“This default is destroying my credit score – how do I get rid of it?”
This is a very common question!
It’s sometimes asked when people’s finances have improved and they are trying to clean up old problems on their credit history as fast as possible. Or sometimes the default feels unfair in someway
I will look at various cases 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. Don’t ever pay a firm that says they can sort this for you – their claims are often exaggerated, they can’t do anything that you couldn’t do yourself.
Contents
The rules about when debts disappear from your credit record
There are three credit reference agencies (CRAs) in Britain – Experian, Equifax and TransUnion. They all apply the same rules about reporting defaults.
How long a debt stays on your record depends on whether the record shows a default date or not. The two rules are:
- a debt with no default date stays 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 date stays for six years from that date. 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, the debt is still going to drop off after six years.
So the default date is an important piece of information for you to know. Don’t guess! Check your records with all three CRAs so you know exactly what they say.
“I agree with the default, but six years is too long!”
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.
But there is nothing you can do to make the default go away sooner.
You can add a Notice of Correction to your credit file to say why the problem happened.
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.
Usually the best you can do is settle the debt as soon as possible. This doesn’t get rid of the default and doesn’t actually improve your credit score, but it will mean that more lender are willing to give you credit.
“The default was added very late”
The rules say 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, it won’t be deleted, but it should be changed to be earlier. That means it will drop off sooner. See “What should the default date for a debt be?” which describes how to get your record corrected.
“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 reach 3-6 months.
This applies if you have payments arrangements with one or two lenders or a debt management plan through a DMP firm. See How does a DMP affect my credit rating for more details.
And although you may hate that default, it may actually be better for you than an Arrangement To Pay (AP) marker on your file! A defaulted record disappears after 6 years, an AP marker stays for 6 years after the debt is settled.
“The lender is adding a new default every month!”
This may make your credit report look dreadful but it is normal and it doesn’t matter:
- the later defaults don’t make your credit rating worse because lenders’ scoring systems only look at the first one;
- the debt will drop off 6 years after the first default, the later ones don’t affect this.
“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”
If the debt isn’t yours, you should tell the lender and ask them to remove it from your credit record. It’s not just your credit record that matters here, you don’t want to be chased for money by the creditor or be taken to court for a CCJ.
If you recognise the debt but you don’t think you were ever in arrears with it, ask the lender for a statement of account to see where the problem is.
“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 know about it, you could ask the lender to remove the default. Pointing out that you previously had a good history of paying their bills on time and that you don’t have other credit record problems can support your argument. 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 changed so that it is earlier.
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 few years ago I would have said you will find it hard to make this argument work… but since then many thousands of payday loan defaults have been deleted from credit records when people have won affordability complaints.
Lenders should have checked you could afford to repay a loan before they gave you the loan. A loan is only “affordable” if you can repay it without hardship and without having to borrow again or get behind with bills.
If a proper check would have shown that the credit wasn’t affordable for you, ask for a refund of the interest you paid and for any defaults or late payments markers to be deleted from your credit file. See Affordability refunds for info on how to make these complaints for different sorts of credit including payday loans, Provident, guarantor loans, car finance, Brighthouse, large bad credit loans and even catalogues.
Hundreds of thousands of these complaints have worked. Here is a comment from a reader who made a successful complaint against Satsuma, a payday lender:
I accepted Satsuma’s offer on 2nd January and received the cheque on 17th January. The negative information already removed from my credit file as well which made my credit score jump by 100 points :)
“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 recognised as a serious problem and most banks now subscribe to the Financial Abuse Code of Practice published in 2018.
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 – when can you get 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 often isn’t 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?
Improve your credit score for a mortgage
Sam says
i had a default 2 years ago. for £7900 i now owe £6500 its really affected my credit score and i find it impossible to get it any higher. any advise on how to deal with this? as itll be gone in 4 years should I even bother paying it off? at moment im paying £5 a month. will this affect me getting a mortgage in 4 or 5 years time?
Sara (Debt Camel) says
If you stop paying it, the lender – or a debt collector it is sold to – will go for a CCJ, which would be worse news for your score for another 6 years.
You haven’t given any reason for saying there shouldn’t be a default, you need a specific reason to attempt to get it removed.
You may be able to offer a full and final settlement?
Yes this will affect you getting a mortgage, even after it has gone from your credit record unless it has been settled. See https://debtcamel.co.uk/mortgage-debts-not-on-credit-record/
Wellz says
Hi There,
A Sky account was opened in my name (which I never opened) and was at one point on my credit file around around 2012/2013. I spoke to Experian about this explaining that this debt isn’t mine and even wrote to Sky explaining that I never opened the account and even provided a fraud line reference to them and has since then been dropped from all my credit files that I know about. 6/7 years (today I received the letter) forward Cabot Financial have written to me saying they have now “found me” and “welcoming” me to a new way I can manage my debt with them for an outstanding balance I owe Sky.
As far as I am aware currently this debt doesn’t exist on any of my credit reports now.
Just wanted to get your advice on how I should proceed with this? Can they do anything more?
Thanks.
Sara (Debt Camel) says
Reply to Cabot saying what you have just put here. Ask them to confirm that they will be removing your name from this debt which is not yours.
Tom says
Hi Sara
I have a default from ID Mobile for a phone contract worth £120. The contract was set up as a direct debit so I naturally assumed the £5 (over 24 months) a month would leave my bank automatically. This happened in 2016 and I’m only just aware of it. I spoke with an ID Mobile rep who confirmed it was a mistake on their side with the direct debit.
Is this enough grounds to have the default removed from my credit report completely? Or will the status just change if I pay off?
Thank you
Sara (Debt Camel) says
I suggest you get back to them in writing (email is fine) saying that their rep has just confirmed on the phone that they failed to collect the DD for your contract because of an error on their part and that they never informed you about this so you were not aware of it. Say you are happy to pay the £120 but you want their assurance that they will delete the Default from your credit record.
Immanuel says
Hi my brother took out a phone contract in my name without my knowledge several years ago and the account fell into default status. The account has been settled but I only recently found out that it stays on my account for 6 years. I have reported it to Experian who contacted EE(Orange) but they said nothing could be done. I also contacted EE(Orange) who told me the same thing as it doesn’t constitute fraud which I don’t believe to be true. Is there any other steps or measures I can take to get this removed from my credit file?
Sara (Debt Camel) says
Have you reported it to the police and Action Fraud?
youss says
In 2017 I had a contract phone with three and in 2018 I called three to cancel the contract and at that time they canceled the contract and they did not ask me to pay a price for the cancellation. And after this cancellation I returned to my country in France and in early 2019 I returned to London, and I found in my credit score experience a default account of 130£ and I contacted three to find out it’s What’s wrong with this account And they explained to me that you have to pay for the cancellation of your contract in 2017 , but me I did not receive a letter I did not receive a call to tell me that I had to pay that , so I paid this amount Two months ago
I would like to know if the default account will be removed automatically
or i need to wait 6 years,
and if there is any agency that can delete me default ???????
many thanks
Sara (Debt Camel) says
The default will be removed 6 years after the default date. Paying the loan doesn’t make a difference to this..
You can add a Notice of Correction to your credit record saying you paid the default as soon as you found out about it as the mobile company had not told you about the debt.
Raf says
Hi,
I had a car on finance and a friend at the time was in desperate need of a vehicle as his mum had suddenly fallen ill and he needed a car to go to the hospital. He told me he had insured his vehicle and sent me a picture of his insurance certificate. Unknown to him a few days later his insurance was cancelled, as his payment had bounced back from his bank.
As he was driving he got stopped by the police for not having any insurance. When he showed the certificate it came as no insurance but he wasn’t made aware of it. This then led the car to be seized to the police compound. My finance company had been alerted by the police of this matter and they came and repossessed the car.
I tried to dispute this with them and they kept saying I had breached my contract and there were not in a position to give me back my car. It was then sold it at an Auction. It was sold short of £11.,058.13, and I was told I had to pay this amount.
I always kept up with my payments, never had any missed payments with the finance company and also the solicitors company who were chasing the remaining £11k. A default had been put on my name, on the basis of the car not being insured.
I then appealed this with them as to why I had a default on my credit file and was told this was due to the car not being insured to drive. I wanted to ask, is there a way of dusting this matter from getting it removed from my credit file?
Sara (Debt Camel) says
I don’t like commenting on this sort of consumer dispute without seeing the paperwork. I suggest you go to your local Citizens Advice with all the car finance papers and communications after it was repossessed and then sold.
Raf says
Hi Sara,
What would that do for me?
Carolyn says
That would get a trained debt advisor to review ALL THE RELEVANT PAPERWORK and full details of all your communications with the company.
Sara cannot advise without full disclosure of ALL communications regarding the matter.
Personally, in my former career as a motor claims negotiator, in lending the car, which still belonged to the credit company, to an unknown and uninsured person, you breached your credit contract and remain liable for the shortfall.
PF says
Hi Sara,
I have entries on my credit file from a company called Vivus. From what I can gather this company is no longer trading, can I request that these entries be removed from my file?
Thanks, PF
Sara (Debt Camel) says
Were these debts paid? if not, was yours sold to Merligen or MMF?
Ravi Sharma says
dear sir,
i never have dept with someone, what my bank account closed for fraud? that i never deed. someone make payments my bank for goods
and then all bank closed my account for what i didn’t no. a pls help me.
Sara (Debt Camel) says
Hi Ravi,
can you go to your local Citizens Advice and ask them about this? They will be able to look at what has happened and say if there is anything you can do.
Ross says
Hi.
I recently applied for a mortgage but was refused due to a default on my account. I got a copy off my credit report and found that Scottish Power had placed a default on my account for the prepayment meter at my previous address. Surely this can’t right?
Sara (Debt Camel) says
Had you defaulted on your payments so they installed a pre-payment meter?
Jane says
Hello,
I have three default from equifax (seen on clearscore), opened on 10th august 2013, last updated on 20th 0ctober 2018.
I have settled these defaults including a payday loan (lowell, capquest and cabot) and it shows as closed.
These are six years old minding the opened date and they have not dropped off my equifax account but these do not show in my experian account. What should i do pls?
Sara (Debt Camel) says
Debts drop off 6 years after the default date, not after the date the debt was opened. If the debt doesn’t have a default date, the debt drops off 6 years after it is settled.
What are the default dates on these debts?
Those lenders probably don’t report to Experian, it is normal for some debts to not show on all credit reports.
Bella says
Hello,
Pls advise. I cannot see any virgin account defaulted in my experian but it shows three different accounts as default in my equifax, one as a virgin loan.
2 years ago I called virgin about the account and they csnnot find any records of it. They are all opened in 2013 and 2015 and last updated in 2016 as a default.
What do i do to get rid of this, although i had a virgin mobile account in 2012/13 but i did not take any loan neither can i recollect a default plus these are opened in august 2013 as shown in equifax and are 6 years old already so should have dropped off anyways. Pls advice.
Sara (Debt Camel) says
Virgin may not report to Experian – this is normal, nothing wrong with that.
If you only had one Virgin account, you need to complain to Virgin that they are incorrectly showing three debts on your credit record and ask them to delete the two that are incorrect.
The debts will drop off 6 years after the default date, not the date they were opened.
Hannah says
Can i get late marker wrongly added to my credit report from a company which is no longer in business?
Sara (Debt Camel) says
What evidence do you have that the late payment was incorrect? How long ago was it?
wendy says
Hi
I have car finance with a company and missed 2 payments ( August and Sept) due to personal financial problems at the time. In October I called the company and paid Octobers balance and set up a payment plan for the next 3 months. In February the o/s balance and the £250 fee they placed on the account will be cleared. I sent a letter to the company asking if they would remove this, explained the reason for the missed payments and highlighted my 3 years of good payment history.
The company returned my letter stating they could not locate my account however, I did receive a phone call stating they would not remove the default as they had sent me a letter to tell me the default would go ahead and that despite my action of setting up a payment plan then would not remove it. They would not put this in writing to me either.
Is there any way this can be removed?
Sara (Debt Camel) says
So your account was never “three months in arrears”? Read https://debtcamel.co.uk/debt-default-date/… that quotes from the rules that say a default should be added when you are 3-6 months in arrears.
So you can put in a complaint in writing to the lender and point this out. Say you accept there will be 2 months of missed payments showing, but say as your account was never three months in arrears you think it is unfair that it should have had a default added. Ask them to delete the default.
Wendy says
I have requested this in writing and again I have received a phone call today stating they still won’t be removing this. In the letter I documented the payments and dates of payments from June however they have stated that under credit act? This will remain in place and won’t be removed.
What would be the next step?
Sara (Debt Camel) says
Ask them to put that in writing as you will be sending the complaint to the Finacial Ombudsman.
Wendy says
Hi
Following your advice I wrote a letter stating that I was not 3 months in arrears and stated the rules from the ICO, I again received another call stating it would not be removed and would not put this in writing. I have since made a complaint to the company and they have returned to me stating that after 2 missed payments (which I was) they place a default on your account as standard policy within the company. They have advised that again they will not be removing the default from my credit score.
They acknowledged my good payments for the last three years and the fact the debt has now been settled and no longer in arrears but stated it still would not be removed.
Is this correct? Should I make a complaint to the financial Ombudsman?
Sara (Debt Camel) says
yes, I should send that to the Ombudsman.
stacey says
Hi. i had an account with talk talk. they provided terrible internet service. I complained many times about the service and moved to sky. they sent the debt of £73 to moorcroft who bounced it back to talk talk. i contacted talk talk to discuss the account and sorting payments out before they defaulted the account. after a hour of arguing with the adviser at talk talk I paid £13. a week later i pay £30 and get a notice of a default on the account. the remaining balance is £30 which i will pay in a few days time.
Is there a way to remove the default as the debt will have been paid and it was unjust. a payment and agreement was arranged before the default was sent off.
Thank you.
Sara (Debt Camel) says
You can complain and ask for the default to be removed, but as you ended up paying the debt this will be hard.
Amy says
Thank you for the helpful article.
On the 15th November 2019 I received a letter from LCS debt collection services about an unpaid British gas bill between 9th August and 10th September 2019. The bill in question said it should be paid by 14th October 2019. I didn’t know about the bill as 3 separate bills were sent in one month and I didn’t pay this one by accident. Selling the debt to a debt collector a month after the bill was due to be paid sems too quick. Is it too quick? Is there a timeframe that it accepted before selling the debt on?
Presumably I hadn’t even defaulted on this particular bill because it wasn’t 3 months late. Should a bill that hasn’t defaulted be sold on?
My main concern is poor credit score:
A) from a possible defaulted payment
B) from the recruitment of a debt collector for the bill which presumably leads to another default.
How can I check how many defaults there are in my name? Can either be fully removed if I am successful in contesting this with British gas on the grounds that debt collectors were recruited very early and that having 3 bills in one month was confusing.
Sara (Debt Camel) says
Are you sure this has been sold? It may be that British Gas is just using a debt collector to collect the money. Why were you sent three bills? I suggest you check your credit records with all three credit reference agencies (see https://debtcamel.co.uk/best-way-to-check-credit-score/ for how) to see what has actually happened.
Amy says
Thank you, I will do more research.
British gas said I should pay the collection agency not them so I was presuming it was sold on.
Sara (Debt Camel) says
If they called it “a collection agency” then it probably wasn’t sold, it is just collecting the money for BG.
Leigh says
My mum has taken credit in my name without my knowledge and defaulted on payments. I’m currently being told that the only way to resolve this is by getting the police involved. I understand what my mum has done is wrong and believe me, the relationship has fully broken down because of this, however, it just wouldn’t sit right with me to contact the police regarding my own mum. Is there anyway I can resolve this?
Sara (Debt Camel) says
Sorry, the lender isn’t likely to believe this story unless you are prepared to report your mum for fraud. So if you can’t face doing that, you are stuck with the default on your credit record and a debt collector wanting to be paid.
Jo says
Hi there,
I have been on a DMP for 3 years and I’m half way through paying it off. I still have another four years until my most recent default will fall off my report, my main goal is to improve my credit score as quickly as possible. I have managed to save enough to make a settlement offer (70% of the remaining debt).
If I offer this money as settlement to close the debts and they accepted it, would that part settlement cause more damage to my credit score than if I were to continue as I am and pay in full in 4 years?
Any help would be great,
J
Sara (Debt Camel) says
All these debts are defaulted?
jo says
All but one, who have stoped applying interest to the balance but have frozen the card. Of the raining accounts, most have been passed to a DCA.
Sara (Debt Camel) says
OK, so to answer your question, part settlement doesn’t affect your credit score at all. It is a flag added to a debt showing it was not setled in full but it isn’t taken into account in the headline credit score calculations.
It MAY affect whether a lender is more likely to lend to you.
BUT although there anre no firms rules I think it is safe to say that almost all lenders are more likely to lend to you if your defaulted debts have been cleared, even if partially settled, rather than if you are still repaying them.
Repaying the debts also has no affect on your credit score, so your credit score is not gaining directly from this.
it’s not certain all your creditors will accept this offer. If they just wait another three years they will get repaid in full.
Jo says
Thank you for the insight, that answers a lot.
Would the partially settled flag stay on my account forever?
I am really looking to improve my financial situation so anything that will speed the process up would be amazing. BUT… I don’t want it to hang over me for the rest of my life.
Sara (Debt Camel) says
The partially settled flag goes when the debt goes 6 years after the default date – or 6 years after the settlement date if wasn’t defaulted.
Claire Tee says
I have a default on my credit file registered 12th June 2018.
At the time of the default, the account was on hold.
This was because I had lost half of my disability allowance when I transferred over from DLA to PIP.
I explained all this to the credit card company, who agreed to put the account on hold.
On the 14th May, I received a letter from the credit card company, finally agreeing to not chase me for any more monies, however the default was registered on the 12th June 2018.
Why agree then to not chase me for payment, but still mark my file whilst the account was on hold!?
Tristan says
Hi I have a few defaults on my credit file that all begin back in 2016, when I was unemployed and couldn’t afford to pay bills due to a accident that meant I couldn’t walk/work. I lost my permanent address and had to move around a lot. Since then I have paid off all the defaults on my credit profile. Score currently on 715 with Experian. However the defaults are still affecting me as I am struggling to obtain car finance. The last 18 months not missed a single payment have a credit card with a £4000 budget and balance is £0 is there anything I can do to get the defaults removed.
Sara (Debt Camel) says
Nothing you have mentioned is a reason to have the defaults removed. How much do you want to borrow for the car fiance? Have you looked at getting a bank loan instead of car finance?
Alison says
I stood guarantor on a loan for a friend, she was late on some payments and I even had to cover a payment. Today I have received a default notice? I have tried to talk to her and asked her to sort it but she’s just ignoring everything. My credit score is good and I have am really worried that this is going to affect it for the future. Any advised on how this may affect me would be great. I plan on contacting the loan company on Monday and will try to sort the whole mess out.
Sara (Debt Camel) says
Read https://debtcamel.co.uk/amigo-complaints-by-guarantor/ and think if you have a good case to ask to be removed as the guarantor. That post looks at the various reasons you could have. Often the simplest to argue is that you cannot afford to make the repayments out of your spare income and the lender did not check carefully that you could – but there are other reasons as well.
If you are removed as guarantor, any payments you have made are refunded to you.
Philip says
Hi guys wondering if I could get some help.
I entered into a DMP last year with Stepchange, can a creditor default on my account even though they had been receiving payments each month for almost a year lower than what they wanted me to pay.
Sara (Debt Camel) says
Yes they can. At the point your account is in arrears by 3 months worth of payments compared to what you should have paid, the creditor can add a default.
Can I ask when you expect the DMP to end if you carry on with the current level of payments? Have all the debts in your DMP stopped adding interest and charges?
Philip Murdoch says
Ok thanks for the reply. It is currently running until November 2020 but when I pay off a creditor the money then gets split up between the other creditors.
When I had the dispute with Capital One they were getting less than what they are now. All the other creditors stopped their interest and charges
Sara (Debt Camel) says
Is it Capital One who have added the default that you are querying? You are paying them more than the standard monthly minimum payment now? Did you ever get behind with paying them?
Philip Murdoch says
Yes they have and until I started the DMP I had been paying the minimum amount. I had always paid them something but they didn’t agree with what Stepchange thought they should be receiving
Sara (Debt Camel) says
but were the amounts you were paying more than the minimum? if they are, there should not have been a default. If your DMP will be cleared next year, it sounds as though you will be making pretty large payments to it.
BUT if you insist on this, they may say they will add interest. As thats in the contract terms. You probably cant have it both ways – no interest and no default,
Philip Murdoch says
I pay so much towards my DMP which is split up between all the creditors, capital one would be getting one of the lower amounts but it does meet their minimum payment now, they argued when I started the DMP that what I was paying didn’t meet the minimum payment required so they had to default on my account.
Sara (Debt Camel) says
ok, the problem now is if you dispute this pointing out you are paying more then the minimum they may start to add interest again.
Ronelle says
I was put on default, I was in deep depression, didn’t take in what default meant in my mental breakdown situation. I paid debt off very quickly after a payment plan and voluntarily asap myself to get my “name cleared”. I called Barclays card to tell them that I did not understand at the time what they meant. Many calls later they don’t want to know about clearing my bad record. Now I am earning good money but damage is done. I have a huge deposit to buy a house but wherever I apply, I am shot in the foot. I am nearing a very diff mortgage age, I am so frustrated really and wanted to know if I can approach an Ombudsman to consider my position?
Sara (Debt Camel) says
At the point when the default was added, could you actually have made full repayment? Or were you off work for a short period!
How long ago was the default? When did you pay it off?
SD says
Hi, I had a joint loan with my ex husband which he stopped paying in 2012, it has shown on my credit file as 3 months outstanding then in Jan 2015 showed as settled or satisfied. I check my credit reports every month and as of today the Settled/satisfied has changed to a default in Jan 2015. What do I do? It only shows on Equifax, it has never shown on Experian and is not on credit karma. I have lived at my new address for over 9 years and don’t know what has triggered it or what to do?
Sara (Debt Camel) says
Did you think your ex had paid it in 2015? Has anyone ever made payments to it after 2012? Have you ever been contacted about the debt?
SD says
Hi, I’ve raised it as a query with Equifax, I assumed he had paid it, no one has ever chased me for the debt, I informed the loan company when we split he was taking full responsibility and the loan continued to be paid from his account until 2012, then in Jan 2015 it went from 3 to default, I queried it then and it went to Settled.
Katie says
Hi,
I am currently struggling to remortgage due to an unknown default on my Vanquis credit card. I paid my card off in November 2016 but I have just found out that a default was put on my account in July 2017 and reported to Transunion. An amount of £4 was added and the account was defaulted straight away. I was not informed of the default and prior to July 2017, my account showed a balance of 0. Equifax and Experian both report this account to have a balance of 0 and that it is closed, so no default with them. As I have just discovered this, I have been unable to contact Vanquis. Has anyone got any advice please? This is really stressing me out!!
Sara (Debt Camel) says
I think you have to talk to Vanquis tomorrow. Hopefully it is some error.
Katie says
All sorted. Vanquis have admitted it was an error and have said they will remove the default so hopefully this will show on my next credit report!
BRIAN MURPHY says
Hi Sara
I have today received a letter from my car insurance company (Close brothers) saying they are serving a default notice – My DD failed last Wednesday (10th Dec 19) and I received a letter today (16th). The letter suggested this was a proper default notice – I was 4 days late with my payment (account payment upto to date and final installment paid today). What is scaring me is the fact they have issued this so quickly can they do this? I’ve made all the previous payments on time and have been very diligent in making sure I have kept on top of my bills.
The letter also stated that there is a “default sum” (£30) for the missed payment – which I have also paid.
I’m concerned that proper “default notice” has been issued not just a “default sum” I Can’t go back 6 years now just when I’m seeing the light.
Please can you advise
Sara (Debt Camel) says
Is this an arrangement to pay, or just your normal monthly car insurance payments?
Brian Murphy says
Just normal monthly installment
BRIAN MURPHY says
Hi Sara
You asked about if it was a payment arrangement or normal monthly payments the later being the applicable. I spent some time looking at the CCA 1974 section 87(1) and subsequent sections and it suggests I have 14 days to remedy the situation before a formal notice can be enforced would this be correct? To confirm I paid the outstanding amount and £30.00 fee upon receipt of the letter – 4 days later.
Sara (Debt Camel) says
I suggest not getting tangled up in quoting legislation, just go back and make the simple point that a default should not have been registered for a payment that was a few days late. Put this in writing. Put COMPLAINT at the top of the email or letter. And say you will be sending it to the Financial Ombudsman if they do not remove the default.
BRIAN MURPHY says
Thank you Sara – Is the law on my side?
Sara (Debt Camel) says
Yes, but not the law you have quoted.
Section 87(1) of the CCA act is talking about Default Notices under the CCA act. These are a necessary precursor to starting court action. But, confusingly, they have NOTHING to do with a default being added to your credit record.
Defaults on your credit record are governed by ICO and SCOR rules. See https://debtcamel.co.uk/debt-default-date/.
BRIAN MURPHY says
Thank You Sara again informative and such a help in these circumstances – pleased we have people like you on our side.
Bobbyfz8 says
I have 2 car finance agreements that went into default almost 2 years ago. I contacted the lenders and paid the arrears in full and kept the vehicles and maintained the payments each month. Until recently I didn’t realise that a default means the account is terminated it was my understanding that the accounts were running as normal after I recovered the arrears. Could I get the defaults removed in any way?
Sara (Debt Camel) says
“Until recently I didn’t realise that a default means the account is terminated”
A default on your credit record just means your account got behind by at least three months, not that it was terminated. How many month’s payments did you miss?
Bobby776 says
3 on 1 of them and 4 on the other.
Sara (Debt Camel) says
Then the lenders have complied with the normal credit reporting rules. You could ask them to remove the default as you have repaid it, but you are asking a favour rather than saying they have got it wrong.
Bobbyfz8 says
This seems to be conflicting what the finance companies are saying as they are adamant there’s no agreement in place (I know it doesn’t add up that I’ve still got the vehicles and making the same payments.) Also no payment history is showing on my credit file since Apr 2018 and the accounts show as currently in default.
Liam says
Hi Sara,
I haven been trying to improve my credit score for the last 2 years.
I have a default that was reported with EE in June 2018 and that same debt has recently been added again with the same start date and default date as the EE one. It’s a duplicate but the debt collection agency refuse to remove it.
Also, I have been paying a credit card down £25pm with a payment arrangement. It’s the only one on my account in arrears which I have been paying for 17 months now and nearly at my ‘credit limit’ anyway. What would be the best course of action ie continue to pay the arrangement or, ask them to see about reactivating my account and start paying the interest if they will let me? In other words, how bad are payment arrangement markers!?
Any help would be really appreciated.
Kind regards,
Liam
Sara (Debt Camel) says
If a debt is sold to a DCA, the DCA should add a new record with the same default date. This is normal, it doesn’t harm your credit score as only one of the defaults is coun5ted. they should only remove it if EE remove the default.
Starting to repay the credit card debt in full will not remove the old payments arrangement markers. If the rest of your credit record was perfect, this might be worth doing but with at least one default, it will make very little difference to your credit score AND it will mean the balanace goes down a lot slower.
Do you have other balances owed apart from this defaulted mobile bill and credit card?
Yass says
Hi,
I have an account that is showing defaulted on my experian. It is under Npower. I had gas and electricity with them and we received an extortionate amount in mid 2014. They send our bill to DCA and as a result put the account as default. I received a notice in May 2018 as account being defaulted. My gas was defaulted in may 2015. I paid it on june 2018. Now the confusing part is that as i have been paying electricity since june on a monthly arrangement, they recently put it as default july this year. Are they supposed to do that ? I asked why did they not put both default in one date ? They said they have their own internal cycle and process hencewhy electricity was in default in July 2019. Can they do that while am paying it ? Now its all been settled. I asked them to remove the july default and they refused.
I asked them to put default the one back in 2015 as settled and they said. They will raise query although they cant promise. To me, they have done it on purpose with 4 years gap in between to ruin customers lives. Your input is highly appreciated. This is stressing me out.
Sara (Debt Camel) says
Are you saying they added a default date of July 19 when the debt had been repaid in June 18?
yass says
no it was defaulted in July 2019 while i was paying it monthly installment.
Gas was 162 pound which i paid in 2018 (this was defaulted in May 2015).
Electricity was 570 pound defaulted in July 2019. i agreed on monthly installment to pay electricity and it was repaid in December last month.
both bills came in one and my question is; why did they not default both accounts in 2015?
they did default each one at the time with 4 years gap.
David says
Hi
I had an electricity bill account in my name, I went through a break up and left the house I owned and at this bad time I wasn’t thinking about the name on the electric account. The bill didn’t get paid and it got passed on to pass due credit solutions. So far this was all fine, I paid them a lump sum as soon as I got to the bottom of what was going on and set up a monthly direct debit to pay off the remaining amount. 4 months later I have debt collectors phoning me saying the debt has now been passed on to them. I didn’t understand so I checked my bank statement, passed due took payments for 3 months and for some reason the 4th month failed. There was no reason for this so I phoned my bank and got told it’s because I was issued a new debit card. I was given no phone call, text msg or email about this, I wasn’t informed they tried to take a payment and couldn’t. They haven’t even attempted d to contact me and they have passed it straight on to debt collectors. I’ve been told it could damage my credit. This is obviously frustrating me because there was nothing I could of done about it. I wasn’t even aware they couldn’t take their payment as I always have adequate funds and I never miss any direct debits to anyone. Is there anything I can do about this? It feels it’s very unfair to black mark someone if you haven’t even informed them that a payment has failed?
Thanks
Sara (Debt Camel) says
You can put in a complaint and say that. Although technically your bill was already late being paid when didn’t pay it originally.
Sian Adams says
Hi Sara,
I have a complaint going through with Capital One for affordability. It currently is sitting with the FOS. They have now registered a default due to non payment. Are they able to do this whilst an active complaint is ongoing? I assume if upheld this can be removed?
Thanks
Sian
Sara (Debt Camel) says
If you win the complaint it should be deleted.
Have they frozen interest on it? Do you have other problem debts?
Sian Adams says
Yes i believe the interest has frozen since the default was registered.
I have had numerous affordability complaints that have been upheld. I am in the position where I can pay it off.
Victoria Holman says
I disputed a final bill that was issued for more than £1500 (after paying diligently by direct debit for 2 years) when I left Eon energy and the case went to court. The judge decided in Eon’s favour and I paid the outstanding sum. However, a year later I have just found out that Eon have still registered a default against me. Given the amount was in dispute I have been back to Eon and they refuse to remove it. Is there anything I can do? Given the amount was not unreasonably disputed (without going into all the particulars) it seems very unfair that they can do this. Can I do anything about it?
Sara (Debt Camel) says
You could add a notice of correction to your credit records. Probably not much else :(
Jacqui says
Hi I have 2 defaults that are due to clear, one next year and the other in 2022.
I am in a position to pay off the debt but have been told that it will disappear after 6 years so it’s not worth it.
I am still making minimum payments but want to know if I left it to drop off after 6 months will it state on my credit file that the debt was unpaid or does it totally disappear without a trace?
Shall I just clear it to be done with?
Sara (Debt Camel) says
Are you hoping to stop paying the debts when they have disappeared from your credit record?
You could always offer a “full and final settlement” – see https://debtcamel.co.uk/debt-options/less-common/full-final/ – so the debts would be settled but it would cost you less?
Samuel says
Hi,
I had three mobile call me for a debt of £19 I legitimately forgot about, I moved house a year ago an they only had my old address (which they have said they have sent a number of letters too).
Although they had my email and mobile they never contacted until I got a letter to my new address saying they have sold it to a dept collection company.
1: why could they get this letter to my new address but none of the ones before?
2: As they never attempted to contact me via any other means can I tell them to remove this from my credit score as i assume it will show as default now?
Thanks
Sara (Debt Camel) says
Well first of all, check your credit records with all three credit reference agencies! You can’t argue with a company when you don’t even know what they have done.
The debt collector will probably have located your new address through your credit records.
Lola says
Hi, I’m hoping to get some advice please . I’ve got a default on my cf from 2013, it from virgin media. I’ve noticed that they have changed the date of default to 2018. Are they allowed to do this ?
Tia
Sara (Debt Camel) says
No they can’t. Send them a complaint in writing.
Lola says
Thank you for your quick reply. I’m wondering if Equifax will remove it, as you can clearly see that the account defaulted back in 2013. I’m scared to contact them in case it resets the clock.
Tracie says
Hi,
I have a default showing on credit karma report following a repossession in January 2014. This is listed every month since then but I thought this outstanding amount was covered by my bankruptcy in 2009. My ex husband was a gambler who left me with £70k of debt following our divorce in 2006. He added £45,000 to the mortgage in 2004 which I didn’t discover until the divorce. My mortgage was with northern rock and they allowed me to remove him from the mortgage as I was paying the £450 monthly repayment without default. Due to the huge debt I was unable to pay it all off so ended up going bankrupt in 2009 but continued with the mortgage. In 2013 Northern Rock were not accepting new business so I could not get a new fixed rate meaning my mortgage went up almost double to £850 per month. Unfortunately my £32k annual salary was not enough to remortgage the outstanding £123,000 . As the house was in negative equity, my only option was repossession. I believed that as my mortgage was live at the time of bankruptcy then I was not liable for the shortfall. It is showing as a growing debt for the first 6 months then reduces this to around £5,000 (although the house was sold one month after repossession) How come this is showing on this record and how can I remove it?
Any advice will be gratefully received.
Thanks
Sara (Debt Camel) says
Hi Tracie, you are right that your mortgage was included in your bankruptcy. Read https://debtcamel.co.uk/credit-file-after-bankruptcy/ which looks at what should have been done and then has a section 2) Problems with mortgage debts which says what you need to do to get this corrected. If you have any problems doing that, can you leave a comment on that page please?
PS thanks for sharing all the details. I hope your situation is much better now.
Tracie says
Hi Sara,
Thank you so much for the speedy reply and your advice. Will let you know how I get on. Yes all is good now thank you.