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?
Jim says
Hi, My wife and I are in a DPP (DAS) in Scotland, which we have made payments to for around 2 years, with a number of years still to go. My question is when would be reasonable to expect the creditors who approved the DPP to have applied defaults on our credit files from? Some have applied them almost immediately from the date the DPP commenced, others a couple of months later, however some are almost a year after the DPP started and worryingly some are still reporting missed payments. Any guidance would be appreciated.
Sara (Debt Camel) says
I will ask a Scottish adviser to reply to this.
Jim says
Hi Sara,
Do you know when a Scottish adviser might be able to provide some guidance for me on this one?
Thanks
Sara (Debt Camel) says
Ah he has been on holiday. I will give him a nudge.
Danni says
Hi, I’m hoping for some help, I missed a payment in April so 2013, by October I had missed 6 payments however the default didn’t start till September 2015 ( 6 is on my credit for around 2 years)
Is this a case where I can email and request they take it from an earlier date? Or asked for it to be deleted. It was from tsb bank??
Thank you
Sara (Debt Camel) says
What has happened to the debt, are you naking payments? Is it still with TSB or has it been sold to a debt collector? What sort if debt was thus?
Danni says
Hey although I’m not 100% sure I think it’s an unplanned overdraft.
It’s still with tsb and I’m not currently making payment.
Sara (Debt Camel) says
If this is an overdraft it can be complicated, as there aren’t any set monthly payments. And if you contact them they are likely to want you to start paying them. I suggest you talk to National Debtline on 0808 808 4000 about when the debt may be “statute barred”.
Max says
Hi
Hope you can help, I have a number of defaults on my account from 2015 which are now paid up via a DMP, however have a question on 2 of them.
The 2 in question where from 2 Natwest Credit Cards, during the DMP Natwest passed the debt to Cabot Financial.
My Credit report shows the defaults as April 2015, this info is provided by both Natwest & Cabot Financial, however the settlement date on each account is different, Natwest is showing as settled in August 2017 where as Cabot are showing October 2018 (this is the date that I paid Cabot)
Is this correct and are they allowed to show different settlement dates vs the original lender?
Sara (Debt Camel) says
The Natwest debt was settled when they sold it to Cabot. The Cabot debt wasn’t settled until you paid them. providing the default date is the same on both, that is right.
Angela says
Hi Jim, Im a Money Adviser in Scotland. I recently had a case where my client had fully repaid their DAS plan and there was still a debt showing on their credit file. As it had been over 8 years since they’d entered the DAS, we wrote to the creditor to say that based on the ICO guidance a default should have been registered upon entering the DAS scheme. They agreed to remove the debt from the credit file. I would suggest the couple go back to the adviser who set up the DAS plan to help them write to their creditors to get all creditors to register defaults. Especially if their DAS will be repaid in over 6 years. That way when they become debt free these debts should also no longer be on their credit file. They could get further advice/help at the following link to find an adviser in their area https://www.advicescotland.com/find-your-local-advice-agency/
Jim says
Thanks Angela, appreciate you providing a response. I will contact my DAS adviser and ask them to help have all the defaults updated to reflect the date the DAS came into effect.
Sandra says
Hi!
I had a Barclays current account and overdraft. I made monthly deposits of between £50-100 to cover the overdraft interest and reduce the debt. Without giving notice, the usual £15-£25 interest changed to almost £100 and within a few months I exceeded the overdraft limit. I made a complaint, emphasised that I had no notice and couldn’t. Their response was to refund the fees they charged me for exceeding the agreed overdraft. They then continued to deduct the interest until it again exceeded the limit. In May 2015 they closed the account, moved it to their recoveries team! I refused to pay for any amount that was for the increased interest.
My credit score with CreditKarma and TotallyMoney both show an open Barclays account with defaults each month starting May 2015. If I agreed to settle the debt with a part payment do all those monthly defaults disappear or will it still show until 6 years expires? Is it in my best interest to just hold out till May 2021 for the 6 years to hit. I contacted Barclays and I was told to make another complaint and request they hold the account, will this negatively impact the debt being statute barred after 6 years? My husband and I would like to buy a house next year and need to know what the best course is.
Thank you.
Sara (Debt Camel) says
Can I check that your credit records show a default date in May 2015, not just missed payments?
Sandra says
Correction, the credit report shows missed payments between April and October 2015, then defaults start from October 2015 onwards. When I spoke with Barclays however, they said sent me a termination letter in May 2015. I don’t recall ever agreeing to a payment plan because I disputed the amount.
Sara (Debt Camel) says
“If I agreed to settle the debt with a part payment do all those monthly defaults disappear or will it still show until 6 years expires? “
this debt will drop off your credit record 6 years after the default date in October 2015 whatever you do – pay it in full, settle it partially or ignore it.
But of course if you ignore it you may get a CCJ which would be a disaster for a mortgage. I can’t guess what the chance is of this. If you are serious about buying a house next year, trying to settle it with a part payment may be your best option.
A different option may be to send Barclays a complaint saying the interest they added was unfair because they never informed you they were increasing the charges. Ask for the additional charges to be removed and for the negative information on your credit record to be removed. I don’t know how likely this is to work.
Sandra says
Its worth a try! Thank you!
Matt says
Hi Sara
Sorry for such a long message . I have just received this today and not very happy with the response. Please could you help with my response.
A default notice was applied to your account almost two years after the default notice should have been shown. You have said as you did not make any payments to this account after October 2015 you believe the account should have been defaulted in January 2016 and by the latest March 2016.
I’ve thought about the issues in the individual circumstances of your case, and I don’t think Satsuma are at fault I’ll now explain why. A hold was placed on your account in December 2015 due to you telling Satsuma you were entering into a debt management plan, which is standard practice. There was no further communication from yourself or a debt manager, until December 2016, when you raised a complaint.
In January 2017 a notice of default was issued which you didn’t respond to. In March 2017 the account was defaulted.
Why I’m not asking Satsuma to take any action Based on everything I have seen I can’t justify Satsuma defaulting the account in January 2016 or March 2016. Before an account is defaulted a business is obligated to send out a notice of default to give a consumer some time to get their finances in order.
Sara (Debt Camel) says
Who is this from?
Matt says
The adjudicator at the ombudsman .
Sara (Debt Camel) says
what was your complaint in Dec 16 that is referred to?
Matt says
After finding your website I put in an affordability complaint but as it was only one loan and it was rejected. But I still think this unfair 16 months between making my last payment and a default being applied.
Thanks
Sara (Debt Camel) says
I suggest you reply:
“I would like you to reconsider your decision.
I think you may be confusing a Default under the Consumer Credit Act with a default being recorded on CRA records. Although these can happen at the same time they do not have to.
When you wrote “Before an account is defaulted a business is obligated to send out a notice of default to give a consumer some time to get their finances in order.” that accurately reflects the CCA position.
But I am not complaining about the date that Satsuma sent me a Notice of Default, I am disputing the date a default was entered on my credit record.
Credit reporting is not governed by the CCA. The rules about what CRA members should report and how long data should be retained for are set by the Steering Committee on Reciprocity (SCOR). SCOR publishes the “Principles for the Reporting of Arrears, Arrangements and Defaults at Credit Reference Agencies” (http://www.scoronline.co.uk/sites/default/files/Principles%20for%20the%20Reporting%20of%20Arrears%2C%20Arrangements%20and%20Defaults%20at%20Credit%20Reference%20Agencies%20vesrion%202a%20final.pdf). These SCOR principles are intended to give consistency – a lender considering a credit application needs to be able to assume when he is looking at an applicant’s credit record that all lenders have reported defaults in a similar way.
4. If you fall into arrears on your account, or you do not keep to the revised terms of an arrangement, a default may be recorded to show that the relationship has broken down.
As a general guide, this 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.
None of those exceptions apply to my Satsuma loan. I was 3 months in arrears in January 2016 so I am asking for a default to be applied at that point in accordance with the SCOR principles.
The SCOR principles also say “The purpose of reporting arrears is to indicate at the earliest reasonable opportunity that a customer is showing signs of potential financial difficulty or inability to manage his/her finances.” I did not make any payments after Oct 2016 [NB check this is correct!] and I told Satsuma in December I was going to go into a DMP. It was obvious to Satsuma that I was in financial difficulty. No payment arrangement was agreed so there were no reasons not to report these as missed payments leading to a default when arrears were at the 3-6 month point.
By delaying the date a default had been added, my credit record is being impaired for longer.
The ICO says in its forward to the SCOR document: “ICO will retain a keen interest in how personal data is processed within the credit industry, given the significance for individuals of decisions based on CRA information. A record lodged with a CRA must be a reliable reflection of an individual’s credit standing. The Data Protection Act 2018 is likely to have been breached where, for example, inaccurate, out of date or excessive personal data is being used to assess your credit-worthiness.”
I think this is what has happened here. If Satsuma had added the default after 3-6 months of arrears it would be dropping off a year earlier than it will currently. This means my missed payments are being kept on record for 7 and a half years.
If you do not reconsider your decision, I would like my complaint to go to an Ombudsman.”
Matt says
Thank you Sara for your response , I will take this back to the adjudicator and let you know the outcome. I do really appreciate the time you have spent looking at this issue. I didn’t know where to start yesterday. So thank you again.
Matt
Matt says
Hi Sara
I just wanted to update on my email from addjudicator I received this evening. They havd told satsuma to change the default date to March 16 almost one year earlier . It has been a long struggle with satsuma refusing to change it and telling me it could not be done almost six months with the ombudsman services . But if I hadn’t had the use of your knowledge then I would have just almost accepted the addjuticator . Thank you for your help it has really means a lot to me and my family.
James M Harding says
I have 3 years of missed payments on my credit where I have been paying reduced amount as agreed with my debt management agency.
I also have 4 defaults on my credit report from 3 years ago from my other debts.
I have the ability to pay off the debt in full now so i no longer get any more missed payments however I will have to wait the 6 years for these missed payments to drop off even with the note that the debt has been paid.
I’ve been offered to change the 3 years of missed payments to a backdated default so that in 2-3 years time all the defaults fall off my report together.
Which option should I go for?
Aly says
I wrote a message on here previously regarding changing default dates. I was successful in negotiating change of default dates with Halifax and RBS, however Zopa refused to accept they had treated me unfairly so would not budge on the date. I responded to them with a subject access request along with mentioning it would be referred to the financial ombudsman. (I’ve referred it but they are yet to respond with their decision).
They have now failed to provide the data access, for over two months. I was wondering if you think this may help my case with the financial ombudsman or whether I should contact Zopa or go directly to the financial ombudsman again?
Sara (Debt Camel) says
It’s annoying but it isn’t likely to help you win the FOS case.
Aly says
Ok. Thanks for the heads up. I’ll maybe push them for it then.
Cj says
I have a debt with lowell the original default date was dec 2013 …but was updated to dec 16 now showing the later date only can I ask for this to be removed or not
Sara (Debt Camel) says
The original lender added a default if Dev 2013?
Christine says
Hi, I have noticed on my credit report from clear score that I have defaults that are more than 6yrs old but are still appearing on my credit report. How can I get these removed as they have gone past the 6yr mark.
Sara (Debt Camel) says
Ask Clearscore why they are there.
Claire says
Hi, I had a DRO on August 4th 2014 which has dissapeared today! But 2 of the creditors still have recorded a later default date (August 20th 2014, so not to bothered about that one as it’s a couple of weeks away until it drops off my file) but the other that is wrong has March 2015 as the default date, should I be contacting the creditor to change it to the date I entered the DRO or just leave it? How much impact would that have on my credit file?
Sara (Debt Camel) says
As you say a couple of weeks doesn’t matter but I think it’s best to ask the creditor to correct the later one.
Andy says
Hi,
Sorry to hijack but I’ve looked on all 3 agencies and a very similar query.
FYI, I live in Scotland and was hoping to let this fall off at the end of 2023, saving for a mortgage and doing everything to improve my scores in the meantime.
On Experian;
I have a “Current Status” of “Default/Ended”
An “Account Settled” date of 31/07/2017 (Is this the default date??)
But a “Last Updated” date of 15/03/2020
These guys put a marker on every month that looks like I’m defaulting again but I’ve read on your site that should disappear when the default “Falls off”?
On Equifax;
I have an “Updated” date of 17/08/2017 (Is this the default date??)
“No data recorded” from July 2017 is the only other information I can give you from this one.
On Transunion;
The “Date of Default” is 31/07/2017
But the “Last Updated” date is 04/07/2020
These guys put a marker on every month that looks like I’m defaulting again but I’ve read on your site that should disappear when the default “Falls off”?
To add to my confusion, Transunion show the account as open yet the other two show it as “In Default”
I guess the short question is, should these all fall off my reports by the end of 2023? Providing I’m not issued with a decree.
Bonus Question: What’s the likelihood of receiving court action in Scotland for the sum of £2018?
Sara (Debt Camel) says
Which reports are you looking at?
Andy says
For Experian I’m using Experian, Equifax I’m using Clearscore & Transunion I’m using CreditKarma
Sara (Debt Camel) says
I hope you aren’t paying Experian for that report!
I suggest you get the statutory credit reports from each agency, see https://debtcamel.co.uk/best-way-to-check-credit-score/ for how to do this. These reports are less “pretty” and they don’t have your calculated credit score, but it is often easier to clearly see what the default date is on a debt.
J says
Dear Sara
I wrote to Coast requesting that they change the default date and requesting a copy of the CCA.
Their reply arrived today. They say they are unable to ‘uphold my complaint’.
They said: “We have examined your account and can confirm that Welcome Finance stopped reporting to the credit reference agencies in 2013 and deleted all records. When the portfolio was purchased by Coast Finance Solutions they decided to restart reporting to the Credit Reference Agencies. If Welcome Finance had defaulted you in 2009, because more than 6 years has passed, we would not have reported, as you can only default a loan once.
However, looking in the system owe can see no evidence that Welcome Finance defaulted this loan and they have not provided any default dates or balances within the data either. Therefore we cannot see that this loan was not defaulted by Welcome Finance and has not been defaulted by us either.”
J says
Regarding the CCA:
“In the same letter you requested a copy of your Credit Agreement. We have checked the documents available on your account and cannot see the original Credit Agreement. The documents supplied by Welcome Finance, following the account migration, are all we have available. As Welcome Finance are in liquidation, we cannot request the document. We apologise we cannot supply the document you requested.” They do not say that they are continuing to search for this.
Is my next best step to forward all of this to the ombudsman? If so do I state I would like them to review regarding the default date?
Many thanks
Sara (Debt Camel) says
when do you think you last made a payment to this debt?
do you know if it ever appeared on your credit record?
J says
Well before 2013. Probably around 2010.
I honestly have no idea unfortunately. I can’t imagine how it wouldn’t. I do know, when I looked into PPI reclaiming, (unsuccessful against Welcome) that at the time I looked into it they were already in administration and this was said to me in an email in 2011.
J says
Would my next step be the ombudsman? And they can’t find the original CCA
Sara (Debt Camel) says
The fact they can’t find the CCA means this debt is unenforceable in court. You do not need to make any further payments to it.
The remaining issue is that there has been no default date added to the record, so if you stop paying it will be defaulted and not drop off your credit record for another 6 years.
I suggest you have another go at Coast before going to the Ombudsman, both because it will be quicker if you can resolve this directly and because it is good to spell out your complaint clearly.
I suggest your next email to them should have the subject COMPLAINT – A DEFAULT DATE SHOULD HAVE BEEN ADDED BEFORE 2012
You can then say that you had thought there was a default added by Welcome, but there wasn’t, then there should have been one, because the SCOR reporting principles (http://www.scoronline.co.uk/sites/default/files/high_level_prinicples_document_final.pdf) say that a default should be added when an account is 3-6 months in arrears and you did not make any payments to the debt after your PPI refund claim was rejected in 2011. So you want Coast to correct this problem by adding a default back before 2012 and you will be taking your case to the Financial Ombudsman if they refuse.
J says
Thank you Sara very much, this is really useful. I can’t email Coast as there is no email contact address at all (and I have searched) but I will send a recorded delivery letter. Thank you again.
Sara (Debt Camel) says
Try martyn@coastfs.co.uk.
J says
Hi Sara
I emailed on the address you suggested but it’s the wrong company. I will send a recorded delivery letter.
They emailed straight back and said:
“We get mixed up with them all the time, 5-6 times a day, and we have been working with the FCA regarding their conduct and the way the treat their customers old/new.”
Coast Financial Solutions is the company I’m dealing with, there seems to be a financial company called Coast Finance (or financial) based in Plymouth, which is the one the email went to.
The company I am dealing with operate only from PO Box 924, Newport NP20 9PS
Their exact letterhead is ‘Coast Finance Solutions’ – I’ve just double checked.
At the bottom of the letter it says their agreements are administered by Target Servicing Ltd. The signatory of the letter is a Complaints Executive called Oliver Kane
Sara (Debt Camel) says
ok, try lee.sparey@targetgroup.com
J says
Hi Sara
Success: “I have passed this on to one of my team to log your complaint and contact you for resolution.”
J says
Hi Sara
I have had reply from their complaints email directing me to telephone the Arrears management department for ‘resolution’. I am tempted to request that they respond via email but I don’t think they would, and they have been asking for my telephone number. Should I respond?
Sara (Debt Camel) says
It is in your interest to get this resolved. I suggest you phone them unless you want to explain to them why mental health difficulties mean you would find that difficult?
Eve says
Hi Sara absolutely love your website its like a mix of Sherlock Holmes and Captain United Kingdom!! Love it!!
I have 2 questions:
1. If i had a default registered on my report with Tesco Loan and then it was passed onto Lowell. Can Lowell also put another default on my report for the same debt?
On my report It looks like 2 defaults are registered for the same debt…..the dates are not the same either….
This is across Experian and Equifax and I have downloaded reports directly from them instead of a third party.
2. When going for a mortgage is this classed as 2 debts or 1 debt?
I guess lenders will see 2 different names (Lowell and Tesco) so im a bit worried it looks like a lot of defaults…..help
Thanks Loads
Sara (Debt Camel) says
Thank you!
It is normal for a debt purchaser to add another debt. BUT the dates on them – especially the default date – should be the same. What is different?
Has the debt been repaid?
Eve says
Hiya thank you for replying.
– The default dates are different.
– There are no late payments on the Lowell but just a default registered.
– They have been paid
Because they are different dates what do i do? What letter do i send to get them to change it please?
Does it also look like or count as 2 defaults even though they are for the same account? Is that allowed?
Sara (Debt Camel) says
so Lowell’s default date is later?
Eve says
Yes correct it is later.
Also There are no late payments on the Lowell but just a default registered.
Does it also look like or count as 2 defaults even though they are for the same account? Is that allowed?
Sara (Debt Camel) says
Then tell Lowell to correct the default date as they should have used the same one.
Once a debt is defaulted there shouldn’t be any more late payments recorded.
What was the earlier default date? When was it settled? How large a deposit % do you have?
Terry says
Evening,
I have just found an old closed British Gas account on my report this is from my old property. The missed payments started clocking up in March 2016 and the account was closed in August 2019.
I’m going to call British Gas as I think it’s unfair as it will take till 2025 to come off my report can I ask them to adjust my report?
Sara (Debt Camel) says
Yes you can. And should. But whether they will is a different matter.
PE says
Hi Sara,
I had a loan with Myjar taken out in early 2015 with payment defaulting and in arrear from Jun 2015 I informed the company that I was in financial diffulty and tried to start a repayment plan. when I missed a payment in 2016 they readded all accrued interest and fees leading to a dispute. Almost 5 years on they have agreed to respect the claimed balance in agreement fr settlement which I advised I was happy to close issue. The issue is the default notice which they have applied on my credit file on 21/06/18. I disputed this with them advising I had recieved no notice of this around this date and they told me I had to make a complaint via credit reference agency which I did and they then rejected. I then went back to them and they said they had sent a credit agency default notice on 21/06/2018. I made an SAR request tand they sent me what looks like everything on my file including email history. The email history shows default notice email on 21/06/2016. This email was not acknowledged. I can then see a further efault notice email on 17/01/2018 after years inaction on account due to dispute. no further default notices issued prior to being registered. I had asked them to send me copy of email claimed to have been sent 21/06/2018. I would be grateful on your thoughts on where I stand in all this and how I can proceed.
Sara (Debt Camel) says
How large was this loan? Was it your first from MyJar?
PE says
This was the 2nd loan and was for 400 originally.
I would be happy to settle the account and close the matter off but feel the default should have been marked in 2016 instead of 2018 adding almost a further 3 years on to the date before it drops off my file. They contest the default date is correct
Hannah says
Hey PE
I had the same issue recently they sent me a default notice in July 2016 and then sent me a second default notice in February 2017 and used that date on my credit file . I emailed the CEO last week and had a response a couple of days later and they have requested it to be changed to July . It only took one email . Hope that helps .
PE says
Hi thanks for your comment. Can you pass me on the email you had success with?
Hannah says
Hey PE
It’s no problem , I hope it works . The email I sent it to was ellis.sher@myjar.com
Good look
Hannah
J says
I think I feel that I would be placed under pressure by them. I will try telephoning.
Sara (Debt Camel) says
if you aren’t clear what they are saying or they aren’t being helpful, say you don’t understand and can they put it in an email so you can think about it.
J says
Hi Sara
A quick update…I requested that they email me as I would like to have their response in writing. They accepted this and moved their communication to letters. They opened another complaint investigation and upheld my complaint, agreeing that Welcome should have placed a default in 2011. They have agreed to place the default date as 2011 on my credit file, so a successful resolution. Thank you so very much for your help in achieving this!
Sara (Debt Camel) says
well done!
PE says
Thanks got this email from them so sorted now.
Having looked into this for you, it appears as though MYJAR have tried to act in your best interests. Although a default notice was sent to you on 21/06/2016, you had been in touch with us and set up a repayment plan. As you were working with us, in attempting to resolve the issue, and avoid a default being applied to your credit file, we did not apply this following the 28 days stipulated within the Notice Of Default. However, as the repayment plan subsequently failed we should have applied this on 19/07/2016.
As a result of the above investigations MYJAR will agree to backdate the default to 19/07/2016. Please allow 60 days for this to show on your credit file.
Mayweather96 says
I entered a DMP in 2016 with 3 accounts. 1 was defaulted and the other 2 made a note on my credit file to say it was in a payment plan.
How bad is this note on my credit file? Is it as bad as a default? These two accounts are settled now but only with dates of 2020. I had no idea they were still open as I assumed going into the plan would have closed them as I could never have used them again.
Sara (Debt Camel) says
It’s not as bad as a default but it will be there for a lot longer. You can ask the original lenders to add a default back in 2016/17, then it will disappear in 2022/23. If not the payment plan will disappear in 2026.
It isn’t clear what will be better for you here, a worse credit record now for a few years or a not so bad record for longer.
Mayweather96 says
Thanks.
How much does the note of payment plan affect me? A default is a big red marker but these notes are just notes. Will it stop me getting a mortgage / applying for credit cards etc. Do some creditors even check for these types of notes
Sara (Debt Camel) says
That is a lender by lender I am afraid. By the time the other defaults drop off, these payment arrangements will be pretty old. Some lenders may not care.
Lisa says
Hi Sara
I hope you can help , I had a default notice applied to my credit file in April 2017 from aqua but I hadn’t made any payment from August 2016. It was sold to Lowell do I ask them to change the default date or aqua the original creditor ?
Sorry if this question has been asked before
Lisa
Sara (Debt Camel) says
You ask the original lender, Aqua. If they change the date the debt collector has to do the sams.
But the Rules say a default should be added when an account is 3-6 Months in arrears. So Feb 17 would be ok. So the date may not end up being changed much.
jake says
hi Sara
hope you can advise me on this,
I have a default on my account for a loan, both the creditor an debt collector have put a default on my account. it is show as two different defaults on my credit score for the same loan. would I be able to get one of these defaults removed. also the creditor is still showing I ow them money but I have paid debt off in full about two years ago. The debt collectors default is showing I have paid the balance in full.
thank you
Jake
Sara (Debt Camel) says
It’s normal – and correct – for their to be 2 debts shown when a debt has been. Old. But the original creditor should be marking the debt as satisfied with 0 owing. Ask them to correct this.
jake says
thankyou Sara, its with sunny loans, I’ve just seen that they have gone into administration. do you think this may be a problem.
thanks you for your help
Sara (Debt Camel) says
It shouldn’t, but it may well make it harder to get customer services to listen to you and it may take longer to get it corrected.
Had you borrowed a lot from them?
Scott says
Hi Sara,
I took out a loan with Satsuma in March 2018 for £300.00.
The normal monthly payments were meant to be £94.00.
Between March 2018 and December 2018, I made 3x£10.00 payments. The loan was over 6 months and due to circumstances beyond my control I was unable to repay it.
So during the 9 months between these dates I paid £10.00 on three occasions. My issue here is that they never defaulted my account.
I started a DMP via stepchange in January 2019, and now my credit file is marked as AR. The DMP is likely to last until November 2024 at the latest.
Obviously AR is going to show on my credit file until 2030.
Am I right in thinking that my account should have been marked as default in 2018? Obviously I know defaults are bad, but due to my other debts and defaukts, it would benefit me more to have it coincide with my others from 2018.
Could you please advise?
Kind Regards,
Sara (Debt Camel) says
By Dec 18 you must have been more than 3 months in arrears. So you can ask Satsuma to add a default date back then.
James says
I have recently had this issue with satsuma as well, when I spoke to satsuma they said it went to default and it was a issue with equifax and when I went to equifax they msg to say that satsuma has said the date was correct.
I have lodged a unaffordable complaint so hopefully it will be changed that way.
Sara (Debt Camel) says
Hi James, yes that would solve the credit record problem. Send the complaint to the Ombudsman if Satsuma reject it.
But how good is your affordability complaint? Unless it is very strong, you might also want to complain to the Ombudsman about the default issue. In case you don Win the affordability complaint.
DD says
Hi Sara,
I defaulted on an old credit card in December 2018 and subsequently My debt was sold to Cabot. Since then I’ve been paying £250 each month and my balance has come down from around £9000 to £5000. I asked Cabot whether they would accept a partial settlement. They have replied and advised a figure of £4100 so it’s an improvement. My question is, the partial payment would show on my credit file, would it be seen as negative the fact it’s a partial payment and not the full amount? I understand each lender look at their own criteria for lending so perhaps not a yes or no answer? Also, I did go back to Cabot asking if they would lower the settlement to around £3000 but they couldn’t accept that. Thanks
Sara (Debt Camel) says
As you say, not a yes or no answer. Some lender will just be happy you no longer owe that money. Other may not like the fact there was a partial settlement. With a recent default you will have problems getting a mortgage or a good 0% balance transfer offer even if you settled in full.
DD says
Thanks Sara, you’ve replied with what I thought.
My partner and I would be looking for a mortgage before March next year and have around 150k as a deposit. We are looking for a mortgage of around 100k, would the fact we have quite a big deposit offset the default somewhat? My credit score is currently fair according to Equifax so I’m looking to rebuild that following on from the default
Sara (Debt Camel) says
I think as you have such a huge deposit and a recent default it might be better to pay in full and avoid the partial settlement marker. This won’t affect your headline credit score but may mean some mortgage lenders are more likely to lend.
Yes a very big deposit can make a difference. But the longer the debt us settled for tgd better do clear it ASAP.
Go through a good mortgage broker.
CA says
Hi Sara,
Hoping you can help or point me in the right direction. In Feb 2015 I fell into some unfortunate circumstances when I broke my leg and was made redundant within a few months of each other.
I held a few accounts with RBS, a loan/credit card. I contacted RBS and made them aware of my situation and they allowed me to make reduced payments for a few months. Every time I called to update them they advised I went through step change so after a few months of reduced payments I advised them in August 2015 I was going through Stepchange and starting a DMP. I Signed all the DMP docs in at the end of August and payments didn’t start to step change until the 1st of October.
RBS Didn’t register the default until the 15th of December 2015, I have complained to the financial omsbudman to try get the default removed to an earlier date as I believe they should be going by the date I first informed them I was having financial difficulties.
The investigator has come back saying he doesn’t believe RBS have reported anything wrong but I don’t agree, as it states under ICO rules that a default should be registered after so many missed payments?
Please can you give me some advice? I’m hoping to get approved for a mortgage so really need this to drop off my credit file sooner than Dec 2015.
Thanks
C
Sara (Debt Camel) says
So this is an adjudicator decision – if they won’t change their mind you can ask for it to go to an Ombudsman.
But tHe ICO rules say when your are 3-6 months in arrears. If you made some reduced payment you may not have been 6 months in arrears until August – September – October. Even if you get the Ombudsman to uphold your case, you may not get the default date pushed back by much.
When was the defaulted debt repaid?
CA says
I am still paying this via Stepchange so it is not yet settled. Should the default date be registered from when they started receiving payment via the DMP?
I am also challenging the amount of debt collection agencies that RBS sold the debt to, but then when Stepchange contacted them they insisted they were dealing with all accounts in house. On the accounts I held I have been battling with them to change markers and dates as they keep recording incorrect information, most of these I’ve managed to solve other than the default date.
Thanks
C
Sara (Debt Camel) says
Should the default date be registered from when they started receiving payment via the DMP?
No, the 3-6 months in arrears rule is all that applies
If your DMP is still continuing that is your big problem, not the default date. You do know you have no chance of getting a mortgage at anything apart from a dreadful rate while you are in a DMP? Even when the debts are not showing on your credit record, a mortgage lender will see the monthly payments to StepChange on your bank statements.
CA says
Hi Sara,
Thanks for that information, I didn’t realise since the DMP doesn’t actually show on my credit file.
I have a debt back from 2015 that Cabot have just taken over, am i best trying to set up a plan with Cabot rather than paying this through the DMP or will this show equally as bad that i’m settling a debt?
Thanks
C
Sara (Debt Camel) says
That also needs to be settled or a mortgage lender will see the payments to Cabot from your bank statement. A payment arrangement with a debt collector is just the same as making DMP payments, not better or worse.
One option is to look at using some of your deposit I assume you are saving up to make full and final settlements to Cabot and to the debts in your DMP. See https://debtcamel.co.uk/debt-options/less-common/full-final/
Louene says
Hi Sara,
Barclaycard sold my debt to Lowell/Link at the end of February 2015. I had been in an agreed payment arrangement with them for the previous 12 months which was following on from prior payment arrangements that had been agreed to run for either 6 or 12 months since October 2011 after a protracted dispute with them which was eventually resolved in my favour by the FOS.
Barclaycard never explained why they sold my debt to Lowell/Link, only that that was what they were going to do. What I would like to know is if they should have defaulted my account when they sold it? Does a creditor have to place an account in default/issue a default when selling a debt?
I want to ask Barclaycard to put a default on my account from February 2015, when they notified me they were selling my debt to Lowell/Link which will means I only have a year left before it drops off my Credit File. I am trying to change mobile phone and broadband providers and energy suppliers in order to reduce my outgoings but with a recent default registered on my credit file, I am worried that I will be locked into monthly payments I am struggling to afford as anyone looking at my credit history will think I’m too high risk.
If you need to know anything else regarding my circumstances or the disputes I’m having with Lowell/Link, please let me know.
Thanking you in advance.
Louene
Sara (Debt Camel) says
I suggest you ask Barclaycard to add the default back then. They don’t have to, but if you were in significant arrears at that point it is reasonable that they should have.
Shez says
Hi Sara,
I had an unsecured loan with NRAM which has now been taken over by Heliodor, a few months ago. I have been on a DMP since 2011 and NRAM kept marking my credit file as a payment arrangement.
About 6 weeks ago I asked NRAM to add a default, dated September 2011. Heliodor responded (not NRAM) and said no, they cannot uphold my request but did say that they can add a default now. So my questions: Why would they agree to add a default now and not agree to add one retrospectively to 2011? Should I complain to the Financial Ombudsman and can I use this as an argument?
Thanks for your helpful advice as always.
Shez
Sara (Debt Camel) says
Heliodor probably can’t add a default before they took over the loan. I suggest you persist in saying you want NRAM to add a default.
Shez says
thanks for your advice Sara
I have written to NRAM again….fingers crossed!
Ravi says
I have two CCJs. With 1st one I settled the debt 3 years earlier. After sending the payment records from bailiff they recorded date the when I sent the record rather than date of settlement.
2nd I did not received the Court Notice for hearing consequently the debt was satisfied when I checked as it appeared in the Credit reference agency. I wanted to have a note to that effect.
The reason I am concerned as my insurance claim is on hold as I have two undeclared CCJs. What do I do?
Sara (Debt Camel) says
After sending the payment records from bailiff
who did you send them to?
2nd I did not received the Court Notice
so this shows as settled for the correct date you paid it?
Andy says
Hi Sara,
Looking for some advise regarding a default on my credit file for a very account.
The last payment I made to them was in December 2013 but the default on my file is registered as September 2015. The problem is i have lowell breathing down my neck but had very followed ICO rules then surely this debt should have had a default registered after 6 months? Are they allowed to register a default almost 2 years after a payment was made?
Andy says
I should have mentioned I contacted very and they said they couldn’t advise as the account was so old and now with lowell but can only advise they that think it was so late as they were helping me bu giving me time.
Dan says
Hi,
I took out loans with quick quid and pounds to pocket at the end of 2013. Shortly afterwards in August 2014 I entered into a debt management plan . Something very strange seems to have happened , about a year or so ago I checked my what was then noodle credit report (now credit Karma) and saw that both pounds to pocket and quick quid accounts had a default date of August 2014. My now credit karma account is showing no evidence of them so I just assumed that they had fallen off as it is past the 6 years deadline. However I recently logged into my Experian report to see an entry by CashEuroNet (trading name of quickquid) with missed payment markers all the way from 2014 ! I have contacted quickquid and asked them for this to be removed however they are refusing and have said that as I have been making regular payments to my account via my DMP the account has not defaulted. There is obviously discrepancies in the information being reported. Now that they are in administration I believe that I can no longer bring this to the financial obudsman am I right ?
Regards
D
Sara (Debt Camel) says
No you can no longer go to the Ombudsman.
Have you put in a claim to the portal for Unaffordable lending? If you win this, any negative marks on your credit record will be removed , and the loans are likely to just be deleted.
Dan says
Hi Sara,
I have submitted a claim but there obviously no guarantee that I will win. I would like to apply for a mortgage once my DMP is settled which will hopefully be next year so I really want to get these negative markers removed. It’s confusing as to why a default was appearing last year but now missed payments are appearing . I’ve tried to argue that that is incorrect in Itself .
Regards
D
Sara (Debt Camel) says
I agree it’s wrong. I suspect it may be easier to win a Claim than get this sorted though…
But you can try both. Read https://debtcamel.co.uk/debt-default-date/ and send in a complaint to their data protection officer. Attach a copy of your old Credit Karma report showing the default date and ask that the same date should be added to Experian as this complies with the 3-6 months in arrears rule. If they reject this, send your complaint not to FOS but to the ICO.
Danielle says
Hi Sara ,
The issue is I’m unable to get hold of an old copy of the old TransUnion report and credit karma is is only showing alerts for this year . I know it was definitely appearing as a default about a year or so ago. It’s difficult to prove this though without evidence which is why it’s frustrating. Is is still worth a shot complaining to the ICO ?
Regards
D
Sara (Debt Camel) says
Yes it is.
Louis Miles says
So I have an ongoing battle with Virgin Money over a default date…
I entered into a DMP with PayPlan in July 2016, this meant that all my creditors (about 8 from memory) recieved a part payment until I made final payments to my creditors earlier this year. Having recently checked my credit file in more detail, I saw that Virgin Money had added a default date of July 2017, 12 months after I started making only partial payments. Having tried to lodge a complaint with them they have come back and said that because I was making partial payments, I was not 6 months “in arrears” until after 12 months of partial payments (as it took this long until I was 6 x my minimum payment behind)… Having asked to see the full breakdown of their calculations (because frankly I think the amount I was paying was less than 50% of my original minimum payment and hence I’m not sure this calculation is even accurate!) they have basically refused and that if I want to take it further I need to raise it with the Ombudsman… This seems totally baffling to me as all other creditors set the default date to 3-6 months after my original July 2016 DMP start date.
Am I right in thinking that this sounds like a total farce? I know the guidance says 3 -6 months of arrears but I assumed this would count if I was only making part payments? Needless to say I will not be using Virgin Money in the future!
Sara (Debt Camel) says
“because I was making partial payments, I was not 6 months “in arrears” until after 12 months of partial payments (as it took this long until I was 6 x my minimum payment behind)”
That is the way it is supposed to work.
You could send the a request for a copy of all your data – email dpo@virginmedia.co.uk and say you want to make Subject Access Request.
Louis Miles says
Hi Sara,
Thanks for your reply, I don’t understand why all the other companies included in the DMP took it as 3-6 months from reduced payments and yet Virgin are digging their heels in and saying they wanted to wait until I was at the same point as 6 months of no payments… The person I spoke to at Virgin had basically said I would have been better off making no payments for 6 months and then making larger payments after that which seems crazy to me!
While we are looking to get a Mortgage shortly after the defaults drop off my credit file, in reality a few extra months of saving (and ISA bonus) and with so many unknowns with Covid/lack of first time buyer mortgages at the moment holding fire for the extra 6 months is probably not a bad thing (we wouldn’t be looking until mid 2022 earliest in any case)
I will let you know if I do make any progress with the Ombudsman but by the sound of it not all that likely!
Sara (Debt Camel) says
The person I spoke to at Virgin had basically said I would have been better off making no payments for 6 months and then making larger payments after that which seems crazy to me!
The whole UK credit recording system is not fit for purpose.
Drew says
I am looking for some advice with regards to a Very account I had which I defaulted on.
In December 2013, I found myself out of work and no longer able to make my monthly commitments this was due to a serious health issue.
The last payment I made to them was in December 2013 but the default that has been registered on my file is September 2015. The debt is now with Lowell.
Having read loads of your comments and various other articles online it seems very strange that they registered a default on my file almost 2 years later!
I left the UK to work abroad and since returning recently this is when I have encountered the problem.
When I contacted Very about this they gave me what I believe was a lame excuse as to how they were giving me the benefit of the doubt and that now theres nothing they can do as the debt is so old and has been sold. They advised that they served section 87 default notice in August 2015, hence the default date of September 2015.
As mentioned above looking at the guidance should Very not have at least registered the default with CRA’s after 3-6 months?
Sara (Debt Camel) says
You made no payments after Dec 13? Are you making payments to Lowell?
Drew says
Hi Sara, when I went back to work in October 2014, I tried to get hold of my finances and I setup a DAS and made a sole reduced payment of £11. Work subsequently didn not work out and I found myself out of work again and thats when I went abroad. My DAS management company informed all creditoes the DAS was revoked.
However, between December 2013 and August 2014 I did not make any payments, 8 months of no payments, minimum payment at the time was around £300. Surely the account should have been defaulted in that 8 month period inline with SCOR?
I have not made any payments to Lowell.
James says
Hi Sara,
I may have asked this before or it has been asked before, I have various Lowell debts going back to 2015, I am now at the stage of considering paying these, i have heard if i call and discuss the debt or acknowledge them the default day will then revert to now?
Can you tell me if this is correct?
Sara (Debt Camel) says
Are these debts marked as defaulted on your credit records? Don’t assume they are, check to make sure.
What sort of debts are these and when were the original accounts opened?
James says
Hi Sara,
They are for mobile phones and credit cards which i failed to pay, now I am getting in a better position I was considering paying them. I have just double checked they are all at default. I am just worried if i speak to Lowell now they will reset the default date until now.
Sara (Debt Camel) says
The default date will NOT be changed.
When were the credit card accounts opened?
James says
2017, I had 3 credit cards.
Sara (Debt Camel) says
Ok, so very recent. Much less likely to be paperwork problems with them that would make them unenforceable.
FS says
Hi Sara,
I’ve been in a DMP covering several credit cards for over 6 years. All but one of the original lenders added a default date (within 6 month of the DMP) and these will soon drop off my credit records. I have one slightly unusual situation where the original credit card lender hasn’t reported to any of the CRAs and also sold my debt on without registering a default. The debt now appears on my credit reports with ‘missed payments’ listed by the DCA from the time it was purchased. I’ve emailed the original lender asking for a default to be added. Can they decline to do so? If they do, should I ask the DCA to independently add a default date 6 months after I began my DMP? Many thanks,
Sara (Debt Camel) says
If the original reuses to add a default, take your complaint to the Financial Ombudsman.
Paul says
Hi Sara,
Quick q – if you received a default notice, and made a payment to clear the arrears, do the company need to send another default letter should you subsequently miss payments again later on down the line?
Sara (Debt Camel) says
The Default Notice will have given a date at least 14 days away, by which you have to make a payment to remedy the breach. Do you make the payment within that time?
What is your concern here – your credit record or being taken to court?
Paul says
Yes – I got a default notice in March and i made the arrears payment to bring it up to date within the 14 days: in effect remedied the breach.
It was just now I’ve missed 2 full payments (August/Sept)and wasn’t sure if they could use the one in March to register a default or if they’d need to send out a ‘new one’, giving 14 days.
Probably more court
Sara (Debt Camel) says
So far as I know they have to send a new Default Notice.
What is your current financial position like? who is the lender?
paul says
It is 118.
It’s actually improved in the last 3-4 months prior to that but unfortunately an unexpected bill is having consequences: should be back on track within the next month or so.
Danielle says
Hi,
I entered a DAS arrangement scheme in 2012 my final payment was to Bank of Scotland in 2015. All other creditors have dropped off my file except Bank of Scotland. On check my file report it states Debt management programme this will be reported until April 2021. I was automatically refused a mortgage & I was advised due to current Covid restrictions I could reapply with a sub prime lender however the interest rate was significantly higher. As this arrangement was agreed in 2012 could I ask Bank of Scotland to change this to the default date and not the settled date? Would this account therefore drop off my file? I have no other defaults & I am now financially stable. Bank of Scotland wrote me a letter last week advising I will be refunded £1300 in unfair charges & fees.
Sara (Debt Camel) says
Yes you can ask Bank of Scotland to do this and yes it would then drop off your record. However as a matter of practicality, it is likely to take several months Or more…so it’s up to you if you thinks it’s worth the hassle as the default will go in April next year anyway.
Danielle says
Hi,
I contacted Bank of Scotland & advised under ICO guidance default date should have been added to my account in 2013 upon entering my DAS arrangement scheme & this should have therefore dropped off my file 2019. Bank of Scotland advised as this is a DAS arrangement scheme they do not add any defaults to my report there is an arrangement in place until the account closes. If this was a debt management plan it would have been added? Could you please advise if this is correct? Many Thanks
Sara (Debt Camel) says
is there a default on the record? or a payment arrangement?
Danielle says
Hi,
Thanks for your response. Your website is extremely helpful. I have been reading through some articles & I think they won’t add the default date because this was an overdraft on current account. My credit report is shown differently on each (I used my credit file) 1st states missed payment each month until settled, 2nd states 6 months in arrears until settled & the last one shows Debt Management Plan. I asked for the date to be added at the time the DAS was agreed. Bank of Scotland were not helpful it took 10 weeks, complaint raised & several calls for someone to tell me no & then offered me £100 compensation as my complaint had not been handled correctly. I am unsure if there is anything else I can do? I was advised this was paid in April, closed in May & will be reported until June. I was really hopeful to move forward with a mortgage application before then. Thanks
Sara (Debt Camel) says
I did point out it would go next year anyway.
As it is so old, if you have a good deposit you could talk to a good mortgage broker now about whether a mortgage will be possible.
D says
Hello Sara,
I was hoping you could help me please?
I am applying for a mortgage and I got rejected due to 2 defaults on my credit report dating back to April 2017. I was making manual payments for these at the time and was out of the country so I was unable to make payment, but as soon as I was back, I called explained the situation and made payment in full. On that call the loan company advised that this would not be added to my credit report, however they are still on there. I need to get them removed ASAP.
Sunny/elevate loans have now gone in administration and I am trying to get them removed, but not having much luck. Is there anything else I can try please?
Any advise would be great.
Sara (Debt Camel) says
It is a pity you did not check your credit record 6-12 months before a mortgage application. It is very hard to get defaults removed, especially quickly.
Have you asked the lender who said they would not add a default to remove it? If they refuse, you could submit a Subject Access Request – if you look on the lenders website there will probably be a section labelled Privacy or Your Data which explains how to do this. You can ask for the telephone recordings in 2017 – it is however possible that they do not keep these calls for that long. Unless you have something in writing (email?) about a default not being added it may be hard to win this one. EXCEPT if you only missed one payment that should not have been recorded as a default, see https://debtcamel.co.uk/get-rid-of-a-default/.
You can submit a Claim to the Sunny administrators for unaffordable lending. If that is upheld the debt is likely to be deleted from your credit record. But that is likely to take a long while, possibly a year.
BUT if both defaults were paid back in 2017, then another option is to talk to mortgage broker bout whether other lenders may not minf these defaults as they have been paid for so long.
david d says
Hi DC,
I may have mentioned something of this nature in the past but if i’m honest i think i’ve lost track of where i am….
I have 2 credit accounts on my credit report which show as “Late Payment” – one since Jan 2018 and the other since Sept 2018; I have been in a DMP with them to clear the accounts at an affordable rate but likely wont be paid off for a handful of years (i’ve already preferred to go down this “honest” route rather than try to clear the debts with bankruptcy etc).
My question is, shouldn’t this account have a default rather than a late payment flag? and if Jan 2018 and sept 2018 were the respective first months of the DMPs when should the default be added from please, if necessary?
many thanks in advance.
Sara (Debt Camel) says
How long will it be until your DMP completes?
See https://debtcamel.co.uk/dmp-credit-rating/ for credit records in a DMP.
david d says
thank you for the link, i’ll take a closer look into this asap.
On both of these accounts there has been payment breaks and late payments historically, but maintained 100% for at least the last 12 months.
the expected completion will be approx March 2023 if i continue as at present, however i aim to increase repayments as other debts drop off during that period so hopefully sooner.
Shannon says
hello i entered a debt management plan on 24-12-15. Barclays defaulted my overdraft instantly but a very catalogue didnt defauly me until june 2016, the very debt is now with a debt collecting agency. i have fully pay both the debts back so they are both now satisfied. Is there a possibility that if i contact The debt collecting agency and ask for them to change the default date to 24-12-15 whn i entered the dmp will they do this? thankyou!
Sara (Debt Camel) says
Had you already Missed payments when the DMP started?
Amy says
Hi, I hope I’m ok to ask this question as I’m not currently in a DMP.
I enquired about taking one out but decided against it due to the impact on my credit score. I notified the DMP company via email that I didn’t want to proceed. No paperwork was signed and I did not sign a LOA.
I received an email from one of my creditors advising that they have suspended my account because I have entered a debt management plan.
After speaking to the debt management plan company they confirmed they did not have my authorisation to act on my behalf and accidentally sent proposals to all of my creditors.
The DMP company have apologised and sent letters advising the creditors that I am not a customer of theirs and to disregard their proposals and they have been very helpful in getting this sorted, which hopefully it is, I will need to keep an eye on my credit file. Apparently the one that was suspended wasn’t reported and shouldn’t show on my credit file as it didn’t get that far.
I was wondering if I should take this further as it’s very serious for a company to act on my behalf without my consent or should I leave it as they are helping to fix the situation?
Thank you very much!
Sara (Debt Camel) says
You normally get a DMP because you can’t make the normal debt repayment – how are you managing without one that avoids harming your credit score?
What has happened to your credit record?
Amy says
Hi Sara,
I’m managing to make my monthly payments, I haven’t missed any but I was considering getting a DMP due to the volume of debt I have and I seems to be suck in a bit of a cycle where I pay some off and then I need to buy something essential and cant afford it so use a credit card.
My credit score is poor at the moment due to over 50% utilisation.
Sara (Debt Camel) says
Then honestly I think you should rethink this decision about a DMP. The DMP firm would not have recommended a DMP if they thought you could afford all the monthly repayments. So in trying to do this, you are always “needing to buy something essential” on a credit card because you simply don’t have enough money to pay for all the essentials and make the standard debt repayments.
Your credit record is poor and you are never going to be able to pay off a lot of the credit when so much of the payments each month are going on interest.
your credit record is not the most important thing here – it is the trap you are in of having to pay for essentials with credit as your debt repayments are too high.
Amy says
Most of my debt is on 0% or a fixed rate now after help from my family. I was going to be crippled with interest and couldn’t see a way of making it work which is why I was looking for a DMP. If my situation gets worse I will definitely rethink my decision. Thank you for your advise!
Do you think I should take it further with the FCA or FOS regarding the DMP company who acted on my behalf without authorisation?
Sara (Debt Camel) says
Unless you can see your credit record has actually been harmed, then I wouldn’t bother.
Amy says
Ok fab thank you! If I get really stuck again then I will definitely take you’re advise.
Thank you so much for your help!
Laurence says
Hi,
I have a credit card default and have received information from a SAR. I defaulted on the agreement in Novemebr 2015. However, there is no default letter in the pack. All the statements are there that shows defaulted amounts and a short warning but no formal letter. What are my rights if no default noticce can be evidenced? Is the debt enforcable?
Thanks for your help.
Sara (Debt Camel) says
yes, the debt is enforceable as the creditor can now send a Default Notice.
Toni-Ann Tuson says
I had missed some payments on a credit card but was in constant contact with the provider about my situation I made an offer of a partial settlement which they accepted. They had sent a default notice (not sure what date) and I had paid the settlement amount as agreed. But they applied a default on my credit file 10 days after the account was paid and settled. Can they do this?
Sara (Debt Camel) says
The default notice and the fact you paid the debt within the allowed Period have nothing to do with adding a default to your credit record. Technically they are probably correct that you missed enough payments so they can correctly add a default. But it’s worth Trying to get this removed by making a complaint and saying this is unfair as they did not tell you about it when you settled the debt and ask them to remove it.
Charlotte says
Hi Sara,
Firstly I can’t tell you how much this article (and all of the comments and responses) has taught me about debts and defaults! I was wondering if you could give some advice on my situation, there are a couple of different elements and queries so I will try to explain it as best as I can.
In 2012 when I was only 19, I took out car finance (hire purchase). At the time I was on a tiny salary of £13,000 and already living in my overdraft (£1800 + each month). The salesperson at the car dealership said not to worry about bad credit, he would still get me a car but the interest rate would be high. So being young (and stupid) I proceeded. Black Horse agreed to the finance amount of £9500. I naturally fell behind on payments quite quickly, I lost my job and was abroad doing odd jobs in the Alps.
In January 2013 I received a notice of default, and in March or April 2013 I started receiving calls from a debt collector, he demanded I paid £1060 or the car would be repossessed. I finally managed to get a family member to pay it off (I think partially, around £700). I think I continued to pay monthly for the rest of the year, but soon fell into arrears again at the start of 2014. I am assuming it was passed to another debt collector as I have an old letter from Credit Style Limited dated September 2014 saying ‘FAILED ARRANGEMENT’ it goes on to explain that I have defaulted on my arrangement (lists Black Horse agreement number).
Charlotte says
Black Horse sent me a list of payments I made, and it looks as though I was paying late most months. It is really hard to figure out exactly how much I was in arrears with them at any given time though, so I went onto checkmyfile and looked at the data credit agencies have and it’s as follows:
March 2013: AR 4 (I had a default notice letter in Jan 2013 and paid a debt collector in April 2013 the amount)
April 2013 – Feb 2014: monthly payments (green ticks)
March 2014: 1
April 2014: 2
May 2014: 3
June 2014: 4
July 2014 – June 2015: AR
July 2015 – Nov 2015: 4
Dec 2015 – Jan 2016: AR
Feb: 5
March – May: 6
Jun- July: AR
August-November: 6
December: D
Charlotte says
The account is showing as defaulted in Dec 16 and then until now it shows as unreported. I called Black Horse recently and they said that they closed the account and are no longer seeking the funds however it was closed and not marked as settled. I am pretty sure that I made some payments during the lengthy period of it showing as AR, but I am assuming it shows that as the whole account was in arrears even though I was making payments. So my questions are as follows:
1) Based on my salary, age at the time and the fact I was already living in my overdraft with poor credit, do you think I can complain based on affordability?
2) Should they have listed the default on my file back in January 2013 when I first received the default notice as they passed it to a debt collector?
3) If they come back to be and decline to make any changes, what should I do? Go to the Ombudsman?
I am trying to get a mortgage and have had zero defaults, CCJ’s, late payment etc for over 6 years, it is just this pesky default which is stopping me, however if I manage to get it back dated to 2013, I am guessing it would fall off the account?
Any advice would be extremely appreciated. Sorry for waffling on, I just wanted to put down as much information as possible. Thank you so much in advance!!
Sara (Debt Camel) says
Do you know how much you paid to the debt in total? What happened at the end, was it settled? repossessed?
Charlotte says
Hi Sara,
Thanks so much for the response.
I think I would have paid around £6000 in total (roughly). No, I didn’t settle anything. It wasn’t repossessed either, I no longer have the car it was scrapped a year ago.
I’m just confused as to whether the default should be dated back to when I received the first default notice back in January 2013, especially as it was passed to a debt collector.
Sara (Debt Camel) says
So an affordability complaint isn’t likely to get anywhere as you didn’t pay any interest.
Because you paid the default notice in full, I doubt you were ever 6 months in arrears in 2013.
But “I have an old letter from Credit Style Limited dated September 2014 saying ‘FAILED ARRANGEMENT’ it goes on to explain that I have defaulted on my arrangement (lists Black Horse agreement number).” you can argue that you should have had a default on your credit file then.
And then you were 6 months in arrears in March 16.
Bjt they may arguge they hadn’t repossessed the car t=and they were still trying to make the arrangement work,
When did you stop making any payments to this?
Dan says
Hi Sara
I entered into a DMP in August 2014 all of my creditors added a default then or soon after apart from vanquis who have instead added an arrangement to pay until June 2019 which is when the account was settled . I would have been in a better position is they had defaulted me as this would have dropped off my credit file by now . I have complained to them and said in line with ICO guidance they should have added a default when I was between 3-6 months in arrears in line with ICO guidance . They have gone back to be to say that they can’t uphold my complaint as even tonigh a default notice was Issued in October 2014 I was only 4 months in arrears , then the payments I was making through my DMP were not low enough to be considered token payments to warrant a default being issued . Obviously I’m not happy with this response as I feel I would be in a better position is the account was defaulted !
Many Thanks
Dan
Sara (Debt Camel) says
tell them unless they add a default, you will be sending the case to the Finacial Ombudsman.
Dan says
Ok thanks for your help . I will do this .
Many Thanks
Dan
D says
Hi
So just an update I did end up taking this to the FOS however they have not upheld it.
They are basically saying even though I was issued with a notice of default in October 2014 because I entered into a DMP shortly after I was making more than the token payments and therefore this prevented A default being placed . I actually entered into to a DMP in August 2014 however I know it takes a while StepChange to contact creditors and set it up etc . I’m also still not happy as this has placed me in a worse position than if a default was added in 2014 . What do you think I should respond with ? I do want to escalate it to the obudsman if it’s my only hope !
Regards
D
Sara (Debt Camel) says
So you can argue that the SCOR reporting rules allow a default to be registered when a debt is 3-6 months in arrears so adding a default would not break those rules AND it is unreasonable of Vanquis to choose to do something that will damage your credit record for longer when you are trying to do the responsible thing by repaying your debts.
Dan says
Hi Sara
I sent a response and stated what you said however they are still not agreeing to my case. As they have said as the SCOR principles are only guidance they can not see that vanquis have done anything wrong as it is up to them when they register a default between the 3-6 years of arrears. I’ve argued that it is unfair that I am in a worse position than if I had defaulted on the account in 2014. I’ve asked that the obudsman look at my case but I don’t hold out much hope that they will offer a different outcome. Would the next stage be to raise a complaint with the ICO or is it not worth it ? Are AR markers just as bad as defaults ? I’m just worried as myself and my partner would like to apply for a mortgage at the end of the year/beginning of next year and this is the only thing standing in the way,
Thanks
D
Sara (Debt Camel) says
Then you need to wait and see what the ombudsman says. people don’t tend to get better decisions from the ICO as FOS can look not just at the rules but what is fair to the consumer.
Dan says
Just has the final response from the obudsman and having reviewed my case they agree with the investigator he have decided not to uphold my complaint. Very disappointing to say the least I guess that’s the end of the road now . As I can’t see how else I can get it amended.
Do you have any advice on what else I could do , or should I just give up now? That particular account is as settled in June 2019 it was part of a debt management plan which I have just completed last month. Myself and my partner are hoping to apply for a mortgage at the end end of the year /beginning of next so that’s ideally why I wanted the account to be defaulted and removed. Apart from one default that is due to drop off in September it is joe the only adverse showing.
Thanks
D
Weatherman says
Hi Dan
How disappointing – unfortunately you have hit the end of the road here. (If it was a dispute involving e.g. a large amount of money you could still take the company to court as the FOS decision is only binding on the company, not you – but that’s not a practical option in this instance)
But as you say, at least you know where you stand. As for what to do now, ask each Credit Reference Agency (Experian, Equifax, Transunion) to add a ‘notice of correction’ to your file, to explain that you entered into a DMP including this debt in August 2014, and settled the account in June 2019. Any lender looking at your credit report will be able to see this information and hopefully will take it into account.
A default doesn’t automatically mean no mortgage, either. A single default from a few years ago shouldn’t derail things – as a rule of thumb, the negative impact decreases after about three years, although there’s nothing to stop you applying for a mortgage a little sooner. It all depends on how the individual lender treats these things.
Good luck!
Dan says
Hi
Thanks for your response , just to clarify the vanquis account didn’t actually default it is showing as Arrangement to pay since when I entered into the debt management plan in 2014 and settled in June 2019. Would this be seen just the same as a default or worse/better?
D
Weatherman says
Hi Dan
In a straight shootout an Arrangement to Pay marker is better than a default! But it’ll stay on your account for six years since the last missed payment. So considerably less damaging, but there for longer than a default would have been.
Nats says
Hiya,
A company have accidentally/incorrectly added two defaults to my credit account. The correct one is due to drop off my file in February next year and the incorrect one was added on the date I cleared the debt in June last year so will presumably will stay on for 6 years. I’ve contacted them several times over the past few months and they’ve said they’ll look into it but they’re a nightmare to get hold of and aren’t being very helpful. I really want it gone as it will be the last negative mark on my report. Is there any sort of ombudsman type service for help with a problem like this?
Sara (Debt Camel) says
Are there two records? or one record with 2 default dates?
Who is the company?
Lisa says
Hi Sara
A lot of the advice on when a default should be issued states “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.” What guidance should firms be following for longer term loans?
I have a resolve loan with Barclays and missed 4 payments in May 2013, then caught up, then missed 5 payments in March 2015, then caught up, then missed 4 in Feb 2018, then caught up then missed 5.93 (I know its precise but thats what it works out to) in March 2020. After paying towards this loan for over 10 years and having cleared over 95% of the balance they decided to default me in March 2020. Gutted but i didnt receive the notice as I had moved house otherwise i would have borrowed money to pay what I needed to. I have done so well getting my debt cleared and sorting my credit file too. I just wondered my chances of getting the default backdated.
Sara (Debt Camel) says
I think that is worth a complaint. Ask them to remove the default or backdate utter 2015 because it is unfair that you should now be penalised fir another 6 years.
Lisa says
Thanks Sara, i have put in the complaint so hopefully it will be back dated. I think that 2015 is fair as it was the second time i went over 3 months overdue. They are digging their heels in and stating that they only default when over 6 months in arrears.
Sara (Debt Camel) says
take it to the Ombudsman if the complaint is rejected. Say this is just not fair given what had happened to the loan over the years.
Lisa says
Barclays have already rejected the complaint I just wasnt sure whether to send to FOS, I have now following your message thank you. I will let you know how it goes.
Sara (Debt Camel) says
ok so for the line should be that Barclays could have defaulted you when you got into arrears by 3-6 months. To not default you until right at the end is unfair and doesn’t reflect the problems you have had throughout the loan or the fact that you have nearly finished the repayments.
So you are emphasising fairness, not just what the SCOR principles are. FOS can sometimes respond well to fairness arguments.
Good luck.
Tr says
The default date of my debt is different on Experian and equifax, can I use this difference to have the default removed or would they just change the date?
Sara (Debt Camel) says
They would normally just change the date. Unless you gave a good reason to say there should never have been a default. What are the two dates? And have you checked TransUnion too?
Nigel says
There still looking into my compliment regarding payment hoilday defult , I have lots of new points too add.should I add new points now or will that annoy them
Or if I’m not happy with outcome raise a new complaiment at least diffent eyes will see it.
Or wait for the call and add points then
Sara (Debt Camel) says
Are they really new points, or just ways of explaining the current ones more clearly?
Nigel says
Explains the current ones more clearly.
And I’ve got evidence from their website etc to back up my points
Also should I add the sympathy, which is true or leave that out, ie how it will effect my life
Sara (Debt Camel) says
I think you should wait for them to conside what you have already said.
Nigel says
I wish I read this before, too later already sent on the website as it’s very strong what I wrote, nothing bad written just normally.
The reasons I sent it is if I raised a new one, they may just dismiss it and say go to FOS.
Sara (Debt Camel) says
No problem, I was just saying it’s probably easier to wait, I can’t see you have done any harming in sending more info.
Kris says
Hi,
I was just after some advice if possible.
I bought a car using finance from Blue motor finance.
Long story short, I voluntary surrendered the vehicle(constant breakdowns blah) and if I’m being honest completely forgot about the outstanding balance(2k). I surrenders the vehicle in July 2018. I have now seen the balance as delinquent on my credit file, not default. Now, I’ve had zero contact since surrendering the vehicle but I’m wondering why there may not be a default on there and if I context them now to clear the debt will that actually affect me worse than hoping it goes statute barred?
Sara (Debt Camel) says
When a creditor has made an error on credit record reporting it’s hard to guess what may happen to your credit record if you contact them. They may be happy to take the money and mark it as settled, they may take the money and add a default back 18 months ago ( technically correct and difficult for you to challenge), they may take the money and default it now (which would be wrong and you can challenge it).
But if you don’t Contact them, what happens? Without a default on your credit record, the debt will still be sitting there in ten years time, it will never drop off.
You can argue that it is statute barred after say 6 years and a few months AND that a default should be added to your credit record in 2018/2019. But doing nothing won’t mean yiur credit record gets cleared.
Read https://debtcamel.co.uk/statute-barred-debt/ for more about statute barred debt. It’s sometimes not simple.
David says
Hi Sara.
Once again I am back to ask for your assistance in my on going dispute with Vodafone. I had been through the entire complaints procedure with Vodafone and received a Deadlock letter and followed through with the CEDR complaint. After nearly 3 months I have a answer but I am very confused.
The outcome of the dispute can be summarised as follows:
DISCUSSION OF DECISION: The customer has provided sufficient evidence to prove that the company provided a poor level of customer service in breach of its duty of care. However, the customer’s claim that the company breached ICO guidelines is outside of the scope of the CISAS scheme. The remedy sought has not, therefore, been justified..
If I understand this correctly it seems they are happy that Vodafone are in breach but say since its no covered by them, Vodafone get off scot free and no penalties of any kind are due.
Where would you advise I go next with this?
Thank you
Sara (Debt Camel) says
You can send a complaint to the ICO.
Isaac says
Hi Sara
Hope you are good and sorry to bother you.
I have a default mark on my credit file from American Express. They defaulted my account before selling on to Brachers LLP ( I am assuming they had to default my account before selling/moving on the debt).
The thing is, AMEX never notified me via any communication channel of the default notice nor did Brachers LLP.
Also, it says my account was in arrears for six months and my credit file shows six months of missed payments (which is also incorrect).
Also, Brachers LLP are claiming that as this was a charge card and not a debit or credit, it is not covered by the Consumer Credit Act 1974 (which seems to be correct).
I was just wondering if I have any leg to stand on to remove this default mark on my credit file?
Thank you for your reply.
Thanks
Sara (Debt Camel) says
Also, it says my account was in arrears for six months and my credit file shows six months of missed payments (which is also incorrect).
how many months missed payments were there?
Isaac says
Hi Sara
Thank you for replying. According to the credit file, there was six months missed payments.
I can assure you Sara, I didn’t miss six months’ worth of payments (AMEX closed the account after one month of late payment) and I always paid the monthly balance/amount Brachers LLP required each month on time; I don’t know why it would record as six missed payments.
Thanks for your reply.
Sara (Debt Camel) says
I always paid the monthly balance/amount Brachers LLP required each month on time
but with a charge card you have to repay the balance in full every month.
If you had paid Brachers in full on the second or third month then you can argue that you were never 6 months in arrears, only 1 or 2 months so no default should be added.
But every month you failed to make the contractual full payment, you were breaking the contract. So it sounds to me as though a default is correct if you hadnt repaid the balance in full.
Isaac says
Hi Sara
Thank you for your reply.
Final point, in regards to the default notice, is it correct that they do not have to inform me via letter or any other method of communication of the default notice as it is a charge card and it is not covered by the Consumer Credit Act?
Thanks
Sara (Debt Camel) says
A creditor does not have to tell you when a default is being added to your crdit record.
That has nothing to do with whether it is a CCA debt – the “Default Notice” provisions of the CCA have nothing to do with when a deafult is recorded on your credit record.
Isaac says
Hi Sara
My final question.
I understand that the creditor does not have to inform me when the default is being added.
I was under the impression the creditor would still have to issue me a notice of the default.
If the creditor is unable to provide me with a copy of the default notice issued, is it possible to have the default removed due to a technicality?
Sara (Debt Camel) says
I was under the impression the creditor would still have to issue me a notice of the default.
No they don’t.
Emma says
Hi Sara ,
Just my Equifax credit report n
,I have late payments in my credit report ,first reported Apr 2012 made six late payments and last reported on June 2015.Account settled Feb 2016 and not active anymore. I read late payments amount removed after 7years would you advice if it will be from 2012 or when last reported 2015?
Thanks
Sara (Debt Camel) says
The account will drop off your credit record six years after the settlement date of Feb 2016. Not 7 years.
Emily says
I have a question I am currently trying to get my credit score up and I have 6 default accounts currently on my credit file from 2017/18 that are all due to drop off in 2023/24 now my question is would it be better to try and get some of them defaults paid and settled or leave them (I am paying minimal amounts at the moment) and concentrate on not getting any more and paying off my ccj to improve my credit score or get everything up to date?
Sara (Debt Camel) says
Top priority has to be not getting any more missed payments or defaults. And especially not another CCJ.
Paying off the defaulted loans or the CCj will not change your headline credit score. But it may make some lenders more likely to lend to you.
If you can get any settlement offers accepted, that can speed up the time until the debts are cleared.
John says
Hi,
Bit of a strange one that I’m hoping you can advise me on.
Back in 2014 I was suffering severe financial difficulties and ended up in a DMP with Stepchange.
Nationwide were one of my creditors and looking at my credit file they recorded me as 3 months in arrears from October 14 and this remained constant ( showing 3 ) for about a year before changing to 4 and then “DM” until early 2017.
At that point my situation improved and I was able to cancel my DMP and revert to contractual payments, and haven’t missed a payment since and the balance is nearly cleared.
I’m concerned that these payment arrears from 14-17 will be on my credit file until 2023 so on that basis, am I within my rights to ask them to apply a retrospective default on the account ( back to 2014 ) even if I did subsequently return to contractual payments? They did actually issue me with a default notice on 2 occasions but never actually defaulted the account, when I think they should have?
Sara (Debt Camel) says
do you know what the dates of the default notices were?
John says
Unfortunately I didn’t keep the paperwork but one was in 2014 and the other in 2015.
Sara (Debt Camel) says
Then I think you can ask Nationwide to set a default date in 2014 when they issued you with a Default Notice and you failed to comply with it. There is no legal link between that and having to add a default to a credit file, but it is very good evidence that the lender thinks you have defaulted.
John says
Am I correct in assuming that interest should have been stopped at the time of the default as well? Can I ask for that to be refunded?
Sara (Debt Camel) says
Was this a credit card, loan or overdraft? HAd you made an arrangement with Nationwide or just stopped paying?
John says
It was a credit card. I stopped paying for a few months then entered into a DMP with Stepchange after that but even then not all the payments were made. It was in 2027 when I left the dmp that they resumed charging interest I think.
Sara (Debt Camel) says
ok, so the problem is if you choose to go back to making the normal payments, then this includes having interest added.
I don’t know what Nationwide will say to your request to have a default added – it is quite rare that people do go back to making full payments. And I haven’t seen a case where someone asked for the interest to be refunded as well.
John says
Hi Sara,
Just to update you on this. Nationwide have upheld my complaint and have agreed to refund all of the interest and amount on top as an apology. They are also arranging for the account to be removed from the Credit Reference Agencies.
Thanks for all your advice.
Charlie says
Sara or anyone can you help. I have a loan with Hitachi, last year and some of this year I took a reduced payment holiday of 6 months where I paid £50 instead of £252. At the end of the 6 months I was happy to resume paying the normal amount but decided to pay more so I could pay off the amount I had not done in the 6 months so now pay £302 a month for the time being.
Whilst I was in a reduced payment, Hitachi marked my credit file as missed payments and in arrears. I was OK with this as they advised me this was going to be the case. However, since I have increased the payments in March to £302 they have also marked every month since this with missed payments too, are they allowed to do this? It is the only blotch on my credit file for this year but it is showing every month. Any help would be greatly appreciated.
Sara (Debt Camel) says
some of this year I took a reduced payment holiday of 6 months
was this caused by cornavirus?
Charlie says
No before, from September 2019 to January 2020. I still made payments during this period just at a reduced amount. I guess my real frustration is that I have made payments from February onwards on time and more than the minimum amount to make up for the underpayments but it is marking it as missed payments on my credit record and has done every month since last September.
Sara (Debt Camel) says
So you missed 5 months payments. How much have you overpaid so far, how many of the missed months have you caught up on?
Charlie says
So, I have overpaid every month but only caught up on roughly 2 of the months as I underpaid for those months in 2019 much less than I am overpaying.
Sara (Debt Camel) says
ok, then technically if your account shows you as in arrears by 5 months, this should now be corrected to 4 or possibly 3 months. Certainly when you have cl;eared the arrears they should go back to no arrears showing, normal payments being made.
Tim says
Hi Sara
Thank you for all your guidance, help and time you provide everyone with, you help so many people.
I have a query that hopefully you can clarify for me, I’m unable to find it but I’m sure it’s already been asked (apologies).
I have two old NatWest accounts, one with an overdraft and one without, both over their limits.
The default dates reported on both seem incorrect to me, I’ve requested all documents referencing defaults under a SAR. My question is this, if my account limit is £1,000 (for example) and I have a default registered in 2017 on the account, but then continue to use the account does the following influence:
A) I continue to to use the account, the balance isn’t brought back within the £1,000 limit before being closed and going dormant.
B) I continue to use the account, the balance is brought within the overdraft limit of £1,000 but never down to £0.
C) I continue to use the account, the balance is brought into positive as salary is paid, but straight into overdraft with outgoings.
Essentially at which point does the default become void? I believe my account received defaults prior to cessation of use (pre 2017) but I don’t know if these would still count as an initial default date in the cases as above?
Thank you!
Tim says
Sorry, just to clarify.
Defaults shown in 2017 when I stopped using the accounts, but I believe I received defaults prior to this for these accounts, however I continued to use them.
Paul says
Hi,
I had a Santander Overdraft £1000 back in 2010, in 2011 Santander Sold my debt to Cabot financial(Experian says the Cabot account was open in 2011) but they had defaulted me in 2015 which means i still have a year do go with default in my account. Is this legal to wait 4 years to default me ? Can I ask them to remove it from my account or backdate it ? Its been 10 years since i had financial problems, and the defaul is still here.
I would appreciate if someone could point me in right direction how to go about this.
Sara (Debt Camel) says
Ask Santander to add a default to your account in 2011 when they sold it to Cabot.
Matt Day says
Morning,
I have a big problem after getting a default notice from EON.
In May 2018 we moved into a rented property which EON were the provider. Within 10 days I had switched to Bulb. I then received a bill for £130 from EON which I contested as it was too much for such a short period of time. We went back and forth a number of times and eventually they asked to get Bulb to send them the meter readings, which I did.
It all went quite then and I just assumed everything was sorted.
That is until I have just been to apply for a mortgage and been refused because of a £130 default notice on my Equifax credit report. I use Experian and this is 989 out of 999.
I rang them and told them what had happened and they have said there was nothing they can do?? We are now without a mortgage for a new house we have reserved. It’s heartbreaking. We have had no corrispondence from them since we lived at the old house.
The other frustrating thing is that we moved into the house May 2018 and they have isseud a default notice in August 2020 which to creditors looks like is a couple of months ago.
Any help would be brilliant, as a family we are devestated!!
Sara (Debt Camel) says
oh dear. This is why I tell people to check all three credit reference agencies before making a mortgage application.
What date did the Bulb account start from?
I suggest you send EON a Subject Access Request asking for a copy of all your personal data including recordings of phone calls, use the contact form here: https://www.eonenergy.com/for-your-home/residential-contact-us