This is a very common question. It’s sometimes asked because someone’s situation has improved and they are trying to clean up old problems on their credit history as fast as possible. Sometimes it is because the borrower feels that the default was unfair in some way. In this article I look at different scenarios to see what – if anything – can be done for each of them.
But first, there is no magic trick that an “expert” can use to do this. If there are practical steps, then you can take them yourself. Don’t ever pay a firm that offers to do this for you – their claims are often exaggerated, they can’t do anything that you couldn’t do yourself.
The rules about when debts disappear from your credit record
There are three credit reference agencies (CRAs) in Britain – Experian, Equifax and Call Credit. They all apply the same two rules that determine when they delete a debt from a credit file:
- a debt that doesn’t have a default will stay on your record for six years from the date when it is settled. This applies whether it was settled in full or partially;
- a debt with a default will remain for six years from the default date. This applies whatever happens to the debt after the default – you may have paid it in full, made a full and final settlement, not paid anything to it, or still be making payments, none of these matter because the debt is still going to vanish after six years.
As you can see, the default date is a crucial piece of information for you to know. I suggest you should check your records with all three CRAs so you know exactly what they say.
“I agree with the default, but six years! That’s ages!”
If you just had a temporary problem, perhaps you lost your job, or couldn’t work when you were unwell, but after a year you were sorted and back making payments it can seem very hard for this black mark to stay on your credit file for so long.
Unfortunately there is nothing you can do to make the default go away sooner. You can add a Note to your credit file, which explains why the problem arose. And as the default gets older, some lenders will be less worried about it. But for some creditors, eg many high street mortgage lenders, any default, even five years ago, may result in a rejection.
Often the best you can do is repay the debt in full as soon as possible. This doesn’t delete the default but it will start to slowly improve your credit score, see Will repaying debt help my credit rating?
“The default was added very late”
The Information Commissioners Office (ICO) says that a default should normally be when you are 3-6 months in arrears compared to what your normal payments would have been. If a creditor has added a default later than this, you can ask them to correct this – see my article “What should the default date for a debt be?” which goes into more detail about this.
“It’s not fair – I only missed one payment”
In this case no default should have been added as you were never three months in arrears. Write to the lender, then appeal to the ICO if the lender refuses to correct it, see the above article about what the default date should be for details.
“The lender agreed to reduced payments but still added a default”
This can feel very unfair, but legally they can do this when the arrears compared to what you should have paid reach 3-6 months. What you have set up is termed a “debt management plan” even if it was just an informal agreement with one lender. See How does a DMP affect my credit rating for more details – that also explains why it may feel wrong, but you could actually be better off with a default, rather than an Arrangement To Pay marker on your file!
“The lender is adding a new default every month!”
This is normal. What matters is the original default date, it will drop off six years after that, the latter defaults don’t matter. You may think it’s making your credit rating even worse, but lenders’ scoring systems will only be looking at the first default.
“A debt collector has added a later default”
They shouldn’t have done this. A debt collector can add a new record, but it should have the same default date as the original lender. Write to the debt collector and ask them to correct it, and then appeal to the ICO if necessary.
“I never owed this money”
In this case you need to ask the lender to delete either the whole record (if the debt never belonged to you at all, it is some form of mistaken identity) or the default (if it was your account but you were never in arrears).
“I was never properly informed about the debt”
Arguments can occur between you and a creditor if you feel they didn’t properly write to you about the debt, explain what the debt was or the size of it. Perhaps you moved house and the creditor carried on writing to your old address even though you notified them you had moved – this sort of thing. If you paid the debt promptly as soon as you became aware of it, you could ask the lender to remove the default. You may have more luck going to the relevant Ombudsman rather than the ICO if the creditor refuses.
“The debt isn’t enforceable”
Sometimes a lender will admit – or a court may decide – that a debt isn’t enforceable. If this is because it is statute barred, then a default should have been added to the debt over six years ago so you should ask for the default date to be corrected if it is later. But if it is unenforceable for other reasons, the debt still exists and the lender may refuse to delete it from your record because you do still owe the money.
“I should never have been given the loan!”
Until a year ago I would have said you will find it hard to make this argument work… but since then thousands of payday loan debts have been deleted from credit records, see this article from Experian about Wonga loans.
If you think you were give payday loans that were “unaffordable” (ie you couldn’t have repaid them on time and still be able to meet your other financial commitment such as rent, bills, food etc) then look if you can ask for any compensation for these and say that as part of this compensation you would like the loan deleted from your credit file – see How to ask for a payday loan refund for details. The template letters in that article really are working!
You could make out a case like this about other sorts of lending. People are just starting to make this sort of complaint about door-step lenders and catalogues or credit cards because they often aren’t very careful, shall we say, about checking your credit file before lending again or increasing your credit limit. These sorts of complaints are only just begining, so I don’t know at the moment how many will be successful.
I was in an abusive relationship
Many people, usually women, have been pressured to take out credit for a partner or had a joint account with an abusive partner. Financial abuse is now starting to be recognised as a serious problem, see this April 2016 report from Citizens Advice. If you feel the debt and the default resulted from an abusive relationship, I suggest going to your local Citizens Advice and asking for their help to see if the debt could be written off and the default removed.
Summary – getting rid of defaults
If the default doesn’t comply with the “3-6 months arrears” rule then you can ask for it to be corrected. But if the default is in line with the “3-6 months arrears”, there isn’t normally anything you can do about it except wait for it to get older and then drop off.
Pay a defaulted account to help credit score?
Is an unknown debt on your credit file?
Can you get a mortgage with debts?
Mike P says
Thanks I will do that , my only worry is if I contact them will the default date be changed to the date I contact them.
Sara (Debt Camel) says
What is the default date now? They shouldn’t bring it forward, there would be no reason for them to do this.
Mike P says
The default date is 3rd January 2013
Mike P says
They say the Account started in March 2011
Helen says
Hi, I hope you can help me with two queries I have got with regards to defaults on my file.
When I check my Noddle report I have 5 defaults, all of which I agree to and I have repayment plans set up for all of them. However when I checked my Experian report I have another two defaults on there which I was completely unaware of:
1. I had an account with an overdraft with Halifax which defaulted. This debt was then sold on to Cabot financial. On my Noddle file this is showing as a Cabot default and my repayment plan is with Cabot. However on my Experian file this default appears twice, first as Halifax and then as Cabot. But it is for the same account with the same debt. Can they put two defaults on my file for the same debt?
2. There’s a default with Southern Water. I have phoned them to get information but they are telling me that my account is up to date and that they cannot find any other accounts in my name.
I have not received any letters / phone calls / default notices at all about this debt, I genuinely had no idea it existed!
It’s possibly from when I lived with ex-husband and that they’ve been speaking to him bout it, but they had my new address so should have been able to contact me and not just him!
What can I do about these?
Sara (Debt Camel) says
1. If Halifax debt showing zero balance, this is normal, what usually happened she when a debt is sold.
2. Write to southen water (email with Complaint in the title) and ask them to delete the default as you have no idea what it is for, don’t think you owe them anything and on the phone they have told you your account is up to date.
Helen says
Thanks Sarah, With regards to the Halifax one, it is showing £0, however I still feel it’s unfair I’ve got two defaults for one debt. Is there nothing I can do about this then?
Sara (Debt Camel) says
No, this is normal, only one is counted when it cones to your credit score.
Helen says
I wrote to Southern Water to complain. They’ve just phoned me now and as I suspected, it is from the account I had joint with ex husband and they have only been trying to contact him about it.
I’ve now set up a repayment plan for this debt and they have agreed to remove the default from my credit file. :-)
Sara (Debt Camel) says
Good result – well shame about having to repay it, but good they were helpful re the default.
Suzy says
Hi Sara & All
FOS ordered The Money Shop to remove a default back in December 2016 , Experian even sent me a letter saying TMS agreed to remove
But today its back on my Experian Credit File Why
I have scanned Experian letter back to them asking them to remove it
How does it get re entered ??
So all please do check just in case they re appear again
J Wright says
This happened to my ex partner with Lowell.
He sent them the confirmation that they had agreed to remove it and was offered 100 pound compensation.
He had applied for credit believing his credit score was perfect and was declined.
Don’t let them fob you off that it was a system error. Insist on a full apology
Suzy says
Thanks for that i will be giving them a call/email i kept the letter from Experian saying they will remove it
I will call TMS explain what they have done and ask for compensation
Disgraceful especially after FOS ruling
Thanks for the info
Suzy says
Hi
I emailed and spoke to TMS today who were clueless as to why it re appeared manager will i spoke to will investigate it
I said i wanted compensation for this matter, she said she will look into it and call me
i also e mailed the trail of her e mails back and forth to me from over a year ago agreeing to remove it
Cant believe this has happened again
Will update you with the out come only 1 outcome remove it again & a little compensation will help my purse is £100 enough ??
J Wright says
Anything is better than nothing.
In reality your only option would be to report them to the ICO who can take action against them but not offer you any compensation or personal award.
You could take court action under the data protection act section 13 to seek compensation, but would need to prove the mistake caused you damage.
I am in the process of taking a business to court for that reason (along with other breaches) and I would avoid the stress of court if you can.
Suzy says
Thanks for your reply of course, what ever they offer i will accept those other routes not worth the stress and will probably incur cost-Court etc, i called TMS today spoke to the manager and shes awaiting how much compo i am getting
I will keep you updated, but most importantly the defaults being removed again !
J Wright says
I’m pleased they are taking it seriously and yes please do keep us informed on their offer of compensation.
Suzy says
****************UPDATE *******************
TMS have now removed the default again from my credit file & offered me £75 compensation
I have of course accepted this as its better then nothing
most importantly the default is gone as this would of if i were to apply for a mortgage/loan in the future prevent me
So glad i saw your post and challenged them & asked for compensation as well
Lesson learned check your credit files as those defaults have a habit of re appearing !
J Wright says
I’m so pleased you got a result.
As you say it’s better than nothing and hopefully make sure they take more care to stop it happening again.
I have a small claim case pending against a company for an incorrect default on my credit file and using my data for marketing purposes when I removed my permission.
My case isn’t really about money but making them accountable and for them to realise there are consequences to not complying with the law
Suzy says
Hi
Hope it all goes to plan make sure you report back to the site the outcome
This site is a god send i use too think not many had these problems when i found this site i found so many people with my same issues
Thank god for Sara
You keep fighting for whats right , i sure will as for credit files im keeping my eye out as it proves defaults have a habit of re appearing
Still TMS paid me £75 and removed it yet again , i dont feel guilty about spending the £75
Cheers i say
So please everyone check that TMS have not adding the default on again if so complain and get compensation i did
Craigy-1980 says
Hi
Am very puzzled just been checking my credit files and I’ve got a default notice from 5 years ago a late payment from 4 years ago on my noodle credit file but I went on to experian and there is nothing on there what one do I follow? Am thinking of applying for car finance but I don’t want to get rejected can you please help
Thanks
Sara (Debt Camel) says
See https://debtcamel.co.uk/experian-or-equifax-which-is-best/ which looks at why not all debts show on all credit records.
M.Peckover says
My son has a default on his credit file for a 3 mobile phone for £55. He obviously wants to pay it off, but will the default come off his file or just get changed to settled. Who does he contact as he will have to have any agreement in writing.
Sara (Debt Camel) says
It will just be changed to settled – still the right thing to do 9assuming he actually owes the money of course!) as otherwise he could get a CCJ. He needs to contact the firm the debt is showing against on his credit record.
Rob r says
I have a default september 2007 the creditor refuses to remove the record . Equifax,Experian and co just say speak to the creditor. What on earth am I supposed to do? How to I get the record removed?
Sara (Debt Camel) says
You can’t have a default from that date on your credit record – the problem is the creditor hasn’t added a default date…
What sort of debt is it? Who is the creditor?
Andy says
I have four defaults on my credit file, as follows:
EE – default date 12/1/13 – amount £499 – status is settled
EE – default date 26/4/12 – amount £199 – status is settled
Virgin Media – default date 13/6/14 – amount £240 – status is settled
Hutchison 3G – default date 16/4/14 – amount £38.16 – status is settled
Aside from these, there is no debt recorded on my file other than a small credit card balance (£600) which I clear every month, without fail.
Is there any way in which I could get these defaults removed given how small they are and that all have covered at least half of their six-year life span? At the moment they are stopping me from renting a flat because of credit checks – and I’ll have to wait at least TWO YEARS before they all disappear from my credit reports.
Sara (Debt Camel) says
No there isn’t. But defaults do not usually show up in the checks letting agencies make.
Bob says
Hi,
I have been given a default without notice.
1 – I had asked to change address
2 – My mother was suffering from a mental ilness and destroyed all my postage over a four month period.
3 – I had reduced the overdraft from 5000 to 900
4 – this happened with another bank they removed the default.
Any advise on getting it removed?
Much appreciated
Sara (Debt Camel) says
If you had told the bank to change your address and they didn’t, this is a good reason for a default to be removed. I’m not sure why you think the fact you had reduced your overdraft is relevant?