated they have no record of my.

    I contacted Equifax to have this removed but they said they will only remove it if the company who added the default authorise it. The company however have simply stated that they have no record of me so Experian have said that they will not remove it.

    What are my options ?

    Reply

    • I suggest you put in a written complaint to the lender. Ask for them to remove the default as you deny the debt is yours and they have no evidence to suggest that it is. Say you will be taking the case to the Financial Ombudsman if they do not agree.

      Reply

  25. Hi Sarah

    Would statute barred be from repossession date nearly 12 years ago or when you made a last payment 6 years ago? Thanks

    Reply

    • Sorry for late reply.

      I suggest you talk to National Debtline on 0808 808 4000 about the details of your case, including who the lender is and the amount owed.

      Reply

  26. I have a default from a personal Natwest Loan, the default date is March 2013, so all going well this will drop off my credit record in March 2019?

    However, I am still making smaller repayments of £80 a month to the debt collection agency and will continue to do so after March 2019 – does this means that this will still show after March 2019 because I will be making monthly payments?

    Reply

    • It will drop off in March 2019, come hell, high water or Brexit. Nothing will stop this, whether you have finished paying it, are still paying or stop with a balance still owing (which would of course be foolish as it would be risking a CCJ).

      Reply

  27. 1. I requested DSAR from them in relation to all letters sent from the Lowell group.
    2. went through all letters (took a while) looking for errors, which I found. The letters sent out was template letters which they failed to provide the amount owed and “how much to pay” to clear the balance “£0.
    3. I raised a dispute on credit file about the defaults
    4. Raised a formal complaint to the Lowell group
    I explained that I never received the communication in writing and based on letters, I appreciated they were printed, however due to the incorrect information on the letters, I feel they were never sent out to me. Furthermore, any letters that was received was destroyed and not acted on as I thought it was someone /company trying to obtain information due to (fraud, phishing, identity fraud) and due to myself being careful, due to data protection, I feel that the the company failed to contact me in a professional manner etc resulting in being disadvantaged.
    They claimed they don’t need to inform of me of a default being applied, legally I don’t know. …cont

    Reply

    • While I was going through the information that was sent to me, I did find a data breach, which supported my concerns raised above.
      I do appreciate this wont work for everyone but it may help in some way.
      I never disputed the amount owned at any point, however after raising the points above, Lowell group wrote to me today to confirm that the two accounts would be closed and the “balance for each would be written off and the defaults removed.
      I still have one default with them, it was for a credit card, which I requested to provide the original credit agreement, as I couldn’t honestly not having. Lowell wrote to me a while back to say that they would not chase me for the money but the default would still apply.
      While I have the upper hand, legally, can they still record the default against me based on the none-providing credit agreement?
      I hope this is some assistance to you lovely debt fighters and keep up the good fight.
      the battle is not over!

      Reply

      • “They claimed they don’t need to inform of me of a default being applied,”
        That is legally correct, even though it is good practice that they should tell you.

        “can they still record the default against me based on the none-providing credit agreement?” yes if they just can’t find the agreement – because it may turn up at some point.

        Reply

  28. Ok, I did request for this to be sent to me, and they couldn’t as they were unable to obtain this. They did confirm that they would close the account and balance and wouldn’t chase me for this, but the default still stood? I don’t think they were able to obtain it otherwise, they would have continued to peruse me for the money?

    Reply

    • If the debt is “irredeemably unenforceable” then the legal precedents say the default should be removed. But failure to produce a CCA agreement is normally regarded as temporary unenforceability because the agreement may be found.

      Reply

  29. Hi,

    I’m on a dmp with StepChange since 2014 and of the 8 accounts 7 have added a default within the 6 months period, apart from Creation. They have sold this to Lowells and I have written to them to ask for a backdated default to be added. they have refused and said they will update the credit reference agencies with details of any payments made. I’m worried that as all the others will drop off in early 2020 this will continue to be an ongoing nightmare.

    I’m not sure what to next :/

    Reply

    • you need to wait for a reply as it’s Creation that should correct this. What happened when you asked for defaults to be added to the Barclaycard accounts?

      Reply

        • Hello – I am in a similar position and wonder if you had any advice.

          I had a littlewoods account which was in arrears and sold on to NCO resolve and then onto another company called Intrum (formerly 1st Credit).

          I entered into a DMP in early 2013 whilst my Littlewoods account was open. It has been sold on several times to various Debt Collection Agencies in the meantime, should this not have been defaulted when it was sold on?

          I understand that I entered into a AP by joining the DMP, and it has been fully paid off in 2016 as part of the AP. This will stay on my credit file as an AP until 2022 whereas had it been defaulted either in 2013 when it went into arrears or in early 2014 (when it was first sold on) I’d not have long for t to drop off as a default.

          There is no entry on my credit report for Littlewoods but Intrum (who acquired it in 2015) have been reporting it as an aP from 2015-16 when it was paid off. In 2016 I entered into talks with Intrum who said they are correct and it must stand.

          Would I be better off contacting Littlewoods direct?

          Thanks,
          H

          Reply

          • You can ask Littlewoods to agree to add a default for the debt. The argument is that the AR is not treating you fairly and it wasn’t explained to you that a default would be better for your credit rating. It can be hard to win these cases but it’s worth a try.

  30. Hi, I had a credit card with Vanqis opened on Dec 2007 however it went into default in 16/06/2011 since then I have paid off the debt and it shows settled, recently when I checked my credit file on experien credit I saw they have changed the default date from 16/06/2011 to may/2013 which is not right, originally I stopped paying them in 2009 and I am sure of the date 06/2011 being the right one,
    I have a detailed copy of my credit report from experien dated 04/2017 and it shows the right default date on that one but they have changed it since, can that be used as a proof?
    I want to apply for mortgage and that’s the only bad thing on my file, is there anyway to get this fixed?
    Many thanks in advance for any help or advice

    Reply

    • Between 2009 when you stopped making the normal monthly payments and 06/11 were you making no payments or erratic payments or very low payments such as £1 or £5 or an agreed payment which was less than the correct one?

      Also when was the balance cleared?

      Reply

      • Thanks for the reply
        I did start paying them £1 starting in 2009 which went in till 2011 when I got a letter saying my account is in default, now that you asked I have a feeling that the new default date is the date up to when I was keep paying £1 a month. I don’t see why that would be the default date if they already defaulted the account the earlier date,
        Also I paid off the balance in 29/04/2016
        I am not sure if a debt collection agency took over in 2013 ( new default date) but in that case my default in my credit file shouldn’t have been in their name? It says Vanqis in my credit file. The default date was fine and correct up to April 2017 and I have proof of that, it’s been change since Vanqis sent their last report to credit agency on nov 2016 about 6 months after I paid off the debt
        Kind regards
        Many thanks

        Reply

        • there is a general template letter in the article above ^^^ but in your case i think you need to make the complaint to Vanquis much more specific as yous is an unusual situation, along the lines of :

          – I was only paying 31 a month from mm/yy
          – you sent me a letter in 20111 saying my account was in default and added a default date dd/mm/yy to my credit record. I enclose a copy of an old Experian report saying this
          – you have recently changed the default date to be dd/mm/yy, I enclose a current credit report showing this.
          – this is not treating me fairly.
          – also my account was already more than 6 months in arrears by the time of the original default date so the original date was not too early.
          – I want you to correct this as soon as possible as I will be applying for a mortgage shortly.

          Send this as a formal Complaint to Vanquis and send it straight to the Financial Ombudsman if they either reject it or don’t reply within 8 weeks.

          Also check your Noddle and ClearScore credit reports to see what they say are showing as they are for different Credit reference Agencies.

          (By the way, if the debt collector was working for Vanquis it would still show under vanquis’s name. It only shows as a seperate debt if thr debt was sold.)

          Reply

          • Good morning and many thanks for the replay
            Thank you I think that was the case as I don’t remember paying the debt back to Vanqis it must have been a debt collector and that may have messed things up, I did check the other credit agencies too and it shows the same date as Experian which is may/2013 ,
            I will try to send them the letters however if I ask you an advice as you know a lot more then me does it worth it fallowing up on this or shall I leave it as it will come off in 6 months , do you think it may take more then that if I fallow up, many many thanks
            Best regards

          • Sorry one last thing: would I be able to sort this out if I try to call Vanqis directly trough phone instead of write to them, or is there any department in their company who deals with this situation that I have to ask for,

  31. How do the regulations work for companies that are not regulated by the Financial Conduct Authority?
    I have a complaint at the moment with British Gas. I contend that the default date should be 6 months after they last received a payment on my account.

    I had a debt that was last paid in Feb 2016, they only defaulted the debt in June 2017. To add insult to injury they have registered 2 defaults, 1 for Gas and one for Electricity even though the final bill that they sent was one aggregated balance for the entirety of the “Duel Fuel” account I had with them.

    I asked them to correct the default date to 6 months after the arrears accrued. They said they are not legally obliged to do this and adopt the process of continuously reporting a an account 6 months late for over 10 months “in case you pay the debt collection agency at a later date.”

    How can it be right that a company that is not regulated by the FCA is allowed to report to the credit reference agencies in the first place.
    I have no recourse with the financial ombudsman’s service and I doubt the Energy Ombudsman will be interested in this kind of complaint.

    Reply

    • did you move or switch to a different supplier? if so, when? are you disputing whether the balance is correct?

      Reply

      • Hi Sara,

        Sorry for the late reply. When we moved in March 2016 the utilities went into my partner’s name as the money was coming out of his account.

        I am disputing the balance and sent them a copy of the tenancy agreement at the new property as proof I had left but they said that this is not adequate proof that I wasn’t still living at the old property as a second residence so they would not amend the amount.

        They have added 1 months worth of charges after I left the property and then only defaulted the account in March 2017 instead of August 2016 had they followed the ICO guidelines on defaulting an account. I appreciate that 6 to 8 months is not a long time but mortgage brokers are saying that only defaults within the last 2 years have a major impact on whether or not I can get a mortgage.

        Reply

        • Try to find some other evidence that you moved. Previous tenancy agreement? Correspondence with landlord?

          The default date should be 6 months after you missed a payment, not after your last payment. If you were paying quarterly that would have been what, May?

          You aren’t on strong ground here – you seem to have left without telling BG so you never got the final bill.

          Reply

  32. I have been advised by my loan company that a default has been registered to my account. I asked for my loan to be put on hold last year as I was awaiting on inheritance money do I could settle it. The process has been dragged out and due to a sibling the money still hasn’t been paid. So after 3 months of the account being on hold I paid the “arrears”. A year later I have been written to advising I have a default for this incident and it will be backdated! Is this correct? They said in the letter the default wasn’t added at the time due to an error. I’m worried this is going to hinder my future employment as I work in financial services. I put in a complaint with the lender and they have rejected it. What should I do now?

    Reply

    • Are you saying that you could have made the payments in the three months but you asked the lender and they said it was ok not to? Was this in writing or on the phone? Did the lender not mention that your credit record could be harmed?

      Reply

  33. Hi Sara
    I have been looking on noodle and have seen that my jar and provident added a default date 9 months and 11 months after the 6 month the ioc say is acceptable for loans . And Payday uk has just 6 showing I honestly forgot that I had not paid it as my family paid off some of my debt due to gambling problems . What advice would you give me .
    Thanks
    Matt

    Reply

      • Hi Sara
        That’s good news , about my jar . I will email them tomorrow. With provident is was satsuma but it has been sold on to zinc collection , I am not sure if that makes and difference .payday uk no payments made I can probably get the £120 in January to pay it off . Do you think they will remove it as it been on for three years now .

        Reply

  34. Can I ask where this information came from:

    What should the default date for a debt be?
    A default badly damages your credit score, so how long will it be there? In Britain, the credit record rules say:

    the debt, including the default, is deleted from your credit record six years later after the first default.

    An example: a debt with a default date in May 2014 will drop off your record in May 2020.

    There are no exceptions to this rule. A debt which is marked as defaulted will disappear after six years whether you have paid it or not, in all the following situations:

    you have repaid the debt in full,
    you have made a partial settlement,
    you are still making monthly payments to it,
    you haven’t made any payment to it for years.

    Do the monthly payments include DMP payments and where can I go to get legal advice as Nationwide are saying the default when on in October 2010 – they don’t have the exact date and say that because I was on a DMP that info has to stay on my credit report until 6 years after I paid of the account in Feb 2018
    Many Thanks

    Reply

    • The information is how the CRAs treat defaults. Here, for example, is how Experian describe it: https://www.experian.co.uk/consumer/guides/defaults.html but the same applies to Equifax and Callcredit as well.

      “Nationwide are saying the default when on in October 2010 – they don’t have the exact date and say that because I was on a DMP that info has to stay on my credit report until 6 years after I paid of the account in Feb 2018”
      Have Nationwide actually added a default to your credit record? It sounds as though they may not have.

      Reply

      • Hi, yes they said they added on in October 2010 (they couldn’t give me an exact date) but said that the missed payments have to stay on my record for 6 years following the account being settled because I was on a dmp. They said they had to do this by law.

        Reply

        • You need to check what your credit records actually show, see https://debtcamel.co.uk/best-way-to-check-credit-score/, not rely on what Nationwide are saying. If Nationwide say they added a default to your credit record in October 2010 and the debt is still showing with no default date, then they are talking nonsense. It is more likely they failed to add a default in Oct 2010 and you should ask them to add a default date back then – which will cause the debt to vanish from your record.

          Reply

          • Thanks Sara,

            I have looked at my credit report but it only goes back 6 years so I can’t see if Nationwide did actually apply a default to my account in 2010. I have wrote to their complaints department and will have to escalate if they don’t do it. Thanks for your help

          • No, I am asking if the debt is showing at all… if it isn’t then they did apply a default, it has dropped off and will never reappear.
            – if it is showing then they never added a default back in 2010 and you should ask them to add one now.

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