A reader asked if starting to pay a defaulted account will help his credit score. The simple answer is No!
But there are very good reasons why paying defaulted debts will improve your general credit situation, making it easier for you to get a loan, a mortgage or a credit card in future. That credit rating number isn’t the only thing that matters!
To start, it’s good to know what your credit history is now by checking all three credit reference agencies.
Six years is the important date
A defaulted account will drop off your credit record six years after the default date.
It doesn’t matter what happens after the default – whether you pay the account in full, start paying it, agree a partial settlement or don’t pay anything at all, the account will still be deleted after six years.
So find out what all your default dates are. If you think one is too late, read What Should the Default Date Be? which explains how to get an incorrect date changed.
Your credit record gets better after six years unless…
This may sound as though your credit score will get a lot better after six years even if you pay nothing. This is correct, but there is one big exception – your creditor may take you to court and get a County Court Judgment (CCJ). This CCJ would then stay on your file for another six years. Most lenders regard a default as bad but a CCJ as worse.
You may be hoping this doesn’t happen, unfortunately after five years and a few months, a debt collector may contact you and threaten court action if you don’t set up a payment arrangement. If you have moved and not told the creditor your new address, you could get a CCJ without being aware of it.
If this doesn’t happen and the defaulted account drops off, then your credit score will improve immediately. How much will depend on what else is on your credit record – if you have a lot of other debts still showing you may not notice the difference until the last ones go.
Older defaults are less bad for your credit score
Your credit record starts recovering from a default before the end of the six years. I asked Experian how their credit rating calculations changed as a default gets older. The following numbers show what happens to Experian’s credit score if there is only one default and if nothing else changes on your credit record:
- in last 2 years – 350 points
- 2-4 years ago – 250 points
- 4-6 years ago – 200 points.
In practice there is almost always something else changing every month, so you shouldn’t expect to see those exact numbers but they give a feel for what is going on. For some more examples of how much different things affect your credit score, read How much will my credit score change if… ?
Your credit score doesn’t improve faster if you settle the debt, but…
Most people will expect that if they repay a defaulted debt their credit rating will suddenly improve. This doesn’t happen. So you may wonder why you should bother!
There are two very important reasons to start to repay a defaulted debt.
- if you are making payments a lender is a lot less likely to go to court for a CCJ. A CCJ is much worse for your credit record than a default, and it would be on there for another six years.
- lenders all make their own assessments, they don’t just use a credit score. Many lenders regard a settled default, as much less of a problem. So by repaying a defaulted debt you are more likely to get approved for a new loan.
That last point is especially important for mortgage applications. You are very unlikely to get a mortgage at a reasonable rate if you have unpaid defaults. The sooner you can repay them the better.
Each lender sets their own rules, but a current rule of thumb is that if all your defaults are over three years old and they have been repaid for more than a year, it’s worth talking to a broker about whether a mortgage is possible.
This also applies to CCJs
Exactly the same applies to CCJs. If you pay them in the first month the CCJ will drop off completely. But after that if you repay the CCJ and get it marked as satisfied, your credit score will not increase at all.
Again there are good reasons to repay a CCJ – you won’t get hassle from bailiffs or money being taken from your wages. But you are stuck with the bad effect on your credit score for 6 years.
Is it worth making low payments to a defaulted account?
Low payments won’t make much of a dent in your debt, even if interest and charges are frozen. There are positive reasons in favour of token payments – once agreed with your creditors, they will reduce the hassle you get and also make it less likely that you will get a CCJ – but they aren’t going to improve your credit record or make it more likely you will get more credit.
If you expect your situation to improve, then low payments are a good option, but if this seems unlikely then you should probably look at what your alternatives are.
Will a consolidation loan help?
If you have poor credit, it is very rare for a consolidation loan to help.
Using it to repay some defaulted debts or debts with payment arrangements is not going to improve your score. And the loan is going to be expensive – it’s usually better to get a payment arrangement to repay defaulted debts as then no more interest is going to be added.
And getting a guarantor loan to consolidate debt can be a major problem – if you run into difficulty you will then be desperate to protect your guarantor.
It’s better to talk to a debt adviser before taking a consolidation loan.
Conclusion
So although the answer to the reader’s question was No – repaying defaulted debts won’t improve his credit score faster, this isn’t really the full picture. A better reply is:
Your credit score will improve gradually as your defaults get older. This doesn’t speed up when you repay a defaulted debt, but some lenders are only likely to lend to you once defaults have been paid. And starting to repay debts makes a CCJ much less likely, which would make your credit record worse.
Consolidating with bad credit?
Can you get a mortgage with your debts?
FAQs on statute barred debt
Julia Smith says
Hi,
I got in to debt whilst at uni 5 years ago (2010). I had a credit card with my bank it had a £500 limit and I started using it simply because I couldn’t afford to eat on just my student loan. I spent £200 on the credit card and initially i was making the minimum monthly payment but after a few months I started to struggle and missed multiple payments. Being young and afraid I ignored the problem until I was contacted almost a year later and agreed to make a final settlement of £480. I managed to borrow the money and payed the total amount in cash via a cashier at NatWest branch in Leicester . I kept the receipt and thought that would be it however a year later I was contacted again and was informed the debt had now increased to £580 and received letters from NatWest. I wrote back and provided the receipt of the payment (after taking photocopies) and was told to go to the bank I paid the money to with the receipt because they could not find the payment. At this point I had moved back home which was 3 and a half hours drive from the bank in question. I informed them that would not be possible I think via a letter which I stupidly did not photocopy and heard nothing back. After 6 -10 months I recieved a letter from a debt collector so I called the number and told the debt collector the debt was settled and I could provide the receipt of the settlement payment. After a lengthy phone call eventually they agreed the debt was settled and I haven’t heard anything from them since. It’s now 5 years later and I’m still worried I’m going to have debt collectors show up at my door as I haven’t recieved any further correspondence. Should I be worried and contact NatWest? should I have recieved a letter confirming the debt had been settlement?
Thanks in advance.
Julia
Sara (Debt Camel) says
Have you looked at your credit record (see https://debtcamel.co.uk/best-way-to-check-credit-score/)? If the debt is showing on there with a balance still owing, you may have a problem. If it isn’t, I don’t think you need to worry.
Julia Smith says
Hi,
I use Experian and its showing as a delinquent/ default account but it was closed in 2011. It doesn’t show any remaining balance but shows payments are up to date after the period of missed payments all those years ago. I’m guessing that’s a good thing?
Sara (Debt Camel) says
Also worth checking Noddle and Clear Score – free ways of checking your Call Credit and Equifax accounts. If NatWest have sold the debt to a debt collector, the NatWest balance will show as zero but a new record will have been added by the debt collector.
I doubt you do need to be worried here, I’m just suggesting this to set your mind at rest.
Julia says
Thank you for your help, I’ve tried Noddle and it seems the debt was settled after all. A weight had been lifted.
Ciara says
Hi,
We had our car repossessed in June 2015 after not sending a letter to request voluntary termination in time or selling the car to cover the outstanding balance. After the car was repossessed and sold at auction via the finance company we made agreed payments from September 2015 to December 2015 and then in February 2016 we paid a settlement fee to clear all outstanding debt.
We were declined for a mortgage in October 2016 and after looking into my husbands credit report we discovered his account with the car finance company was still showing a balance of £610. Is this right? As we presumed the balance would be £0 after paying a settlement fee and we did not receive any correspondence from the finance company to chase this. Should the account still be showing as default every month even though we were making regular payments?
Sara (Debt Camel) says
If you have settled the debt, either fully or they have agreed to accept a partial settlement, then the balance showing should be zero. Complain in writing to the finance company (email is perfect) and take your case to the Financial Ombudsman after 8 weeks if this isn’t resolved.
After a default was added, it is correct the credit report will show defaults each month until the debt is cleared, even though you were making agreed payments.
This default will disappear 6 years after the default date. You should be able to get a mortgage before that. It’s worth applying through a broker when the default is more than three years old. before that you will probably only be able to get a “bad credit” mortgage which can be extremely expensive.
Ciara says
That’s great!
Thank you for the advice it has put my mind at ease.
Mike says
Hi
i had apparently had an outstanding payment with O2 for the huge sum of £5.17 from 2012 that they never bothered to inform me about.
i paid this off in September, but its still showing as an outstanding default. it might sound a bit thick because i’m fairly new to the world of credit files but shouldn’t this be now showing as settled at the very least?
Sara (Debt Camel) says
yes it should! Put in a written complaint to them. As you are having to do this, it may also be worth asking them to delete the default as they never told you about the debt … this tends to work better when you have been a customer of theirs since then… it’s worth a try.
Sadie says
I never have had bad credit until this year september 2016
I took out Paypal credit and got an iPhone in July of 2015
Payments were fine on July/August 2015
Then in September 2015 payment was one month late
October 2015 – December 2015 payments was fine
Jan 2016 1 month late
Feb 2016 2 months late
March 2016 3 months late
April 2016 payments are fine
May 2016 1 month late
June 2016 3months late
July 2016 3months late
August 2016 4months late
Sept 2016 default, also all months afterwards
When they payments started to into 2+ months late I lost my job. But Paypal didn’t listen nor did they work anything out and they are funny. Read reviews about them they act so genuine but they aren’t.
What do I do? As I want to finance a car, I have recently started a Job where I work 40 hours a week and I have a £6,000 saved for the car which is £9,000.
I’m not so bothered about the car it’s the credit record I’m 21 and want to get a mortgage quite soon in my life.
Some of my late payments were due to paypal processing them slowly or locking my account giving me limited access which they claimed they didn’t do but they did which means I coudlnt pay into the credit account.
Sara (Debt Camel) says
If you don’t think they have recorded late payments and defaults fairly, you need to put in a written complaint to Paypal and then take your complaint to the ICO if necessary, see https://ico.org.uk/make-a-complaint/.
BIf it’s just that Paypal should have been more sympathetic, but if the payments got to be 3 months late, then it is correct to make a default on your credit file and it’s not worth complaining about this. To minimise the problem this default will cause, you need to pay the debt off as soon as possible. When it is repaid, your credit score will start to improve slowly.
And for the car, my suggestion is to buy a cheaper car in cash. Go for a make where older cars have a good reputation for reliability.
Sadie says
I paid it off 2 days ago, and Paypal is well known but I didn’t know it was that bad in terms of being an unrealible service.
Lucy says
Hello,
This is such a great service. Very good of you to reply to all of the comments. I was wondering if you could advise me too?
I have a defaulted account on my credit report with EE for a 24 month iPad contract. It defaulted in Aug 2015. What is unusual is I don’t understand why the direct debit stopped in the first place and frankly did not notice it. That month now seems to appear as Unclassified on my report. When I did realise, I tried to call EE to reinstate it, but as I did not know the phone number of the simcard in the iPad, they refused to allow me access to the account to reinstate my bank details. I have not heard from them since.
Considering this seems to be an error on their end and they would not allow me to reinstate payment, is there any way I can contest the non-payment?
Thank you,
Sara (Debt Camel) says
Hi Lucy, this sort of case is difficult. EE have to have a reasonable amount of security in place to be sure they are being contacted by the correct person. But if you couldn’t get through security, they should have suggested some alternative way around the problem. If you had them complained at the time, you would have had a good case, it is the delay that makes it harder.
For now the best thing you can do is complain to EE in writing, I suggest email is best, then you will have a copy of what you say. Put COMPLAINT as the subject line of the emails
If you can provide a bank statement for the month the direct debit was not taken, showing you were in credit, that would help.
tom sewell says
hi debt camel,
i have 5/6 closed accounts from around 2013 period on my noddle report showing satisfied, but in total it shows they are in around £1000 default. im confused by this. if they are satisfied does this mean after 6 years they will be off th report or am i better paying them to get the accounts changed from satisfied to settled?
many thanks in advance
Sara (Debt Camel) says
Hi Tom, people often find the satisfied / settled labels confusing, see this article: https://debtcamel.co.uk/settled-or-satisfied-credit/
Lindsay says
Hi Debt Camel,
I have received a letter from ladderloans referring to a ‘Automatic Write Off’. They have explained they will write the outstanding debt of £1297.43 off to a zero balance and close the account, this will also be marked as partially settled on my credit report. They have also commented they will not pursue the outstanding balance in relation to this debt and no further payments via direct debit/standing order will be applied to the account. It does comment If I wish to pay the outstanding balance off in full, my credit report will then be changed to fully settled.
As I fell into debt, this account was handed over to a DMP and they have handled any correspondence for the last 2 years, as far as I can see this account never defaulted on my credit report.
Can ladderloans at a later date still pursue this debt with a CCJ or sell this debt on?
Should I try to save up to pay this off in full? I’m trying to clear my debts in full over the next 3 years so I have a chance to then save and apply for a mortgage, I fear this partial settlement may go against my future plans
Sara (Debt Camel) says
Looking just at this offer and your options:
– No they won’t be able to go for a CCJ later.
– They shouldn’t sell the debt on, but you could ask them to confirm it in writing just in case.
– Keep the offer letter and your reply etc for at least 6 years. Any problems are VERY unlikely but better safe than sorry!
– You should also be able to ask for a default date to be added 3-6 months after you defaulted – see https://debtcamel.co.uk/debt-default-date/. This will then vanish 6 years after the default date so by the time you have a deposit saved for a mortgage it will be gone and the partial settlement will not harm you.
But you also need to think about:
Had you borrowed a lot from them before this loan? If you had, you may want to consider if you have an “affordability” case – you may be able to get a refund of interest paid on the previous loans. The offered write off would reduce the amount you could get back, but some people with long borrowing histories have had refunds of thousands of pounds … see https://debtcamel.co.uk/payday-loan-refunds/ for more information. If the ombudsman decides a loan is unaffordable, it is usually deleted completely from your credit record.
Jake says
Hi,
I have a CCJ on my credit history which expires next month after 6 years. How quickly should my credit score increase if this is the only red mark?
Thanks
Sara (Debt Camel) says
Immediately. If you are using a “free” service to see your credit record (see https://debtcamel.co.uk/best-way-to-check-credit-score/) then it is probably updated only every 30 days, so you may not be able to spot this straight away.
PS CCJs don’t “expire”. If you haven’t paid this there is a chance the lender may go back to court and ask for permission to enforce it.
Jake Canning says
Ok thanks. Yes i know they dont expire as such they just get removed from my credit file. I only noticed the CCJ a couple of months ago from an old address i moved out of years ago. Once it is removed from my file and if a lender comes knocking. If i pay the CCJ off will it reappear on my credit file as settled?
Thanks
Sara (Debt Camel) says
no, it will never reappear :)
Ronald says
Hi. I have some defaults of my credit report and most of them are from the year june 2011. Is it ok to offer them a payment in a small amount and wait until June 2017 and then stop paying them? it will be already 6 years from the default though. Is this a good idea or bad? I need your advice please. Thanks.
Sara (Debt Camel) says
it’s not a good plan. See https://debtcamel.co.uk/no-calls-or-letters-about-debt/ for your current situation and https://debtcamel.co.uk/paying-old-debt/ for what your situation will be in June 17 if you follow your plan.
Joe says
Hi,
I have a defaulted account from 2013 from a phone company for a balance of £673. My credit is sitting at poor on noddle. I got a ‘bad credit’ credit card and nothing has improved. Is this because of the default on my account and am I worth paying this default as I’m looking to get a mortgage who has good credit in the summer as we have both saved enough using a cash to buy isa for a deposit.
Any other help would be appreciated.
Thanks
Sara (Debt Camel) says
With an unpaid default your credit record isn’t going to improve – pay it asap! It is a shame you have left this so long – there are some lenders that are happy to lend if old defaults have been repaid for more than a year. I suggest you should go through a mortgage broker when you do want to apply, not direct to a lender.
Your ‘bad credit’ card – I hope you are using it and repaying it in full each month?
Joe says
Hi.
Thanks for your reply and your advice.
The only reason this has gone on for so long is that I was advised it wouldn’t help so there was no reason to pay it.
What is the best way to use the card I’ve never actually been told the best way to use it?
Thanks
Sara (Debt Camel) says
Who gave you this bad advice? Paying a defaulted account won’t make a huge difference to your credit score, but it starts the slow process of repair. But crucially you won’t be able to get a mortgage with undsettled defaults. And lenders prefer them to have been settled a while ago… Imagine you are a mortgage lender and you have the choice of lending to someone who has an outstanding default, someone who has just paid the billd or someone who paid it a year ago and hasn’t got any more bad markers on his credit record in the last year – it’s obvious who you would choose, isn’t it!
The best was to use a bad credit card is to use it for something regularly and budget so that you can defintley repay it in full each month. Someone people always use it to buy petrol say – that way you are not tempted to use it for something else! It is essential that the bill is paid on time each month. not a day late. And that you pay more than the minimum. Paying the lot means means you don’t incur any interest.
Joe says
It was actually from a mortgage advisor who didn’t seem very professional from the start and was just after a payment!
I’ve spoke to the company who the accounts with and they have passed it on but have provided me with details.
Is if worth settling this in full or at a reduced amount which they offer?
Thanks
Sara (Debt Camel) says
That’s a difficult decision – – some lender may care, some may not. But in your case a partial settlement won’t save a large amount and this is going to be on your file so years, so probably full is best?
James says
Hi Sara,
Great site btw, very informative & helpful and I’m hoping you can give me some advice.
I have 2 x Defaults that are due to come of my account on the 22nd February 2017 and 22nd March 2017, these were due to redundancy back in 2010-11. My current credit score with Experian is 788 (Fair). I was hoping you could give me an approximate indication of how much my Credit Score would improve by after these are removed. We are hoping to start a Self Build in the Spring (land purchased and 20k to start the build) this year after recently selling our house so will be applying for a new mortgage and just a bit wary of where I will stand with the banks for getting accepted. I have a credit card & store card but with zero balances and no other debt at all thankfully. Any advice would be appreciated.
Cheers :-)
Sara (Debt Camel) says
If you have been using your two cards and repaying them in full and on time I would be expecting your credit record to improve a lot very quickly!
NB make sure you don’t apply for a mortgage to a bank that you have previously defaulted to… or they may be able to see it from their internal records.
James says
Thanks for the quick response Sara.
Both defaults were for store cards (Argos & Homebase).
One other thing I forgot to mention was I took out approx 8 x pay day loans from 2014 to early 2016, all for small amounts believing paying these back on time, in full and in most cases early would improve my credit score/rating.
I have read a few worrying posts on your site suggesting this may cause difficulties in gaining a mortgage….is this the case even though I am totally debt free and with a large deposit?
Cheers
Sara (Debt Camel) says
Anecdotally you should be OK with some lenders if you haven’t taken a payday loan within the last year… don’t apply direct to a high street bank, go through a broker who seems to know what they are talking about when you explain your situation and history.
Zoe says
Hi Sarah,
I’ve got 2 defaults one is 2013 and the other is 2014, to the value of £1200, am I better off clearing these debts in full before I try to get a mortgage at the end of this year? Or will it make no difference to their decision? I need a mortgage of £110k but have a deposit of £45k and I earn 30k a year I’m a first time buyer. Can you advise me please
Many thanks
Sara (Debt Camel) says
You will find it almost impossible to get a mortgage with unpaid defaults. Pay them immediately – the longer they have been settled for, the more lender may be prepared to ignore them.
Ads says
Hi Sara
I have a default on my account from O2 of £565 that was the result of an ex partner not paying them after I left. The default date was July 2012 and it has been bought by Lowell, would settling this now improve my credit rating if I pay it off in a few months or would waiting for it to drop off my records in 2018 be better.
I have been hoping to get broadband but worried with a credit rating if 536 I’d get declined.
Sara (Debt Camel) says
As this article says, your credit score isn’t going to be completely better until the debt drops off. If you don’t start repaying it Lowell may go for a CCJ which will mess up your credit score for another 6 years. You could try offering a full & final settlement – see https://debtcamel.co.uk/debt-options/less-common/full-final/.
Ads says
Thank you for this information, very helpful :)
I just called them and made a final settlement of £300 they said it will come up as satisfied on my file.. Does this damage the improvement process? And what would you advise about trying to improve my score.
Sara (Debt Camel) says
See https://debtcamel.co.uk/settled-or-satisfied-credit/ which looks at the difference between satisfied and settled. As you have defaulted, this will always be marked as satisfied.
To improve your credit score you could consider getting a “poor credit card”, using it each month for something small and repaying it in full every month. But you need to be very careful of the traps with these, so that one doesnt end up making your situation worse! See https://debtcamel.co.uk/bad-credit-cards/.
John says
Hi there
I just found out two days ago that I have a defaulted account august 2015. It was an old joint account with my ex partner the amount was only £288. She ignored all correspondence from the bank and a debt collector agency took the debt. We went through a divorce and she made me aware of the account issue. So I paid it straight away in march 16. I have had an excellent score of 963 for around six months but got declined a loan this Wednesday gone, so I rang Experian and they added missing addresses and my score dropped to 590 overnight. Is this still going to stay on report for six years it’s highly unfair as I wasn’t aware and when I did I paid in full. It seems harsh for £288 pounds. I was looking at a joint mortgage with my partner this year I suppose my chances are now very slim?
Sara (Debt Camel) says
You should have resolved this joint account when you split up :(
Where you are now, you may as well complain that this is unfair because you were unaware of the debt. You need to produce evidence that you paid it immeidiately you becaome aware of it. Any evidence that shows the bank was aware of where you are living and therefore could have contacted you but didn’t may help. If the bank rejects your request to delete the default , then I suggest you take the case to the Financial Ombudsman.
I can’t say how likely this is to work.
You will find it much harder to get a mortgage with this on your record – it may not be impossible, as it is a small amount and it will soon have been repaid more than a year ago. Don’t apply direct to a high street bank, go through a broker.
John says
Thank you for your swift reply
I spoke with the bank Friday for a few hours and they are unwilling to remove the defaulted account from my records I also forgot to mention that during this period from sept 14-sept 15 my ex partner was unable to contact me as I had an injunction against her. So I’m going to contact the omsbudman for Hsbc and prove the following
When I left the marital home
When I started my new account
Prove address changes as I’m a soldier and move around
Show the court order of no contact from her
Show my Experian credit report which shown excellent/good for nearly a year when I started using them to prove I was totally unaware
Prove when I found out is when I paid is difficult however the only reason she told me was because we were in court four days later for final court hearing and that I can prove. I plan to have this sent Tuesday and I will let you know the outcome just in case anyone else is in the same situation.
Also is there a golden rule of when and how many points your score improves over the six years. And does the amount previously owed matter
Again many thanks
John
Sara (Debt Camel) says
Good luck!
There is no “golden rule” – lenders don’t even use Experian’s calculated scores, they all have their own algorithms, so each lenders will be different. For mortgages, some lenders will be happy to lender when a default date is over 3 years old AND it has been repaid for more than a year – always go to a broker, not direct to a bank. If you have a very good deposit and are borrowing a lot, you may be able to get a mortgage sooner than that.
David says
Hi Sara,
I have a defaulted account which is due to drop off on April 2017 (according to Check My File credit report), the amount left is 440 it was originally 600 odd. I decided to enter into a repayment plan last year paying of £20 a month so I was makin regular payments each month to slowly improve my credit score which it has done. My question is, when this account dropped of my credit report will I still have to keep up with the payments? Or if I stop the payments will it go into a new defaulted account on my report and bring my credit score down again as I’ve missed my payments? Thanks
Sara (Debt Camel) says
Hi David – I’ve answered this “do I have to keep paying an old debt” question here: https://debtcamel.co.uk/paying-old-debt/
Kamal says
Hi Sarah, I had a phone line 8 years a go .asked them to cancel when the contact is going to end and got a different suppler. .but old contacted ppl sending me letters saying I awe them £70 I wasnt. .but they spelt my 1st name wrong .so I ignored them ..how ever last year different company sending me letters but using the same wrong name I’ve ignored them too ..but I’ve checked my credit file and found out they put a default on my account last year under the same wrongly spelt my first name but my credit file has the correct 1st name …so my question is can I get this default removed as my 1st name is wrong ..2 . Can they put a default after 7 years of the insident? ?..it’s just 70 pounds and not my fault going to ruin my future. .pease advice .
Sara (Debt Camel) says
No you can’t get it deleted because of a minor spelling mistake.
The default date sounds too late, you can ask the creditor to correct this to one 7 years ago – this will cause the debt to disappear from your credit record, see https://debtcamel.co.uk/debt-default-date/.
BUT you do need to be sure this debt is “statute barred”, see https://debtcamel.co.uk/statute-barred-debt/, before you do this. I suggest you call National Debtline 0800 800 4000 and talk it through with them.
Kamal says
HI Sarah , Thanks for your quick reply. Thats very kind of you .. I dont think its “statute barred” as it was 2011 not 7 years (Just 5+ ) .I just found a letter sent from debt collection agency who bought the debt from 02 ( Latter dated 17 May 2016) saying they bought it from O2 and asked me to pay it .O2 also had my name wrong (1st name spelt wrong ) and also found out I never had a direct debit with them only paid to their account .(Is there any chance I can say It wasn’t me and I never opened the letters as my Name was not right , as they cannot prove it ??) .
Also I am guessing I have asked them to stop the service May 2011 (As I bought a new line April 2016 ) and they were still sending me letters asking to pay for about 4-5 months and dragged the bill to £68 ..And stopped contacting me …
Also They never had a record in my credit file either …..Just these ppl who bought it marked default from may 2016 …And my credit file they put my 1st name wrong again ….Do you think I can fight because of my wrongly spelt name .??.If not Can I ask them to mark the default in end of 2011 as thats when I stopped the contract and how can get them to do it ?? ..So at least my debt be over 5 years ….If I call National Debtline would they guide me ???….again thanks you so much for your help
Julie says
Hi Sara,
I have a nearly 6 year old debt of £841 that is due to drop off my credit report on the 28th of January.
Am I better to pay this now or wait for it to drop? Which would be better in terms of improving my score?
I have had no contact with the collections agency and ignored their calls.
Sara (Debt Camel) says
It will make no difference to your score if you pay it or ignore it UNLESS the debt collector starts court action, in which case a CCJ could be added. But if you lose the CCJ case if you then pay the CCJ in full it will not appear on your credit record.
I don’t know when you last made a payment to this debt. Read https://debtcamel.co.uk/statute-barred-debt/ and see when you think it may become stateute barred.
Julie says
Thanks sara,
According to my credit report the date of default is 28/1/2011 so I really am less than a week away from it dropping off.
My worry is if they try to take me to court during that week. I don’t think they have my current address, and I haven’t answered the phone to them or acknowledged the debt or made payments in that time.
I’m not really sure what to do
Sara (Debt Camel) says
The important thing for being taken to court is whether the debt is statute barred – not whether it is on your credit file. Read that link I gave and call National Debtline and talk it through with them.
Kevin says
Hi Sara,
Very informative website, 1 thing I’d like to ask is that I have 3 debts, 2 of which are in default for £3400 and £1700 respectively, another which is an ‘active’ debt of around £430…
It looks like I may be coming into a little bit of money, possibly around £1k and wondering which is best way to approach this to improve my credit score..do I pay off the active debt, or should I look to make a settlement offer for the smaller of the 2 Debts, I’m not sure which to prioritise
Any help is much appreciated
Thanks
Kevin
Sara (Debt Camel) says
how old are the default dates?
Kevin says
Both defaulted July 2012 so due to drop off my report summer of 2018.
Sara (Debt Camel) says
OK, they are going to be around for a while then. I suggest making a settlement offer on one of the old debts. This gets one out of the way, prevents the lender deciding to go for a CCJ (which seems to be happening more frequently, see https://debtcamel.co.uk/ccj-increase-2016/), and reduces your overall indetedness by more than repaying a non defaulted debt in full.
Donna says
Hi,
I have two ccj that are both nearly 6 yrs old. They are unpaid will they come off me credit score or just start again? I phone one credit scoring company that told me they would come off. I then phone a second company whom told me if they were unpaid they would stay on my credit score
Sara (Debt Camel) says
They will drop off your credit score – I don’t know who this second company is, but either they didn’t understand your question or they don’t know what they are talking about :)
BUT CCJs never become statute barred. If the creditor wants to try to enforce them after 6 years, they have to go back to court and ask permission – but it can happen.
Donna says
Thank you very much for your reply. Just one more question, if they did go back to the court would they write and inform me first
Sara (Debt Camel) says
yes, providing they have your address of course…
Naseem says
Hi, I have two outstanding default sums which have been issued recently. One is at £1500 for my barclaycard and the other at £500 for my HSBC card. I was careless and and stupid to not take better care of my credit score and make payments on time. However I am now trying to slowly turn things round and would like to know the best possible options to improve my credit score effectively, efficiently and as soon as possible. I understand that the default will be on my credit file for 6 years which will leave a dent in my credit score for some time. Will my credit score only start improving once the defaults have been paid off entirely or will they start improving as soon as I’ve started paying it off bit by bit? Just want to know the best options on what to do from this point to get things looking up again. Any help or advice would be appreciated! Thank you
Sara (Debt Camel) says
Starting to repay these won’t make a difference to your credit score BUT it will stop any worse damage from the creditor deciding to go for a CCJ. I suggest setting up a payment arrangement for a sensible amount – one that will repay the debts as soon as possible without leaving you unable to manage the rest of your finances. If you later want a mortgage say, it’s important that any defaults have been repaid more than a year before.
Naseem says
Okay that makes a bit more sense, thank you. I will be setting a payment arrangement today.
If I were to pay off the defaults say within a year, how long would it be until I was offered credit cards again? And how long would it take before I could apply for a mortgage? Also, what would be the best way to improve my credit score quickly and effectively once the default has been paid? Sorry, I know I’m asking a lot of questions but I just want a clear understanding of everything. Thank you
Sara (Debt Camel) says
rather a lot of large questions! How about I write an article looking at this area? Look out for it sometime in the next few weeks – there is a Subscribe box at the bottom of the page if you want to get an email everytime a new post comes out.
Vikki says
Hi Sara,
I have a bit of a unique problem. I have a debt from 14years ago of £700. (I was mis-sold an insurance and all of this is bank charges from that) My credit file is now great and I am in the process of applying for a mortgage through a broker and have a large (33% deposit). However he has started the application with the exact bank I owe this money to, I am now unsure what to do. I have a mortgage in principal and they have said they hold a different address for me and have sent me a letter asking me to confirm my address, will they still have record of this debt? It was on a bank account. I told him I don’t wish to precede and he said no-one else will lend to me as I receive tax credits and my wage is not paid into my account. But I’d rather stop now for 3months and have my wage paid into my account and try with someone else. And he said if they still held this info, I would have been declined immediately. If I were to pay this 700 debt, would it then be added to my credit report again as a paid defaulted account which would obviously knock my credit score?
Any help would be great, thankyou.
Sara (Debt Camel) says
What an unhelpful broker.
This debt is now not on your credit file. It doesn’t matter if you settle it now in full or partially, it will never return.
It also so old it will be statute barred, so there is no reason to pay this.
But this bank may not give you a mortgage. I can’t guess if they are likely to see from their records that you never paid this. It would be sensible to apply to a different lender.
Even if you pay this debt, if this lender can see it on your past records they may still not lend as it would only have been settled recently.
It would seem to me to be unlikely that there us only one lender that would consider you. Your suggestion to wait three months and get your wages paid into your bank account sounds good.
With an excellent deposit and a clean credit record they may be other non high street lenders that would offer you a mortgage at a good rate so talking to a different broker may help.
Vikki says
Thankyou so much for your advice, it was exactly what I needed! I too thought the broker was unhelpful, so shall ring round for a new one on Monday. Thankyou so much for this website, it’s been invaluable to me.
Richard says
Hi Sara,
Hope you can provide some advice.
I had a mortgage shortfall debt which defaulted in Dec 2010 so dropped of my credit file in Dec 2016 (ex went bankrupt and allowed house repossession which I didnt know)
This did drop of both equifax and call credit.
January was clear.
Today I find the same debt has been relisted as active from January with no default and 6 months arrears.
Obviously this is a surprise and I didnt think an account could be relisted after 6 years default, and certainly coulnt be made active again.
I have had no contact with the lender or acknowledged anything.
Thanks for any help.
Sara (Debt Camel) says
It shouldn’t be “re-listed”. Who is the lender?
Richard says
Natwest.
I dont see how they can suddenly relist itt like a new debt qhen it has clearly been in default over six years.
Sara (Debt Camel) says
I’m sorry, I have just seen your reply. You may already have taken some action about this of course.
No the lender can’t relist this debt. If you contact NatWest you can ask them to remove the debt from your credit record. but should you do this?
I don’t know if they have ever tried to contact you to ask you to repay the shortfall. If they haven’t you should be OK, as Natwest belong to the Council of Mortgage Lenders, see When does the Time Limit Start Running section in this National Debtline factsheet https://www.nationaldebtline.org/EW/factsheets/Pages/mortgage-shortfalls/mortgage-debt.aspx.
I suggest you should talk to National Debtline about this – 0808 808 4000 – before you contact NatWest to ask them to amend your credit record.
Matt says
Hi,
Just a question regarding 2 items which have gone onto my account from the Lowell group – 1 negative saying an account in default/repossession and 1 negative saying an account in serious arrears.
I noticed these appear on my score in Nov 2016 and then got a letter from the Lowell group saying we have purchased your debt and you owe us this.
The debt is from an old store card which I believed was paid off as I had no correspondence from the company or anything saying my account was in debt until I got this letter from Lowell. The account was paid off but should it have been recorded as a default without first notifying me and should it be from Nov 2016 as the last time I used the store card was over 2 years ago.
Sara (Debt Camel) says
I suggest you tell them you do not acknowledge the debt as the account was cleared. Ask them for a statement of account. When you have that, check https://debtcamel.co.uk/debt-default-date/ to see what you think the default date should be.
Louise says
Hi
I have a defaulted Vodafone account from 2012 as I owe them around £250.00. I believed this wasn’t going to be defaulted but after signing up to Experian it is there. I have spoke with Vodafone who wont remove the default but have said they will mark it as ‘settled’ if I pay the default off in full. I know this will drop off in 2018 when my 6 years is up and I am still wanting to pay this as I don’t want to start getting letters about debt etc. again.
I know the default will show as settled once paid off but after the 6 years does it drop off the account like it was never there? Or will there always be a trace of it when I am applying for a mortgage etc. I just need a little advise as I don’t know where I stand.
Thanks!
Sara (Debt Camel) says
In 2018 it will disappear without trace. No mortgage lender will ever find out about it.
Melissa says
Hello,
My debt had been sold to another company, long story short I’ve paid that debt in full however the company who sold the debt have continued to keep my account active and it shows I owe nearly £700. I’ve tried to call and close my account they told me that I don’t owe them any money but my account is “archived” and will just “sit” there? Surely if I don’t owe them anything and I have paid the remaining balance to the company the debt was sold to,I should be able to close the account? And surely they can’t just leave the amount owing on my account? Please help they are sending me round in circles I’m not sure on my rights here. Thank you
Sara (Debt Camel) says
You should put in a complaint in writing to the original creditor where the debt is still showing. say that the balance owing is zero and it is innacurate for them to show a blalance still owing. Say you will take the complaint to the Financial Ombudsman if they don’t correct your credit file.
Kirsty says
My default date on credit card was 9/02/2017 but it is still on my credit report. When will this be gone? The debt was passed over to a debt recovery that I have been been paying but it only shows payments up until 2011 when it was deafaulted
Sara (Debt Camel) says
what is the default date on your credit record? What credit record report are you looking at?
Kirsty Copland says
It’s on Equifax default date 9/02/2011 so it’s been six years but still showing on my credit history
Sara (Debt Camel) says
Are you looking at something like Clear Score? They only run a new report for you every 30 days… the debt may already have gone but a new report hasn’t yet be run.
Anamaria sebesi says
Hi
My name is Ana and I’m in a similar situation at the time being.
I have just gone through a credit check due to a mortgage application when I have been notified of a default registered agains me, by a telephone company.
I was soon to find out that the default was for the sum of £102 held by O2 since July 2016.
As soon as I found out, I have called them and made the full payment.
Dealing with their customer services, wasn’t easy. I have made countless telephone calls in order to find out what really happened. I was never in a bad money situation to be avoiding any payments.
What happened was :
I have contacted O2 to cancel my contract a few months earlier than the official termination date.
I have called them on the 11/04 and also 19/4 to enquire in regards to the cancellation process and pay any outstanding payment I was due in order to terminate my contract immediately. I was in the process of moving out of Uk.
On the very same day ,during the telephone conversation, 02 charged me and I have paid in full £165 in order to cancel my contract. As far as I was concerned this was all done and dusted, my contract was terminated. I have not been notified of any outstanding amounts or future charges.
2 months down the line, 16/06, O2 have tried to take a DD payment of £102 which they claim to be the termination fee despite me believeing this has been satisfied 19/04/16. Becouse I was no longer using the account, the balance I had at the time was insufficient to cover the DD, therefore payment bounced back.
Now, I have checked my credit score and it is very low, rated a 1 out of 5.
I have tried to get confirmation from O2 proving that this was their omission. In my opinion this whole situation could have been easily avoided ,unfortunately I will have to pay the consequences now for their fault.
The default has now been settled, but any chances of getting a property in the near future are now very low.
Is there any way I could improve my credit score ASAP? Any advice would be much appreciated re my situation
Many thanks
Sara (Debt Camel) says
I suggest a complaint to O2 is in order. They should have notified you there was an outstanding amount. They should still have the telephone record of your April contacts – ask 02 to look at those as they will show you were not informed there would be a termination fee.
Anamaria sebesi says
I’ve escalated this issue with the Co complaints department (72hr SLA) but I’m not holding my breath. Thinking about adding a notice of correction on my credit report, however I’m concerned this might do more harm than good.
Should I only resort to a NOC if all other options are exhausted ? Since the default is currently marked as ‘satisfied’ I’m trying to understand if adding a NOC will just make the whole process more tedious for my mortgage underwriter.
Many thanks
Sara (Debt Camel) says
I am not convinced mortgage lenders pay any atention to a Notice of Correction, but I can’t see how it can do any harm.
Natasha Beasley says
Hello Sara
Thank you for your informative article! I have a question if you would be able to answer it;
I recently moved (This Monday), and during my address round-up i called Experian to find out why i had been rejected twice for a new bank account with a score of early 900s.
I found out i had a defaulted account, it was with Orange before they became EE and at an address i left very suddenly due to a bad relationship so did not receive any paperwork.
I did have the address on my credit report but it turns out it was named wrong (house number xx instead of Flat xx). Also since orange technically doesn’t exist anymore, EE never chased me up on it since then!
I phoned EE up instantly and was able to pay it all off, explaining that i was only made aware maybe a few hours ago, it was only £18!
But it has caused my credit score to drop from early 900s into the mid 500s, now that it is payed off will my credit score be restored?
If not, is there anything i can do to explain this situation to the bank i want to open an account with?
Best regards
Natasha
Sara (Debt Camel) says
How old is the default on your credit record?
Natasha Beasley says
Hello Sara
Experian doesn’t show me any dates, but a very confusing call to EE say it defaulted around September 2015 – a much more recent contract than I thought. I have asked for a complete record of what happened and they said i should get an email with it within 24 hours.
I think a big issue has come because when Orange became EE no bills went over or showed on online banking or any other means to see my bills, so i have lived without knowing about this defaulted account since then.
Sara (Debt Camel) says
Are you looking at your detailed Experian record? If you are there should be a record for this debt, otherwise it couldn’t have caused your credit score to drop. See https://debtcamel.co.uk/best-way-to-check-credit-score/ for how to look at your detailed credit records.
Natasha Beasley says
Hello Sara
I use Experian’s Credit Expert. It didn’t show a date before but now when I highlight it it says ‘Default date: 24/01/2016’. I’m still a little angry that this happened, I was never chased for any debt and the Orange to EE switch hid it.
Pamela says
Hi I really need help. I have an old shop direct account off £2961. Which was opened in 2005 and I defaulted 2008, which I made payments off £30 month. Iv made no pay,mets since 2012 It was passed to lowells who closed the account 3 years ago due to no signed credit agreement. Iv looked on Experian and the default date is 26/12/2013 and the default amount is £1984. Which I m confused about. I havnt heard anything from anyone since 2013 , but worry myself sick over this . I was wanting to know , I was going to ask my parents to lend me some money. But how much would I offer I.e which amount do I wrk out percentage on ? Or do I just sit tight and do nothing? Please help
Sara (Debt Camel) says
There is no reason to offer them any money. If they couldn’t find the CCA agreement 3 years ago, the chance of it emerging now for a 2005 debt is VERY small. The default will disappear from your file in December 2019. Paying it now will not make it disappear sooner.
But the default date is clearly wrong … you can ask for it to be backdated to 2008/9 in which case it will disappear immediately. See https://debtcamel.co.uk/debt-default-date/.
Pam says
I have looked through all the paper work last night I have default notices, letter about contacting them immediately about account been in areears and payment arrangement letters. But I don’t have a copy off my credit file back in 2008, I only have one from recently. What evidence do I need to ask them to change it back to 2008 .
also will contacting them alert them to try and get a CCJ against me?
Sara (Debt Camel) says
If you have a default notice from the original creditor that would be great evidence.
They can’t get a CCJ against you unless they can produce the CA agreement for the debt. This is a really old debt – 2005 – if they couldn’t locate the paperwork three years ago, the chance of them being able to find it now is VERY small. It is a risk though – if the default isn’t causing you any problems you may prefer to not bother and it will drop off in 2019.
Chris says
Hi Sara,
Great article and I’d appreciate your advice on a matter if possible.
I cancelled my contract with Orange in February 2013 when I moved abroad for a few years. This was outside of the contract period and agreed to by Orange.
In November/December 2013 I returned back to the UK on holiday for the first time to a number of letters chasing me for payment of bills and the debt being passed to a collection agency. I contacted Orange immediately to ask why these were being sent and it became clear that they had not cancelled my contract. I had nothing in writing to show that I had contacted them in February and was only back for a week so I agreed to settle the outstanding amount (because I didn’t have the time in the country to argue with them) over a period of circa. 6 months and Orange waived any fees attributed to the situation.
Fast forward to present day, I am now back in the UK and trying to get a mortgage for a first time buy and I have a note of ‘Default’ on my credit report even though this debt is Satisfied and the balance showing is zero. This – along with not earning in the UK for the past 4 years – is dragging my credit score right down. I have contacted EE and they are adamant that nothing can be changed but I managed to get through to the Orange complaints department and they agreed that the amount is Satisfied but they cannot send me an email to confirm that is the case.
Is there anything you would recommend I try and do to get this Default changed to Satisfied? At the moment I am facing the very real possibility of not being able to get a mortgage because of this one blemish on my record.
Sara (Debt Camel) says
So it was marked as settled in 2013/2014 some time? From then on no more defaults should have been added. With one default, over 3 years old and settled more than a year ago, you should be able to get a mortgage if you go through a competant broker.
I suspect the problem is that you haven’t been in your job long and you don’t have any new credit showing on your credit record. Unless you have a very large deposit, you may need to rent for 6 months and then look for a mortgage.
Chris says
It’s showing as ‘last updated March 2015’ so almost 2 years ago now and there is nothing outstanding.
I have a 10% deposit (not large) and a mortgage broker who seems to be competent and I’m using a credit card and paying it off in full each month. Beyond that is it a matter of being patient now?
Sara (Debt Camel) says
I think you should discuss this in detail with your broker. He should be able to say when you are likely to be able to get a mortgage. The default won’t be helping but I doubt it is the main culprit.
Claire Dillon-Shallard says
I had an IVA back in 2011 and repaid it a year early in April 2016. My defaults are to 13 Jun 2011. Does this mean I will be able to get a 95% mortgage at the start of July? Any help really appreciated. I have a clear bank acct for the last 6 yrs, mobile phone contract and Vanquis credit card all paid each month to improve my credit. Experian says 707 poor.
Sara (Debt Camel) says
I assume you have received a certificate of completion. By July 2017 your credit record shouldn’t be showing any trace of the IVA itself, nor of the debts in it. Your credit score should increase a lot – come back and say how much!
Whether you will get a 95% mortgage though depends not just on your credit score but also on your affordability calculations – see https://debtcamel.co.uk/mortgage-with-debts/. You need to make sure you apply for a mortgage to a lender that you didn’t have an IVA debt with – because they can still see those on their internal systems. And it’s a good idea to go through a broker as some high street lender will always reject you because of the IVA.
T says
I have 2 defaults on my credit report, one to Vodafone for £950 and one to lloyds for £5000.
The Vodafone one is 3 years old and I’ve just settled the balance in full (full settlement not partial) and the lloyds one drops off on 7th April 2017 as it’ll be 6 years old.
I have no other arrears etc, what impact do you think the lloyds default dropping off and the Vodafone being settled in full will have on my credit score?
Sara (Debt Camel) says
One default dropping off should help your score. The effect of the other one will reduce as it gets older. Paying it will prevent problems with a CCJ and will make some lenders more likely to approve a credit application. Do you have other credit you are repying on time each month?
T says
Yeah lots of others being paid on time
Daniel says
Hi Sara,
My partner and I are applying for a mortgage this week. I am worried that a default for £5 will affect this. I have spoken to the phone company who have acknowledged that this was a fault of their own, and have wiped the outstanding balance and have satisfied the default. However I’ve asked for this to be removed, they said it’ll take 28 days for this to happen therefore I have asked for an email to confirm this for evidence , However this conversation was over the phone and they, even after repeated requests, have not sent me an email to confirm that the outstanding balance and default were due to admin errors (they didn’t close my account when asked) and will be removed.
Can you please advice one what I should do? And what the likelihood of our mortgage application being accepted? We have no debts, and a great income.
Many thanks,
Daniel
Sara (Debt Camel) says
This is why I encourage everyone to check their credit records months before a mortgage application… I suggest you put in a written complaint to the phone company that they have not sent you the written confimration you have asked for. Also add a notice of correction to the credit reference agencies – however they take time to be added too, see http://www.experian.co.uk/consumer/faq/AR5.html.
If you are going through a broker, he should be able to advise what the lender you are applying to is likely to do. Obviously declining a mortgage for a £5 default is nonsense, but some lenders take a “computer sez no” approach to things :(
Daniel says
Thank you for your reply.
We checked our credit reports in November before we started looking, and we both had excellent scores. However the default was placed in December and we had no correspondence from the company prior to this.
My experian report reads excellent, 989 points however my report with call credit-noodle, reads 511 and equifax 366. I’ve asked for a notice of correction from Both companies however they have both advised not to do so until 28days have passed if the phone company have not cleared my report. however I’ve asked them to do so anyways.
We will speak to an advisor tomorrow and hopefully, even if they decline over £5, we can speak to mortgage company and explain the situation and fingers crossed they accept this.
Zara says
I have a default on my Experian report for Tesco mobile which comes off in 2019, my credit score is really poor at the moment 183, I’m hoping once my default comes off, I would like to apply for a mortgage, will I still need to pay my outstanding balance for the default once it comes off? Also I have an outstanding balance for another mobile which started of as missed payments due to me becoming redundant the balance which needs paying is £554 once I have paid this will my credit score increase? I have had other late payments but my other accounts are all upto date now I hope once I keep upto my payments my credit score increases..
Sara (Debt Camel) says
In the next two years a debt collector could decide to go for a CCJ for this debt, so you can’t rely on this just disappearing. You could save up and offer a full & final settlement on it? Your credit score isn’t going to go up when you pay off the account with missed payments whilst you have an unpaid default on your file.
Joanne Marie Hiney says
Hi i became a student a couple of years ago and wasnt able to pay the minimum payment for natwest loan and post office credit card. The accounts defaulted and are now being managed by a company called moorcroft who have agreed to accept token payment of £10 per month. However this still shows up as a default on my credit report every month despite mantaining my £10 payments. Is this correct? as they have agreed to accept £10 until my situation changes its seems unfair that it still shows as a default, especially as i have now being paying these £10 payments for 2 years so i now have two years worth of continuous monthly defaults on 2 seperate accounts since 2015. Is there anything i can do as my situation is not going to change for another 2 years.
thanks
Sara (Debt Camel) says
This is normal, it always happens when a default has been added. These monthly defaults don’t make your credit score any worse.
shakila rashid says
Hi
I currently have a CCJ through not being able to pay nursery fees. The balance will be paid in full by April 2017. I was on a repayment plan for 12 months. I wanted to ask when this happened due to some unforseen circumstances i was sectioned under the mental health act, now I am alot better and back in charge of my finances. Is there anyway I can eithet contact the creditor or court and get the CCJ removed as my circumstances are different now?
Please can you advice.
Thanks
S
Sara (Debt Camel) says
Your credit record is a history of what happened rather than a judgment as to whether it was your fault. Major mental health problems are always a diffciult area but it’s not clear that you have many options here. You could talk the details through with National Debtline 0808 808 4000 to see what they think.
Sam says
Hi Everyone,
I have a default on my Experian report for a NatWest credit card back in 2013. The debt was passed onto a debt collection company and I paid the full balance off with them in 2014.
The default is still showing on my account but is there way to get this marked a settled?
If so, who do I need to contact the debt company or NatWest?
Thanks
Sara (Debt Camel) says
You should contact whoever is showing the debt as unsettled on your credit report – if this is NatWest, then Wstcot were just acting as their agent. if it is Westcot, then natWest sold the debt to them.
Glasgow Chris says
Firstly, i want to thank you for your site and the advice given. I stumbled across this site about a year ago and i am so glad i did. My credit file is / was horrendous mainly due to Pay Day loans. Since reading your advice on going after the Payday lenders for a return i have been successful in overturning the following – Wonga, Payday UK and QuickQuid. In all cases they knocked me back with the standard response however i followed on to the Ombudsman and an adjudicator who agreed and eventually negotiated returns and most importantly the debts removed from my credit file. I do however have one remaining problem. I have a default for a credit card which was sold to a debt company in 2014 and they seem to have applied the default from that date which means it will not drop off until 2020. Can i dispute this on the ground i never received a notice of default (I had moved) and offer to pay the balance in full providing they wipe this from my file, would this work? And to anyone just beginning to read your site, i advise you to try and learn from the advice on here, i am eternally grateful that for the first time in years my credit file is almost repaired!
Sara (Debt Camel) says
No, sorry, you should have told the creditor you had moved.
But the debt collector will probably accept a full and final settlement, see https://debtcamel.co.uk/debt-options/less-common/full-final/.
jayne Thompson says
Hi
Looking for some advice. I had a number of defaults (at least 6) from around 2008-20011 due to my now ex husband! I’ve worked hard over the past 5 years on clearing them and have this month successfully done so. On checking my experien report I have 2 settled defaults left in my file that will drop off in July & August 2017. I currently have a mobile phone contract & next account plus 1 credit card with a small amount owing. My credit file is still showing as poor with a score of 711 & today I have been refused a balance transfer credit card with Tesco, how long will my credit file take to improve and what can I do to help? Me & my new partner would like to apply for a mortgage late 2017/early 2018?
Sara (Debt Camel) says
Your credit record should be looking a lot better in September after the defaults go. Don’t make ANY more credit applications, each rejection leaves a negative mark.
You should be aiming to pay down the Next credit card account as much as possible, prefereably to zero. And keep the other credit card balance low – again zero would be perfect, so that you can use it for someting small each month and then repay it in full.
Yuliya says
Hi Sara
I have started reading your blog a while ago and finally started to work towards clearing my name. I have few debts left and have offered 40% repayment to one of them which was accepted. The other one however was rejected and instead I have to pay 80% of it in the next 26 days to NatWest for overdraft fees. My biggest concern is my highest debt taken for my partner who failed to pay towards it in 2009. I entered into debt management plan the same year and soon was unable to make regular payments as I lost my job and had my first child then. I have just checked my credit score and it show as fair and none of the debtors I owe money to are not showing on my credit file. I have to add that in 2014 I had asked Experian for statutory credit file and they are not there either. Is is possible that they were marked in default and are no longer on my file per the 6 year rule of them being erased. I need to know as tomorrow my biggest creditors will call me to give me a set period of repaying 60% of my debt as they accepted my offer. However I cannon see them on my credit reports at all. What should I do, how do I find out if they are gone for good and should I write them Prove it letter
Sara (Debt Camel) says
“Is is possible that they were marked in default and are no longer on my file per the 6 year rule of them being erased” yes, that may well be it. It is also possible they are being reported to Equifax or Call credit and not Experian – it’s good to check all three CRAs, see https://debtcamel.co.uk/best-way-to-check-credit-score/, but the age of your debts means the default being more than 6 years ago is – at a guess – more likely.
The fact that a debt isn’t on your credit file doesn’t mean it isn’t a real debt any more though, see https://debtcamel.co.uk/debt-not-on-my-credit-file/. But you seem to be talking about debt you haven’t paid anything too for a over 6 years – in that case they may be statute barred, see https://debtcamel.co.uk/statute-barred-debt/.
Sorry to send you so many links. old debts can be confusing – I think it might help if you talk to National Debtline on 0808 808 4000 as they can help you look at each debt in turn.
Sending a Prove It letter isn’t appropriate for old debts, National debtline can talk you through your options, which may be different for each debt.
michelle says
Hi there i had a contract with o2 over 8 years ago. It wasnt a phone just a contract sim card which got out of hand and i didnt pay. However i checked my credit score and it has been recorded as may 2016!!! How do i make it go away??
Sara (Debt Camel) says
Hi Michelle, this old debt is likely to be statute barred, see https://debtcamel.co.uk/statute-barred-debt/. You may want to confirm this with National Debtline 0808 808 4000 before you start writing letters to the creditors about the debt.
To get the default date corrected – in this case to something over 6 years ago so the debt drops off your credit record, see https://debtcamel.co.uk/debt-default-date/
Thrifty Lesley says
I thought that paying off a defaulted loan kept it on your credit record and the six years didn’t start until you had paid it off. This isn’t right then? Asking for a relative who is paying off debt from a previous marriage
Sara (Debt Camel) says
No, that’s wrong. A defaulted loan disappears 6 years after the default date. But the debt still legally exists and has to be repaid after this.
Robert James says
Hi Sara,
This is a great website, thanks.
I have a default dated 29th July 2011 for a personal loan. I argued that I don’t owe the debt – I even have a letter from their organisation that I don’t (!) but nonetheless the default stood. I won’t bore you with the details, but it’s approximately £1k.
As I didn’t need credit, I thought I’d just leave it as it wasn’t worth wasting anymore time on. Upon recently checking my credit report, I noticed this debt shows as two different defaults on different dates (the other being a month later) and in the name of the people that bought the debt.
Later this year, I need to apply for a new mortgage. My credit score is currently 756. I have a couple of questions I would really appreciate answering:
– Seeing as the debt is almost about to expire, after the six years will the debt be statute barred (if they don’t attempt a late CCJ)? I have read your page about this but it is unclear if it would be because the debt collectors write to me every couple of months – the article states that there must have been no communication from either side. I have never acknowledged or paid a penny since the default date.
– Would my credit score improve immediately after the default falls off? If so, how many extra points would you think I may ‘gain’?
– I have a credit card with £5k owed but £6k limit. I always thought it was better to have a credit card and pay it than not use one at all. Upon digging, I have read this is not the case. I have the money to pay this off immediately, what would you advise? If it has been detrimental to have this debt, how long would the card need to have been paid off to improve my rating?
Many thanks.
Sara (Debt Camel) says
When was the loan taken out? If you are disputing you owe it, did you ever make a payment to it?
Yes your credit score should improve immediately if it drops off and no CCJ arrives. I would hope with that letter you say you have you could defend a case if they do start a claim against you. The Experian guideline suggests that you might gain 200 points… perhaps you could come back and say what happenes?
Your credit rating will improve a bit if you pay off the credit card. It is an urban myth that your score is higher if you have a balance, actually you get a boost if you owe zero. The best thing is to pay it off and then use the credit card each month for something small – say a tank of petrol. Set the card up to automatically collect the full balance by direct debit. I would do this now if you expect to apply for a new mortgage later in the year. Ideally you want your finances to have been as simple as possible for at least three preferably six months before a mortgage application as lender will ask to see your back bank statements.
Robert James says
Thank you for such a quick response.
It was a car loan taken out in July 2006. Five year term approx £200 per month. I never missed a payment but they cancelled my direct debit in September 2010 in error. I reinstated it in December and paid the balance owing and they sent me a compensation cheque for £200. They then cancelled it again in January so I reinstated it in April and paid the balance owing. Another £200 cheque in compensation! When they cancelled it again in June I had had enough so paid the balance owing, plus the final two months in advance. That last balance was £1000. They acknowledged receipt, confirmed the account was cleared and sent yet another cheque for £200 in compensation!!
Six moths later, I got a letter saying they had never taken the final payment! During this time I had split with my then partner whose card it was paid off on so had no proof – other than their letter of receipt of course.
I told them I have no qualms disputing it in court, but they never did so I left it. They have since sold it to another company who I repeatedly get letters off but have just ignored it.
This is why I am hoping, after July this year I can tell them it’s statute barred, go away, and my credit rating should be back to where I need it. I would have dealt with this a long time ago if I had needed to but got fed up with banging my head against a brick wall!
Thanks again.
Sara (Debt Camel) says
Good grief. What a tale of errors by the original creditor.
It doesn’t leave me feeling very confident you arne’t going to get court papers from the debt collector that now owns it though… It sounds as though you have never communicated with them at all so it looks to them a lot like someone who is trying to ignore a debt, rather than someone who has a good case for disputing the debt. To point out the obvious, you do not want to be fighting this though the court if you want to make a mortgage application later this year.
I’m not suggesting you pay it! But I think you should seriously consider replying to the next letter you get. Talk to National Debtline 0808 808 4000 about what you should say.
ubaid syed says
Hi
I must say very good service, well done.
I have a question, I went into a debt management plan in Dec 2008 resulting in a number of defaults on my credit file. A year ago I came out of DMP and started paying directly to creditors/debt collection companies. Also in last 6 months I ve partially settled 4 accounts. Most defaults are off my file only 2 still there. I m still owe 17k which I m paying to various debt collection companies such as Moorcroft etc. Question is when defaults come off my account and I m still paying to the likes of Moorcroft Debt Recovery, will this have negative impact on my file or it doesnt matter as these repayments are for accounts which are not showing on my credit file? Thanks
Sara (Debt Camel) says
When the defaults disappear, the whole record for that debt goes and it will not have any impact on your credit score.
ubaid syed says
Thanks Sara. Even though most of my defaults have dropped off but still I owe money and I m making monthly payments towards them. These payments are to debt collection (recovery) companies such as Moorcroft and are appearing in my bank statements. Is this a problem 1) in improving my credit file and 2) securing e.g., a mortgage? Looking forward to your reply. Thanks
Sara (Debt Camel) says
1) not a problem for your credit file
2) a very big problem for getting a mortgage – see https://debtcamel.co.uk/dmp-mortgage/
Rory MaC says
Hi Sara,
Just found your website and I wanted to thank you for sharing such valuable information. For a few years I ‘ran away’ from my debt, left home and forgot about it. Various accounts with defaults mostly from 2013. I’m now in a position to start clearing some of the debts. I have this month settled two accounts. With the default date being 2013 would these drop off my credit report in 2019? Or would they remain on my file 6 years after my settlement date which would be 2023
Sara (Debt Camel) says
6 years from the default date :)
Don’t forget you can probably settle some of these debts with a full & final settlement, see https://debtcamel.co.uk/debt-options/less-common/full-final/
Charles says
Hi, I have three defaults on my credit report from two years ago. I have been hiding from these until now and have made agreements to pay off the amounts monthly. I have spoken to one company who said I could ask to have the default taken off the report. Is it worth doing this? will taking the default away make the debt last longer on my credit report?
Sara (Debt Camel) says
If the default remains, the record will disappear from your credit record 6 years after the default date.
If it is deleted, the record which will still be showing arrears will remain for 6 years from the date you settle the account.
So although a default is “worse” for your credit score, it will be there for a shorter period. How long do you think it will take to repay the defaults? If it is several years, it’s probably better to keep the defaults, but it’s not an easy decision.
james noble says
Hi, i have a debt logged with experien and equifax on 30th june 2011. Will this deop off my credit file on 30th june 2017 and will my credit score improve a lot?? Thanks
Sara (Debt Camel) says
Yes your score will improve. Are these your only defaults? Do you have other problems such as CCJs or missed payments?
james noble says
Hi looking on experian and equifax no that is the only thing but on call credit there is a gas bill from a really old address i didnt know had so im going to dispute that. It doesnt show on experien or equifax.
Can i also ask i had a house repossessed 8 years ago but isnt on my credit report and hasnt been fully repayed yet by my ex. Once the default for the above has gone would it be likely i would or wouldnt get another mortgage?? Thanks
Sara (Debt Camel) says
Is your ex repaying this shortfall?
james noble says
I dont think so
Sara (Debt Camel) says
Sorry I didn’t see your reply, so this is late.
Shortfalls after mortgage repossessions can be tricky. I suggest you talk to National Debtline 0808 808 4000 about this debt and whether the lender is likely to try to enforce it.
Many lenders ask in a mortgage application if you have ever had a house repossessed. I suggest you go through a broker when you need a mortgage and tell him about this.
Nick says
Hi,
I want to apply for a mortgage next year but have a CCJ on my credit file. I understand lenders won’t go near me if this is on my credit file. What what would be the best way to go about this? I am happy to pay this but don’t have any details of the collection company who own this. The CCJ is dated from 2015. Any help would be appreciated. Thanks.
Sara (Debt Camel) says
Paying it wont delete it from your credit record. Do you agree you owe the money?
Nick says
I know I had a debt but it was never the amount shown on the CCJ. I understand charges will be put on top but didn’t think it would go up to the amount owed. I am happy to pay it as we can’t move forward to buying our first home but where do I go to pay it / dispute it? What would be the best option for me to get a better credit rating?
Sara (Debt Camel) says
I suggest you contact the last known creditor. But if you don’t have grounds to dispute it it’s going to be on your credit record for 6 years.
leah says
Hi, I have 2 debts, which I am paying off a small amount each month. Both of these debts are over 6 years old, so even though I am still in debt am I right in thinking my credit score wont show it and will be improved because they are over 6 years old??
Sara (Debt Camel) says
It depends if the debts have been marked as defaulted or not. Why not check and see? Checking doesn’t harm your credit score! See https://debtcamel.co.uk/best-way-to-check-credit-score/.
Nammy says
I have a water bill which was given to debt collector but was called back from them after I explained it was lack of communication due to a leak I had to my knowledge everything was sorted out the person I spoke to at the water board reassured me I wasn’t in default I explained I was going for a mortgage shortly and she said no there is no default
I got a letter also that the debt was back in the hands of the water company
I made arrangements to pay bill which I am still doing
But recently I just received my new water bill and in small print there was a message I was in default I rang them and still after 3 weeks waiting why has this been done because now I’m going for a mortgage and it’s on my experia report
Will they be able to take this off or is there anything I can do to prove that it’s another person who didn’t update records and caused this please help
Sara (Debt Camel) says
I think you need to contact the Water Company again and put in a formal complaint if you don’t get a satisfactory answer.
MissMaynard says
Hi Debt Camel,
(Great site by the way) I was wondering if you could help me with something that really negatively impacting my credit score. I moved into my first property in Aug 2014 and informed my local water company of this they sent me my first quarterly bill in Dec. I was on ESA on no income with no support or other means to furnish the property (I didnt even have a fridge) and so I ignored the bill until May when things settled down and I had support I rang and made some arrangement to pay the bill paying what I could afford and agreeing to have the payments and arrears taken automatically out of my benefit. This took a few months to be put in place so in the meantime I made the payments at the post office using a payment card. To cut a long story short I looked at my credit file a few months later and saw that after the payment system was put in place (from my benefits) the water company still marked on my credit report that payments were late and had put a default on my report too. I complained about this as how can a payment be late and default if the payments were coming automatically from my ESA. Was I still in arrears? yes, but did I pay late/default? no. So I complained and they subsequently removed the default from my account but the late notices are still there. Is that right? Should they be marking payments as late when there was an automatic payment arrangement in place not only paying off part of the arrears but towards my current usage too? If not how do I go about getting it changed?
Sara (Debt Camel) says
If you got the bill in December and didn’t start making any payments until May, then I am afraid that your payments were late. I doubt you can get this changed. You might be interested in this article on water bills https://debtcamel.co.uk/cant-pay-water-bill/.
Chantelle says
We got into debt with npower and are paying via electric meter, the debt is from 2008-2010 we are still paying it via the metre but its badly affecting my credit score on experian it shows as delinquency and a negative factor for the past 18 months even though the payments are made and the amounts are going down on the report, I complained to npower they said that’s how their system reports it. I’m now going to pay it off asap but if a morgage company saw that would I still b rejected?
Sara (Debt Camel) says
All you can do is pay it off as soon as possible. Whilst you still owe the money you are in a rrears on this bill and that is how npower are reporting it. Some mortgage lenders won’t mind once the debt has been repaid for a while and you haven’t had any further problems for say a year. Talk to a mortgage broker about this, don’t apply directly to a high street lender or you may pick one that rejects you.
Asif says
I have defaulted debts which are over 6 years old and don’t appear on my credit score. If I partially settled them now would that information about the debts being partially settled appear on my current credit file??
Sara (Debt Camel) says
No it won’t, see https://debtcamel.co.uk/ff-credit-record/ for details.
Anna says
In 2011 I cancelled a direct debit for a mobile phone contract, heard nothing from the company till September 2013 when they advised that the account had been closed in January 2012. I have written to them on numerous occasions and their communication is spaced out every 2 years, the last communication from them was in January 2015. A default has been registered on my credit file and as it is now 6 years later and no resolution has been received, will this be classed as statute barred and can it be removed from the credit file?
Thank you
Sara (Debt Camel) says
Just because a debt is statute barred, that is not a reason for it to be removed from a credit record. You could argue the default date is wrong, but it is hard to do that without “resetting the clock” for a debt which may be statute barred.
I can’t tell if the debt may be statute barred – I suggest you talk to National Debtline 0808 808 4000 about this and about what your options are.
Amy says
Hi I have a £12000 loan that has been in a payment arrangement for years and payment history shows as 666666666666 on my credit report. I am about to pay this off in full as I have come into some money. Will this improve my credit report straight away from being very poor or will I have to wait 6 years? I have some other loans and credit cards that are clean credit always paid on time and i would like to consolidate them but I just can’t get any credit. Thanks, Amy
Sara (Debt Camel) says
Repaying the loan won’t immediately improve your credit record as the article above explains.
You may want to consider offering a full and final settlement on this loan, how much depends on how long it has been in an arrangement, how much you are paying and if the debt has been sold to a debt collector. That would leave you with money to clear some of your other debts, reducing the amount you are paying each month.
Jack says
I have a default on Experian but not on Equifax. Its says that i owned 150 quid to Southern Water. I only noticed it now, never new they defaulted it. But it also shows satisfaction day. A bit strange coz i never paid them anything. I understand that the default will stay for 6 years, but does it mean the default is satisfied and i cant do anything to improve further?
Sara (Debt Camel) says
It is probably not on Equifax because the creditor doesn’t report to them – this isn’t relevant to your problem.
It is probably showing as satisfied because they have sold the debt to a debt collector – so you are may get a letter soon and see the debt reappear under the debt collector’s name.
Do you think you actually owe the money? If not, you need to dispute this with Souther Water.
susanne says
I have a ccj of £515 and a defaulted account to Barclays of which I owe £2000 I pay £1 a month, these both end in January 2018, is it worth paying these off to improve my credit score as I want to get a mortgage or will this not make any difference.
Sara (Debt Camel) says
If you pay them off it won’t improve your credit score, as the article above explains.
BUT you stand no chance of getting a mortgage until you have repaid them, even if they have dropped off your credit record next year. See https://debtcamel.co.uk/dmp-mortgage/.
Babs Marshall says
I had 2 barclaycard debts, one of which I settled with full and final settlement offer, however the other I just missed coming to agreement with them for Full and final settlement as they had sold the debt to another company and it is now in the hands of LINK FINANCIAL OUTSOURCING who refused 2 offers I made to them, the second of which was higher % than Barclaycard accepted on my other debt. I thought it reasonable at 55% ( a conditional F&F settlement loan from family): I have also sent them £1 as I want proof that they have a legal right to deal with my debt and asked for a total reduction in monthly payments from £160 to £5, as I am self employed and can no longer afford any more than that, and I am sure I signed nothing to consent my debt being sent to any third party? Can some one please advise? link is the only company to be awkward and unhelpful and quite frankly greedy as they buy debts for next to nothing compared to amount owed!
Sara (Debt Camel) says
I assume your £1 was asking for Consumer Credit Act agreement – that is a sensible move.
Have you supplied them with an income & expenditure statement showing what you can afford to pay them each month? And a letter from your relative offering a final settlement? See https://debtcamel.co.uk/full-final-settlement-rejected/.
You don’t have to sign anything for a debt to be sold. There will have been a clause in your original agreement that lets the creditor do this.
Shirley says
Hi can I just say your site is great and very helpful. I was made redundant 7 years ago. I managed to keep paying my bills but in the end defaulted on two. I have paid one off in full and now shows as satisfied three months ago and the other is due to fall off end of this month. My question is this. I have since managed all my accounts, I have no missed payments and I am no longer in debt. However why has my credit score not Improved at all with one default dropping off, it has not moved in the last year plus? My public score however is in the excellent range. I had hoped my score would have improved at least a little.
Sara (Debt Camel) says
“However why has my credit score not Improved at all with one default dropping off” has it actually dropped off? You mentioned it has been repaid, this isn’t the same thing. When is the default date?
“My public score however is in the excellent range.” what are you looking at that shows you a “public” score and a different score as well?
Shirley says
Hi thanks for the reply. Yes the defaulted account was paid in full last August and dropped of my file in February this year and no longer shows on my report. I have another defaulted account that will drop off at the end of May. The Public report I referred to is on my credit report with checkmyfile and is the report landlords etc can check this sits in the high 980 mark and the second report with the poor score is my actual credit score that a credit card company or loan or mortgage company would look at.
Sara (Debt Camel) says
Where are you seeing this “actual credit score”?
Shirley says
I have an account with the credit company Check my File they list both scores within my File.
Sara (Debt Camel) says
OK, you can ignore what Check My File call scores on “data seen by others” – they would take no account of defaults at all.
For the other scores – if your account only shows 1 remaining debt with any problems and that will drop off at the end of this month, your score should improve next month. But what is the debt you said ” I have paid one off in full and now shows as satisfied three months ago”? is that the one that has dropped off?
Shirley says
Yes the one showing as satisfied is the defaulted account when I look at closed accounts. The default fell off the report three months ago. I just have the one default which is the six years at the end of this month. It is not quite paid off in full by nearly, another three months should clear the debt.
Scott says
Hi on my clear score credit file when I go on closed accounts I have four debts with lowell all totalling upto to around £2000 they show up as last updated in 2013 I want to go for a mortgage in the near future should I pay these debts off in monthly installments I’m unsure what to do as they are old debts I have been told that starting to pay them is worse as it shows up as a new debt and my credit score will do down and lenders ain’t so bothered about debts over 3 years old what should I do thanks
Sara (Debt Camel) says
I think closed accounts on Clear Score include those which are defaulted. If you have 4 defaulted accounts you haven’t repaid, you stand very little chance of getting a mortgage. You need to settle the accounts, not just start to repay them.
Starting to repay the debts will not show up as a new debt and your credit score will not go down.
Mortgage lenders aren’t so bothered about defaults over 3 years old IF they have been settled for more than a year. Most mortgage lenders will reject you immediately with unpaid defaults.
Scott says
Thanks for info but if I start to pay them will the 6 year window when they come off my report start again from when I start paying them , also at the moment I can’t pay them in full and they are offering a monthly payment plan
Sara (Debt Camel) says
No. I am assuming a default date has been added in 2013 – the debts will then disappear in 2019 whether you pay them or not.
If you can’t pay them in full, you could look at a full & final settlement offer? This is not an easy decision to take, see https://debtcamel.co.uk/dmp-partial-settlement/. But realistically if you can’t afford to repay them, you can’t be very close to getting the deposit for a mortgage, can you?
John W says
Hi i have 5 defaults all registered between november 2014 and December 2014
I just recently piad 4 of them of in one go a week ago
Prac finacial 329 defualt November 2014
Brittish gas 250 november 2014
Safetynet credit 509 december 2015
Payday uk 429 november 2014
I still have one ill pay of in january 2018
Kingdom credit union 582 ill pay of in january 2018 defualt jun 2014
I did get capital one credit card limit 2200 in 9months
Aqua card 1500 limit in 9 months
Does this all help improve my credit
Sara (Debt Camel) says
Paying off the defaults doesn’t help your score, but it will stop it getting worse (by getting CCJs) and some lenders are more happy to lend when defaults are repaid. So that’s all good.
The two bad credit cards will be helping to get some good marks on your credit record, but they don’t diminish the bad effect of the defaults… but when the defaults drop off the new cards mean mean your credit record should be good!
Maximise the improvement from the two new cards by spending on them every month, it only has to be something small, and repaying them in full every month. This is better for your credit score than having a balance.
Sara (Debt Camel) says
Also you have some payday loans on there… have you read https://debtcamel.co.uk/payday-loan-refunds/? If you could win some affordability complaints, then the defaults would probably be deleted, that would be good for your credit score!
Scott says
Ok thanks I’m looking at a mortgage in a year or or two at which time I will have a deposit so if I pay the debt in full it will still come off in 2019 but if I choose to pay monthly then then it will start the 6 years untill the debt comes off my file all over again is this correct thanks
Sara (Debt Camel) says
The debt comes off your file if you pay it in full now, settle it partially, start monthly payments or ignore it completely.
Of course, if you ignore it, you may get a CCJ added which would be a disaster for your mortgage, but the debt itself will drop off 6 years after the default debt whatever you do.
barry weston says
hi. i have acct from june 2011 from severn trent. the debt was for £666. i was given a cci for £666 at northampton court. after moving address and finally finding out i rang northampton court to be told they weren’t dealing with it any more and it was the local court. i went to my local court and they said its now with the debtor. rang severn trent and they have sold it to another company. now the other company wants £900 in costs and fees. is the cci due to drop off my account in june weather paid or not? if nothing paid by june can i declare this statue barred?
Sara (Debt Camel) says
Hi Barry,
CCJs technically never become statute barred, but after 6 years the creditor has to go back to court to ask for permission to enforce them. It is unusual to have that much added in costs and fees… I suggest you phone National Debtline on 0808 808 4000 and talk to them about the details of your case.