A default badly damages your credit score, so how long will it stay 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.
A debt which is marked as defaulted will be deleted after six years 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; or
- you haven’t made any payment to it for years.
There are no exceptions to this rule. A debt with a default date in May 2015 will drop off your credit record in May 2021.
So the default date is very important!
The longer ago the default date the 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 2017 to April 2015, the debt will disappear more than two years earlier.
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.
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 – and defaults will be later
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
When a debt is sold to a debt collector, the new creditor should use the same default date as the original creditor did.
If the original lender didn’t add a default, you can ask them to add one, then the debt collector will have to use that.
In the unusual case that the lender didn’t report to a credit reference agency at all, the debt collector should apply the same ICO rule that the original lender 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 will stay on your credit record for 6 years, so the original debt will have dropped off before the CCJ goes.
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:
- Repair your credit record after Bankruptcy;
- Repair your credit record after an IVA;
- Repair your credit record after a DRO.
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
Once a debt has been marked as defaulted, your credit file will normally show a default marker every month afterwards until the debt is settled. That looks bad! But in the credit score calculations it is only counted as one default.
So when people talk about “the default date for a debt”, it is the first default date that matters. Not the ones afterwards. 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, sent it to the Financial Ombudsman.
But 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 as the conditions for some debts becoming statute-barred have changed in January 2019.
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.
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.
How much will my credit score change if…
FAQs on statute barred debt
When can you get a default deleted?
Jim says
Hi, My wife and I are in a DPP (DAS) in Scotland, which we have made payments to for around 2 years, with a number of years still to go. My question is when would be reasonable to expect the creditors who approved the DPP to have applied defaults on our credit files from? Some have applied them almost immediately from the date the DPP commenced, others a couple of months later, however some are almost a year after the DPP started and worryingly some are still reporting missed payments. Any guidance would be appreciated.
Sara (Debt Camel) says
I will ask a Scottish adviser to reply to this.
Jim says
Hi Sara,
Do you know when a Scottish adviser might be able to provide some guidance for me on this one?
Thanks
Sara (Debt Camel) says
Ah he has been on holiday. I will give him a nudge.
Angela says
Hi Sara. Im a Money Adviser in Scotland. I recently had a case where my client had fully repaid their DAS plan and there was still a debt showing on their credit file. As it had been over 8 years since they’d entered the DAS, we wrote to the creditor to say that based on the ICO guidance a default should have been registered upon entering the DAS scheme. They agreed to remove the debt from the credit file. I would suggest the couple go back to the adviser who set up the DAS plan to help them write to their creditors to get all creditors to register defaults. Especially if their DAS will be repaid in over 6 years. That way when they become debt free these debts should also no longer be on their credit file. They could get further advice/help at the following link to find an adviser in their area https://www.advicescotland.com/find-your-local-advice-agency/
Jim says
Thanks Angela, appreciate you providing a response. I will contact my DAS adviser and ask them to help have all the defaults updated to reflect the date the DAS came into effect.
Danni says
Hi, I’m hoping for some help, I missed a payment in April so 2013, by October I had missed 6 payments however the default didn’t start till September 2015 ( 6 is on my credit for around 2 years)
Is this a case where I can email and request they take it from an earlier date? Or asked for it to be deleted. It was from tsb bank??
Thank you
Sara (Debt Camel) says
What has happened to the debt, are you naking payments? Is it still with TSB or has it been sold to a debt collector? What sort if debt was thus?
Danni says
Hey although I’m not 100% sure I think it’s an unplanned overdraft.
It’s still with tsb and I’m not currently making payment.
Sara (Debt Camel) says
If this is an overdraft it can be complicated, as there aren’t any set monthly payments. And if you contact them they are likely to want you to start paying them. I suggest you talk to National Debtline on 0808 808 4000 about when the debt may be “statute barred”.
Max says
Hi
Hope you can help, I have a number of defaults on my account from 2015 which are now paid up via a DMP, however have a question on 2 of them.
The 2 in question where from 2 Natwest Credit Cards, during the DMP Natwest passed the debt to Cabot Financial.
My Credit report shows the defaults as April 2015, this info is provided by both Natwest & Cabot Financial, however the settlement date on each account is different, Natwest is showing as settled in August 2017 where as Cabot are showing October 2018 (this is the date that I paid Cabot)
Is this correct and are they allowed to show different settlement dates vs the original lender?
Sara (Debt Camel) says
The Natwest debt was settled when they sold it to Cabot. The Cabot debt wasn’t settled until you paid them. providing the default date is the same on both, that is right.
Sandra says
Hi!
I had a Barclays current account and overdraft. I made monthly deposits of between £50-100 to cover the overdraft interest and reduce the debt. Without giving notice, the usual £15-£25 interest changed to almost £100 and within a few months I exceeded the overdraft limit. I made a complaint, emphasised that I had no notice and couldn’t. Their response was to refund the fees they charged me for exceeding the agreed overdraft. They then continued to deduct the interest until it again exceeded the limit. In May 2015 they closed the account, moved it to their recoveries team! I refused to pay for any amount that was for the increased interest.
My credit score with CreditKarma and TotallyMoney both show an open Barclays account with defaults each month starting May 2015. If I agreed to settle the debt with a part payment do all those monthly defaults disappear or will it still show until 6 years expires? Is it in my best interest to just hold out till May 2021 for the 6 years to hit. I contacted Barclays and I was told to make another complaint and request they hold the account, will this negatively impact the debt being statute barred after 6 years? My husband and I would like to buy a house next year and need to know what the best course is.
Thank you.
Sara (Debt Camel) says
Can I check that your credit records show a default date in May 2015, not just missed payments?
Sandra says
Correction, the credit report shows missed payments between April and October 2015, then defaults start from October 2015 onwards. When I spoke with Barclays however, they said sent me a termination letter in May 2015. I don’t recall ever agreeing to a payment plan because I disputed the amount.
Sara (Debt Camel) says
“If I agreed to settle the debt with a part payment do all those monthly defaults disappear or will it still show until 6 years expires? “
this debt will drop off your credit record 6 years after the default date in October 2015 whatever you do – pay it in full, settle it partially or ignore it.
But of course if you ignore it you may get a CCJ which would be a disaster for a mortgage. I can’t guess what the chance is of this. If you are serious about buying a house next year, trying to settle it with a part payment may be your best option.
A different option may be to send Barclays a complaint saying the interest they added was unfair because they never informed you they were increasing the charges. Ask for the additional charges to be removed and for the negative information on your credit record to be removed. I don’t know how likely this is to work.
Sandra says
Its worth a try! Thank you!
Matt says
Hi Sara
Sorry for such a long message . I have just received this today and not very happy with the response. Please could you help with my response.
A default notice was applied to your account almost two years after the default notice should have been shown. You have said as you did not make any payments to this account after October 2015 you believe the account should have been defaulted in January 2016 and by the latest March 2016.
I’ve thought about the issues in the individual circumstances of your case, and I don’t think Satsuma are at fault I’ll now explain why. A hold was placed on your account in December 2015 due to you telling Satsuma you were entering into a debt management plan, which is standard practice. There was no further communication from yourself or a debt manager, until December 2016, when you raised a complaint.
In January 2017 a notice of default was issued which you didn’t respond to. In March 2017 the account was defaulted.
Why I’m not asking Satsuma to take any action Based on everything I have seen I can’t justify Satsuma defaulting the account in January 2016 or March 2016. Before an account is defaulted a business is obligated to send out a notice of default to give a consumer some time to get their finances in order.
Sara (Debt Camel) says
Who is this from?
Matt says
The adjudicator at the ombudsman .
Sara (Debt Camel) says
what was your complaint in Dec 16 that is referred to?
Matt says
After finding your website I put in an affordability complaint but as it was only one loan and it was rejected. But I still think this unfair 16 months between making my last payment and a default being applied.
Thanks
Sara (Debt Camel) says
I suggest you reply:
“I would like you to reconsider your decision.
I think you may be confusing a Default under the Consumer Credit Act with a default being recorded on CRA records. Although these can happen at the same time they do not have to.
When you wrote “Before an account is defaulted a business is obligated to send out a notice of default to give a consumer some time to get their finances in order.” that accurately reflects the CCA position.
But I am not complaining about the date that Satsuma sent me a Notice of Default, I am disputing the date a default was entered on my credit record.
Credit reporting is not governed by the CCA. The rules about what CRA members should report and how long data should be retained for are set by the Steering Committee on Reciprocity (SCOR). SCOR publishes the “Principles for the Reporting of Arrears, Arrangements and Defaults at Credit Reference Agencies” (http://www.scoronline.co.uk/sites/default/files/Principles%20for%20the%20Reporting%20of%20Arrears%2C%20Arrangements%20and%20Defaults%20at%20Credit%20Reference%20Agencies%20vesrion%202a%20final.pdf). These SCOR principles are intended to give consistency – a lender considering a credit application needs to be able to assume when he is looking at an applicant’s credit record that all lenders have reported defaults in a similar way.
4. If you fall into arrears on your account, or you do not keep to the revised terms of an arrangement, a default may be recorded to show that the relationship has broken down.
As a general guide, this may occur 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.
None of those exceptions apply to my Satsuma loan. I was 3 months in arrears in January 2016 so I am asking for a default to be applied at that point in accordance with the SCOR principles.
The SCOR principles also say “The purpose of reporting arrears is to indicate at the earliest reasonable opportunity that a customer is showing signs of potential financial difficulty or inability to manage his/her finances.” I did not make any payments after Oct 2016 [NB check this is correct!] and I told Satsuma in December I was going to go into a DMP. It was obvious to Satsuma that I was in financial difficulty. No payment arrangement was agreed so there were no reasons not to report these as missed payments leading to a default when arrears were at the 3-6 month point.
By delaying the date a default had been added, my credit record is being impaired for longer.
The ICO says in its forward to the SCOR document: “ICO will retain a keen interest in how personal data is processed within the credit industry, given the significance for individuals of decisions based on CRA information. A record lodged with a CRA must be a reliable reflection of an individual’s credit standing. The Data Protection Act 2018 is likely to have been breached where, for example, inaccurate, out of date or excessive personal data is being used to assess your credit-worthiness.”
I think this is what has happened here. If Satsuma had added the default after 3-6 months of arrears it would be dropping off a year earlier than it will currently. This means my missed payments are being kept on record for 7 and a half years.
If you do not reconsider your decision, I would like my complaint to go to an Ombudsman.”
Matt says
Thank you Sara for your response , I will take this back to the adjudicator and let you know the outcome. I do really appreciate the time you have spent looking at this issue. I didn’t know where to start yesterday. So thank you again.
Matt
Matt says
Hi Sara
I just wanted to update on my email from addjudicator I received this evening. They havd told satsuma to change the default date to March 16 almost one year earlier . It has been a long struggle with satsuma refusing to change it and telling me it could not be done almost six months with the ombudsman services . But if I hadn’t had the use of your knowledge then I would have just almost accepted the addjuticator . Thank you for your help it has really means a lot to me and my family.
James M Harding says
I have 3 years of missed payments on my credit where I have been paying reduced amount as agreed with my debt management agency.
I also have 4 defaults on my credit report from 3 years ago from my other debts.
I have the ability to pay off the debt in full now so i no longer get any more missed payments however I will have to wait the 6 years for these missed payments to drop off even with the note that the debt has been paid.
I’ve been offered to change the 3 years of missed payments to a backdated default so that in 2-3 years time all the defaults fall off my report together.
Which option should I go for?
Aly says
I wrote a message on here previously regarding changing default dates. I was successful in negotiating change of default dates with Halifax and RBS, however Zopa refused to accept they had treated me unfairly so would not budge on the date. I responded to them with a subject access request along with mentioning it would be referred to the financial ombudsman. (I’ve referred it but they are yet to respond with their decision).
They have now failed to provide the data access, for over two months. I was wondering if you think this may help my case with the financial ombudsman or whether I should contact Zopa or go directly to the financial ombudsman again?
Sara (Debt Camel) says
It’s annoying but it isn’t likely to help you win the FOS case.
Aly says
Ok. Thanks for the heads up. I’ll maybe push them for it then.
Cj says
I have a debt with lowell the original default date was dec 2013 …but was updated to dec 16 now showing the later date only can I ask for this to be removed or not
Sara (Debt Camel) says
The original lender added a default if Dev 2013?
Christine Spillane says
Hi, I have noticed on my credit report from clear score that I have defaults that are more than 6yrs old but are still appearing on my credit report. How can I get these removed as they have gone past the 6yr mark.
Sara (Debt Camel) says
Ask Clearscore why they are there.
Claire says
Hi, I had a DRO on August 4th 2014 which has dissapeared today! But 2 of the creditors still have recorded a later default date (August 20th 2014, so not to bothered about that one as it’s a couple of weeks away until it drops off my file) but the other that is wrong has March 2015 as the default date, should I be contacting the creditor to change it to the date I entered the DRO or just leave it? How much impact would that have on my credit file?
Sara (Debt Camel) says
As you say a couple of weeks doesn’t matter but I think it’s best to ask the creditor to correct the later one.
Andy says
Hi,
Sorry to hijack but I’ve looked on all 3 agencies and a very similar query.
FYI, I live in Scotland and was hoping to let this fall off at the end of 2023, saving for a mortgage and doing everything to improve my scores in the meantime.
On Experian;
I have a “Current Status” of “Default/Ended”
An “Account Settled” date of 31/07/2017 (Is this the default date??)
But a “Last Updated” date of 15/03/2020
These guys put a marker on every month that looks like I’m defaulting again but I’ve read on your site that should disappear when the default “Falls off”?
On Equifax;
I have an “Updated” date of 17/08/2017 (Is this the default date??)
“No data recorded” from July 2017 is the only other information I can give you from this one.
On Transunion;
The “Date of Default” is 31/07/2017
But the “Last Updated” date is 04/07/2020
These guys put a marker on every month that looks like I’m defaulting again but I’ve read on your site that should disappear when the default “Falls off”?
To add to my confusion, Transunion show the account as open yet the other two show it as “In Default”
I guess the short question is, should these all fall off my reports by the end of 2023? Providing I’m not issued with a decree.
Bonus Question: What’s the likelihood of receiving court action in Scotland for the sum of £2018?
Sara (Debt Camel) says
Which reports are you looking at?
Andy says
For Experian I’m using Experian, Equifax I’m using Clearscore & Transunion I’m using CreditKarma
Sara (Debt Camel) says
I hope you aren’t paying Experian for that report!
I suggest you get the statutory credit reports from each agency, see https://debtcamel.co.uk/best-way-to-check-credit-score/ for how to do this. These reports are less “pretty” and they don’t have your calculated credit score, but it is often easier to clearly see what the default date is on a debt.
J says
Dear Sara
I wrote to Coast requesting that they change the default date and requesting a copy of the CCA.
Their reply arrived today. They say they are unable to ‘uphold my complaint’.
They said: “We have examined your account and can confirm that Welcome Finance stopped reporting to the credit reference agencies in 2013 and deleted all records. When the portfolio was purchased by Coast Finance Solutions they decided to restart reporting to the Credit Reference Agencies. If Welcome Finance had defaulted you in 2009, because more than 6 years has passed, we would not have reported, as you can only default a loan once.
However, looking in the system owe can see no evidence that Welcome Finance defaulted this loan and they have not provided any default dates or balances within the data either. Therefore we cannot see that this loan was not defaulted by Welcome Finance and has not been defaulted by us either.”
J says
Regarding the CCA:
“In the same letter you requested a copy of your Credit Agreement. We have checked the documents available on your account and cannot see the original Credit Agreement. The documents supplied by Welcome Finance, following the account migration, are all we have available. As Welcome Finance are in liquidation, we cannot request the document. We apologise we cannot supply the document you requested.” They do not say that they are continuing to search for this.
Is my next best step to forward all of this to the ombudsman? If so do I state I would like them to review regarding the default date?
Many thanks
Sara (Debt Camel) says
when do you think you last made a payment to this debt?
do you know if it ever appeared on your credit record?
J says
Well before 2013. Probably around 2010.
I honestly have no idea unfortunately. I can’t imagine how it wouldn’t. I do know, when I looked into PPI reclaiming, (unsuccessful against Welcome) that at the time I looked into it they were already in administration and this was said to me in an email in 2011.
J says
Would my next step be the ombudsman? And they can’t find the original CCA
Sara (Debt Camel) says
The fact they can’t find the CCA means this debt is unenforceable in court. You do not need to make any further payments to it.
The remaining issue is that there has been no default date added to the record, so if you stop paying it will be defaulted and not drop off your credit record for another 6 years.
I suggest you have another go at Coast before going to the Ombudsman, both because it will be quicker if you can resolve this directly and because it is good to spell out your complaint clearly.
I suggest your next email to them should have the subject COMPLAINT – A DEFAULT DATE SHOULD HAVE BEEN ADDED BEFORE 2012
You can then say that you had thought there was a default added by Welcome, but there wasn’t, then there should have been one, because the SCOR reporting principles (http://www.scoronline.co.uk/sites/default/files/high_level_prinicples_document_final.pdf) say that a default should be added when an account is 3-6 months in arrears and you did not make any payments to the debt after your PPI refund claim was rejected in 2011. So you want Coast to correct this problem by adding a default back before 2012 and you will be taking your case to the Financial Ombudsman if they refuse.
J says
Thank you Sara very much, this is really useful. I can’t email Coast as there is no email contact address at all (and I have searched) but I will send a recorded delivery letter. Thank you again.
Sara (Debt Camel) says
Try martyn@coastfs.co.uk.
J says
Hi Sara
I emailed on the address you suggested but it’s the wrong company. I will send a recorded delivery letter.
They emailed straight back and said:
“We get mixed up with them all the time, 5-6 times a day, and we have been working with the FCA regarding their conduct and the way the treat their customers old/new.”
Sara (Debt Camel) says
So exactly what company are you dealing with?
J says
Coast Financial Solutions is the company I’m dealing with, there seems to be a financial company called Coast Finance (or financial) based in Plymouth, which is the one the email went to.
The company I am dealing with operate only from PO Box 924, Newport NP20 9PS
Their exact letterhead is ‘Coast Finance Solutions’ – I’ve just double checked.
At the bottom of the letter it says their agreements are administered by Target Servicing Ltd. The signatory of the letter is a Complaints Executive called Oliver Kane
Sara (Debt Camel) says
ok, try lee.sparey@targetgroup.com
J says
Hi Sara
Success: “I have passed this on to one of my team to log your complaint and contact you for resolution.”
J says
Hi Sara
I have had reply from their complaints email directing me to telephone the Arrears management department for ‘resolution’. I am tempted to request that they respond via email but I don’t think they would, and they have been asking for my telephone number. Should I respond?
Sara (Debt Camel) says
It is in your interest to get this resolved. I suggest you phone them unless you want to explain to them why mental health difficulties mean you would find that difficult?
Eve says
Hi Sara absolutely love your website its like a mix of Sherlock Holmes and Captain United Kingdom!! Love it!!
I have 2 questions:
1. If i had a default registered on my report with Tesco Loan and then it was passed onto Lowell. Can Lowell also put another default on my report for the same debt?
On my report It looks like 2 defaults are registered for the same debt…..the dates are not the same either….
This is across Experian and Equifax and I have downloaded reports directly from them instead of a third party.
2. When going for a mortgage is this classed as 2 debts or 1 debt?
I guess lenders will see 2 different names (Lowell and Tesco) so im a bit worried it looks like a lot of defaults…..help
Thanks Loads
Sara (Debt Camel) says
Thank you!
It is normal for a debt purchaser to add another debt. BUT the dates on them – especially the default date – should be the same. What is different?
Has the debt been repaid?
Eve says
Hiya thank you for replying.
– The default dates are different.
– There are no late payments on the Lowell but just a default registered.
– They have been paid
Because they are different dates what do i do? What letter do i send to get them to change it please?
Does it also look like or count as 2 defaults even though they are for the same account? Is that allowed?
Sara (Debt Camel) says
so Lowell’s default date is later?
Eve says
Yes correct it is later.
Also There are no late payments on the Lowell but just a default registered.
Does it also look like or count as 2 defaults even though they are for the same account? Is that allowed?
Sara (Debt Camel) says
Then tell Lowell to correct the default date as they should have used the same one.
Once a debt is defaulted there shouldn’t be any more late payments recorded.
What was the earlier default date? When was it settled? How large a deposit % do you have?
Terry says
Evening,
I have just found an old closed British Gas account on my report this is from my old property. The missed payments started clocking up in March 2016 and the account was closed in August 2019.
I’m going to call British Gas as I think it’s unfair as it will take till 2025 to come off my report can I ask them to adjust my report?
Sara (Debt Camel) says
Yes you can. And should. But whether they will is a different matter.
PE says
Hi Sara,
I had a loan with Myjar taken out in early 2015 with payment defaulting and in arrear from Jun 2015 I informed the company that I was in financial diffulty and tried to start a repayment plan. when I missed a payment in 2016 they readded all accrued interest and fees leading to a dispute. Almost 5 years on they have agreed to respect the claimed balance in agreement fr settlement which I advised I was happy to close issue. The issue is the default notice which they have applied on my credit file on 21/06/18. I disputed this with them advising I had recieved no notice of this around this date and they told me I had to make a complaint via credit reference agency which I did and they then rejected. I then went back to them and they said they had sent a credit agency default notice on 21/06/2018. I made an SAR request tand they sent me what looks like everything on my file including email history. The email history shows default notice email on 21/06/2016. This email was not acknowledged. I can then see a further efault notice email on 17/01/2018 after years inaction on account due to dispute. no further default notices issued prior to being registered. I had asked them to send me copy of email claimed to have been sent 21/06/2018. I would be grateful on your thoughts on where I stand in all this and how I can proceed.
Sara (Debt Camel) says
How large was this loan? Was it your first from MyJar?
PE says
This was the 2nd loan and was for 400 originally.
I would be happy to settle the account and close the matter off but feel the default should have been marked in 2016 instead of 2018 adding almost a further 3 years on to the date before it drops off my file. They contest the default date is correct
Hannah says
Hey PE
I had the same issue recently they sent me a default notice in July 2016 and then sent me a second default notice in February 2017 and used that date on my credit file . I emailed the CEO last week and had a response a couple of days later and they have requested it to be changed to July . It only took one email . Hope that helps .
PE says
Hi thanks for your comment. Can you pass me on the email you had success with?
Hannah says
Hey PE
It’s no problem , I hope it works . The email I sent it to was ellis.sher@myjar.com
Good look
Hannah
J says
I think I feel that I would be placed under pressure by them. I will try telephoning.
Sara (Debt Camel) says
if you aren’t clear what they are saying or they aren’t being helpful, say you don’t understand and can they put it in an email so you can think about it.
J says
Hi Sara
A quick update…I requested that they email me as I would like to have their response in writing. They accepted this and moved their communication to letters. They opened another complaint investigation and upheld my complaint, agreeing that Welcome should have placed a default in 2011. They have agreed to place the default date as 2011 on my credit file, so a successful resolution. Thank you so very much for your help in achieving this!
Sara (Debt Camel) says
well done!
PE says
Thanks got this email from them so sorted now.
Having looked into this for you, it appears as though MYJAR have tried to act in your best interests. Although a default notice was sent to you on 21/06/2016, you had been in touch with us and set up a repayment plan. As you were working with us, in attempting to resolve the issue, and avoid a default being applied to your credit file, we did not apply this following the 28 days stipulated within the Notice Of Default. However, as the repayment plan subsequently failed we should have applied this on 19/07/2016.
As a result of the above investigations MYJAR will agree to backdate the default to 19/07/2016. Please allow 60 days for this to show on your credit file.
Mayweather96 says
I entered a DMP in 2016 with 3 accounts. 1 was defaulted and the other 2 made a note on my credit file to say it was in a payment plan.
How bad is this note on my credit file? Is it as bad as a default? These two accounts are settled now but only with dates of 2020. I had no idea they were still open as I assumed going into the plan would have closed them as I could never have used them again.
Sara (Debt Camel) says
It’s not as bad as a default but it will be there for a lot longer. You can ask the original lenders to add a default back in 2016/17, then it will disappear in 2022/23. If not the payment plan will disappear in 2026.
It isn’t clear what will be better for you here, a worse credit record now for a few years or a not so bad record for longer.
Mayweather96 says
Thanks.
How much does the note of payment plan affect me? A default is a big red marker but these notes are just notes. Will it stop me getting a mortgage / applying for credit cards etc. Do some creditors even check for these types of notes
Sara (Debt Camel) says
That is a lender by lender I am afraid. By the time the other defaults drop off, these payment arrangements will be pretty old. Some lenders may not care.
Lisa says
Hi Sara
I hope you can help , I had a default notice applied to my credit file in April 2017 from aqua but I hadn’t made any payment from August 2016. It was sold to Lowell do I ask them to change the default date or aqua the original creditor ?
Sorry if this question has been asked before
Lisa
Sara (Debt Camel) says
You ask the original lender, Aqua. If they change the date the debt collector has to do the sams.
But the Rules say a default should be added when an account is 3-6 Months in arrears. So Feb 17 would be ok. So the date may not end up being changed much.
jake says
hi Sara
hope you can advise me on this,
I have a default on my account for a loan, both the creditor an debt collector have put a default on my account. it is show as two different defaults on my credit score for the same loan. would I be able to get one of these defaults removed. also the creditor is still showing I ow them money but I have paid debt off in full about two years ago. The debt collectors default is showing I have paid the balance in full.
thank you
Jake
Sara (Debt Camel) says
It’s normal – and correct – for their to be 2 debts shown when a debt has been. Old. But the original creditor should be marking the debt as satisfied with 0 owing. Ask them to correct this.
jake says
thankyou Sara, its with sunny loans, I’ve just seen that they have gone into administration. do you think this may be a problem.
thanks you for your help
Sara (Debt Camel) says
It shouldn’t, but it may well make it harder to get customer services to listen to you and it may take longer to get it corrected.
Had you borrowed a lot from them?
Scott says
Hi Sara,
I took out a loan with Satsuma in March 2018 for £300.00.
The normal monthly payments were meant to be £94.00.
Between March 2018 and December 2018, I made 3x£10.00 payments. The loan was over 6 months and due to circumstances beyond my control I was unable to repay it.
So during the 9 months between these dates I paid £10.00 on three occasions. My issue here is that they never defaulted my account.
I started a DMP via stepchange in January 2019, and now my credit file is marked as AR. The DMP is likely to last until November 2024 at the latest.
Obviously AR is going to show on my credit file until 2030.
Am I right in thinking that my account should have been marked as default in 2018? Obviously I know defaults are bad, but due to my other debts and defaukts, it would benefit me more to have it coincide with my others from 2018.
Could you please advise?
Kind Regards,
Sara (Debt Camel) says
By Dec 18 you must have been more than 3 months in arrears. So you can ask Satsuma to add a default date back then.
James says
I have recently had this issue with satsuma as well, when I spoke to satsuma they said it went to default and it was a issue with equifax and when I went to equifax they msg to say that satsuma has said the date was correct.
I have lodged a unaffordable complaint so hopefully it will be changed that way.
Sara (Debt Camel) says
Hi James, yes that would solve the credit record problem. Send the complaint to the Ombudsman if Satsuma reject it.
But how good is your affordability complaint? Unless it is very strong, you might also want to complain to the Ombudsman about the default issue. In case you don Win the affordability complaint.
DD says
Hi Sara,
I defaulted on an old credit card in December 2018 and subsequently My debt was sold to Cabot. Since then I’ve been paying £250 each month and my balance has come down from around £9000 to £5000. I asked Cabot whether they would accept a partial settlement. They have replied and advised a figure of £4100 so it’s an improvement. My question is, the partial payment would show on my credit file, would it be seen as negative the fact it’s a partial payment and not the full amount? I understand each lender look at their own criteria for lending so perhaps not a yes or no answer? Also, I did go back to Cabot asking if they would lower the settlement to around £3000 but they couldn’t accept that. Thanks
Sara (Debt Camel) says
As you say, not a yes or no answer. Some lender will just be happy you no longer owe that money. Other may not like the fact there was a partial settlement. With a recent default you will have problems getting a mortgage or a good 0% balance transfer offer even if you settled in full.
DD says
Thanks Sara, you’ve replied with what I thought.
My partner and I would be looking for a mortgage before March next year and have around 150k as a deposit. We are looking for a mortgage of around 100k, would the fact we have quite a big deposit offset the default somewhat? My credit score is currently fair according to Equifax so I’m looking to rebuild that following on from the default
Sara (Debt Camel) says
I think as you have such a huge deposit and a recent default it might be better to pay in full and avoid the partial settlement marker. This won’t affect your headline credit score but may mean some mortgage lenders are more likely to lend.
Yes a very big deposit can make a difference. But the longer the debt us settled for tgd better do clear it ASAP.
Go through a good mortgage broker.
CA says
Hi Sara,
Hoping you can help or point me in the right direction. In Feb 2015 I fell into some unfortunate circumstances when I broke my leg and was made redundant within a few months of each other.
I held a few accounts with RBS, a loan/credit card. I contacted RBS and made them aware of my situation and they allowed me to make reduced payments for a few months. Every time I called to update them they advised I went through step change so after a few months of reduced payments I advised them in August 2015 I was going through Stepchange and starting a DMP. I Signed all the DMP docs in at the end of August and payments didn’t start to step change until the 1st of October.
RBS Didn’t register the default until the 15th of December 2015, I have complained to the financial omsbudman to try get the default removed to an earlier date as I believe they should be going by the date I first informed them I was having financial difficulties.
The investigator has come back saying he doesn’t believe RBS have reported anything wrong but I don’t agree, as it states under ICO rules that a default should be registered after so many missed payments?
Please can you give me some advice? I’m hoping to get approved for a mortgage so really need this to drop off my credit file sooner than Dec 2015.
Thanks
C
Sara (Debt Camel) says
So this is an adjudicator decision – if they won’t change their mind you can ask for it to go to an Ombudsman.
But tHe ICO rules say when your are 3-6 months in arrears. If you made some reduced payment you may not have been 6 months in arrears until August – September – October. Even if you get the Ombudsman to uphold your case, you may not get the default date pushed back by much.
When was the defaulted debt repaid?
CA says
I am still paying this via Stepchange so it is not yet settled. Should the default date be registered from when they started receiving payment via the DMP?
I am also challenging the amount of debt collection agencies that RBS sold the debt to, but then when Stepchange contacted them they insisted they were dealing with all accounts in house. On the accounts I held I have been battling with them to change markers and dates as they keep recording incorrect information, most of these I’ve managed to solve other than the default date.
Thanks
C
Sara (Debt Camel) says
Should the default date be registered from when they started receiving payment via the DMP?
No, the 3-6 months in arrears rule is all that applies
If your DMP is still continuing that is your big problem, not the default date. You do know you have no chance of getting a mortgage at anything apart from a dreadful rate while you are in a DMP? Even when the debts are not showing on your credit record, a mortgage lender will see the monthly payments to StepChange on your bank statements.
CA says
Hi Sara,
Thanks for that information, I didn’t realise since the DMP doesn’t actually show on my credit file.
I have a debt back from 2015 that Cabot have just taken over, am i best trying to set up a plan with Cabot rather than paying this through the DMP or will this show equally as bad that i’m settling a debt?
Thanks
C
Sara (Debt Camel) says
That also needs to be settled or a mortgage lender will see the payments to Cabot from your bank statement. A payment arrangement with a debt collector is just the same as making DMP payments, not better or worse.
One option is to look at using some of your deposit I assume you are saving up to make full and final settlements to Cabot and to the debts in your DMP. See https://debtcamel.co.uk/debt-options/less-common/full-final/
Louene says
Hi Sara,
Barclaycard sold my debt to Lowell/Link at the end of February 2015. I had been in an agreed payment arrangement with them for the previous 12 months which was following on from prior payment arrangements that had been agreed to run for either 6 or 12 months since October 2011 after a protracted dispute with them which was eventually resolved in my favour by the FOS.
Barclaycard never explained why they sold my debt to Lowell/Link, only that that was what they were going to do. What I would like to know is if they should have defaulted my account when they sold it? Does a creditor have to place an account in default/issue a default when selling a debt?
I want to ask Barclaycard to put a default on my account from February 2015, when they notified me they were selling my debt to Lowell/Link which will means I only have a year left before it drops off my Credit File. I am trying to change mobile phone and broadband providers and energy suppliers in order to reduce my outgoings but with a recent default registered on my credit file, I am worried that I will be locked into monthly payments I am struggling to afford as anyone looking at my credit history will think I’m too high risk.
If you need to know anything else regarding my circumstances or the disputes I’m having with Lowell/Link, please let me know.
Thanking you in advance.
Louene
Sara (Debt Camel) says
I suggest you ask Barclaycard to add the default back then. They don’t have to, but if you were in significant arrears at that point it is reasonable that they should have.
Shez says
Hi Sara,
I had an unsecured loan with NRAM which has now been taken over by Heliodor, a few months ago. I have been on a DMP since 2011 and NRAM kept marking my credit file as a payment arrangement.
About 6 weeks ago I asked NRAM to add a default, dated September 2011. Heliodor responded (not NRAM) and said no, they cannot uphold my request but did say that they can add a default now. So my questions: Why would they agree to add a default now and not agree to add one retrospectively to 2011? Should I complain to the Financial Ombudsman and can I use this as an argument?
Thanks for your helpful advice as always.
Shez
Sara (Debt Camel) says
Heliodor probably can’t add a default before they took over the loan. I suggest you persist in saying you want NRAM to add a default.
Shez says
thanks for your advice Sara
I have written to NRAM again….fingers crossed!
Ravi says
I have two CCJs. With 1st one I settled the debt 3 years earlier. After sending the payment records from bailiff they recorded date the when I sent the record rather than date of settlement.
2nd I did not received the Court Notice for hearing consequently the debt was satisfied when I checked as it appeared in the Credit reference agency. I wanted to have a note to that effect.
The reason I am concerned as my insurance claim is on hold as I have two undeclared CCJs. What do I do?
Sara (Debt Camel) says
After sending the payment records from bailiff
who did you send them to?
2nd I did not received the Court Notice
so this shows as settled for the correct date you paid it?
Andy says
Hi Sara,
Looking for some advise regarding a default on my credit file for a very account.
The last payment I made to them was in December 2013 but the default on my file is registered as September 2015. The problem is i have lowell breathing down my neck but had very followed ICO rules then surely this debt should have had a default registered after 6 months? Are they allowed to register a default almost 2 years after a payment was made?
Andy says
I should have mentioned I contacted very and they said they couldn’t advise as the account was so old and now with lowell but can only advise they that think it was so late as they were helping me bu giving me time.
Dan says
Hi,
I took out loans with quick quid and pounds to pocket at the end of 2013. Shortly afterwards in August 2014 I entered into a debt management plan . Something very strange seems to have happened , about a year or so ago I checked my what was then noodle credit report (now credit Karma) and saw that both pounds to pocket and quick quid accounts had a default date of August 2014. My now credit karma account is showing no evidence of them so I just assumed that they had fallen off as it is past the 6 years deadline. However I recently logged into my Experian report to see an entry by CashEuroNet (trading name of quickquid) with missed payment markers all the way from 2014 ! I have contacted quickquid and asked them for this to be removed however they are refusing and have said that as I have been making regular payments to my account via my DMP the account has not defaulted. There is obviously discrepancies in the information being reported. Now that they are in administration I believe that I can no longer bring this to the financial obudsman am I right ?
Regards
D
Sara (Debt Camel) says
No you can no longer go to the Ombudsman.
Have you put in a claim to the portal for Unaffordable lending? If you win this, any negative marks on your credit record will be removed , and the loans are likely to just be deleted.
Dan says
Hi Sara,
I have submitted a claim but there obviously no guarantee that I will win. I would like to apply for a mortgage once my DMP is settled which will hopefully be next year so I really want to get these negative markers removed. It’s confusing as to why a default was appearing last year but now missed payments are appearing . I’ve tried to argue that that is incorrect in Itself .
Regards
D
Sara (Debt Camel) says
I agree it’s wrong. I suspect it may be easier to win a Claim than get this sorted though…
But you can try both. Read https://debtcamel.co.uk/debt-default-date/ and send in a complaint to their data protection officer, details here https://ico.org.uk/ESDWebPages/Entry/Z9919587. Attach a copy of your old Credit Karma report showing the default date and ask that the same date should be added to Experian as this complies with the 3-6 months in arrears rule. If they reject thus, send your complaint not to FOS but to the ICO.
Danielle says
Hi Sara ,
The issue is I’m unable to get hold of an old copy of the old TransUnion report and credit karma is is only showing alerts for this year . I know it was definitely appearing as a default about a year or so ago. It’s difficult to prove this though without evidence which is why it’s frustrating. Is is still worth a shot complaining to the ICO ?
Regards
D
Sara (Debt Camel) says
Yes it is.
Louis Miles says
So I have an ongoing battle with Virgin Money over a default date…
I entered into a DMP with PayPlan in July 2016, this meant that all my creditors (about 8 from memory) recieved a part payment until I made final payments to my creditors earlier this year. Having recently checked my credit file in more detail, I saw that Virgin Money had added a default date of July 2017, 12 months after I started making only partial payments. Having tried to lodge a complaint with them they have come back and said that because I was making partial payments, I was not 6 months “in arrears” until after 12 months of partial payments (as it took this long until I was 6 x my minimum payment behind)… Having asked to see the full breakdown of their calculations (because frankly I think the amount I was paying was less than 50% of my original minimum payment and hence I’m not sure this calculation is even accurate!) they have basically refused and that if I want to take it further I need to raise it with the Ombudsman… This seems totally baffling to me as all other creditors set the default date to 3-6 months after my original July 2016 DMP start date.
Am I right in thinking that this sounds like a total farce? I know the guidance says 3 -6 months of arrears but I assumed this would count if I was only making part payments? Needless to say I will not be using Virgin Money in the future!
Sara (Debt Camel) says
“because I was making partial payments, I was not 6 months “in arrears” until after 12 months of partial payments (as it took this long until I was 6 x my minimum payment behind)”
That is the way it is supposed to work.
You could send the a request for a copy of all your data – email dpo@virginmedia.co.uk and say you want to make Subject Access Request.
Louis Miles says
Hi Sara,
Thanks for your reply, I don’t understand why all the other companies included in the DMP took it as 3-6 months from reduced payments and yet Virgin are digging their heels in and saying they wanted to wait until I was at the same point as 6 months of no payments… The person I spoke to at Virgin had basically said I would have been better off making no payments for 6 months and then making larger payments after that which seems crazy to me!
While we are looking to get a Mortgage shortly after the defaults drop off my credit file, in reality a few extra months of saving (and ISA bonus) and with so many unknowns with Covid/lack of first time buyer mortgages at the moment holding fire for the extra 6 months is probably not a bad thing (we wouldn’t be looking until mid 2022 earliest in any case)
I will let you know if I do make any progress with the Ombudsman but by the sound of it not all that likely!
Sara (Debt Camel) says
The person I spoke to at Virgin had basically said I would have been better off making no payments for 6 months and then making larger payments after that which seems crazy to me!
The whole UK credit recording system is not fit for purpose.
Drew says
I am looking for some advice with regards to a Very account I had which I defaulted on.
In December 2013, I found myself out of work and no longer able to make my monthly commitments this was due to a serious health issue.
The last payment I made to them was in December 2013 but the default that has been registered on my file is September 2015. The debt is now with Lowell.
Having read loads of your comments and various other articles online it seems very strange that they registered a default on my file almost 2 years later!
I left the UK to work abroad and since returning recently this is when I have encountered the problem.
When I contacted Very about this they gave me what I believe was a lame excuse as to how they were giving me the benefit of the doubt and that now theres nothing they can do as the debt is so old and has been sold. They advised that they served section 87 default notice in August 2015, hence the default date of September 2015.
As mentioned above looking at the guidance should Very not have at least registered the default with CRA’s after 3-6 months?
Sara (Debt Camel) says
You made no payments after Dec 13? Are you making payments to Lowell?
Drew says
Hi Sara, when I went back to work in October 2014, I tried to get hold of my finances and I setup a DAS and made a sole reduced payment of £11. Work subsequently didn not work out and I found myself out of work again and thats when I went abroad. My DAS management company informed all creditoes the DAS was revoked.
However, between December 2013 and August 2014 I did not make any payments, 8 months of no payments, minimum payment at the time was around £300. Surely the account should have been defaulted in that 8 month period inline with SCOR?
I have not made any payments to Lowell.
James says
Hi Sara,
I may have asked this before or it has been asked before, I have various Lowell debts going back to 2015, I am now at the stage of considering paying these, i have heard if i call and discuss the debt or acknowledge them the default day will then revert to now?
Can you tell me if this is correct?
Sara (Debt Camel) says
Are these debts marked as defaulted on your credit records? Don’t assume they are, check to make sure.
What sort of debts are these and when were the original accounts opened?
James says
Hi Sara,
They are for mobile phones and credit cards which i failed to pay, now I am getting in a better position I was considering paying them. I have just double checked they are all at default. I am just worried if i speak to Lowell now they will reset the default date until now.
Sara (Debt Camel) says
The default date will NOT be changed.
When were the credit card accounts opened?
James says
2017, I had 3 credit cards.
Sara (Debt Camel) says
Ok, so very recent. Much less likely to be paperwork problems with them that would make them unenforceable.
FS says
Hi Sara,
I’ve been in a DMP covering several credit cards for over 6 years. All but one of the original lenders added a default date (within 6 month of the DMP) and these will soon drop off my credit records. I have one slightly unusual situation where the original credit card lender hasn’t reported to any of the CRAs and also sold my debt on without registering a default. The debt now appears on my credit reports with ‘missed payments’ listed by the DCA from the time it was purchased. I’ve emailed the original lender asking for a default to be added. Can they decline to do so? If they do, should I ask the DCA to independently add a default date 6 months after I began my DMP? Many thanks,
Sara (Debt Camel) says
If the original reuses to add a default, take your complaint to the Financial Ombudsman.