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?
AS says
Hi I have taken a payday loan from swift sterling in 2011 due to some health problem I could not make repayment , after that I did not hear anything from them , but today when I check my credit motor mile finance put a default on my file , the default date is 04/2016 The original agreement end on between June to Aguest 2011 , But now how they can place default , the default date suppose to come 08/2011 isn’t it , I am in big trouble now sorting to pay all debt and improve my credit , mean while it’s happening , any one help me what should I do. Thanks
Sara (Debt Camel) says
That date is clearly wrong. You should ask for it to be corrected.
KyloRen says
I wanted to ask something similar to the above, I was in a bad predicament in 2011 and took out a 2-3 payday loans only to pay one off with the other and couldn’t even make the first months payment. Sadly I was defaulted only to check now that the default date placed on the account was nearly 2 years after the loan was taken out.
Start date: 01/01/2011
Default date: 01/11/2012
Any advice on this would me much appreciated, I am happy to pay the debt originally owed but only on the basis the default get’s corrected, how would I go about doing this?
Many thanks.
Sara (Debt Camel) says
To get the default date corrected you can just write to the debt collector or creditor as it says in this article.
But in this case you should also consider if the payday loans were “affordable”, see https://debtcamel.co.uk/payday-loan-refunds/ for details. If they weren’t then you may be able to get some of the balance reduced. If you put in an affordability complaint, you could include as part of that the point that the default date is incorrect and ask them to put that right as well. If an affordability complaint is upheld by the Financial Ombudsman, the entire debt record, default and all, may be deleted from your credit records.
Jan says
I had a loan with Nat West in 2007 ( coerced into it) anyway I had an operation January 2008 from which I had 3 complications in surgery. I now have nerve damage to several organs and am unable to work. my job was kept open for 18 months before I had to leave.my monthly payments to Nat West became a £1 nominal payment probably around august/ September 2008. I checked my credit file and it is still shown. I rang Nat West and was told they issued a default in December 2013 as before that it was in the collections team.
This means I have another 3 years until it drops off and it is the only one showing on my credit file. Is there anything I can do about this please.
regards
Jan
Sara (Debt Camel) says
HI Jan, if you were making token payments from 2008, the default should be in 2009 sometime. The fact NatWest choose to keep it “in collections” is not relevant. Write a letter/email of complaint, as it says in this article.
Thomas says
Hi, I have been in a DMP for the last 6 years paying off debt and regulary making payments. During my DMP I received several default notices of which three remain. The default dates for the three remaining were 2013 meaning I still have three years before they drop off. The other defaults were from 2010 and have now dropped off. How can some creditors issue a date for 2010 and others 2013 when ll payments were being made at the same time. would your template letter be advised to get these defaults moved to 2010 ready to drop off asap?
Thanks
Sara (Debt Camel) says
“How can some creditors issue a date for 2010 and others 2013 when ll payments were being made at the same time” It is possible for different dates to be correct. Some creditors have lower monthly repayments in relation to the size of the balance owed, so the arrears will accumulate more slowly.
Take a loan where there is £1500 owing, with monthly payments of £85, compared to a credit card with a balance of £1,500 where the monthly payments is only £30. If they both get paid the same £20 a month, the loan will by 6 months in arrears after 7 months and the credit card won’t be for a couple of years.
But that is an extreme example and I would expect that your default dates should all be 2010-2011, so it’s worth asking for the default dates to be corrected as this article suggests.
Johb says
Hi
I started to struggle in late 2007 early 2008, I went on to a DMP in mid 2008, I’ve been paying this until late last month.
My partners parents have loaned me some money and I’ve been able to make full and final settlements to all but one creditor, not had any contact with one for years will see what happens when it gets closer to the 6 year mark.
Tonight while paying my Barclay Card debt off with Link Financial, they said they could apply a default to my account as it wasn’t showing as being defaulted.
Surely they can’t do this? It would have defaulted sometime in 2008 and it has dropped of my Experian credit file as I’ve checked. Could Barclays have cleared the default and it could be reapplied? From my understanding they couldn’t do this?
I’m not sure if what LF said was true and I’m a little concerned by it, I’ve been repairing my score since and it’s just short of 700 now after being in the low 100s, I don’t won’t it ruined again.
I think maybe it was a scare tactic they employee as I did mention the account not being on my credit file now and they mentioned about defaulting it.
Any advice you can give would be welcome
Thank you
John
Sara (Debt Camel) says
They shouldnt add a default date. There already was one back in 2008 / 2009 which is why the debt has disappeared.
Check your credit record in a month and complain if this debt has reappeared!
John says
Thank you for your swift reply.
I’ve just checked with the credit agencies and both noodle and equifax show the debt on my file as being being from Barclay card and not being in default. Is this possible, from my understanding the account must have defaulted at one stage for it to be taken on by a DCA?
For the last six years it says I have paid (green) but this is either a dmp or areanged payments, which is correct.
Is it possible that the account never defaulted and when Link Financial apply the partial settlement what date would this run from as there’s no default showing?
Also how would I find out if it did default if it was back in 2008? Could they have removed it and left the account as it is and just accepted the dmp payments?
I’m a little confused now!
Thank you again for your advice
Sara (Debt Camel) says
In this situation it doesn’t really matter why it’s not showing as defaulted, you need to ask for it to be corrected by having a default date back in 2008/9 added, as this article describes.
John says
Hi
Just thought I would provide an update.
Barclaycard have said the correct information is showing and no default was ever applied. (Although Experian doesn’t show my Barclaycard debt the other two CRAs are still showing it.)
However! Barclaycard have stated they going to remove the debt from all CRAs and this can take up to 8 weeks, they said they would go back to August 2010.
The debt has been cleared so nothing is owing on it now anyway.
Have I to take this as a ‘win’ and check after Christmas to see if its all updated, as if they date it from August 2010 that will go from my file in July 2016 (or should). They said they it shouldn’t have been defaulted, but yet by removing it from the CRAs isn’t this just the same to admitting fault without really taking full ownership?
They also gave me a £50 cheque for any ‘stress’ caused (winner)!
Sara (Debt Camel) says
I love it when a lender says they haven’t done anything wrong but then removes all the problems and gives a “goodwill” gesture for stress!
Elizabeth says
I started a DMP back in 2009. Most defaulted and have dropped from my credit file, however 1 DCA remains with 2 accounts running. Both these accounts continually show arrears each month. I once received a ‘Default Notice’ for 1 account back in Dec 2013 (!) in the post which I have a copy of, but this doesn’t appear on my credit file as a ‘Default Date’ at all, just in a DMP – from Dec 2013 (!). I have written to the original creditor and the DCA (current) to ask them to back date the ‘Default Notice’ to 2009 and to ensure it is recorded this time, and for them to correct the date of my DMP to 2009, not 2013. Please can you confirm this is the correct course of action? (Im going through the other account now). Otherwise these accounts will stay on my credit file forever won’t they, until I have settled + 6 years? Are they allowed to send me a Default Notice but then just not record it with the credit reference agency? They are putting me in arrears each month because they haven’t recorded the monthly payment correctly on my account at their end, from my StepChange budget plan, is this also allowed? I have also copied in StepChange to correspondence.
Thank you so much for any advice.
Sara (Debt Camel) says
Yes, it sounds as thought a default should have been added back in 2009/2010.
re the monthly payment, you need to check with the DCA what their balance on the account is and check with StepChange what they think it is.
Elizabeth says
Thank you. The balances are correct for each account, however 1 inparticular, they knock off the credits made (i.e £15.44 StepChange) then add ON debits (i.e. THEIR minimum payment £68) = Arrears £2075.11, on a total current debt of £2446.74, so obviously, the arrears increase each month, just because they are not recording the StepChange plan correctly. Reading this back, it sounds ridiculous, its not right is it?? Then they are recording arrears on my credit file ?
Sara (Debt Camel) says
This arrears figure doesn’t really matter if the balance is correct.
Are you expecting something to change in your situation, because on that DMP payment it will take a to longer than 10 years to clear the debt? Have you talked to StepChange about what other options you have?
Elizabeth says
I am hoping to get the default date corrected to May 2009 (when I started the DMP), instead of their Dec 2013, a year after it was sold to a DCA. All other creditors did this and there by have dropped from my credit reference file in May 2015. Their own recorded information is incorrect, causing the arrear markers each month which I’d imagine will be showing that way for the next 3 years, unless they bring this in line with the DMP or (original creditors) correct the default date preferably, so as it drops off altogether. Im trying to clean up my credit file. (Im due for review with StepChange and are able to increase my monthly payments now so this will be paid off much sooner rather than later. I may need to potentially move house in the next year or so). I hope this all makes sense, many thanks for your advice, much appreciated.
Terry says
I received a default notice relating to a credit card back in May 2013. Leaving aside the fact that the notice was defective, I have received now a letter from the original creditor (the alleged debt (there is a dispute over the existence of a valid credit agreement) having been sold to another company) saying they have now registered a default on my credit file. They have apologised for not giving me 28 days notice but this was due to a “system error”.
My understanding of your article is that they cannot now register a default with a default date of 2016 and would have to back date it to 2013, otherwise, I will certainly be prejudiced by their delay.
However, the additional question arises of whether the original creditor who no longer owns the debt can register a default now, even if they back date it.
Thanks for any clarification.
Sara (Debt Camel) says
Yes they can.
Rob says
Hi,
I had a current account with overdraft limit with Barclays and in early 2014 I got into unexpected difficulties and went over the overdraft limit to the extent that I couldn’t keep within it.
I called Barclays immediately and did a full income/expenditure analysis and the current account was closed and went into collections and I agreed to repay £50 per month which I have done on time without fail.
I never received a default notice on the account, just a reminder that it was over the limit. I also never received any formal t’s & c’s type paperwork for the new collections agreement, just a letter to say “we have accepted your offer of £50 per month”.
I have just checked my credit rating and it has been wrecked due to the fact that Barclays have listed this account as ‘defaulted’ EVERY SINGLE MONTH since early 2014 despite the fact I’ve been paying it off and the balance has gone down (as can be seen on credit rating).
I called Barclays collections and they said, “yeah, that’ll happen as it’s the old closed account which the money isn’t paid directly into(!), and yeah, it’s in the terms and conditions that it’ll default you every month.”
Now I would never have agreed to this and never had any t’s & c’s of this nature, I would have found another solution, had I known.
Can I get them to change what they have put on my credit rating? I have no way of settling this account at any more than the £50 per month that I am paying.
Many thanks!
Sara (Debt Camel) says
Probably not. Realistically if you can’t afford more than you are repaying, what could you have done differently, what other solution would there have been? Probably nothing:(
Jack says
Hi I took out a loan with now defunct loan company in 2007.
A year later I lost my job and could not make the monthly payments.
Although they didn’t agree I started paying a few pounds a month.
They wrote me a few times but I continued making payments.
The company was dissolved but I continued paying under the same details.
I never did check my credit file back then but about a year ago I did so and saw my credit rating was excellent with no records of any outstanding debts.
I am still paying the same token payments but I’m wondering if I should just stop.
I have no idea where that money is going now or even if the account it is going to is live.
I’m just worried that if I do stop, then something will appear on my credit file.
Pretty sure the loan amount was never fully paid, but I cannot be totally sure.
Sara (Debt Camel) says
The debt will never reappear on your record – if it does you can ask for the default date to be corrected back to 2008/9 and it will vanish again. If you are contracted by a debt collector, you can ask for a statement of the account to see how much is owing and make a new arrangement to pay. The only problem comes if the debt collector can’t find you and goes for a CCJ… it’s pretty unlikely but not impossible.
Jess says
Hi
i have a problem with a Vanquis credit card I took out in 2009. I stopped being able to afford the full monthly payment in October 2012 due to poor health. I have continued to pay the agreed £5 a month to clear this debt and Vanquis have froze all interest.
On checking my credit file today I have noticed that AR marker was placed on the account in October 2012 but every month since an DMP marker is showing. It will take me about 15 years to clear this debt and so am concerned that this will affect my file for 20+ years which seems very unfair. Can I insist that Vanquis add a back dated default to the account?
Many thanks in advance
Sara (Debt Camel) says
Yes, you can ask for a default date to be added. But it would also be a good idea to to to a debt adviser about what your options are as 15 more years sounds a lot too long.
Sarah says
Hello,
I wondered if you could give some advice?
In 2006 I found myself in a lot of financial difficulty & ended up arranging a DMP with CCCS (now stepchange) which i am still paying to this date.
Most debts defaulted and have since dropped off of my credit record. One however, originally Home Retail Group which passed the debt onto Moorcroft Debt Recovery is still showing on my Credit Record as Argos Card Services and has a ‘6’ marker each month since Jan 2011 and the status is late payment with a balance of £323.
I wondered if this account should’ve been marked as defaulted and subsequently should have naturally dropped off of my credit record & what I can do to try and get the default added for the past – I was under the impression that a debt should be marked at default after 3-6 months of late payments or at the point in which it was passed to a debt collection agency?
Can you give any advice on what I should do?
Thank you
Sara (Debt Camel) says
This article above looks at how to get a default date added.
I would also say that this is a very old debt. I think you should consider asking the debt collector to produce the CCA agreement for the debt – if they can’t then the debt is unenforceable in a court and you could consider stopping paying it. See this National Debtline fact sheet https://www.nationaldebtline.org/EW/factsheets/Pages/getting-information/credit-agreement-advice.aspx and talk to National Debtline if you want to know more.
D G says
Dear Sara,
First off, what a fantastic website! I love the information on here, it is fantastic :)
I’m in a bit of a predicament and trying to mortgage. I, stupidly, took out a loan when I was 21 for rent arrears, when I was at University. The Credit Union never notified me that my account would be defaulted. They transferred the action to chase for it with CCL Collections. When CCL called I set up an arrangement for £10 a month and slowly increased this. At the time (2011ish) I asked them if it would have any impact on my credit file and they said, and I quote, no because I am making payments to the account. I left this after it had been agreed.
About 6 months ago, my Experian report was clear, no defaults or record of the debt. I then got turned down for my first Mortgage and found that a default had appeared. I proceeded to fight my case with the Credit Union who then stated that the debt was never sold on, they still own it. The date of the default is about 9 months after the original default occurred (with the wrong address I might add and then they said this was my responsibility). I explained the above to them and because i’m now in a better financial position with a job, I paid off the entire debt with CCL. They have agreed the date is wrong, but after a few months still haven’t changed it (with many phone calls / letters) and it remains as a open defaulted account – still with the wrong date. The Credit Union never notified me about the default, until I saw it, and now argue they just follow “best practice” as they aren’t subject to the same rules.
I’ve sent a prove it letter with no response, but I feel the only alternative is to contact the ICO / FSA. Any suggestions to do deal with this would be greatly appreciated.
Thanks,
DG
Sara (Debt Camel) says
A credit union should report to a credit reference agency in the same way that any other lender does. Obviously the current balance should be showing as zero. If they added a default 9 months after you got into problems that sounds too late, it should have been 3-6 months.
Whether you have a case to have th default removed is more tricky. You were given incorrect information originally, but it seems that the CU may not have been reporting the debt to a credit reference agency at that point? Had you told the CU or CCL that you had moved? The CU should have notified you they were adding a default, the fact they didn’t, or sent it to the wrong address, plus the fact that you repaid it in full when you found out could mean that the Financial Ombudsman decides a fair solution would be to delete the default.
Sending a Prove It letter for a debt you have repaid is pointless, it won’t get you anywhere.
Its not clear if you have complained formally to the CU. if you haven’t I suggest doing this and saying what you want to happen – the balance to be set to zero and the default to be deleted. Then take the complaint to the Financial Ombudsman if the CU doesn’t sort this,
DG says
Hi Sara,
Sorry for the delayed response. It would appear they weren’t reporting the information, but they claim they were. Under a SAR would they have to disclose proof, since it’s personal information?
I did tell them I had moved and they claim that they didn’t receive any correspondence, but this seems unlikely as CCL had the correct address and you would think they shared it. I have raised a complaint with the FO, but they said they can’t do anything till I get a final response… which GCU keeps telling me they have sent. I have complained to them, but I think I will formalise this again in writing. I was thinking of the prove it letter in regards to stating, where was the proof that you told me I’d get a default. If that makes sense.
This has just been a nightmare :( My next steps are to send them a formal complaint and then to do a SAR if I don’t get a satisfactory response. To be honest, all I want them to do is amend the default date to an earlier timeframe and that way it will drop off this year anyway.
Thanks again for your fantastic assistance. This website is brilliant.
DG
Sara (Debt Camel) says
Have you complained to them in writing already? If you have and that is more than 8 weeks ago, you can take this to the FO now saying it has been over 8 weeks and they haven’t sent you a Final Response.
Adrian says
Hi.
I have a question, I had a loan some 14 years ago and due to my circumstances I was unabe to pay and defaulted on the loan. I have not payed anything towards this loan for around 10 yrs now.
I have not acknowledged this loan since then but it still appears on my credit report with a default date of March 2013!!! How do I get this corrected without acknowledging the debt?
Sara (Debt Camel) says
Hi Adrian it sounds as though this debt is statute barred. If it is, then it doesn’t matter what you say at the moment, it will always be statute barred, see https://debtcamel.co.uk/statute-barred-debt/. I suggest you write to the creditor along the lines suggested in this post asking for the default date to be corrected to sometime in 2006/7. You could also point out that you haven’t made a payment to the debt since and that it is now statute barred.
Dan says
Hi
This may seem like a weird question but thought I would see if I could get any opinions on it. Any advice would be much appreciated :)
I had an Egg credit card in 2007 which after a few years became a Barclaycard. In 2010 I started a spiral of debt with pay day loans and 2012 saw this escalate. I’ve just discovered this great site and started the complaints process for the PDL companies and got my credit report ready and noticed that barclaycard had put a default on the card. From September 2012 I made no payments to the credit card and the default is dated June 2013.
My query is that this is the month where I finally got help and put everything into a DMP including the barclaycard. I’m not too sure on any laws surrounding this but it seems unfair that they would default me the same month I started paying them (more than what the minimum payment was for the card) which was also 10 months after the first missed payment.
Do you think it would be worth anything to contact them to see if they would either backdate the default to within 3-6 months of the first missed payment or even (cheekily) ask for it to be removed on the grounds that they waited over 10 months and then defaulted when I started paying them back?
I know it’s a long shot but I’m in such a better place these days and although the last 2 years I’ve paid all cards on time etc my credit score is very poor and would love to be able to try tidy this up even just a little.
Many thanks
Dan
Sara (Debt Camel) says
Hi Dan,
I don’t think your cheeky option stands much chance, if you had paid the debt in full the month they added a default you could try it, but going onto a DMP, no. However you can indeed ask them to put back the default date a few months as it should have been when you were 3 to 6 months in arrears.
If you are interested in a long shot and you still have a balance owing on this Egg/Barclaycard, you could ask them to produce the CCA agreement for the debt – if they can’t, or it isn’t in the correct format, then they can’t enforce the debt. Template letter here: https://www.nationaldebtline.org/EW/factsheets/Pages/getting-information/credit-agreement-advice.aspx.
Good luck with the payday loan refund claims – for anyone reading this that hasn’t heard of these, pop over to this page: https://debtcamel.co.uk/payday-loan-refunds/
Dan says
Hi Sara
Thanks for the reply. I didn’t think I stood much chance getting it removed, but even getting it backdated 6 months means it drops off 6 months earlier.
Unfortunately the balance was paid along with the PDLs in full last year after a few years in the DMP, but will see if I can get it backdated. They can only say no. Thanks again.
matt cutler says
Hi this is a really helpful thread,
I had some money problems back in 2011/12 due to unrelaiable income. I ran up credit card debt which I struggled to pay. In july I entered a DMP with stepchange money charity. Total owed was £7k. £735 to barclaycard and £800 and £5.6k to the coop bank between 2 cards. Payment arrangements were made with my 3 credit cards. I then honoured my DMP until feb 16 when I received a large amount of inheritance. I paid off the remaining total in full. Midway through my DMP the debt rom the coop cards was passed onto a collection agency (Link Financial) and defaulted in march 2014. There is now no record of the credit cards before this date on my noddle credit file, I haven’t checked experian/equifax yet. but I believe the coop may of defaulted the debt in july 2012 however I have no notice/evidence of this.
I am now looking to get on the property ladder with a small flat. (purchase price under £100k) I have had a better job for the last 3 years and earn £20k. Now with my inheritance I have a deposit of around £45k. My credit score is ‘very poor’ I have been trying to improve it and wondered if it is worth contacting the collection agency to adjust the date of the default back to july 2012 whenI started the DMP, alternatively ask them to remove the default as a AP was in place for the duration of the DMP. which would be better with my chance of getting a mortgage aprroved?
many thanks
Sara (Debt Camel) says
A default should have been added to each debt when it was 3-6 months in arrears. This may not have been the start of your DMP, it will depend when you missed payments. Check Experian and Equifax to see if you can see the original debts there, see https://debtcamel.co.uk/best-way-to-check-credit-score/.
There is no reason for the defaults to be removed – a default is normal on a DMP debt until you are making pretty large monthly payments.
Getting defaults added in 2012/3 will help you a lot with a mortgage application, see https://debtcamel.co.uk/dmp-mortgage/.
Iain pickard says
Hi just reading this article above, is it true that a default can’t be issued till 3 -6 months after missed payments?
I missed payments in Nov and December 2013 whilst I entered a dmp with DFH who took my 2 months payments I was paying to my loan company as admin fees. As a consequence my loan company entered a default on my file despite being contacted by DFH to tell them I was on a DMP.
Any help will be good
Sara (Debt Camel) says
A defuat can be added when you are 3-6 months in arrears. After you started paying your DMP, your “arrears” would have continued to build up so at some point a default should have been added.
The earlier this is the better, as it will disappear from your credit record after 6 years.
If your DMP is still going, you should consider switching it to StepChange, they will give you exactly the same DMP but not charge any fees each month, so all your money will go to repaying your debts.
Iain pickard says
This is the response from pounds to pocket, please note my payments were due the last day of the month. This is from their final response.
DEFAULT
You were granted a personal loan from Pounds to Pocket on 21st August 2013. This was due to be repaid in 12 instalments of £105.60 over a period of 364 days. Per your signed loan contract, we use credit reference agencies (CRAs) to verify your personal information and determine your creditworthiness when making a lending decision. We also report to CRAs on your account activity with Pounds to Pocket.
We received three payments towards your balance in August, September and October 2013. The account was forced into default on 30th November 2013 after two missed payments. (Per your contract, “Unless otherwise agreed, you will be in default under this Loan Agreement if you, at any point, have 2 consecutive payments that remain unpaid after a scheduled Payment Date.”) You were sent a Notice of default sums via email on this date. As the next payment was also missed, we sent another Notice of default sums on 1st January 2014. On the same date we also sent a Notice of Arrears.
On 16th January 2014, we received notification of your debt management plan. At this time your loan was called due so no further interest would accrue. You were sent a notice of acceleration on this date.
In the above described communications you were notified that the status of your account had been changed to “In Default”, and that this would be reported to CRAs. We also included information from the Financial Conduct Authority (FCA) on what you can do if you are behind in your loan repayments.
A default was reported to our CRAs on 16th January 2014. As the loan was accelerated, the default has been recorded correctly on your credit file, per the terms of your loan contract. As the loan has since been repaid in full, the status will reflect on your credit file as ‘settled’, however, the default recorded on 16th January 2014 will remain for a period of six years.
Sara (Debt Camel) says
When was the debt fully repaid? How much did you pay to it in total?
Are P2P correct that you paid on time in Aug,Sep,Oct? So the fist payment you missed was Nov, then Dec, then your DMP started paying in Jan? Is all that correct?
Iain pickard says
Hi Sara,
The loan was for £700 and I paid £1267.67 in total. I have finished paying the debt off last September via the DMP. You are correct I made the first 3 payments and the next two payments were not paid to p2p as my dump company kept these payments for admin fees. (I wasn’t aware of this till recently, it was hidden in tand c’s).
The payments were due last day off each month and the dmp was paid on the 22nd of Jan, therefore the default was reported before they were paid my 3rd payment. On the 16th Jan. In an email, they sent me re a missed payment it states that if you miss 3 payments you will be reported to CRA.
Therefore I feel they have reported me incorrectly and impacted my credit file.
Andrew Thomas says
Hi I got into trouble with a credit card in August 2010 and missed two payments. I spoke to the lender and agreed a payment plan which I stuck to until 2012 when my wife was made redundant and her dad died in an accident. During this time I again missed two payments and asked if I could reduce the original payments but the lender declined and registered a default against me, despite me explaining the circumstances.
My problem is that had I just defaulted back in 2010 then the debt would disappear this month but because I made an arrangement I’m in a worse position than someone who had been completely irresponsible and just left the debt. Is there any way for me to get the default date backdated to November 2010, 3 months after I originally got into difficulty?
Sara (Debt Camel) says
Hi Andrew, it all depends how much you were paying in your payment arrangement. If the payment was quite low, then your “arrears” against what you should have been paying would have been mounting up quickly. When these got 3-6 months, the lender should have added a default even if you were keeping to your payment arrangement.
NB I just want to make sure you realise that getting this debt off your credit file isn’t you only problem – if you still have a balance outstanding that still needs to be repaid.
Andrew Thomas says
Thanks Sara,
I have been paying off the balance since the default was imposed and intended to continue to do so,
I was paying a fair amount when I made an arrangement but less than the minimum payment so was still in arrears even after 2 years
I’ll write to them and see whether they are prepared to do that
Andrew Thomas says
An update on this and maybe some helpful stuff. I questioned the default when it was applied in 2013 and MBNA wrote to me explaining their reasons for the default. I was advised by CAB not to bother challenging through FSO regarding reasons for default because MBNA could do what they liked. So when in December 2016 year I contacted fso to look at my case they essentially said they couldn’t because I’d missed the 3 month deadline. So if you think you have a case write to fso immediately after the lender has turned down your appeal.
I then went to ICO who yesterday told me that despite the three years between my arrangement to pay and the default being applied MBNA had not breached the data protection act and the default date was correct because I had made an arrangement to pay and then failed to keep up with it, so in their eyes that is the point at which the relationship with MBNA broke down, despite me making an offer to pay a substantial monthly repayment. So my second bit of advice is, as Sarah alludes to, if you suspect you wont be able to stick to an AP amount suggested by the lender then just default so it will drop off your credit file quicker.
Lee says
Hello,
I took out a loan with Natwest in 2008. However in 2010 I started to arrange a token payment each month as I went off to uni and was no longer employed. I have honoured my payments ever since.
Recently I looked at my Noddle report and it says there was a default put into place in July 2013. After talking with Natwest and their CRT team, they informed me that the default date was wrong and said they would remove it. However this is probably not a “win” for me…Surely the date of the original DMP roughly should be my original default date (2010). This way, the debt will be off my credit report however I will ofcourse carry on paying my DMP until I can make full payment again.
What should I do? Do I go back to Natwest and argue the toss again and ask them to put the default on but as 2010? or will the AP keep running and no default date will appear?
Sara (Debt Camel) says
I agree your default should be 2010/11 and that would be better for you than APs forever. So yes. ask NatWest to correct as this article says.
If you ever get any money, a full & final settlement offer would probably be the best way to sort out this debt, see https://debtcamel.co.uk/debt-options/less-common/full-final/
Mark says
Hi, I recently wrote to my bank regarding my default notice. 28 days has now passed and I still haven’t had a reply from them and I sent my letter recorded delivery so they haven’t got any excuses that they never received it. So I was just wandering if anyone knew where I stood now and what more can I do.
Thanks M
Sara (Debt Camel) says
You could go straight to the ICO as this post suggests.
Mark says
Thanks for that. Also the reason I wrote to the bank was experian said I had a default on the account which I was confused about so I signed up to equifax noddle and clear score and they all say that I have no defaults on my credit report. Why is this
Thanks Mark
Alex says
I complained to Lloyds in 2013 after speaking to the ombudsman. After nearly 5 years, Lloyds have investigated and agreed that the default put on my credit file should have been recorded years earlier, they are now willing to remove the default, and have offered compensation too. But the default is due to come off the end of 2017 anyway. Meanwhile, the collections agency Lloyds sold my debt to put my account on hold while I was dealing with the issue, so no repayments have been made to them. However, they put a default on the account too. Basically, I want to know if I’m doing the correct thing by allowing Lloyds to remove the default, and do I need to notify the collections company to do likewise? Please advise.
Sara (Debt Camel) says
Lloyd’s should be backdating the default so the debt drops off your credit record, not removing the default. If they have agreed what the default date should be, you should tell the debt collection agency to use that date as well.
A good use for the compensation would be to offer a full and final settlement on the debt!
Alex says
Thanks for your reply. Yes, you’re right they have backdated the default to 2007 in order to remove it, and I had planned to offer the compensation to the 3rd party… They have apologised for ‘letting me down’ which is putting it mildly – as I originally complained to them 3 years ago – and have offered a nominal amount for the ‘upset and frustration caused’. which is far from the amount required to settle the debt, 75.00 to be exact. I have to get back to them regarding accepting their offer. Any further advice would be appreciated.
Sara (Debt Camel) says
How much trouble has it actually caused you?
Alex says
To date I have had to make numorous phone calls many have been lengthy – one exceeded an hour. Including calls to the Ombudsman, debt advice agencies, and 6 calls including a letter to the other company. Drafted approx ten letters, which took considrable time to produce, including the last letter I sent them, which they ignored for a month until I chased it up. The letter they sent out to me took a fortnight to arrive, and since then I have attempted to call back – as instructed – to discuss the letter, and the person dealing with my case is never available, left messages, but there’s been no reply. Worst of all, the entire issue has affected my health considerably.
Sara (Debt Camel) says
You need to list all these communications, with dates (January 2015 will do if you don’t remember the exact day). And the delays, errors and failure to communicate from Lloyds. Say you think £75 is inadequate and you think you should get £x. Realistically they are unlikely to pay out a fortune – it is a shame you didn’t take this case to the ombudsman in 2013 and have avoided much of the hassle.
Elizabeth says
Hi Sara
Following my previous lonnnng postings (sorry!), I have now received a reply from Moorgate, basically saying, “I note you have received a response letter from MBNA regarding your complaint and that their response should be satisfactory”. Goodbye.
I have gone to the FOS so I am now awaiting them looking into this hopefully. Interestingly, when I arrived home today, I have a further 2 letters from Moorgate, stating that from 12.12.16, they have sold my debt on to Idem Capital Securities Ltd (wonder if this is because I complained to them & MBNA that they haven’t recorded my account properly nor the very late Default Notice they sent me in 2013 – which should be 2009 with MBNA!). Ahh…onwards & upwards!
Bless them….they are trying their best aren’t they!
Sara (Debt Camel) says
Well they are probably trying your patience…
adam says
hi,
I’m on a repayment plan with hoist portfolio for a defaulted Barclaycard account which they passed to the DCA. the CC account defaulted last year, a hoist portfolio account got added to my credit report,ive been paying this for months now but hoist still keep reporting a defaut each month to Experian is this correct? I’m worried that if they keep adding defaults it will never drop off my credit report.
regards
Sara (Debt Camel) says
The is correct. The DCA account should have the same default date as your Barclaycard had. Once an account is defaulted it will always be marked as defaulted each month. From the credit score point of view, this doesn’t matter – it is just one default. And the record drop off your record 6 years from the first default date.
adam says
ok thank you .
Andrew says
Default or Not?
I will be very grateful for an advice regarding my ongoing battle with Southern Water:
I’ve rented a place in May 2015. On June 22nd of 2015 I have received a bill from Southern Water asking me to pay £219.88.
They offered me to make either a full payment or to pay in two installments: £96.11 now and £123.87 by the 1st of October 2015.
I have decided to pay in installments ,so I have paid £96.11 in July 2015, leaving me with a payment of £123.87 due by the 1st of October 2015)
Due to the honest mistake on my part, the second installment was not paid until 24th of December 2015 (I have paid the water bill from Portsmouth water for the similar amount in September 2015 and I was under impression that all my water bills have been settled).
Southern Water has issued a default against me on 13th of December 2015.
My argument is that the default was applied incorrectly as my account was less than three months in arreas (payment due by the 1st of October 2015, payment made on 24th of December 2015).
Southern Water argues that my account became in arreas on the date they have issued a bill (22 June 2015).
According to their logic they had a right to register a default against me on 23rd of September 2015 and it doesn’t matter that the first installment was paid on time and the second one was not due till the 1st of October 2015.
so who is right?
Andrew
Sara (Debt Camel) says
Did they contact you between 1st October and 13 December 2015 to say that you had missed a payment?
Andrew says
Yes.
They sent two notices – one on 22 October and the second on the 12th of November . I have ignored the first one thinking the bill was already paid.
I was abroad when they have issued the second one and I have paid the full amount on my return to the UK .
I am not arguing with the fact I was late with a payment, but I believe three months rule should be applied to the date when the payment was due, which is the 1st of October 2015 and not to the date the bill was issued which is 22nd of June 2015. I did not apply for some form of debt restructuring or reduced payment plan with Southern water. The wording on the bill was – pay the full amount in full or if you want – do it in two installments.
I believe three months being in arreas rule is here for good reason so people who abroad, ill, in temporary financial difficulties etc have a bit of breathing space to realize they have a problem and do something about it. in my case I have missed a payment which was due on 1st of October.
I have started to receive a warning letters after that date and I have resolved this issue within three months.
If companies start applying this rule to the date the bill was issued and not to the date the payment was due – it leaves little time for customers to correct their mistakes and makes a mockery of this law.
The definition of being in arreas is :”The amount of the arrears is the amount accrued from the date on which the first missed payment was due”
My first missed payment accrued on 1st of October 2015.
Sara (Debt Camel) says
yes, I’m not disagreeing with you, just looking for extra ammo for your case! I am not sure if you have yet put in a formal complaint to the water company – if you haven’t, do so now, explain the source of your error and that you were then abroad and corrected it within the 3 months from the date you failed to make the payments.
Andrew says
yes. I did lodge a formal complaint against them and their final response was:
“In your own case, we billed the initial invoice on 22 June 2015. The bill itself clearly states that payment is due in full straight away . It also states that if you want to pay by two installments, £96.11 should be paid initially,and £123.87 by 1 October. The first payment of £96.11 was received on 14 July 2015, and your payment of £123.87 reached us on 29 December 2015. Accordingly this part of the debt was more than three months in arreas by the time the Default was registered on 13 December 2015”.
“The Default will not be removed .
While I do not underestimate the impact this has had, we are unable to remove the Default registration because appropriate steps in debt recovery were taken.The entry has been marked as satisfied since 17 January 2016.”
This is Southern Water reply to my complaint launched through Consumer Council for Water.
My complain is still being reviewed by Consumer Council for Water and I will go to WATRS if it fails.
I was refused a mortgage as a result of having this default registered against me so I will use all avenues available to me to fight it.
I am prepared to pay for the Legal help with my case, but I would like to know if I have a reasonable chance to succeed ,hence my posting on this forum.
Thank you so much for your replies.
Sara (Debt Camel) says
Legally I think they are right that payment is due straight away. But that doesn’t mean that is the correct date to calculate arrears from. You have clearly set out your case, I am not sure that paying for legal help will add anything useful. Good luck!
Andrew says
Thank you for your advice.
I have also contacted Information Commissioner’s Office and asked for their opinion on Southern Water actions and if ICO thinks their rules has been applied correctly. I suppose a lot depends on what ICO thinks about my case , so I will consider whether to take a Legal action or not after I receive a reply from ICO.
I will keep you updated but it may take some time before the final decision is taken.
Andrew says
I was studying ICO “Principles for the Reporting of Arrears, Arrangements and Defaults at Credit Reference Agencies” and I believe there is a requirement for lenders to report an account as being in arreas before the default can be applied.
Extract from their document:
“Calculating and reporting arrears
In general, the reporting of arrears is designed to indicate that the expected payment,
whether a fixed sum (as in the case of many products) or required minimum (in the case of
credit and store cards), has not been paid according to the terms and by the due date.
The purpose of reporting arrears is to indicate at the earliest reasonable opportunity that a
customer is showing signs of potential financial difficulty.
Arrears are reported as missed payments through status codes such as 1, 2 etc which are
based on the number of months missed.
Generally by the time the account is 3 months in arrears, the lender may be taking further
action such as reporting the account as defaulted”
I did check my credit file report and I did not have arreas reported on my account.
The only two entries from Southern Water are December 2015 – default has been applied and January 2016 – default has been satisfied.
So I believe they had no right to issue a default before reporting my account as being in arreas for three months.
The agreed and expected payment date in my case was the 1st of October 2015. So Southern should have first reported my account as being in arreas on 1st of November (status code 1), then on 1st on December (status code 2) and finally on 1st January 2016 (status code 3).
After this they should have issued a notice to apply default, so the earliest the default could be applied in my case is January 2016.
I believe when Southern Water offers customers two options to pay :
1) pay the full amount now
2) pay in two installments by the agreed dates
they are creating two different credit agreement scenarios , so different rules apply to different scenarios.
in scenario 1 they are right to claim that the payment is due from the date the bill was issued. So providing they have reported the account as being in arreas for three months and then giving a default notice , they can issue a default three months from the date of the bill .
In scenario 2 they can only report the account as being arreas after the first missed payment, which in my case was the 1st of October 2015 and
not the date when the bill was issued.
Sara (Debt Camel) says
Yes, but it’s not me you to convince …
Angela says
Hi I wonder if you can help me I’ve been on a dmp since 2009 with Churchwood and then moved to Stepchange in 2014. I had lots of debts and some have dropped off 3 overdrafts with NATWEST and a loan. The overdrafts have dropped off my credit file however the NatWest loan is still there as it never defaulted it just says I’m arrears. And on a DMP.
Whereas the others did. I am making regular payments to NatWest via my DMP. and have nearly finished (6months approx) however the NatWest loan has never been recorded as a default so it on there for another 6 years ruining my credit rating.
Is there anything I can do.
shouldn’t this have been defaulted along with everything else years ago in 2009/2010. I feel like it’s NatWests way of punishing me, despite the face I’ve never hidden from the debt and made regular payments monthly.
Please help because I don’t know where I stand at all
Thanks
Sara (Debt Camel) says
Hi Angela, it sounds as though there should have been a default date added earlier – as the article above says, write to NatWest and ask them to correct this.
Angela says
I rang NatWest today and asked for a default to be put onto the account when it actually defaulted in 2009/2010. They are getting back to me. It did seem like they took it seriously. Not going to hold my breath have to wait and see. I did argue the ICO guidelines in the article
Angela says
Hi Sara!
Heard back from NatWest today and they agree the loan account should of defaulted along with the overdrafts back in 2009 , so have agreed to alter my credit file and remove this date!
Thanks so much for your advice, I really wouldn’t have had a clue!
Angela
Pamela west says
Hi I have a closed account with shop direct and they sent me a default notice in 2008 ( which I still have ) when I couldn’t pay what I owed , The account is from 2005 and recently looked at my credit file and the default date is 2013 , which had been passed too lowells who closed the account as no signed credit agreement was signed. On the report it says the default was put in 3 years ago by original creditor . What can I do?
Sara (Debt Camel) says
Write to Lowells as is suggested in the post above, adding that you attach a copy of the default notice you were sent.
Tony says
Hi
I had a loan with First Response Finance which I took out in 2005 over 3 years. It was for my wife’s car and we divorced the following year. The court order shows that she should have taken responsibility for the payments but never did, and there is approximately £3,000 owing. I have had no contact with First Response for well over six years, yet every month they mark this as a late payment with the credit reference agencies. I have tried to have it removed through Noddle to no avail. I am worried about contacting First Direct as it might reopen communication. Would you have any advice?
Sara (Debt Camel) says
It sounds as though this loan should be statute barred by now, see https://debtcamel.co.uk/statute-barred-debt/. If it is (and you could phone National Debtline to talk through the details with them, 0808 808 4000) then you can safely talk to the creditor, it will never become “unbarred”. So you can ask for a default date to be added back in 2006 or whenever payments stopped – this will mean the debt disappears from your credit record.
Mark says
Hi, just to give everyone some hope round Christmas regarding defaults. I had a £3000 default on my account which I paid off not realising I had defaulted on it. So at the start of November sent Halifax a letter regarding the default which I had no reply for over a month. Sent them a second and today received a letter saying they apologies and they would remove it straight away plus they gave me £150 for the inconvenience it had caused many!
Good luck and Merry Christmas
Sara (Debt Camel) says
Excellent – thanks for letting us know!
Leighanne says
Hi, this is the closest article to understanding my predicament, thank you for creating it. I was wondering if you could offer some advice, or point me to legislation which would verify the correct outcome for this scenario please?
I have been in dispute with Virgin Mobile since June 2013, when they incorrectly terminated my contract. (Something I have tried to contest via CISAs, who unfortunately did not review the evidence Virgin submitted in detail, or they would have spotted the clerical error noted in their documentation. Unfortunately for me, they do not re-open cases once they have made a decision.)
Therefore, I have wanted this to go to default status so that it can stop affecting my credit within 6 years; as I feel like I no longer have the energy to keep contesting the dispute 2.5+ years later. This phone agreement has been showing as 6 month late payment arrears ever since Jan 2014.
Recently, Virgin randomly decided to default the account as of October 2016. I have complained via Equifax that the date is wrong and should be Jan/Feb 2014. Virgin refused to acknowledge my complaint on 3 occasions simply stating each time that they believe it to be accurate and request the balance be paid in full.
However, they now claim that they will backdate the default to when the CISAs decision was made… please note, no date was provided by them and no changes have happened to my Equifax report. CISAs made their decision on 18 March 2016 which does help my credit somewhat, but I feel like I am still being penalised for something that should not even exist and want it backdated to Jan/Feb 2014.
Is Virgin’s statement correct or should it follow ICO guidelines that a default will be noted 6 months after failed payments?
Sara (Debt Camel) says
It should follow the ICO guidelines. Put in a complaint to the ICO.
Jim says
Hi,
In 2012 I finally went to a DMP after my payday loans spiralled out of control. At the time I had a loan with a high street bank (BankA) and an arranged overdraft for £500 which was almost all used. While arranging the DMP, one of the payday loan companies took around £1000 from direct debit, putting me in the red on my BankA current account by £1500.
On initiation of the DMP, the BankA loan was paid with the normal agreed payment — I was never behind on the payments, or had decreased payments from the original agreement, the main difference was that BankA was being paid from the DMP (CCCS).
The current account was closed and payments were made as per the DMP agreement until the account was settled.
I feel it was unfair that I received two defaults (one for each account) on my credit file. In your experience, do you think I have a reasonable case to take up to the ombudsman?
Thanks for the help!
Sara (Debt Camel) says
Are you saying the loan was paid in full as per the original agreement? that would be unusual in a DMP ?
Jim says
Hi Sara,
For the BankA loan, the original contract payment was about £119 per month. When I entered the DMP, this was the same amount they allocated to that loan from my gross monthly payment to CCCS.
Thanks
Jim says
Just to clarify, my payment actually increased under the DMP — you can see from the below, in Nov. 2012 (when the defaults started and CCCS contacted BankA) the payment went to about £150 / month from around £100 / month, and the loan was paid back earlier from when it was supposed to.
2013 873 731 589 447 305 163 21 0
2012 2,233 2,137 2,037 1,937 1,834 1,730 1,624 1,516 1,407 1,298 *1,157 1,015
2011 3,213 3,194 3,110 3,030 2,947 2,864 2,777 2,691 2,604 2,513 2,422 2,328
Sara (Debt Camel) says
In that case a default shouldn’t have been added. or any late payments. Realistically it won’t make much difference to your credit score getting this one default removed, but it doesn’t sound right.
lee says
Hi
I studpidly took out a loan from Txtloans (now Myjar) in April 2012.
MYJAR have recorded one month in arrears on my credit file and have recorded 1s from May 2012 up to March 2015 when this loan was eventually repaid.
I have asked Myjar to correct this as surely they cannot record the status of 1 for 36 months but they state they cannot do this.
I realise that this will stay on my credit file until March 2021 – but i want them to default me in May 2012 which will go in May 2018.
What do you think and what will be my course of action
Thanks
Sara (Debt Camel) says
I think they should have defaulted you when you were 3-6 months in arrears, which would have been July-Oct 2012 from what you say the dates are. Write to them as per the article above and ask them to correct this.
If you had other payday loans, you should look at whether you were given unaffordable loans, see https://debtcamel.co.uk/payday-loan-refunds/
lee says
Thanks for the reply.I have contacted MyJar who have refused to do this so am left in limbo now
Sara (Debt Camel) says
Complain to the ICO as the above article says.
Ronald says
Hi! I have a default in june 2013 under Cabot financial which is £229. If I will pay this whole amount now will it be deleted in my record and is there any chance that it will improve my credit rating? Thanks.
Sara (Debt Camel) says
If you pay it it will be marked as Satisfied with zero owing. The debt will be deleted in June 2019. Paying it starts the process of rebuilding your credit rating, but it will depend what else is on your credit record.
Ronald Duco says
To be honest, i have 6 defaults in my credit record including this which is june 2013 and the 5 defaults are in May 2011. I was so young and doesn’t care about credit score during that time. I got some letters from them but haven’t got any ccj or court action with my defaults so is it worth paying my 2011 defaults and wait until it will reach 6 years and I will just pay off my 2013 default? Plan advice. Thanks.
Sara (Debt Camel) says
Can you afford to pay all the defaults now? If not, what percentage could you afford to pay? Are you being chased by and debt collectors at the moment or paying anythiong to any of them?
Ronald says
It says from my equifax that the current value of borrowing is 2,739. I cannot afford to pay this in one go maybe by instalment yes and if I will start paying this will my defaults still gonna drop after 6 years which is this year 2017 and 2019 for my june 2013 default? Thank you.
Ronald says
I haven’t chased any debt collectors by the way. Thanks.
Ronald says
I got some letters from Cabot. They said they are not gonna make any legal case because of my circumstances. What should I do? Should I negotiate them by Paying monthly? Will my default will drop off after 6 years even if I am still paying them? Pls help.
Sara (Debt Camel) says
could you copy out the passage from the Cabot letter please?
DP says
Hi,
Does anyone know if a bank MUST put a ‘default’ against a bad debt or if they can just leave it ?
I had about 12 bad debts in 2009 and then started a DMP. I have been paying a small amount via the DMP to each creditor for the last 6 odd years. Most of the other accounts have now dropped off of my credit file but one, which was sold on to PRA Group is still on my credit file and marked as ‘Arrangement to pay’. I rang PRA and they said the account was never put into default by the bank when they sold the debt, so now it will stay on my credit file for years until I finish paying the debt, …and then a further 6 years after is finally says settled…basically ruining my credit file for the next 10 – 12 years.
Any ideas would be greatly appreciated. !
Sara (Debt Camel) says
Yes, you can ask the bank to add a default as this post suggests. When they do, PRA will have to use the same default date.
DP says
Sara,
Thank you very much for all your help.
Much appreciated.
Jibran says
Hi,
I have few defaults and some defaults are small which I would like to partial or full settled, is it a good idea? and if I do partial settle will it still remove after 6 years of original default date? my all defaults are from 2011/12
Sara (Debt Camel) says
Settling defaults is definitely a good idea. Partial settlements will still drop off 6 years after the default date.
Suzy says
Hi Sara,
Had a secured loan with Barclays -they sold it on in January 2016 -it went 3 months behind in December 2011 its now 6 /8 behind,
Barclays only added a default in September 2015!
Can i write to the new owner as its showing their name now and get the default back dated to when it first went 3 months in arrears. That was December 2011 NOT September 2015 !
That way it will drop off my credit file in December 2017 this year.
Your thoughts please ..Thanks
Sara (Debt Camel) says
Hi Suzy, probably not :(
As the article above says, there aren’t definite rules for mortgages and other secured debts. In general both borrower and lender want to work together to find a way forward that doesn’t involve repossession, so “defaulting” debts early on may not help. If you don’t have an arrangement in place to repay the arrears, you need to be talking to a debt adiser about them.
Suzy says
Hi Sara
Thanks , i always had an arrangement in place , so why from 2011 no default and in 2015 they decide to add on ??
Just seems a bit odd ?
Can i challenge this late entry ???
Sara (Debt Camel) says
My guess is it was added when they decided to sell the debt on. You can ask for it to be backdated, but they may not agree because as a secured loan there are no set rules, “3-6 months” say, that they had to stick to.
There is a reason behind this. If you had trouble with some credit card 7 years ago, a lender now would think that doesn’t matter. But if you ar still behind with a secured loan that does matter, so it’s there on your credit record warning other lenders.
Suzy says
Sara
Update i queried this with credit agency who contacted the lender who didnt even bother to reply !
So the cra have deleted the default unless/until they here from lender.
I also raised the complaint with the lender who wrote to me promising a full investigation i hope to hear from them by beginning of March , i will keep you updated as to what they say/decide
Holly says
Hi Sara,
I have just been alerted to a default being added to my credit file by British Gas for a property I sold in 2010 – they have the default date as January 14th 2017. I don’t believe I owed anything to British Gas in the first place, and even if I did, surely they can’t just default my account almost 7 years later. This has just destroyed my otherwise clean credit file.
Sara (Debt Camel) says
So you have two problems, first whether you owe them any money and second that if you do, they have got the default date badly wrong. You ned to put in a complaint to British Gas for both of these points. It should be easy to get the credit record sorted (see the points in the article above), but you also need to get the issue of the alleged debt resolved or they might take you to court for a CCJ. Ask them to produce a statement for your account. Check if you are being billed for suppy that happened after you left the property. Check the date of the last bill – if it is more than 6 years ago the debt may be “statute barred” – talk to national Debtline on 0808 808 4000 for more about this.
Frank says
Hi
I took out a loan years ago with txtloan, myjar has now added a default back dated to 2012. I have no idea if this was correct or when I received a letter re the default, I was in major debt at the time. Is there anything I can do?
Thank you
Sara (Debt Camel) says
So you don’t remember if you defaulted on the loan? Did you only have the one loan from them, or would there have been previous ones that you repaid?
Frank says
Sorry bad English. I did have a loan with txtloans but I was in debt with them however I’m pretty sure I never got a default. The default appeared randomly just last year on my credit report. Not heard from them at all.
David says
Thank you for all the helpful information on this site.
8 years ago, I entered into a debt management plan, which I completely paid off. 6 years ago, I was suddenly made redundant and had to change the level of payment to all my debtors, as I had a lot less money coming in. I continued to make smaller payments, but 3 companies put defaults on my credit report at the time of the reduced payments happened. When I look at my credit reports on Experian and Equifax now, it says the date of the defaults are in 2011. However, when I look at the breakdown of the months across 6 years, for the period of 60 to 72 months, they are showing no issue and green ticks against my account, but from the second year of 6, there are suddenly a load of red default symbols that correspond with the reduced payments. When I got a job, I increased the payments up.
My question is obviously, which is the default date when this debt will disappear from my report? Is it the date mentioned as Default Date or 6 years from the first red default sign? I understand that I could ask one of these Credit Report Agencies, however, I am really nervous about drawing their attention to this. I hope this query makes sense.
Sara (Debt Camel) says
The date of default for a debt should be the same as the first red default symbol on that debt. Is this the case?
David says
Sorry for my confusion. I now realise that when I paid off my debts they froze the updates.
The good thing is that my 2 defaults will be 6 years old in March and June, when I presume they will no longer be on my record.
Maz says
Hello Sara,
I’ve tried to have a default date changed to no avail. The original debt from Very was passed to Arrow Global(2009), to which the defaulted me in 2015!
I have received this response;
Equifax Customer Services
Staff Account Administrator
No Change by Arrow Global
The lender has advised that :
This account had a fixed payment of £**.** due on the 30th of each month as per the T&Cs, and as this was not adhered to the account was placed into default. The customer was sent monthly statement which advised what to pay, a notice of arrears and a notice of default. We are satisfied this account is being reported correctly. The default will remain for a period of 6 years from the date of default.
Next steps advice would be greatly appreciated! Many thanks
Ps I was on a DMP that allocated payments on set date and no payment was missed. This has been cleared and this default hanging over me!
Sara (Debt Camel) says
As the article above says, complaining to a credi reference agency isn’t worth the bother – they ask the lender who replies, no, the default is right. Instead you need to complain to the lender as the article suggests.
John says
Hi Sara
I have a quick question, I’m currently in the process of clearing all my debt, I’m currently dealing with the final debt now.
Its for a Burtons store card, I started having issues in around 2008, now this is with Robinson Way, when I was on my DMP for some reason they haven’t been paid in around 3 years or so!
I asked RW when the account defaulted, they said “As this is a pre-defaulted account, the debt has not defaulted on your credit file, and as such no default date.”
Now I have checked my the main 3 CRAs, and the debt isn’t showing, now I would have thought if it hadn’t defaulted and they got paid within the last 6 years it would still show on my account, just with no payments, then it would drop off after 6 years from the last payment date? If it had defaulted and they have been getting paid or not, it would just drop off 6 years from the default date. I really don’t know if the account has defaulted or not now?
Ideally I would just like to pay the amount owed and be done, but just a little concerned that they would just create another date on the account, can they do this?
Sara (Debt Camel) says
“As this is a pre-defaulted account, the debt has not defaulted on your credit file, and as such no default date.” What a bizarre statement. I think they mean it was defaulted by the original creditor more than 6 years ago so it has disappeared from your file.
If you settle this now it won’t reappear. If it does, this is an error and you can ask for the default date to be corrected as the above article says.
NB RW will probably be very happy to accept a partial settlement, see https://debtcamel.co.uk/debt-options/less-common/full-final/.
John says
I was a little concerned by the statement, its all on email and I will be keeping it, doesn’t really make much sense, just seems like the use of jargon for jargons sake and confusing when it doesn’t need to be.
I’m waiting for them to confirm in writing the amount as it has just been email contact for now, then I will make the partial settlement offer, the debt is £390 and the have offered a payment of £240 (give or take a few pound and pence) so I think I will just accept this, its not a bad offer considering I haven’t asked for it, I think its just under 40% wrote off.
Also on another note, if they do apply the dates and it does appear on the CRAs again, who am I best to write to? The debt was with GE Capital for a Burtons store card, however I think Newday now deal with Burton store cards? Would it be the original issuer or the new one?
John says
Just had this response
“Following my initial email, as this debt has not yet been defaulted on your credit file. However, if this account defaults and shows on your credit file, paying a reduced settlement figure will mark your credit file as partially satisfied, as opposed to satisfied if the account balance was paid in full. Also please be advised this will remain on your credit file for 6 years from the day of default.”
Can that be right? can a debt this old not have defaulted, does a debt have to default to be passed on to a DCA?
Sara (Debt Camel) says
I think there is a very good chance that nothing will ever appear on your credit record. If it does, you can ask for the default date to be corrected.
It may feel better to get this all “confirmed” in advance of you paying them, but as the person you are corresponding with seems a bit confused, that could be a long process. You could reply that any default date would have to be in 2008 or 2009. Who knows what answer you will get though.
John says
Well I rang them last night and made the payment for £240, as a partial settlement, will see what happens now.
He was a little clearer on the phone, he just gave the usual spiel that we have to let people know the debt will be marked as settled or partially satisfied, blah blah..
Just going to see what happens, I think I am just a little wary as Link Financial were a little bit naughty and reapplied dates and they shouldn’t have, not had any issues with any other companies.
Viv says
Can you please offer me some advice, after a marriage split I reached the limit on my HSBC credit card as well as another credit card. My debt was short of £6,000. I decided to set up a direct debit to pay minimum payments. Payments were being met every month After roughly 18 months the bank rang me January 2016 to say they would stop the interest and I could clear off the balance quicker. I offered to pay £100. After checking my score I have noticed that it is showing as a default, I have never missed a payment even before they contacted me to stop the interest. Can they do this it shows all payments that I have made in the past! On the back of this the other credit card sent my details on to a credit agency again last year even though I missed 2 payments, this is also on my credit rating as a default.. I have less than £2,500 left to pay as a total with no other debt whatsoever,however my credit score is so low I am not sure who I need to speak with. Should these defaults be on there in the first place? Please advise, many thanks in advance.
Viv
Sara (Debt Camel) says
That is an odd story – banks don’t often do that. They should have explained to you the effect on your credit score if you wanted them to freeze interest. As it’s only a year ago, they may still have the phone call recording – I suggest you put in a complaint saying what happened, that you feel you were misled.
Spiralling Debt says
Hi, Recieved email notification of Default Notice from a Payday Loan lender (previously told them I do not have access to the email or acknowledge the debt) however, this is the second Default Notice as one was applied back in March 2011, then the entry dissappeared from credit report due to FCA investigations.
Are they allowed to submit another Default with a date of 5yrs difference after the redress involvement?
Sara (Debt Camel) says
You got redress in 2011? Which lender was it?
Spiralling Debt says
Sorry.. redress was November 16 CFO
Originally defaulted a £300 loan on experian logged as £940 March 2011.
Had emails come through for various amounts upto £1400 with charges. Disappeared off report end 2015/start 2016, phone call in Jan saying I now owe £525 following fca involvement… today default notice for £525…. so that’s two defaults 2011 & 2017 for a Nov 2010 debt.
Sara (Debt Camel) says
I’m not clear why the default would have disappeared end 15/16… that doesn’t sound as though it was related to the Nov 16 redress.
No there can’t be two default dates for a date – you can reasonably ask this to be corrected to March 11, which will be disappearing in a couple of months.
You may also want to consider if you could get any more redress from CFO or refunds from other payday lenders, see https://debtcamel.co.uk/payday-loan-refunds/.
Mike says
Hi, I am in need of some advice and hopefully you can help. I have been in a DMP through a third party company since 2010 with 4 creditors. I had assumed they had all been defaulted (received default notices for them all and didn’t know any better at the time), but I have only recently realised that one of them never was (the last of the other 3 is about to come off my credit report).
The problem debt was with Barclaycard who sold it on to Link Financial. On my credit report it has been a a mixture of of between 1 and 5 months late for the majority of 2010 and then 6 months late from Jan to May 2011 with Barclaycard. Then since it has been with Link it has been in a constant state of 6 months arrears since December 2011 (for some reason there are no inputs at all between July and Nov 2011).
I am now stuck on how to move forward. Can I get them to add a default back sometime around 2010 or 2011 when the reduced payments started, so that it comes off my credit report? Other than that I am in a position to make them an offer for F&F or to pay the outstanding amount in full, but I am not sure if one of these is better way to close it with regards to my credit file and the next few years, if this was the way I had to go, as it would leave it on my file for another 6 years from now!
I have asked the company running my DMP to ask about it not being defaulted, and they came back to me to say Link had said that since a payment was being made then it wouldn’t be defaulted (even though I have only ever paid around 15% of the contracted payment each month). It seams that I am being unfairly treated compared to someone who say, didn’t make payment at all.
I would really appreciate any advice as I seam to be going around in circles to find an answer. Thanks!
Sara (Debt Camel) says
Barclaycard send you a default notice for this debt?
Mike says
A debt collection company acting as agents for Barclaycard (Mercers), is this the same? It was dated Nov 2010.
Sara (Debt Camel) says
Yes. I suggest you put in a complaint to Barclaycard as the above article says – also say they should have added a default to your credit record at the point they sent you a default notice and incl;ude a copy of the the default notice.
If they correct this, Link will have to use that default date.
John says
Hi mike
I had a similar problem with BC and link, I think link is the worse dca ive dealt with.
Any way, I wrote to BC and although they said everything was ‘right’ they amended the account applied a default so it dropped of from the CRAs and gave me £50 for the stress caused!
Write to BC, and see what happens ?
John
Matt Burley says
Hi,
I need a bit of advise please.
I have been on a DMP for the last 6 years, and everything has been going great, I am just a few months off of paying off all my debt.
Today I received a letter from Barclaycard (whom I now owe the princely sum of £487.00.) telling me they are about to put a default on my account.
After speaking to them the 6 years have passed and I can now no longer pay via my DMP.
The representative did tell me that it should not be a problem as my default date would be March 2011 so would be on my credit report for about a month, if that, as the six years would have passed, then be removed as if nothing happened, then I can continue on my DMP but pay no interest.
Does this sound correct?
I’m so close to finishing I really don’t want to ruin it now as I currently have no defaults (Somehow!)
If only I had the four hundred odd pounds it would be so easy, but Stepcahnge does not want me to pay it off any way as it is unfair on my other creditors (there is only one.)
Thanks in advance for any help.
Matt
Sara (Debt Camel) says
IF Barclaycard are proposing to add a default of March 11, that is great news. It means the entire debt will vanish from your credit record in March 2017. Otherwise, when you clear the Barclaycard debt it would stay for a nother 6 years, showing that you have had an arrangement to pay … much better for it to go. I know it sounds weird, but a correctly dated default, a long while ago is much better than no default.
Matt Burley says
Wow, Thanks for the speedy reply, and the advice.
The thing I’m most worried is that I misheard them, but I take it they can’t set the default to now leaving it with 6 years to run from 2017.
Does it have to be from when I first defaulted, or can they start it from when they like?
I have never missed a payment on my DMP and for the last year or so have paid them more a month than they required.
Thanks again.
Matt
Sara (Debt Camel) says
You could ask them to put it in writing to you if you are very worried. They can’t pick a recent date, nor a date at random,, it should be back at the point when your account was between 3 and 6 months in arrears. If they do put on a more recent date you can ask them to correct it.
Matthew Burley says
Hi Sara,
I’ll get in contact with them again just to be sure.
Thanks again for your advice, you’ve been more than helpful.
Sincerest regards,
Matt
B Robinson says
Hi Sara,
I’ve had a few defaults over the years. Which have all been paid back. I now have two left, one ended this January and one was by everyday loans, I still owe them about £2400, but this last debt will be paid off by next year. I had entered into a dmp a few years ago but when I checked my credit score a few months ago, I realised to my shock that everyday loans had placed a default on my account. The default has been on there since April 2014 I don’t understand because I have never missed a payment on my dmp. I think this was unfair and I received nothing through the post to advise me of this. I have kept up to date with all my bills for the last three years. I’m trying to buy my council property but no financial institution will help me with a default on my account. Just wanted to know where do I stand.
Thanks
Sara (Debt Camel) says
See https://debtcamel.co.uk/dmp-credit-rating/ for how a DMP should affect your credit record. The default is probably right, but check whether the default date is correct.
Also https://debtcamel.co.uk/dmp-mortgage/ about the problems of applying for a mortgage whilst you are in debt management.
Karen Mac says
HI
I have just checked my credit file and noticed an account that was never on there before (I check it monthly) from British Gas saying that i owe £179 from 2008. The only thing that is showing is a default issued Jan 2017. IF I owe this money then i have no recollection of it as we moved from that address in 2010 and as i’ve said, i’ve never seen anything about it before now. What can i do about it as I’ve just started getting my credit rating in a good shape
Sara (Debt Camel) says
You aren’t the first person to report that British Gas has added a new default recently for an old debt :(
I suggest you email a complaint to them at mailto:customercomplaints@britishgas.co.uk. Say you dispute the debt because you were never informed about it, that if it does exist it is statute barred, and that the default date should be back in 2009.
Karen Brown says
Thank you. I have said this to them and they have told me that ‘processes have changed since 2009 and that’s why it may have been only just flagged up’ but that they will ‘look into it’ so guess I will see what they come back with
Sara (Debt Camel) says
Their processes may have changed but the law on statute barring hasn’t ( see https://debtcamel.co.uk/statute-barred-debt/) and neither has the ICO’s guidance that a default should be registered when a debt is 3-6 months overdue. Let’s hope they correct this speedily!
Rose Macey says
Hi
Ive been in a DMP since January 2010 (due to finish 2018) Barclays have just sent me a letter to say they are now closing my account and because its not settled they are serving me a default notice, something they didnt do when I went into my DMP in 2010, I have been advised by Barclays that even though they are serving me the Default Notice in April 2017 it will be back dated to Jan 2010 therefore it should be both entered and removed from Credit Reference Agencies, what I would like to know is this true because I dont want to be left with another 6yrs extra added onto my debt file when i’ve only just cleared my 6 year mark.
Sara (Debt Camel) says
What BArclays are saying is correct and this is the correct thing fro them to do – add a default date back in the past.
Are they selling your account on to a debt collector?
Rose Macey says
Yes they are, are the new debt collectors allowed to default me?
Sara (Debt Camel) says
Yes, but they have to use the same default date as Barclays, so it will never show up. You need to keep that letter from Barclays and produce it if the debt collector ever adds a record with no default date or with a recent one.
Rose Macey says
Thank you!
Karen Brown says
I have contacted British Gas by phone and after going back and forth for two days it’s finally been found out that there was a glitch in their system and defaults that were previously closed had been reported again! It will be removed within 48 hours apparently but how many more people has this happened to that don’t even know about it?!
Sara (Debt Camel) says
Hi Karen, I have just done an article on this problem https://debtcamel.co.uk/british-gas-default/ – it would be great if you could add this new information over on a comment there. Like you I am wondering how many more people have been affected?
Clive Barton says
Hi there,
I have a credit card debt that has been in 6 months arrears for 4 months, so is now ten months in arrears. I have had no contact with the lender to date so should this not have been defaulted by now? Can I get the account defaulted? Problem being I don’t want to contact them yet as I’m not in any position to make any repayments.
Thanks.
Sara (Debt Camel) says
When you do get in touch you can ask for a default to be added, but it doesn’t make any difference to you at the moment, does it?
Liz says
I would like your advice on this please. I opened an account in 2010 and due hardship I couldn’t make payments so I asked them to put my account on hold (which to their contract I could). Well without them notifying me they sent me to collections and then started making payments with them. Well I couldn’t make payments at one point. They put a derogatory mark in my credit score in 2015. My question is which of these dates would be the default date? And what could I do?
Sara (Debt Camel) says
sorry you are living in the USA, this site only covers UK debts
Ant says
Great articles Sara, I think I have some mileage on making a case regarding a recent default, but I’m not sure which way to take it.
Long story short, most of my debts fell behind in 2012, some were defaulted then, some in 2013, but one, Barclaycard, didn’t default until last September. I have checked my credit history – I can’t see back beyond 2012 for some reason, but I know for certain there were 3 or more missed/reduced payments there, in line with the other accounts, and my credit record clearly shows 4 missed payments in 2014 also.
I’ve looked back at correspondence for last year. I have an Arrears Notice that states the following:
24/06/16 Previous arrears, Due: £0, Paid £0, Unpaid £0 (does this mean that there is no issue at this point?)
25/07/16 Minimum Payment, Due: £101, Paid £0, Unpaid £101
23/08/16 Minimum Payment, Due: £101, Paid £0, Unpaid £101
The next letter, dated 24/10/16 is to state that my account was closed and transferred to Link Financial on 30/06/16.
I checked two credit reports today, and neither show a default registered against Barclaycard (one report is missing the Barclaycard account completely, the other the account as ‘up to date in July and August, and ‘Settled’ in September ), but both reports show a default registered on Link Financial on 14/09/16 – i.e. before I was technically 3 months in arrears with Barclaycard, and before Link took over the account?! The Link financial credit history starts in September 2016 on both credit reports.
I don’t know how to pursue this – do I attempt to get the default moved back in line with the other defaults in 2012/3? Do I attempt to get it removed altogether as I wasn’t 3 months in arrears when it was applied? Who actually applied it, and more importantly, who do I approach to challenge it? Thanks in advance.
Sara (Debt Camel) says
do you agree the amount should be about £101? Are you in a position to pay this? Have Link contacted you?
Ant says
£101 was the agreed amount as part of a DMP, and I had been making regular payments until July 2016, but then was no longer able to pay, though I am in a position to pay it now. ‘Asset Link Capital (ALC5)’ wrote to me on 24th October 2016 (same day as the last Barclaycard letter) to inform me they were transferring the debt to ‘Link Financial Outsourcing Ltd, and one more from Link Financial to ask me to contact them, but I can’t find anything else since then.
Sara (Debt Camel) says
In that case you could ask Barclaycard to correct the default date to be 2012.
Ant says
Thanks Sara, I’ll hopefully post an update on whether I have any success
Tom says
hi i have had a default on my account by avarto solotuons in 2015 for an account with a payday loan lender in 2010 surely this not fair and illegal i have contacted them and they have stated they know nothing about it but when i raised a dispute with credit expert they came back in one day saying it was right i dont know what to do, i have emailed alot back and forth and am getting no where.
Sara (Debt Camel) says
I suggest you say you dispute the debt and ask them to produce a copy of your credit agreement and a statement of account, template letter and more information about how to do this here: https://www.nationaldebtline.org/EW/factsheets/Pages/getting-information/credit-agreement-advice.aspx
Mick says
Hi Sara,
I had an ex partner in 2010 who took some kind of mail order out in my name. Long story short the first thing I knew of this was in 2015 when I was sent a bailiff letter telling me I had a default. I rang Lowell credit agency and explained that I didn’t even know what this was for. They explained it was for a mail order and because it was in my name if I didn’t pay they would send collectors round. The bill was for £100. I paid it in full and settled but what I don’t understand is how I have a default 5 years after the mail order was taken out? It’s just cost me buying my first house as all lenders have rejected me on my credit score. Any way I can have this date put back to 2010?
Sara (Debt Camel) says
Yes you probably can have the default backdated. Do you have a statement of the account? Did your ex ever make any payments to it? Do you know the date it was taken out?
Mick says
Hi Sara
So the original order was taken out in August 2010 and as far as I could gather from the credit agency no payments what so ever were made. I only had a statement from the Lowell credit people. That’s why I was so puzzled. Gutted really! Should have took better care of my details.
Sara (Debt Camel) says
OK, so you could ask for a default to be added in 2010-11, see the letter in the post above. That should be dropping off your credit record immediately.
Your other approach would be to say that the debt was never yours and ask them to produce evidence that you took it out. But as you have already paid it and back-dating the default should work well for you, there doesn’t seem much point in doing this.
Sara (Debt Camel) says
Sorry when you said “bailiff letter” do you mean it was an actual letter from bailiffs? Have Lowell’s obtained a CCJ? If so, what date was it?
Or do you mean it was a letter from Lowells threatening court action and bailiffs?
Mick says
Hi Sara
No CCJ just threatening bailiffs. The envelope had all the red writing (scare tactics I presume) over it. I’ve checked my credit score and it’s definitely a default.
Sara (Debt Camel) says
Ok, that’s good because a CCJ would be much harder to tackle at the moment than the default.
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.