“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.
Having a debt drop off your r4ecord because the default was over 6 years ago is the same in practice as having the default deleted.
Situations where the default should be removed
I am not saying these will be easy, but these are the most likely cases to succeed.
“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.
“I was never in arrears”
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. You can then check against your bank statements to see if you made other payments that weren’t recorded.
“The lender stopped taking the money”
Sometimes the lender stopped taking the monthly payment by direct debit or by continuous payment authority. You may have assumed the debt was repaid and only found out later a default had been added to your credit record. Here it is the fact that the lender stopped taking the payments that is important – you may be able to get evidence from your bank that you did not cancel the DD or CPS until months later,
“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 FCA /ICO if the lender refuses to correct it, see the above article about what the default date should be for details.
“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 FCA/ICO if necessary.
“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 should be changed to be earlier. That means it will drop off sooner, and your credit record will be clean sooner.
See “What should the default date for a debt be?” which describes how to get your record corrected. For many people this is just as good as getting the default deleted and it can be a lot easier.
Cases where you have to win the argument to have it removed
“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 this will work, sometimes it won’t.
Sometimes a lender will admit – or a court may decide – that a debt isn’t enforceable because it is statute barred. In this case a default should have been added to the debt more than 6 years ago, so you should ask for the default date to be changed so that it is earlier and then the debt will drop off your record.
When a creditor cannot produce the CCA agreement for a consumer credit debt it isn’t unenforceable in court. See Debts – why, how & when to ask for the CCA agreement for details – this does not apply to all types of debt. Here the debt still legally exists and you owe it even though you do not have to pay it – as a result the default will not be deleted.
“I should never have been given the loan as it was unaffordable”
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, large bad credit loans and even catalogues.
Hundreds of thousands of these complaints have worked.
Sometimes the lender will only remove “negative information” such as defaults and missed payments. Sometimes the whole credit record will be deleted.
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 was 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.
When it is very unlikely a default will be removed
“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.
“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 improve your credit score, but it will mean that more lenders are willing to give you credit.
When the lender has gone bust and can’t be contacted
This is a special case.
If the lender will not respond to the Credit Reference Agencies, then you can ask the CRAs to “suppress” the credit records. If this happens, although the records are still there, they will not be shown to any other lenders making a credit check on you.
Read How to correct credit records if the lender has gone under in detail and see if you think it can help you.
Don’t try to do this if the lender is still going. Or if it is the early stages of an administration – then it is better to put in a claim in the administration to get a refund for unaffordable lending. If your claim is upheld, the default will be deleted, and often the administrators just delete the credit record as it is simpler.
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Rosie says
Hi there – thank you so much for this post and the information on your site, it has been invaluable. I wonder if you are able to help with a query – myself and my partner are looking to move home in the next 12 months or so, my partner has credit issues on his file including a DMP, 2 x defaults registered in oct17 (and a further one from a debt collection agency that we will look to have backdated) and missed payments that were settled between 24 – 36 months ago. So, we will definitely be looking at a subprime mortgage if we do move – however, upon checking my credit report I have discovered I have a default from Apr19 through an energy company when I was querying a final bill. I assume I could ask for this to be removed as a) I was in contact with the company querying the amount and b) I recall seeing a final notice but am fairly confident I didn’t get sent a notice of default. My question is – would it be better to ask for this to be removed from my file as a default (total amount £662) or should I keep it on there as we are going to need a subprime mortgage anyway? We would be looking to get a 2 year term initially, meaning that when we come to remortgage all of the defaults, most of the missed payments and the registration of the DMP should have fallen off my partners record – but my default would still show, though it would be 48 months + old by that point.
Any advice very gratefully recieved!
Sara (Debt Camel) says
You do not have to be sent a Notice of Default before a default is recorded on your credit record. A Notice of Default is a formal notice given under the Consumer Credit Act – it has nothing to do with your credit record and it is not relevant for energy debts at all.
Has this default been repaid? Was it right or was the amount changed when you queried it?
Rosie says
Hi – it was fully settled, they agreed the useage looked wrong (the final month had been billed at more than double the next highest month) but said there was nothing they could do to evidence it as my first readings were submitted about a month after I moved over to them (so I think it was more that my total usage during the time I was with them was possibly overbilled). But I paid the full amount in the end.
Sara (Debt Camel) says
ok so you can’t ask to have the default correct as the bill was wrong. How long did all this take to sort out before you paid it?
Rosie says
I raised the initial query on 16th Jan, the final email from shell confirming they wouldn’t reduce the amount I owed was on 5th july and I paid on 22nd July (the total amount as per the original bill)
Sara (Debt Camel) says
Well you could ask them to remove it as a goodwill gesture pointing out that you paid it as soon as a decision had been made on your dispute. I have no idea how likely this is to work.
Shaun says
Hi Sara
I had success with the ombudsman. They ruled the 118118 money loan was unaffordable to me. The adjudicator ruled they have to repay interest and charges and all negative information including the default are removed from my credit file which 118118 money have accepted. The adjudicator was absolutely fantastic it was all dealt with and sorted within 3 weeks.
Thanks for your advice
Sara (Debt Camel) says
That is very good news
James says
Hi
I am trying to get two defaults removed from an account – I have discussed this before but can’t find that post. Background:
I had two Barclaycard credit cards that I was unable to pay fully. Back in 2009 Barclaycard sent me default notices on both accounts but they never defaulted the accounts as there were no CCAs on the accounts. A bit later they sold the debts to Link Finance.
In 2018 Link defaulted both accounts. I wrote off to Link last year offering them 20% of the balance (bearing in mind these are unenforceable accounts) for them to mark them as settled AND for them to remove the defaults. In the meantime I have been making token payments of £1 against each account.
About two months ago I wrote off to them giving them the same 20% offer to remove the defaults and mark the accounts as settled. They haven’t responded. On my credit report these accounts are just marked as ‘D’ each month for defaulted. If I was to stop paying the £1 token payment do you know whether my credit report would show a ‘D’ still against the account/month or would it show an ‘X’ for a missed payment? A couple of defaults on my credit record is bad enough but missed payments would make things worse – but I can’t see how Link can report both. I’m considering stopping the token payments to try to force the issue of getting them to maybe consider my offer of 20% on unenforceable accounts.
Many thanks
Sara (Debt Camel) says
so the default dates are in 2018 on both records?
Have Link confirmed the debts are unenforceable?
Did you ever ask Barclaycard to add default dates?
James says
Thanks for your reply
Yes, both accounts have default dates of 2018 – August for one and November for the other. Link haven’t confirmed that the accounts are unenforceable but Barclaycard confirmed that they were sold as un-defaulted and that they were unenforceable. I did ask for the CCA off Barclaycard many years ago when we got into trouble in 2009 and they didn’t have the signed CCA then. Should I ask Link for the signed copy of the CCA?
I didn’t ask Barclaycard to add the default dates to tie in with the original default date. Is it worth asking this? I did ask the ombudsman whether it was correct that a default notice could be given and then no default applied and then a default added eight years later – they said no wrong had been done and they couldn’t ask for the defaults to be removed..
As it is, the defaults ‘only’ have three more years to run so my credit score is creeping up, albeit very slowly – it’s currently near top of the Fair (Experian) and does fluctuate. I would prefer if the defaults weren’t on there at all though.
Cheers
James
Sara (Debt Camel) says
An Ombudsman case – was this against Link or Barclaycard?
James says
Hi Sara
The case with the Ombudsman was against Link. I did speak to Barclaycard and they advised that the reason they didn’t place the default was because the account was unenforceable and they said that it would have been unfair to do so.
Cheers
James
Sara (Debt Camel) says
did you make a formal complaint to Barclaycard?
James says
Hi Sara
I didn’t complain to Barclaycard – would it be better complaining to them? I did speak to the Ombudsman in person regarding Link who said that I didn’t have a case against them and also thought that I wouldn’t have a case against Barclaycard as it is up to them whether they put on a default or not. It did take quite a while from the initial complaint to Link to the Ombudsman finally coming back to me – something like nine months.
I hadn’t thought of tying to get Barclaycard to put the default onto the account at an earlier date. I was hoping to appeal to Link’s sensible side and offer them about 20% – about £500 in total – for the two accounts combined to get them to clear the defaults. I am assuming that this is more than they paid for them and it will be more than the remaining token payments that I need to pay whilst the defaults are on record – I have under 36 months left.
As mentioned earlier, Barclaycard advised the debts were unenforceable and when I asked for the CCA back in 2009 or 2010, they didn’t have it. I can’t see Link having found it since.
As Link have not replied to my latest offer of a payment I was hoping that if I stopped paying the token £1 payments it may make them realise that they either get 20% or nothing. However, if my credit report starts showing missed payments then this would be bad as it will show defaults plus recent missed payments.
Cheers
James
Sara (Debt Camel) says
yes I suggest you send a formal complaint in writing to Barclaycard, saying they did not treat you fairly by failing to add a default date because this has meant the unenforceable debt is still showing on your credit record. Ask them to add a default back in 2009 when they sent the default notice.
re Link, I suggest you ask them to produce the CCA agreement for the debt. Use the formal letter linked to in here https://debtcamel.co.uk/ask-cca-agreement-for-debt/.
If I was to stop paying the £1 token payment do you know whether my credit report would show a ‘D’ still against the account/month or would it show an ‘X’ for a missed payment?
once a debt is defaulted it will always show as defaulted. This won’t change if you stop paying it.
You cannot make link accept a low settlement amount even when they agree the debt is unenforceable. There is also no point in trying to get the debt settled if your aim is to improve your credit score – settling a debt in full or partially doesn’t affect your credit score.
If Barclays backdate the default, the debt is going to disappear.
Miss C says
Hi all,
I am in need of a little advice when it comes to a debt I have. The original creditor was Avant Credit and I took the loan out in April 2016, I struggled to pay the loan due to unaffordability (I sent them an unaffordability email that was advised on this website but they replied stating if this was the case then I lied on my application form therefore its fraud?! So I just left the complaint and continued to pay it). In May 2017 Avant passed the debt to Asset Collections and Investigations who I’ve been paying small amounts to since. In January of this year I had an email from ACI saying to avoid them putting the defaulted account on my credit report I should pay in full otherwise I should expect the default to be recorded within the next few months. I didn’t have the £1700 to pay in full so I had to continue with my repayments. Up until this month the account/default hadn’t been added. I have now had some money to pay the balance in full and have done so. I would like to know if there is any way I could have this default removed because A, I’ve been with them since 2017 and they’ve not recorded it since then. B, I’ve now paid in full. So even though the offer to not report it on my cf was back in January I’ve managed to pay it all now so would they do a good will gesture by removing it? What do you think? Any ideas? Thanks
Sara (Debt Camel) says
It is a shame you let the complaint drop – several creditors make noises about fraud but so far no one seems to have had a problem when they send the complaint to the Ombudsman. But it is too late for you to do this now.
You coild complain to Avant that a default should have been added when your account was 6 months in arrears. Ask them to back date it. If it is backdated to 2017 it will drop off in 2023, which is probably better for you than having the default removed, in which case the record with the payment arrangement showing will still be there until 6 years after the settlement date.
Miss C says
Hi Sara, thanks for such a swift response. I have checked one of my free credit reports and ACI/Perch capital have recorded the default on there as ‘start date 16th April 2016’ and ‘date of default 26th May 2017’. So would you say this is OK as date of default is 2017 so should drop off in 2023? Or could I still ask for the default to be removed as a good will gesture now I’ve paid the balance in full? (They need to update the balance to zero/closed as it is still showing as £1600). What would look ‘better’ for my file do you think?
Sara (Debt Camel) says
it will drop off in May 2023.
you said earlier
I had an email from ACI saying to avoid them putting the defaulted account on my credit report I should pay in full otherwise
did you check your credit record at that point? Was the debt entirely absent from the record at that point?
That default date doesn’t sound wrong does it?
I think the chance of them agreeing to remove a correct default date is pretty small. If it was removed this would increase your credit score as it would be replaced by missed payments or payment arrangements which are “less bad” than a default. But after Mat 2023, the missed payments will continue to show until it has been 6 years after the debt was settled, so they will be on there a lot longer than the default will.
Miss C says
Hi Sara, yes the debt was entirely absent. They basically said if I didn’t pay in full then the debt would be added and that was the only was to avoid it being added. At that point in time I didn’t have the balance to pay it off unfortunately. As I have been able to pay it in full now I wonder if they could remove it from my file entirely. Probably not but it might be worth asking?
Sara (Debt Camel) says
well you can ask. But you can’t argue that it was wrong to default the debt.
tina says
Hi, my query is about a default.
Well I had a current account with Natwest they decided to close my account last yr feb 2020 and I had an overdraft of £2500 with them. On my credit file I had all green ticks until April 2020 last yr they passed on the debt to Moorcroft . But in May 2020 last yr I started paying back to moorcroft on time each month , then in July on my credit file I got a D mark. Under April – June on my file it says missing payments but underneath each month the balance is reducing which means I was paying them back an amount each month but says I’ve missed payments obviously I haven’t as the monthly payment was going to moorcroft by direct debit.
I don’t understand why I got a default in July 2020 and then months after that up until this yr March 2021 each month had an “U” mark and “S” mark is on the final month that the debt was cleared. Can they just add a default even though I paid on time each month. I just don’t understand why I have a default even though I’ve made payments to moorcroft and the debt is now all settled. I can admit that I missed 1 payment in April as this was during lockdown and trying to ignore it as at that time everyone was just so anxious and didn’t know what was happening and the debt was passed over to Moorcroft.
But to say I’ve missed 2 and 3 in may and June and then D was marked in July I feel this isn’t right. (Payments was made )
can they still add a default on my file at later date ?
Thank you
Sara (Debt Camel) says
why did they close your account in Feb 2020?
tina says
Hi Sara ,
I’ve been in the overdraft for a few yrs but haven’t missed any charges but maybe only once or twice during those yrs I didn’t have enough money in for direct debits to go through but 98% of the time wasn’t over the limit. After an review of details and my income etc… sent in proof of wage slips etc.. they just sent me a following letter to say they have decided to close it.
Sara (Debt Camel) says
Was there a long period – a year or more – when you were in your overdraft the whole time? Never getting back into the black when you were paid?
(My questions may sound irrelevant, but they aren’t…)
tina says
Yes there was a long period where I was always in my overdraft but all charges were being paid even though I was still using the overdraft .
Sara (Debt Camel) says
ok, so one more question. When the account was closed, did you agree that it would be paid off at a certain amount per month? And were Natwest still adding charges/interest after it was closed?
What happened to your credit record sounds very odd.
tina says
Hi Sara ,
No no other charges were added on just the amount of the overdraft that I owed.
When they decided to close the account they sent me full pack of the terms and conditions and a letter that my account was to be closed down and they won’t tell me they reason why and and advised me to use another bank but not within the RBS group. So
Basically I was banned from opening one with them.
Opened 2 other current bank accounts on the high st with no problems at the time. They gave me a date of the account closing and asked to be paid in full before they close it down but no other option and said if not paid they will pass onto debt collector. And then in March I received the letter that it was going to be passed on. But March credit file had a green tick which shouldn’t be really cos feb they closed the account down . I think it’s odd too. I did speak to moorcroft and they said normally the debt is defaulted before it goes to them. So I don’t know why cos on my credit file it says missed payment April. Even if adding up the time frame between they close account onto MC would have been max 2 months. The last letter I got from them was this Yr April to say all payments paid and officially close the accounts and credit file updated.
Sara (Debt Camel) says
So I certainly think you can ask NatWest to backdate the default to the point it was passed to the debt collector.
BUT I think they may have behaved unreasonably in allowing you to be in your overdraft for a long period constantly. And then closing the account and demanding full repayment – yes that is in the T&Cs of an overdraft that they can, but to do this when they have contributed to your financial problems by charging you interest on the overdraft when they should have realised you were in difficulty was unfair.
I suggest you send them a complaint saying this. Ask for the default to be removed completely and for a rfefund of the interest and charges you paid from the time you were constantly in your overdraft. Send the complaint to the Ombudsman if they say No.
I will be writing a new article just on this sort of overdraft problem soon – look out for it!
tina says
Ok Sara thank you for your advice.
I will write to natwest.
Thank you so much.
Martin says
I live in Scotland and I have a default which is now over 5 years old. In my case the debt is now prescribed and unrecoverable by the collection agency. Should this be removed from my credit score or does it have to wait the 6 years before dropping off. I don’t feel it is right to still be punished when no action can be taken. Any thoughts would be great. Thanks
Sara (Debt Camel) says
The credit reporting rules are a history of your payment record.it doesn’t matter if the debt is enforceable or not, the history is kept for 6 years after a default. You may not think this is right but that’s the way it works.
Unless you think the default date should be earlier than it is, so it would drop off sooner, there is probably nothing you can do.
Martin says
Thanks, in my case they could and should have raised a default much earlier as they automatically took a payment from my tsb account and I had to tell them to put it back which kept delaying. All in all I have not made a payment to this account for just under 7 years.
Should I approach the doc and ask them to reduce the amount outstanding on my credit file to £0 as technically this is what is due.
Sara (Debt Camel) says
No, you still legally owe the money even when the debt is unenforceable.
But you can ask the original creditor to backdate the default, see https://debtcamel.co.uk/debt-default-date/. If that is changed to over 6 years ago the debt will immediately drop off your record.
Martin says
Thanks, according to experien I have not made a payment for over 7 years. In the past the bank would take payments without my authority and they would then have to put it back. This appears to reset the clock for missed payments but no payment was ever made. Should I approach tsb or dmc to question.
Sara (Debt Camel) says
Ask TSB to change the default to be earlier.
Martin says
Do I run a risk that making contact with TSB may be regarded as acknowledging the debt. I know it is over 5 years for Scotland buy don’t want the clock to restart.
Sara (Debt Camel) says
“In my case the debt is now prescribed and unrecoverable by the collection agency. ”
Did TSB or a debt collector confirm this in writing?
Martin says
Neither, it has been over 5 years since the default was logged. I have had no contact from either in 2 years. Should I speak to dmc to confirm this. Thanks
Sara (Debt Camel) says
I suggest you speak to National Debtline on 0808 808 4000. They have Scottish specialists.
Don’t speak to TSB or the dmc unless NDL says it is clearly statute barred.
Scott says
Hi, I had a loan with 118 118 money which ended up forcing me into a dmp as it was unaffordable, the debt was sold to azzuro associates after a couple of months who then a year later after purchasing added a default even though I’d made every dmp payment in that time, I’ve recently had a irresponsible lending complaint upheld with 118 who have cleared the remaining balance with azzuro which was just the interest left and refunded me too with what I had over paid and they’ve agreed to wipe the record for the loan off my credit file, my issue is with azzuro as I’m trying to contact them to remove their default record of the loan which was added a year after purchasing and when I was paying the interest on the loan which has now been wiped do I have a case for them to remove their default record? Thanks
Sara (Debt Camel) says
Yes a default with a debt collector should be removed. Tell. 118 to organise this.
Scott says
Ok thank you I’ll contact 118 and chase this up ASAP. Thanks Sarah
Scott says
Hi Sara I contacted 118 118 who said they would contact azzuro but it seems azzuro have just closed the account and not removed the default! Surely it should be removed as it was the result of an irresponsible lending claim and it was added a year after they bought the debt and when I was paying the interest which has now been removed? Do I contact 118 again and chase this up with them?
Really frustrating as this is the only default on my credit file and is really holding me back currently :(
Thanks
Scott
Sara (Debt Camel) says
Yes, tell 118 that you will be sending your complaint to the Ombudsman if this isn’t sorted.
Also send Azzuro a complaint email.
Do both!
Scott says
Hi Sara, so 118 have said that there reaching out to azzuro to query why the default has not been removed and azzuro just keep telling me there still investigating the matter and said they’ll reply within the 8 weeks don’t see why it 118 have reached out to them it needs investigating? Do I just sit and wait for a decision or take my case now to the ombudsman? Thanks
Sara (Debt Camel) says
I suggest you send your complaint to FOS 8 weeks after you sent it to 118.
Amy D says
I had a joint acc with HSBC. We were experiencing financial difficulties so we set up a debt management plan through StepChange and changed our bank acc to coop.
We paid the arranged payments for several years to HSBC, then once we sold our house we settled the remaining debt with them and closed the account. They have now been reporting the acc as still open and defaulted with a balance of £190 for over a year. I have phoned them several times only to be told all old accounts are closed and we don’t owe them anything. I raised a dispute with transunion and it came back that the info on my credit report regarding the HSBC acc was correct?! I phone the bank again and got the same info, they say all accounts are closed and we don’t owe them £190. Yet every month they continue to report this apparently defaulted and open acc. It’s destroying my credit score. What can I do?
Sara (Debt Camel) says
It is HSBC that has to correct this – you need to raise a complaint with HSBC saying that they are incorrectly reporting to TransUnion that you still owe a balance, despite HSBC agreeing with you on the phone that the accounts are all closed and settled. Ask them to correct the credit record. Send your complaint to the Financial Ombudsman if they refuse.
Amy D says
Thanks. Can I request this over the phone? Last time I tried to ask them to correct it, they just told me to raise a dispute with transunion. I feel like I’m going round in circles. Tonight they told me to go to my nearest branch (60 miles away!) and get a print out to prove my acc is closed. I refuse to do this when it’s not my fault.
Sara (Debt Camel) says
Well you could but it is better to put a formal complaint in writing. You could use thus form here https://hsss.hsbc.co.uk/ukpersonal/contactforms/contactus_complain.jsp?nrfb=false.
Follow up with a phone call if you have not had any acknowledgment in a week.
Say it is unreasonable to expect you to travel 60 miles to a branch when they have made an error.
Say your complaint goes to the Financial Ombudsman if it is not resolved.
Amy D says
Thank you, will do!
A says
Hi Sara,
I’ve been an Amex credit card customer for over a year and have never missed any payments with them nor have any been carried over. Every payment has always been made on time. Last week, I applied for a second product with them and this was approved. On the same day, my account was placed under review. They then contacted me again a few days letter saying my accounts would be cancelled due to them finding ‘negative external information’. I received a notice of default yesterday and it states that the agreement will be cancelled on or after 22/11. Since I have never missed a payment, can they do this ? And how do I stop them from placing a default next to my name in 7 days time.
One thing to note is that I do have a CIFAS marker next to my name unfortunately and it’s been 5 years since this was placed. I do believe that this is the reason they’ve cancelled my account. On this basis, since I’ve not missed any payments, can I prevent this default from being placed by Amex?
Thank you
Sara (Debt Camel) says
If you have never missed a payment and have a zero balance on both the old and new accounts then no default should be placed.
A says
Hi Sara
Thanks for your response. Would you say the best thing to do is contact them and ask to remove it ? If not, it would be the financial ombudsman next right?
Sara (Debt Camel) says
yes ask them to remove it. If they refuse, ask why.
John says
Hi, I got into financial trouble 5 years ago and entered a payment plan which runs for another 2 and a half years. On entering the payment plan after a few months all but one creditors defaulted me, obviously happy with defaults as they drop off after 6 years.
Now the problem being Barclaycard decided instead to mark my credit report every month since as ‘Arrears 1’. So at the moment I have 5 years of Arrears marked on that account. After trying to contact them they advised I go through equifax and report it through them only then for barclaycard to respond to equifax asking me to contact them directly. I haven’t done this yet as I’m really unsure how to approach it to ask them to default my account after they refused to entertain my request through equifax.
Am I right that this should be defaulted or am I wasting my time? Also any help on some wording would be greatly appreciated thanks
Sara (Debt Camel) says
Telling you to go through Equifax is absurd.
The SCOR rules say a default should be added when the account is 3-6 months in arrears, as the article above explains.
I suggest you tell Barclaycard either they agree to add the backdated default or you will. Send your complaint to the Financial Ombudsman.
John says
Thanks for your reply I will do exactly that.
One last thing why would it say ‘arrears 1’ every month for 5 years surely that should of changed to ‘arrears 2’ and so on until 6. Just wondering if there is a known reason behind this continuous marker other than to hinder someone’s credit further.
Thanks for your help Sara
Sara (Debt Camel) says
a lot of creditors don’t pay much attention to this sort of thing.
Miss L says
Hi Sara, I took a loan out with Avant Credit in 2018 which defaulted. It was passed to a DCA and it now has been paid off. I have checked my credit file and the debt is recorded twice there once with avant and one with DCA. Is this right!?! Kinda looks like two debts rather than the one
Sara (Debt Camel) says
It does look bad, but the credit scoring systems ignore the first of these debts. so it doesn’t harm you.
BUT Avant loans are expensive and were often given without proper checks that you could afford the repayments.
A loan is only “affordable” if when it is given it seems likely that you will be able to make the repayments and still be able to pay your other debts, bills and living expenses without having to borrow more money.
If this loan caused you difficulty very early on, then it may not have been affordable. In this case you can make a claim to Avant (not the debt collector) and you may be able to get a refund of the interest paid (including what you paid to the debt collector) and also to have the defaults removed from your credit record.
To find out more, read https://debtcamel.co.uk/refunds-large-high-cost-loans/ which has a simple template letter to start these complaints. lenders often reject good complaints, so just send it to the Ombudsman to look at if this happens to you.
Miss L says
OK thank you. I was going to make a complaint to Asset Collections anyway as they emailed me telling me they will reduce the debt by 10% if I paid in full and if I did this then they would keep any defaults off my credit file. For two reasons I feel this was unfair.. 1, They were aware I was on maternity leave at the time as I asked to reduce monthly payments temporarily as I was on lower mat pay-therefore why offer this when it’s clear I couldn’t accept. And 2, paying £1600 in full/having no defaults recorded if I did feels extremely unfair and unaffordable. Like a push, bribe or warning to pay in full?! I may be seeing this the wrong way but it definitely didn’t seem right to me.
Sara (Debt Camel) says
If you think the loan was unaffordable at the start complaining about that is a better approach as if you win it removes all the missed payment/payment arrangement markers. And removes all the very high interest.
I don’t think the Ombudsman will say it’s unfair to offer 10% off.
frogman says
Help please.
I have a default from barclaycard which defaulted in June 2018. The account was later sold to PRA and is now settled in full.
On my Experian, these are showing as 2 separate defaults, although the barclaycard one says its been sold to a CAIS member.
My question is – Is this the normal reporting system? wouldn’t a prospective lender see it as two separate defaults? if so, can I get one of either barclaycard or PRA to remove theirs?
Thanks very much
Sara (Debt Camel) says
This is absolutely normal and what should happen. Credit scoring systems and lenders should ignore the first default.
frogman says
Thank you very much once again Sara
Alex says
Hi Sara,
I had default applied by Fernovo (quidie ltd) on my file for an ex amount. I was in a DMP started in November 2018. Whilst repaying my debts via a DMP I sent a complaint email to Ferratum for irresponsible lending. We came to an amicable solution without going to the FOS and in their email they wrote the following
“To provide you with an incentive to close the account as soon as possible, we are willing to completely delete this account from your credit file, once repaid”.
I have accepted their offer and the full debt was paid back in August 2021 but still, a default was applied.
I have written to them an email regarding the complaint resolution and asking to remove the default. Do you think they should do it? if I would have gone ahead to the FOS with the irresponsible lending the adjudicator would have written to have any negative information on my credit file .
What do you think about it? if they do not account, can I escalate it to the FOS?
Sara (Debt Camel) says
Definitely.
They made you an offer and they have not kept to it.
Mike_p says
Can you do the opposite and ask a lender to add a default? I have a Nationwide credit card in a DMP and they have added an arrangement to pay marker, but a default would be a lot better for me as it will come off earlier.
I have already made an unaffordable lending complaint to them which they rejected and is now with the FOS, the AP marker appeared after I’d complained.
Sara (Debt Camel) says
Yes you can sometimes, see https://debtcamel.co.uk/debt-default-date/
But in yiur situation as all negative marks will probably be removed if you win the affordability complaint, I suggest you wait and see what happens to that.