If you have had problems making debt repayments, you may have had a “default” added to your credit record. The date this is added is important, because the debt will then be deleted from your credit record six years later, at which point your credit score will improve! If you have old defaults, with dates in 2011, they will be dropping off your records in 2017.
So what is “the right default date” and what can you to say to a creditor to get it corrected if it is wrong?
When should a default be added to a credit record?
The Information Commissioner’s Office (ICO) says in its Principles for the Reporting of Arrears, Arrangements and Defaults at Credit Reference Agencies:
“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.”
There are two special cases where there are exact rules about the default date:
- if you have had a CCJ registered against you, the default date must not be after the date of the CCJ;
- if you have entered insolvency (gone bankrupt, set up and IVA or had a Debt Relief Order) then the default dates of all unsecured debts included in the insolvency must not be later than the date of entering the insolvency – this is covered in more detail in How to Repair Your Credit File After Bankruptcy, IVA or DRO.
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.
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, unless certain exceptions apply.
Why overdrafts are tricky
For most loans and credit cards the ICO 3-6 month provisions apply – the most 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 can often be later than you would think.
Only the first default date for a debt matters
There can only be one default date for a debt. Your credit file will normally show a default marker each month afterwards until the debt is settled – but here it is the first default date that matters. The whole debt will disappear six years after the first default.
If a debt is sold to a debt collector, then the new creditor should use the same default date as the original creditor did.
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 2012 and set up an arrangement to pay in June 2012”,
- “I never received the December 2009 bill as I had moved house”,
- “I only made token payments from 2011” 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.”
- “I would like you to add a default date in May 2012 in accordance with the ICO rules,”
- “According to the ICO rules the default date of September 2014 is too late and I would like you to change it to May 2011.”
- “[name of original lender] added a default in 2009, this has since dropped off my credit record. You should be using that same date, so please correct it.”
Don’t bother to complain to the credit reference agency. They are only recording what the lender has told them.
If you haven’t had your complaint to the lender resolved within 8 weeks, put in a complaint to the Information Commissioner or if you are complaining about the default date on a secured loan after bankruptcy, put in a complaint to the Financial Ombudsman.
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, you shouldn’t contact the lender at all. If you contact them to ask them to change the date then this will acknowledge the debt and “reset the clock”. See Questions about Statute barred debt for more information but also read No calls all letters about a debt for years which looks at this situation.
If the debt is already statute barred (are you absolutely sure?) then you can 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 your DMP is still continuing. With no default, the record will not go away until six years after it is marked as settled/satisfied in some way. So in some cases it can be better to have a default very early on in a debt management plan rather than not have one – see this article on DMPs and Credit Ratings for some examples.
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!
But you can’t stop paying debts that have dropped off
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 be 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 (Experian, Equifax, Call Credit).
But 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 files. If you would like more information about CCJs, have a look at Debt Camel’s articles about them.
How does a DMP affect your credit rating?
Is your debt statute barred?
Answers to credit record FAQs
Karen says
Hi, i was in default on my mortgage account in 2009 which led the mortgage company to take me to court for posession on 24/05/2010. The court imposed a payment schedule and did not award posession to the mortgage company. I have paid in accordance with the payment schedule ever since. My Experian credit record continues to show my dept as being in arrears by more than 6 months for every month. The record also shows a debt arrangement date in 2014.
Should i write to the mortgage company requesring them to mark the file with a default date of 24/5/2010? If they do this, will the defaults for the recent months disappear from my Experian record?
If they refuse to set a default date of 24/05/2010, what other action could i take?
Sara (Debt Camel) says
“Will the defaults for the recent months” has a default date been added? When is it?
Have the arrears been cleared?
Karen says
Hi, sorry, there are no further defaults for the recent months – all payments have been made in full on time. There is no default date shown on the record, only an arrangement dat which is in 2014 – even though I had been paying according to a Court enforced arrangement since 2010. The arrears have not been cleared.
Sara (Debt Camel) says
In that case it’s unlikley they will agree to add a default. As the article above says, mortgages and secured loans are treated differently to unsecured loans.
This makes sense when you think what the purpose of credit records is. If you had defaulted on am unsecured loan more than 6 years ago, most lenders wouldn’t care, it’s ancient history, so it’s good for a default to be recorded and for it to drop off your credit file. But for you to still have mortgage arrears does matter to any lenders considering lending to you now.
ian doyle says
Hi,
I would like to write a letter to a creditor who has kept my account in status 6 for 5 years. I have now finished a debt management plan and am trying to repair my credit file.
Does anybody have a letter template for this? I have no idea how to write a letter as it all seems confusing to me.
Sara (Debt Camel) says
The article above gives some examples – there isn’t one template as everyone’s case can be different. In you case you want to say that your creditor has recorded 6 months in arrears since [dd/mm/yy] and that is the date you think a default should have been added as per the ICO guidelines.
ian says
Thanks again Sara,
Below is a draft letter, english has never been my strong point. Does anybody have any pointers?
Lloyds Bank
Customer Services
BX1 1LT
Complaint
Dear Sir/Ma’am,
Account Number :
Sort Code :
Upon checking my Equifax and Callcredit credit reports it come to my attention that there is an error in the information regarding my Lloyds Bank current account and the debt relating to it.
In September 2010 I entered into a Debt Management Plan via stepchange due to financial difficulties which arised from having a very ill new born baby. Due to this I made small token payments to my account to try and take my account out of my overdraft.
Due to the interest being charged I eventually went over my overdraft limit in December 2012 where I would be over my limit until the account was settled in May 2016.
My complaint to this end is that my account was in arrears/missed payment status on my credit file for 38 months which under the ICO guidelines is far beyond the date it should have been defaulted. My credit file show arrears status 6 in June 2013 which under the ICO guidelines should of been the date of default.
I therefore require the default that has been placed on my account to be corrected to the date that it should have been enforced under the ICO guidelines with immediate effect. I look forward to confirmation that this has been done within 14 days, or I shall start further proceedings against Lloyds Bank, which will include complaints being made to the Information Commisioner.
Sara (Debt Camel) says
was your overdraft included in your DMP?
ian says
yes it was included but they never frozen interest rates and 3 years after setting up DMP the account went over my overdraft limit.
Sara (Debt Camel) says
Well in that case i would be inclined to complain about 2 things. First that they never froze interest, despite being notified by StepChange that you were in a DMP and that this caused you to go over your overdraft limit. Ask for a refund of interest added after your DMP started. Second that they should have added a default date when your account was maerked as 6 months behind. And say you will take the complaint to the Financial Ombudsman, not the ICO (because of the failure to freeze interest.)
ian says
Thanks again Sara,
This is a great site. very helpfull!
Yes sounds good, I will add those bits to the letter.
Below is a copy of the balances, I had a £300 overdraft and they eventually defaulted in June 16 just before I was about to be within my limit.
Jan Feb Mar Apr May Jun Jul Aug Sept Oct Nov Dec
2016 333 332 328 324 315 0
2015 340 340 340 339 338 338 337 337 336 335 335 334
2014 344 344 344 344 343 343 343 342 342 342 341 341
2013 307 312 318 323 328 334 340 345 345 345 345 344
2012 256 260 264 268 272 275 280 284 288 293 296 302
T Pross says
Hi sara
I entered a DMP in 2009, and was issued with a few defaults by credit card companies. These were all issues immediately and as a result have now dropped off my credit file. Only 2 defaults remain, one with lloyds and the other with idem. These were issued in 2013 and won’t drop off until 2019. I wrote to lloyds asking them to issue the default for when I entered into my DMP but they wrote back saying they believe the date is correct. Could I use some of the points in this letter to go back and get them to change to 2011 as default date?
Sara (Debt Camel) says
Default dates on an overdraft are tricky. But by the time they have marked you account as being 6 months in arrears , that should be a default.
Ken says
Hi Sara
Once again this website has proven to be a gem! I have been in a DMP since 2013 and had always thought that I would be condemned for 6yrs after I settled each debt! Didnt realise if there was a default it begins from the first default…
Anyway I have 4-5 debts with cards\loans most have been defaulted mid 2013-early 2014 which is about right, however one debt (With Home Retail Group- Argos Card) shows as DM. Which I assume stands for Debt Management….is this any different to AP?
I would be tempted to ask this to be changed to Default but am not sure….are they required to change it to default ? I’m also afraid of stirring the pot as such and them taking me off the DMP as they are not legally required to oblige…
I would hope to have these debts clear in 18months or so one way or the other..
Any help appreciated!
Sara (Debt Camel) says
DM is the same as AP. If you ask for the default to be corrected, there is no reason for them to “take you off the DMP”. Indeed if they suddenlt started adding interest again, I would suggest complaining to the Finanical Ombudsman as this would not be “Treating Customers Fairly”.
It’s good the end is in sight. Have you checked to see if there is any PPI to reclaim, on these or odler debts, that could speed this up some more? See https://debtcamel.co.uk/reclaim-ppi-dmp/
Ken says
Thanks Sara
I am sure I didnt take PPI out on any of my loans, but I did get some recourse back from payday loans thanks to this site which helped improve matters!
Denise MacQueen says
Hi
I entered a Debt Arrangement Scheme (DAS) Scotland in October 2011. From this I now have 3 defaults my credit file. M&S and RBS have marked default from the date I entered this scheme (27.10.11) however MBNA have marked the default April 2012.
I have just had a baby and we are desperately hoping to be able to get a mortgage once the defaults have gone and were hoping for the end of this year. Is there anything I can do to get MBNS to change the date to 27.10.11?
Many thanks
Sara (Debt Camel) says
Are the debts repaid?
Denise MacQueen says
Around 95% of the balance was paid as the other 5% was fees to the payment distributor however the remaining balance is effectively written off.
This is the information on the Equifx entry:
Status Settled
Current Balance £ 0
Default / Delinquent Balance £ 4,232
Default Date 30/04/2012
Previous Statement Balance £ 388
PARTIAL SETTLEMENT Payment received as a full and final settlement although the payment would not fully clear the balance.
Sara (Debt Camel) says
Unless you had defaulted to MBNA before the start of your DAS, they can argue that the April 12 default date is in line with the ICO’s guideleines that a default should be when you are 3-6 months in arrears.
There are high street lenders that will give you a mortgage if all your defaults are over 3 years old AND they have been settled for a year. Have you talked to a mortgage broker?
Denise MacQueen says
Thank you for your reply. I thought that might be the case however from this source http://www.scoronline.co.uk/sites/default/files/high_level_prinicples_document_final.pdf I wondered if I could quote the following:
“Relationship of defaults to CCJs, decrees, bankruptcies, IVAs and similar
arrangements
A default can be registered for debts which the lender has also tried to recover through a
CCJ or decree.
In normal circumstances lenders will be notified when the debt that is owed to them is to be
included in an insolvency e.g. bankruptcy, IVA or similar and should be marked as included
in that by filing a default as soon as is practical.
The default date must be consistent with that of the CCJ/bankruptcy or IVA; therefore a
default should be filed as being no later than the date of the insolvency order. In
circumstances where the lender is not immediately aware, the default can be filed at that
point in time. If evidence of the insolvency date is provided, the default date recorded at the
CRA will be aligned. ”
Would the DAS fall under the “similar arrangements”?
That’s great to hear about the high street lenders. I have no idea where to start with a mortgage broker. Are most online?
Sara (Debt Camel) says
I’m not an expert in Scottish debt solutions, but I don’t think a DAS would be classified as a form of insolvency. You could talk to the DAS firm to confirm this.
You can search for a local broker here https://www.unbiased.co.uk/. London and County are a fee-free, whole of market adviser.
Denise MacQueen says
Just a quick update. I emailed the CEO of MBNA to complain and quoted ICO guidelines and got a reply from the executive complaints department. The result is they are going to change the default date to October 2011! Delighted. Thanks for your help
Sara (Debt Camel) says
Excellent. MBNA have a reputation for being difficult, so i am glad you have got this sorted.
Susan says
Can you give the email you used and roughly what you said to them??? I have been arguing with MBNA for months now about a default on my account that was put on my credit file 2.5 years after I started a payment arrangement with them and they have refused to do anything about it as they say I was never in arrears because I stuck to my arrangement. Didn’t stop them selling my account to a debt collection agency though who then defaulted me when I refused to increase my arranged monthly payment. I have had to open a complaint with the ombudsman as they have issued a final response
Denise MacQueen says
Hi
The email address is ian.odoherty@bankofamerica.com
The Executive Complaints email is cao_executive_complaints@bankofamerica.com
This is what I sent:
I wish to complain about the date a default has been registered on my credit file for the above debt. This debt was included in a Debt Arrangement Scheme (DAS) which was completed in full in December 2014. The scheme started on 27th October 2011 and you were advised of this in advance that reduced payments would be made. However, a default was not applied until April 2012 which was 6 months after the scheme commenced.
I request that you amend the default date on my credit file to the 27th October 2011 as my other creditors have in accordance with the ICO rules about registering a default. I feel it is very unfair to have applied it 6 months after the scheme commenced and I am been punished unfairly in trying to move on from this situation financially.
I greatly appreciate your time to deal with my complaint.
Susan says
Great, thank you
Well done on getting yours resolved!
Gemma says
Hi Sara,
I went in to DMP with 3 accounts in 2011 have since paid them all off, 2 showed as defaulted in 2012 after the 3-6 months AP period in line with ICO guidance for the time. However one now with Idem Servicing has never defaulted and shows delinquent even for last month when I paid it off! They say it didn’t match their criteria to go to default but from reading the ICO 2007 guidance applicable at the time it suggests a token payment whilst in a DMP should result in a default (I was making a £19 payment instead of £123) have been trying to sort this for 6 months with no replies to my emails have sent complaint email as per your article. Only getting information from Customer Service who emails that I’ve sent but no one actually responds to me. Next step is ICO complaint but do you think I’m within my rights to have this changed?
Sara (Debt Camel) says
Yes! It would have been better to send the request to Idem’s data controller (find the address here https://ico.org.uk/about-the-ico/what-we-do/register-of-data-controllers/) but after so long I suggest you go straight to the FInancial Ombudsman and also ask for compensation because of the poor way they have ignored your complaint. It won’t be a lot of money, but why not!
L says
Hello Sara,
Just wanted to thank you for all the information and help.
I had entered an agreement with Natwest in 2010 due to not being able to repay my loan or overdraft, I never received a letter or anything regarding a default, however have since learned that if I would have had a default registered it would be coming off my credit report. So after a few back and fourths with Natwest and going through their complaints procedure I was informed that Natwest should have applied a default and will do as of 24/04/2011…This was December 2016 they agreed it and I am still awaiting the correction on my credit report.
I was checking my credit report and realised I had a settled account with Natwest (this was a current account with an overdraft) however the information on there was that I was again in an arrangement and no default submitted, the settlement was 2015. So again this is having an impact on my credit score.
I have spoken to Natwest who have given me £100 compensation as this has been going on since December 2016, with many phone calls.
They have assured me that they will apply the correct default date of 24/04/2011 to both accounts within the next week.
Do I just take their word and go from here, await the default and keep checking my credit score and hope it all disappears come 24/04/2011…
I am at a loss now, not sure what I can do and even now I am cautious that I am doing the correct thing.
I have always paid my arrangement and never missed a payment, however finances are better now and I am hoping to get a mortgage soon and put all this behind me.
Can I have your thoughts please?
Sara (Debt Camel) says
At this point as they have agreed to do what you have asked for and given you a date by which they will have sorted it, there isn’t anything useful you can do except wait and check they do what they have promised.
I am not clear from what you have written if you have repaid the whole of the loan? Even when it isn’t showing on your credit record you need to clear this before you apply for a mortgage.
L says
I am just conscious that whilst they have agreed I have spoken to numerous people at Natwest and this issue of the correct default date still has not been rectified since December 2016.
I am nearly in a postion that I could pay back the full amount owing on the load, however just dubious until I agree that the default date is correct and I can pay the load off and move forward.
This was a mistake made at 19 years old when I was young, dumb and taken advantage of all this money!!
So in your opinion it would be best to pay the loan off in full and again just wait another week to see if they rectify the default date? Assuming then in April 2017 both entries on my credit file will drop off.
Thank you for replying so quickly, there is hardly anyone who will give me a straight answer and I am only going from all this info on here.
Sara (Debt Camel) says
I think this isn’t a bargaining situation – you correct my record and I’ll pay you. I suggest repaying the debt now. This loan needs to have been cleared before you apply for a mortgage and the earlier the better.
Stevie says
After recently checking my credit file I have seen three defaults that have been applied to my credit file. One of them is from a creditor in 2011. I fell into arrears with them and on my credit file it was marked in arrears for around a year and a half off before this was sold on to a different company. (Who I deal with now and make regular payments too).
In January 2014 (a year after the debt was sold on and almost 3 years after it fell into arrears) the original creditor have placed a default on to my account. I have never received a letter from them to let me know a default was been applied. Is the original creditor aloud to do this given it was left on my file as in arrears for 2 and half years and had been sold on a year making three and a half years in total before been applied?
Regarding the other two I also never received any letter to let me know defaults were been applied or what I could do to stop it .
Thank you
Sara (Debt Camel) says
I suggest you ask the first creditor to correct the default date as the article above suggests.
Regarding the other two, a creditor doesn’t have to inform you before adding a default, although many see it is good practice to do this. If the defaukt dates look right , there is probably little you can do.
Vicki says
This is quite detailed as been going on for a while now so lots to digest. I have won an application for judgement of a CCJ to be set a side but it has now turned a different corner and really need some help with this.
I have a statute barred debt with HFC that had been sold to Bryan Carter solicitors and then on to Lowell Solicitors. The debt was just over £6000.
I opened the account in 2006 and defaulted in 2008/2009 due to personal reasons. I did ignore this debt over the years and made no contact or acknowledged the debt. [edited]
However as of this morning I checked my account and they have changed the default date to 19.02.2017 and the amount to £8124? How are they allowed to do this? I rang Lowell and the solicitor involved was ‘unavailable’ and have put a complaint in verbally and asked why this has happened? They said they would get back to me. What can I do know and how do I go about getting this removed permanently it’s making me ill! I’m trying to plan my future and it’s just made it worse. Please help me.
Sara (Debt Camel) says
I have edited a very long section of your comment.
My reaction is that if you haven’t heard back from them promptly – within a couple of days – I suggest you should put a full complaint in in writing to Lowell’s saying:
– they have never provided you with the documentation you have asked for prior to 2016 which you believe would prove the debt is statute barred
– that even if the debt wasn’t statute barred, you never made any payments to it for more than 5 years, so the ICO guidance says that a default should have been added in 2009/10
– that their solictors incorrectly applied for a CCJ when you had made an arrangement to pay and getting this set aside has been stressful and prolonged
– that as there has been a default date of 12/11/2011 already on the debt, there is no justification whatsoever in them changing this to be a date in 2017
– that you have asked them to correct this and they haven’t replied to you.
– you have been very unfairly treated by them over a prolonged period.
– ask for the default to be backdated to 2010 immediately and for compensation of £200 for stress and time it has taken you to resolve this otherwise you will be complaining to the finanical ombudsman.
I don’t normally suggest asking for compensation in these default cases, as it will often mean a firm decides to fight the issue and not just correct the default. Also the Ombudsman usually regards a firm correcting the error as being a reasonable outcome. But your case seems to me to warrant some compensation.
You can of course change the £200 figure to be anything you want, but £100-£250 is the usual sort of decision where an Ombudsman does award a payment for trouble and upset.
Sarah says
Hi there
I have been paying into a debt management plan since 2012 for credit card debts although they are. It showing as defaulted but in arrears pretty much every month since I took out the debt plan. This means I will need to wait another 6 years before I can apply for a mortgage, is there anyway I can get them to mark these as defaulted ?
Sara (Debt Camel) says
You can ask for a default date to be added – who is the lender?
Sarah says
There’s a few it seems only one that I included as part of the debt management plan is marked as default which will drop off next year. Cap quest, is the main one, am I right in thinking when you enter a debt plan all credit agreements within that should be defaulted the date the plan was taken out?
Sara (Debt Camel) says
It’s not that simple for DMPs, see https://debtcamel.co.uk/dmp-credit-rating/. But for long DMPs, yes a default should probably have been added within 6 months of the DMP starting, or ealier if you were already in arrears with that creditor.
Gordon Harby says
Good morning Sara
I require some advice please. I took a loan with a major high street bank in 2008. In May 2009 I was unable to keep up the repayments so entered an arrangement to pay a reduced amount. In 2010 they sold the debt to a recovery agency with whom I kept the repayment plan with. In 2015 due to being unemployed and falling out with the collection agency I stopped paying the reduced amount altogether and again contacted the bank to say why and the issues I was having with their collection agency. 5 days ago the bank have marked my credit file as defaulted!! Before that they had been marking it AR for the first 6 months then as 6 since late 2009.
My question is do I have the right to ask then to correct the default date and if so to what date?
Any advice would be greatly appreciated and I thank you in advance for your time.
Sara (Debt Camel) says
I assume the bank still owns the debt and has just been using a debt collector to collect it.it sounds as though you have been paying a small amount monthly, so you should ask for a default date to be corrected to 2010.
Layla says
I have LOWELL PORTFOLIO I LTD on my credit report defaulting two small amounts of £14 (default May 2013 – account started 2011) and £27 (default Feb 2015 – account started Apr 2009) from Orange and T-Mobile. My issue is that if I do owe for these two bills (not entirely convinced I do), it will only be the last payment as I closed both of these (12 – 18 month) contracts and therefore the default date is well beyond what is reasonable for at least the second one. This is causing catastrophic problems and for sake of £41! I am also looking to get a mortgage soon too. As I am not confident about what I owe, if I do and when… what is my best plan of action? HELP PLEASE!
Sara (Debt Camel) says
If you don’t think you owe the money you should tell Lowell that you dispute the debt and ask them to produce a statement of account showing how it arose. If you can then show this is wrong and that you don’t owe the money the debt – and the default – should disappear from your credi record.
But if you think you may well owe the money – perhaps you cancelled a DD too army and didn’t pay the last bill? – then for the younger debt the best think to do is pay the debts asap. The default date doesn’t sound very wrong this one.
For the older debt you need to pay it and ask for the default date to b cor ectoderm as the article above says. There is a chance this debt is statute barred so you wouldn’t have to pay it, it would depend how long the contract was probably. But if you are trying to get a mortgage sorted out I’m not sure you need the hassle of arguing over such a small amount of money?
Layla says
Many thanks for your reply. The first debt was a year contract. The second was an 18 month contract …So first one was done a year after and the second one four and a half years after. You have confirmed what I thought though – just pay the amounts and request that they correct the dates accordingly. I will update you if I make progress with it. Layla
David says
Hi,
I had a Pay Day loan which I never paid back in 2011, from a company whom now doesn’t exists.
I seems they have sold the debt to a debt collections company. Who have now served me with a default 5 years after the loan was actually defaulted on. So may 2016 is the default date, surely this isn’t correct and the date must be at the time of the default?
I am happy to pay the debt in full as my circumstances are different now and the debt they want is only £150 (some was paid back to the original company in 2011). But how they have gone about it to me seems very unprofessional.
Can you give me some advice please on what to do, thanks.
Sara (Debt Camel) says
The default date should be between 3 and 6 months after you first missed a payment. Ask the debt collector to correct it.
If you borrowed a lot from payday lenders, you may want to consider if the loans were “unaffordable”, see https://debtcamel.co.uk/payday-loan-refunds/.
David says
Hi Sara,
I have already asked for this and they point blank refused! What would you suggest my next step to be? They say a default was never served, so when the took over the debt last yeah they served it then.
I find that to be a load of rubbish, but they are refusing to alter it. Now it’s causeing me 6 years of problems when it should really expire next year. I thought to be honest that the old company had already given me a default, but they had not.
Dave
Elizabeth Elton says
Hi,
I have just received a letter regarding a loan that I was unable to continue paying five years ago because of being off work with stress. I contacted the bank and agreed to pay a monthly small amount and have continued to do so giving income and expenditure every year. The letter states they have recently identified an issue with some statements they have sent not meeting consumer credit act. They are asking if I would like them to add a notice of correction. In this case the NOC would reflect the fact that they will not take any legal action to recover the debt. If on reading this you do not wish for us to add a NOC we will take no further action. Any advise on what I should do with this as I’m not sure myself.
Thanks Lize
Sara (Debt Camel) says
Hi Lize,
there are two aspects here. First paying the debt – if they say they can’t enforce it, then you can probably stop paying anything as they can’t take you to court.
Second the effect on your credit record – has a default been added? If so, when?
Elizabeth says
Hi Sara,
I have been through all of my paperwork and can’t find anything to suggest the default has been added but it also might have.
Kind regards
Lize
Sara (Debt Camel) says
OK in that case you should probably ask them to add a default date back when you stopped paying them 5 years ago.
Lize says
Thanks for your advise Sara I will do just that. Should I continue to pay until they respond ?
Sara (Debt Camel) says
If they have said they can’t enforce the debt, there is no reason to pay them anything… This probably feels likel a scary thing to do so I suggest you phone National Debtline 0808 808 4000 and discuss this. You can tell them exactly what the bank’s letter to you said (in case you didn’t understand it correctly) and they can advise on your options.
Douglas says
Hi,
I require some advice please. In March 2011 I found myself riddled in debt due to a bad choice of investment. My decision at the time was to go through a DMP(another bad choice) and, due to a fortunate change in circumstances I was able to settle the debts the following year. I accept that I would be receiveing defaults on my credit file however, all but one of my creditors have issued default dates during the summer of 2011 and the other creditor (OPUS) decided to issue a credit default a day after the debt was settled in Oct 2012 therefore resulting in me having to wait another year for it to be removed from my credit file, while the others are due to be removed in the next few months. I have spoken to the DMP company and they have told me that the creditors can decide whenever they want to issue a default. I have spoken to the creditors and have escalated my case to the financial ombudsman but unfortunatley, my request to have the default back dated was rejected and I do not know what to do next.
Thanks for listening Doug
Sara (Debt Camel) says
Well it’s only one debt and it’s only another year. Is this a huge problem? Are you trying to get a mortgage?
Douglas says
Yes, I am trying to get a mortgage.
Sara (Debt Camel) says
A mortgage at a reasonable rate should be possible – assuming you haven’t had any credit record problems since then, you don’t have too much debt and you meet the affordability criteria. When all the defaults are gone except for this one, talk to a broker, there are high street lenders who don’t mind old defaults that have been settled a long time ago. You need to make sure you aren’t applying to a lender who accepted a partial,settlement but that would apply even after the debts are gone from your records.
Paul says
Hi
I had a debt management plan set up back in 2011 to pay off my creditors, at the time it was a credit card account and 2 overdrafts I held with my bank accounts.
I payed a set amount to my debt management company every month starting February of 2012, every payment was on time and they agreed repayments with the creditors and paid them in due course.
Recently I have been denied a mortgage as my credit report shows that my account with my creditors has been in default.
The credit card account shows in my report that payments were arranged and being made late but after 11 months, payments were on time until the settlement date.
The 2 current accounts however show that I was in my credit limit for upto 4 months and then a arrangement to pay and payments being made late until the accounts both defaulted in April 2014. Even though it shows in my credit report that balance was dropping on a monthly basis.
I assume the bank must have closed the accounts as my credit report shows my limit history going from say £200 to £0 a few months after the plan started.
I was never made aware by my creditors that my account was in arrears or that they were defaulting my account.
I have spoken to debt advice companies and even my creditors over the phone who have advised me that these accounts shouldn’t have been defaulted as I was making the payments on time and it was my debt management company communicating with them.
I am speaking with this company later today to see how this has happened as I was advised when taking them on, that this debt management plan would not affect my credit report in such a negative way.
What is the likelihood of the creditor agreeing to have these defaults removed? Or will I have better chance if having the default moved to earlier date?
Sara (Debt Camel) says
It’s normal for debts to be defaulted in a DMP, see https://debtcamel.co.uk/dmp-credit-rating/. You have no chance of the creditors agreeing to remove them. And for overdrafts where there is no set monthly repayment you may find it hard to get them backdated several years.
AND even if you got all the defaults removed you would probably still be unable to get a mortgage. It’s not just what your credit score shows that matters, it’s the fact that you are in debt management that lenders understandably won’t like… see https://debtcamel.co.uk/dmp-mortgage/. A practical way forward would be to get all the debts repaid asap, even if this means using some of your deposit to do this. Then wait for at least a year – adding to your deposit again – and then look for a mortgage.
mark says
Hi Sara, I went into a multi creditor DMP Aug 2010 (with Payplan), made every payment on time etc etc and thankfully settled every creditor in full in summer 2014. All debts were unsecured credit cards, loans and overdrafts. However, 6 years from starting DMP i still have some noise on my credit file as not all creditors applied default when I started the DMP. I have been writing letters to challenge their approach and some have been agreeable and moved the default date back to Aug 2010 (First Direct & Halifax). MBNA however are proving a challenge… They accepted the offer from Payplan in Aug 2010 but only applied default in Nov 2011, from my perspective they have not followed ICO guidelines regarding the time frame for applying a default; do you agree ? Alternatively if they want to argue they only took the decision to regard the payment i was offering as being ‘token’ in summer 2011, are they negligent in not making this decision back in summer 2010 when they had the same amount of information available (tenure of repayment plan etc)? Either way I would appreciate your opinion. Thanks, Steve
Sara (Debt Camel) says
I agree with you. MBNA can be very difficult about this – it’s hard to see why! Have you put in a formal written complaint?
mark says
I did put in a formal complaint, and they sticking to their guns. I raised the matter with the financial ombudsman but they have initially ruled in favour of MBNA. I am challenging both MBNA and ombudsman again but running out of options and just getting more and more frustrated. Also, I raised the matter with the ICO but not heard back from them. I literally don’t know what to do next!!! Got any suggestions on what else i can do? (I’d love to get the Daily Mail involved but not sure i want my name in lights on this topic!!!)
Sara (Debt Camel) says
Make a nuisance of yourself on Twitter and Facebook? Email the CEO ian.odoherty@bankofamerica.com?
susan says
i emailed the CEO and they were going to look at my complaint again but as soon as they found out the financial ombudsman was involved they pulled down the shutters and said they would abide by the ombudsmans decision but the exec complaints wouldn’t get involved now as it was a regulatory matter
susan says
I have a slightly different situation in that I had a payment arrangement directly with MBNA which they never defaulted. They then sold my account on with no warning after 2 years of payments and this led to a default. I raised a complaint asking them to place the default on from the start of my payment arrangement but they refused. I took it to the ombudsman and the investigator sided with MBNA. I then escalated it to an ombudsman who agreed that it was reasonable to expect MBNA to have defaulted me like all my other creditors but also agreed that they hadn’t done anything wrong and he couldn’t force them to add the default. I appealed his decision and he discussed it with fellow ombudsman but they all sided with MBNA and my complaint has been closed and I still have a default dated late 2012 that should have been 2010. I’m gutted.
Sonia says
I had a secured loan over 10 years ago where we walked away from our responsibilities. Young and with our head in the clouds. For the last 10 years the account has been bought by idem and they are updating our credit files with late payments as they have been for 10 years. Not sure what to do. They don’t chase the debt just send out statements every month.
Sara (Debt Camel) says
Hi Sonia,
the first thing you need to establish is if this debt is statute barred, see https://debtcamel.co.uk/statute-barred-debt/. I suggest you phone National Debtline 0808 808 4000 and discuss this with them. If it isn’t statute barred then you should probably avoid talking to idem about adding a default date as you do not want to “reset the statute barred clock”. National Debtline will be able to explain your options.
Vijay says
I had an Aqua Credit Card (Bank of Scotland) that was registered on my credit report as a default on 13 October 2011. However, I found a full record of my account and notice that my last payment on this account was 01/21/2011 and that Aqua didn’t register it as a default (from what I can see) until 13 October 2011 (which is alot longer than 3-6 months suggested by the ICO). It was sold to a 3rd party collector and they also registered the 13 Oct 11 date. Can I get them to change it to 04/21/11? Was it legal for Aqua to have delayed reporting the default in order to inflate the final amount (and to add on about £600 in charges and interest–which I am still paying off to the 3rd party collector)?
Also, I noticed that it states clearly in my signed agreement for this Aqua card (Bank of Scotland) that there was to be no repayment cover or card care yet throughout the history of the account Aqua did in fact charge me £10 per month for “Repayment Coverage” (until 04/21/2011 which is 3 months after the date the last payment was made on 01/21/2011). Do I file a PPI claim with Aqua or Bank of Scotland and do I tell the 3rd party collector about all of this?
Or should I wait until this all drops off my credit report on 10/13/2017 and then try and claim money back? Thanks for your help.
Sara (Debt Camel) says
Well it’s 9 months, that’s hardly a lot longer than 6 months. It’s up to you if you think it’s worth arguing to try to get the default date changed.
BUT the default date has nothing to do with whether a creditor is adding interest and charges. These can still be added after a default, so the default was not delayed for this reason and getting it moved earlier won’t get the interest and charges reduced.
Put in a PPI complaint to Aqua – they will forward it to BoS if necessary. No reason not to do this now! No reason to tell the debt collector about it. NB complaint yourself don’t go through a claims firm because it’s possible a refund will be used to reduce your balance to the debt collector, not be paid to you. Which would then leave you owing the claims firm money.
When was the card first taken out?
Vijay says
Hi Sara, Thanks so much for your advice. The card was taken out in February 2009. The Aqua agreement says “This agreement is between [me] and the Bank of Scotland, The Mound, Edinburgh”.
swathy says
hi I have a secured personal loan from 2012. but from July 2013 I had financial problems so I was just making regular mortgage payment but could not afford to pay secured personal loan it went to arrears all these years now from Jan 2017 I started paying my arrears payments it should be paid off by end of this year. at the movement it appears on credit rating website as arrears.
After settled arrears will it come off credit file. or stay on the credit record. if it effect credit file now I would like to know until which year does my credit rating effect.
Sara (Debt Camel) says
After you have repaid the arrears, your account should start to be marked as up to date with no arrears. The arrears then become less significant as they get older but will continue to affect your credit score, probably for another 6 years.
Natasha says
Hi, not sure if this is the right post to write on but i need some advice.
I had a loan out in 2010 and never made a repayment and never heard anything about it after the general you havent paid letters from the company i have recently moved house and now lowell have sent me a letter saying they will be trying to take me court if i dont pay within 14 days i have checked my credit file and this shows “Account
LOWELL PORTFOLIO I LTD
Type
Communications
Account started
02/10/2010
Current Status
Default / Ended
Credit Limit
–
Balance
£849.00 credit in use
Entry code
C5
Account settled
12/02/2012” for the debt they have wrote to me about. I have never had any contact since i took the loan out which is 02/10/2010 until now and i cant even remember what the debt is for. So is my loan statute barred because i never made a repayment from 2010 or not?? Im confused about the account settled date??
Sara (Debt Camel) says
I suggest you talk to national Debtline 0808 808 4000 who can help you look at the details and your options.
Ross Burgis says
Hi Sara
I had an account dating back to 6/11/1998 with Lloyds TSB. I didn’t realise I had the account until last year (as I was on 13 when it was opened) when I started with my credit report and tried to get on top of things. To then find out it had been defaulting since Feb 2012 (only with an opening balance of £69) ever since until last year until 30/9/2016 when I agreed a partial settlement with a credit agency on their behalf.
Going forward to get this removed from my file as I never received any communication about this account over the years what are my best options? Would it be automatically removed off my credit file 6 years on from the first default date of feb 2012 or when the account was settled in Sep 2016 or would I need to contact them directly to have them to write to the credit agencies so that they removed this. Any help greatly appreciated.
Kind Regards
Ross
Sara (Debt Camel) says
It will be deleted in Feb 2018, 6 years from the default date.
Ross Burgis says
Thanks for the reply. :)
Pamela says
Hi, I currently have a debt with shop direct that was opened in 2005, with no signed credit agreement. It was passed to lowells who closed it. I have a default on my credit report for 26/06/2013, but the account was in arrears February 2007 and then I started paying instalments in June 2007 but then stopped in June 2013 as advised by national debt line cause no signed credit agreement.
Anyway Iv contacted shop direct to ask them to change the default date and for statements of account which I’ve received and in the letter they state ‘ there is no signed credit agreement so have provided a blank copy of our latest one and also ,The latest case law in relation to the enforceability of credit agreements has made clear that unforcebility does not mean that the rights of the parties under a credit agreement were never acquired or are extinguished ‘. And in relation to a copy of default notice we can confirm we are unable to provide this and not required to do so. I can also note that the account was in arrears prior to this, however whilst this is true any repayment plan can delay this.
(As you can see by dates the default dates are clearly wrong)
What does this mean? Can they get a ccj?
Even in the letter Iv received today there is two default dates, what should I do now?
Sara (Debt Camel) says
National Debtline will have told you that as they can’t produce the CCA agreement, they can’t get a CCJ, which is why they said you should stop paying the debt. The debt will disappear from your credit record in June 2019.
You can send your complaint to the ICO as they aren’t sticking to the ICO’s 3-6 month in arrears guidelines as the article above says. If you do, make sure that you are complaining that the account was not marked in arrears when it was 3-6 months in arrears. Don’t talk about them not having provided a default notice or the fact they can’t produce the CCA agreement – neither of those is relevant to a default date on your credit record.
Alternatively (and it may be worth trying this first) try making a nuisance of yourself on twitter (@shopdirect) and emailing nick.mcbrien@shopdirect.com with your complaint.
Pam says
Am I asking for the default to be taken back to 3-6 in arrears or the first default date 23/01/2012 which they have clearly written in this letter, but then on my credit report it says 26/6/2013.
Sara (Debt Camel) says
oh I would go for the earlier one – 3-6 months in arrears. You can always fall back to the 23/01/12 date.
Natalie says
I entered into a DMP in 2013 . Last year one of my creditors sold my debt to a collection agency and per my credit report the collection agency has marked the default as 2016 .
I have rang both the original creditor and the debt company and both of them say that it wasn’t them that registered the default and that it must be the other company.
I keep ringing them but it doesn’t seem to go any further . I want to dispute the date of the default and have it marked back to a date 6 months after I started my DMP but how can I when both companies deny putting a default on the account.
I have inspected my credit file and it seems that the original creditor has been marking my account as green when I was in my DMP even though I was paying reduced payments . Surely they should have been marking it in arrears and issued the default within 6 months of me entering the DMP.
I am trying to arrange a mortgage as I have enough equity in my house now to pay everything off and close my DMP bit obviously can’t with the default being registered as 2016.
Sara (Debt Camel) says
Is there a default showing on the debt under the original creditor’s name?
Obviously, you want to get this sorted, but I will point out that getting the default backdated to 2013 will still leave you with a mortgage headache as you will have defaulted debts showing as still open and in a DMP when you apply for a mortgage… The rule of thumb here is that you may get a reasonable mortgage offer if your defaulted debts are (a) over 3 years old AND (b) have been settled for more than a year.
Natalie says
No there isn’t a default on the original debt it looks like it’s just been applied from the date that it was sold onto the collection agency.
Sara (Debt Camel) says
If there is no default date on the original debt then it must have been added by the DCA. Who was the original creditor?
Natalie says
It was Barclaycard. I have rang both Barclaycard and the DCA and both of them say it wasn’t us that out it on it must havr been the other company
Sara (Debt Camel) says
What are you asking them to do, backdate it or delete it?
Natalie says
Im happy for them to do either but how can I ask them to do it when they deny putting it on there in the first place – even though I have told them that it’s under there name on my credit file. Would I have grounds to get it backdated
Sara (Debt Camel) says
Well it doesn’t seem to meet the 3-6 months in arrears ICO guidelines.
I suggest you put in “mirror” complaints to each in writing. Telling them that the other one denies they added the default date and you want it backdated – if you do. If neither does this, then put in a complaint to the financial ombudsman after 8 weeks against both of them, attaching both of their refusals.
But I repeat what I said earlier. You are unlikely to be able to remortgage because your DMP has not yet ended. So you may not get the end result you want.
caisie says
Hi,
Looking for a little bit of advice I have just received a letter from BW Legal about 2 payday loans I stupidly took out in 2013 (I am happy to contact them and put in place a repayment plan). I am just a little concerned regarding my credit report as I am trying to build this back up.
When I look on my credit report these 2 debts say satisfied 01.01.17 which is when I am presuming the debt was bought by the collection agency. The default date on these go back to 2014 – if I contact the debt collection agency will this open as a new debt with a 2017 date? Which would then set my credit report back by 3 years.
Thank you for any advice
Sara (Debt Camel) says
BW Legal will be adding a debt in their name to your credit record which should have a default date that was the same as the debt they have bought, so back in 2014.
Had you had other payday loans from this lender before these two defaulted loans? If you did, you may want to consider if you can ask for a refund of the interest you paid. See https://debtcamel.co.uk/payday-loan-refunds/ for details. if you do this, tell BW Legal you are disputing the debt with the payday lender. If you win this complaint, the defaults may be removed.
caisie says
Thank you for your reply. No I hadn’t had nay previous loans from the 2 companies.
I will contact BW legal and arrange payment for the 2 loans knowing that the default date will still be in 2014.
Thank you
Caisie says
Sorry I also have another issue I also had a doorstep loan with provident and fell behind on payment with this – it was settled 2 month ago. However when I check this on my credit file from August 2014 this was marked as 6 month late then 3 month and the beginning of this year up to been settled.
There is no default on there reading the article it says home credit can be different to other loans. Is there anyway I could get a default put on this so it would be earlier than settled date
Sara (Debt Camel) says
That looks as though you were gradually paying off the arrears – if that is right and it never got to more than 6 months in arrears, your credit record may be right?
Caisie says
I was making as and when payments but it stayed at 6 months late from august 2014 right up until January 2017 as the loan was a 52 week loan (taken out in December 13) this would have been more than 6 months in arrears. Is that correct?
Marion says
..just a question: in 2007 I took out a minor loan from a cash loan store. Minor being under 500. It went unpaid as I had moved to another country and eventually forgot about it. The last 3 months a debt collection agency has been calling non stop and just sent me a letter stating I need to pay them or they will take me to court or they will put it on my credit record. It is 10 years old and I have never spoken to the collection agency nor have I acknowledged the debt in any way. Can they still do that? Put it on my record 10 years later?
Pat says
Just want to say thanks so much for this useful article. Armed with your information I challenged the Halifax to change a default date. They agreed and awarded me £250 compensation .
Without this advice I wouldn’t even have been aware of when defaults should be put into place.
Thanks again
Suzie says
Hi there could someone help me ….
If there was a hfc agreement made in 2007 and last payment was 2008 but default notice wasn’t till Dec 2011 can they still try to reclaim the debt or can I go for statue barred?!
Thanks
Sara (Debt Camel) says
Have you had a Claim Form or recent contact with them or a debt collector? And what sort of debt is this – a loan? an overdraft?
Suzie says
No I’ve received a court letter only to which I have put on there I know nothing about the debt which is true I have no idea what the debt is over when I rung company bwlaw they said it was a credit agreement with PC world from my memory I’ve never bought anything on hp from them !
Sara (Debt Camel) says
So you have three possible reasons to defend the debt:
– the simple “it’s not mine” where your witness statement can say that you have no recollection of ever buying anything on HP from Currys
– you can ask them to produce a Consumer Credit Act agreement for the account, if they can’t the debt is unenforceable
– and statute barring.
In defending cases it is usually best to include all reasons. For you it is essential that you request the CCA agreement and enter a full defence. Contact National Debtline about this tomorrow, this is urgent. I cannot give you advice on handling a court case, they are the experts in this. Contact details here: https://debtcamel.co.uk/more-information/where-to-get-help/
Suzie says
Will try the above thank you very much
Cally says
Hi :)
I’ve used your website a lot over the last year and been successful on getting a few payday loans refunded. I’m now combing my credit report to make sure any default dates are correct. I fell into serious arrears with a lloyds tsb overdraft in early 2012, to the point I stupidly stopped paying. The default wasn’t put on my file until 2014 which I’ve established is incorrect, as my arrears started much earlier, but my question is who do I contact? Lloyds tsb who the original debt was with? Or will the debt collection company (Cabot I believe) be able to amend it?
Thanks in advance all xxx
Sara (Debt Camel) says
Contact Lloyds to request the date is moved to be earlier. But as the article above says, it can be hard to establish what the date should be .
Cally says
Thanks Sara! I am going to attempt to contact them today.
Many thanks xx
Lou says
Hi Sara,
I have been on a DMP for over 4 years now (since April 2013) and I recently had one of my creditors default me for an old debt which has impacted on me quite substantially. Whilst I am not seeking credit (I’ve been burned and am more determined to resolve debts/ new leaf and all) it is simple things such as being declined for a sim only contract, and being forced to go on the more expensive option of pay as you go. So I wrote to this creditor (HSBC) and complained to them as they defaulted me in January 2017 (many, many years beyond when I went onto a dmp/ went into arrears). They failed to reply to first letter, next one was sent as a complaint, its been 7 weeks since complaint sent and I phoned to check it had been received and they confirmed it had and would take another several weeks to reply!” I have just sent a fuming letter to them today saying it was not good enough as my initial letter sent in February and it is now JUNE! I am finding it very hard to get them to co-operate/ respond and I think perhaps it may be worth getting in touch with the ICO as you suggest in your article. Not sure if I should wait for their reply, just feeling incredibly impatient now!
Lou says
After re-reading through ‘when should I be defaulted’ I am a bit nervous now that HSBC are not likely to move my default. This debt was an overdraft that was on an agreed payment via the debt management plan (since April 2013). So in a way they acknowledged date of arrears, but in another it is an overdraft and is not subject the the 3-6 month rules. Any advice on whether you think they are liable to change it and I have a complaint to issue to the ICO? Thank you. x
Sara (Debt Camel) says
The problem with overdrafts comes when you just don’t do anything with the account for a year – how can the bank tell if you are in difficulty or you just aren’t using it? Someone that went abroad for 6 months could be pretty cross if they came back to find their bank had defaulted their overdraft. I think being on a DMP is clear sign that you are in trouble and on that basis you should ask for a default to be added, assuming your DMP payments weren’t large. If the overdraft was £1900 and you were paying them £150 a month, it’s better to not have a default added usually, but if you were only paying them £20 then a default is much better.
As they seem to be messing you around by ignoring your first letter then delaying, I would be inclined to take the case to the Financial Ombudsman if they don’t sort it out – then might even get a small amount of compensation.
NB you need to know there is a certain random element in these cases – it can’t be guaranteed that you will win one, but you do have a good basis for trying.
Lou says
Thank you Sara for your reply. Well the payments are pro-rata based between creditors, I think HSBC get in the region of £11 per month for the debt (debt with the overdraft was about £1000 is now £665). They have always agreed (in writing) to partial payments and been in correspondence with Payplan (our DMP providers).
I never knew if was the FOS who would provide assistance with this, so thank you for clarifying. I will seek their support with the issue, just worried HSBC will retaliate by refusing to accept DMP payments. But at the same time their default date purely unfair. Payplan advised they may be seeking to sell the debt, which is why they are now taking action with the defaults and delaying in response. So it’s all up in the air with theories, as you say… about as grounded as walking on water.
Sara (Debt Camel) says
“just worried HSBC will retaliate by refusing to accept DMP payments” no they won’t. Bank creditors may be difficult sometimes but they are not pointlessly vindictive. Not something to worry about.
Laura Brown says
Hello,
I am currently in a DMP. It started in August 2011. I have recently been trying to clean up my credit score, however my big negative factor is that the main creditor I am paying back has recorded this on my credit file as a late payment every month since the DMP. I feel this is very unfair as I pay this on time every month and have never missed a payment. When I contacted them they said it was due to the account being in arrears (which i understand it would be) however it seems unfair as other creditors defaulted my account when entering a DMP so these will obviously drop off this year. I am going to be in a position to pay off this debt in full but it won’t help my chances of getting a mortgage in future as they said it will now stay on file from the date I settle.
Any advice would be great Thank You!
Sara (Debt Camel) says
Who is the creditor?
Laura Brown says
Hi Sara
The creditor is NRAM originally northern rock.
Sara (Debt Camel) says
Assuming this is an unsecured loan from them, just write to them as the article above suggests. If it is arrears on your mortgage, that isn’t going to work.
Laura Brown says
It is in the loan part not the mortgage. ThNk you Sara
Matt Burley says
Good morning Sara,
I am currently coming to the end of my 6 year DMP (Yay!)
I have been checking my credit score and have found an issue with some default dates on my account and could do with a bit of advice please.
I started my debt journey in 2011 and have been with StepChange direct ever since. I have never missed a payment and now only have 2 more payments to go before I am debt free.
The issue is I had 3 different debts with Natwest bank, I had a loan, an overdraft and a credit card. The DMP started 2011 and I informed them of this then, in writing and started paying them back via Stepchange.
The issue is there is 3 different default dates on my credit report, Credit card start date is 14/06/2011, the Overdraft is 30/04/2013 and the Loan is 31/07/15.
Should these date not all be the same?
I have read all the information on your site and it appears that they all should have started around the same time.
Not sure where to go from here as it looks like it’s quite tricky to get dates changed on defaults.
Any help would be very much appreciated.
Matt.
Sara (Debt Camel) says
Congrats on finishing your DMP! I would expect NatWest to be reasonable about this, I suggest you write to them as this article suggests.
Matt Burley says
Thanks Sara,
I will get in contact with them and see what happens!
Thanks for your help.
Matt.
Hari says
Hi Sara
First of all a great informative website, many thanks for your time, effort and help!
I had a CC debt with Barclaycard which I couldn’t keep up minimum payments with and few months with no payments. I was making a token payment of £5 but they sold the debt to Link Financial in Aug 11 with no default on credit file. I made some payments until Link started getting aggressive, defaulted my file in Aug 12 and took me to court for CCJ. To stop the CCJ, I borrowed the money from family and paid it off.
The default put on by Link I feel is incorrect as I can’t remember receiving any documents. Where do I stand with this? Are they able to remove the default as gesture of goodwill as it’s fully settled or provide proof?
Also when BC had the debt, I didn’t pay the minimum amount for 8 month prior to it being sold, with 4 months with no payment and 4 months paying £5. Can the default be back dated to start of none minimum payment with BC and default removed from Link as I can’t be defaulted twice on a debt?
Please advise regarding best option and next step to take. I need the default to be removed or dropped off before Aug 18 as I need to apply for a loan.
Many thanks
Sara (Debt Camel) says
I suggest complaining to Barclaycard, asking them to add a default date before the debt was sold as you were 3-6 months in arrears by then. If they do this, link will have to change the default date on their debt.
Hari says
Thanks Sara.
As the Barclaycard file will drop off on 18th Aug I do not have much time. Should I use two pronged attack – write to Link for evidence of default and kindly request they remove the default as gesture goodwill as the account has been fully settled and also complain to Barclaycard and hopefully one of them will oblige!
Also is there a template letter for complaint to Barclaycard?
Thanks
Sara (Debt Camel) says
I think you are wasting your time asking for Link to remove the default as a good will gesture, but that’s up to you. But you can ask them to backdate the default because it doesn’t comply with the ICO’s rules.
No template letter because there would be way too many options in it for all the different types of circumstances most of which are irrelevant for you, but the article above looks at the sorts of things that could be said. It’s not a hard letter to pull together.
Hari says
oh ok…. would Link backdate the default to when I stopped paying Barclaycard before they took over the debt? Do I need to send Link any evidence like my credit report or will they check with Barclaycard?
Thanks
Sara (Debt Camel) says
Link can see your credit report. Personally I would ask BC to add a default. If that fails, ask Link to backdate.
Hari says
Wow!! Just spent over an hour on the phone with Barclaycard and they have agreed that they should have applied a default on my file so now as a quicker process they are directly requesting Link to back date the default to July 11 which is when my account went to the recovery dept. This means that the default and the account will be off my file next month.
Many thanks to you Sara and for having this website. Fantastic!!