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?
screwedbylloyds says
Sara,
So glad of this site and your absolute sound advice, you’re an absolute legend!
I contacted Lloyds over my default date which following your posts on here I knew was wrong. Well I never, I opened the mail yesterday to a cheque for just over £1k!!!! I jumped up and down on the spot! They admitted to adding the default 4 years too late AND shouldn’t have applied interest like they did and they paid the bit off I never on my full and final settlement offer, so that debt will disappear but will be fully settled when it drops off within 6 weeks.
I couldn’t be happier to get my own back on that bank! I know now two other defaults they applied that dropped off this year were incorrect too.
What shoddy dealings in my opinion.
NEW ADVICE REQUIRED
Not sure if this is correct but I had two old Barclaycard debts neither were defaulted and would have dropped off my credit file later this year however, the debts were sold to Link Financial…..now, the Barclaycard debts are showing as settled and closed but Link have now added them to my credit file as new debts?!?!?! Which means they will be on there for 6 years! Can they do this?
I am waiting for them to contact me re payment and when they do will only be offering a F&F payment but that means that will stay there for 6 years. Seems another way to screw your credit.
Sara (Debt Camel) says
Glad the lloyds ones have been sorted!
“two old Barclaycard debts neither were defaulted and would have dropped off my credit file later this year” if there was no default date, why do you think they would have dropped off later this year? When did you stop paying them?
screwedbylloyds says
Ah, I thought everything dropped off after 6 years, I’m guessing not.
November 2016 was the last payment made and June this year they sold to Link. I had one letter that was very brief in, how are you going to pay but not heard from since.
Sara (Debt Camel) says
No, something drops off 6 years after a default or 6 years after it has been settled.
Yasmin Mohidin says
I’m so glad I stumbled over your site – the information is extremely useful. However, can you please clarify a point for me? I have 5 defaulted accounts and all the defaults started in 2012. I make token payments each month of £1 per month to each debtor. Theoretically, therefore, these debts should drop off my credit report. What I want to know is will this make me more attractive for a mortgage or should I offer to settle the debts as well? Or will nothing help me in obtaining a mortgage? Many thanks!
Sara (Debt Camel) says
You need to settle these defaulted debts before applying for a mortgage. See https://debtcamel.co.uk/dmp-mortgage/ for details.
Linda says
This might sound like a really stupid question but is a ‘late payment’ recorded on my credit file the same as a ‘default’? A company I have complained about to the FO have put a late payment on my credit file even though they said they were putting my account on hold for 30 days. They deny doing this but it is there quite clearly for September. I have approached the FO who said they should have given me notice and to complain. I just wondered if it was the same thing before I progress a complaint?
Keogh McArthur says
So glad I came across this post! Currently trying to fathom why my default date for a loan I settled in July just keeps shifting on a month in terms of start date, thus never reaching the 6 year mark! Frustrating calls with NatWest to get to the bottom of it. Is it typical to see this happen on your credit file until the creditor updates the CRA’s the account is settled. Even then, though, if an account defaulted I didn’t think settlement had any bearing?!?
Sara (Debt Camel) says
This shouldn’t be happening. I suggest you work out what you think the default date should be based in this article, then put in a written complaint as the article suggests. Much easier that trying to sort this out over the phone with call centre staff that have little idea what they are talking about.
Keogh McArthur says
Thank you Sara and sage advice! Sadly the contact centre agents really aren’t clued up.
Very grateful for your direction and fantastic articles ?
Suzy says
Hi Sara
12 ROWS OF 6″S THEN A DEFAULT ADDED PRIR TO THAT HAD 3, 4 5
CAN I ASK FOR THE DEFAULT DATE TO BE CHANGED FROM SEPT 2015 TO WHEN THE ACCOUNT WENT 3 MONTHS IN ARREARS
IT IS A SECURED LOAN , I ALSO HAVE A ATP IN PLACE NOW HAVE HAD FOR AGES NO MENTION OF ATP ON MY CREDIT FILE
CONFUSED WHICH IS THE BEST APPROACH FOR ME
Sara (Debt Camel) says
Probably not. There are no set rules for when a default should be added for secured loans.
Once there is a default, this can never be changed to a ATP.
Suzy says
Hi Sara
Thanks for reply
But can they delete the default in its entirety then instead??
Sara (Debt Camel) says
You haven’t suggested any reason why they would agree to this.
Suzy says
Hi Sara
Loan been behind on and off since 2011 was at least 3 payments behind December 2011 can default be back dated until December 2011 why add one in 2015 ? if it had of been added then it would be off Dec 2011
Also default added to credit file Sept 2015 default notice sent to me dated 17 Sept giving me until 8th Oct 2015 to clear arrears
They had already added default to my credit file before notice was sent , giving me no time to clear arrears !
I find this unfair , what do you suggest i do ??
Sara (Debt Camel) says
As I have said, there are no set rules for when a default on a secured loan should be registered. Also getting this secured loan to drop off your credit record won’t make any difference at all to a mortgage application as it will be obvious to any potential lender that you have a secured loan which you have defaulted on.
A lender does not have to give you advance notice of a default being added to your credit record if you do not clear arrears.
I appreciate you think this all feels unfair but it’s not obvious that there is anything you can do.
Shaks says
Hi Sara,
My Barclaycard account along with other debts (Sainsburys Card, Loan and MBNA Card) went on a debt management plan in mid 2011.
All accounts bar the Barclaycard defaulted in early 2012.
Barclaycard kept showing as an arrangement to pay. Then in 2016 they decided to default it AFTER the debt management company kept paying into incorrect accounts leading to delays in payments reaching the account. The debt management company (now no longer around) said Barclaycard would only date the Default to December 2014 not to when the arrangement to pay started and advised me to check my credit file then speak to Citizens Advice Bureau if I want it backdating to 2012.
Now the debt has been sold to Link Financial. I called them today about this. However they say they can’t help as this is all from before they took the account on and advised me to speak to Barclaycard and then the FInancial Ombudsman. I don’t believe Barclaycard will do anything about this or speak to me as they are no longer the owner of the debt. What should I do? I’m worried that my credit file is going to be ruined for a further 3 years yet when it should be clean by March 2012
Kind Regards,
Sara (Debt Camel) says
You do have to sort this with Barclaycard. Link can only use whatever default date Barclaycard used. I suggest you put in a complaint to Barclaycard as described in the article above.
AndynJonno says
Hi Sara,
Im struggling to get my head around this section. I had an overdraft that had missed payments (several code 6 on my file) this was then marked as settled by the original creditor (it was never marked as defaulted). The debt was then sold to a collections company – when will the debt with the collections company “fall off” my credit file? The original lender has advised it will be removed 6 years after the settlement date, will this settlement date also apply to the collections company? I.e. collections company remove or fall off 6 years after the original creditors settled date?
Shaks says
Thanks Sara!
Suzy says
Hi Sara & All
I have a unsecured loan on my credit file that was over 3 months in arrears way back in 2011 , its only been up to date for the last 3 months
Some of the entries are showing as arrangement to pay,
I right in thinking i can ask the lender to register a default way back in 2011 that way it would be removed by now
As i am thinking about a mortgage next year to a downsize and i think the way the unsecured loan was run i may be declined ??
Your thoughts please Sara & All
Sara (Debt Camel) says
Yes if you can get a default added in 2011 it will be dropping off thus year.
It’s not clear if thus will look better to a mortgage lender. Is a default which you haven’t settled better than an old arrangement to pay which you are now up to date on? I’m not sure if us.
NB The lender will be able to see the defaulted loan even though it’s not on your credit record as it will be on your bank statements.
Dottyday says
Hi
Back in 2015 (start) I was contacted by PRA Group who stated they had taken over two MBNA accounts – I asked them for a copy of the agreements and confirmation about what these debts were….they sent me a copy of an undated letter from MBNA to myself stating the debt had been sold/transferred but were unable to send me a copy of the original agreement and I have not received any correspondence since apart from an annual statement.
PRA seem to now show as the original lender on my credit file but the accounts are both closed. The MBNA accounts were both in default way back in 2011 by in excess of 3 months when I arranged a payment plan which i kept up until 2015 when I again had financial problems ….
I am just looking for advice as to whether PRA have any further rights given that they could not furnish me with a copy of the original agreement which I had requested and the letter transferring the debt was undated (and just a template). How do I know when a default has been formally registered – the accounts (2) are shown as closed but to PRA not MBNA although the payment history is MBNA.
Sara (Debt Camel) says
Are the MBNA accounts showing as closed? Do the PRA accounts have a default date on them? Have you had any correspondence from PRA since 2015?
Dottyday says
The accounts that were MBNA are now in the name of PRA and shown as closed (the payment history on these accounts was my payments to MBNA) …there are no other accounts shown on the credit report. PRA did not respond to my request for a copy of the original agreement – they just sent an undated template letter which was supposingly sent to me notifying the transfer of the debt – which I queried – all back in 2015. The only other correspondence has been an annual statement from PRA which I have not acknowledged.
PS – I cannot see a default date on these accounts but they were closed with an outstanding balance
Dottyday says
Sorry I have now accessed Equifax report which is different from the free clearscore….there is a default shown on both accounts in Feb 15 from PRA – the accounts are shown with balances on Equifax ….as I stated before no correspondence from PRA since I requested copy of agreement.
Sara (Debt Camel) says
so the PRC accounts are defaulted but not closed – that is what I would expect. They will drop off your credit record 6 years from the default date.
As PRAC can’t produce the CCA agreement they can’t take you to court for these debts.
Dottyday says
My understanding is that any agreements prior to 2005 with MBNA were not completed correctly and therefore this is the reason they are unenforceable but I also believe there are now questions about whether they can also b e transferred…
Suzy says
Hi Sara & All
Barclaycard default notice said pay by 8th June 2015 sold to PRA ON 5TH August 2015
Credit file says 5TH August 2015 when it was sold to PRA
I think the date is wrong what do you think ??
Please ca you advise
Thanks All
Sara (Debt Camel) says
Not sure it is worth bothering about a couple of months is it?
Heather McCulloch says
I entered a Debt Management Plan in August 2011, I settled with all creditors in February 2017, most of the defaults are all due to come off within the next 18 months except for 1 which did not default until January 2015 which will continue to show on my file until 2021 which may cause me a problem if I try to change my mortgage. Is there any way I can get this default changed to earlier as it took them 3 and 1/2 years to issue default, I contact them to request when I was settling but they just laughed at me and said no.
Sara (Debt Camel) says
who is the lender that thought this was funny? and if it was a debt collector, who was the original creditor?
Heather says
It was the actual lender Zopa
Sara (Debt Camel) says
Were they also adding interest during this period?
Carlos65 says
I am being harassed by BW legal for an old payday loan from payday UK, this was from September 2011 originally for £687 I entered in to a debt management agreement in December 2011 and paid this for 8 months this was then supposed to be paid off this was defaulted by a company called PRAC who said they had bought the debt in September 2012 with a balance of £383 I disputed this as paid off and heard nothing until now from a company called BW legal saying they are working on behalf of the PRA group, I have never spoken with them they send letters and phone me sometimes 6 times a day they have now sent a letter before action from them saying I have until 30 November to fill this in or I will receive a CCJ, when I have looked on my credit file callcredit says the default was satisfied in December 16 which ties in with the debt management plan yet Equifax says the default status is unknown and the default end in September 2018, I think this default should never have been on my file what do you think
Sara (Debt Camel) says
I think your top priority is the letter before action, not your credit record! See https://debtcamel.co.uk/letter-before-claim-ccj/ for my suggestions about how to reply.
Your priorities are:
– to look at putting in an affordability complaint to Payday UK (and also any other payday lenders you have used? A payday loan may have been “unaffordable” even if you repaid it in full on time… and you may be able to claim back the interest you paid. See https://debtcamel.co.uk/payday-loan-refunds/)
– if PDUK say the debt was sold and you need to talk to PRAC, tell PDUK they made the irresponsible decision to lend so you want them to look at your complaint and if they say no, take the case to the financial ombudsman immediately.
Then reply to BW legal within the 30 day period. Putting in an affordability complaint to Payday UK will mean the BW Legal can’t start a court claim until the complaint is resolved. So you use the Reply Form to tell them that you are disputing the original debt with PDUK.
Also use the reply form to say you want a full statement of account for the outstanding debt. That should show what you were paying and may enable to you to sort out whether you actually owe anything at all! And to ask for the CCA agreement for the debt.
When all this stuff about a CCJ is sorted, then will be the time to think about your credit record. If you win an affordability complaint, you should have ALL adverse marks on your credit record deleted.
Dottyday says
Hi Sara,
I stopped making payments to MBNA for about 4 mths in 2010/11 on two credit cards. I managed to sort out finances and entered into a payment plan which I kept up for 36 of 48 months (made redundant)
Letter from PRA in February 2015 but I was still receiving online statements from MBNA on 12/2/15 so debt had not been transferred before this date – PRA registered a default date on 28/2/15 – 16 days after the last MBNA statement. I asked PRA to contact me only via letter (requesting copy of agreement and copy of right to transfer debt). I know PRA sent an UNDATED letter on MBNA paper stating the debt had been transferred – Do they have to give me at least 14 days to respond to a default letter ?
No contact with PRA for about 18 months – not sent copy of the agreement with MBNA – I also think there would have been PPI on both credit cards (Total debt was £4k on combined cards taken out in 2001/2004).
I am thinking of contesting the transfer so I can get Defaults removed- I believe all the early agreements with MBNA were not CCA compliant – therefore unenforceable – obviously the dates in February are very close (MBNA statement on 12th and Default registered by PRA on 28th) The PPI would have been quite high too because I think the combined credit limits were about £9k for a period of 6 and 10 years..
Are there any risks involved apart from PRA coming up with copies of the original agreements – which I think will be unenforceable ?
Sara (Debt Camel) says
1) the 14 days you are referring to is for a Default Notice a creditor has to send before starting court action. It has nothing to do with adding a default to your credit record.
2) I don’t know on what grounds you intend to challenge the assignment to PRA but even if you were successful, MBNA could then add a default with the same date PRA had. Or not add a default at all and leave the debt sitting there permanently in arrears. I am not sure why you think either of these would be better.
3) I am not sure why PPI is relevant? You can try to reclaim it if you want, but it may only be set off against the outstanding balance.
4) I am really not clear what you intend to do or what you hope to get out of it. I can’t advise on the risks.
dottyday says
Thank you….Sara I would ideally like the default dating back to when the account was first defaulted in 2011 – MBNA have closed their account (can they re-open?) ….I know there has been a case recently where the transfer was deemed not to have taken place in exactly the same circumstances as mine – no court action can be taken because the agreement is unenforceable and I’m guessing that the PPI refund would cover the total debt that is still outstanding so wipe out the debt anyhow …. which is fine by me – I dont want a refund but if this can be offset against the debt and wiped out that is great …but I am annoyed that PRA cant actually provide a transfer letter (a dated one – I assume because one was never issued or they just give PRA a template letter to send to everyone and that for a few weeks I was totally hassled with calls and texts until I was able to get advice and stop it – when my parents (both of them had just passed away within 6 months of each other) and they obviously know these agreements are unenforceable
Sara (Debt Camel) says
You need to focus on what really matters to you.
In this case I can’t see that challenging the sale by MBNA to PRA is going to help at all – it won’t get the default backdated or removed it would just transfer ownership,of the debt. So whether of not the other case you have heard of would apply your situation (you can’t always believe what you read on the internet unless there was a link to a published court judgment) this seems to me to be a difficult route that will just waste your time to no purpose.
You can try to reclaim PPI if you want, but unless you are absolutely sure that the PPI is greater than the balance I am not sure why you would bother. Getting the balance change to zero will not improve your credit record. If you want to do this, don’t use a claims firm as then you could have the balance reduced and still owe the claims company their fees!
You can ask MBNA to add a default date to the debt. They can do this even after the debt is sold and if they do, PRA have to change their default date to be the same as MBNA uses.
This would be straight forward with many creditors as the article above explains. But MBNA are VERY dificult to deal with… if you read back through the comments on this article you will see some examples. If they reject your complaint I suggest your first move should be to email the CEO – one previous person commenting here has had a success doing this. Only if that fails should you go to the FInancial Ombudsman.
Jane says
Hello
I have been on a DMP with Stepchange since 2008 and have lost my job so am now looking to reduce my monthly payment. A family member has offered me a sum to settle. I have called my 6 creditors to ask when my debts defaulted – 5 defaults have expired now but one debt with Barclaycard through Link Financial hasn’t defaulted at all for some reason. I am looking to make partial settlement offers to the 5 but now I’m wondering to do the least damage to my credit score as possible, should I try and pay this one debt in full? It’s the only credit card showing up at all on my credit file but not as a default. One other consideration is Link Financial who I am repaying this debt to also are handling two of my others; is it possible to offer partial settlements on two debts and full settlement on one to the same creditor? Would be very grateful indeed for your advice as I am desperate to rebuild my credit score, not damage it further.
Sara (Debt Camel) says
I suggest you ask Barclaycard to add a default date. Link will then have to use the same one.
You need to make the same settlement offer to all your creditors. These debts sound very old… one thing you could consider is asking the creditor to produce the CCA agreement for the debt, there is more about this including a template here: https://www.nationaldebtline.org/EW/factsheets/Pages/getting-information/credit-agreement-advice.aspx.
Whilst this is happening, ask StepChange to reduce your payments to something very low as you are out of work.
Then if a creditor cannot produce the CCA agreement, you could simply stop paying them as the debt is unenforceable in court. Or offer a VERY low amount to settle it.
The rest you can then offer F&Fs to.
Christopher Aitchison-Knight says
Hi Sara,
I’ve a disputed debt with Wageday Advance and they’ve been reporting this as a 6 for over a year now. Can they do this and not declare a default? Can I force them to declare the default from the date the product fell 6 months late?
Sara (Debt Camel) says
I would wait until your complaint about WDA has been resolved – because this should all come clean if your complaint is upheld. If it isn’t, then yes, write to them as the above article suggests.
Alfie says
Hi there
I am looking for some advice. I got into a really bad situation a couple of years ago and fell behind with a number of payments, one been Very. I have found a letter to say that they applied a default notice in November 2015 and then nothing afterwards from Very, until I received a letter from Lowell November 2016. November 16 is the date of the default on my credit file. I have since paid Lowell and cleared the balance I am working hard to clear debts. I contacted Lowell to say that I thought my default date was wrong and sent them a copy of my letter from Very dated November 2015. They are saying that if I had an arrangement to pay the default is still Nov 16, but I didn’t. How do I go about getting this default changed to Nov 15? Lowell don’t seem to want to change it?
Sara (Debt Camel) says
So were you making any payments in November 2016?
Alfie says
I started making payments in Nov 2016
Sara (Debt Camel) says
OK I meant to ask if you were making payments in Nov 15, but it sounds as though the answer is no! I suggest you write to Very, not Lowell, as the article above suggests and ask them to add a default in November 2015. If they do that, Lowell will have to copy that date.
Alfie says
I have written to Very but they have not responded with an answer. I have been told by my mortage broker I could get a good mortage if the default was 2 years old on my credit report. I know the default is 2 years old and have proof. What do you suggest I do next to get this changed as Very are skirting around the answer?
Lisa says
Hi Sarah,
I had a default on a Natwest Credit Card back in November 2012, I have a payment plan set up with a company working on behalf of Natwest, the whole debt was £2400, there is currently £720 outstanding and I pay £10 a month, (I made a PPI claim and they paid the refund directly on the account hence why the amount has come down drastically). My question is, once the 6 years has lapsed (November 2018), will the remaining debt be wiped with the default? Or will the payment plan still continue?
Thank you,
Lisa
Sara (Debt Camel) says
The debt doesn’t get wiped when it disappears from your credit record. See https://debtcamel.co.uk/paying-old-debt/
K says
Hi Sara, I’m Hoping that you can help I have one default registered against me the rest of my defaults have dropped off or paid et cetera but this one that’s left is with Argos card services I went into debt management in 2009 October and all of my creditors were notified for some reason Argos did not apply the default until 2013 I have queried this with them and they suggested that they gave me reasonable time to keep my account up-to-date and therefore did not apply the default because I kept making regular payments albeit I don’t think it was the minimum payment I have spoke to the financial ombudsman just investigator at this point and she seems to think Argos are within their rights to do this i.e. apply the default four years after I actually defaulted with them Please can I have your advice thank you
I’ll just add as well that the debt was only £172
Sara (Debt Camel) says
Had you missed any payments to Argos? You need to find out if the payments were below the minimum, if so how much.
K says
It all went through stepchange when. I checked my credit file there is 5 pound paid Here a £10 paid the missed payment here and mispayment there so nothing was really consistent from step change
Sara (Debt Camel) says
£172 was a really low debt, so the minimums would probably have been pretty low. Have you asked StepChange for a list of when payments were made? Credit records aren’t really a reliable source for this.
K says
I called my debt management company this morning (who were step change) and I asked them about the payments that have been made whilst I was in the debt management plan with Argos, and asked them how much was paid , they have informed me that I paid 5 pound a month from November 2009 until March 2013 they also have a copy of the contracted payment which was 6 pound a month so I was not actually keeping up with the minimum payment
Sara (Debt Camel) says
What happened in March 2013? Did your DMP complete? Did you carry on paying Argos? what date is the default?
K says
We came into some money so were able to pay off the balance the default was registered on my credit file on April 2013
Sara (Debt Camel) says
so was the default added after you had repaid the balance?
K says
Just looking at the credit report it looks as though the default was added in March and I paid the full balance in April
K says
This is the latest reply from ombudsman investigator
I’ve looked at your complaint its individual merits to see if Argos as acted fairly. Here you entered into a debt management plan and there was an arrangement with Argos to make regular affordable payments which they were happy with until 2013. Generally, your credit file will reflect any missed payments, repayment arrangements as well as payment history .
So ultimately, I can’t see that the default should’ve been applied in 2009 rather than 2013. The reason I say this is because in 2009 you had an arrangement which was agreed – at this stage there was still an outstanding balance that needed to be paid. So with the agreed arrangement we wouldn’t say that the relationship between you and Argos was broken. It was only in 2013 were the relationship was broken and therefore a default was applied.
I hope I’ve been able to clarify my reasons better for you, however If you feel that you would still like an ombudsman to assess your complaint please let me know and I can arrange this for you.
Sara (Debt Camel) says
I suggest you go back and say the last regular payment from StepChange was March 2013, that was the month they added a default and you settled the debt in full in April 2013. Say this default seems unfair. If they were happy with the payment fro StepChange they should not have added a default at all. If they were not happy with it it should have been added earlier and not at the point when your debt was settled.
BUT according to the ICO guidelines a lender should add a default when an account is 3-6 months in arrears. As you were only getting into £1 of arrears each month that would not have been until the end of 2012. So what they have done is really not that far out.
Are you hoping to get a mortgage? If this default is the only problem on your credit record and all your DMP debts were paid off, then you will probably be able to get a mortgage now, go to a broker not direct to a high street lender.
K says
Ok will do, yes it doesn’t make sense what they’ve done, yes we’re in the process of a mortgage unfortunately I only saw this closed account that was satisfied after we’d applied for the mortgage , it didn’t come up on Experian and I’ve been able to get credit, mortgage application has gone in with nationwide, husbands busines is doing well so affordability is good, his credit is excellent so we will have to wait and see
Sara (Debt Camel) says
A rule of thumb that applies to many lenders – I can’t say if |Nationwide will use it – is that an old default is OK if it was more than 3 years ago AND it has been settled for over a year. So I hope you will be OK.
K says
Thanks for all your help Sara
K says
Just to let you know we received a mortgage offer today from nationwide! Just goes to show these things sometimes don’t hinder you forever and there is light at the end of the tunnel :)
Sara (Debt Camel) says
Excellent – I hope everything goes smoothly for your purchase.
Alfie says
I previously wrote for some advice and I thought I would update you. Very sent me a default notice back in November 2015 however my debt was sold and the default registered is November 2016. It turns out I made a couple of payments after the default notice which meant that Very said my account was receiving money. However, I have not seen a final default from Very since 2015 or a letter that says that this debt was sold on, until I recieved a letter from Lowell. I have requested these from Very / shop direct as I feel that the default date is still incorrect. I have now settled the debt with Lowell, but would like to the date changed to early 2016 as I know that I did not make many payments to them after November 2015 as I could not afford to. The fact that Very / shop direct have deleted my account from my credit report is making it hard to see when I did default with them, however the default is registered with Lowell. Very / shop direct are not playing ball to give me this information. Any further advice would be appreciated. Thanks.
Sara (Debt Camel) says
I think you have to find out exactly what you paid to very and when. You need a carefully argued complaint showing when you got to 6 months in arrears and how erratic your payments were. Saying things like “not many payments” is not clear enough – you can work this out from your bank statements or send Very a Subject Access request.
Alfie says
Thanks Sara. Will have a look at that
Carl says
Hi there i am looking for some advice, basically i took a loan out with hitachi and made my first months payment as normal, i then changed banks and changed the direct debit to reflect this, however what i had mistakenly done is put the wrong account number in, so hitachi could not take a payment on the 13th of dec and emailed me, i only realised as of today when i checked the account a noticed a charge i phoned through to hitachi and promptly paid the balance and got the dd set up correctly, i am now worried as to whether this will affect my credit file, hitachi could not tell me whether it would, however i think it would be really unfair to put a marker on my file for a genuine mistake, as anyone had a similar experience or could advise me on what could happen
Sara (Debt Camel) says
Most firms won’t add a late payment marker for just a couple of days for a “first offence”, but all you can do is check next month and put in a complaint to then asking them to remove it if they have.
Carl says
Thanks for the reply, that what i was a thinking i currently work in mortgage and we always see if has to be full month before arrears so i assume something similar is there, but thanks for quick reply i will 100% put a complaint in if i see a default but i’ll guess ill have to wait until jan to check, thanks though for you’r response
Sara (Debt Camel) says
you won’t get a default, but you may get a less serious late payment marker
Thomas Prosser says
Hi Sara,
Just a bit of advise and update regarding to mbna accounts that were included in a dmp. These never defaulted but “6” marking recorded on credit report until i recently cleared arrears. Ive always paid via the dmp. I have today been rejected for a mortgage because of these two accounts showing missed payments. They have only shown as being up to date since sept 17 when i cleared arrears. The are marked as AP – Debt Management on credit report. Ive written to the FO and have received a final decision from idem stating that they have acted accordingly and that when in a dmp they are entitled to mark as they have. I have sent this final decision to the FO and expressed i still believe they should be defaulted. I have also responded to idem and made an offer to clear the balance of both these accounts (£800) in the next 3 days if they change these to defaults. Just wanted your thoughts on this….
Thanks
Tom
Sara (Debt Camel) says
MBNA are very difficult to deal with. If you can establish whether you missed any payments and how much you were paying in the early days of the DMP this may help with the Ombudsman. Idem shouldn’t negotiate on this sort of thing but it will be interesting to see what they say.
Thomas Prosser says
Hi Sara, Hope you had a good christmas break. Idem have replied today rejecting my proposal. i have cleared the accounts anyway in full as i want these closed for once an all. the also acknowledge my complaint with the FO and have sent over all requested info. Just in response to the above, i did enter the dmp with idem years ago initially paying approx £10 a month, but circa 2012 i made reduced payments of £3 a month until last year. they are saying that this reduction, even though agreed made the account accrue arrears, and its these arrears that have caused them to mark a late payment opposed to up to date. my complaint to the FO is based around the payments that were made we always pre agreed with mbna/idem so unfair to mark late…..is there any hisorty of cases where mbna have been proven wrong and made to change marking history? Thanks
Sara (Debt Camel) says
I think all these cases are very individual at the FOS. What happened to other people won’t necessarily happen to you and won’t help you much in deciding what to do. You just have to keep on top of your complaint, explain things in detail if you don’t think the adjudicator understands. Good luck.
nicola sheldrick says
Advice needed please. I’ve been on a dmp with stepchange since about 2011 and most of the defaults have either dropped off or are due to drop off wishin the next 12-18 months. One of my accounts was a Lloyd’s tsb overdraft and although this was part of the dmp, I’ve noticed that the default was applied until 2017. I also had a loan with them and they defaulted this in 2013
, should the overdraft have been done at the same time? I’m not too sure how it works with overdrafts so don’t know if I have any grounds to ask for it to be backdated.
Sara (Debt Camel) says
So you stopped using your Lloyds overdraft when the DMP started?
nicola says
I think I stupidly continued to use it for about a year or so, although they was not applying any interest after the dmp was arranged. The debt stayed with Lloyd’s until last year when it was then transferred to Westcot.
Sara (Debt Camel) says
Well you can try complaining and saying the debt was included in your DMP from month/year. But if you were still using the account, they are unlikely to agree that a default should have been added.
Liam says
Hi Sara,
I’m wondering if you can help me get my head around the Default Situation and what the date should be. I took out a loan with Peachy in Sept 2013. I had 5 Months of Arrears up to Feb 2014 but in March 2014 my Account Defaulted and on my credit report each month to January 2015 it has a Default Marker where it was finally satisfied with the Balance being 0. Please can you help me on what this means. Am i right in thinking that the default won’t go off my report until Jan 2021, 6 years after the Account was satisfied or will it be gone 6 years from March 2014 (March 2020).
I also have an argument about the original default date as this was sold to Debt Collection partner- MotorMile Finance UK Ltd on 09/12/2013 .
Any advice would be appreciated.
Sara (Debt Camel) says
This debt will disappear 6 years after the first default date ie March 2020.
Are you making an affordability complaint to Peachy? If you win this, the default will be deleted. This is probably the first route to try, only if that fails to try to argue about the default date’s accuracy.
Liam says
I don’t know if i can because they are saying that i owe the money on the 2nd loan which they haven’t contacted me about but my Credit Rating shows it as satisfied with a balance of 0.
This was their response when i complained:-
Please be advised that you have had 2 loan agreements with us since 18/07/2013.
Your first loan was paid 1 day after the original due date. You are able to find the specific information regarding the first loan you had with us, payment history and details of charges in the attached loan statements.
The second loan was taken out on 17/08/2013 for £250.00. In total we have received from you £15.02 towards the second loan. We have arranged a more affordable repayment plan for you, however the debt in the amount of £507.27 remained severely overdue and was sold to Debt Collection partner- MotorMile Finance UK Ltd on 09/12/2013 .
Sara (Debt Camel) says
The second loan – your credit report only shows it as satisfied because it has been sold. MMF should add a new record for that – have you checked all 3 credit reference agencies? See https://debtcamel.co.uk/best-way-to-check-credit-score/ for how to do this. If MMF haven’t done this yet, they may still do so at some point.
You can put in a complaint about both loans to peachy – if you do this you also need to inform MMF that the debt is in dispute with Peachy. M
If you ignore this debt MMF are very likely to take you to court for a CCJ at some point, at which point it becomes difficult to make an affordability complaint. Complaining now will hopefully get this debt reduced to the original amount you borrowed and bought back from MMF so you can set up a repayment plan with Peachy – it will also mean the default is deleted.
Alfie says
Hi there,
I just thought I would update you on the default that I asked about a while back that had been place by Lowell for a very shopdirect account. Today I have recieved an email to say they are deleting the default and they have offered £100 compensation which is a bonus. I have just checked my credit report and it has already been deleted even though they said it can take 10 days. I am thrilled to bits as this has just help me move towards the mortgage I am looking to get. Don’t give up everyone!
Sara (Debt Camel) says
Well done!
Adam Smith says
Should I clear my debt?
I defaulted on a personal loan around 10 years ago so it no longer shows on any of my credit reports. However, the debt was sold to a debt management company and I am currently paying £50 a month.
I am looking to get a mortgage and the only evidence of any debt is the £50 payments to the debt management company. Should I clear this debt and wait 3/6 months to apply for a mortgage so it is all ‘clean’? or would I be able to get a mortgage whilst still making this payment? We are looking to use the Help to Buy scheme. Everything else is fine, excellent credit scores and affordability is not an issue.
Sara (Debt Camel) says
“Should I clear this debt and wait 3/6 months to apply for a mortgage so it is all ‘clean’?” That is the safest approach. Of course make sure you are not applying for a mortgage to the part of the same group you took this defaulted loan from.
Suzy says
Hi Sara
Can i ask you advice on the following
I have a old barclaycard default dated July 2015 actually they passed it to PRA , i offered PRA a F& F Settlement back last April which they settled and the balance set to zero, to drop off my credit file in July 2021,
I have just found out the account was 3 months behind back in February 2010 , with arrangements to pay in 2011 & 2012
My question is can i ask Barclaycard to get PRA to delete this default now as if it were issued back in 2010 Feb at the 3 month arrears
It would have been deleted Feb 2016.
I need to apply for a mortgage this summer and i fear this will not help
Sara (Debt Camel) says
Hi Suzy, you can ask Barclaycard to add a default date back in in 2010/11. If they do, then PRA will also have to change. My guess is that if it was 3 months in arrears in 2010, then it would probably have been 6 months in arrears in 2012. See https://debtcamel.co.uk/debt-default-date/.
But if this the only thing wrong on your credit record, it has been settled a little big while and I would still expect you to be able to get a mortgage. Have you talked to a mortgage broker?
Suzy says
Hi
Many thanks for replying i have already e mailed Barclaycard about the back dating of this default , in fact i think its a removal of default if it were 3 months behind in 2010 =makes deletion in 2016, 2011 =deletion in 2017, 2012 deletion this year,
Which date is the correct date ???
I will post again when i get a reply , do you think i should ask for goodwill gesture amount for the lateness of this , i haven’t mentioned that in my e mail.
Thanks for all your help to me & loads of others
Sara (Debt Camel) says
The rules are not specific – the lender is supposed to add a default when you are 3-6 months in arrears.
Suzy says
Hi Sara
Had a reply already from Barclaycard -your thoughts please
We only hold account information for six years so I have checked your statements back to January 2012.
I can confirm that you were on a repayment plan from October 2011 to February 2014 when your account was brought up to date and your card reactivated. The account then fell into arrears from November 2014. We record a default when an account is around seven months in arrears, not after three months. We are satisfied that the default date is correct.
Sara (Debt Camel) says
Unless you can show that your account was 6 or 7 months in arrears before the default date, you may not get anywhere with this.
Suzy says
Hi Sara
Thanks for your reply i have just had another reply from Barclaycard- Your Thoughts please Thanks for your help as well
As advised we do not record defaults after three months so it would not have been done in 2010. This is the minimum period in the ICO guidelines.
Furthermore, your account remained active and your card was used up to May 2014 . Your account was not formally closed until March 2015.
We removed the default at our side on a goodwill basis and you would need to raise this with PRA to see if they will do likewise.
Sara (Debt Camel) says
If you were using your card, that is a good reason for them recording an arrangement to pay and not a default.
NB you do not want the default deleted – if PRA do this, the record will remain on your credit record for 6 years from the date it was settled – be careful what you wish for.
As it is, the default is over 3 years old and it will soon have been settled for more than a year. I suggest you talk to a mortgage broker.
Suzy says
Hi Sara
Many thanks for your speedy reply & advice i will leave it as it us as you say Default date is July 2015 =makes it 3 years old this July 2018 & it has been settled in April 2017 , this April a year,
I will diffo talk to Mortgage broker as i hope this will not stop me downsizing to a much smaller mortgage
Suzy says
Hi Sara
Thank you very much for all your help i have submitted a barrage of documents a few days to a mortgage broker in the hope a lender can see past the old defaults ? as im back on track as im going to be, also going from a 121k mortgage to a 60k mortgage as i need to downsize asap,
Its gone rather quiet i dont want to pester him , But how long realistically would i expect to here back from him before i ping a ” Hows it going email to him ? ” I know my case is not straight forward
Sara (Debt Camel) says
I would suggest two weeks.
Mike Jones says
Hi,
Great information on your site.
I had a British gas account for supply of gas to a house I previously owned.
Whilst I was long term ill in 2010 I moved out of this house and due to illness and inability to work this house was repossessed in August 2011.
I have recently look at my credit report and there is a default from British Gas on there dated Jan 2013 – They have even supplied the data on the credit report showing the account was in “payment was up to six months late” in Feb 2012 and subsequent months until the default date. This account was quite likely late from early 2010 when I moved out.
I understand that there maybe a way to have this date corrected and would ask if you have any advise on doing this or where to obtain a template if this exists?
Thanks
Mike
Sara (Debt Camel) says
See https://debtcamel.co.uk/debt-default-date/.
Mike Jones says
Hi Sara
Thanks you for your reply. I have looked over the information.
Would you mind casting an eye over this to see if good enough to send:
I would appreciate your feedback if possible.
Thanks Mike
Dear Sirs,
Ref: Complaint: Incorrect Default Date on Credit report…
I write to you to inform you that a date of default on my credit report (find personal details below) is incorrect.
I left this property during long term illness in June 2010 and did not return to this property. This property was repossessed by the mortgage company in August 2011. Here is a listing on rightmove after the mortgage company cleared the property: url removed
I had fallen behind in my account prior to moving out, but it only shows on my Noodle credit report that this account “was up to 6 months late” in February 2012.
According to the ICO rules the default date of January 2013 is too late and I would like you to change it to December 2010 where I would have been at least 6 months in arrears after leaving the property.
Account Address:
Account Holder:
I look forward to a prompt and positive reply on this matter by no later that 14/2/2018. After this date I will escalate this to the ombudsman.
Yours,
Sara (Debt Camel) says
You have to give a firm 8 weeks to reply to a complaint before sending it to the Ombudsman.
Mike Jones says
Thanks for your response
Mike Jknes says
Hi Sara,
I have had a somewhat interest response from British Gas! They had provided account closure dates. But will not change the default date which I believe they are incorrect. Here is the response:
“Both accounts were closed down on 18th November 2011. Our disputes team have confirmed an account will not automatically default after 6 months.
The Late payment markers on your electricity account 1-5 were reported and the account now shows as settled on 25 January 2013. We haven’t reported on the electricity account since that date.
Your gas account default was recorded for January 2014 for £742.00. In order to show as satisfied, the outstanding amount will need to be paid in full.”
Apparently there was an electric account also. Firstly this account would have been in arrears way before they closed the account in November 2011. Which to me says the account should be defaulted prior to this. Even then I can’t see how they close an account and then put a default over 2 years later?
I was wondering if I could have your thoughts on their reply before I respond. Can I also say that I will go to the ombudsman immediately if they refuse to alter this date on my next reply?
Thanks in advance.
Mike
Sara (Debt Camel) says
I can’t tell why you think the electricirty account would have been in arrears way before November 2011 – had you transferred it to a different provider?
Mike Jones says
Sorry should have written that a little better.
I was simply point out that they had raised that there was a electric account.
When I said “Firstly this account would have been in arrears way before they closed the account in November 2011. Which to me says the account should be defaulted prior to this. Even then I can’t see how they close an account and then put a default over 2 years later?” I was referring to the gas account – but it does apply to both.
An earlier post I explain that I was long term ill in 2010 and move out of the property. I would have stopped paying then. Thats the reason I know there were arrears. There was no transfer to a provider.
What would you think is the best way to approach this, on the arrears or at account close, or both? I have no problem in arranging to clear the outstanding amount but the default date I would like corrected as it doesn’t comply with the ICO rules.
I look forward to you thoughts.
Mike
Sara (Debt Camel) says
If you think the amounts are correct – ie they haven’t billed you after you moved out – then I suggest settling the account and taking your complaint about the default date to the ICO.
T Pross says
Hi sara
Will paying off a default that’s due to drop off jan19 increase my credit score. It’s currently about £1100 and looking to buy a house in the next year. Would paying it off in one lump sum now be better on my credit file than paying it off over the next 12 months?
Cheers
Sara (Debt Camel) says
No it won’t increase your credit score, but it will make it easier for you to get a mortgage – pay it off as soon as possible, a lump sum right away would be best, mortgage lenders like your problems to be as far in the past as possible.
James Killman says
Hi Sarah,
I have a complaint against Lending Stream which is with the FOS. Basically Lending Stream issued 2 defaults on different dates for the same loan (nearly 2 years apart). They now want me to set up a repayment plan and they will report to the credit reference agencies as an arrangement to pay. Am I right in saying this will extent the reporting to the Credit reference agencies by another 6 years? If so, would it be easier to wait until the second default date anniversary when it would drop off my credit file?
Sara (Debt Camel) says
Are they proposing to delete the default and substitute an arrangement to pay? If they are, you are right that this will make your credit record worse for an extended period.
You should argue that you made no payments from [whenever] and so a default should have been added 3-6months later. it is NOT possible to add a second later default for a debt, you want this corrected to be the one that was first added.
James Killman says
Hi Sara,
The first default was recorded in February 2011 on Noddle and Equifax (now dropped of credit file). The second default was November 2012 recorded with Experian. I have complained to Lending Stream who say the default dates they have recorded are correct and if I am not happy, go to the FOS. I thick the best thing to do is wait for the FOS decision and not contact Lending Stream until after November when the second default will drop off my credit file.
Sara (Debt Camel) says
What date was the loan? Did you ever make any payments to it?
Emma says
I have an account that has gone into “late payment” There have been no payments ever made to the account at all which was opened in August 2016, but they have not Defaulted the account. I would prefer this to be a defaulted account so I have an idea when it might drop off my file. However its just saying late payment. What happens in this case? Will it stay on my file forever like this?
Sara (Debt Camel) says
Yes it will stay there forever unless it is settled or a default date is added. You can ask for a default date to be added as the article above suggests.
BUT if a default date is added in Feb 2017, it will be on there until 2023! What are you plans for dealing with this debt? beacuse if you ignore it, you could get a CCJ in a few years which would then wreck your credit record for another 6 years … Your credit record is a pretty minor point at the moment compared to actually resolving the debt problem.
Jay says
Hi
I have been in a DMP for 8 years. I have 8 separate debts within that. All 8 have been sold to various agencies along the way, none are with the original lender. Of the 8 debts, 6 of them no longer appear on my credit file with any credit agency. (I acknowledge they still remain payable and continue to do so)
Of the two that remain on there, no default is recorded for either. One of the two debts is flagged as ‘AP’ or in a ‘DMP’. The other one is not flagged in anyway and is green and up to date. (it does show a credit limit of £0, but has an actual balance).
My questions relating to the above are as follows:-
Is there any value in settling, in full, the one debt that shows as ‘AP’ on the files?
Is there debt on my files that doesn’t have a flag on it actually affect my credit rating? Is the only affect that that the limit is 0 and it has balance so looks like I’m using a large portion of credit available?
The 6 debts that don’t show on the files, these are the ones where F&F settlements might be worth agreeing as they will not affect my credit rating.
Whilst i know lenders use their own scoring depending on the credit you are applying for, FYI my scores with Experian, callcredit and Equifax currently are 987,608 and 376 respectively, translating as excellent, good and OK.
TIA
Sara (Debt Camel) says
I think you should ask for a default date to be added to the AP debt back when you started the DMP, so it will drop off your file. A debt without a flag on it can negatively affect your credit rating if you are using over 90% of your credit limit, see https://debtcamel.co.uk/credit-score-change/.
Yes a F&F for debts not showing on your credit record is a good idea, see https://debtcamel.co.uk/ff-credit-record/.
Jay says
Could it be the case that a default was not issued on those debts still showing? in which case there is nothing I can do?
Sara (Debt Camel) says
You can ask for a default to be added! See “And sometimes a default is good news!” in the artic;e above.
Jay says
Follow up question.
These 2 debts in question have been sold and are no longer with the original lender.
One was with Barclaycard and sold to Link. Barclaycard have start date of June 2008 and settled Sep 2016 (no default). Link then have it with a start date of June 2008, no markers, no default and payments up to date.
The other was with Virgin(MBNA) and sold to Idem. There is no sign of the account anywhere on any credit report with Virgin, not in settled or default. Idem have a start date of Sep 2007, a flag of AP or DMP (depending on agency) payments up to date.
DMP started in 2009 or 2010 i need to check. If i were to try and get defaults added to these debts, i assume it would be Barclaycard for one but what about the other? how can MBNA add anything if its not showing at all? Could i try Idem?
Sara (Debt Camel) says
Yes, ask Idem.
Judith cooke says
I entered into a DMP in 2012 all creditor except shop direct entered a Default. I’ve tried hard to build my score up. They debt has been sold to arrow and I’ve contacted them asking them to add my default to my file. I sill owe money and have many years left on my DMP and I’m six years in. They said is was a decision not to add a default even though I missed 5 contractual payments. Is there anyway I can get them to add a default as if I hadn’t paid itbwould now be about to drop off my credit file.
Sara (Debt Camel) says
Yes you should ask them to add a default as the article above says. Missing 5 payments then starting a DMP where you are paying very little suggests that a default should have been added.
But how long does your DMP have to go? Are you buying or renting?
Jayne says
Hi Sara. I have a unsecured joint loan with my ex to nram. We missed a payment in 2008 and since then we have both been making reduced payments. The debt is still showing on our credit files. Is that because nram may not have recorded a default date. Can we have a default date added that far back?
Thomas Prosser says
Hi Sara
Not sure if this sits in this category. Im hoping to apply for a mortgage early new year 2019. i was in a DMP with debts still outstanding of circa £3k. This is only with one creditor and they have since dropped off my credit file. My credit file is up to date with payments and the score has improved massively. I am trying to pay the £3k off before we apply, but to think outside the box, what if my partner made these payments directly to the creditor from her account using the required ref number, there essentially would be no trace of the debt on my credit file and my bank statements…….am i thinking to far outside the box?
Sara (Debt Camel) says
If your partner is going to be on the mortgage application this sounds pointless, as she will be asked what the payments are on her bank statements.
Thomas Prosser says
Hi Sara
should have mentioned, as she is self employed the mortgage will be solely in my name, so there will be no need to heck her details/statements. i know its not ethical but could it help?
thanks
Raj says
HI Sara,
I have two loans went into default in 2014 but I’m paying a token amount of £1 a month for this debts. Will this two accounts will be dropped off in 2020 even if i continue making payments of £1 or should I just stopping paying them and wait for them to be dropped in 2020.
thanks in advance
Sara (Debt Camel) says
Yes they will drop off in 2020, but read https://debtcamel.co.uk/paying-old-debt/ which looks at this situation.
Linda says
Sorry this question is about a CCJ as opposed to a default notice but couldn’t find the correct place to post. I had a CCJ recorded against my name which I’ve been paying to a DCA. I’ve paid this off and have received a letter from the DCA saying it’s satisfied. My question is, is this automatically corrected on my credit file via notification from the DCA or is it my responsibility to make sure my file is updated? Any advice would be useful. Thanks
Sara (Debt Camel) says
It should be corrected by the DCA, if it isn’t read: https://debtcamel.co.uk/paid-ccj-satisfied/
Linda says
Thanks Sara will have a read
Tony says
Hi Sara,
I’ve been on a DMP for just over 4 years, with the majority of accounts defaulting more or less straight away.
There is on however which has recorded me as on a DMP since it was set up but now has applied a default in Feb2018. Can they do this?
I have cleared a small fortune, with a view to getting a mortgage in the next couple of years so obviously this recent default will impact this.
What should I do?
Thanks in advance.
Tony
Sara (Debt Camel) says
This article https://debtcamel.co.uk/debt-default-date/ looks at how to ask for the default to be earlier. Who was the original creditor? When was it sold to a debt collector?
BUT just checking that you know you need to repay the DMP before getting a mortgage, not just clean up your credit record… See https://debtcamel.co.uk/dmp-mortgage/.
Tony says
The original creditor was M&S credit card (I think), transferred to Hoist portfolio holdings approx 4 years ago.
I am aware regarding the mortgage/DMP, 8k to go from approx £52k. 18 months or less and I’ll be done ????
Sara (Debt Camel) says
ok, I suggest you ask M&S to add a default over 6 years ago and then Hoist have to use that.
Great DMP progress! Have you checked if you had any PPI to reclaim to speed up the last bit?
Tony says
Hi Sara,
Great advice, many thanks, I cannot say how much I appreciate it!
Thanks, I have exhausted my PPI avenues I think, the majority of my debt I opted out of it, this has been confirmed.
I do however have 3 loans with Abbey totalling approx £18k which I did have PPI on, one of which the application was sent back to me with a post it note on the returned application saying “you must tick the PPI box”!
8weeks is up on the 15th for these cases which I have had confirmation that they are investigating.
Thankyou ????
Tony says
Hi Sara,
It was actually newday. An aqua card to be precise.
Not sure if this changes anything?
Sara (Debt Camel) says
Doesn’t change the suggestion, but M&S would probably have sorted this with a simple letter. Aqua may dig their heels in :(
Jay says
I have a debt in my DMP (started in 2009) that was originally with MBNA, they never issued a default and sold the debt to Idem over 6 years ago. Therefore as it is satisfied with MBNA it’s not longer reported on my credit file. Idem are reporting as in a DMP. I have asked them to add a default but they have refused as they say sthey that when they bought the debt it was not in arrears with MBNA. If MBNA are not reporting it because it’s satisfied with them over 6 years ago how can I get a default added for it to drop off with Idem?
Sara (Debt Camel) says
You can ask MBNA to add a default date – they can be very difficult to deal with but they should have done this. If you don’t get anywhere, ask Idem to add a default back when they bought the debt and if they refuse, take the complaint to the Financial Ombudsman.
Cally says
Hi :)
Unsure if anybody can advise. I’m looking st my credit report and I had a Vanquis credit card (account opened July 2011). The account had defaulted and is now with Lowell, but the default date shows July 2014. I am pretty sure I fell into difficulty WAY before this, I’m sure it defaulted before it even got passed to Lowells – so is it possible that Lowell have added another default to this account? Is this something they’re able to do, add a second default? I just feel like it should be earlier, but I can’t tell exactly when.
Is it worth approaching Vanquis to find out when they added a default? Would be ussrful to know as I also have a Very account with Lowell where I think the same thing has happened.
Cheers :)
Sara (Debt Camel) says
“is it possible that Lowell have added another default to this account? Is this something they’re able to do, add a second default?” No they shouldn’t.
It is much more likely that Vanquis failed to add a default to the account. And Very too. You could write to them both and ask them to add a default date, but it is going to help if you know when you stopped paying them. Can you look at your old bank statements?
Also, do you remember if you ever paid for something called ROP with Vanquis? If you did, you will be going to get a refund from them… see https://debtcamel.co.uk/vanquis-refunds-168m-for-rop/
Cally says
Hi Sara,
Thanks for your kind reply! I’m going to try and piece together when I stopped paying them. Do I contact Lowell or Vanquis directly?
I enquired worth Vanquis re. The ROP. I never had it apparently ????
Sara (Debt Camel) says
Ask Vanquis to add the default date. Then Lowell have to use the same one.
Alex smith says
Hi Sara,
My creditor recorded a debt 6 years ago on my credit files as £2000 unpaid and today still shows £2000 and I can not remember making any payment for the last six years. Does this mean it is SB now?
Thanks
Alex
Sara (Debt Camel) says
see https://debtcamel.co.uk/statute-barred-debt/ which looks at this.
Paul says
Hi, I have a Virgin Media account showing I am 6 months in arrears on my credit file for £109. However, it has been 6 months in arrears since March 2015 and not defaulted. I want to pay the debt but before I do is it better that there is a default date showing from March 2015 than the account being settled after being 6 months in arrears from April 2018? I ask because the default will drop off in 2021 whereas the 6 months in arrears will show until 2024. If the default I’d the better option how do I get Virgin Media to default the debt from the moment I went 6 months in arrears please?
Thank you for your help.
Sara (Debt Camel) says
Well this case is a but marginal. Is it better to have a default on your file for three years? or arrears that have been settled for 6 years?
Some lenders may prefer one, some may prefer the other. Som may not care.
Paul says
Thank you for your quick response. Do you know if there is any precedent which enables me to ‘make’ virgin media default the debt using the date I went 6 months in arrears……..which is actually May 2014, not 2015 as originally stated.
Many thanks
Paul
Sara (Debt Camel) says
Just write to them as the article above suggests, saying “I would like you to add a default date in May 14 in accordance with the ICO rules.”
Tthere is no reason to delay settling the debt though.
Daniel says
Sarah
Having checked my credit report it seems i have defaulted on an old Natwest student credit card.
I initially took the account out in November 2009 in which i was under the impression was more or less paid off. However in 2015/2016 the account was defaulted on the sum of £373.00 in which i had lost track of due to moving addresses etc. I cant recollect receiving a default notice however this could be due to moving addresses. What does frustrate me is i received an email stating that all important information would be sent by email to me (email received in 2013) i would class non payment and default as ‘important information’ and if received i would have paid the outstanding balance that i was unaware of.
to my knowledge I did not receive any statements or correspondence (hard copy or electronic), mail or even a phone call which i find amazing given the account was placed in default. The first call i received was from a company representing Natwest informing me i need to pay the balance- i proceeded to pay the balance and didn’t really think much of it until i received my credit report.
Do i have a case to request the notices along with other information in the hope of them removing the default
Your feedback is appreciated
thanks
Sara (Debt Camel) says
You could send NatWest a Subject Access Request – this will be free from 25 May, unfortunately, at the moment it costs £10, see https://debtcamel.co.uk/free-access-data-gdpr/
Daniel says
Hi sarah, so i received a reply from NatWest stating dates the account went in to default and the date the default notice was sent however they say that they cannot provide the original notice but only a template of what they send customers.they also state that as I’d moved address the notices were sent there, I also questioned as to why I didn’t receive any warnings via email, their response was-“due to the nature of default notices, they are never sent to your email however pre warnings would have been sent” I have never received anything through my email nor can they produce the pre warning emails sent. Do I have a case if they can neither issue the default notice or original warning emails in which they claim to have sent.
Your response is very much appreciated
Thanks ????
Sara (Debt Camel) says
They do not have to produce the original. If you didn’t notify them of a change of address, this may be hard to win.
Also there is always the problem with this sort of case that you did default I assume. In this case you often do not want a default removed for a string of late payments to be added instead, because the default will drop off after 6 years, but the lat payment indicators will remain until 6 years after the debt was settled, so a lot later.
Mandy says
Hi Sara,
I couldn’t find a forum on repossessions. The only one I found related to bankruptcy. Anyway, my question sort of fits in here.
I have a default on my mortgage account dated the repossession/eviction date. I was able to raise funds quickly to pay the balance on the mortgage in full and got my property back, all within a couple of months. Obviously the lender was aware of what I was doing, as I had my solicitor contact them quite quickly and they worked with us to sort it all out over the 2 month period.
My question is, as I got the property back, what should my answer be when asked if I have ever had a property repossessed? What exactly does that question actually mean, as in, what are they trying to determine?
Mandy says
Oh, also, when lenders see a default market against a mortgage account, do they automatically assume it to mean that the person lost the property?
Sara (Debt Camel) says
I think you should ask your solicitor this question. being evicted and getting your property back is unusual – the answer may depend on whether the lender made serious errors in the repossession process.
Lisa says
Hi Sara,
Would be great to get your advice. I entered into a DMP in 2009. All but 2 lenders applied defaults that year. Halifax didn’t until 2012 but that drops off this year which is fine. Barclaycard never applied a default so my credit file always had an AR flagged. The DMP was satisfied in Aug 2015 so this AR won’t fall off my file until 2021. I would like to apply for a mortgage in early 2020 (I realise this is a way off but thinking ahead). Is it worth contacting Barclaycard to get them to change the AR to a default from when I originally broke the agreement or should I leave as is? I’m thinking that changing the AR to a default won’t have an impact on my file as it would now be past the 6 years….. Or by 2020, will mortgage lenders be ok to lend despite the AR being on there as it was paid off nearly 5 years previously. Everything else on my credit file since then has been good.
Many thanks,
Lisa
Sara (Debt Camel) says
It’s well worth asking Barclaycard to add a default as the article above suggests. But in 2020 (and well done for forward planning!) I wouldn’t expect one debt with an AR that was repaid 5 years before to be a major obstacle – go to a mortgage broker, not direct to a lender, but If everything else is fine, I would expect you to get a mortgage offer from a high street lender.
Lisa says
Brilliant – thanks very much for the quick response. Much appreciated!
Joel says
Hi Sara,
I’ve been in ATP for H&T for a while and missed one but called up to make that payment.
The advisor said everything was up to date and my next scheduled payment was to go ahead at the end of the month.
So i took no action and obviously carried on making the arranged payments.
I did get a default notice letter not long after but since I made the phone call I thought nothing of it because everything was still going as arranged.
I come to find out I now have a default registered for this on my credit file.
Anything you suggest?
I have already sent a complaint to them.
I called them up but the advisor was arguing with me saying why did you make the “arrangement to pay” and the advisor I spoke to originally no longer works for them.
Sara (Debt Camel) says
How long have you had this ATP? How much are you paying each month? did you take the case to the Ombudsman?
Joel says
I’ve had this ATP since July last year. I was paying £20 per month.
I have emailed H&T complaints.
Sara (Debt Camel) says
you must be more than 3 months in arrears with this loan by now so they are within the guidelines to add a default. Yiu are unlikely to get this changed. The fact you have kept up tith the arrangement isn’t rekevant.
Did you not make an affordability complaint about this last year?
Bec G says
Hello,
We have a large loan with NRAM that went 6 months in arrears before we entered it into a DMP April 2012. Should NRAM have recorded this as a default? I stead they have entered various statuses such as 6, DM and AR.
The obvious impact on our credit score is crippling.
I have written to them to request that a default be registered on April 2012 so that it will clear up our reports. Now im worrying.
Have I done the right thing?
Thanks
Bec
Sara (Debt Camel) says
Not sure why you are worrying, having a default added would surely be better.
What happened to the mortgage? And how large are the debts currently in your DMP?
Bec G says
The mortgage has always been paid by us directly to them. However we are planning to sell the house and at back the mortgage in the next couple of months.
The DMP has around 4000 outstanding plus the 25000 loan with NRAM.
What would happen to the loan if they back dated a default to 2012?
I’m panicking that they can issue a ccj.
Thanks
Bec
Sara (Debt Camel) says
Is the NRaM unsecured loan not in your DMP? Have you been making any payments to it? When you sell the house how much equity will you have left?
Bec G says
The unsecured loan is on the DMP. We have made payments to it since 2012 through the DMP. These payments have been reported as status 6, AP and also DMP to the CRAs. So to me it looks like there is no consistency within their reporting. Can they do this?
We will have a small amount of equity from the sale after costs to be able to pay off the other £4000 in the DMP but not the loan.
We would just like to be rid of NRAM mortgage as the apr is almost 5%.
In an ideal world we would like to be free of the loan too but that isn’t realistic.
Thanks
Rebecca
Sara (Debt Camel) says
Is the interest frozen on all your DMP debts? Who is the NRAM unsecured debt now owned by? Have the DMP payments been very low?
Bec G says
The unsecured is still with NRAM, interest was frozen, the payments have been considerably low compared to the contracted amount.
There was even an instance where we were making the mortgage payments (not in the DMP) and NRAM were splitting it pro rata to add payments to the loan. We had to call to correct almost every month.
Sara (Debt Camel) says
There was usually a clause in the unsecured loan allowing NRAM to hike the interest rate to something stupid if you sell the house – I don’t know if they will do with you being in a DMP and having frozen the interest. Who is your DMP with? you could ask if they know?
I don’t think a plan to pay off your other DMP debts and not the NRAM one is a good way forward. NRAM may well not think that is a reasonable and I worry they may go for a CCJ as a result.
You could try the reverse – offer all the spare cash after you have moved and are settled to NRAM in full & final settlement of the loan – it would be only 20% but you could point out the alternative is you going bankrupt when they would get nothing. If they refuse, I think you should seriously consider bankruptcy unless you will be able to make large repayments to the NRAM debt. Sorry, not what you want to hear I suspect. Do talk to your DMP firm about this. And don’t let them suggest that an IVA would be better than bankruptcy – with no assets to protect it would not.
Bec G says
Hi, I thank you very much for the reply, However, I think we went a little off course to my initial query.
The plan is to pay the other debts off and going forward pay the increased payments with NRAM. We have no intention of not paying nram for the loan as we agreed to take it out in the first place, bankruptcy is not where we intend to go.
My initial enquiry was just regarding the credit report. Should it have stated Default in 2012? If so, Then what should have the status shown after this? Our reports currently show from April 2012 each month 6, DM, AP, 6,6,6,DM,AP and so forth.
This is what I’m struggling with.
Thank you.
Sara (Debt Camel) says
As the article above ^^^ says, a default should be added if a debt is 3-6 months in arrears. That would probably have been sometime in 2012/3. Once a default is added, every month after that would have been marked with a default.
I know you weren’t asking how to get rid of your debts, but I am just saying that if you pay off the rest of your DMP debts and not the NRAM one, NRAM may not be very happy and may consider a CCJ – of course this is unlikely if you suddenly start making large payments to the NRAM debt. I would have thought it was worth trying a F&F offer to NRAM when the house is sold.
Bec G says
Oh that’s good news. So hopefully they will back date a default to start 2012/2013.
I thought maybe they could add an AP or status 6 afterwards and this would defeat the object of having a default.
Thank you for your replies and time that you give us all.
Kind regards
Sonia says
Hi
Wonder if you can help. We had a large secured loan back in 2007 the house was repossessed in 2007 and since then idem have recorded the debt as 6 months in arrears. Our last payment was six years ago in June. Will it just carry on forever as 6 months in arrears?
Sara (Debt Camel) says
A default should have been added back in 2007. Ask idem to to do this and if they refuse go back to the original mortgage lender. How much is still owed?
Sonia says
Hi thanks it’s around £8000. The original lender was picture loans who i don’t think are going now. Would it be 11 years with it being a secured loan? Or does it become unsecured after the house was repossessed? Always been scared to contact the lender in case they say I’ve made contact and it’s starts the time scale again? Would this be the case?
Yes other debts that we managed to clear. Will it be 12 years from 2007 or 6 years ago when we stopped the arrangement to pay?. Will contacting them start the time again. Thanks so much for your advice
Sara (Debt Camel) says
I have put some of your comments together to give the full picture. Please say if anything is missed off
Your options are to
– live with this. In this case the debt will remain at 6 months in arrears. It will never drop off as there is no default date on it and you are not repaying it so it will never get to be settled.
– settle the debt – do you have any money for a Full and & Final settlement?
– ask Idem to add a default back when the house was repossessed. If you ask Idem to add a default date and the debt is not already statute barred, this will reset the clock for time barring.
I think you should discuss with National Debtline the details of your situation. See https://www.nationaldebtline.org/EW/factsheets/Pages/mortgage-shortfalls/mortgage-debt.aspx. Although it is likely most of your debt will be capital with a 12 year limitation period, some may be interest with a 6 year limitation period – which would (from what you have said) becoming up in a few months.)
You may have to decide if resetting the clock matters. If most of the debt won’t be statute barred for another 5 years, is there much difference between that and 11 years?
As a final complication, PPI was often sold with Picture loans. Have you tried to reclaim this before? That would have rest the limitations clock. If you haven’t, you may want to try to reclaim it now, even though that resets the clock, because it could potentially settle quite a lot of your balance.
So it is complicated and I do think talking to National Debtline would let you work through all the alternatives.
Mike says
Hi Sara,
Contacted you previously about incorrect default date with British Gas.
Had not luck with them and made a complaint to ICO.
The response from ICO is
“However it is for the organisation to decide when an account is in default, which is when the organisation, not the individual, considers the relationship to have broken down.
From the information provided to us it appears unlikely that British Gas has breached the DPA. This is because there seems to be nothing inaccurate about how British Gas recorded the date of the default.”
Any advice would be appreciated on dealing with this further.
Previous background: the account was in arrears at least 12 months before the default date BG put on.
Thanks
Mike
Sara (Debt Camel) says
I suggest you reply to the ICO that you would like them to look at this again as you moved out of the house in June 2010 and the property was repossessed by the mortgage company in 2011. You understand it is up to a firm to determine when a relationship has broken down but in this case British Gas are being unreasonable as there was no communication between you and them from June 2010 onwards.
Mike says
Hi Sara,
As suggested I replied to ICO, here is their response:
I understand that you and British Gas were out of contact with each other from 2010. However, from the correspondence provided I can see that the reason for that is that you moved out of the property and did not inform British Gas.
In the ICO online guidance it states that it is up to the organisation to decide when the relationship between provider and customer has broken down. If British Gas decided that was in 2013 then that is the prerogative of British Gas. It is not an inaccuracy.“
Any advice would be greatly appreciated on this?
Mike
Sara (Debt Camel) says
You could try putting in a complaint to the ICO that this is an unreasonable decision? Or emailing BG’s CEO: mark.hodges@britishgas.co.uk. In the end this will be disappearing next January so it’s up to you how much hassle it’s worth at the moment trying to find a way forward.
Rach says
Hi Sara
Just after more advice….im currently paying into a debt management plan for debts that have been sold to another company from the original lender. These debts are over 6 years old now so not on my credit file. I read if the new owner of the debt can’t send me the original credit consumer agreement I could simply stop paying back with no way of them chasing me legally for this? Is this correct? Many thanks
Carly says
Hi Sara
I have set up an arrangement with Home Retail Group and maintained a repayment plan of £50 per month from Jan however I note that they have defaulted the account without informing me in Feb – can they do this?
Sara (Debt Camel) says
how much would your normal repayment be? Did you miss any months before setting up the arrangement to pay?
Mandy says
Hi Sara,
I cannot find a thread dedicated to credit report information, disputes, that kind of thing. I have a problem. There was some account information that was being reported incorrectly. The lender was cooperative about contacting the CRAs to change it. This account was only being reported to 2 CRAs. After the first request from the lender, one of them got it right, the other didn’t. After 3 further requests, they are still getting it wrong. Each time I check, I find that it has been updated, but incorrectly. The worse one was today, when I found they had reported the account as satisfied at the beginning of March 2018, when it was satisfied in May 2016! Each time I contact the CRA they ask me to raise a dispute, to which my response is that I do not see any reason to do so when the lender in question has already asked them to amend the information. What should I do? It was bad enough having a defaulted account settled only 2 years ago (nearly). Now my report is showing that it was only satisfied last month!
Nick says
Hi, I had a couple of shop direct accounts included on a DMP (started 2012) without a default. They were then sold to Arrow Global. I have asked Arrow global to add defaults to these on the basis that the DMP meant full payments were not being met therefor arrears buit up. I have asked Arrow to add defaults from the date the DMP was entered into based on the ICO guidelines applicaple in 2012 but they are saying that as Shop Directs policy was to help customers by preventing their accounts defaulting if they were in a DMP they agreed to reduce the monthly payments and therefor they will not add a default. Is this correct or do I have a basis to challenge this.
Many thanks
Sara (Debt Camel) says
You need to ask Shop Direct to change this if you want a default date before the date the account was sold to Arrow. If Shop Direct refuse, reply that their policy was not helping you, that it has put you in w arose position than adding a default, that it is not treating you fairly (use those words) and that yiu will send the case to the Ombudsman if they don’t agree.
Nick says
Update to the above.
I wrote them a complaint stating the above and they have now replied saying that as I kept to payments on the DMP the accounts did not default and won’t uphold the complaint.
I think it’s really unfair as had I not made payments or gone Bankrupt they would have defaulted and be off my credit file 6 years from then (November) but now it is going to show arrangement to pay 6 years from whenever it is settled, which is sometime from now.
Sara (Debt Camel) says
Shop direct are very difficult. Send your complaint to the Financial Ombudsman (here is how to send them a complaint using their online form https://help.financial-ombudsman.org.uk/help) and let them look at this.
Thomas Prosser says
Hi Sara
Thanks to this site i have now had a response for a final default that sat on my account. This was for an aqau credit card offered by New Day Fiance. New day were useless so i had to take the complaint to the FO. Friday they agreed to my complaint and decided the following
“Because of this, I recommend that NewDay does the following to resolve Mr XX complaint:
arrange to have the default removed from Mr XX credit file- since more than six years has elapsed since March 2012 his default would no longer be appearing on his credit file if it had been defaulted in March 2012
refund all interest and fees applied to his account from March 2012 along with simple interest at the rate of 8% per year from the date of payment to the date of settlement- if Mr XX account was defaulted interest and charges would no longer have been applied to his account.
This sounds like good news. My only question is new day sold the debt to 1st Credit (thats the default on my credit file). Will New day write to them to get this removed?. How long does this usually take. The FO have given New day until 4th May to appeal.
Thanks again, with this off my file i can finally move forward
Sara (Debt Camel) says
Let’s hope New day accept this ruling and don’t appeal.
When New Day Have done this, I suggest you contact 1st Credit and ask them to amend the debt in line with what New Day have done.
If First Credit are hassling you at all, tell them the original debt is being disputed with New Day.
Tony says
Hi,
I have done something similar though I was directed to hoist portfolio holdings by Newday as they now own the debt and I am awaiting a response.
My question to you is, did you put in an affordability claim in order to get the interest and charges refunded or is this something the FO has stipulated?
Kind regards
Tony
Thomas Prosser says
Hi Tony
My original complaint mentioned nothing of interest and charges. The FO gathered statements themselves as i didnt have anything. They are the ones who suggested a refund of fees and interest, so if that comes about it will be an added bonus. My complaint probably took about 8 months to get to this stage mind. The default with 1st Credit was due to drop off jan 19 so if things get accepted hopefully itll be 6 months earlier now
Lisa says
Good Afternoon
I am really confused with the markers that have been put on my credit file. I took out a payday loan with Lending Stream back in January 2012. They have marked my file as settled in Aug 2012 but they sold the debt to MMF in 2014. I complained with MMF about the way in which the debt was handled and they have removed the record from my credit report but I still have the markers on there from Lending Stream saying I made late payments. I telephoned Lending Stream and also talked to Experian who have raised a dispute on the credit report. Lending Stream have also raised an internal complaint but can take up to 8 weeks to respond.
Lending Stream did have a default on the account which they removed but the late payments are still showing which any underwriter when I apply for a mortgage will still see.
I don’t understand how they can remove a default but keep the late markers on there, say the debt has been settled in August 2012 and yet state on my credit file that this was sold to MMF in 2014.
I was hoping that this would come off my report but it now looks like I will need to wait until August 2018 when the late markers were put on there ? Is that correct? I cannot make any application for a mortgage until this has been resolved and the stress this is causing is incredible at the moment.
Any help gratefully received !
Sara (Debt Camel) says
That does sound confusing.
So the MMF debt no longer shows at all?
The lending Stream debt shows as having zero owing? And a settlement date of August 12?
The late payment markers are all pre August 12?
Dan C says
Hi,
I’m in a DMP and 6 of the 8 Debts all recorded a default straight away in April 2014. The other two were with Barclaycard and just recorded on my credit record AP each month from March 2014 to August 2015. They then sold the two debts to PRA Group who immediately add a default on August 2015. Is there any way I can get the dates rectified as this will extend my 6 years by nearly 18 months?
Many thanks
Dan
Sara (Debt Camel) says
Had you missed any payments before starting the DMP?
Dan C says
Hi,
Yes the records say 1 the AP until sold to PRA.
Sara (Debt Camel) says
Ok then you should send Barclaycard (not PRA) a complaint as the article above suggests. If Barclaycard add a default, PRA will then have to change the default on their record to be the same as the Barclaycard one.
Dan C says
Thank you.
Jon says
Hi Sara,
I have a default from an old creation account that is now managed by Lowell. The default from Creation was in Aug 2013 but the last payment was May 2011. The debt is now stat barred but I think the default has been registered 2 years late? I have tried speaking to Lowell but they say they won’t change it? Is it worth going to the FOS about it?