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?
Anna says
Hi
I defaulted in 2009 on two credit cards I have been paying them ever since. I lost my job due to corona and had to freeze payments. My partner has offered to settle these two debts one thats £2900 for £1500 settlement (it was a £11k debt). But the advisor told me it would go back on my credit file as partially settled. The whole thing has effected my life so massively and I’ve finally got a good credit rating I dot want to go backwards. Is this true it can reappear on my credit file?
Sara (Debt Camel) says
Who is the current creditor?
Rachel Opray says
Hi original debt with payday express has been sold to PRAC Financial. Default date is October 2016.
Showing on my credit report as in arrears no default date recorded. I’ve asked repeatedly for PRAC to add the default date so this drops off my report sooner but they are ignoring me. I’ve raised disputes but getting nowhere.
I’m happy to pay the debt off in full as soon as they add the default date. Can you offer advice
Sara (Debt Camel) says
did you submit a claim to the Instant Cash Loans Scheme covering this loan?
You should have been asking ICL to add the default date, not PRAC. Then PRAC have to use the same default sate as the original creditor.
Rachel Opray says
I did yes and I’m waiting for redress now. I’ve just emailed ICL to ask. Thanks so much for your help
Sara (Debt Camel) says
ok! If this loan is included in the redress, ask ICL if they can help with PRAC. You want the negative marks removed (not a default added) and the interest removed from the debt.
vaughan says
I would personally take the settlment. The partially settled would not really effect your cedit file anymore than the default. If the default has already dropped than it really does not matter. Keep in mind if you are using a DMP then they will get a kickback the longer you pay the debt
Sara (Debt Camel) says
The debt will never reappear on her credit record.
BUT if the debt has been sold to a debt collector, it is well worth asking the creditor to produce the CCA agreement before settling it – if the CCA agreement cannot be produced then the debt is unenforceable in court and there is no need to pay anything at all.
colin S says
Hi ALL,
I am looking for some much need help. I completed my DAS scheme early in 2018 ( started April 2014) , however BOS Credit card has never defaulted my account and as such still on my credit report more than 6years after the agreement date.
Now this impacting mortgage applications. I saw that a lady called Angela back in July commented to discuss a similar case.
I am looking for some help to close it out , the bank just keep pushing me around different departments with no progress and the DAS team cant help as I have completed my scheme .
if anyone can help I would be so grateful
Mrs Angela Kazmierczak says
Hi Colin. We had success in a DAS case after it had completed and there was still a debt showing on the credit file. The DAS took over 6 years to complete so we wrote to the creditor and quoted the Information Commissioner Guidance in reporting arrears. “In normal circumstances lenders will be notified when the debt that is owed to them is to be included in an insolvency e.g. bankruptcy, IVA or similar and should be marked as included in that by filing a default as soon as is practical.” We argued that DAS should be considered as similar. As your DAS started in April 2014 there is an argument to made that they should have defaulted the account at that point. There is no guarantee they will agree to do this though worth trying. You may also want to raise this as a complaint with BOS as that should ensure its gets dealt with and your not passed to different departments.
Evie says
Hello I was hoping for a bit of advice.
I have two old accounts with shop direct – both went into a DMP into 2012. I am wondering when the default should have applied as it is still a live debt on my record. Should it not have been defaulted and dropped off ? I’m asking as I’ve been trying to make full and final offers which they won’t accept and are threatening to default now which to me seems incorrect ?
Thank you very much.
Sara (Debt Camel) says
are the accounts still with shop direct or have they been sold?
Evie says
Hi sorry for the late reply. They are still with shop direct.
I also have another one with PRA group that was defaulted by Barclays in 2014 but still showing as live in my credit record – is that correct ?
Thank you so much!
Sara (Debt Camel) says
You could ask them to add a default back in 2012 as the article above suggests.
Shaz says
Hi, Been in a DMP since April 2017. Avant Credit didn’t default the account in 2017. I sent an email to offer a settlement figure in April 2020 but didn’t receive a reply back so just forgot about that settlement offer and carried on paying my DMP. I received a default notice on 18 November 2020 so when I rang to query, I was told that the letter was sent in error and to ignore it as I’m in a DMP. Today I received a call from Avant Credit regarding my settlement offer which has been accepted, however when she mentioned that it would reflect as satisfied with partial settlement and would remain on my credit report for 6 years, as the account was defaulted on 18/12/20. I explained that i tested positive for Covid-19 on 25 November 2020 and been on sick pay since so i would have explained due to my personal circumstances i was unable to pay the arrears but was advised to ignore the default notice. I’ve raised a complaint however just wondering if the default can be backdated to when I entered the DMP?
Thanks
Sara (Debt Camel) says
Yes it can
Mathew Harrington says
I entered in to a credit agreement with creation finance for a Bed back in Dec 2012, I had needed to go in to a DMP paying token payments (£1) from June 2013, i was making these until May 2016 when they sold the debt on to Lowell, and then registered the default, I was then able to pay off the debt with lowell. My credit file has the default on it for another year and 5 month. I’ve called Creation to see if the default date can be moved and they said it only registered as a default when the sell the debt on. Can I challenge this and should the default date be in 2013? I’m trying to get a mortgage and don’t want this to impact me.
Sara (Debt Camel) says
Has the debt been paid off?
Mathew says
Hi Sara, yes been paid off with the debt company, now at £0 on my credit file
Sara (Debt Camel) says
Yes, as the article above says you can send them a complaint and quote the SCOR rules.. Then send it to the ombudsman if they don’t change it.
Tim says
Hi,
Apologies I can’t seem to find the answer (as much as I have looked and searched)…
Do the 3-6 months arrears default registering also apply to monthly mobile phone contracts? I had a default applied almost 24 months after a last payment on a mobile phone contract which at the moment is the difference between it being off my credit file.
Thanks!
Sara (Debt Camel) says
Yes it does
Jo says
Hi Sarah, All the best for Xmas and New Year (before I continue)
Just after some guidance please. I entered a DMP in Jan 2019 and am now so pleased I am nearly debt free (or will be in a couple of months). I have been looking through my 3 credit reports – I have one CC – defaulted but showing twice – 1st by original CC company and again by the collectors – all show the same date, however should this now be showing just once?
I have another passed on the debt in the early stages, never appeared on any CR until August 20, with a default that I diidnt even know about so I am going to negotiate with them to backdate it (as I do stil owe them a couple of payments). OK now 2 loan accounts (now settled) no defaults – 1 has AP markers then settled – the other just says deliquent ( have a couple of payments to make on this one also). Would you suggest i try get default applied on both? I am presuming the drop off date on those would be 6 years from my last payment (as opposed to any default date I could get?) – any advice would be appreciated. How would creditors feel about being asked to apply or backdate a default on an already settled account? Thanks in advance.
Sara (Debt Camel) says
should this now be showing just once?
No this is normal. Only one of them is counted for your credit scoring.
It isn’t easy to say what you should do as your DMP was so short. The non defaulted debts will drop off 6 years after the settlement date. Is it worth trying to get a default added to them which will drop off a bit sooner but which will damage your credit record more until it goes? No simple answer.
Jo says
thanks Sarah. I will just leave things as they are i think. I am virtually debt free now anyway. £22000 paid off in just 2 years so am happy with that :-) thanks for all your help and advice.
Michael says
Hi.
I have a default dated Feb 2015 so I believe this will vanish next month. However for the past 4 years I have been paying a credit agency £50 monthly to clear this. The balance is now around £2000, will the payments continue after next month? Thanks.
Sara (Debt Camel) says
yes. See https://debtcamel.co.uk/debt-not-on-my-credit-file/
BUT what sort of debt was this originally – credit card, catalogue, loan. overdraft, mobile or what?
Michael says
Thankyou for your answer. It was a credit card with Vanquis who sold the debt to Lowell.
Sara (Debt Camel) says
Then I suggest you read https://debtcamel.co.uk/ask-cca-agreement-for-debt/ – that may help you but it’s not guaranteed to work.
Michael says
Thanks again. Can I please check however, if the default date is shown as Feb 2015 and I have made monthly payments for a couple of years, will this defaults vanish from my credit report next month, even if I continue paying monthly?
Sara (Debt Camel) says
Yes.
Laura says
Hello,
I am about to enter debt management plans with 3 different creditors…however I have been contacted by one of them offering a partial settlement, which has got me thinking in regards to what you talk about with default dates.
If I take that offer should I ask that creditor to add a default back in June 2020 after I missed 3 payments? Meaning the debt would drop from my file June 2026 rather than at the end of the settlement payment plan (Which would be Feb 2022, meaning a drop off date Feb 2028)
Also if I proceed the DMP with the other two creditors with a very hopeful view of offering them a final settlement in the future too…would I be best to ask them also to add a default to my accounts when I first missed 3 payments (again June 2020) Therefore the debt would drop off my file in June 2026 if I was to get settlement offers next year? Thank you.
Sara (Debt Camel) says
If I take that offer should I ask that creditor to add a default back in June 2020 after I missed 3 payments? Meaning the debt would drop from my file June 2026 rather than at the end of the settlement payment plan (Which would be Feb 2022, meaning a drop off date Feb 2028)
It’s not clear to me that that is a good idea. A default until 2026 is much worse than a payment arrangement that ended in 2022. Is that worth it for the extra two years 26-28 where the default will be gone but a pretty old payment arrangement will remain?
Defaults are best if the payments arrangement takes a long while, not if it will be short.
Laura says
Sorry, my post was unclear there. The payment arrangement ending in 2022 is the partial settlement offer which they have offered over 12 monthly payments. So I was wondering if I should ask for an earlier default date before entering a settlement plan…otherwise the settled date would be 2022…then the 6 years on top of that on my file.
The debt management plans I would set up would probably last years and years as I can only pay about £100 a month and I owe £23k across the 3 creditors.
I haven’t had a default on any of them yet (they have written with default notices) and then the accounts have been put on hold due to financial difficulty. I was just unsure if I was best to ask for a default dated 2020 rather than paying the debt over years and years and then hopefully getting a settlement for these other debts too. So I guess two different issues here. Sorry for the confusion. Thank you for your advice.
Sara (Debt Camel) says
So the debts haven’t been sold to a debt collector yet? You won’t normally get a good settlement offer until they are.
Are you renting or buying?
Laura says
The debt has bene sold from 1 of the 3 creditors (Amex) I am renting at present.
I am just unsure if I should ask the other 2 to default me now before I enter a DMP directly with them (Barclays and RBS) or should I wait and see if I can do a partial settlement with them in the future. That is if a settlement looks better than a default on my file.
I was considering a partial settlement with Amex which would bring my debt below 20k and then doing a DRO – however I have read that that still looks really bad even after the 6 years?
Sara (Debt Camel) says
You got lucky with Amex. Original lenders do not normally offer low settlements quickly unless there is a good reason why you are unlikely to ever work again. Hoping for this to happen quickly with Barclays and RBS may well not work.
Insolvency – DRO or bankruptcy (as you are renting it is very unlikely an IVA would be better for you – especially as you have to pay more over a longer period and 30% or more of IVAs fail, leaving you back with your debts) are well worth looking at to get certainty now.
A DRO is not visible to lenders after 6 years. Unless one of their debts was included withion it – so Barclays say may be able to see this debt for as long as their internal systems hold the records.
(Exactly the same applies to Bankruptcy and an IVA, the other two forms of insolvence. They are all very visible for 6 years and then not. Mortgage lenders tend to ask if you have ever been insolvent (DRO and IVA the same as bankruptcy – bankruptcy is not worse) but plenty don’t mind if you have – you can get a mortgage after insolvency.)
A partial settlement with Amex will make it difficult to get a DRO for a while as it may be seen as giving preference to one creditor over another. Also if you can really afford £100 a month you may not qualify for a DRO – but I have seen a lot of people overestimate what they can afford to pay… Bankruptcy may be a simpler option for you now.
I suggest you should take debt advice on your situation. Phone National Debtline on 0808 808 4000 and they can look in detail at how much you can afford each month, whether you would qualify for a DRO and what the pros and cons of the different solutions are. It is your choice then what you want to go for, but it will be a an informed choice.
Laura says
Hi Sara, I have just got off the phone with Step Change who have said that a DMP isn’t ideal given my debt and available money each month. They gave me the option of IVA or Bankruptcy.
I spoke with citizens advice last year and after their advice I don’t fancy the IVA option.
I was hoping if I didn’t get a DMP that I could reduce the debt to under 20k to apply for a DRO.
You mentioned previously that I wouldn’t probably get a DRO if I paid a creditor as preferential payment.
What if I was to have a gift of money from a family member to partially settle the Amex debt then the outstanding amount would be under 20k. Would you then think I could apply for the DRO? My budget plan with Citizens advice leave me with under £50 a month and I have no assets.
Alternatively, should I go for the bankruptcy now and clear them all?…I dot know which is worse for me long term. :-(
Also, the discussion of the default date being put on earleir…is this still applicable for DRO and Bankruptcy, or are they their own 6 year markers? Hope you can help. Thanks
Sara (Debt Camel) says
As you have no assets you are quite right to reject an IVA. It has no advanatges over bankruptcy for you – you will have to pay more over a longer period and a lot of IVAs fail leaving you back with the debts – bankruptcy doesn’t.
If a relative gives you the money to pay off the Amex offer, then that should not count as “preference” so a DRO should be allowed.
But is this your best option?
Can I ask how much this gift from a relative would be?
You are renting I assume – is this private rented or council/housing association?
Do you have a real chance (not a daydream) of getting a much better-paid job in the next year? Next three years?
Laura says
Thanks for replying again.
It would be 3k to pay the settlement. It was a 6k card and they have offered 3k settlement.
Yes I am a renter. Not sure on the job front. I don’t earn a terrible wage (25k) but I don’t see that going a great deal higher in the next few years. Maybe a new position in another company but only a couple of k where I am currently employed.
My other thoughts were to try and arrange a payment plan with the other two creditors and accept the settlement for the third. It would take longer to clear the debt but no bankruptcy or dro. I have just found out that Amex did default me in September too.
Sara (Debt Camel) says
You have advice from StepChange that a DMP is not that good an idea and that insolvency is better. To me that feels right as these are very recent defaulted debts. Paying £100 a month is going to takje a very long while to clear them and you aren’t likely to get low settlement offers from the other two debts for quite a while, better to get certainty.
If you qualify for a DRO – and I am not sure if you have been given clear advice on this, if you want to go for this you need to make sure you will be eligible for it if you get the debt total below £20k – then you have to choose between a DRO and bankruptcy.
In terms of your credit record and chance of a mortgage after 6 years then they are really much the same. (As as an IVA, but there seems no reason for you to choose that risker route that will mean you have to make payments for 5 years.)
Bankruptcy would have the advantage that you only have to have a gift of the bankruptcy fee of £680 from your relative, not 6k. That seems to me to be significant.
But I think you should go back to StepChange and talk through the DRO option with them and see what they say.
EDIT in June 2021, the maximum debt limit for a DRO was increased to £30,000. And you can have £75 a month spare income.
Kirsten says
Hello,
I was hoping someone could help me.
I am in the process of applying for my first mortgage with my partner, sadly after trying to obtain a mortgage in principle, our mortgage advisor informed of an defaulted account dated April 2019 from an old student overdraft from Barclays, who passed on the debt to Moorgroup, the outstanding balance was paid and is currently showing as satisfactory on my credit score. The balance was paid January 2020.
My question is can I contact the original lender and ask them for a ‘goodwill adjustment’ as accordingly to my mortgage advisor this is preventing me from obtaining a normal mortgage. I don’t want to go down the alternate lender route, as I don’t want to get into the same situation I found myself previously struggling to make payments. I first took the overdraft out by in 2015.
Any suggestions or help would be much appreciated. Thanks
Sara (Debt Camel) says
Was the amount tiny?
Were you unaware of it before jan 2020?
You are quite right to want to avoid alternate lenders.
Helen Ford says
Hi, I wonder if someone could give me some advice.
I went into Scottish trust deed in July 2014, in 2018 the trust deed was completed. Last year a default notice was added to my credit file for Barclays partner finance with a default date of October 2015, this debt was in my trust deed. I have contacted the creditors and they won’t acknowledge that the default date is wrong, my last payment i made to them was 10/6/2014 and I entered my trust deed in the July 2014. i have just applied for a mortgage and have been declined because of this. I have checked my credit report with three different credit agencies and they all have a different default date for the account. Any help would be appreciated Thanks
Sara (Debt Camel) says
Can I suggest you ask this on this specialist Scottish Debt Advice site: https://www.advicescotland.com/home/protected-trust-deed/
Alex M says
Hi, can anyone help?
I have taken a car on loan back in 2011 from a company called Funding Corporation (or Funding Circle). At some point in 2013/14 I wasn’t able to keep up with payment anymore and around 2014/15 I have split with my wife. I was visited by collections team in 2015 and car was repossessed, I was however left with a bill of around 6k and a default was registered on my Credit Profile in June 2015.
Last year I noticed that I have 2 more defaults on my account (one registered Jan 2015 and one registered Nov 2015),eventually I paid off the Nov 2015 debt in full and left the Jan one knowing that it will be knocked off my report (which it was) soon enough. But at some point I realised that the debt amount for the car has DOUBLED….
Checking this further showed me that another company (called Debt Managers) registered a second debt with the same amount and same default date on my Credit Profile.
I notified Experian of it, they did confirm back that this will be referred to Funding Corporation for further advise, soon after the Debt Manager default disappeared from my credit profile , up until last Friday when it re-appeared again (???)
I contacted Experian again this morning but it makes me wonder if there is anything else I can do ?
Sara (Debt Camel) says
I suggest you talk to National Debtline on 0808 808 4000 about this and whether interest should still be added.
Reginald says
Hi, I hope someone can help me. I am currently in a DMP and have been in since August 2016, I have a number of debts in default which will drop off my credit file soon. However I have debts from loans with two companies Satsuma (Provident) and Likely Loans who have not marked these debts down as defaults despite me only making token payments for over 5 years. On reading the guidance it would seem that these should have defaulted some time ago. I have written two complaints to these companies, but please could I have clarification that these companies should have recorded these as defaults by now rather than recording the debts continually as in arrears and missed payments every month? These debts have not been sold so to me it just seems like they are doing this so that they get all their money because my credit file is continually impacted until the debt is settled. Also they record these as missed payments even though payments are being made albeit not the full payment. In my eyes I have either defaulted in 2016 or I have made payments each month.
Satsuma were told by the financial ombudsman to remove any negative information from this loan in June 2019 as they lent to me irresponsibly but because the loan is still outstanding and in their words has passed the maturity period they are within their rights to now mark the token Payments as missed. I don’t think this is right either.
Thank you in advance for any advice offered.
Sara (Debt Camel) says
Satsuma were told by the financial ombudsman to remove any negative information from this loan in June 2019 as they lent to me irresponsibly but because the loan is still outstanding and in their words has passed the maturity period they are within their rights to now mark the token Payments as missed. I don’t think this is right either.
That is completely wrong. I suggest you put in a new complaint to Satsuma about this.
Likely Loans – have you sent them an affordability complaint to? this is often the easiest way to clean up your credit record.
Reginald says
Thank you for confirming regarding Satsuma I will insist that the negative information is not continually added.
I complained to Likely Loans some time ago and they didn’t agree with me and the FOS didn’t agree with my complaint as it was the first loan, it was an instalment loan (satsuma was too, but this was the second loan) and there were no flags on my report to suggest I couldn’t afford it. The reason I got into debt with these companies was too fund a serious gambling problem and pay off existing creditors which I couldn’t keep up with. If they had conducted proper affordability checks ie; bank statements they would have noticed it was irresponsible to lend to me. I assume that’s what you meant by an affordability complaint?
Sara (Debt Camel) says
Yes that is an affordability complaint.
You can ask Likely loans to add a default date as the article above these comments explains.
IK says
Hi
I have a default against me from npower, looking at my Experian credit report it shows they opened it in jan 2013 but put the default against me in feb 2016 my question is should the default date be 2013 when it started?
Also I have 1 year left till the default clears off my credit file however I believe it maybe sooner as the default is incorrect.
I am in contact npower to dispute this default but in meanwhile would appreciate any help and advice.
Thank you
David says
Hi – Just discovered this site and a hive of useful info.
I’ve got a Q I’m hoping you could help with, Sara. I thought I had a pretty clean credit file, no issues applying for decent credit cards, balances paid monthly etc. But as i’m planning on a mortgage application in 2021 I thought I’d check and see if everything is up to date (interesting I’m not on the electoral roll despite being on the electoral roll, for example).
Anyway, in the course of checking, I note British Gas have marked a load of late payments against me from a previous property I rented. I think I paid the balance and closed the account (electricity was closed for example) but Gas apparently wasnt and circa £100 owed. Such a small sum! Now they havent registered a default, they’ve instead marked a missed payment from mid 2016 through to Dec 2018. So two and a half years.
No idea on the impact of this, doesnt look good, obviously its an oversight at worst. Should I challenge it, or just pay it? And am I better to ask for it to be a default dated end of June 16 (if i’m reading this thread right) or just leave it as is?
Any help gratefully received! Thanks
Sara (Debt Camel) says
Was your electric also from British Gas?
When did you leave the property?
David says
I’m pretty sure the electric was too, i’d have to double check, but i’ve never been proactive enough to split that normally.
I left the property mid 2016, June I think.
Sara (Debt Camel) says
I think you need to find out the facts about what happened. You cant Argue what the default date should be until you know them. If you had A dual fuel supply, how come one was closed corrected but the other wasn’t? At the moment it isn’t even certain whether there is a debt.
So check when you left. Get your bank statements and check what you paid. If you paid by direct debit, check with your bank when it was cancelled. Check your old emails for communications from BG. Talk to BG and see what they say.
Katie says
Hello,
I had a store card with New Day and a credit card with Barclays which entered into a DMP in December 2012 which finished in 2018. Neither of them added a default onto the accounts at the credit reference agency when I entered the DMP.
Can I request that both of them add a default date of December 2012 when I entered the DMP? I want both of them off my credit file.
Weatherman says
Hi Katie
You can ask them to add a default onto the accounts if they never did previously, and yes this should be from the point at which had missed or made reduced payments for 3-6 months. From what you’ve said, that default would not show on your file.
But the reduced payments you made under the DMP will continue to show on your report for six years after you made the last one. The six year time limit starts afresh for each new marker, whether it’s a missed or reduced payment a CCJ, a Debt Relief Order, etc).
Amanda says
I had a N/Wide credit which defaulted and came off my credit file in Jan 2020. Eauifax confirmed it was removed. Today I have not a alert to say its been added on to my report for February.
Help, can Nationwide add this back on? Can they change the default date? Or add a notice of correction? Im so confused
Weatherman says
Hi Amanda
Did the debt default more than six years ago? If it did, then it shouldn’t still be on your credit report and you should find out from Equifax what’s going on. Nationwide shouldn’t change the default date; you might need to complain to them if they have.
If it was less than that, then it’ll stay on your credit report until six years have passed from the default date.
A says
Yes its 6 years old as of Jan 2021.
Equifax are reporting it as 2018. Im worried about querying it in case it opens a can of worms with Nationwide but I need it off my report.
Any advice?
A says
Anyone offer any advice please,
Equifax are reporting it as Aug 2018 but experian and transunion as Jan 2015 and its off my credit report with them.
If I complain to Nationwide or Equifax, will this open a can of worms? Does it matter if the default qas registered in 2015 but you made a payment in 2016?
Weatherman says
Hi A
The default falls off your credit report after six years. Complaining to Equifax or Nationwide won’t affect that, and whether you’ve made payments since also doesn’t change it. So if you can get the default changed to Jan 2015, it’ll fall off your credit report.
There is a separate question about when a debt becomes ‘statute-barred’ (when a creditor can no longer take you court for it). That also has a six-year timer, but that *does* reset if you make a payment, or acknowledge the debt in writing. So if you made a payment in 2016, that would reset the statute-bar timer, or if you acknowledged the debt in, say, 2019, the timer would restart again. There’s lots more information about statute-barred debts here: https://debtcamel.co.uk/statute-barred-debt/
Hope that’s helpful!
A says
Hi Weatherman,
Thank you for your reply. This is what I am worried about and them then saying because I made a payment after the default date (I cant remember if I did or didn’t, as it was so long ago) that they will reset it and it will go back onto my credit file for another 6 years!
I just don’t understand how Equifax have a different date and they have even reported the 2015 date to Checkmyfile!
Sara (Debt Camel) says
Weatherman is right. Making a payment can’t reset this and have it back on your credit record.
A says
So they have to change the date to 2015 and in effect it will just come off my credit file?
Sara (Debt Camel) says
Yes.
A says
Hi Sara,
Thank you for coming back to me. I have raised this with Equifax and they will raise it with Nationwide but it can take up to 21 days. Im trying to get my mortgage and this is affecting it. Would you suggest going direct to Nationwide or let Equifax do what they need to do? Im really annoyed that they are the only one giving the wrong information out.
Sara (Debt Camel) says
Definitely talk to Nationwide – it wastes time trying to do this through a credit reference agency.
A says
Thank you so much for your advice. Just spoken with Nationwide.
They are removing the NOC as its their error, changing the default date on this and the default date on my Credit Card.
The credit card has an outstanding balance and I did make lots of payments after as I found my bank statements so it won’t be statue barred so I’m prepared to sort that after they remove this default.
Thank you so much for your help everyone 😁
Nigel says
Not sure if you rember anyway nationwide promise to remove my 2 defaults and rewrite both loans
It’s been over 8 weeks and defaults still on, in complaiment it said give it 8 weeks, now they saying after remoter been done
Rewrites done a few days ago.
They just put 4k in my account I didn’t apply for a loan, and wouldn’t get one anyway..it’s their error should I tell them as friend keep saying don’t they can’t do anything.
Also I complained through exeprien, it’s not rmoeved and they said this was not agreed to call them and they said will do after rewrite
Sara (Debt Camel) says
Yes tell them about the error.
Nigel says
Thank you for sensible advice I’ve told them they will let me know why by Monday
I just got a letter in post saying it’s a personael loan
I never applied and wouldn’t get one anyway, all I did is agree to rewrite.
Cj says
Today I received a letters from the aa as I had an amount owing do to misunderstanding on when payments finished ..they told me before xmas I could split payment into to or three payments..so two weeks ago I made 2nd payment they said I could do a third one in couple week .not tk worry as I had 90 days to pay it ..today letters says they have sent default notice ..said I was in breach of clause 2 and must be paid by 16.02.21. The it says if paid by this date no further action will be taken …so is this a warning of default or an actual default..I’m really annoyed as they said I had nothing to worry about
Weatherman says
Hi Cj
This is a Default Notice – which is not the same as a default on your credit report (confusingly!). The Default Notice is a step some creditors have to take before they can apply for a County Court Judgement (CCJ).
Are you able to pay the remaining balance by the 16.02.21? If you are, then do that and problem solved! If not, then contact the AA, explain the situation, and either ask to pay in instalments or to have longer to pay. You should ask them to put in writing that they will not take further action provided that you stick to whatever you agree with them.
Even if you can repay the debt, you might also want to complain to the AA about the fact that they’ve gone to the Default Notice so quickly, particularly given what they had told you before. Ideally you’d have their previous comments in writing, but they will almost certainly also have recorded any phone conversations you had.
You also shouldn’t have a default on your credit report for this, because you’ve not missed payments for 3-6 months. Check your credit reports over the next couple of months, and if one appears, complain to the AA and ask them to remove it.
Andy says
Hi Sara
I have defaults for PDL’s listed that are different from the lender to who owns the debt now. The debt owner now lists them a few months after. As this is getting closer to dropping off (March 2021) is it worth me challenging this or leaving it? Just looks like next year, the original lender account will drop of, but the new owner of the account will still list it..
Sara (Debt Camel) says
The new debt owner should have used the same default date as the original lender. You should ask them to correct this.
Have you looked at making affordability complaints about these debts? See https://debtcamel.co.uk/payday-loan-refunds/ for details including a template letter to use. If you win, in addition to a refund/debt reduction the default is deleted.
Dan says
I had a Lloyds current account which defaulted back in January 2015 and this was added to my credit reports. As the 6 years have now passed it dropped off my credit reports just last week, I’m in a DMP which is due to be completed next month and this account has recently been settled as part of the DMP. However I logged into my equifax credit report today to see that the account had reappeared with a default date of 2017 ! surely LLoyds are not allowed to do this. I have been trying to get through to customer services but to no avail. Is there any other department I can contact that deals specifically with credit reporting ?
Regards
D
Weatherman says
Hi Dan
You’re right that this default should not have reappeared. I would complain to Lloyds in writing (by post/email/webform – just make sure you keep a record of it too) – and if they reject your complaint, or don’t reply in 8 weeks, take the case to the Financial Ombudsman Service.
Dan says
Hi
Ok thanks for the advice I will do this . It’s only on Equifax that it’s showing as 2017 which is really strange . It’s dropped off both Transunion and Experian . I will send an email to the complaints department at Lloyds. I’ve raised w dispute with Equifax but I know from reading other posts on here that they take a long time to sort things out !
Thanks
D
Nicki says
Hello, I’m hoping someone will be able to assist me. I was supplied electricity by SSE between 09/01/2013 to 13/04/2013 where I acquired a debt balance of over £3000. The debt has recently been passed to a collection agency who I received my SAR from today, on the information it states my last payment recorded as 20/04/2014 however the default date is 26/04/2016. I was not in an arrangement or communicating with SSE between 20/04/2014 and 26/04/2016. Why would the default date be 2years after the last recorded payment date?
I’d really appreciate any assistance.
Weatherman says
Hi Nicki
It seems like the energy company has put the wrong default date on. The default date should be once you’ve missed 3-6 payments. Even though the debt’s been passed to a collection agency, contact SSE and ask them to correct the default date.
Joanne says
Hi could you please offer some advice please
I entered A dmp in 2013 my credit card debt was sold to Lowell not long after this however Lowel have defaulted in may 2020 on my credit file can they do this or can I ask the original lender to add a default date please
Sara (Debt Camel) says
You can ask the original lender to add a default.
Have you been making low payments to this? What balance remains?
Joanne says
Thank you for replying
I have a balance of 1000 remaining.
I have emailed original lender asking if they defaulted my original debt when entering my dmp as I can not see that on my credit file
All my other accounts were defaulted around 2014/15 and are dropping off my file now but will have this one for another 6 years
Lisa says
I took out a provident loan November 2016, it then transferred to Lowell and has been defaulted since April 2018.
I haven’t paid anything since these dates, it’s affecting my credit score. The loan was no more than £2000 originally and the interest is stupid!
Is it better for me to wait until this clears without payment or do I start to repay back now and it’ll help my credit?
I don’t want it to restart the default and then clear later than the remaining time I have left.
Sara (Debt Camel) says
was that the first loan you had from Provident?
Mark says
I entered a Debt Management plan on November 2012. Shortly after all my accounts showed default bar one a Santander Flexi-Loan originally taken out with Cahoot. This account showed a varied history with it reaching up to 5 months in arrears then it would suddenly go back to been ok with no arrears or the arrears would stop and drop some. This happened until 2018 when. the account was put into default.
I complained to Santander who rejected my complaint to get the default set to within 6 months of them being informed of the account been managed by a debt management plan but they rejected this as the account management was fine. After contacting them to clarify this, they said that “Interest Adjustments”” kept the account from going into default until they stopped in 2018. He said the account would have gone into default June 2013 until a payment of £319 settled the outstanding balance due (Interest Adjustments). He is passing it back to the person who originally dealt with the complaint so i can receive further information as to why the interest adjustments were made as they were,
If they still reject my request to move the default back after requesting the further information should i then go to the Ombudsmen over this or have i to accept this is a valid reason they have given to how the default was applied. The debt is now paid off and i am debt free with this the only default now showing.
Sara (Debt Camel) says
I think you need to be cleared what the interest adjustments were – I can’t really imagine!
Robert says
I had a student OD from 2008 graduated 2011 defaulted in 2016, sold last year.
By July 2015 it was nearly 2k overdrawn and £400 above the OD limit – during a complaint about fees they stated it wouldn’t default until the account was with collections.
From Jan – Dec 2016 it had interest applied keeping it over the OD limit and partial payments from me from summer mostly £1 a month.
It defaulted Dec 2016.
Can I request the default is earlier as a result of it being long term OD and partial payments being made of a £1 for months?
The debt buyer lists a default in July 2016
The original bank lists a default of Dec 2016 (coincidentally i think the assignment date)
I had a SAR request but there’s no default notice so I can’t check which is correct either.
Just to add I never used the account was my main account which was part of the agreement once graduated ( as evidenced by the statements I have too) so would that not count as a breach of the account/OD and make a case for an earlier default?
Sara (Debt Camel) says
By July 2015 it was nearly 2k overdrawn and £400 above the OD limit – during a complaint about fees they stated it wouldn’t default until the account was with collections.
so why did you keep paying them small amounts?
Default dates for overdrafts are hard as there is no minimum payment amount each month. I think you may find it hard to get this moved earlier.
Robert says
Hi Sara,
I’ve managed to get my complaint not upheld but agreed to roll back the default by 6-8 months. Which I think as it will drop off next summer I should take as a minor win?
Kay says
Hello,
I entered into a DMP in 2012 which finished in 2018. All but two accounts went into default within 6 months of it starting, apart from a Barclaycard and a store card. The other accounts have dropped off my credit file but the Barclaycard and store card are still on my credit file. Can I ask them to apply a default date six months after I entered the DMP ?
Thanks
Sara (Debt Camel) says
Yes you can, see the article above.
Kay says
Thank you Sara. If they agreed and register the defaults 6 months after the DMP started around June 2013, will the accounts drop off my credit file?
Sara (Debt Camel) says
any default date before Feb 2015 means the debts will drop off immediately.
Sarah says
Hi, would you be able to help me. I have just received a letter of claim for the county court for a debt £330, that should be statute barred. It has been sold to a debt collector and my credit record says it was defaulted 2016. The debt started in 2007, 14 years ago. What should I do? Do they have to prove this is the correct date?
Sara (Debt Camel) says
What sort of debt was this? When did you last make a payment to it?
Liam Attrill says
Hi Sara,
My wife has a default on her account but with no default date. She is still making a regular payment each month but believe this should have dropped off by now. Should this still be on the report if it’s been 6 years since it defaulted. And why would it still be showing as active?
Thank you
Liam
Sara (Debt Camel) says
what report is she looking at? what sort of debt is this?
Liam Attrill says
Credit Karma.
One is with Lowell. The other is Cabot financial.
Natwest credit card is in default with no default date just missed payments up until july 16 then nothing.
Thank you
Sara (Debt Camel) says
One is with Lowell. The other is Cabot financial.
Are you saying the same NatWest debt is being reported by two different debt collectors?
Liam Attrill says
Sorry, I haven’t been very clear. So there are 3 defaults. 2 of which I think are over 6 years old and should have been removed by now but have no default date. They are Lowell/Cabot there is another default which is with NatWest credit card with no default date but missed payments show July 2016
Sara (Debt Camel) says
so these are 3 separate debts? What sort of debts were the Lowell and Cabot debts?
Which of these three are you making payments to?
Liam Attrill says
I believe one was a payday loan and the other Halifax credit card sold on.
All 3 have payments being made
Sara (Debt Camel) says
ok, then you need to go back to the original lender – not the debt collector – and ask for a default date to be added back in 2014 or whenever she was first 6 months in arrears. Once this is done, the debt collector will have to use the same date and the debt will drop off.
Otherwise these debts will remain until 6 years after they have been settled.
Emily says
Hi please can you advise if I should request a cca agreement from moorcroft for an old tsb loan? I have been on a dmp for years now and pay £21 per month my credit file is excellent now as all any debt I had has been paid off other than this and it does not show on my credit file. I owe around £14k now from a £23k consolidation loan. This loan will never get paid off in my lifetime at this rate.
Sara (Debt Camel) says
what are the rest of your finances like?
Emily says
They are ok no other debts.
Sara (Debt Camel) says
well it’s worth a try. What do you have to lose? If they find it, you just carry on with the monthly payments.
Emily says
Ok thank you for your help. Will anything happen if they do find it? Can it reappear on my credit file?
Do I send the request to Moorcroft or Lloyds?
Sara (Debt Camel) says
If Moorcroft are collecting on behalf of lloyds, send the request to Lloyds.
If Moorcroft have bought the debt so they are now the creditor, send the CCA request to them.
See https://debtcamel.co.uk/ask-cca-agreement-for-debt/ for a link to the template to use to ask for the CCA agreeement.
The debt cannot reappear on your credit record if they find it. You just have to keep paying it.
Emily says
Ok thank you. How can I find out if moorcroft are just collecting for Lloyds or if they own the debt please?
Sara (Debt Camel) says
You have to ask moorcroft.
Emily says
Ok thank you for your help.
Bob says
Hi
I have 10 defaults on my credit file. Was on a DMP from 2018 and have since partially settled all of these debts so nothing is owing and the collection agencies may well have closed my accounts.
Now want to save for a mortgage but conscious of the defaults (most recent default date currently showing as July 2018).
I feel as though the default date is wrong for most of these debts, most of which date back to 2016. Can I still contact the original lender (say by phone) to ask them to change the default date to 2016? Will they generally do this even if the debts have been settled since with collection agencies?
Weatherman says
Hi Bob
You can certainly contact these lenders and ask them to correct the default date – I’d do so in writing so you have a record of it. If they refuse or ignore you, complain and if necessary take it to the ombudsman (FOS if it’s e.g. a credit card, Energy Ombudsman for energy, etc).
When the default date should be isn’t related to the current status of the debt so they should correct an incorrect date even if the debt’s been settled. Good luck!
Bob says
Thank you for your reply, much appreciated
Lisa says
Hello,
I queried Experian about an unknown defaulted account with lender Arrow Global on my credit file.
It materialises it’s for a Monument credit card taken out on 10/05/2001 which I vaguely remember having.
Arrow Global say they purchased the account on 22/12/2014.
On my credit file, the default date shows as 01/12/2015.
Can it be right that the default date is almost a year after Arrow Global purchased the debt?
I have done a CCA request to Arrow Global and they say they have nothing from the original lender (Monument) and nothing themselves.
Apparently they say I made a payment of £10 to Compucredit in June 2016 in relation to this account but I don’t remember this and none of my bank accounts shows any such payment.
They have yet to provide proof of this payment.
Could you provide some clarification or tell me what I can do further please?
Many thanks,
Lisa
Sara (Debt Camel) says
Can it be right that the default date is almost a year after Arrow Global purchased the debt?
Had you been making payments to this card before it was sold to Arrow? If you hadn’t, then you should argue that the debt should have been defaulted on or before the date the debt was sold.
But this debt is going to drop off your credit record in December this year. It’s up to you if you can be bothered to argue about the default date to get this put back so the debt drops off sooner.
I have done a CCA request to Arrow Global and they say they have nothing from the original lender (Monument) and nothing themselves.
Good. Then this debt is unenforceable in court. You do not have to make any payments to it.
Apparently they say I made a payment of £10 to Compucredit in June 2016 in relation to this account but I don’t remember this and none of my bank accounts shows any such payment.
If you had made this payment it would have “reset the clock” so the debt wasn’t statute barred.
But in this case that doesn’t matter. As they can’t produce the CCA agreement it is irrelevant whether or not the debt is statute barred. I suggest it isn’t something to waste time thinking about or disputing.
Lisa says
Thank you for your prompt and informative response!
The only reason this default is bothering me is I want to lease a car in the next couple of months and it’s affecting which vehicle I can go for.
I don’t remember making any payments at all, even before it was sold to Arrow.
I’ll check my bank accounts to see if there’s anything though.
But I’ll probably end up just leaving it as you suggest.
Many thanks, Lisa
Sara (Debt Camel) says
The payments issue is not relevant to getting the default date changed.
You can try arguing the default should have been added when the debt was sold – it is a good argument if at that point you had not made payments to the debt for more than 6 months. Do you have your old bank statements for that period that would show this?
Lisa says
I do have old bank statements before this time, dating back to 2010 in fact and none show any payment to Monument or Arrow or Compucredit!
I will definitely write to Arrow regarding this and argue what you say regarding that the default should have been added when the debt was sold. Thank you Sara
Aly says
Hi Sara, my DAS started in March 2011 and was paid off in April 2017. Capital one have never defaulted the account and missed payments are still showing with the last being April 2017. I am aware from the article and others questions that I can ask them to change this but I wondered if theres any possibility that in doing this it may cause more harm than good? I have a one year plan in place to save for a mortgage so trying to get my credit files in order as best as I can before then.
Thanks, Aly
Sara (Debt Camel) says
Is this account still open? Are you using it?
Aly says
It is showing as closed on Clear score website, I would assume that means its shut on all but would have to check the Experian posted report later to confirm the status on there.
Sara (Debt Camel) says
So you need to know when it was closed. And check there is zero owing.
Check the Equifax statutory Credit report.
Aly says
Capital one balance is showing as 0, status code is showing 6 throughout the 6 years and was last updated on 7/1/18, the das was paid off in October 2017.
I’ve also noticed that a BOS loan, which again was paid through the DAS, is showing as status code 4 (previously 5, 6 and 0 throughout the last 6 years) with a £1317 balance last updated on 1/11/15 but I don’t think it would be worth pursuing a change as it should drop off this year and I’m not going for my mortgage until the start of next year if that makes sense.
Aly says
Just to add I’ve just noticed that the capital one account is showing as settled on 28/12/17 but the BOS has no settlement date.
Sara (Debt Camel) says
I suggest you ask in the comments on this blog by a Scottish Adviser: https://www.advicescotland.com/home/debt-arrangement-scheme/
aly says
Thanks Sara
Michelle says
I was emailing Anglian Water regarding a different account, they responded with the below email.
You mentioned in your email that you were paying off a debt that your ex-partner left you with, while looking for this account I found ***account*** which is for ***address***for the period of 25th April 2011 to 12th March 2016. There was a Default registered on this account on 27th November 2014, however due to bills being added after this date, the Default date now is 27th July 2016. The account has a balance of £1096.80 left owing on it – was this the account you were referring to? I could not see a second person as ever being named on it so just wanted to make sure in case there was another account with Anglian Water in joint names that also has a balance outstanding. As this account is also vacated we can set an arrangement up for anything that is above £5.00 a month.
I need advice note how to proceed with this new information from Anglian Water.
Myself and the Ex Partner moved out of the property on 1st September 2013.
Firstly I was unaware my name being on this bill as my ex partner was working as I unemployed during that period and he left me in so much Debt.
I was never contacted to say the account was in arrears as so is it unreasonable to have the default added.
I had later accounts with AW so they knew my contact details. I paid the debt as soon as I found out about it.
Also they have changed the default date, can they do that?
Weatherman says
Hi Michelle
Water is one of those things (like Council Tax) where you can be held liable for arrears even if your name wasn’t on the bill, if you were living at the property. They might have sent letters to your ex-partner, rather than you, so they can still mark the account as defaulted even if you never received a letter yourself.
However, if you moved out in 2013, you will not be liable for debts that built up after that date. Tell Anglian Water the date you moved out, and if possible give some evidence (e.g. if you gave your landlord notice, or have a new tenancy agreement after then for a different property).
If any of the debt was for the period you were at the property, you owe this. I think they’ve added a *new* default in 2016, which they can do if there are new unpaid bills after an original default. But as I say, I don’t think you owe all of this money.
Alex says
Hi Sarah. I had an account with Creation Finance that began in March 2013. I fell into financial difficulty in January 2015 and missed some payments. I contacted debt charity and went onto a DMP for this debt and others that I had. In April 2016 Creation wrote to me stating they had sold my debt to Lowell. In July it will be six years since all of my other debts were defaulted. However, when I checked my credit file recently I realised that Creation did not place my account into default. Having read your guidance above, I wrote to them asking them to place it into default and to backdate it. Today I received a letter from them stating they will backdate my account with a default for June 2015. Good news!
The reason for my post is because I now need to write to Lowell who they sold the debt on to in order ask Lowell to also backdate the default to June 2015. I can see from your article above that “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.”
Whilst I don’t doubt that this is correct, can I ask where this policy comes from? I would like to be able to quote something to Lowell when I write to them.
Thank you.
Alex.
Sara (Debt Camel) says
You have already done the hard bit – I expect Lowell will just correct this when you tell them. This is routine for debt collectors.
Are you still making payments to this?
Alex says
Yes I am. I didn’t want to make my post too long, but I have been paying on my DMP every month for the past six years. Inspired by your website I wrote asking for CCA’s from those debts that were sold on (I had quite a few). All of the sold on debts have replied that they don’t have the required paperwork so after the debts drop off my credit file later this year I was going to make very low offers (around 5%) just to know they are gone. I haven’t made the same request to Creation / Lowell because the amount owed was relatively small compared to my other debts (hundreds as opposed to thousands). After they hopefully put on the backdated default, perhaps I should send a CCA request to them?
Sara (Debt Camel) says
yes, good plan.
Also you need to know that most debt collectors seem to reject the 5% offers. It’s simpler to just stop paying them anything!
Alex says
Hi Sarah. I’ve just had an ‘interesting’ conversation with Lowell. I called to explain what Creation have said they will do and to ask if they want a copy of the letter. They said that (1) they owned the debt now so Creation couldn’t add a back dated default, (2) as my account was not in default as soon as I clear it it will drop off my credit file anyway and (3) even if Creation can add a backdated default it won’t make any difference to my credit file as the account is not ‘in default’ with Lowell. It was left that I will send in a copy of the letter for them to consider and they will put the account on hold for 28 days.
Can I ask for your observations on what they said please?
Sara (Debt Camel) says
1) Lowell are wrong.
2) so what, you want it off now.
3) this is also wrong.
The best thing is to get this in writing and not have telephone conversations with customer service staff that don’t know what they are talking about.
Alex says
Thanks Sarah.
Wiggler says
I have an old debt of about £6k (originally) with Barclaycard that was originally an Egg card, which went into default in 2013 and the Credit Limit was withdrawn in June of that year. I have a credit report which shows no payment for 17 months between 2012-14 but no default date. Eventually this was sold on and marked in my credit file as satisfied in August 2015 although I have since maintained regular payments. PRA are now claiming ownership and keep writing to me with a reducing balance (now c. £3k) as my Standing Order to Barclaycard keeps chipping away at it. My question is how can I get this debt to show the correct default date back in 2013 and therefore off my credit report? I am thinking I should send a prove it letter and then try to hold PRA to the original default date.
Sara (Debt Camel) says
ask Barclaycard to add a default back in 2014. Then PRA have to use that.
Also but entirely separately – and you may want to wait until the default is sorted first – read https://debtcamel.co.uk/ask-cca-agreement-for-debt/ and think about asking PRA (not Barclaycard) for the CCA agreement. If they cant the debt is unenforceable.
Wiggler says
Thanks Sara.
In a very long conversation Barclaycard are telling me they can’t do this and to register default or not is at their choice. They are referring me to PRA so now I am waiting for a call from Complaints…
Sara (Debt Camel) says
ok. They can do this. And if they refuse, send a complaint to the Finacial Ombudsman.
Wiggler says
HI Sara,
Barclaycard complaints told n me they would ask PRA to remove the entry and I must say I was sceptical but the PRA account has now been removed from my file leaving the original Barclay’s Account which will fall off in a couple of months. Next up is a CCA to PRA. Thanks for your help Sara!
Kay says
Hi, I have old debts that had initially defaulted around 2009. I entered into a Debt management plan where the defaults stayed on my credit file, a few years later I came out of the DMP as I decided to make the minimum monthly payments myself (these monthly payments were still less than the original agreement. In 2018 I went back into a DMP as I stopped making payments for several months and now a fresh default has been applied from 2018. Can this happen or should the default date be from 2009 when I originally defaulted? Thanks
Weatherman says
Hi Kay
If I’m understanding this right, you’ve been paying less than the minimum contractual payment on this debt since 2009 (either on a DMP, or on your own). In that case, the default should only be put on once, in 2009. It might be that the debt’s been sold and the new company has put their own default on. If so, ask them to change the default date.
As it’s been so long since you originally defaulted on this debt, it could be worth seeing if there are other options here, rather than try to keep making small payments. You can speak to National Debtline on 0808 808 4000
Sara (Debt Camel) says
Are you sure the original loan was defaulted and dropped off? If it did, then it should not reappear with a later default date.
All the rest of the debts in your DMP. Read https://debtcamel.co.uk/ask-cca-agreement-for-debt/ and think if you could ask for the CCAs for any of the debts. Works best if the debts are defaulted and have dropped off your credit record or soon will.
Kay says
Hi, thanks for your responses, yes that’s correct I have been paying less than the minimum payment since it originally defaulted in 2009. I have several really old debts that seem to have made an appearance on my credit file since I entered into the new DMP in 2018 even though I had already defaulted on those debts and we’re paying minimum amounts myself before the new DMP in 2018. Thanks, Kay
Jamie says
Hi Sara,
I have a default on my credit file with Equifax from taktalk. This was a internet subscription dating back to 2015. I admit I was struggling at the time and never paid the debt, fast foward to now I’m financially stable and Lowell took over this debt, the thing is.. it’s as if I have two defaults for the same debt. On ClearScore who I know get data from Equifax under talk talk there is a satisfied date of 3/8/215. Under the same account on talk talk there is a default date of 27/01/16.
Obviously as a rough guess this is when Lowell brought the account, which made it “satisfied” the account for it for talk talk by Lowell is showing on my credit file under Lowell. So this is separate to the actually talk talk account but for the same acount and Also how can you have a satisfied date that is before the default date? To me it’s the same default registered twice, once by talktalk and then again by Lowell? The other thing that is really confusing me is on clear score it shows two red dots meaning miss payments from October and November of 2015 on the talk talk account but then on Equifax it’s self it shows two red dots from may and June of 2025. First red dot in may says 2 in may and June says 3. Obviously I know this means I was 3 months late payment rise. So why does ClearScore say October and November I was late under talktalk account? But yet Equifax says it was may and June of 2015?
Sara (Debt Camel) says
what is the default date on talk talk? not the satisfied date, the default date.
You would have to ask ClearScore about your second question. I know this report is used a lot, but it can be very confusing.
Jax says
Hi Sara, can you advise me please. I have a loan with Hitatchi taken out in May 2019. I got into financial difficulties at the end of 2019 and managed my own DMP. I made an arrangement with Hitatchi and have since increased the amount I pay them each month. I have again increased my payment to the normal monthly payment however I still have arrears of over 2k which I hope to pay off within the next 6 months. The arrears will not increase any further as I will be paying the contractual amount again from this month. It’s showing as an AP marker on my credit file and has been reported as 6 months late since June 2020. Is it better to ask them to default it back to last year or leave it as an AP? I would hope to pay it off in the next couple of years ahead of the 2024 settlement date of my agreement. The loan was for 10k and the amount outstanding with interest is around 12k. Once I have paid off the arrears it will be less than 10k owing and the early settlement at the moment would take off an additional 2k or so. I can’t settle right now but as I say, I aim to settle sooner.
Sorry for the lengthy post!
Sara (Debt Camel) says
My first thought is, should you have been given this loan in 2019? Read https://debtcamel.co.uk/refunds-large-high-cost-loans/. If you can Win an affordability complaint, interest is removed from the debt so you only repay what you borrowed AND any negative marks are removed from your credit rating.
What is the normal monthly payment?
Jax says
Thanks Sara. The normal monthly payment is 251. I had no missed payments on any accounts but had maxed out credit cards and overdraft. I hadn’t had any payday loans at the time but I did have 3 active loans from other lenders.
Sara (Debt Camel) says
That sounds like a LOT of debt. It may be worth making an affordability complaint if you feel that repaying the Hitachi debt was a large part of the cause of your financial problems.
The arrears are more than 6 months of payments so you have a case for arguing a default should have been added in June 2020. Ask them to do this as the article above says. BUT this means you have a default on your credit record for nearly 6 years. It’s a hard choice between that and an AP and settling the debt in 2022/23.
Aaron shields says
Hi, wondering if you can help. I defaulted on a catalogue some years ago ( when I say defaulted I’m not sure if a default was recorded by the original creditor or not and I can’t see that far back on my report) but certainly made no more payments to them.
It now shows up on my credit report as a Lowell debt. It states start date 22/04/2015 but then default date as 10/04/2020 so I’m looking at another 5 years until this drops off. My worry is that it was around 2015 when I stopped paying the catalogue so should my default date not be around that time. If the catalogue didn’t record a default should Lowell at least be using a default date from around the time the acquired the account. Hope this makes sense? In simpler terms it appears Lowell have taken on my account, waited 5 years, and then put it as a default on my account? Any help appreciated thankyou
Weatherman says
Hi Aaron
Ask the original lender to set a default date for 2015 – you can refer to the ICO guidance Sara links to in the piece.
When they add it, or if they already have (but Lowell ignored it/wasn’t aware), also write to Lowell and tell them this. They should then change their default date so it’s the same as the original lender’s default date. And because that’s nearly 6 years ago, by the time that’s done it shouldn’t show on your credit report at all.
The only risk with all this if if you’ve not made a payment or acknowledged the debt since 2015. If that’s the case, then the debt would soon be statute-barred – and asking for the default to be changed would count as ‘acknowledgement’, so restart the statute-bar timer. More info on statute-barred debts here: https://debtcamel.co.uk/statute-barred-debt/ If you think that might be the case, speak to National Debtline who can advise you: 0808 808 4000.
Aaron says
Hi, thanks for your reply. I have made payments to Lowell when they first took it on, then missed some with them (they then defaulted account)
However I am right thinking it should have been defaulted with the original creditor? Otherwise surely it wouldn’t have been passed to Lowell?
Kay says
Hi, I have checked all of the debts on my credit file and there are 2 old debts still showing. The accounts were opened in 2008 and 2009 and both defaulted in 2011 when I entered a DMP.
The account opened in 2008 was with Littlewoods (Shop Direct), it was sold to Arrow Global who then sold it to Cabot Financial. Cabot Financial have recorded on my file that the account was opened in 2012 and defaulted in 2018 which is incorrect. Should I write to them requesting my CCA and asking for the default to be recorded as 2011 and therefore taken off my credit report?
The account opened in 2009 was with Fashion World who agreed to my reduced payments in my DMP but it doesn’t appear that they recorded the default in 2011 and so it is still showing as being in a DMP on my credit file. Should this have dropped off?
I also have an overdraft with Natwest that was sold to Wescott and is shown as defaulting in 2018 – as this was an overdraft can I not request a CCA Agreement from Wescott?
Thanks
Sara (Debt Camel) says
The Shop Direct and Fashion World debts – you need to ask the original lender to add a default date in 2011, see the article above.
You can’t ask for an CCA for an overdraft.
Joan says
I’ve got 2 defaults, one with MyJar and one with Wonga both of which are now in administration, I’ve only recently started looking into defaults etc and not only do I feel that the right processes weren’t put in place in terms of letters received and these were put onto my account 4/5 months in arrears but also I feel these loans were given “irresponsibly” and should never have been given to me.
These defaults are due to drop off in 2024 but my question is, now they’re in administration is there zero chance of fighting these defaults and getting them removed? or is there certain actions I can take?
Sara (Debt Camel) says
Two very different cases.
Myjar the administration has only just started so you can still put in an affordability complaint. If that is upheld the default will be removed or the loan deleted.
Wonga the company no longer exists. Read https://debtcamel.co.uk/correct-credit-records-lender-administration/ and tell the CRAs the default date is wrong and you canniot get hold of Wonga to make them correct it as they no longer exist. Ask the CRAs to suppress the record.
NB asking the CRA to suppress the record is the last resort – it isn’t a short cut for Myjar. If ask now that will just be reused. Send in that affordability complaint.
Laura says
Hi Sara
Hope you can help I have a Barclays card that was sold to arc in 2015 . I haven’t heard from arc in almost five years . But Barclays is showing the wrong default date by six months so won’t fall off until 2022 . Is there any way to ask Barclays to change the date without them telling arc ? .
Thanks
Laura
Sara (Debt Camel) says
Are you saying that Arc have a default date that is earlier than Barclays?
Hannah says
I had financial difficulties towards towards the end beginning of 2017 due to ill health which lasted 6 months until diagnoses and operation. I spoke to the lender who agreed I could make make reduced payments for a few months. Once I was better I started making the normal monthly loan payment and within a few month when I was back on my feet paid a little extra each month to make up for the deficit which was caught up within another 12 months. Instead of an AP or showing that I was back making normal monthly payments after the 6 month my credit file is showing as 19 months of missed payment. Guessing until I was caught up. Surely this is unfair? This means the missed payment will stay on my file longer than a default would have my a year! I have recently had a good cheque as an apology for the way my loan was managed. Is there anything I can?
Sara (Debt Camel) says
can you say who the lender is? You could ask them to remove the negative information from your credit record.
Hannah says
It was with HSBC. The above was meant to say I randomly received a GW cheque with a letter advising they have reviewed how my loan was managed etc and as such sent a goodwill cheque as an apology. I hadn’t raised a complaint as hadn’t checked my credit file to notice until now.
emma louise ward says
Hi,
I am about to apply for a mortgage with my partner, however I had an old Abby National Account and loan defaulted back in 2007. The debt was passed to another agency who contacted or tried to contact me for a year but I have not replied nor heard anything for some time (maybe 2 years). Will this impact on my mortgage application? I have not paid anything towards this and nothing is showing on my credit file.
Thanks
Emma
Sara (Debt Camel) says
Have you checked your credit records at all three credit reference agencies? See https://debtcamel.co.uk/best-way-to-check-credit-score/ for how to do this.
If there is nothing on any of them, then the only mortgage lender who may still be able to see anything about that old debt is Santander, who took over Abbey National. So avoid them.
Emma says
Hi Sara,
Thanks for the quick reply! There is nothing showing on any of my reports for this. I will look into more details regarding my history as I last checked 3 years ago.
Thankyou
Richard says
Hi Sara,
Thanks for all your great work.
I wonder if you could please help. Lowell reported a default on my account in Feb 2020, this didn’t seem right to me, as all my other accounts defaulted in 2017/2018. I later found out that Hitachi had failed to default the account in Feb 2018, they agreed it was a mistake and added the default. Lowell are now refusing to update their default to reflect this ‘original’ or at least accurate default date.
What should my next steps be, inform the CRA’s or Ombudsman?
Is there a requirement of guidance i can quote to Lowell with respect of matching the original lenders default date?
Many thanks
Sara (Debt Camel) says
Have you sent Lowell a formal complaint about this? A debt collector has to show the default date the original creditors did. If the original creditor has changed this as it was incorrect, then Lowell should also use the new, earlier default date.
Richard says
Hi Sara, thanks for the quick reply.
Yes, I’ve raised this with Lowell but first they said it was a different debt, I’ve since proved it’s the same debt. They’re now saying…
“ Lowell are the owners of the account only we should be reporting the default. I advise to inquire Hitachi as to why they are also reporting the account.
When the account was sold to Lowell Portfolio I Ltd, we took over the responsibility for reporting the default to the credit reference agencies from Hitachi. We do not change any details of the original default, we simply update payment details of the details.”
This 3rd response confused me somewhat. Seeing as my initial email stated
“ Hitachi (the original lender) have added a default to my account and I request that the default on this account and on my credit records is updated to reflect this default date.
The Hitachi account has been updated to show the default date as 09/02/2018”
Best wishes
Sara (Debt Camel) says
You say You have raised this with Lowell. It isn’t clear to me if they have treated this as a complaint.
I suggest you make a formal written complaint to them, that it is unreasonable for them not to use the earlier default date Hitachi now say is correct. Say your complaint goes to the Ombudsman in 8 weeks if they have not agreed to this.
Richard says
Hi Sara,
I’ve titled the email as “COMPLAINT…” would you say that this is good enough?
Sara (Debt Camel) says
Oh yes, that’s good enough. In their response to you , have they said you have the right to take your complaint to the Ombudsman?
Richard says
Brilliant. No, they’ve not mentioned the ombudsman at all. Should they have?
Sara (Debt Camel) says
Yes. I suggest you reply to them that if that is their final response to your complaint they should have informed you of your right to go to the Ombudsman. So you would like to ask them to reconsider it as it is unreasonable of them not use the default date that Hitachi has now corrected.
Richard says
Excellent thank you so much Sara.
Dan says
Hi Sarah,
Firstly thanks for this great site, very helpful.
I’m currently on a DMP with Stepchange – 5 of my 7 debts have defaulted, but 2 have remained ‘Delinquent’ or ‘in arrears’. I started the DMP at the end of 2018, so defaults should have been added in first half of 2019. HSBC overdraft is one of them, I have challenged why a default was not added and I am yet to hear back. The other is Nationwide, it was a Credit Card accounts – they’ve acknowledged a default should have been added early 2019, but claim they don’t want to add it in as they’re worried it will cause ‘repopulation issue’ on credit record. It seems they are willing to add it if I insist. I’m probably going to be looking for a mortgage around 2025, when other defaults will drop off my record – do you think it’s better to ask for default to be added (and risk repopulation issue?!) or just leave reporting as currently. I’ll have paid off my debts in next few months.
Thanks again!
Sara (Debt Camel) says
you could ask Nationwide to explain what this “repopulation” issue is. When do you expect your DMP will complete?
Dan says
Hi Sarah,
Thanks for your response.
Nationwide said “We wouldn’t usually, as this can cause technical errors where the dates can repopulate as incorrect dates. However, if you would like me to add the Default then I can. As there is not a Default on the account at present, there wouldn’t be anything to drop off.” This was after me raising concern that debt would be visible on credit record, 6 years after paying off (which will be in next couple of months), if no default date was added. It seems like if I am looking for a Mortgage in 2025 onwards, it will be better than add default date for 2019, if I’m looking sooner it would be more debatable and perhaps better to leave as it is.
Sara (Debt Camel) says
I assume you have seen D’s comment below. That “repopulation” is a system error by Nationwide which they are surely going to have to correct. I cannot imagine it will still be a problem in a few years time.
If you want a mortgage in 2025 you definitely want a default added back in 2019. Leaving as a payment arrangement or missed payments is not an acceptable alternative.
D says
I have this issue with a credit card with Nationwide. It ended in jan 2021 and every month it repopulates back onto my credit file. I have to call them and they take it off overnight! Apparently its a known problem they have. Honestly it’s a nightmare because my mortgage was declined because its showed as an unpaid default. They are trying to fix thr error but don’t know how long it will take.
Sara (Debt Camel) says
I think you should make a complaint and say this in unacceptable and you would like financial compensation for every month this error persists. And if they refuse, send your case to the Financial Ombudsman
D says
Hi Sara, every month I call they say they are putting a “fix” in place but so far nothing has fixed it. Last month when it went back on, I spoke to a really helpful lady who requested the account to be closed which should “fix it”. I did say if it doesn’t I will complain to the FO. My file normally updates between 19 and 25th so I am on tender hooks between now and then this month to see if it repopulates. Its a disgrace and it is really stressful.
Sara (Debt Camel) says
I would be thinking £100 a month for compensation.
Oli says
Hi all,
I’d just like to a quick advice here if possible, I am in the middle of ending a DMP arrangement as I’m able to now settle all the debts 2 years ahead of the original DMP end date. However, I noticed that two debts with Lloyds bank which include an overdraft and credit card have two different default dates even if I stopped (or made less payment) on them together.
The credit card has a default date of mid-June 2018, which is about right based on the ICO’s guidance (3-6 months) and the overdraft is recorded as August 2019. Both accounts were passed on to a DMP in February 2018 after defaulting in January 2018, the first DMP payment was made to Lloyds in early March 2018.
Lloyds bank has since sold both debts to Wescot but the default date on the overdraft is much later than the credit card even if both accounts were part of the DMP. Wescot has said that they cannot change the default date until Lloyds agree. Can anyone tell me if Lloyds should change the later default date? I believe both accounts should have the same default date as per the DMP start date, is that correct?
Your advice would be much appreciated.
Thanks in advance!
Sara (Debt Camel) says
Did Lloyds bank stop adding overdraft charges when the DMP started?
As an aside from the overdraft default question, are you proposing to settle the DMP debts in full? Have any been sold to debt collectors?
Oli says
Hi Sara
Thanks for getting back, it’s really appreciated.
Ok to answer your questions:
1. No they didn’t on the overdraft account as they kept saying they hadn’t received anything from StepChange (SC) regarding the start of the DMP. But SC sent me the letter they sent to Lloyds in February 2018 and I even rang Lloyds myself to tell them I was on a DMP in March 2018. However, months later it still hadn’t been recorded properly. But somehow the credit card account which was linked to the current account has a correct default date.
2. Yes, I’m offering full and final settlement, I have sold my car and downsized so I have enough to cover all the remaining debts.
3. Yes, both Lloyds ones are sold to Wescot, managed by Link (credit card) and the Intrum (overdraft).
Thanks.
Oli
Sara (Debt Camel) says
1. I suggest you send lloyds a complaint saying they did not stop adding interest and default the account when you entered the DMP. Attach the letter from StepCahnge and say you called them the next month. Ask them to refund you the charges and change the default date to the start of your DMP
2 & 3. You don’t have to offer the full amount – a lower amount may be accepted. And for the Link one read https://debtcamel.co.uk/settlements-old-debts-cca/ and think about that – if they cant producwe the CCA you can simply stop paying – that doesn’t apply for overdrafts.
Oli says
Hi Sara
Again, thanks for your response.
Happy to pursue #1.
# 2 &3 – TBH I have more than enough to pay off the full debt now, and I wish to apply for a mortgage as soon as it’s safe to. My income has vastly improved after I retrained and completed a master’s degree, so I have a secured a fairly well paid job now. I want the safest option and to come off the DMP sooner rather than later (I will support StepCharge as a charity moving forward). What will you advise for someone looking to get a mortgage in the very near future? What’s the best and quickest way out to better credit rating?
Thanks
Sara (Debt Camel) says
Settling the debts doesn’t actually improve your credit score.
As a rule of thumb, you have almost no chance of a mortgage at an OK rate for at least 12 months after defaults have been settled. And many lenders prefer longer.
Oli says
Thanks Sara, I would only apply for the mortgage 6 years after the start of the DMP. So early 2024 which is 3 years from now, the DMP started in Feb 2018, so if I settle everything now, that’ll be another 3 years to my target date.
Although I wish it could be sooner, I’m able to save more for a deposit if I work to that target, so it doesn’t bother me. I’ll still be under 40 in 3 years and in London now, the average age of first time buyer is between 40 & 42 years old.
Regarding the CCA, could the company who bought the debt go back to the original creditor to obtain this? I’m guessing Lloyds bank and Virgin Money (my 2 credit cards on the DMP) will still have this but it could mean waiting about 3 months. It is a tempting option but it would just extend the DMP unnecessarily as I could come off it now. I’m guessing coming off a DMP quickly would mean future lenders (e.g. for a mortgage) would be more willing to lend you money, no?
Thanks
Sara (Debt Camel) says
Regarding the CCA, could the company who bought the debt go back to the original creditor to obtain this?
Sometimes…
but sometimes a debt is sold with the debt purchaser having no right to go back to the original creditor.
If you are going to wait until the debts are off your credit record in 2024, then it will make no difference when your DMP was settled in 2021 or 2022.
You will always want to make sure you don’t apply to any mortgage lender in the same group as Lloyds, Virgin.
How much money are you talking about? If it isn’t a lot, then there isn’t a reason to fuss with this. But if it will make a real difference later on then this is something worth looking at.
Oli says
Hi Sara
I’ve looked into the CCA option and it is likely that I might be able to challenge Cabot on this. Basically, they bought the debt from Virgin Money in Dec 2018, I took out the credit card in Dec 2011 and it’s no longer showing as a debt with Virgin Money but with Cabot with a default date of Dec 2018. In fact, Virgin Money doesn’t appear at all on any of my credit reports.
Cabot is now saying they haven’t applied a default date but are using the same one as Virgin Money which appears to have dropped off my credit report. They say that the default date showing as Dec 2018 is actually the date they purchased the debt not a ‘default’ date (per se) as the original debt was already defaulted although it doesn’t appear on my credit reports. I went on a DMP in Feb 2018.
Seeing as the original debt is now nearly 10 years old from when I took the credit card, it seems that going down the CCA route might bear fruit. However, is Cabot right regarding the default date, i.e. that this is not a default but it’s their purchase date of the debt?
Sara (Debt Camel) says
Did the Vigin Money debt used to show on your credit report? When did you stop paying it, before the DMP?
Oli says
I’m not sure if the Virgin Money debt ever showed on my credit report, I only checked this for the first time this year (sorry was in denial about my debt before although I did go on the DMP, I never showed much other interest as I found difficult to deal with).
Yes I stopped paying it (or made lower payments than the minimum) about a month before the DMP, in Dec 2017 & went on the DMP in Feb 2018.
Sara (Debt Camel) says
Then you need to ask Virgin Money to add an earlier default to the credit record. If they do this, Cabot have to use the same.
If you need a mortgage in the very near future you need the debts settled. So asking for the CCA agrement won’t help. the CCA agreement is only useful if you can wait until the debt has dropped off your credit record.
Oli says
Hi Sara
Sorry it’s been a while, I initially decided not to pursue with the CCA request but I changed my mind after I’ve been having difficulties to get Virgin Money to change the default date which they recorded as 10 months after I started my DMP. They only added the default date after they sold the debt to Cabot Financial.
I wrote to both Virgin M and Cabot in mid-April asking them to change the default date. Virgin M has completely ignored everything from me (3 emails to their complaints team) and Cabot has said the default date is nothing to do with them, so they’ve passed it on to Virgin.
I have now received a response from Cabot re: the CCA Agreement saying they don’t have a copy of the original agreement and they have requested this from Virgin with a statement of account, they have urged me to keep making payments in the meantime.
My questions are – are they right to go back to Virgin M for the original agreement or should they’ve had this in the 1st place and will a statement of account from Virgin M show when they 1st received payment from Stepchange which would be payments below the minimum contractual obligations, hence a default?
Your advice would be much appreciated. Thanks!
Naomi says
Good Afternoon,
Can you change a default date on the basis you were in a DMP prior to the default date listed on your Credit Report? I’ve been in DMPs for many years however this particular debt I’ve continued to pay thoughout my DMP, I’ve noticed my Default date is when I was no longer able to make the payments however I was on a DMP prior to this? I’m now in a position to pay this off and will be looking to apply for a mortgage next year but am concerned that the default date has another couple of years before its cleared.
Sara (Debt Camel) says
Was this debt being paid as part of your DMP? What sort of debt was this and how large is the current balance?
Aaron shields says
Hi,Originally had an account with a catalogue which I missed payments ( I’m not sure how many), but the account was then purchased by lowell. Upon them purchasing it my credit report shows nothing for the first 2 months they had it then 6 missed payments for the next 6 months (no default added). I then set up a payment plan and paid for 5 months. I then missed 5 months at which point they then added a default to report.I have spoken to lowell and asked shouldn’t the catalogue have added a default date. Lowell say no because they purchased the account still live and kept the account going. I asked them well shouldn’t you have added a default at some point during my 6 missed payments to you? Again they said no. I’m wondering if all this sounds right? Is there any point we’re a default SHOULD have been added? Or can the original catalogue just choose not to add one, and lowell go over 8 months without adding one?
Also seeing as though it was lowell who added the default, would they need to provide a consumer credit agreement? I’m reading online that a default can’t be added without a consumer credit agreement. Is this correct? I’ve asked lowell for it but they are dragging their feet with it. I’m not disputing the debt just curious as too if the default date sounds fair. In short I stopped paying the catalogue it august 2018 however the default date for the actual debt on my credit report is April 2020 thankyou
Sara (Debt Camel) says
Ignoring what your credit record said –
– can you find out from your bank statements how many months you had missed a payment to the catalogue?
– how many months you did not pay Lowell?
I’m reading online that a default can’t be added without a consumer credit agreement. Is this correct?
No, that is nonsense.
It may be a good idea to ask Lowell to produce the CCA agreement because if they can’t the debt is unenforceable and you can simply stop paying, see https://debtcamel.co.uk/ask-cca-agreement-for-debt/. But this has nothing to do with a default on your credit record.
Kevin Anon says
Hi, I’m trying to remove my head from the sand regarding my debt. Looking to get a mortgage in the next few years, if at all possible.
I have a few defaults, which will drop off credit file shortly. I had naively assumed once they dropped off, any balances would be null and void. Your site has informed me that a CCJ may still be logged against me (thank you! – it’s not too late to stop it!).
I’ve moved address and hadn’t informed creditors. I’m now contacting creditors with my new address.
I have two questions if you don’t mind:
1. Some of these debts are quite old now. As long as creditors have my correct address and I am in a position to pay off the debt in its entirety, were a ccj notice to come through and meaning no ccj applied to file, would there be any benefit to being paying off the debt? Or just keep my fingers crossed they go statute barred?
2. I have two debts (below) which I stopped paying but no default was ever put on my credit file (just shows as missed payments) I’m not sure what to do. I know they should have my latest address, so I can avoid a potential ccj, but i’m concerned reengaging with them may mean they add a default now – another 6yrs of default on my file. Am I right in thinking these debts will stay on my file indefinitely until repaid?
Provident – £975 (First missed payment May 2017) PayDayUk – £992 (First missed payment May 2016)
Thank you, Kevin
Sara (Debt Camel) says
1. Are some of these debts now with debt collectors? Do the debt collectors have your new address or just the original creditors?
2. With no defaults, the debts will indeed stay on your credit record forever.
Provident – did you have previous loans from them before this one?
PaydayUK – currently in a Scheme, it is now too late to make an unaffordable lending complaint to it though :( BUT in about 6 months time my guess is ICL (the parent company of PaydayUK) will be close to liquidation and will then not be responding to any queries from you or the credit reference agencies. At that point you can contact the CRAs and ask them to “suppress” the debt because it is incorrect and should have had a default added to it, see https://debtcamel.co.uk/correct-credit-records-lender-administration/
Kevin Anon says
Hi Sara, thanks so much for your reply
All debt (original and collectors) have old address.
Provident loan is Satsuma. It was sold/passed to Zinc in 2018 and subsequently passed back to Satsuma 2020 I believe. I made an affordability complaint back in 2018 which was not upheld.
PDUK is currently with CRS. I put a claim in via scheme however only a nominal previous loan was upheld – the larger o/s loan they say still remains payable.
In addition I’m having an ongoing problem with Peachy/CashOnGoLTD.
They registered a default on my credit file in 2017 when I stopped paying. In February 2021 the administrators upheld my complaint reducing balance from £1,494 to £356.
We agreed a repayment plan, which I’ve kept to. Following this agreement they sent a NEW credit agreement, meaning the old credit agreement has been closed as nil balance(?). I then get an email to say a new default will be added to my credit file. I queried why and they said as the debt will be sold it’s a formality as a new default will be on my file under the new debt owners name.
How can I be served a default notice? On what credit agreement is the default relating to?
Thanks again
Sara (Debt Camel) says
It is a shame you did not send the Satsuma complaint to the ombudsman back in 2018. You will be able to make another complaint about this if the Provident Scheme (see https://debtcamel.co.uk/provident-satsuma-scheme/) goes ahead. But you may feel your complaint is more likely to be upheld the Scheme fails and Provident goes into administration – so you may want to vote against the Scheme.
In administration your claim will be looked at by the administrators – there won’t be any cashback, but you can still get negative marks removed from your credit record.
PDUK – did you appeal that decision? My previous point still stands – wait 6 months or more and you may be able to get this “suppressed” from your credit record.
Peachy – that is completely wrong. If they want to say there is a new credit agreement you have to agree to that and there would be no default on it. Make sure you have downloaded a copy of your credit report which shows the 2017 default date and keep that report safe. You can later produce that and dispute the date, again when the administrators have stopped responding to the credit reference agencies.
Kevin Anon says
Thanks Sara.
Satsuma – I know, I do regret not sending to ombudsman. Thanks for the info, will look out for their going in to administration.
PDUK – another mistake on my part. I didn’t respond straight away to their decision. Ultimately 30days passed and missed an opportunity to appeal.
Peachy – I thought as much, the communication from them hasn’t been great. Doesn’t seem like the team contacting me are sure what they’re talking about.
One final query re the o/s loans without defaults (on my file as missed payments.).
With a default, I understand after 6years it drops off my credit file. What about missed payments? e.g. were I to pay these o/s loans off in full now, whilst the loans would show as repaid on my file – how long would the missed payments be on there for?
Just trying to get an idea as to whether (considering I hope to be in a position to get a mortgage in the near future) these should be my priority to pay.
Sara (Debt Camel) says
They will stay for 6 years after they were settled.
BUT a the satsuma & PDUK loans definitely should have had a default years ago!
Kevin Anon says
Thank you .. regarding suppressing negative marks. Would that include the missed payments for PDUK & Satsuma? .. and I take it I would need to clear these o/s balances before I could look to do this?
Sara (Debt Camel) says
(A) If a firm (or administrators) removes negative marks because it has decided a loan is unaffordable, then this includes missed payments and defaults. And you do not need to have repaid the debt.
(B) a credit reference agency “suppressing” a debt record because you say something is wrong with it (eg the lender failed to add a default when they should) and the CRA cannot get a response from the lender/administrators. “Suppressing debt” means other lenders cannot see anything about that record at all – it is as if it does not exist.
A and B are TOTALLY DIFFERENT. don’t get them confused.
Your options:
1) ask the lender (for Satsuma) or administrators (for PDUK) to add a default back when the debt defaulted. The debt will then drop off 6 years after that date. If you do this you also need to settle the debt and will not be able to get a mortgage for at least a year after you have settled it.
2) make a claim to the provident Scheme/administration that the debt is unaffordable. This has been rejected for PDUK. It may not work in the Provident Scheme – it may be more likely to work if the provident Scheme fails and they go into administration (so you may want to vote against the Scheme?). This is alternative (A). the negative mark can be removed without you repaying the debt in theory but it is still sensible to settle the debt prior to a mortgage application.
3) do nothing now and plan to go for (B) in 6+ months for the PDUK debt.
VJ Anon says
Hi, My partner and I are looking to get a mortgage, however after getting our credit reports we have found that an old cc debt of my partners which got passed to Lowell is showing as defaulted in Mar 2016. my partner thinks that this original default may have been earlier though. Wanting to know what the best course of action would be in this instance. Should we call the CRA and make sure that the original creditor did make the default entry and then pass on to Lowell or just request a SRA to the original creditor Vanqui?
Sara (Debt Camel) says
Is the Vanquis debt still showing under Vanquis?
What date was it sold to Lowell?
And has this debt been repaid to Lowell?
Richard Murray says
Hi Sara.
I have an old HSBC loan account which I last paid into mid 2014. It was handed over to a collection agency in March 2018 which is when the first default starts. I have since paid up the account and it is now closed. Can I get the default date moved to a couple of years before, to when it should have been originally defaulted? If so, how would I go about doing that?
Thanks
Sara (Debt Camel) says
This was a loan you made no payments to? Or an account with an overdraft?
Richard Murray says
This was a loan.
Sara (Debt Camel) says
Then it should have had a default added when your were 3-6 months in arrears – so early 2015. I suggest you write to HSBC and ask for a default to be added as the article above suggests.
If the loan was sold to the debt collector so you also have an entry on your credit record from the debt collector, the default there will have to be changed once HSBC has added an earlier one.