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?
Ffionpearl says
Hi
I’m wondering if anyone knows the rules on adding interest after default. In my experience it doesn’t happen unless creditor has a CCJ. So I thought that once an account defaulted it was “dead” and no more interest and charges could be applied unless the original agreement allowed for it. I’ve just had (a case of) a Very debt passed to Lowell. Default balance is considerably less than current balance. Lowell say Very added interest after the default date.. Can this happen? And if Lowell do not have the original agreement (which may or may not say that interest can be added) can they still rely on the balance that includes the post-default interest? (Lowell have not sought a CCJ and [of course] Very didn’t either)
Sara (Debt Camel) says
Most creditors stop adding interest after a default but I am not aware of any law or regulation that says they have to.
You could challenge Very about whether adding the interest was treating your client fairly. But it may be simpler to ask Lowell to produce the CCA agreement for the debt – if they can’t it doesn’t really matter how large the balance is as it is unenforceable.
Ffionpearl says
Hi
Yes, thank you, you have confirmed pretty much what i thought. Re the CCA, i’m trying to get this balance down so she can get in to a DRO. The extra interest puts her over the limit. So it will be a matter of challenging Lowell (or Very) on the added interest.
Mr Richard says
I have now repaid almost all of my debts and have left my plan with Stepchange. Personally given my circumstances, I feel I should have been offered a IVA. The plan was started in 2010. I am paying 2 out of the 3 as one is yet to respnd to a request for information. I want to make an offer for the other 2 but a recent letter said that if a partial settlement is made, it will be recorded on my credit file. I cannot risk this as my credit score is now good and I want to move to a house that is more suitable for my health needs, due to disability and a stroke. An entry on my record will jeopodise this.
Sara (Debt Camel) says
a debt will not reappear on your credit record if you make a partial settlement. But you could simply stop paying if the debt collector cannot produce the CCA.
Mr Richard says
Thanks Sarah, I thought that was the case. Another attempt to frighten me into paying the full amount I suspect. I will write back and point this out to them. I was trying to claim back PPI from them about 2 years ago, but they failed to supply proof of payments or statements and now it is too late.
David says
I defaulted on a credit card debt of £7500 about 10 years ago. I went through the six years of having a default on my credit file and I’ve been paying £1.00 a month to the credit card company for the past four or five years as they suggested. Can they still come after me at any time in the future for the full amount, or has the default wiped out the debt completely?
Sara (Debt Camel) says
has the debt been sold to a debt collector?
David says
No they haven’t. I spoke to the credit-card company only yesterday, and asked for the debt to be written off, as I will never be able to pay it off. They at first refused, but are now looking into my account history with them, which goes back about 12 years or more. I’m worried that I’ve now stirred up a hornets nest, after having quietly paid just £1 a month for the last four or five years.
Sara (Debt Camel) says
That’s odd – can you say which the credit card is?
I assume you can’t afford to pay more than a token payment? Are you buying or renting? Do you have other problem debts?
PS can i check you live in England? this website is only for British debt problems
David says
The card company is Capital One and yes I live in the UK, with a mortgage and other much smaller debts.
They’ve always been very understanding, since I first told them I was unable to pay the monthly payments 10 or more years ago. They suggested defaulting me and then just paying £1 per month thereafter. Obviously I don’t mind this arrangement, but I’d rather the debt was just wiped off the record completely as it’s preventing me moving on financially, even though the default 6 year period ended about 5 years ago. I still have to declare it as a debt if ever I’m filling in a form. I have explained this to the company and they are going to consider my request of having it removed, but I’m not expecting them to agree. Hence my worry about them still being able to come after me for the money all these years later. Otherwise why wouldn’t they just write off the debt?
AC says
Hello,
I started in a DMP in 2011 so I would have fallen into arrears then. On my credit file I can see that:
Barclaycard closed my account on 24/04/2015 and defaulted me. It was passed to PRA.
PRA also added a default on the same date 24/04/2015.
Now showing 2 companies defaulting me for the same debt.
(PRA say the debt is unenforceable as no CCA.)
Should I be contacting Barclaycard asking them to change the default date to the 3 / 6 months stage after I entered a DMP in 2011? Can the do that as it is more than 6 years ago? Then PRA would have to do the same?
Thank you
Sara (Debt Camel) says
2 defaults for the same debt are only counted as 1 in credit scoring.
Yes you can do that and if Barclaycard do that, PRA will have to copy them. Realistically thus mat take quite a long while to sort out – staff may be dezling with lots or urgent matters. The defaults will go this time next year, it’s up to you if it’s worth the hassle for what may be only a few months difference.
AC says
Didn’t realise they are only counted as 1 in credit scoring… Thank you :)
Of course, busy times for them… might just send a letter as can do no harm.
Thank you.
Aly says
Hi,
I am in a similar situation where I entered a DMP on 6th May 2014, so letters were sent to all of my creditors on that date. All debts are now completely paid off, but I am struggling to move forward due to defaults.
Four creditors added defaults to my accounts on the following dates:
Halifax (Loan) – Default in Jan 2016
Zopa (Loan) – Default in Jan 2016
RBS (Overdraft) – Default in March 2016
Halifax (Overdraft) – Passed to Moorcroft – Default in July 2016
Is there any support you can give into how to approach these lenders to move the default date to 3-6 months after entering the DMP? Is there any specific requirement for them to comply with this request?
Thank you
Sara (Debt Camel) says
as the article above says, the SCOR rules say a default should be added when a debt is 3-6 months in arrears. You can either just write a simple email asking for the debt to be put back in line with that. Or you can work out for each lender when the 6 month point is reached and explain that in detail. So if your DMP was paying lender A £50 a month and the normal monthly payments was £100 a month, you would not be 6 months in arrears until 12 months from the start of your DMP.
Al says
Thanks for your reply. I wish I had known at the time regarding the fact that the defaults were always going to be hitting, I would have been in a better position by paying them nothing at all for a few months, rather than try my best to pay as much as possible. It is so frustrating to invest so much and try to do “the right thing” when it actually makes you worse off down the line.
Can I ask your advice on Mortgage prospects?
I have a total default balance of approx £14,500 With my defaults dated:
Halifax (Loan) – Default in Jan 2016 (£5k) Settled – May 18
Zopa (Loan) – Default in Jan 2016 (£6.5k) Settled – September 18
RBS (Overdraft) – Default in March 2016 (£2k) Settled – Settled June 18
Halifax (Overdraft) – Passed to Moorcroft – Default in July 2016 (£1k) Settled April 19
I know that the total default amount is high, so was wondering if you could give any insight at all regarding my prospects of getting a mortgage anytime in the next year or so, and if not, how long you think it’d be until I could even consider applying?
Thanks again
Sara (Debt Camel) says
how large a deposit will you have?
Al says
I will have a deposit of £160k and would like to purchase at approximately £350k so around 45%
Sara (Debt Camel) says
oh so that is a huge deposit.
On that basis you could talk to a mortgage broker now about your prospects. But the whole market is in difficulty at the moment, so it may be better to wait a few months. If they say no, ask if you should try again in 6 months or a year.
Al says
Thanks for the advice.
We currently live in the UAE but are moving back to the UK full time in a month. With a job secured for September (teacher) that side of things should be ok, but my wife is pregnant so will just be me working, hence our only option for a mortgage is on my financials.
I always expected I’d need to be back in the country for a few months to get everything settled (pay coming in regularly, back on the electoral roll etc) but just didn’t know if at that stage it would be a complete no go still.
Again, frustrating to have done everything I could to get clear, sort out finances and be in a strong position now, from what was extremely depressing times 6 years ago, only to still potentially be held back.
Appreciate all your comments.
Aly Smyth says
Just thought I’d update my situation, as I gained a lot from reading other people’s updates.
After contacting all creditors regarding my situation I have had some great news (and some not so great).
I complained to each, asking for the Default dates to be changed to 3-6 months from when I initiated the DMP with Stepchange, due to it being clear that I was going to be on a long term plan so there was no way I was going to return to my regular monthly payments.
Zopa refused to accept that they had treated my unfairly, and maintained that they followed normal procedure. Halifax however have backdated two of my defaults (Loan and Overdraft) to October 2014 (3 months after starting DMP) and are refunding me £400 (some in charges plus an apology). This will have such a difference as it means these two defaults (one of which was £5000) will be removed from my file this October.
Thank you Sara for creating this site and for sharing your knowledge, I would never have even approached the lenders otherwise, but it has made a huge difference to my future as my wife is pregnant and we now have the possibility of buying a house two years earlier than we thought we would have been able to. My next plan is to use this positive result to go back to the other two creditors, to ask why one company has reacted so differently to them, and potentially raise this with the Financial Ombudsman… But even if I get nowhere, this has been such a successful result!
Thank you again!
Sara (Debt Camel) says
make sure your complaint to the Ombudsman is made within 6 months of the response from the lender you are complaining about.
Liam says
Hi Sara,
I’ve got an agreement with Virgin mobile from 2012.
They never defaulted it but passed it on to a debt collector the same year. They have just been marking it as missed payment for the last 8 years and I have only just found it.
If I were to request a default date to be added from 2012 when it was passed to a DCA (Lowell) will this cause it to drop off my credit file?
Sara (Debt Camel) says
yes it would.
Liam says
Thanks Sara! Email sent the same night and had confirmation from Equifax that it has been removed from my credit file! Hopefully should start seeing an improvement after 8 years of them reporting on me!
Thomas says
I was hoping for some advice, i have a hire purchase agreement with volkswagen finance and started missing payments in july 2015 when i got into financial difficulties. They have been recording missed payments up until october 2018 when i was made bankrupt and stopped reporting the status to the credit bureaus. Unfortunately i dont have the car anymore it was beyond economical repair. what are my best options? thank you
Sara (Debt Camel) says
If you went bankrupt in 2018, the default date should be on or before the date of your bankruptcy. See https://debtcamel.co.uk/credit-file-after-bankruptcy/ for how to complain if there is no default date or it is later than your bankruptcy date. The debt should also show as being satisfied or partially satisfied with a zero balance from the date of your discharge.
Mark says
Hi,
Hoping you can help.
I have a default from an Orange Mobile account (now EE) which was sold to Lowell. The default was registered 03/12/2014. I don’t know the exact date I went into arrears but according to the letters I have kept Orange wrote to me on 27/10/2013 saying they had tried to contact me a number of times and demanding payment. So I assume I failed to pay some time before then. I paid this account in full in December 2015.
Given there is 14 months between these dates (and it could be a longer period) am I likely to be successful in arguing that, under ICO guidelines of an account defaulting after being 3-6 months in arrears, they should change the default date?
I have written to both Lowell and EE with the details and have provided copies of the letters I have received as evidence. As I have paid this account a long time ago are they more likely to act more favourably? If they reject my claim should I take it to the ICO and/or FOS or would you say that as the default clears this December it would not be worth it and I should just wait? Was looking to apply for a mortgage soon and don’t want this to affect my application
Thanks very much for your help.
Sara (Debt Camel) says
am I likely to be successful in arguing that, under ICO guidelines of an account defaulting after being 3-6 months in arrears, they should change the default date?
You can try. Mobile companies don’t have a great reputation fo being helpful.
As I have paid this account a long time ago are they more likely to act more favourably?
No. in fact they may not have much details about what happened any more. this would have been better chased up a few years ago.
would you say that as the default clears this December it would not be worth it and I should just wait? Was looking to apply for a mortgage soon and don’t want this to affect my application
It’s an old default and you paid it years ago. It is unlikely to stop you getting a mortgage at an OK rate if you have an OK deposit. But the whole mortgage market has seized up. I have no idea whether it will return to the “old normal” in a few months.
Mark says
As the DCA bought and are now the owners of this debt are they likely to be any more helpful? I write this expecting I already know your answer ha!
Sara (Debt Camel) says
no because they have to use the same default date the original lender did, so you have to ask EE.
Shazz says
Hi, I’m hoping you can help me. I owe approx 11,000 to 5 different creditors. Been in a DMP since 04/17. I checked my credit report yesterday and only 1 creditor had defaulted the account in 04/17 and sold the debt to Cabot. One of the smaller creditors has agreed to accept a final settlement, just that I was curious to know why they didn’t default the a/c after being in arrears for 2/3 months so I emailed them the information they requested from my credit report. Do creditors have to default the account? Shall I wait till I get an explanation before paying the settlement-either way it’ll be 6 years before it drops off my credit report? Thanks
Sara (Debt Camel) says
Creditors don’t have to default an account in a DMP. If your DMP was only doing to last a short time, it would be better for you if they didn’t.
Take the loan you are just about to settle. If it had been defaulted, in say 10/17 6 months after your DMP began, it would be on your credit record as a default until 10/23. It’s questionable if that is better or worse than having a payment arrangement on your account which ended with the debt being settled in 2020 on your account until 2026.
But if you aren’t going to get the other debts settled soon, it may be better to ask for a default date to be added. As the article above suggests.
Shazz says
Hi Sarah,
Thanks for explaining. Just an update on what I discussed with you last week. I decided to pay off the loan last week and I also queried why they didn’t default my account in 04/17 when I entered the DMP. I got a reply back from the creditor-they explained that they did report my account to TransUnion with a default date of 03/03/17, however, TransUnion did not update their records to reflect the default. As there was an error in the reporting process, they will not add the default and they have arranged for the TransUnion entry to reflect as settled with a 0.00 balance as of 16/04/20.
I haven’t checked the other credit reporting agency but if they show the same details or even a default -can I get in touch with the loan company to get those records amended as well?
My DMP is due to end in 2022 and I am hoping to settle another account that didn’t default.
Thanks
Sara (Debt Camel) says
It’s kind of hard to guess what the other CRAs will show. At a guess i would say it’s more likely that that the creditor screwed up and not TransUnion, despite what they have told you.
Edgar J says
Hello,
I have a default recorded by Black horse Ltd in Jan 2017. I had A car loan for nearly 3 years with them and over that period I had 2 late payments (each of the late payments is year apart) and finally I decided to give back the car as I knew that difficult times are coming. I gave back the car (November 2016) I had to pay them another £1000, they sent the letter that I have to pay that amount in about a month time or make payment arrangement by certain date. I missed the payment and the date. I’m genuinely was away, but I think it stupid excuse now. Either way, after I received the default I made the payment arrangement and cleared the balance within 2-3 months. Now the question is: Can I try to dispute this whole situation/default?
Sometimes it makes me laugh thinking about this as I didn’t want to get bad credit and gave the car back, but got exactly what I was afraid and no car ;)
Sara (Debt Camel) says
Not really. You should have paid the £1000 or set up a payment arrangement. The default will be gone in Jan 2023.
leanne says
hi I have been looking for information on a default on a HP agreement. I took out a car loan in April 2018 and due to being off work sick I missed 2 payments one in Nov 18 and one in Dec 18. during that time I kept in contact with the lender who tried to do an I&E with me which showed I had more outgoings than in (would do since I was off work). normal payment was made in Jan 19 and from Feb 19 an extra £100 was paid on top of normal payments until clear in July 19. no payments have been missed since.
this is very annoying because the default is on my clear score credit file and shows “no data” on all my payments since the 2 missed payments in 2018.. is that how it works?
I now want to voluntary terminate but am not told that the company has already terminated my contract so therefore cant…
can they default my account after only 2 missed payments and can they terminate my contract preventing me from being able to voluntary terminate myself?
I made a complaint about this probably about a year ago and got nothing back, i had clearly forgotten about this until i was made aware of voluntary termination and therefore made another complaint about 6 weeks ago and still nothing.
if anyone can help me it would be much appreciated.
leanne
Sara (Debt Camel) says
Do you remember if the lender sent you a Notice of Default in Nov/Dec 18? This is a formal letter giving you 14 days notice to repay the arrears.
Matthew says
Hi Sara,
I took out a loan with PaydayUK back in Dec 2013. For one reason and another, I stopped making payments with £90 still outstanding, they stopped contacting me and I completely forgot about it.
I’ checked my credit file for the first time in many years recently and saw that they are still reporting it monthly as an active account £90 in arrears, over 6 years later. No default ever reported. My question is – should I contact them and request a backdated default dated for 2014? Are they obliged to do that? or am I shooting myself in the foot by it potentially being defaulted now in 2020?
Frankly, I’d be happy to just pay it off in full to close the account and avoid any kind of default, but either way, this is further complicated because they have obviously stopped trading. Who should I contact to either settle then loan in full or request a backdated default?
Any advice would really be appreciated.
Thank you so much.
Matthew
Sara (Debt Camel) says
It is a shame you didn’t look into this a month ago. It is now too late to put in a Claim for unaffordable lending – if you had won that the loan would have been deleted.
Yes they should add a default back in 2014. the risk is that you will be asked to pay and there may have been more interest added.
As you don’t seem very clear about what happened, I suggest you email account.services@themoneyshop.co.uk and say you have just found this on your credit record, you have never been contacted about it and you don’t understand if you owe the money or. if you do, why the account has not been marked as defaulted.
Fred says
Hi Sara
I have just been told about your website. I hope you can have a look at this issue. I have Just had this response from a lender who added at default in 2017 . I had not made any payments from October 2015 . It was default in March 2017 . Is the information below right I , don’t know how to reply to them .
Thanks
Fred
I have found evidence of us issuing you a notice of default on 11 January 2017, which allows you as a customer to contact us and set up an affordable repayments plan. However, I cannot see that you responded to this and set up an arrangement. As a result, the account had been defaulted in March 2017.
I would also like to make you aware, we are obliged to send a notice of default prior to reporting a default on a customers account. As we had not issued a notice of default prior to January 2017 we would not be able to default an account.
Sara (Debt Camel) says
who is this lender?
Fred says
Hi Sara
It’s with satsuma loans . I ve have also paid it off . It that makes any difference.
Thank
Fred
Sara (Debt Camel) says
ok, then ask them to back date the default to April 2016 at which point you were 6 months in arrears. Point out the ICO/SCOR rules (http://www.scoronline.co.uk/sites/default/files/high_level_prinicples_document_final.pdf) say a debt should be marked as defulted when it is 3-6 months in arrears.
Say you will be sening your case to the financial Ombudsman if they do not do this as they are not treating you fairly.
Zee says
Hi Sara,
I’ve just had a default logged on my credit file with debt collectors Lowell for what im assuming was an old vodafone account which I closed back in around 2016/17 I paid all associated fees with closing and months later they sent a letter addressed to my mother (account was in her name originally but I think id later taken over the DD). Informing her there was still £119 outstanding.
I disputed it and demanded previous phone calls where listened to so as to prove I had been informed all was settled. That was the last contact I had with them, they later logged it as a default on my mums credit score. This wasn’t an issue as she was in a DRO which would last for the 6 years anyway.
Last month I received a letter from Lowell, how they found me I don’t know as I’ve moved address so many times, name on letter used my first name (misspelt) and my mother’s surname (which I’ve never held).
I was hoping to apply for a mortgage in the next 2 years so this obviously trashes that. Is this company likely to go for a CCJ after all this time? And can they even log this when the name is all wrong PLUS the fact they’ve already logged the same debt on another persons file?
Thanks
Sara (Debt Camel) says
A CCJ is much more likely if you ignore communications.
I suggest you just send them a puzzled letter asking why a debt has appeared on your credit record which appears to match a letter that has arrived which is addressed to xxxx xxxxxxxx. When they sort that out, if it is the old vodafone account (at the moment you are just guessing!), you can say that was your mum’s debt, you spoke to vodafone about it back 20116/17 and it was resolved years ago and ask for proof there is a balance owing.
If they manage to prove that, you want to know why there is a default for this debt on your mum’s credit record (ask her for proof it is there, also whether the debt was included in her DRO) and point out that in any case the default date should be back in 2017.
mike renville says
Hi Sara,
This is a great blog with so much useful information. I went onto a DMP in 2010 which currently still has 8 years to run. I recently wrote to a number of the creditors to ask for CCAs. Several have come back to confirm they can’t find the CCAs. One of these particular debts is with PRA. They have acknowledged it is not enforceable but have also said this:
“This account is currently reporting as live which means it is non-defaulted. There is a monthly contractual payment of xxx and currently no arrears. If you continue to make the monthly payment no default will be issued. If you fail to make the contractual payments this may lead to a default being applied to your credit file”
My questions are (1) Are PRA still entitled to put a default against the debt if I stop making the monthly payments, despite the debt being unenforceable and the DMP having begun over 10 years ago? (2) If they are entitled to do this, would it be worth me trying to make a F + F offer to them to settle the debt for a token amount, notwithstanding that it is unenforceable, but making the offer conditional on them agreeing not to report the debt as defaulted?
I would be very grateful for your input. Thanks in advance, Mike
Sara (Debt Camel) says
(1) yes BUT I suggest you go back to the original lender for the PRA debt and ask them to add a default. The debt will then disappear from your credit record
(2) you can try but PRA may refuse a token payment while the debt is still showing on your credit record. How large is the balance?
mike renville says
Thank you so much Sara.
In relation to point (1) I read your advice as saying that if the original lender agrees to default it, this will in effect be retrospective and therefore won’t affect my credit score (because it will be over 6 years old) . Do I need to give a reason for my request and do I have some sort of right to insist they default it from around the time that my DMP began (or is is very much up to them).
In relation to point (2), if the original lender agrees to default it and the debt disappears from my credit score, then I guess PRA wouldn’t then have much leverage and might be willing to take a lower F +F. For info, the debt is £9,800
Sara (Debt Camel) says
Yes you have to give a reason! See the article above which explains why they should have defaulted it.
Onve the debt is off your record you can just ignore it. No reason to offer a f&f at all!
mike says
Hi Sara
I followed your advice and went back to the original lender for the PRA debt (Barclaycard) to ask them to add a backdated default.
Barclaycard have now responded. They start off by saying “we are unable to support your complaint as we have dealt with your account correctly”.
They then go on to say that in 2012 they agreed a repayment arrangement with my DMP provider to make reduced payments with interest reduced to 0%. They say “no default was registered on your credit file, which was correct and in line with our policy at the time. We transferred ownership of your account to PRA in 2015 on the basis that PRA would continue to report the position on your account to the credit reference agencies.
They then say ” As we have been reporting your account was on a repayment arrangement since 2012, I have arranged for this entry to be deleted from your credit file and have also requested that PRA delete their entry. Please allow up to 8 weeks for this amendment to reflect with the credit reference agencies”
I am not sure whether the final paragraph is significant or not. They have clearly rejected my request to add a backdated default, but by them “deleting the repayment arrangement from my credit file” does this remove the risk of future adverse credit reporting in the event I stop paying it?
Thanks in advance!
Sara (Debt Camel) says
My guess is that they are doing this by adding a default … I think you need to wait and see what happens.
mike says
Thank you Sara. If i go back and check my credit records in a few weeks and the PRA debt is no longer there, do you think I can then safely assume they added a backdated default, or should I follow it up in some way?
Sara (Debt Camel) says
If it’s not there I think you can relax. Except that of course you still owe the debt… have you made a payment arrangement? Could you afford to make a full & final settlement to it?
Rachel says
Has anyone had any success with a “pay to delete request” in particular Lowell and Link Financial? Both defaults are 2 years old, however ideally I would like them fully removed from my credit file, I am getting very mixed messages online and people are advising its worth a try because of them being a debt collection agency rather than the original lender. Also, how do you work out how a default is affecting your credit score? Does it have a specific scoring system per default depending on amount/age etc?
Any help would be appreciated.
Sara (Debt Camel) says
Debt collectors should not delete a default just because you pay it. That is against the credit reporting rules. You can ask if you want but I think you will be wasting your time.
See https://debtcamel.co.uk/credit-score-change/ which has some numbers.
Linda says
Was hoping you could help. A debt appeared on my credit report in January 2020, it is from Myjar an account I thought was paid off years. The start date is listed as 24th January 2014, but I took out the loan I in 2012 and it has an X for missed payment for every month until January 2020 when it appeared. It is shown as status – currently open.
I honestly thought I had paid it off as I had a few loans like this, but as I said a couple of years before the listed start date shown. I thought I had cleared them all. But to see it suddenly reappear makes no sense. My question is even if I had somehow failed to pay this, shouldn’t there be a default date after all this time? as if there wasn’t, then surely it would have remained on my credit report and not dropped off. Any idea how it could suddenly reappear?
I have emailed them, they said they would need 30 days to provide the information, I heard nothing back, I emailed again to no reply and then again saying if I didn’t hear back I would be taking this to the financial ombudsman and looking for compensation. I don’t know what else I can do, I can understand things can take longer at the moment, but the whole thing seems to not make any sense and they don’t seem willing to rectify or explain.
Thanks in advance for any help or advice.
Sara (Debt Camel) says
If you can show the debt was from 2012 and you thought it had been paid off, then Myjar has to explain why it wasn’t, why they have only just added it to your credit record and why the start date is wrong. Has it been 8 weeks since you first told them about it?
Linda says
It has been 7 weeks since my original email.
The thing is I have no proof that I paid it. I had a few payday loans back in 2012 as was in a bad position, thought I had them all paid off and haven’t used anything like that since. Its only been the past couple of years I’ve regularly checked my credit reports and I know for a fact that this debt wasn’t on there in this period.
I received a payment from Wonga and when I heard I would be getting this I decided to contact all the companies I had loans with back then to see if I was due any other payments. Then a couple of months later this appears. So I think it can’t be a coincidence.
I just would have thought if I hadn’t paid it then it would have defaulted and not been able to be readded and if I did pay it like I’m 99% sure I did then it wouldn’t be able to just be created again, especially with the wrong date. Either way I can’t work out how they’ve made it appear 8 years later and I thought they would have more urgency to sort it as surely its not allowed?
Sara (Debt Camel) says
The point about statute barred debt is that things should be sorted out within 6 years exactly because don’t keep records forever. You need to see what the reply is to your complaint and send it to FOS when it has got to 8 weeks.
Linda says
Ok, thank you for your help.
Douglas says
Hi Sara,
I have been in a DMP since 2007 so all accounts would have defaulted then. Almost all debts have been sold to different collection companies. One from Link Financial (I’m not sure who the original card was with.) shows on my credit file as a credit card with a balance and no limit. It doesn’t show as a default but having a balance with no limit is affecting the score. Is this allowed?
Sara (Debt Camel) says
Those are seriously old debts – how many still show on your credit records? You should ask the original lenders to add a default to your credit record back when they sold the debt.
For this Link debt, ask link who the lender was.
You could also consider asking all the current debt collectors (NOT the original lenders) for debts that were credit cards, loans and catalogues to produce the CCA agreement for the debt. The chances are some won’t be able to… See https://debtcamel.co.uk/ask-cca-agreement-for-debt/ for more about when & why to do this.
Douglas says
Only the one shows on the credit file. I live in Scotland. Does that make a difference?
Sara (Debt Camel) says
Living in Scotland doesn’t change the credit record rules – this Link debt should have been defaulted a long while ago. And it doesn’t affect asking for a CCA agreement.
Douglas says
Hi Sara, I sent the request for the CCA agreement on 20th May with no response. You’ve said to give them a couple of months. Meanwhile the debt is still being reported to the reference agencies. Should I ask them to remove this separately?
Sara (Debt Camel) says
No.
Even if the debt collector cannot produce the CCA agreement, this will not get the debt removed from your credit record.
Douglas says
Hi Sara, the debt is 13 years old and should have defaulted in 2007. That’s why I’m asking if I should deal with having it removed from my credit file separately from the CCA agreement
Sara (Debt Camel) says
what proof do you have that the debt defaulted in 2007 if you don’t know who the original creditor was?
Douglas says
All my debts should have defaulted when I entered the DMP IN 2007. This is the only one showing on the credit file. I know it was a Barclaycard as my DMP shows that.
Sara (Debt Camel) says
then you should ask Barclaycard to add the default.
Jonathan says
I’ve just had it confirmed by 2 credit reference agencies that orange/EE have never recorded on my credit file.
But Lowell have recorded a default on my credit file over four years after the account was opened and 14 months after the account defaulted. The bank account that was paying the account to orange doesn’t match any of my accounts.
What do I do it’s taken me 4.5 years to get this information out of the credit agencies and both SAR request don’t show orange on my file. Best way to get compensated for this as this has cost me and my business a lot in higher interest rate?
Sara (Debt Camel) says
The bank account that was paying the account to orange doesn’t match any of my accounts.
Are you saying this Orange account was not yours?
Jonathan says
Yes never been with orange as you can’t get signal in my house.
Sara (Debt Camel) says
Then you seem to have been focussing on the wrong things to look into. What is on the CRAs, the date of the account and the date of the default are either irrelevant or just symptoms of the problem. The problem itself is that the debt is not yours, you have never had an Orange account. If you want to SAR anyone, send one to Orange.
Rachel says
Is anyone able to tell me what this means?
Defaults: all communication defaults now ignored. Level 1 limit increased, up to £500 will now be allowed (from £300).
Thanks
Sara (Debt Camel) says
You need to ask Aldermore.
Rachel says
I thought you would know what a communication default was, I thought with was a forum to help? Thanks anyway
Sara (Debt Camel) says
Does “communication” include mobiles, broadband, landlines, TV packages, streaming services…
Do they mean the default is ignored if it is unpaid or if it has been paid?
What if there is a CCJ on this debt that has been paid, is that ignored?
There is simply no point in me guessing what Aldermore mean by this.
When you want to know what a specific mortgage lender will do, you have to ask the lender or talk to a good broker who covers that lender.
AT says
Hi,
I started a DRO on 14th December 2016 (I completed it exactly a year later) two of the (now closed) accounts included in the DRO show the default date as a) January 2018 and b) December 2017. Is this correct and if not, is it worth contacting the lender to ask them to amend it?
Best wishes
Sara (Debt Camel) says
Those aren’t right and they are so far out it is worth getting them corrected. See https://debtcamel.co.uk/repair-credit-record-dro/
AT says
Thank you that is really helpful, I think I misworded my comment a little. The default start date is correct but the default remains showing on my account until the above dates. Should it still show throughout the period of the DRO?
Sara (Debt Camel) says
so the date you gave are the dates the accounts shows as closed/satisfied/settled?
AT says
Yes they are
Sara (Debt Camel) says
ok well they should really have been marked as clsed/ satisfied on the day your DRO ended. But if the default dates are before the date of your DRO, they will all drop off by the time your DRO does so you won’t gain much from getting them put back a bit. It won’t help your credit score.
AT says
That’s really helpful thanks :)
Jessica says
Hi Sara,
I had a loan with Sunny which was in default from the end of 2016. I paid a token amount every month, but recently was able to settle the balance, and was keen to do so to improve my credit rating. When I paid the full balance, the balance showed as £0, but the default date changed to the date I had paid the account in 2020, adding a further 6 years to the default which would have been due to drop off in 2022. I am distraught and despite having spoken to Sunny twice today am no further forward in understanding why. I disputed it with Experian who came back and said they couldn’t change it as Sunny claim it is correct.
I want the default date to show the original date from 2016, is it possible to get this changed, or are they in the right? I feel I’ve been penalised for paying the account and wish I had just left it now!
Thanks
Sara (Debt Camel) says
This may seem like an irrelevant question, but how many loans had you had with Sunny before this one?
Jessica says
Hi,
I can’t really remember, I’ve had payday loans in the past but I’m not sure they were with sunny. Does this make a difference somehow when they report it?
Thanks for your reply!
Sara (Debt Camel) says
To answer your question, Sunny should not have changed the default date.
Send them a formal written complaint – this is not something to try to do on the phone. Email them at help@sunny.co.uk with the email subject – “Complaint – you have incorrectly changed the default date on my credit record”
Say what happened, Attach a copy of your previous credit report (A screen shot of the relavant page will do) showing the old defualt date. Ask them to change the date back to what it was. Add you will send the complaint to the Financial Ombudsman, at which point you will also ask for compensation for the hassle, if they do not resolve this.
(The reason I asked if you had previous loans from them is if you had borrowed several times from them you could put in an affordability complaint, see https://debtcamel.co.uk/payday-loan-refunds/. If you won that, you could get a refund of some of the interest you paid and any default on the last loan would be likely to be deleted, not just have it’s date changed.)
Jessica says
Hi Sara,
This was for two loans at the same time, so maybe could put affordability complaint in? I will e-mail then and ask them to put the date back to the original default date which was 26.10.2016 (so a big difference in terms of time!)
I am so glad I discovered this page, you are a godsend!
Thank you
X
Jessica says
Hi Sara,
Thanks for your help a few weeks ago. Just wanted to update you that I did as you advised and they have changed the default date on my credit file! I’m so pleased.
I also used some of your other information to help me get incorrect information changed on my credit file.
I really appreciate your help and wanted to say thank you! ❤️
Shez A says
Hi Sara
We are asking our DMP company to negotiate a F&F IVA for us which they are willing to do. However, they are including all unenforceable debts.
Is it normal to do? Just asking as can’t find info anywhere on the internet and you have been very helpful in the past.
thanks so much
Sara (Debt Camel) says
How much are you offering in the £? why are you going the IVA route rather than just offer settlements yourself?
But if you can afford the F&F amount, why do you care which creditors get how much?
If it gets turned down, I would consider ditching your DMP company, setting up a DMP yourself and planning on offering F&Fs yourself.
Shez A says
Hi Sara, sorry, I did not communicate properly. Its not the full amount, its a final offer, a one-off payment. The DMP company call it a F&F IVA settlement. I tried offering settlement figures early last year to all the creditors, but they said no. I also requested CCAs and creditors could not provide for 4 accounts, said unenforceable so stopped paying them. I now have a small lump sum of £7K so really just trying to sort my debts and live stress-free.
thanks
Sara (Debt Camel) says
how large the are debt you are trying to settle with the 7k and how much of that total are unenforceable? Were you offering less last year as a settlement?
Shez A says
Hi Sara
Its £48K of which £10K is unenforceable. Yes, last year I offered a final settlement of 25% of the debt value to all creditors….as they said no, I bought a small flat to live in…this was in Feb 2019.
thanks
Sara (Debt Camel) says
How large are your DMP payments at the moment? Are the unenforceable debts still being paid?
Shez A says
Hi Sara
DMP payments are just under £25 per month.
No, the unenforceable debts are not being paid at the moment.
but the DMP company will include it in my IVA settlement request, hence the query.
thanks ever so much
RJ says
Hey Sara,
Huge fan of your website! Keep up the great work :)
I had DRO made against me January 2020 and Very registered a default promptly. However, upon going through my credit file I discovered, that in 2017/2018 I had 14 consecutive months of non-payment/token payments. Also similar thing happened in 2019 – 10 consecutive months of non-payments/token until I had DRO made against me and a default registered by Very.
I wrote a complaint yesterday asking for the default date to be changed to 2017 as I thought it’s only appropriate considering 14 months of not making payments as per credit agreement (I know it doesn’t matter super much as will have DRO on my file for 6 years regardless, but I thought it would be nice for that particular default to drop even 1,5 years earlier so I can start fixing my credit score etc).
I got a reply from Very today saying basically this: ‘Please call DRD on 0844xxxxxx’.
Now I’m not an expert on complaints but I thought they have 5 days to acknowledge and 8 weeks for final response. And their little message is’n really either one of those. So now I’m unsure what to do and even who the ‘DRD’ are?!
How should I proceed and do you think asking to change default date under those circumstances is a valid request?
Would be very gratefull if you could give me some pointers, please.
Sara (Debt Camel) says
You can ask to have the default date changed. Personally I think it’s a waste of time as it will make almost no difference to your very poor credit score, but it’s up to you.
I have no idea who DRD is. But if you want to proceed I suggest you phone them.
Rachel says
Hi Sara,
After complaining to Link Financial about a default on my credit file (shouldn’t have been registered) they have agreed to remove the default, Would it be normal to ask for compensation regarding this matter before I was to pay the balance in full with them? It’s caused a delay on our part and shouldn’t have been reported as a default in the first place.
Thanks
Sara (Debt Camel) says
Has this debt been settled? When? What will show, missed payments or a pAyment arrangement?
Rachel says
The incorrect default date shared on my credit file was June 2019.
Once the default is removed it will show as an active payment plan, the balance is £441 and I wanting to pay it in full. Before doing that due to an the error I would to check if it was normal to receive any compensation.
Sara (Debt Camel) says
and how much has it affected you?
Rachel says
I wouldn’t of realised I had the default but we are applying for a mortgage that’s how it came to light, it’s prevented us from being able to progress and they’ve taken 2 weeks to come back to me confirming its incorrect and going to be removed, so it’s the delay that’s caused an issue.
Sara (Debt Camel) says
so were you paying this debt all the way along? which is why you say it should not have been defaulted?
Rachel says
Yes, I was paying the debt monthly. This is what the email says and I am awaiting the letter confirming. I take it due to them removing the default that’s deemed as a resolution on their part, however I’m not fully happy with that and wanted to know if it would be deemed acceptable for me to ask for compensation.
Dear Miss Carr,
Please be advised that we have written to you under separate cover confirming that we have arranged for the default entry to be removed.
This letter should be received by you shortly.
Kind regards
Sara (Debt Camel) says
Realistically you haven’t actually lost anything as you would not be able to get a mortgage with an unpaid default.
Rachel says
I don’t have a default, a default should have never been registered and they’re removing it. That’s my point
Sara (Debt Camel) says
sorry, I should have said you would be unlikely to get a mortgage with a debt in a payment arrangement.
ODM says
Hi Sara!
I have some defaulted accounts dating back to when I was divorcing my husband about 5 years (I did get myself in a pickle, but these accounts don’t ring a bell) showing on my credit file still, and I’d appreciate your insight! These accounts were apparently purchased by DCAs around 2 years ago and I’ve had the devils job getting any sense out of the companies, who keep passing me back to the original ‘lenders’ (one of which has now disappeared)
1) I’m struggling to see the default dates because none of the accounts that are now with DCAs have any payment data on them (well, not on Clearscore at least), so I can’t tell when they’ll disappear.
2) I have asked the DCAs for information on the accounts (I’ve asked for signed agreements, contracts or even just statements or paperwork).
All of them have said they’ll go back to the original lender but none of them have been able to produce anything in over a year. One took it to court which I defended based on the lack of paperwork – the court threw the case out. Do I have a good case to write to the DCA and ask that the default thrown out by the court be removed? What about the others – they haven’t been able to provide a single document about these debts. I feel nearly 2 years of asking is enough time for them to produce the relevant paperwork!
Sara (Debt Camel) says
Are you denying the debts are yours? or have you just been asking them to produce the paperwork?
I suggest you look at the equifax Statutory Credit report https://www.equifax.co.uk/Products/credit/statutory-report.html to see if these debts have a default date added and when it is.
Do I have a good case to write to the DCA and ask that the default thrown out by the court be removed?
not if the only problem is they can’t produce the CCA agreement.
Philip says
Hi Sara,
I have an account on my file that was added on the 5th April 2020. I have asked Experian to remove it as it is incorrect. They have contact the named company, who has responded to say that it is accurate stating ‘They’ve confirmed that this information is accurate, so we don’t have permission to amend or delete this entry in your Credit Report.
Esure Insurance Service Ltd has stating”Customer had a car Insurance policy with us until 5 April 2020 through our sister company First Alternative account now closed.”
The issue is my credit file states it was opened on the 5th April 2020, with an update dated 26th April 2020. As above, Esure has stated the account was closed on the 5th April 2020. How can they state on my account it opened on the 5th April if Esure themselves stated it was closed on the 5th April.
The account isn’t a new account. It was from last year and ended on the 5th April. My policy was up for renewal, which was declined. So they agreed to cancel my policy. How can they add a new policy that doesn’t exist and was cancelled after the policy ended. The file is, in effect, stating I have a new policy with them from the 5th April, which the company has even agreed was closed on the 5th April. What can I do? It has a balance of £597, which is incorrect, as the policy wasn’t taken up.
Sara (Debt Camel) says
send esure a complaint in writing (email them at CustomerRelationsExec@esure.com with COMPLAINT as the subject line) and ask them to correct your credit record. If they refuse, send the complaint to the Financial Ombudsman.
Amy says
Hi Sarah,
I took out a lot of payday loans back in 2016 with my jar, literally month after month and then after a few months apart, i took out a loan in feb 2017, after 3 payments i could not afford this loan anymore and spoke to them on the phone and they told me to pay £1 a month for a year and would then look at it again, i did this and then tbh forgot all about it so the £1 payments stopped, they then registered a default in september 2019, surely the default should be for 2017? I complained via email and they looked at all my accounts and said it was un responsible lending and would wipe 500 off the loan still outstanding but would not change the default date. Is this correct? Or should I take this further?
Sara (Debt Camel) says
Do you know how much interest you paid on the previous loans that were settled?
Amy says
I paid roughly £550 interest on the previous loans as i paid a lot off early and then re-borrowed.
They have agreed that it was irresponsible lending but say the latest one from Feb 2017 wasnt, although looking back through my emails, they requested a bank statement before they paid the loan out which showed pay day loans from other lenders and a lot of gambling (not in this position anymore) therefore wondering if this loan should of been issued to me.
My issue is the default, i made no payment between May 2017 to September 2017, the debt was then sent to a debt collectors in 2018 where i paid £1.00 ever week. I have been charged a £15 default fee in June 2017 but no default.
I will be taking the case to the ombudsman as they will not change the default date, do you think I would have a case?
Sara (Debt Camel) says
Which is the lender?
When did they decide to offer you £500 and have you accepted that offer?
Amy says
It was MyJar pay day lenders and i made a complaint 2 weeks ago when I saw the default on my credit report as I wasnt even aware I had one.
I raised it with them and they replied and said they had investigated and decided that 5 of the loans were irresponsible and would refund the interest however they beleived as the last loan was taken a few months later and current balance is £1500, they would ofset the £500 interest off that.
I havent accepted as I wanted the default date changing, i replied questioning this and they advised me to take it to the ombudsman if I was not happy
Sara (Debt Camel) says
ok then that’s what you need to do – but don’t just query the lack of a default, ask for a refund on the later loan – it was large!
Amy says
So am i best now taking this to the ombudsman and asking for the default date changing and also a refund on the last loan? Or should the default be removed altogether?
Sara (Debt Camel) says
Ask for a refund on the last loan and for the default to be removed and say that if you don’t get a refund you think the date of e default is wrong and that it should be corrected.
Amy says
Sorry I should of added that the last loan in 2017 was for 1000 over 12 months, it wasnt just a pay day loan as they do loans over various times, i paid 3 x £151 from march 2017 to may 2017 and them could not afford but due to the interest not stopping i still owe £1500
Henny Wren says
I have been paying reduced payments to Hitachi Finance since August 2019 but they refused to default my account. I stopped paying them in January 2020 and have wrote to them again to default my account but again they are refusing as they are receiving token payments but then asked why I had stopped payments from January!
Is there anything else I can do about the company not defaulting my account? Can I write to ICO? If so what sections do I apply the to?
Sara (Debt Camel) says
do you have other problem debts as well?
was this a large loan? did it cause you a lot of problems?
what were the normal monthly payments and what were the reduced payment you were paying from August?
how long do you expect it will take to repay this debt/
Jenny Wren says
Yes, over £3000, no problems they were very good letting me reduce payments. Original £123.43pm, then split from hubby, payments reduced £ 18.42. Not sure on how long to pay as depends on finances, divorce, mortgage!
Henny Wren says
I stopped paying Hitachi in January to try and push them into defaulting my account! Please help!
Sara (Debt Camel) says
You can send them a written complaint then send that to the Ombudsman. But I am not sure why you are so desperate for this to happen. Your situation seems quite complex and if there is a possibility you could pay this off soon it would be better not have had a default added.
Henny Wren says
As I can only afford to pay £1 pm I wont be able to pay this off anytime soon! Thanks for your reply
David says
Hi
Got into a lot of debt over the years
Made last agreed payment to all debts in Nov 2018, stopped all payments. I then set up a self managed debt management plan and started making payments again in April 2019.
Checked my credit file and all have been defaulted bar one which just says late payment which I guess is just another way to describe an arrangement to pay. I’d rather this was defaulted like the others as one more won’t do any harm. How would you approach getting this last account defaulted? I missed 4 payments before the reduced first payment was sent from my dmp.
Sara (Debt Camel) says
Article above says what you can say when you want a default added.
David says
Thanks for your reply. I’ve read the above and you state
“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.”
I don’t quite understand my rights as to asking them to mark this account defaulted with the credit reference agencies as mine has definitely done this. I paid nothing for 4 months and once I started paying its less than the contractual payments. I have been paying on a a regular basis as part on my dmp but now I just really want a default adding to this account the arrangement to pay marker does nothing for me.
Can I just write to them and ask them to default this account? HSBC sent me a default notice which I understand is diffent to to default marker with the CRAs but I just want this default, and then I know in 6 years this will not hamper my chances of getting a mortgage
Many thanks, your insight is massively appreciated
Sara (Debt Camel) says
Yes you can ask them. If they refuse, you could simply stop paying… but cross that bridge when you come to it.
I know in 6 years this will not hamper my chances of getting a mortgage
so the DMP will have been paid off by then? Otherwise it will definitely harm your chance of getting a mortgage even if your credit file looks totally clean…
David says
Hello, thanks for your reply.
Sorry it should have said the arrangement to pay will hamper my chances as it will still be on my credit file. I’m hoping in 6 years time to have cleared my debts and at that point if I do owe nothing the accounts that I defaulted will disappear from my credit file 6 years from default but the arrangement ro pay will be live until 6 years after its paid so in essence live on my credit file for 12 years so although debt free it will still be a big black mark on my credit file. Cheers
Sara (Debt Camel) says
That is all true. I just wanted to make sure you know the debts have to be settled, not just drop off your credit record. Which you clearly do. Good luck!
Jenny says
Hi Sara,
I hope you can help. I am trying to look at the bigger picture for improving my credit score after defaults and really hope you can advise on what would be best…
I have 7 defaulted credit card accounts which will drop off my credit file next year totalling Over £20k.
I also have 3 defaulted credit accounts from last year totalling around £3k.
I have another credit card which I have received a default notice for At the same time as the last 3 (nearly 12 Months ago) however this is not showing defaulted on any of my credit reports – it just shows I am making payments.
I have a token payment arrangement in place for each creditor and update them regularly.
I have recently received some money from a successful PPI claim and have written to all creditors to give pro data full and final settlement offers – most of which have come back with a higher settlement figure.
My questions are –
1) to maximise improving my credit score should I try to prioritise paying off the newer debts first so that they show as settled hopefully around the same time as my older defaults drop off my credit file? (I will still make payments to all accounts past the 6 year default dates as I don’t want to risk a CCJ).
2) would it be beneficial to try to clear the account that has defaulted but not showing on my credit report?
3) are creditors likely to accept a counter offer for the F&F settlement if I make one?
Any guidance would be most appreciated.
Thank you
Sara (Debt Camel) says
So you may not feel like another uncertain option is helpful, but read https://debtcamel.co.uk/settlements-old-debts-cca/. If some of your older debts turn out to be unenforceable, that gives you more money to pay off the younger ones.
Jenny says
Thank you for your very quick reply :)
I’ve written to all of the older creditors to ask for the CCA and the timescale lapses on Tuesday however I suspect that the current COVID situation means that they are allowed extra time to respond? I also recall receiving a letter a couple of years ago from one creditor saying that Their debt was unenforceable but I still had to continue paying. From reading on your site, I see this is not the case so I have also requested SAR for each account so I can see which one it was for.
Would you advise paying the younger debt off either way? Thanks again
Sara (Debt Camel) says
In general it is often better to pay off the younger debt more quickly as that will show on your credit records for longer.
Andrew says
Hi Sarah,
I currently have a default on file that were originally from Very. The debts have now been sold to Lowell. The problem I have is that I believe the default date stated on my file is incorrect.
The last payment i made with Very as per the credit agreement was on the 30th of December 2013. I did enter a payment plan with them however, my circumstances got worse and after only 3 or 4 payments I wasn’t able to maintain it. My understanding is that even though I was in the payment plan I wasn’t paying the correct amount and as the CA therefore, the default should have been applied 3-6 months after my payment in December meaning the default date should be around June 2014. Worse case even if they did apply it when I stopped the payment plan it’s still way out. The debt collector that has the debt now has a default date of 16/09/15 on my file, well over a year out. I did raise this on Experian resolution centre but Lowell came back with that was the date provided by Very.
If the default was applied correctly then this would be dropping off in a few months but I am scared to contact anyone directly about it incase it restarts the clock on the debt.
Sara (Debt Camel) says
If the default was applied correctly then this would be dropping off in a few months but I am scared to contact anyone directly about it in case it restarts the clock on the debt.
If you want to get the date corrected, you have to ask Very to do this. And yes this will restart the clock.
But if you are hoping this will get to be statute barred without you having to pay anything, you may be disappointed. Read https://debtcamel.co.uk/statute-barred-debt/. It isn’t the default date on your credit record that matters for this. It used to be the last date you made a payment. But now there is the complicating factor of whether you have been served a default notice (which has nothing to do with your credit record).
So your options are
1) live with the date and hope it disappears without Lowell asking you to pay it. May well be unlikely to work.
2) ask very to correct the default date and then get Lowell to to the same, which does reset the clock
If you are asked to make payments, you can talk to National Debtline on 0808 808 4000 about whether it is statute barred, if they say it isn’t you may have to arrange monthly payments. Though at that point you could consider asking Lowell to produce the CCA for the debt, see https://debtcamel.co.uk/ask-cca-agreement-for-debt/. If they cant the debt is unenforceable and you can not pay and won’t get a CCJ – but this wont get the debt removed sooner from your credit record.
Not an easy situation.
David says
First of all, Thank you for putting together this site, it has been a great source of knowledge and very helpful to people like myself who don’t have the expertise like you do.
I had a defaulted account with vodaphone back in 2014, I missed my 3rd payment in a row in march 2014 and my 6th in August 2014.
Vodaphone entered a default on 5th September 2016, My understanding is this is at very best 2 years late.
my plan was to appeal this on the grounds of ” incorrect date’ and ask for it to be correctly entered in march 2014.
The bit I am confused about is reseting the clock and time barred.
If vodaphone agreed to move the date to march 2014 the debt would be over 6 years old and I assume be removed from my credit file? does the “reseting the clock” apply here at all?
at the time Vodaphone refused my offers of a payment plan and ended up stopping with sending me letters and calling me, to this date the debt remains unpaid.
any advise would be great.
Thank you
Sara (Debt Camel) says
at the time Vodaphone refused my offers of a payment plan
why did they do that?
David says
They said it wasn’t good enough, the contract was terminated and this put the balance to nearly £2000.
at the time I offered all I could afford £20 per month and they refused, saying it wouldn’t make a dent in to the balance.
Sara (Debt Camel) says
ok so there doesn’t sound as though there was any question that the debt was disputed or written off.
If you write to Vodafone and ask them to change the default date, is likely to reset the clock for the debt becoming statute barred. It may get it off your credit record but they may choose to pursue you for the debt again and go to a cort ofr a CCJ.
Of course if you don’t do this anyway, they may still do this anyway and they may argue the debt isn’t statute barred – see https://debtcamel.co.uk/statute-barred-debt/. Or sell the debt to a debt collector who will do this. But do you want to wake up the sleeping creditor?
David says
Hi thank you for taking the time to help me with this.
To be honest I have no problems with paying the debt, I did try in the first place.
Fortunately I am in a much much better place financially.
What I am worried about is them triggering them to carry on chasing the debt without resolving the default date.
My experience with vodaphone has never been very good and often promises are made and not followed up.
Sara (Debt Camel) says
if you don’t mind if you have to pay it, why do you care if asking to change the default date will reset the statute barred clock?
David says
Incase they add more markers to my credit file.
I have worked hard to build it back up and don’t want vodaphone to ruin it for me.
Sara (Debt Camel) says
If the debt is marked as defaulted, then there isn’t anything more they can do that will make it worse. Apart from go for a CCJ, but you are happy to pay the debt so that won’t happen.
Emma says
Hello
My partner is trying to get his finances in order so we can apply for a mortgage. Problem we have come across is with virgin media. He has 2 mobile phone accounts with payments of £22 each which have never been defaulted. The payments have been reported as 6 months in arrears since 2017. We believed these 2 contracts to have been paid and settled in 2016 when they were closed and we moved house. My partner still has an existing contract with Virgin media which is paid and up to date and the new address was given. We’re flummoxed as to why they didn’t make us aware this was outstanding seeing as we use their services at our new address.
Do you think we should pay the balances, but then it looks as though the debt is recent or ask them to apply a default back in 2017 when they should have?
Any advice greatly appreciated.
Sara (Debt Camel) says
I think he should phone them up and say he didn’t owe them any money and ask for his credit record to be corrected by setting it as zero owing from 2017. Point out they had his new address and let him take out a new contract, so why did they never tell him if he owed any money?
Andy B says
Sara,
Is there “chapter and verse” anywhere on application of defaults, and ‘doubling’ of defaults.
I had a case where MBNA sold a debt to PRA Group, both showed an active, unsatisfied default with money for about a year, neither yeidling claiming it was ‘the other parties’ job to rectify the matter. Both the defautls were reported at all CRA’s with a sum owing for the same date (MBNA’s default date.)
PRA eventually yeilded, gave half-an-apology and now the MBNA one shows as £0 for the period before the sale to PRA, and an active PRA one.
Should have PRA simply not taken over the MBNA file rather than creating a new defaults as I now have two defaults for what is, the same account?
Sara (Debt Camel) says
What should happen is the original creditor should make the debt as satisfied with a 0 balance. And the debt collector should report the debt with the real balance and the same default date as the original creditor.
This looks like two defaults but is only counted as one for the purpose of credit score calculations.
Andy B says
Thanks Sara,
The problem I had is that MBNA and PRA were both reporting ‘live’ defaults with slightly different amounts owning, as I understand it this would have been reported as two separate defaults.
Not until I got quite heated with them did they null the MBNA default, admitted it was a sort-of-maybe-something-to-do-with-us-but-don’t-tell-the-ico-all-solved-now-next-please sort of apology.
MBNA blamed PRA, PRA blamed MBNA, usual story…
Sara (Debt Camel) says
It was MBNA’s fault. But it’s sorted now.
Shaun says
Hi Sara,
I had an original loan taken out with Ratesetter is January 2014. In February 2016 I was unable to continue to pay the amount as in so much debt. I went on a DMP and entered a special arrangement/arrangement to pay. I finished the DMP and continued to pay a set amount as per the agreement. This continues to be paid up until now and is up to date. Ratesetter have now offered me a partial settlement and will also not look to recover the entire loan if I pay. I have asked friends and family to help and have an opportunity to pay. However, if I pay the partial settlement, will it show as a default now (todays date) as Ratesetter said it was not originally put into default? Or should I request they default from the February 2016 date? I don’t want it to impact my credit score for another 6 years from now if I pay it off.
Please help. Kindest Regards.
Sara (Debt Camel) says
how low is this partial settlement? What is the rest of your financial situation like?
I am asking because it is not a good idea to borrow from friends and family to repay an old debt unless the rest of your finances are in a very good position.
How much have you been paying to this ratesetter debt each month and what balance is owed?
shaun says
Hi Sara,
The settlement figure is £2000 and this will then clear all of my debt. My family are gifting the money to me as have been in debt for over 15 years or so. This would be a huge weight off my shoulders. The balance was nearly £6000 as of today and I have been paying £125 per month. They have now said that they could put the default date back to Feb 2016. I have this in writing. Is it the best way to do it?
Sara (Debt Camel) says
That sounds good.
shaun says
Hi Sara,
Thanks so much for the quick reply
Do I need to ask for anything specifically on the partial settlement letter? If they have written that “They will backdate the default date on my credit file to the start of my reduced payment arrangement of February 2016” and “Upon receipt of your payment we will report your account as partially settled to the credit reference agencies which will indicate that nothing further is owed under my loan agreement and will not take any further action”
Is that wording correct or should they be more explicit with anything?
Also how will this impact my credit score?
Sara (Debt Camel) says
That looks fine. Your credit score will drop a bit because of the default. But the default is already over 4 years old and it will disappear in Feb 2022.
Settling the loan doesn’t make a difference to your headline credit score, not does partially settling it.
shaun says
Sara,
Thank you so much.
If we are looking to buy a house by the time these drop off my credit score, will the defaults show up anywhere or are they completely invisible?
Sara (Debt Camel) says
They are invisible except to the original lender, who can see them on their internal records.
Jay says
Hi Sara, I need some advise please, loan taken in Jan 2012 with Santander for approx £2,200. During 2014 i started a DMP with stepchange. Santander sent me a default notice in Jan 2014. In July 2014, the debt was sold to a DCA, i received comms from Santander and an intro letter from the DCA. Looking over old statements, Stepchange stopped paying the debt in March 2015, i have no explanation as to why, the outstanding debt was approx £1,800.
I took over the DMP myself this year. Having checked my credit file, all debts have dropped off except this one. This record has not been updated since June 2014, while the debt was still with Santander., it shows 6 months overdue but no default is shown. I contacted Experian to ask for it to be removed sending them a copy of the default notice. They have queried it with Santander and responded to say that i need to contact the DCA for them to update the file.
Is it the DCA’s responsibility even though the default was issued by Santander, based on the dates it looks like it will become statue barred, is that correct and then does it fall off my credit file? Do i contact the DCA or leave it alone until March 2021, i need to understand the implications before deciding how to proceed please, thanks
Sara (Debt Camel) says
When you had a default notice from Santander in Jan 2014, you presumably had stopped making any payments for several months before that? do you know how many? And when did your DMP start?
You haven’t received any communications from the debt collector at all? who is it?
Jay says
The agreement date is 19 Jan 2012, i made 9 payments via direct debit between Jan – Sept 2013, no payment made in Oct 13 based on advise from stepchange I cancelled the direct debit, the first DMP payment commenced in Nov 13, the monthly amount was £69.73 per month, which dropped to £7.32 per month under the DMP..
In Feb 2014 the debt was assigned to Newday, in July 2014, the debt was sold by Newday to Lowell. The only communication I had from Lowell was the introduction letter. I’ve had no further contact from Lowell subsequently.
Payment only ceased for 1 month whilst the DMP was being set up and the reduced payments commenced, 6 or 7 payments at the reduced value before the payments ceased. DMP started in November 2013.
(Just to add, the loan repayments didn’t start immediately, they started 12 months after the agreement date and would have continued for 36 months, if my circumstances hadn’t completely changed the following year.)
Sara (Debt Camel) says
ok, so based on that a credit record default of January 14 would be reasonable.
As this is before the debt was sold to NewDay, if you want the default date correct on the debt, you should ask Santander to add a default date of Jan 14, pointing out you were in a DMP and they had issued a Default Notice. Then when they have done that, you need to ask Lowell to use that same default date.
As you carried on making payments to the debt, it cannot be statute barred until April 2021. I suggest you talk to National Debtline on 0808 808 4000 to see if they agree that it will be statute barred by that date.
But if you have these communications with Santader and Lowell that will extend that statute barred date by 6 years, which is what you are worried about.
If National Debtline agree the debt is likely to be statute barred in April 2021, one option would be to wait until then.
One approach – which may not work but has a chance – is to ask Lowell to produce the CCA agreement for the debt. See https://debtcamel.co.uk/ask-cca-agreement-for-debt/. If Lowell cannot produce it, then the debt is unenforceable in court and you can now ask for a default date to be added by Santander. But asking for the CCA agreement will rest the statute barred clock.
Another option is if Lowell send you a good settlement offer, to accept that and then get the date corrected.
Jay says
Hi Sara, thanks that’s really helpful, is there a particular legal reference I need to use to stop Santander pushing back and telling me to contact Lowell to set the default date please.
Sara (Debt Camel) says
Just say they made the error by not defaulting you and you want them to add the correct default date, and that you will be sending the complaint to the Finacial Ombudsman if they do not correct this.
Jay says
Thank you Sara
Jayne says
Hi Sara,
I have 4 x old catologues with JD williams from 2015, All 4 are on my experian account and it is only since recently I noticed only one has ever defaulted which will expire in March 2021.
I sent an email to Lowell as they have been marking my credit report with a lot of missed payments when these have never been missed and they have basically said that the 3 accounts which were not defaulted are active and will remain active and once settled, they will then be deleted 6 years after. Is this correct? Im confused as they are for balances of 200-400 yet the one that defaulted was £90. Surely it would of been better for them all to default in 2015 and will then all drop off next year. Seems they are reporting each month and even once I clear the balance, they will stay for a further 6 years? I am hoping to get a mortgage next year once the final default drops off.
Can I ask for defaults to be added and back dated to 2015? All accounts were the same and payments made via Lowell at the same time so seems strange the other 3 never defaulted, also unsure whether it was lowell or Jd williams who defaulted the one account.
Thanks
Sara (Debt Camel) says
You need to ask JD Williams to add defaults to the undefaulted accounts. Point out [assuming this is correct!] you had 4 accounts at the time, you stopped paying them all at the same time and they should all have been marked as defaulted according to the SCOR rules( see article above) but only 1 was.
When JD Williams do this, Lowell also have to use the same default dates.
Jayne says
I will do that thank you can I just ask though, they cant add a default any sooner than 2015 can they?
Sara (Debt Camel) says
Well they could, it might be 2016. But if the situation was the same for all the accounts, it seems reasonable to say they should have applied the same default date.
Jayne says
Brill, thanks for the advice
mike says
Hi Sara,
I had an overdraft with Natwest which, along with several credit cards, I couldn’t repay and they all went onto a DMP with Stephange in 2012.
I am now trying to enter into F&F settlements with all my creditors. I am keen to protect my credit record, with most of the debts having been defaulted with the credit reference agencies over 6 years ago so have now dropped off my credit report.
I am not sure if the Natwest overdraft was ever reported as defaulted. I note your comments about the default date often being different with overdrafts. My credit report doesn’t mention it. I don’t want to enter onto a F&F agreement if that means it might suddenly appear on my record as a partial settlement. Do you think I should write to the Bank to ask them if they ever reported the debt as defaulted?
Thanks in advance
Mike
Sara (Debt Camel) says
I think you should have a look at your credit records with all three credit reference agencies, see https://debtcamel.co.uk/best-way-to-check-credit-score/. If it doesn’t show on any of them, it sounds as though there was a default date of more than 6 years ago and it has dropped off.
A debt will NOT reappear if you partially settle it.
Also read https://debtcamel.co.uk/settlements-old-debts-cca/ – that wont help with the overdraft but it may help with the credit cards…
Jayne says
Hi Sara, I dispued the date of a default with a loan company 3 weeks agao and also pointed out to them that the address on the default was wrong, they had my new address but for some reason the door number was incorrect on the default on my credit report (I forwarded them the original email where I gave them my new address) I still havent had any updates from them regarding the outcome but noticed yesterday that the default has gone from my experian account, I dont want to get my hopes up, can this be a temp removal whilst investigating do you know? Thanks
Sara (Debt Camel) says
I suggest you don’t get your hopes up, as you say. I have no idea what is happening and there is little point in guessing.
James says
I have been looking at my credit file this morning, i have a old debt with Satsuma/Provident which is sitting at 5 months late, every month they update it as 5 months late rather than default, does this need to be changed to default in order for it to drop off in 6 years or will the default kick in from the 5 months late mark?
Thanks in advance
Sara (Debt Camel) says
how long ago did you first miss a payment? Are you making any payments to this at the moment?
Was this your first loan from Satsuma? How large was it?
James says
Hi Sara,
I have never made any payments, i had 2 loans the first i cleared with another loan and the 2nd i could not afford to make any payments too as i had so much debt and was gambling a lot at the time.
It was from 2017 and £1000 i borrowed, at the same time i took a £1400 myjar and this is now sitting at £2800 without any payments made.
The Myjar is in default but the Satsuma is sitting at 5 missed payments and has for over a year, each month they update it as 5th missed payment and still not showing in default.
I am worried it will never leave my account this way.
Sara (Debt Camel) says
Are you saying you borrowed £1000 from Satsuma and the balance is now £2800? Was this a 12 month loan?
James says
Sorry Sara,
The original debt was 1000 it is now sitting at £1992 and has been sitting at 5(5 months late) for 24 months, so it has never actually changed to default. It went 1 month late 2 months etc until it went 5 months late and now every month it says 5 months late.
My question is will this ever drop of my credit file or does it need to go to default first?
Sara (Debt Camel) says
ok, that’s why I queried it as it would have been illegal to add on that much interest to a payday loan.
it will never drop off unless it is defaulted or settled.
But if you ask them to add a default now, they are likely to start chasing you to repay it…
I suggest you read https://debtcamel.co.uk/refunds-large-high-cost-loans/ and think if you have a case to say the Satsuma loan (and indeed the Myjar one as well!) were “unaffordable”. If you can win this complaint, then interest is removed from the loan and all negative marks on your credit record are deleted.
James says
Thanks Sara,
Appreciate this help :)
I will go for this, as you said i am in a catch 22, if i contact them to change it to default then it will all start again, if it doesnt it will never drop off my credit file.
Luke says
Hi I had a loan with Natwest opened in 2013 with the last update on my credit score in November 2015 putting the account in £9k default. My first missed payment was April 2015. I was abroad from 2014 up until a year ago. I have updated my address etc on the electoral role so everything is up to date since returning to the UK. I have not not received a letter or phone call regarding the loan at all. I am now in a position to make a lump sum payment although after reading the above should I contact Natwest and make the payment or would it be worth just waiting until it hits 6 years to see if it gets removed from my credit file?
Cheers
Sara (Debt Camel) says
The loan will drop off your credit record in November 2021.
Read https://debtcamel.co.uk/no-calls-or-letters-about-debt/ which looks at your situation.
James says
Sorry for all the questions but i have noticed debts that the original accounts were 2013/2014 but when lowel have bought the debts in 2018 they have then set the default date as then, is this allowed? How should i approach it with them without them restarting the 6 years clock?
Sara (Debt Camel) says
what sort of debts were these?
Simon says
Where do I find the default date on my debt?
Sara (Debt Camel) says
Look at your credit records. See https://debtcamel.co.uk/best-way-to-check-credit-score/. often the easiest reports to see the default dates on are the “statutory credit reports” – they aren’t pretty but they have all.the info!
J says
I have a credit account Coast Finance Solutions, the account was previously Welcome Finance. I won’t go into the reasons for not keeping up with payments but mentally I was not very well and under psychiatric care and spiralled into debt.
Anyway the account was opened on 28 August 2009. It is now reported as Delinquent (I don’t understand what that means), and they have suddenly started reporting missed payments, beginning from last July. Under ICO rules shouldn’t this drop off after 6 years? I can’t even see the history of this account beyond 2018 and have no idea if it was ever labelled as Defaulted. This is extremely distressing and I really don’t know what to do, I have this 11 year old debt like a millstone.
Sara (Debt Camel) says
when did you last make a payment to it?
was this a large loan? was it secured?
J says
Probably around 10 years ago.
I have a sub to checkmyfile and can’t see further back than 2018 on this loan reporting.
It was £3000, unsecured.
Sara (Debt Camel) says
So you have two problems, first the fact that this is harming your credit record and second the fact that at some point the debt collector is likely to ask you to repay it.
You can ask Coast to add a defult date back 10 years ago. That was presumably what welcome did and when the default date got to be over 6 years old the debt dropped off your credit record. Coast should have used the same default date.
But if you do this, you are probably going to get asked to pay the debt.
If this happens you may be able to argue that as you haven’t paid it for 10 years, the debt is statute barred. See https://debtcamel.co.uk/statute-barred-debt/ and talk to National Debtline on 0808 808 4000 about this.
And you can also ask Coast to produce a copy of the CCA agreement for the debt, see https://debtcamel.co.uk/ask-cca-agreement-for-debt/
And if the debt seems to have grown a lot, you can challenge whether they should have been able to add on interest as you were not sent Notices of Sums in Arrears.
National Debtline can help talk through all these aspects with you.
J says
Thank you for this information, it is very useful. Is there a recommended way I should use in asking them to add the default date 10 years ago?
Sara (Debt Camel) says
See the article above.
yoga says
hi sara, i have a personal loan since 2015, i could not keep payments upsince 2017 because of unexpected business loss, but still it says late payments on credit report, the debt is sold to another company, original lender never put default and i asked the new owner of my debt to put default backdated but they said they can not defaulted to back date,
is it possible to ask them legally to put default to backdated
thank you
Sara (Debt Camel) says
You need to send the original lender a complaint, see the article above for what to say. Then the. Debt collector will have to use that date,
Emma says
Hi
I have had a couple of defaults on my credit file 5 years ago and I have noticed the credit card and loan company have put updated default on my file with a date August 2019. Does this mean my default will not come off my file for another 5 years. It was less than year till it would of fallen off mybfile.
Thankyou
Sara (Debt Camel) says
What credit report are you looking at?
Emma says
Hi
I was looking at clear score. I haven’t looked at any other agencies.
Thanyou
Sara (Debt Camel) says
ok,, can you see from that report the date of default? Because after a default is added, it is normal for a default to be “added again” every month – this sodesn’t matter, the record will still drop of your file 6 years after the first default date.
Are you saying the default date has been changed? If so, who is the creditor?
Dan says
Hi
I entered into a debt management plan in August 2014 nearly all my creditors defaulted my accounts shortly afterwards so most of the defaults are due to drop off my credit file either this year or early next year. However there are 3 creditors that have been using missed payment Markers since 2014 these are Sunny, Payday express and Payday UK. Ideally I would like these to have defaults back dated to 2014 instead of the payment markers added. This would be inline with the ICO advice on when defaults should be recorded. How should I go about getting this sorted ? As all of the companies are now in administration .
Thankyou
Sara (Debt Camel) says
Sunny went into administration yesterday. How many loans did you have from sunny before this problem one?
Payday Express and Payday Uk are in a Scheme of Arrangement (which is a bit like administration). Did you put in a Claim to this Scheme?
Dan says
Hi
It was just the one loan from Sunny which I took out in 2014. I have put in a claim to the Payday Express & Payday UK scheme but there wasn’t any mention of the missed payment markers as there wasn’t an option to.
Is there still a chance I can get a backdated default added to these accounts ?
Thankyou
Sara (Debt Camel) says
So if your complaint to Payday express & Uk is upheld, all the negative marks on those credit records would be removed.
With only 1 loan from sunny that isn’t an option that is likely to work.
You can send in complaints to the administrators in both cases asking for the defaults to be backdated – I have no idea how likely that is to work.
Dan says
So just to update you on the situation I sent an email to money shop trading name or instant cash loan and they have agreed to remove the negative markers on my credit file for both payday uk and payday express loans . Just need sunny to do the same now fingers crossed ! I may then have some hope of greeting a mortgage next year as all the others are defaults which were registered in 2014/early 2015.
Jane says
Hi Sara,
What’s the situation with getting a default applied to a non-overdraft current account?
I was in a bad way financially in 2016 and had a basic Nationwide account with debit card, plus my main Barclays Bank account. I used the Nationwide card in a ‘pay at pump’ service which took the balance to -£76.
After 3 months of not repaying this (as it was an unauthorised overdraft) Nationwide suspended the account and the card got eaten by a cash machine when I was trying to check the balance.
On checking my credit file Nationwide have recorded a ‘6 months late’ payment marker from the end of 2016 to mid 2019 when I paid it off. Is it fair to ask them to add a default date to this or is this not covered by the rules around them?
Thanks!
Sara (Debt Camel) says
I think it’s fair to ask for a default there – they had suspended your account.
Jane says
I’ve just spoken to NW on the phone and they’re refusing to do it unless I go into the branch. The nearest NW branch is 20 miles away. They also told me on the phone that they’re allowed to refuse to add a default as it was unauthorized borrowing? Surely this is unfair and unreasonable?
Sara (Debt Camel) says
Send NW a complaint in writing.
Jane says
I’ve managed to get some traction on the phone but they’re now claiming they are legally unable to register a default as it was a FlexBasic account. Is there truth in this or shall I just escalate straight to a complaint?
Sara (Debt Camel) says
I think you should go back and say that is unreasonable – either that should add a default or they should remove the late payment markers. If they don’t accept that, move to putting this in writing.
Jane says
I complained to NW in writing and they sent me a full and final response today.
Their response:
“Our decision
This is not an account that our Collections Team will issue a Default Notice with, as the account doesn’t come with credit facilities such as an overdraft, so this wouldn’t be within our process to Default this type of account and issue it to a third-party agent.
I would like to apologise for any inconvenience this may cause, but we wouldn’t be looking to apply a default to your account.”
What do I do next? Are there solicitors who deal with this?
Sara (Debt Camel) says
I suggest you send your complaint to the Financial Ombudsman. You should argue that the SCOR principles 9see article above) day a default should have been added after 3-6 months and you are being unfairly treated by NW refusing to do this as the missed payment marker will harm your credit record for a lot longer.
Paul says
I have credit cards which defaulted in 2017 & 2018.
I have made full payment of all. These were all clear in various months at the beginning of this year.
Does the default date on my credit score show as 2017 & 2018 or will these dates be 2020 as this is when the debt was cleared in full?
Sara (Debt Camel) says
You need to check your credit records and find out when the default dates were recorded. See https://debtcamel.co.uk/best-way-to-check-credit-score/