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.
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?
Dale says
It was a bit more complicated.
We had a faulty meter from March 2011 – May 2012 and the bill came out of my ex partners account, I was giving her the money but she was not paying the bill and I never saw any letters as she opened them all.
It was the energy ombudsman that I took this complaint to.
Is this debt not statue barred?
Can they get a CCJ against me?
I don’t mind paying the bill I just want the default back dating as I can’t get a mortgage.
David D says
I have a question, took out a loan from Likely Loans in Sept 2017 to repay PayDay Loans (yes, I know!) and in Nov 2017 I decided enough was enough and realised I’d got myself into enough trouble. I contacted Likely Loans and StepChange, in turn with effect from Dec 2017 I have been paying it back via a DMP at only £6 per month, in comparison to the £118 loan repayment it should have been.
I’ve kept up with the DMP payments since, not missing any, but queried recently why they didn’t add a default because my credit report shows it was at least 3 months late (now shows 6 months late) but Likely Loans are saying they won’t add a default as a DMP agreement stops that action; is that correct?
Sara (Debt Camel) says
Have you complained to LL about unaffordable lending? How large are the total of debts in your DMP?
David D says
Hi Sara, sorry yes, I’ve already been down that route. Might I add, further to the help of your site alone : )
£15k of debt overall, all now being paid via individual DMPs set up direct with the lenders / creditors. No issues in that respect, but wondered whether a default should have been added to this account, as this will take a good few years to pay off and then take another 6 years to drop off my report after that I’d assume.
Sara (Debt Camel) says
So your options are to put in a complaint as the article above suggests and take it to FOS if they do not add a default. Or to simply stop paying them for a few months until they add a default. If you were a long way into a DMP the latter is not a good idea, but as you are so close to the start it is a possible option if they won’t add the default.
David D says
thanks Sara, I’ve raised a concern about it with them now.
Its bizarre that due to me being open and honest from the off, not missing payments (as such) and committing to a DMP despite the massively lower repayments, I’m actually going to be worse off at least from a credit report point of view rather than if they’d just applied a Default had I ignored them and not made payments.
In my particular case, continued to pay via a DMP and not missed any payments – 4 years before account paid off and 10 years before account removed from credit score – 2029.
If I’d have ignored them from Dec 2017, the account would be defaulted and would be removed from my credit report from Dec 2023!
DCc says
Hi
I complained to creation and have had the following response.
‘An arrangement was set in place for April 2014 and your account was later passed to Lowell in 2016 to manage . However I can confirm that accounts that are in financial difficulties arrangements would not be defaulted, rather being allowed to continue on the arrangement.
I am unable to uphold your compliant’
Any advise please.
Sara (Debt Camel) says
You could go back and say that you feel that this is not treating a customer fairly as this was not explained to you at the time. Ask them to reconsider or you will send the complaint to the Financial Ombudsman.
Dcc says
Thanks. Do people generally have any success with FOS on getting defaults added?
Sara (Debt Camel) says
It seems rather random I am afraid. Well worth a go though – it’s just a few emails from you.
Shezza says
Hi, I applied to my creditor to get a loan defaulted as I was in arrears and paying very little on a DMP which was reviewed every year. The have refused so I went to the ombudsman office and this was their response (below). Is there anything further that could be done? My DMP is now 8 years old.
Reporting an account as in default is only done as a last resort when the relationship between the lender and consumer has broken down and attempts to come to an arrangement have failed, or if the agreed revised terms are broken, or the account is closed with an outstanding debt. A default shouldn’t be filed if an agreement is reached and the consumer keeps to the terms of that arrangement. Being in arrears doesn’t automatically mean an account is in default, neither is there as fixed level of arrears which means an account is in default.
Sara (Debt Camel) says
Is this reply from an adjudicator or from an Ombudsman?
Shezza says
Hi Sara, the response is from someone who works at the Financial Ombusman office, where I raised the complaint.
Tom says
Hi Sara
Hope you can help me , I have a payday loan with payday express from 2015 , I lost my job and was unable to pay it back . I recently looked on my credit report and it has not default and just show six late payments from 2015. I contacted payday express but they said they couldn’t add a default on the loan as they had not issued a default. Is this right or is there anything I can do to have a default applied to the account.
Thanks
Tom
Sara (Debt Camel) says
Have you repaid the loan? was this the first loan you had from them? Did you have other payday loans? (these questions aren’t as irrelevant as they may sound!)
Tom says
Hi Sara
Sorry for the delay in getting back to you I have been at work no I have not repaid the loan , but in a position to do so now . It was only my first loan with them but I had defaulted on five other payday loans
Thanks
Tom
Tom says
Hi Sara
Sorry for the delay in getting back to you I have been at work no I have not repaid the loan , but in a position to do so now . It was only my first loan with them but I had defaulted on five other payday loans
Thanks
Tom
Wal says
Hi,
I have different default dates in all three agencies. Should be there the same dates???
Sara (Debt Camel) says
for the same debt? how different are they? And is this with the same creditor, or is one with the original creditors and another with a debt collector?
Wal says
The difference is almost five years. Experian started default Nov 2013 and Call started in March 2019. I’m in DMP from Sep 2013 never missed payments under the DMP. It’s the same creditor and the same account just compared entires from three different credit agencies.
Sara (Debt Camel) says
who is the creditor? do you still owe a balance?
Wal says
In previous post I made a mistake.
– One is LLoyds but it’s overdraft First default Nov 2018 by Experian and first default by Equifax in Apr 2019
Another is AA finance default March 2014 by Experian and first defaulted by Equifax in April 2019
Still owe money for both creditors.
Shezza says
Hi Sara
I wrote to Arvato for the CCA and they have replied that the account is now closed and returned to their client Barclays bank. What should I do now? Should I ask for a CCA from Barclays bank? They were the original bank that I had the Credit card with. thanks, Shezza
Sara (Debt Camel) says
Well you know I think you should be getting on with buying a flat and then deal with making settlements… If Barclays contact you, ask then for the CCA.
Shezza says
thanks Sara
Yes, I will do that…currently searching the property market :-)
thanks for your advice so far
Shezza
Steve says
I need some advice, I didn’t know there was a water meter in my rented property when I moved in back in 2003. After months of arguing the huge bills and engineers coming out it was found that a previous tennant hadn’t disclosed the meter being fitted and that’s what caused it, it was on the public path outside the house.
I agreed to pay £40 per month and have done ever since, for the last 16 years. Severn Trent continue to send my bills to Moorcroft and despite the default dropping off I still have AR on my file and Severn Trent keep adding to the debt.
Any advice welcome as I didn’t know until I checked equifax I even had an AR marker which makes getting a mortgage impossible just as we’re about to apply for one
Sara (Debt Camel) says
I think you should go to your local Citizens Advice and ask for their help as this all sounds very odd.
Ray L says
Hi
I am trying to get a mortgage to get a new house but my credit report keeps throwing up that I on a DMP.. In 2014 I was in financial difficulties and went to the CAB for help, they advised me not to make further payments but would write to all the creditors to get my payments reduced after going thru a financial statement.
I just recently just registered to Noddle and all of my creditors have marked a default from about that time in 2014, however there is one that has marked it as a DM, debt management plan.
I have called them up and they say the marker is correct even if I am not paying a dmp company, they said I used a third party, the CAB, to put offers in and they have then put DM markers on.
my mortgage lender have asked me to provide dmp company name etc for this but I pay this as a self managed plan I guess.
What can I do to change the markers or even change it to a default and back date it to 2014
How do I tell the mortgage lender about this and explain..
Also I have another two creditors that don’t take payments direct but use a third party to take money then pass the money onto them, would the mortgage lender see this as a DMP?
Many thanka
Ray
Sara (Debt Camel) says
Are you still making payments to these payments arrangements?
Ray L says
Hi
Yes I am still making all the payments however I must admit they are all very small token payments.
I make most of my payments direct to creditors thru DD or standing order, apart from two creditors that use third party to collect money and pass on to the original creditors. This I think the mortgage lender is seeing as a DMP in place, although I didn’t organise this it was passed onto the third party to collect
All my payments are made each month however like I said most are just token payments
Sara (Debt Camel) says
Your credit record here is largely a red herring – most mortgage lenders will not be happy that you have debts you are only making token payments to, even if they do not show on your credit record. And the mortgage lender is likely to see payments arrangements as just the same as a DMP.
You can try to get a default added for the one currently showing as in a DMP, see the article above. But you also need to get all these debts settled!
Ray L says
Hi
Yes thanks
We had to goto the mortgage broker and explained the situation, there are a couple of mortgage lenders that are willing to give us a mortgage however we have to put a large deposit down, they are aware of our circumstances and just want proof of12 months continued payments without missing any, they wanted also the names of the third party companies
We have told them that we will pay off most of the creditors on completion, which we will, however can we make partial settlents or would we need to pay full on completion?
Thanks
Ray
Sara (Debt Camel) says
Only your mortgage broker can answer this – you need to know what the two specific mortgage lenders will want.
Brian says
I have a credit card and a loan with HSBC which were defaulted in Apr 2015.
In March 2014 my loan was already 6 payments behind according to my equifax credit file – i cannot see my credit card history as it was sold in Apr 2015.
In Apr 2014 I had an arrangement to Pay and had just entered a debt management program which of course was accepted. My current account was defaulted in the November of this year – is it wrong that HSBC did not default my credit card nor loan until Apr 2015?
The card went to a debt collector and the loan stayed with HSBC recoveries.
Sara (Debt Camel) says
When you were actually 6 months in arrears depends on how large the DMP payments were. If they were, say, half the normal amount, then you would not be “6 months behind” until you had been making reduced payments for 12 months.
Shelly says
Hi Sara,
Hoping you can kindly advise on this. I understand there is a limitation of 6 years after an account has been declared default for a creditor to register a CCJ but is there a limit as to when the creditor must report the account as defaulted in the first place? Can the creditor declare an account as defaulted many years in the future and then register a CCJ within another 6 years, or is there a cut-off point?
Many thanks
Sara (Debt Camel) says
I would rather talk about specific situations than very broad generalities. Can you say what you are worried about, who the original creditor was, what sort of debt it was, whether it is now owned by a debt collector and whether you have been making any payments to it?
Shelly says
Hi Sara,
Thanks for the quick reply.
I have been chased in the past for mobile phone payments. I no longer have any of the written correspondence after a couple of address moves but believe it started early 2012, after I had switched to another provider a few months earlier. I tried to resolve the situation in a call with the mobile phone company before I moved (arguing that my commitment period had ended and the phone was no longer in use) but they did not accept this and then sold the account to a debt collector group, to whom I have never sent any written correspondence or made payments to. It was this company I last heard from in early 2014 before moving address and, regrettably, overlooking the situation due to some bad advice. I have no idea if the account has since been sold on to anyone else. I do not have any defaults or CCJs listed on Experian, Equifax or Noddle. Can the debt collector still declare my account as defaulted at any time or would there have been a cut-off point? I have started browsing for houses to with my partner and I am very worried that a default/CCJ could appear after all this time and put a stop to mortgage applications. I’m also worried at how much the debt could have increased with any extra fees attached.
Many thanks
Sara (Debt Camel) says
This is a difficult decision for you.
The debt should be statute barred as you haven’t acknowledged in in over 6 years. (It is not a consumer credit act debt so the recent court case about default notices affecting statute barring is irrelevant.) so if there was a court case you should be able to defend it and win.
But it is possible that as the debt collector doesn’t know your address, the debt collector could go to court and get a CCJ without you even knowing. Which would be at best a complete pain and at worst could mean you loose a mortgage if it happens at exactly the wrong time.
So your options are to:
1) contact the debt collector and pay the debt
2) contact the debt collector and say the debt is now statute barred, say what your new address, and ask them to confirm they wil not take any legal action
3) to contact the debt collector and say the debt is statute barred but offer them £50 say in full and final settlement
4) to cross your fingers and hope you never hear from them before your house purchase , or that if you do the letters come to your current address so you can then pay them.
How large was the debt?
Shelly says
Thanks very much, Sara.
As you say it should be statute barred now, does that mean the account must be considered as having defaulted from the time of the first missed payment to the mobile company? Or can the debt collector still declare it as defaulted many years later if they have not already done so, thereby triggering the CCJ limitation period? I cannot recall receiving a letter re my account having defaulted so I am unclear when the clock would have begun or if there’s a chance it hasn’t yet.
I am very reluctant to contact the debt collector (who I gather could have sold on the account by this point). If I was to approach option 3 however, I would want to make sure the defaulted account date must be considered by law as being a long time ago i.e. when the mobile company still owned my account, hence why I query the above.
The debt was less than £200. Could this have now incurred interest fees and debt collector fees?
[reply 1 of 2]
Shelly says
What is the possibility of having a CCJ without knowing i.e. how likely is it to not appear on my credit files? Is it correct that I would be incurring £50 pm charges without knowing if the case? What would be the ultimate outcome of me not responding to a CCJ that I’m unaware of?
With the above in mind, I’ve been considering running a check via Trust Online but would anyone else be able to see that a search had been done on me? Are all CCJs 100% guaranteed to be listed here?
Sorry this is a long response. As you can tell, I’ve been agonising over this recently and have many questions! Advice from family is to leave well alone but I want to make sure I’m protected from bailiffs knocking or seizing my car and possessions etc. Your responses are very much appreciated.
[reply 2 of 2]
A says
Hi Sara
I have a query if you don’t mind, and it does relate to default dates. I have been looking into raising an unaffordable credit complaint with Very.co.uk. My balance was £3000 when I entered into a DMP in March 2015. It is now June and I still owe £859.00 despite paying between £60-100 per month for the last 5 years, I calculate I have paid atleast £3600 to them through the DMP. I have ended the DMP and intend to pay the remaining payments directly to Very. I was looked into raising an unaffordable credit complaint with them through Resolver. As it stands with a balance of over 859 remaining, my minimum payment is over 700 (90% of my balance), with arrears of 700+ and a take three payment due of over 700. Very have been adding continuous interest to my account for the last 5 years at a staggering 47.9% APR, which I understand is their right but has left me in such dire straights financially.
They have never defaulted me, so I am worried they will suddenly issue me with a default out of spite with a recent date once I put a complaint in. Would you advise me to wait until the debt is cleared before complaining? Can they default me once the account is settled?
As a side not do you think I have any chance with an unaffordable credit complaint? I did recently have success with a payday loan, but I hadn’t considered going through with one for a catalogue company.
Many Thanks
A
Sara (Debt Camel) says
I suggest you send very a complaint that they haven’t frozen interest in your DMP, see https://debtcamel.co.uk/creditor-wont-freeze-interest/.
Ask for a refund of the interest they have added. Take the complaint to the Financial Ombudsman if they refuse.
They are no more likely to add a default now than when the debt is settled. To be honest a default back in March 2015 is probably better for you as it will disappear completely in 2021. At the moment the payment arrangement markers will be on your credit record for 6 years after the DMP ends.
Affordability complaint – when did you open the account? how often did they raise your credit limit?
A says
Hi Sarah
Quick update. Very responded offering me a concilatory £142.50 for my trouble! I bounced the complaint to the Ombudsman in August and so far I am still awaiting a response from them.
Very haven’t had added a default – they have responded by deleting themselves entirely from my credit reports… I assume they are going to pop it all back on once the Ombudsman responds – perhaps with a default.
A says
Hi Sarah
Thanks for responding, I have been a long time reader of your blog but never plucked up the courage to post. Just before I started my DMP my credit limit was £3750 with Very. I had a very account in place since 2012 so in two years my credit limit was bumped for £250-3750! My debts started to snowball between 2013-2015.
With Very I had the option to buy now pay later on everything I purchased. Before I knew it I had a minimum payment of over £300 due, plus impending pay later purchases of £200 and £150 for ‘take three’ (subdivided purchase into 3 installments) Very are the main reason I am actually in the DMP. Whilst being on my DMP the interest they have charged me per month has varied from £60-100 per month. I have £857 left to pay so which i believe is this low is because my 3 credit cards dropped off my DMP a couple of years ago and the lions share of my DMP payment has been going to Very.
Do you think it would be better to try and recoup interest off them and not bother with the affordability? It was so easy to fall into debt with them. I have a good job but I never managed to cleared the bill off in full, I cant remember if I ever even got close.
I hope Very default me now! Arrangement to pay has already been there for 5 years. Another 6-7 years and that would be 11-12 years of my credit report destroyed by them. That is assuming I can clear this £857 some time soon. :(
Sara (Debt Camel) says
Well there is nothing to stop you making an affordabilty complaint as well as asking for a refund of the interest. Make sure your complaint clearly says you have to separate issues: you were given an unaffordable amount of credit before your DMP and in your DMOP Very refused to freze intere4st, unlike your other creditors,, prolonging the time you were in debt even though your DMP firm sent them details showing you coulkd not afford to pay more.
In practice if they offer you a refund of the interest in the DMP then you may think that’s a good enough offer to accept. But if they reject everything, then the Ombudsman can look at both complaints/
CU says
Sara,
I have a question regarding default dates and the following phrase in the National Debtline template letter dealing with the same
‘”…a firm must not attempt to recover a statute barred debt in England, Wales or Northern Ireland if the lender or owner has not been in contact with the customer during the limitation period.” 7.15.4
I am confused over the wording ‘lender or owner has not been in contact during the limitation period’ my question is, if the debt has been sold and a collection agency has sent sporadic fishing letters requesting payment (which have not been responded to) over a number of years does this count as ‘contact’. I ask as we have had a fresh flurry of letters about making payments, they are vague at present although a little intimidating. We don’t recognise the debt but it could potentially be a very old default of my partners. I am just trying to get my head round the statute barred process. Thanks in advance.
Suzy says
Hi Sara
I have just managed to get a default date changed -Backdated by 6 months
But 6 months prior the balance was less
My question by having the default date back dated would the balance also change ???
Steven says
Hi Sara,
I took out a payday loan back in 2013 and couldn’t afford to pay this back. I entered into a DMP and started to pay this back at £5 a month. I have kept this going and made my last payment this month. On review a default was never issued against this loan and has stayed on my credit report as an active loan. Now, from speaking to my mortgage advisor this is not a good thing as it looks like I’ve had a payday loan this year rather than me last taking one out in 2013. Should the lender have marked this as a default in my file in 2013? This surprisingly would leave me in a better position in applying for a mortgage.
Many Thanks
Sara (Debt Camel) says
Yes there should have been a default added in 2013. But a very recently paid default isn’t that great for a mortgage application… see https://debtcamel.co.uk/mortgage-recent-defaults/
Have you thought about whether you have a case to say the loan was unaffordable? See https://debtcamel.co.uk/payday-loan-refunds/. If you win that complaint you may be able to get all the negative marks removed from the debt.
Steven says
Thanks for the reply Sarah. I was more of the thinking that if they should have placed a default on the account in 2013 this would debt would disappear entirely as the 6 years will be up?
Peter Smith says
Hi, I have a question if I may
I have been paying through a debt management plan for many years and one of the creditors registered a default in 2016 because the monthly DMP payment was about 3 pound a month less than the company agreed too – I accrued 29 pound arrears so the default was registered
I’ve noticed that even though the account shows as defaulted, the company still records a missed payment every month – are they allowed to do this once the account has defaulted? It looks like iam being penalised twice as its showing a default and 50+ missed payments – iam still paying then via the DMP
Sara (Debt Camel) says
If there is a default date on the debt, it is usually marked as defaulted every month after that, not as missed payments.
Jane says
Hi Sara, I had three accounts with Barclaycard which are now with PRA. Accounts went into arrears in 2011/2012 and I have (by a stroke of luck) found default notices from Mercers for all three accounts dated July 2012. I’ve spoken to Barclaycard who have agreed to remove the accounts from my credit file and said they will inform PRA. How does this work, exactly? Will PRA act on the instructions from Barclaycard? I’m keeping hold of the default notices from Mercers as I’m expecting a battle with PRA. Can you explain the process please?
Kate Jenkins says
Hello
I have a DMP that started in Sept 2013 and all the defaults drop off my file either Oct 2019 or Jan 2020. However there is one that is stuck there until Oct 2020 . Should I call them and ask if hey can change it to Oct 2019 to be the same as the other debts on the plan?
Sara (Debt Camel) says
This debt, had you defaulted on it before the DMP started? What sort of debt is it?
Is the DMP still running?
Charlotte says
Hello,
I have recently applied for a mortgage and have been rejected by a lender due to adverse – checked my report and a default was registered on 28/02/14 and every month since then for a loan I acted as guarantor on for only £250 – it’s risen to £799. The person I acted as guarantor for I am no longer in contact with and they had paid everything but the last payment. At the time of the loan (2013) I called the lender and updated my new address however they had taken it down wrong by one letter and 1 number and I never received any correspondence. My question is now – do I pay it off or wait until February 2020 – will the default be wiped off from the first default on 28.02.14 or will it be the most recent (THIS MONTH) please help!
Sara (Debt Camel) says
“however they had taken it down wrong by one letter and 1 number and I never received any correspondence” how do you know this happened?
Charlotte says
On my credit report it shows the address incorrect x
Sara (Debt Camel) says
“will the default be wiped off from the first default on 28.02.14 or will it be the most recent (THIS MONTH) please help!” it will be deleted 6 years after the first defaukt date
“do I pay it off or wait until February 2020” the problem about waiting is the lender may sell your debt to a debt collector who will go to court for a CCJ.
Jon says
I have a default on my file of around 1000. It actually relates back to more than 10 years ago but as the original vendor only sold it on in 2015 it is only marked as defaulted effective 2015. Can I argue that as no payments were received after 2013 that the latest the default date should be marked is mid 2013 6 months after three last payment they received. It was for a credit card when I was a student.
Sara (Debt Camel) says
Yes there is a good case to argue that.
BUT doing this will wake up the debt collector who may try to argue the debt is not statute barred, things aren’t as clear cut as they used to be. Read https://debtcamel.co.uk/statute-barred-debt/ and talk to National debtline to see if they think you are safe to do this.
Jon says
To be fair I would rather pay the debt in full of I got it changed even by a few months. This debt has seriously hampered me for the last 10 years. It started as a 300 pounds credit card that was badly managed by myself as a student leading to the default some 15 years later with a balance of 1000. My current income and recent credit is exceptional so I’m at the stage where i really need to progress somehow past this. I really want to get a mortgage and I have an equity release from my parents at the tray and the buying power to easily afford a house but my credit rating is seemingly holding me back.
Alan says
Hi
I am from Scotland and had a debt dating May 2013. I hade never made payment or acknowledged this debt. This has always been ‘late payment’ on my credit file. This month it changed to ‘up-to-date’ and I have just yesterday received a call from a different debt agency trying to recover it.
Debt should be statute barred after five years and removed from credit file after six in Scotland.
Is this due to it never being updated to default status? I cannot have this change to default so need to know if I need to pay it to avoid this new company changing the status of debt or if it’s a case of contacting ordinal debt company and having them issue default date – which I believe is within six weeks of last payment/acknowledgment?
This is a pay day loan. It is only £201 so I can pay in full but it is 6 years old?
Please advise.
Sara (Debt Camel) says
I will ask a Scottish expert to comment on the statute barred and credit record question.
But did you have previous loans from this lender before this unpaid one? Who was the lender?
Alan McIntosh says
Hi Alan
There has recently been a court case in Scotland (and a similar one in England), that makes it clear that prescription only begins running after the lender puts the debt into default by serving a notice of default.
Unfortunately, you cannot make a Creditor serve a Notice of Default.
If you want to read the Scottish Case on it, I have a link to it here. (PRA Group v Macpherson – https://www.advicescotland.com/prescription-begins-running-on-default/)
Whether you want to deal with this new agency is up to you, but it appears they could argue that the Debt is not prescribed.
Jon says
Have an on your credit file what the default date is from the original company who have sold out to the debt collecting company.
The default date had to be the same. Unfortunately it looks like they have simply not defaulted the original debt. It is only statute barred 6 years from the official default date. There is only a guideline on when credit vendors are supposed to officially default the date. I am in a similar situation although I’ve almost run mine down. I am going to complain to the ICO but realistically I am not hopeful it will change anything. The credit vendors are in control of the date and the clock only starts when they let it.
Sara (Debt Camel) says
“It is only statute barred 6 years from the official default date.“
No that’s not right, statute barring is complicated but it is not tied to the default date on the credit record.
I agree the lenders are not all applying the rules in the same way, see https://debtcamel.co.uk/credit-records-scores-fit-for-purpose/
jon says
That’s interesting Sara, what is the official statute barring rule? Are there any resources we can read that may explain?
Sara (Debt Camel) says
here is my article on the subject https://debtcamel.co.uk/statute-barred-debt/
Jon says
Hi Sara,
This is slightly different to the debt appearing on your credit file and being statute barred though?
Also are you saying that the date starts from the letter they send issuing a default notice within 30 days or the actual date of the default 30 days after their letter?
Jon
Jane says
Hi, Barclaycard agreed to backdate defaults to my three accounts that have now been sold onto PRA group. They updates PRA with this information and the information was deleted from my credit files. The problem is, PRA have now opened three new accounts on my credit files and started reporting on them! Arghh so frustrating. I’ve contacted them to point out there should be no further reporting on these accounts but they just don’t get it. What can I do?
Sara (Debt Camel) says
tell PRA that Barclaycard have corrrected the default dates – give details – and ask PRA to do the same.
Shezza says
Hi Sara, you have given me advice before which I followed, so many thanks for that. I have now purchased a flat and moving in within the next couple of weeks. I need to sort out my debt now and have requested CCAs from all my creditors and 3 agencies indicated that the debt cannot be enforced but still owed. I am will to make a 5% settlement offer and if they decline then I will stop paying on my DMP, but was wondering what the wording of the letter should be. Do you have any advice on this as I want to be sure there is no comeback if they do find the CCAs? Many thanks for all your help
Sara (Debt Camel) says
When did you last make a payment to these old debts?
Shezza says
Hi Sara, I am on a DMP so make a small payment every month. It was defaulted more than 6 years ago so does not show on my credit report. Does this make a difference to whether I can offer. A 5% F&F? thanks so much
Sara (Debt Camel) says
If they accept your offer, you just need it in writing that it is in settlement of the outstanding debt.
Em says
Hi
I missed a payment yesterday for my home insurance for £22, I was sure there was money in the account as it showed there was on my mobile banking app, but I will chase that up separately. Today I received by email a default notice, giving me 14 days to pay before they took further action. I paid straight away and had an email to say the records are now updated and the issue resolved. What I want to know is wether or not this will appear on my credit file? I have an excellent credit record and will be devastated if a default goes on for 6 years for one missed payment by 24 hours. It didn’t say anything about reporting to CRAs. It’s an online company with no phone line and seemingly no way of emailing about non standard queries. Any advice gratefully received!
Sara (Debt Camel) says
I can’t imagine why a missed payment would be reported to CIFAS.
I would expect the worst that would happen is that you would get a late payment marker for one month, not a default.
Em says
I hope so, a section 87 notice feels very heavy handed. Thanks for your reply
MW says
Hi Sara,
In 2014 my girlfriend had a car loan with Santander, but the car blew up. She spoke with Santander who advised her to switch to making token payments, and that they would repossess the car and arrange a new payment plan with her. They failed to take the car, and never advised her of anything else, so she has been dutifully making payments ever since.
We saw a mortgage broker in August, who warned her there was an issue so we got the experien report and found that Santander marked her in default, but not until 2016.
She has spoken to Santander who accepted she should have been better advised and agreed to a full and final settlement some £1000 less than was outstanding. However she has the default marker for another two years. We asked them to look at this as we feel the default is unfair, and they have responded that everything on her file looks correct.
We still think this is unfair, but would accept a change of date to the date they advised her to reduce payments, as the default was inevitable from that point. This would see it come off her record under the six year rule in February next year, and we could resume mortgage applications after that.
Do we write to Santander explaining our case, should we go to the ombudsman, or are we stuck waiting? It seems she would have been better off just stopping payment in 2014. Surely that can’t be right?
Many thanks
Sara (Debt Camel) says
So she started making token payments in 2014?
What happened to the car, did she pay to have it repaired?
MW says
Yes, around February 2014. It was all part of the same agreement.
The company told her they were taking it back and it was no longer her problem. I think they later said they had failed in their first attempt to collect it from the garage, but there was no further communication, and she understood it to not be her car anymore.
Sara (Debt Camel) says
So the car is still sitting in her garage? It hasn’t been insured or taxed since then?
You said “Santander who accepted she should have been better advised and agreed to a full and final settlement some £1000 less than was outstanding. ” Can you say how much this settlement was? When she took the car finance at the start, it was for monthly payments of how much and for how long? And was there any large payment due at the end?
Dayle says
Hi could you please give me some advice
A account was opened in my name that I wasn’t aware of once I became aware of this I got in touch with the debt collector and was able to settle to account unaware it had been defaulted.
Is there any way I could get the default removed as I was unaware of the debt and it wasn’t my email address or account details on the original account?
Sara (Debt Camel) says
This is going to be tricky now – why did you pay the debt if was identity fraud?
Dayle says
It was taken out by my mother and I paid it thinking it would help resolve the issue
Sara (Debt Camel) says
Well unless you are prepared to make fraud report against your mother, I am afraid you are unlikely to get anywhere with this.
Dayle says
would there be any way to lessen the impact of the default
Sara (Debt Camel) says
No. It will disappear 6 years after the default date. I hope your mum is suitably sorry…
Dayle says
Thanks for your help
Shezza Anonymous says
Hi Sara, many thanks for good advice that you gave me a few months ago. I have now purchased a flat and moving into that in a couple of weeks. I also contacted my creditors and some of my debts came back as unenforceable so no longer paying those. Still on a DMP but for a smaller debt. My question: as I am moving house do I need to give my new address to the creditors where my debt was unenforceble?
thanks for your help
Sara (Debt Camel) says
Well I would… I think it’s easier to have an argument about a loan the creditor has said is unenforceable than find out after the event they went for a CCJ and you didn’t know as the papers went to your old address.
Shezza Anonymous says
lol :-)
didn’t think about that…thanks
Ricki says
Hi Sara
How I can remove an unfair Payment Arrangement placed by Eon on my credit file.
Eon supplied energy to my rented property. When I moved in I called them to pay monthly by direct debit. I also arranged to switch as Eon would not put me on cheaper tariffs unless I opted for a smart meter.
Once the switching completed, Eon sent me a final bill. I called again and asked to continue paying monthly by direct debit, rather than pay at once. The call agent offered me up to 20 months to pay, which I gladly took up as there was no interest or other charges to pay.
Shockingly, 6 weeks later my credit file shows Payment Arrangement (AP). I have no financial difficulties at all and never indicated to Eon that I needed help.
I immediately called Eon, paid the balance and raised a complaint by email.
Eon has not responded to my complaint for over a week now and I am worried they will be very difficult. I need the payment arrangement wiped off as it is not a true reflection of what transpired.
What’s the best route for me? Can I approach Ofgem or ICO if Eon does not resolve my complaint?
Ricki
Sara (Debt Camel) says
Legally the whole bill was due when you moved out and a final bill was issued. You can reasonably say though that you should have been warned that the payment arrangement would affect your credit record. You have done the right thing to complain to Eon. If Eon rejects your complaint, explain why you don’t think they are being fair and ask them to reconsider or supply you with a deadlock letter so you can go to the Energy Ombudsman: https://www.ombudsman-services.org/
Ricki says
Hi Sara
Just back to thank you so much for your tremendous support.
Eon was a nightmare to deal with. A lot of back and forth with the CEO’s office. Claimed they did not have the phone recording so could not verify my assertion. However they were prepared to give me £30 and an apology but not remove the unfair Arrangement to Pay. Asked for a deadlock letter but also told them I will be complaining to Ofgem for poor service, and the Information Commissioner’s Office for lack of transparency and unfair use of my data. Suddenly the removed the Arrangement to Pay marker on the same day, and offered the same £30 financial compensation which I accepted.
Its unbelievable how big companies can mess things up for no fault of your own.
You have no idea how much your website helps many ordinary people like me. Now my mortgage will go through as before this very unfortunate mishap.
Ricki
Sara (Debt Camel) says
Excellent!
james fitzgerald says
Just checking have creditor landmark , origionally defaulted on unsecured part ( was prev nram tgether mortgage) back in 2012. Just been token £1 since and nothing for last 18 months. Still showing arrears and appear to be not defaulting account. Can i insist are the obligated/ legally meant to have done this ? If so this should be off credit file.
Thanks
Sara (Debt Camel) says
is the unsecured part showing separately on your credit record from the secured loan?
James Fitzgerald says
Hi sarah it yes thanks for reply , see all your knowledgable advice elsewhere ,thank you.
Ricki says
HI Sara
Thank you so much for your help. Its means a lot in a very stressful situation.
Regards,
Wonder
Marc says
Hi Sara,
I had a debt with Barclaycard that went in to a DMP in 2010/2011. In 2015 this account somehow changed hands to Link financial, they have been reporting my payments on my credit file. I requested a CCA roughly about 6 weeks ago and they have written back stating the debt is unenforceable, which is good news. However for some reason Barclaycard had never issued a default notice, I called them recently to double check and thy said one has never been issued. Which would mean that Link financial could now do it? My aim for requesting my CCA was to be able to offer a F&F on this account, how does this fact of no default and it still being on my file affect my 5% offer?
Sara (Debt Camel) says
Go back to Barclaycard and ask them to add a default to your credit record back in 2011 – don’t ask them to issue a default Notice, that actually isn’t relevant for your credit record and it’s your credit record you want correcting. They often agree. Take a complaint to the Financial Ombudsman if they don’t.
McFadden says
Following advice i read on this page, i complained 1st to Morses doorstep lenders, and they dismissed it, then to the financial ombudsman, about unaffordable loans. 16 months it took all in and they finally gave a decision.
I had 12 loans in total with them, FOS said 1-5 were fine, but they shouldn’t have gave 6-12. All charges, interest, fees to be refunded. waiting on a cheque for £1200 right before Christmas.
Shaun McFadden says
Hello, i have a debt against my credit file showing default, but it took 19 months in arrears to record as default, if they had of defaulted between the 3-6 months, it would be dropping off my file 13/16 months earlier. why can some companies take so long to record it as default?
Cath says
This article was invaluable in helping me sort out the defaults on my credit file. I considered 4 to be wrong, and for a positive result with 2.. with Tesco who wouldn’t budge but I think their decision was right and they drop off by February 2020 anyway, they just didn’t look right to me. Tesco were very professional in their response and explained fully. One with Barclaycard was registered 13 months later than it should, and has now passed to Link financial. Link had been delaying their investigation for 5 months, one call to Barclaycard direct and it was sorted – default removed within a week. The final one was with Next which has now passed to Debt Managers who had me in an email loop of asking for my address All the time. I contacted Next Direct and at first they said I needed to contact Debt Managers but when I told them I thought they’d make a mistake citing ICO/FCA they emailed me back within 24 hours to reduce the default by 2 years. It was a bit of a slog, but I will not have 0 defaults on my file within 4 months. My biggest tip – go direct to the lender if your debt has been sold on!
Shezza says
Hi Sara
A few months ago, I received a letter from PRA advising my debt was unenforceable. I did send them a letter for a CCA. I am on a DMP so stopped paying that debt. Now PRA is contacting me for payment and want to get further information from me as to to why I am not recognising the debt. The called me today and was drilling me so I told them I had to go.
So, what can I do? Should I just ignore them?
thanks in advance for your help
Shezza
Sara (Debt Camel) says
The letter you received, did it say the debt was unenforceable?
Shezza says
Hi Sara
Yes, the letter said it was unenforceable. The caller said the same on the phone call, but started to drill me.
thanks
Shezza
Sara (Debt Camel) says
Then I suggest you say you are not paying as they have agreed the debt is unenforceable. Keep it simple!
Shezza says
ok, thanks Sara
I got really confused with the drilling, so appreciate the advice.
You give great advice on this forum, thank you
Ian says
Hello, I went into financial difficulty in 2013, argos defaulted me in 2015 but after complaining to the FOS in 2019 they told argos to change it to December 2013, after much wrangling they did this.
Upon checking my credit report at experian and Equifax today I see they have added an Argos default account in June 2019! How can this be, I have just emailed Equifax to complain and just sent an email to the CEO of argos and Sainsbury’s with an attachment of the letter argos sent saying they will put a default of December 2013.
Can you confirm that this is a mistake on Argos’s behalf and should not be adding a new default? Many thanks for any help.
Sarah says
Hi can I ask some advice please?
I have a debt management plan, I got myself in to debt with payday loans back in 2013, I have 2 paydays loans in my DMP, payday express & Uk I have been paying them monthly for the last 5 years. The debts will be 6 years old from end of December 2019, however on all credit reports, payday UK shows in closed account and settled in 2014, it has not been sold to another debt agency and there is no default and payday express have not issued a default notice at all, and they mark the account with late payment every month despite being in the DMP.
Do I still need to pay the payday UK if it’s shown as closed and the debt will be 6 years old at the end of the month?
What can I do about the late payment marks on the other account (didn’t realise it would be 6 years from date debt paid)
I have taken both these companies to ombudsman for irresponsible lending but unfortunately they went bust before my claim was looked at?
I’m really trying to build my credit score up, my debts are nearly gone but my score continues to be damaged by these payday loans.
Sara (Debt Camel) says
how many loans did you have from PDUK and PDE before these last loans?
what is the settlement date on PDUK?
Sarah says
I had 3 previous loans from PDE and 3 from PDU.
Settlement date on 26/02/2014
Funnily enough I’ve had 2 emails about each account today from a debt collections agency stating that the accounts had been transferred to them? I’m not sure why when I’ve consistently paid the accounts in DMP for the last 5 years
Sara (Debt Camel) says
Transferred for collection? or sold?
Sarah says
Transferred for collection not sold
Sara (Debt Camel) says
was it to CRS?
Sarah says
Yes! Credit resource solutions
Sara (Debt Camel) says
Ok someone else also had this today. I should just shrug, they are in your DMP and getting paid.
The debt with a settlement will go 6 years after that date. It should have had a settlement date as if hasn’t been settled but They may not Notice this unless you point it out.
For the other one , you can ask for a default date to be added.
Sarah says
I have just called payday express and they have refused to add a default date they said the information of late payment is correct as there is still an outstanding balance and they are not obligated to change it. What can I do now?
Sara (Debt Camel) says
Put it in writing as the article above suggests. If your loans are determined to be unaffordable then any negative information should be removed.
viva says
HI
SARA
I got j.j.b account 2008 , 2010 I got debt problems are started, lowell missused my credit files, today I went to complain , they put my credit file 2018 default, but credit file says only no default date , only show update date 2018, 12 creditors 2010 enter my credit files default , how lowell
say 2018 , I am complain because I am mentialy stress, I am not possible to do my normal life. I am thinking and walk I fall down yesterday.
I don’t want this life , money makers always disturb my family life, please advice me,, I am not ok, please
thanks
viva
Richard says
Hi Sara, I’m hoping you can help me with this.
I took out a loan with Payday Express in June 2016 and should have repaid the whole balance in July 2016. I never made any payments towards the loan and never contacted PDE to make any arrangements. I was contacted by BW Legal / PRAC about the loan a year ago and began making payments in early 2019. Therefore, using ICO rules, the default date should be approx October 2016.
However, my credit report shows this as being ‘6 months late’ and there is no default registered. I have contacted both PDE and BW Legal to have this rectified and both are refusing. PDE state no valid default notice was ever issued (it was) and BW essentially told me to f off until I wanted to settle the account.
What is the best way to have them update my credit report to reflect the reality of the situation?
Sara (Debt Camel) says
Send both PDE and BW a written complaint by email and say the case goes to the Financial Ombudsman in 8 weeks if they don’t add the default.
Richard says
Both BW and PDE are now refusing to engage with me – my complaint to PDE has been acknowledged but BW ignored it and then laughed at me on the phone saying it would take years for the Financial Ombudsman to even read the complaint. I also requested a copy of the CCA 12 weeks ago and BW are also ignoring that.
I have enough money to pay off the whole amount owed but will only do this if they add the correct default date. Is there any way I can communicate this to them in a way that protects me legally if I pay off the balance but they do not amend the default date?
A says
Hi Sarah
I have a couple of credit cards that were in a DMP but have since all been closed off, they were sold to debt management companies and I had arrangement to pay markers added to them. Should I have asked for a default to be added instead? Can I still ask for this?
If I had a default added to all of my credit cards in March 2015 – They would be dropping off in July 2021 at the latest – as it stands the accounts will be there for another 10 years as ‘settled’?
Would I have a good argument considering some of my accounts were defaulted at the time my DMP started and some of them were not?
Many thanks for any advice in advance.