A default badly damages your credit score, so how long will it stay there?
That depends on what the default date is on your credit record.
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 that 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. So a debt with a default date in May 2016 will drop off your credit record in May 2022.
This means that the longer ago a default date is, the better because it will disappear sooner.
If you can get a creditor to change a default date from June 2019 to April 2017, the debt will disappear more than two years earlier.
So this article looks at what the default date should be.
Contents
When should a default date be added to a credit record?
SCOR, the industry forum that handles credit reporting, says :
As a general guide, [a default] may occur when you are 3 months in arrears, and normally by the time you are 6 months in arrears.
There are exceptions to this which may result in a default being recorded at a later stage, such as secured or long term loans e.g. mortgages, or if the product operates in a more flexible way e.g. current accounts, student loans, home credit.
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 standard 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 or asked for an arrangement to repay it (for example in a debt management plan) or included the overdraft 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 which tell you how to correct these problems after insolvency:
- 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 until the debt is settled. That looks dreadful on your credit reports! 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 for later months. 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 2015 and set up an arrangement to pay in June 2015”,
- “I only made token payments from 2012”
- “This debt was included in my debt management plan with Stepchange in March 2017” 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 2015 in accordance with the ICO rules.”
- “According to the ICO rules the default date of September 2017 is too late and I would like you to change it to May 2014.”
- “the other creditors in my debt management plan added defaults in 2014, they have 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, send it to the Financial Ombudsman.
Here is an example of an Ombudsman decision telling Nationwide to backdate a default date.
Be careful – 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 default 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.
Important – 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!
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.
Your credit score improves when a defaulted debt disappears, but the debt still legally exist. See Do I have to pay a debt that isn’t on my credit record? for more details.
A credit record default is NOT the same as a “Default Notice”
This article has looked at when a creditor marks your debt as “in default” with one of the credit reference agencies.
Confusingly, the word “default” is also used in the term “Default Notice”. Under the Consumer Credit Act, a lender has to send you a Default Notice before taking you to court over an unpaid consumer credit debt such as a loan or a credit card. 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 possible CCJs, not credit records.
How much will my credit score change if…
FAQs on statute barred debt
When can you get a default deleted?
Katie says
I have been working hard to repay my debts and improve my credit score. I had a debt with very in 2012 but it has been sold to a debt management company. I have been making the payments to the debt management company and the debt it nearly cleared. My query is with my credit report. The original debt was on my credit ref, then the debt management companys appeared on there too. The original one from very has been removed now, but the default date with them is different to the original debt. Stating that I defaulted with them in 2014. Is this allowed? Is the default date not from the original default with ‘Very’. As I have been clearing my debts this has affected my credit score as it looks like a new defaulted debt. Or are they implying I have defaulted with them? If so is that allowed?
Sara (Debt Camel) says
Hi Katie, this isn’t right – the default date on the new record should be the same as the one on the previous record. You should complain to the lender as I describe in this article. NB here the “lender” is the debt company that now owns your debts, not the original lender. If they don’t correct it, complain to the Financial Ombudsman.
Tony says
Hi,Trying to find a answer to a issue I have.
Been in a debt management plan for four years, 8 in total after a previous dmp company went bust taking 8 thousand pounds of money I had paid in to them.
One of the company’s (cap one) should have fell off my credit file but they just keep changing default date, is this legal?
Sara (Debt Camel) says
Hi Tony, a creditor shouldn’t change a default date unless it is wrong. If you think the date showing now is wrong, then complain first to Cap One then to the ICO as it says in this article.
Brett says
Hi. I entered into a DMP about three years ago but I’m now managing my own debts.
Three of my creditors registered a default back in 2011 or 2012, shortly before my DMP began. On checking my credit file, those defaults are still being registered month after month even though I’ve been in a DMP or had an arrangement to pay and haven’t missed any monthly payments.
My question is: if it took me another three years to pay off the debts, for instance, would the default disappear from my file six years after it was first registered or six years after my final payment?
Sara (Debt Camel) says
Hi Brett – the defaults will disappear 6 years from the default date, which is the first default on the record.
Phil says
Hi, I had a debt with Welcome finance that went into default October 2008. It was recorded as a default on my credit file in January 2009 under Welcome Finance. They sold my debt to MKDP LLP who have added another default date under them on 01/01/2010. Is this allowed or should this debt have been written off on my credit file by now?
Sara (Debt Camel) says
Hi Phil, the default date should have been the same as on the original debt. You could put in a complaint as this article suggests.
James says
Hi, I ended up in financial difficulties in late 2008 which forced me opt for debt management to take control of my debts . My account went arrears with four of creditors in Feb 2009, three of my creditors issued default notice before July 09. I have paid off all my debts and all defaults are registered settled on credit file, and two are already off my credit file and third one is due to come out by the end of this month .
However HSBC have issued default notice in Oct 2010 (account was in arrears from Feb 2009) which means I have to wait for another year. I would like know whether I have any grounds to complain to HSBC to amend default date to July 2009? Please advise as I want to apply for Mortgage by the end of this year as this default will make it impossible to get a mortgage.
Sara (Debt Camel) says
Hi James, it sounds as though you have a good reason to ask HSBC to correct the default date so it is earlier. You may find these articles https://debtcamel.co.uk/dmp-mortgage/ and https://debtcamel.co.uk/mortgage-with-debts/ interesting. With only one default 5 years ago and no remaining debt you may be able to get a mortgage if you have a good deposit and income, but it will be easier without that default.
James says
Thanks Sara. I have registered a complaint with HSBC (loan account/unsecured)on 6th June 2015, and as requested I have provided copy of my credit report(18/06/2015). I have emailed them on few occasions, and I get a standard response appropriate team member will contact me with the update- which hasn’t happened so far.
HSBC sold this debt to Moorgate in 2012, and they have sent me a letter stating they can’t be any help as default was applied before the loan got transferred.
How long do I have wait before lodging an official complaint with relevant authorities, and who can help me if I get a negative response from HSBC.
Regards
Sara (Debt Camel) says
As this article says, you can complain to either the ICO or the Financial Ombudsman, and you should allow 8 weeks from your complaint to the lender.
Steven says
Hi,
I was wondering if you think I would have a case for requesting a retrospective change to a credit account, I have with EON, they originally were marking my account green which I noticed when I requested a credit report, also I noted a outstanding balance so called to ring them which they then updated the report to reflect a late payment 6 marker on my credit file for 5 years, I have tried to settle the account with them, however they say the debt has been passed to a third party and will not provide me with the details of said third party. I was wondering whether I would be stuck with 5 years of late payments or whether I can request for a default to be applied for when I first went to 6 months late.
Sara (Debt Camel) says
Hi Steven, that sounds like a good case for asking for a default date to be applied. You could also put in a formal written complaint to them that they will not tell you who they have sold the debt to…
Dave says
Hi
I have a default with QuickQuid dated August 2012. There was nothing on my credit file regarding this until it was sold in April 2014 to PRA GROUP. They then registered the default and I subsequently paid the debt off.
Is there anything I can do regarding this as there was nearly a 2 year gap between default and it showing on my file?
Thanks
Dave
Sara (Debt Camel) says
Hi Dave, yes, you can ask PRA group to correct the default date as it says in this article. If they say they can’t, ask Quick Quid to add a correct default date – PRA group should then correct theirs.
Andy says
I’ve been on a DMP with step change for 5yrs or so. Most of my defaulted debt has dropped off but 4 defaulted debts remain and are due to expire early 2016. I still owe 17k on my DPM but have come into some money (13k) I was planning to pay of those 4 default debts offering F+F but reading your articles would it be better to wait for them to drop off before settling?
Another question if I may. Do settled/satisfied debts with defaults drop off at the “Date of default” or the date they were settled/Satisfied?
Thanks in Advance!
Sara (Debt Camel) says
Hi Andy, the longer you wait, the less creditors will usually settle for … but there is no reason why waiting until the debts drop off your credit file will make that much difference. I would try to settle them now, starting at something like 30% offer? More about F&Fs here https://debtcamel.co.uk/debt-options/less-common/full-final/. Settled/satisfied debts drop off 6 years from the default date.
David says
I was on a DMP and made my final payment after 8 years in October and now have no debts. I am trying to save as much money as possible to have at least £10,000 by the end of next year. I have recently checked by credit score for the first time and can see that two accounts that were defaulted in 2011. Two things, do these stay as defaults until 6 years from the last payment, or from the original date of the default?
This may be only a dream, but is there going to be a point at which I might be able to get a mortgage. I do have a right to buy option on my flat, but obviously have my financial history weighing down on me. The other factor is I am in my mid 40s.
Sara (Debt Camel) says
Hi David, the defaulted debts will disappear 6 years from the original default date – you may have a case that the default dates should be earlier as this article discusses. You might find the following useful: https://debtcamel.co.uk/dmp-mortgage/.
Becky says
Hello,
I have been contacted by a debt collector about a dect I cannot remember, and so I have not admitted to it and they have put a pause on it while they and I investigate. The default date on the debt is the 26/04/2010, however if i had taken out this loan, the last payment date I could have physically made would have been in around the 20th September 2009, as this type of debt is a pay weekly to someone who collects from your door. Why is the default date on this 6 months later, shouldnt it be three months later?
Sara (Debt Camel) says
Hi Becky, the ICO rules say a creditor should register a default when the account is between 3 and 6 months in arrears, so the date on this debt isn’t wrong.
Wayne says
Hi. Sorry to comment on an old case here but this is very similar including dates around the issue i am facing. I went into arrears on my Barclays Credit card in Nov 2009, my last payment was 03/10/09. I am applying for a mortgage at the moment which is being refused based on this default still showing on my Credit file. From what has been said above the date the account should have been defaulted should be 03/04/10 is that correct?
Barclay’s are saying its their policy to issue a Default Notice 3 months after it goes into arrears. They issued this on 09/02/10. on the 9/03/10 they closed my account saying as no payment plan has been made they are registering this with the credit reference agencies. They also have said it is their policy to wait until 7 months after before this is registered as being in Default, this should still place this as in default on 03/05/10. The credit file is showing the Default date as being 30/06/10 as far as i can see this is between 2-3 months longer than they should be quoting. Are the ICO Rules only guidelines or should Barclay’s be adhering to them? Do i have a case to claim for compensation due to being refused a mortgage on incorrect information showing on my Credit File? I am contacting them now making a complaint but i fear they will take too long to amend this or drag their feet for another month until it is removed from my credit file anyway.
Sara (Debt Camel) says
Realistically the default will have dropped off before you get a resolution of this complaint. I would be surprised if you can get any compensation for this. It is why I always encourage people to look at their credit files and try to resolve issues 6-12 monthsd before applying for a mortgage.
Wayne says
Just to update. Barclays called this morning and said due to the age of this and the fact I had correct paperwork they are prepared to alter this today :)
Sara (Debt Camel) says
Excellent, I am delighted to be proved wrong!
Emma says
Hi
I have a CCJ recorded on my credit file (back in 2013) for a Hire Purchase account where my insurance company have not paid out when my car was stolen. My query is that on my credit file the actual credit account sat on my report states up to date however there is no default date on the account at all even though it is later shown on my credit report as a CCJ and I also make monthly repayments (much lower than the original repayment amount) which were agreed by the court. Should my actual account at least have a default date to it? From what has been stated above it looks as though it would almost be better to have a default date on the account because at least after the 6 years it will then be removed from my file??
Many thanks
Sara (Debt Camel) says
Hi Emma, if the account is showing as up to date with no AP or missed payments, then that is better than having a default on it! A default is only good if it gets rid of bad marks showing on the account. A default will also not affect the CCJ – that shows in a separate section of your credit report.
Emma says
Hi Sara
Thanks for this. On the account is shows some late/missed payments in 2013 and 2014 but each monthly payment in 2015 is green. I was just quite surprised that when the account went to a CCJ in 2013 it didn’t have a black default put on with a default date.
The payments that I currently make under the CCJ would mean the account will be running for at least another 10 years so I’m assuming this account will not fall off after the 6 years even though it went to a CCJ as they haven’t put a default date on it?
Sara (Debt Camel) says
OK, if there are missed payments back in 2013/4, you should write and ask for the default date to be on or before the date of the CCJ. This means the debt account will fall off when the CCJ does, after 6 years. Otherwise you are right that the account will remain for 6 years after you repay the debt.
Andy S says
Hi,
I entered into a DMP in 2012 for credit cards, unsecured personal bank loan and current account (overdraft). The credit cards appear to have recorded a default at about the right time i.e. 2013 but the current account has only registered a default at 30 Sept 2015. Is this too late and should it be more in line with 2013 i.e. several months after ‘defaulting’ by commencing my DMP and not over 3 years after this? Thanks
Sara (Debt Camel) says
Hi Andy, you will see from the ICO’s quote in this article that current accounts are an exception to the usual 3-6 months rules – the reason for this is that they don’t have set monthly repayments, so it’s not possible to say when they become 3-6 months in arrears. Have you ever been sent a Formal Demand by the bank to repay the overdraft? If you have, then you can argue that the date of that demand should be the date of default. Otherwise you could put in a complaint to the bank that they have not treated you fairly by delaying adding the default so long and ask for it to be backdated to, say, 6 months after your DMP started. If they refuse, I suggest complaining to the Financial Ombudsman about this, as I’m not sure you would get anywhere with the ICO.
Andy S says
Hi Sara, I do not recall receiving a default notice – I do recall them contacting me in September asking if I was still being represented by Stepchange however I assumed that this was because my annual review was completed late i.e September when it should have been done in August. I assumed that the new annual review, sent by Stepchange to the bank, was in ‘cross-over’ in the post. I thus thought that the bank would receive this shortly after sending me the letter, and updating their records to show that I am still on the DMP.
The current account has not been used at all since entering into the DMP in 2012 – will this aid my cause? I should add that I am now in a position to settle my debts following a family gift – would this also aid my cause in persuading them to revise the default date to around 6 months post DMP? Thanks again, Andy
P.S. The default date for the personal Loan is also within the last 12 months, should this also be 6 months post DMP i.e. earlier? Thanks again, Andy!!
Sara (Debt Camel) says
The fact that they knew you were in a DMP and haven’t used the account since does help your position – certainly mention this. The fact that you can now settle the account doesn’t really help – this isn’t a bargaining situation – you did default on the debt, the only question is when.
If you are proposing full and final settlements with this gift (see https://debtcamel.co.uk/debt-options/less-common/full-final/) then I would deal with this first and then try to get the credit record sorted. I wouldn’t try to mix the two problems up.
Yes the loan default date should also be earlier.
Debbie says
Hi can you help me, I have a default on my credit file from 2010, but the date has now been changed to January 2016 is this correct? Up until today I had a score of 974 but because the default has been updated it has dropped to 574.
Sara (Debt Camel) says
Hi Debbie, this shouldn’t have happened! I suggest you contact the company (not Experian) and ask them to correct it. If they refuse, take your complain to the ICO as this article says.
youkos says
Hi Sara, I had a default registered on my credit file. It is from a debt collection agency the original date is back from 2012. I did think I closed my account with T mobile- apparently not (had no communication from anyone till 2014 when the debt collection agency contacted me).
The updated date (settled) on my credit file is 2014 July when I agreed to pay it – I was a bit confused by the whole thing and though it is better if I pay.
It show up on my credit report from 2014 only.
Could I ask them to change the date to the original default date ?
Sara (Debt Camel) says
Hi Youkos, if you are saying the default date has been changed to later, you definitely should ask them to correct the date – they can’t move this date to later! Go to the ICO as this article says if the debt collector refuses.
Gordon H says
In 2007 I got into financial difficulties following a relationship breakdown. I set up a payment plan of £8.60 per month to a catalogue debt. In 2013 when Shop Direct marked my file with a default and the account was passed to a debt collection agency. The collection agency tried to get me to pay more so I requested my credit agreement which they couldn’t produce so the account was closed and returned to shop direct. Shop Direct have left the default on my file, I have requested they remove it but they refuse to saying that although there is no credit agreement the fact I received the goods is proof enough.
1) Should my default date be before Oct 13 as I technically defaulted on the account back in 2007 and that’s the year I received my first default letter from other creditors. Can they leave it that long?
2) As there is no credit agreement can I legally get the default removed?
3) Unknown to me they have added a £12 administration fee every month which means my outstanding balance is now still over £3000, can I get these refunded as I thought I was in a payment plan with them?
Sara (Debt Camel) says
Hi Gordon,
1) it sounds as though the default date should have been in 2007 or 2008 when you account got to be 3-6 months in arrears. Write to them using the letter in this article and go to the ICO if they refuse.
2) this would be an interesting legal battle in court … but in your case there is no need to think about it as (1) should get your default date problem sorted!
3) are you still paying them any money? If so, why, as they have accepted the debt is unenforceable? If you find the idea of stopping paying them alarming, phone National Debtline and discuss it with them. If you are not paying them any money and the debt disappears from your credit file, who cares what charges they are adding every month?
Michael says
Hi Sara, I had a credit card back in 2009 and I didn’t keep up payments on a balance of £1100 in December 2010 – it was a John Lewis credit card , no payment was made and they then put my account into default in 2013 , I have now paid off the debt in full but the frustration for me is they waited for 3 years before putting the account into default , I am now a lot better off financially but I can’t get credit anywhere , can I get the default date pushed back to when I actually stopped paying them?
Sara (Debt Camel) says
Hi Michael, as this article says, the default should have been out on your file when the account became between 3 and 6 months in arrears. use the letters here to ask for it to be corrected!
Simon says
Hello,
Trying to make sense of the six year default rule. If a first date of default is 6th October 2011 then this drops off the credit report after 6th October 2017. I get that, but looking at the report I have, it shows the letters DF (obviously meaning ‘default’ ) for every month upto the present month of January 2016 as the debt is still in default. If a report shows the last six years then say we jump to Jan 2020 will it still not show ‘DF’ all the way back to Jan 2014? . Does that make sense or does the whole debt file just drop off the report after the six years from the date of default.
Sara (Debt Camel) says
The whole debt disappears six years after the first default date.
Marie says
Hi, I am confused and would appreciate some help?
I have been on a DMP for 6 years and nearly finished! I looked at my credit report today, and saw that that the original debt from Very (2010) had been passed to a DCA. The DCA have issued a default on 02/01/15. I’ve never missed a payment on my DMP. It is the DCA not Very that have issued the default for £63! (Paid off August 2015). Is this fair?
Thanks for your advice
Sara (Debt Camel) says
The fact that you didn’t miss a DMP payment isn’t relevant, what matters is that you didn’t make the original payments. However the default should have been back in 2010-11 as this article says, so you should ask for this to be corrected.
Colin says
Hi , Hutchison 3G (three) have just added a default to my spotless credit file , my account with them was perfect for 2 years without any missed payments, however there was some confusion as to when the contract ended and I cancelled my DD. This resulted in me being 1 month late with my payment , I rang them to explain and agreed to pay and close my account , they never mentioned a default at that time , I then done as I promised and paid the account upto date which then ended the contract , I’m since horrified to discover they have put a default on my credit file. I have wrote to 3 executive office , they have refused to change my default and say that it’s a fair reflection of how I managed my account , even after 2 years of paying on time – I feel that the punishment does not reflect the crime , I except a late payment on file but not a default – can someone please help us ?
Sara (Debt Camel) says
Unfortunately this sort of thing is not an uncommon occurrence with mobile companies :(
If you were only ever 1 month late with payments then you could go to the ICO as this article says and say that you have never been 3 months in arrears. And also that they didn’t write to you to let you know about the default, and that you settled it as soon as you became aware. Good luck!
Colin says
Thankyou Sara , my argument is that they are not being reasonable with what they are reporting , surely they can’t just do as they like ? I feel that if I hadn’t left they wouldn’t have done this to me. I have read that they are regulated differently to banks etc , they also claim they don’t have to send me default notifications as its not in their t&cs ? , do you think that the ICO would be willing to take my case on ? What about the Ombudsman ? Many thanks.
Sara (Debt Camel) says
They are regulated differently to banks – and this means you can’t go to the Financial Ombudsman. You have to go to 3’s ombudsman
If you were only ever behind by a month, it certainly worth going to the ICO – all they can do is say No after all!
Colin thompson says
Hi , just to let you all know that after many emails and pushing very hard , Three today made a dramatic U turn and withdrew the default. Keep fighting everyone as it can be done !!! :-)
Sara (Debt Camel) says
Excellent news, well done for persevering!
Joe says
Hi, I took out a secured loan for £15,000 with Black Horse in January 2005. Due to financial difficulties, I was unable to make the payments and Black Horse registered a default on March 2009. This debt was passed to Marlin Financial Services some years later (early 2012). Marlin did write to me saying they were taking over the debt but I was not in a situation to make any payments to them. Marlin have put a further default on my credit report, with a default date of May 2012.
From reading your information here, it would appear that the default should have been removed from my credit report on March 2015 and that Marlin should not have registered a newer default date. If you could let me have your thoughts and any advice about how to deal with this, that would be much appreciated.
Sara (Debt Camel) says
From what you have said, Marlin should have used the default date added by the original lender. Write them a letter and ask them to correct this!
Christopher says
Hi,
I have a question, I have a default currently on my credit file, the account open date was September 2007 but the default date was November 2011? this was for £560 for a laptop on finance with curry’s VIA HFC bank, I made 1 payment in 2007 then stopped.
can you advise if the default date is wrong as the debt is currently owned by Lowell and I believe they have set the default date incorrect so it doesn’t drop into stat Barred and drop off my file?
Sara (Debt Camel) says
The default date on your credit record is not relevant for statute barring. Read https://debtcamel.co.uk/statute-barred-debt/.
But it would be good to get your credit record cleaned up, as the article above suggests.
Louise says
Hi Sara, I have a similar question. I have been with StepChange since 2007, most of my debts aren’t on my credit record but two have stayed on – one with Next (which has been passed to Moorcroft) and is saying that it was a DM then D from 2010 and the other with Halifax (now with Cabot Finance) which had AR then DM now D each month but only from 2015 and not to be removed until 2021. Even though I have statements from both – I don’t have any default notices. Can I write to them and say the default date should be 2007 as per my DMP? Thank you for your time.
Sara (Debt Camel) says
Hi Louise, yes it sounds as though defaults should have been added in 2007/8 when the accounts became 3-6 months in arrears.
Derrygirl says
Just checked my credit report and there is a payday loan on there that I stopped paying Aug 2013. Ive had no contact since. Instead of being marked default and/or closed its showing as 1 month late every month since then. What does this mean? Will the 6 years apply from the date of the first missed payment or not at all as its never actually been in default according to the credit file?
Sara (Debt Camel) says
With no default date, this debt will never drop off your credit record.
You could ask for a default date back in 2013 to be added now using the letters in this aryicle – if this is done the debt will drop off in 2019. But it may “wake up” the creditor and you may then get asked for repayments. If you can repay the debt then this may not worry you.
If you used payday loans more than a few times, you could also look at whether these were “unaffordable” – you may be able to reclaim some interest you paid and sometimes the debt can be deleted from your credit file. See https://debtcamel.co.uk/payday-loan-refunds/.
Ross says
Hi, I’ve been on a DMP for over 6 years now and still paying off debts with Lloyds Bank and Tesco’s although they are getting near completion. I defaulted all at the same time as the DMP company took over. The loans with Tesco’s were registered as defaulted immediately and have now been removed from my record as it is over 6 years. The ones with Lloyds are showing a further 18 months before they are removed as Lloyds didn’t register them as defaulted for some time. I think that when my DMP company wrote to them with an offer for repayment they took it as an agreed lower payment and didn’t register as a default. Is this right as I would expect them all to default at the same time and now all be off my credit record?
Sara (Debt Camel) says
DMPs aren’t treated consistently by lenders reporting to the credit reference agencies. But it sounds as though you have a case to ask the lenders to correct the default date to be earlier as this article suggests.
Syed says
Hi,
My mobile phone contract went into default around 4/5 months after I left the country and stopped paying it. It went into default on my credit file on Feb 2011 but because I stopped paying few months before should the default date start from the first missed payment? Also would the default be removed in 2016 or 2017 from my credit file?
Sara (Debt Camel) says
As this article explains, the default date should be when you are 3-6 months in arrears. Not when you first missed a payment. From what you have said Feb 11 sounds right and it will disappear from your credit record in Feb 17.
Ash says
Hi
Just to understand if I have this correct? I am currently paying off a default from my HSBC credit card with £20 a month. After 6 years will the remaining balance clear and I will stop paying off the debit?
Sara (Debt Camel) says
No that is not right at all – see this article which looks at someone in your situation: https://debtcamel.co.uk/paying-old-debt/
Denise says
Hi Sara
Great website!
I have a question. I have defaulted debts that will drop off next year. I understand that I will still need to repay them after they drop off. As I will be paying them off and they won’t appear on my credit report, will it still affect me if I want to apply for more finance in the future? How will future lenders know about it if they are not on the credit report?
Thanks
Sara (Debt Camel) says
Your credit rating is likely to improve a lot when all the defaults have dropped off.
You do have to repay them (unless you are 100% sure they are statute barred, this isn’t always easy, see https://debtcamel.co.uk/statute-barred-debt/)
Future lenders will only know if they either ask you or ask to see your bank statements. In practice this is unlikely except for a mortgage or secured loan. If you are applying for a credit card or an unsecured loan, the lender will only know about the disappeared debts if the debt was to the same company / group of companies so they can see it on their internal records.
Ab dorez says
Hi sara,
Just to clarify something. I had 6 defaults which had been cleared this month. On the contrary,Mbna did not put my account in default and they later sold it to Moorgate. Moorgate has put DMP on my credit file.I have cleared this account. When i checked with MBNA they sent me letter to confirm that my account was defaulted on 17/04/2010. This letter was sent to Moorgate by me and had aaked them to change my account as defaulted account. Moorgate replied me last week to say that they have checked with MBNA and they told them that letter was not correct and they made mistake and my account was not defaulted. I have already complaint to MBNA as well and am waiting for their reply.
Please advise me how to proceed further
Thanks
Sara (Debt Camel) says
I am assuming that according to the rules set out in this post, the debt should have been defaulted a long while ago by MBNA.
If this is correct, then wait for MBNA’s answer. They may confirm the default – in which case go to the ICO with a complaint that Moorcroft aren’t using the date the original creditor set. If MBNA change their mind and say there is no default, then you need to complain to the ICO and MBNA.
Jamie says
Hi,
Looking for some advice regarding an old mbna account passed to idem in 2012.
CC account with MBNA I arranged reduced payments of £38 in 2006/2007. Stayed in place until 2012 until advised passed to IDEM. Cleared balance remaining 2014.
Experian shows red “4” markers 2010, “5” markers 2011 until passed to idem where it shows as green markers but under DMP.
Equifax shows AP markers until 2012 and then DMP.
Noddle shows green markers AR 2011 onwards and DMP 2012 onwards once passed to idem.
All payments were made via DD since start of agreement. Was advised it for defaulting initially but then that it was due to business reasons account passed to idem. Initially MBNA system appears to show account as defaulted 2012 and takes significant investigation for staff to be able to state it did not.
MBNA originally stated defaulted 2012 on the phone, then retracted this, but couldn’t explain as records prior 2009 archived.
No default recorded 2006/2007.
Statements provided last week show agreed payment to be debited £38, no interest, but min payment states £272, this changes in 2011 to say £38 in line with DD amount.
In the middle of finalising a mortgage application, should their be a default marker if statement states 272 payment and 38 paid for more than 6 months. Or even showing 5 months behind for 12 months? I assume much longer record of this from 2007 but even applied in 2009 would be off file now.
Are the markers indicating arrears before AP was in place? Doesn’t explain the increase by 1 month 2010/2011?
Are there any legal firms that work in this area?
Complaint has been escalated as first dept passed to don’t have an answer for me.
Any advice appreciated, rapid resolution although unlikely is needed.
Thanks
Sara (Debt Camel) says
It sounds as though the default date should be sometime in 2007. Ignore all the later confusing stuff and the different ways the CRAs show this, you were more than 6 months behind after you had made 7 months reduced payments so a default should have been added the.
It is a pity you didn’t check this 6 months ago before starting the mortgage application as there isn’t a quick way to correct this. I doubt getting a solicitor involved would speed this up much.
I am not sure who you have complained to? It needs to be MBNA not IDEM
John says
Hi,
I and my wife entered a DMP in early 2007, all debts have sinced been paid of. I now have a clear credit file as all defaulted accounts have fallen off.
However my wife has 4 defaults still on her credit file ranging from Mar 2011 to Oct 2012. from credit cards and catalogues With some defaults being registered over 5 years after entering the DMP. Surely this is unfair? We are ready to apply for a mortgage as we have a substantial deposit now saved.
Unsure what me and my wife would have to do next to get them removed if this deemed as unfair?
Sara (Debt Camel) says
Hi John, I’ve looked at the general problem of gettin a mortgage in/after a DMP here https://debtcamel.co.uk/dmp-mortgage/. you have 2 options:
1) use the letters in this post to get the default dates corrected to an earlier date so they are more than 6 years old and drop off immediately.
2) talk to a mortgage broker rather than apply direct to a high street lender. With defaults over 3 years old, all paid, and a good deposit there may be lenders that will offer you a mortgage at a good rate.
james says
Hi I have an old catalogue debt with Simply Be, I stopped paying the debt in December 2010 when I ran into financial trouble. However the default date that is registered on my credit file is November 2011 which seems very late, the debt has subsequently been sold to Lowells a debt collection agency and I am making them regular monthly payments. This will be the last debt left on my credit file if I considered that the default date is too late should I write to Lowells or Simply Be. I have read the information above with regards to when a default should be registered but am a little confused as to what rule applies regarding catalogues.
Thank you
Sara (Debt Camel) says
You should write to the original creditor – so Simply Be.
L says
Hi,
I have a debt due to drop off my credit file next month (even though the official 6 years has passed by some 12 months – Lloyds didnt add default to my file for a year after when the original default should have been added!). The issue i have is that my credit file states the debt was assigned to a CIAS member start date: 01/08/2013. Will the latter mean the default stays on my file for a further 3 years or will the original debt just drop off as per the 6 year cut off so nothing will show?
Sara (Debt Camel) says
The original debt will drop off and if it has been added by the new debt collector, that should have the same default date so it too will drop off.
Lee Hayes says
Hi.
I went into default for a car loan with Fiat auto finance in May 2010 and have been making token payments to avoid a ccj. The debt was sold in March 2016 to debt managers limited with an outstanding balance of £4000. Debt managers limited have changed the default date to Feb 2012. They are telling me this is the information supplied to them by Fiat and initially asked for a screen shot of my credit report showing the original date of default and they would then correct it. After sending the screen shot they still refused to acknowledge the date was incorrect and said they are contacting Fiat. Would there be any way the default date could be changed? The original default date was after 3 months of missed payments. I get the distinct impression that debt managers limited are stalling as they are reluctant to delete the agreement with the CRA’s
Thanks
Sara (Debt Camel) says
No, the original default date cannot be changed.
You should put in a formal written complain to the debt collector, see https://www.dmpay.co.uk/complaints.html
If that doesn’t resolve the problem, you should complain to the ICO as this article says.
chris says
Hi,
Just some advice please, I went onto an arranged payment plan with MBNA in April 2011 after being made redundant, and kept up to date with this plan until August 2013 when I was made redundant again so I recontacted MBNA and asked to lower payments to the plan as I was on a lot less income, however MBNA refused and defaulted my credit file dated August 2013, should they have dated the default in 2011 as that’s effectively when I broke the credit agreement?
Thanks in advance for your help
Sara (Debt Camel) says
Hi Chris, you need to look at the payments you made during the payment plan and compare them to the usual minimum payments that MBNA would have charges. As this article explains, a default can be registered when you are between 3 and 6 months into arrears.
Take an made up example. Say the usual minimum payment would have been £150. Then 3 months arrears would be 3*150 = £450 and 6 months would be £900. If your monthly payment arrangement was for £50, then you get £100 into arrears each month, so you hit the would hit the 3 months arrears after 4.5 months and the 6 moths after 9 months. So you can argue the default should be no later than 9 months after you started the payment arrangement.
Clear?
Chris says
Yes that’s great, thank you for your help. Chris
Alison says
I was made bankrupt in December 2011 and subsequently discharged in December 2012. On checking my credit files recently I have noticed that the date of default with some of my creditors is actually before my date of bankruptcy ( some are months after). Should I contact the creditors to have the earlier date changed as well as the later date?
Sara (Debt Camel) says
No, the earlier dates do you no harm, those debts will just disappear from your credit record sooner :)
Alyson says
Thank you. I regularly check my credit report and I contacted my previous bank regarding two account (personal loan and overdraft).
I received a letter from them advising that they had amended both records to show satisfied with a default date of December 2011, however on checking my report only the personal loan was corrected. The overdraft account still shows outstanding with no default date and as an up to date account.
I have contacted them again and they are stating that I need to contact the credit reference agency as they have updated the account accordingly. I advised them that the agency says it has to be the bank that amends the details. I am at a standstill, what would you suggest.
Thanks
Sara (Debt Camel) says
The CRA is correct, the bank has to correct the information. I suggest you get back to the bank and say unless the matter is sorted within the next month you will be contacting the ICO (see the article above for how to do this,)
Janice robbins says
Hi, I’ve had a default notice put on my account in February this year. I don’t dispute that I owe the money to Welsh Water and I’ve set up arrangements to repay the debt, my problem is that I thought a default notice as to be recored on my account up to 6 months after the last late payment but this debt is for an address in moves out of in April 2014! Could I get the date off the default changed? I’m trying to get a mortgage and it’s really affecting my attempts……any help/advice would be greatly appreciated……thanks xx
Sara (Debt Camel) says
You can use the letters in this article then – but (a) the default has to be repaid in full and (b) getting it moved back to late 2014 isn’t really going to improve your mortgage chances much I am afraid.
Janice robbins says
I have spoke to mortgage brokers who have said I could get an 85% mortgage once the defaluts is a year old so if I can get it moved back to then I’ll be happy. I’ll take a long at the article thanks. I’ve spoken to Welsh water and they said even though I defaulted on the account years ago, because they have only just started using experian etc then the default is starting from this year which is don’t see fair as I have been trying hard to build up my credit and in my last property I was actually in credit with Welsh water.
Sara (Debt Camel) says
That isn’t a good reason to have a “late default” – ask them to correct it, there is no reason why they can’t add a default date earlier than the date they started reporting to Experian.
BUT are you saying that the default was from one property, then you moved to another Welsh Water property and were in credit and they never told you about the previous debt? In this case you have a good reason to ask them to delete the default completely – if they had promptly got in touch with you about the previous debt you would presumably have made an arrangement ot pay it and there would have been no default.
Simone says
Hi,
I have recently checked my credit score and see that a payday loan company I stopped paying back in September 2013 has been recording late payments every month since then even though I stopped paying altogether. Surely it should read no payment or default. Are they doing this so the debt stays on my account forever? Will it stay forever as long as they just register it as late payment rather than no payment? I know it’s wrong to ignore debt but I was very young and in dire straits financially hence using a payday loan and it just spiralled! Thanks in advance x
Sara (Debt Camel) says
You can ask to have a default date added back in 2013/early 2014 as the article above suggests. That will drop off your credit record in 2019/2020, so it will make your credit record worse for the next few years but then it will be clean. If you took several loans from the lender back and they are still in business you could put in an “affordability complaint” see https://debtcamel.co.uk/payday-loan-refunds/. If you win this (and many people are, see comments at the bottom of that post) then the debt will be deleted from your credit record.
Alternatively if you don’t want to write to the payday lender, you could wait until the 6 years has already gone and then ask for a default to be added to your record. I don’t usually suggest this for debts, see https://debtcamel.co.uk/no-calls-or-letters-about-debt/, but I think the chances of being contacted about an old payday loan debt are less than other debts (though it’s still possible).
Simone says
Hi Sara,
Thank you so much for your response. I’ve recently had my first child and things are tighter than ever! I’d love more than to be able to wipe the debt but I’m living hand to mouth most days as it is. I’ve had no interest in getting credit since my darker days with payday loans (I had 8 out at one point!). Put me off for life! However in future I hope I might be able to at least get a mortgage rather than rent but that won’t be for a few years either. If I go down the route of waiting until 2020 and ask the creditor to mark the loan as default will they have to do this as law as the last payment was over 6yrs ago or can they say I have acknowledged the debt so I have to pay? Sorry for all the questions x
Sara (Debt Camel) says
I would wait until it is several months over the 6 year period so it should be safely statute barrred.
In the meantime, I understand things are tight, but if you could put aside some money each month, then if the creditor does get back in contact you may be able to make a full and final offer to settle the debt?
Simone says
Hi Sara,
Thank you for your reply. Hopefully once I’m back working and on my feet that might be a option but maternity pay is pretty minimal when you have rent, bills, food, clothes etc. I’ll get there one day! You’ve given me some peace of mind though so thank you for that x
andrew says
Hi,
I entered into a DMP with Harrington Brooks in December 2013, with 7 outstanding creditors. 5 of the outstanding creditors have recognised the DMP and set the default dates to 27/12/2013. However, 1 of the creditors has set the default date as 17/02/2014 and the other has set the default date as 21/04/2015!
I realise that as far as future credit is concerned lenders will not touch me until 6 years after the final default date i.e. 21/04/2015, which will be almost 7.5yrs after I commenced my DMP. I’m really worried about this. I’ve tried to speak to both banks about changing the default dates to 27/12/2013, but keep being fobbed off. Is anyone able to offer advice on how to have these default dates changed to tie in with the start of my DMP?
Really appreciate your help, thanks
Sara (Debt Camel) says
I don’t know if you were behind with any of the payments before this DMP started? If you weren’t, then the default date should usually be in the first 6-9 months, depending on when you get 3-6 months in arrears. So the Feb 14 date is probably within the guidelines but the April 15 date is very late. use the letters in the above article to ask for this to be corrected.
By the way, a lot of your DMP payments is going in HB’s fees every month. have a look at switching your DMP to StepChange – their DMPs are exactly the same except all your money goes to the creditors, see https://www.stepchange.org/Howwecanhelpyou/DMPdebtmanagementplan.aspx
Gordon says
I had an OD and a loan from Natwest.
The OD registered a default date, but the loan didn’t when I went on a DMP with Payplan.
Raised this last week via resolver and just had a phone call back from Natwest.
They upheld my complaint and the fact that the loan should have defaulted with the OD at the same time as they were linked.
Better news is that the default date was supposed to be in 2009 and not in 2010, therefore they will be deleted from my credit file and I got £50 for the inconvenience.
Thanks for the advice, should have disputed sooner.
Highly recommend Resolver as it is easy to follow and to upload supporting documents.
Now to see if the other records on my account are correct… :)
Mark says
Hi ,
I am going to the small claims court with Lowell Portfolio tomorrow with regards to an old Vodafone debt
Question I have is as follows
My last payment to Vodafone was 23/4/2010 but Vodafone have put my default date as 2/12/2010 .
This is eight months after my last payment .
Not sure now if I have a case that it should have been statute barred?
Sara (Debt Camel) says
I think you need some advice on this urgently. You could talk to National Debtline 0808 808 4000. Or if you can’t get through try posting on the Legal Beagles forum: https://legalbeagles.info/forums/
A relevant date for you to mention to ND is the date on the claim.
Matt says
Hi,
I am currently on a DMP which has been ongoing for 3 years or so with no issues. As expected most of my creditors issued defaults at the start of the plan.This month Barclay Card have issued a default against my account due to arrears building up. My question is should they have issued the default at the start of the plan / 3-6months in or can they issue the default now? Barclays Bank issued a default at the start of the planso surprised to see Barclay Card, a branch of the same company doing it 3 years later.
Sara (Debt Camel) says
You need to compare the amount you are paying in the DMP with the normal monthly amount. If you are paying very little, you will hit the 3-6 months arrears in about that number of months. But if you are paying about half th usual payment you would hit the 3-6 months arrears in 6-12 months. So if you were at the 3-6 arrears a while ago, you can ask for the default to be backdated as per this article.
Fred says
Hi Sara, I have had letters from a debt collector regarding a weekly door step loan that I last made a payment on in Feb 2010. I told the debt collector this was statute barred and they have now come back to say that the default date on my credit file is March 2011 which makes this debt NOT statute barred and that this debt will go back to their collections department in 30 days if I do not make payment.
Pls can you advise as not sure what to do? I feel the default date is wrong for a start but not sure how to get this changed. Do I contact the original creditor that I have not contacted since Feb 2010 or do I go through my credit report [people?!
Sara (Debt Camel) says
The default date sounds wrong but this probably isn’t your main priority at the moment.
The default date for the debt is NOT relevant to whether it is statute barred. But unless you feel very confident in arguing with a debt collector about this sort of thing, I think you should talk to National Debtline (0808 808 4000) about what you should do. My inclination would be to send them a request for a CCA agreement and ask for a Statement of Account, see https://www.nationaldebtline.org/S/factsheets/Pages/gettinginformationfromyourcreditors/creditagreementadvice.aspx, but discuss all your options with ND first, so you see the full picture.
EDIT – in January 2019 the legal position got more complicated when the Appeal Court decided that for some credit debts (loans and credit cards) the creditor had 6 years from issuong a Default Notice to start court action. See https://debtcamel.co.uk/statute-barred-debt/ for details and talk to National Debtline on 0808 808 4000 if you think this may affect you.
Fred says
thanks Sara, I will get this sent off today. What should I do next if they do send me the requested information?
Tony says
Hi Sarah,
I have recently agreed partial settlements with five different credit cards. Some of these have been in default, with interest frozen, for 2-3 years and I had been paying £10 a month until the recent settlement.
Does the 6 year period commence from the recent partial settlements or from the very first default for each credit card, which may have been 3 years ago and will mean my credit file will be clean in 3 years?
Sara (Debt Camel) says
From the original default date, see https://debtcamel.co.uk/ff-credit-record/ for details.
Nicola says
Hi.
I hope you can help. I defaulted on a line of credit and this was subsequently passed to a collection agency. Since that point (well over a year) I have been paying a set monthly amount and it has been on time every month.
My question is regards to the default on my credit file. I understand that the date/month in which the credit originally went into default will be marked with DF on my credit file, but should every month after, from that point until the current month, also be marked with DF if I have technically been paying on time?
Thanks
Sara (Debt Camel) says
Yes, this is confusing but correct! After you have defaulted, a D will be added every month until the debt is settled. From the point of view of your credit score, only the first D matters. And the debt will disappear from your credit record six years after the original default date.
Paul says
I had a mobile phone contract that I last paid 27/01/10. I was told it was noted as defaulted 08/04/10 and then the debt sold to a debt agent 10/09/10. The debt was bought by a another agent recently and they are taking me to court. My credit rating shows default date as 10/09/10. When I questioned the new agent they said that date is correct as you cannot register a default date as a date before you buy a debt. Surely the default date would be when the mobile company said a defaulted?
Sara (Debt Camel) says
The default date should be that noted on the original debt to the mobile company.
HOWEVER if you have been sent court papers about this debt and you want to defend the case saying the debt is statute barred (you haven’t said that is what you want to do but I guessing here) you need urgent help to make sure you enter a good defence. Contact National Debtline on 0808 808 4000.
Helen Byrne says
Hi Sara. I had a credit account of £700 from Creation Finance on my file which I failed to keep up the payment in April 2013, however the account has not registered as defaulted, but instead as “late payment” all the way up to March 2015 when I settled the account. A mortgage broker has pointed this out to me today, and of course this looks worse as it appears that I had continual late payments during that entire time. Should Creation Finance have updated this account as defaulted back in 2013 after 6 months of no payemnt? As I had not made any payments nor agreed to do so till finally settling in full 2015. I believe a 3 year old default looks better than recent continual late payments… Thanks
Sara (Debt Camel) says
yes default date should have been back in 2013. If you get that corrected, all the “late payment” markers will change to “Defaults”. Some lenders may prefer this. Some may not. The defaults will disappear sooner – in 2019 – but if you want a mortgage now that isn’t much help. What does your mortgage broker say?
Susan says
I got into financial difficulties in 2011 and ended up with a number of payday loans. All were defaulted and payment arrangements set up. However Swift Sterling refused to reduce the interest added after I notified them of difficulties and refused a payment arrangement I could afford. They defaulted me and sold the debt on. I was contacted by a couple of DCAs but when I explained they passed it back.
In 2014 I was contacted by MotorMile Finance who wouldn’t accept the account was in dispute and I eventually agreed to pay them monthly but only if they sent me bank details to pay by standing order. These were never received and I have heard nothing from them since. I did move house but all dealings with them were via email which I access daily.
I checked my credit file 6 weeks ago and they have added a default for this account dated April 2016.
I contacted them immediately to complain and have just a complaint response saying that Swift Sterling hadn’t correctly issued the original default so had removed it from my file and that MMF had contacted me by post and email to issue a new default notice so they are refusing to amend the date to 2011 when the original default took place.
I didn’t receive the default notice but even if I had can they really add a default 5 years after the original default? They state that they are required to report factual and up to date information but I fail to see how what they are doing is factual and up to date
Sara (Debt Camel) says
I have replied by email. This is complicated because Swift Sterling are not a UK regulated company, see https://debtcamel.co.uk/swift-sterling-pounds-till-payday/
Brian says
Dear Sara,
Firstly, thank you for your work. It’s making a real difference to so many people. Please let me know if there’s a way I might say thank you more tangibly. I don’t see a donation link anywhere.
My question:
I took out a motorcycle HP in 2009 with a sub-prime lender. The vehicle was stolen on 2nd April 2009, and I lapsed with payments after falling to get an insurance payout.
I have not heard from the lender since 2009/10, and had forgotten the debt existed until recently when I checked my Call Credit report. They have been recording ‘6’ status every month since September 2010, with a balance of £8701. In the February of 2012, this increased to £8749. This ‘6’ status is updated every month, even now.
Does this HP fall outside of the ICO’s reporting guidelines due it being secured on a vehicle?
Can I insist that the default is added in September 2010, where the debt first appears on the record?
Sara (Debt Camel) says
Hi Brian,
the standard ICO guidelines apply, so yes you can ask for a default to be added back in 2010.
BUT I’m not clear when you made the last payment to it or when you last had contact with the lender – this matters because it’s important that the debt is statute barred, see https://debtcamel.co.uk/statute-barred-debt/. It would not be good to send in a request to get the default date changed and find you have woken up a creditor who then decides to go for a CCJ! Unless you are 100% sure the debt is already statute barred, you should wait until you know it is. If in doubt about this, talk to National Debtline 0808 808 4000.
Brian says
Thank you, Sara. I’ll call the Debtline as you suggest. I’ll wait a year, as I am certain I didn’t hear from them at all in 2011. I vaguely recall a telephone conversation with them in 2010. My last payment was late 2009, I believe.
Fortunately, the affect on my overall credit is limited right now, as my history with the other CRAs is clean. While I wait, does the lender have the option to start reporting to the other CRAs?
Sara (Debt Camel) says
Telephone conversations don’t matter, they can’t reset the “statute barred clock”. I think you should talk to ND now.
Yes a creditor can start reporting to different CRAs. It’s not likely to happen but it is possible.
Tim Griffiths says
Hi Sara,
I’ve read with interest all the above comments and just wondering if you can clarify my position on something similar.
I’ve recently been turned down for a new low rate credit card and so thought I’d check the CRA’s to see why.
You can imagine my shock to see that British Gas have placed a default marker on my file in January 2016 which apparently relates to an aged unpaid account from 2007! Over 9 years ago! –
1 – I am totally unaware of any debt to them. I changed gas supplier in 2007 and would have thought than anything that was outstanding at the time (if anything) would have blocked the transfer to a new supplier. Also, I have had no correspondence regarding this alleged debt whatsoever during the last nine years.
2. – The Default has only now been registered in Jan/16 so surely this should be dated back to when the default took place?
3. – Surely if the alleged debt is real, by now it would be statute barred in any event?
Could you link the template letters please as I can’t seem to put my hands on them.
Thanks
Tim
Sara (Debt Camel) says
Yes that default sounds much too late. And the limitations period for statute barring for fuel debts runs for 6 years from the date of the bill.
The template letters are in the article above these comments if you scroll up!
Nikkih says
Hi can you help. Ive queried a default recorded against me in 2014. Tthe lender concerned has admitted they cannot find a copy of the default notice issued to me, so have agreed to remove the default but then intend to issue me with a new one! Thereby extending the time this will show on my records. Is this allowed?
Sara (Debt Camel) says
This is why there isn’t much point in complaining you never received a default notice. Yes, they can just issue with a default notice now, but then you can ask them to put the correct date on it which would be …. back in 2014 presumably. So you will have had a lot of hassle and got nowhere.
(The only minor exception to this is if you can show that you were unaware of the debt, have now repaid it in full and can also show by your otherwise completely clear credit record that there is no reason to think you would have defaulted in 2014 if they had written to you. In this sort of case the company will sometimes agree to delete the default.)
Nikkih says
Sara, good news I think? I went back to NW and complained that their offer to remove the default and issue a new one was pointless as I would insist that they record it with the correct date according to their records. They have now agreed as ‘a goodwill gesture’ to remove it completely and instead record the fact that I am 3 months in arrears, which I intend to pay. I am assuming that although I can only see the default on my file and no updates since, that behind the scenes they would have been providing updates on my account on a monthly basis ie repeating the default status or an update on the reductions being made to the arrears since the default. Therefore the fact that these arrears will show as a recent update, is still a better position than a default having been recorded in 2014. Please advise if Im correct and from what date will the account now be deleted from my credit record, will it be 6 yrs from date settled? Thanks.
Sara (Debt Camel) says
Each individual lender makes their own assessment of a credit record, but I think most would prefer a recent 3m default which you have repaid to an older default. yes the account will now go 6 years after it was settled.
Alyson Younger says
I have contacted two of my previous lenders on several occasions to advise that they have still not updated my credit file correctly despite the fact they have said they have. It relates to the default date of my bankruptcy being incorrect. With one of the lenders (previous bank) I had two accounts, a personal loan and my current account. They updated the loan correctly, but the current account has now been changed from a satisfied account to Transaction Not Received and a live account. I have sent them a copy of my credit report to show these details but now I am getting no response from them. The second Lender just keeps replying that I need to contact the credit agency as they have updated the information.
David says
I have an account that’s been in arrears since 2012. The first marker on the account in 2012 shows it as being 6 months in arrears, the same marker had been placed on the account ever since. A default had never been registered on the account despite the fact that I’ve never made a payment nor acknowledged the debt. As it’s still only showing 6 months in arrears can I assume that this won’t drop off in 2018?
Sara (Debt Camel) says
That is correct, it won’t drop off. Which is why you could probably ask for a default to be added back in 2012 – although a default is “worse” than a late payment marker, it will then disappear in 2018.
Kelly says
Hi
I had a number of defaults on my file which all dropped off within the last 3 months. Upon checking my file with another agency there is another which was registered in May 2009. It is £275 and I was planning to pay it in full next week.
My questions.
1.Will that then fall off my file. If so, within what timescale?
Also as I have had no credit since 2001 and had defaults my score is really low 623 on experian. I wish to get a mortgage next year and need to improve by then
2. Will a low score but no defaults outstanding make it easier to get credit?
3. I need a vehicle for work so was considering lease (pcp) is this advisable when looking for mortgage next year?
Online calculators suggest I have a large disposable income due to my salary.
Thanks
Kelly
Sara (Debt Camel) says
What is the default date on this other debt?
Kelly says
31st March 2011
Sara (Debt Camel) says
Then it will drop off your file after 6 years in September 2017. if you think this default date should be earlier, read the article above and see if you should ask for it to be changed.
You may struggle to get a PCP car if your credit record is poor – anecdotally they usually require good or better. You are more likely to be accepted for HP. It is important for a future mortgage application that the monthly cost is low as a large payment will badly impact your “mortgage affordability”.
From the point of view of getting a mortgage, you need some recent credit that you have been handling well. If your credit record is poor a “bad credit” card may be your best choice. Get one, use it every month and repay it in full every month so you never pay any interest, see https://debtcamel.co.uk/bad-credit-cards/ for details. If you do this now it will start the process of improving your credit score after 3 months or so.
Roni says
Hi,
Can someone help me please?
I had four debts (two loans x two master cards (credit cards) that I agreed a small payment amount to satisfy in 2008 when I was unemployed and full time caring for my husband who was ill with cancer. Last year, on his death-bed, we decided to offer them all a full and final settlement – even the one with only 1,000 left on it. This was to for peace of mind and because with his death imminent I though it was the best thing. I was a fool and knew nothing about how credit scoring works.
Now a widow, I have a rubbished credit rating and cannot even get a new mobile phone contract. Come to find out that all four have noted put me down as in default and this won’t go away for six years if ever.
Is there anything I can do? I am desperate. I cannot believe that I was such a fool to think that by paying the 80% of what the claimed I owed to achieve a sense of safety and piece of mind – after the 25% interest they were charging me for 12 years left me with depression – has, in point of fact, caused me a lifetime of credit blacklisting.
Sara (Debt Camel) says
From what you have said, you may have a case for the default dates to be backdated to 2008/2009 – in which case they will drop of immediately this is done as the default date will be more than 6 years ago.
If you don’t feel confident writing the letters in this article yourself to get the default dates correct, you could go to your local Citizens Advice and ask for their help?
Sarah says
Hi,
Fantastic site by the way.
I have a question? Myself and hubby declared Bankruptcy in Aug 10, our property was subsequently repossessed in May/June 2011.
All entries relating to the BR, including the BR itself are now cleared from our credit reports except for two – both relate to the repossession, one from Landmark Mortgages (NRAM?), default date showing as 26/7/11 and the other for a second mortgage through Firstplus default date 04/11/2011.
Having read your articles, am I right in thinking that these ‘secured’ debts should have default dates of Aug 10?
And could we then declare on credit applications that the date of repossession is Aug 10 and not May/June 11? This would make a huge difference to our current situation because we are trying to get a mortgage at the moment.
Many thanks
Sarah.
Sara (Debt Camel) says
From what you have said it sounds as though the default dates should be the date of your bankruptcy. I hope going through the process in this article – including taking the complaint to the FO if necessary – will resolve them, however I don’t think that means you can quote a different date for the house repossession.
Sarah says
Thank you Sara.
I emailed Experian who replied to say that they would contact the companies on our behalf initially( we pay Experian £14.99 a month) Well the next day the NRAM one had gone off my credit file!
My concern now is that the second default is with First Plus, who no longer exist?
Do you have any idea who we should be contacting? Assuming Experian don’t have any luck.
Many thanks
Sarah.
Sara (Debt Camel) says
I would start with the contact details from here https://register.fca.org.uk/ShPo_FirmDetailsPage?id=001b000000MfNfkAAF
Sarah says
Thank you Sara, I have written to them and await a response.
I have another question – we have applied to Halifax for a mortgage – and so far, so good. We are completing a full application currently having received a ‘Decision in principal’ last week.
We have been honest with Halifax, and given them the dates of the BR (+ 6 years) and the date of the repossession.
The adviser at Halifax said that they don’t ‘key’ any addresses which are over 6 years old, and therefore our credit report is positively glowing! I am still a worrier though, and scared that further checks will show the defaults at some point during the application process. I am also speaking to our Solicitor and not sure whether to raise my concerns with her also? I’m scared that we will get close to securing the property and then get knocked back?? We completed the application over the phone, so everything, I presume is recorded? So if there was a problem in the process we could prove that we informed them??
Am I worrying needlessly?
Does the Solicitor carry out a more detailed credit check?? Or are we right to accept that our 6 years is up and we are justified in getting this mortgage??
Sorry for the ramble!
Thanks
Sarah
Sara (Debt Camel) says
I am a believer in telling your Solicitor everything just as background info so they are fully informed, but your solicitor isn’t going to run a credit check on you. Best of luck, I hope this all goes smoothly.
Andrew says
Hi – I entered into a DMP in April 2012. One of my debts, with a store card never recorded a default with the CRA’s, however was noted as being under DM. The debt was settled in January 2015, but says settled in January 2016!
Is it worth contacting them to ask if they will record a default in October 2012 when I had reached 6 months of arrears?
Many thanks
Andrew
Sara (Debt Camel) says
will it be better to have a default on your file for the next 2 years or an arrangement to pay for 5 years? Yes for any credit applications you make after the two year point, so probably.
But they should definitely change the settled date!
Elizabeth says
Hi I had an account in 2014 which I missed payments on. I have recently checked my credit file and a default has been reported only a couple of months ago, so nearly two years later. Is there any way of changing this date to an earlier one? I am looking to get a mortgage in a couple of years and this is now going to impact my chances as it will not go until six years.
Sara (Debt Camel) says
How many payments did you miss? Did you then go back to making the normal payments?
Elizabeth says
I missed a lot of payments and did not go back to making any. I am now looking at paying off my debts as I am in a better financial position.