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?
Nick says
Hi
After some advice please.
About 6 years ago i took on a mobile internet dongle on a rolling monthly contract at £7.50 a month. It was barely used and more or less sat in a laptop bag.
I moved to a new address 4 years ago. About a year ago I came across it and realised I never did cancel it, so I cancelled the direct debit. In November this year I received notification from a debt recovery company of a £30 charge on the account, so I paid this immediately. I have now been refused a personal loan for home improvements because the mobile company put the account into default. If they had written to me it would have gone to my old address as I hadn’t notified them.
It seems incredibly harsh to have my credit score slashed and refused a loan for this one black mark of £30, which was nothing more than a genuine oversight. Is there anything I can do about this?
Thanks
Sara (Debt Camel) says
You can write to them saying this, pointing out you paid it as soon as you were aware of the debt. You will be in a stonger position if you had other accounts with the mobile co so they did know of your new address. But as it is, you should not have cancelled the DD without informing the company.
Nick says
Thank you. I am with the same company for my mobile so will include that in my letter
Scott Harney says
Hi. I have a default which has been placed by o2. This happened because I took a phone contract with them for my younger sister. She then moved to Dubai in May 2012 and didn’t realise there was still a balance outstanding of £50 so they placed a default in November 2012. I have spoke to o2 and they are stating that if I pay this debt that it will stay on my credit file 6 years from now but Equifax are saying that this is incorrect and will be removed 6 years from when it is placed so I really don’t know what to do about this. Any help would be great please
Sara (Debt Camel) says
Equifax are correct – if there is a default date recorded on a debt on your credit record of November 2012, it will drop off in November 2018. In the mean time, paying the default debt starts the slow process of repairing your credit record.
Scott Harney says
Hi Sara. Thanks for the quick reply. If I live in scotland will it be 5 years that it’s removed or will it still be the 6 years?
Sara (Debt Camel) says
6 years – this has nothing to do with the time limit for a debt becoming statute barred.
James says
I have a default on my credit file, which I refused to pay because the debt wasn’t my fault.
The default comes off this year, They started the default on the 25/12/2011 but the debt occurred in ../05/2011 meaning 7 months later rather than the 3 to 6 months.
Can I get this changed ? If I do, will the debt collector put this through court so I will get a CCJ ?
I’ve not made any payments or had any communication via writing with this company and the last time I paid anything was in May 2011, does this mean my debt will be statute in May this year ?
Many Thanks
Sara (Debt Camel) says
If you are hoping to get through to the debt becoming statute barred you would be very ill advised to contact the creditor and ask for the default date to be changed as this would reset the clock for statute barring.
See https://debtcamel.co.uk/statute-barred-debt/ for more about statute barred debt – if you last paid in May 11, this couldn’t be until June 11.
Jo says
Hello,
Wondering if you can help. I have two defaults which are showing settled due to drop off my credit file next month do you know if this will improve my Credit Score instantly? I would love to apply for a mortgage asap and would be looking to borrow around 110,000 with a deposit of 60,000 on top of that. My credit score is currently 333 out of 600 and I have just noticed that it is not showing me on the voters roll but I am so will sort this tomorrow. All payments for several years have been on time and no arrears. Any assistance would be greatly appreciated.
Sara (Debt Camel) says
Yes your score should improve… but mortgage lenders don’t use this score, they all do their own scoring. You don’t say anything about your income or current debts, read https://debtcamel.co.uk/mortgage-with-debts/ which has a link to an affordability calculator.
Lisa says
I have just recently applied for additional borrowing on my mortgage only to be turned down because it says that I’m in arrears by 5 months on a o2 contract. I cancelled the contract back in June 2016. I have evidence of whom i spoke to on two occasions and they said o didn’t owe anything but now it is showing on my credit file. Can i get this removed and how do i go about getting it removed?
Sara (Debt Camel) says
I would hope you can get these removed. You need to put in a complaint to o2, not to the credit reference agency.
Lisa says
I spoke to a gentleman at o2 yesterday and he sent an email to the credit file dispute team but i have not heard anything back yet. If they do remove this from my file will it still stay on my credit file for 6 years?
Steve Brown says
I have been on a DMP plan for a number of years and never missed a payment.The default notice had gone of my credit file as it’s been over 6 years.The original dept has been took over by another company who are getting pain through the DMP plan,they have put a default notice on my credit file last month so it looks like I have just defaulted on the original dept this year.Is there any thing I can do to get it removed?
Sara (Debt Camel) says
You need to write to the debt collector that now owns the debt and ask them to correct the default date to the one the original creditor used.
Chris says
Hi, I currently have a case going to the Ombudsman. Its slightly different to a lot I’ve seen.
I had a credit card with MBNA. They rejected my payment offer through a debt charity and recorded late payments for 7 months until they eventually agreed the amount i was offering and the late payments reduced back down to the green markers.
I just have a few parts that i’m not 100% on.
1. With the ICO guidance being 3-6 months, do you think i will have much chance saying the account should have defaulted when it reached 7 months of late payment markers.
2. The account was sold to Moorgate but never defaulted. Do they have to default to sell to a debt collection agency. I presume they can just get round the rule in their t&c’s about reserving the right to sell the account at any time but just thought I would seek clarification.
3. Before the account was sold to Moorgate (Britannia) MBNA removed the service of the credit card. I have said this is a breakdown in the relationship between me and MBNA. Do you think this will be a strong argument.
I have also noticed there are a lot of people out there who are unhappy that MBNA seem to be purposely trying to penalise people for 12 years plus rather than 6 that a default would do.
Sara (Debt Camel) says
If the 7 months of “late payment” markers were actually 7 months of no payment, then yes, at the end of this period you were 7 months in arrears.
I agree that stopping you using the card suggests a breakdown in the original relationship.
Chris says
Thanks Sara,
Do you know of any cases with the Ombudsman where they may have said a account hasn’t defaulted but should have done, therefore telling the company to remove the record from a credit file.
Sara (Debt Camel) says
Here’s one: http://www.ombudsman-decisions.org.uk/viewPDF.aspx?FileID=118399,
Janice says
I had a similar situation nearly 7 years ago when both myself and my hubby got made redundant at the same time. MBNA were the hardest to get reduced payment agreements with but in the long run they have been the best. Barclaycard and Halifax defaulted the accounts both within the 1st year and the 6 years have just past and they dropped off my credit report. However MBNA sold the account after about 18 months to Moorgate who honoured the reduced payment and never ever defaulted the account. About 18 months after that Moorgate sold it to iDem who again accepted the reduced payments and never defaulted. I got a job quite quickly but it took my hubby nearly 4 years to get a good job again. When I contacted iDem to increase my payments and get the account paid off, they were fine, offered me a reduced balance to clear and reported it fully satisfied on my credit file. MBNA were the hardest to make an arrangement in the beginning but the fairest of every other company and have never been negative on my credit file………..you might be the same, if you keep making the agreed reduced payments they wont default your account
kirsty says
hi
had a dro in 2012 cleared in 2013 o2 where in that dro but state closed account but still in contract to oct 2013 charged termination fee early so from 129.99 bill went to 595.account not covered in consumer act 1974..are they allowed to do thia as it is a dro?
thank you
kirsty
Sara (Debt Camel) says
The fact that the debt isn’t covered by the consumer credit act is irrelevant. It’s not quite clear to me what has happened, I suggest you go back to the adviser who set up your DRO and check with them.
Ben says
Hi Sara, I have 3 defaults on my credit file with add up to roughly £1500.. in 2019 they would have all been defaulted for 6 years, would all 3 get cleared off completely and i would be debt free? just i am looking into getting a mortgage in the next 5 years. Thanks
Sara (Debt Camel) says
Yes, they will drop off after 6 years. But if the creditor has gone for a CCJ, that will stay for a further 6 years, see https://debtcamel.co.uk/no-calls-or-letters-about-debt/.
No, this doesn’t mean you are debt free… see https://debtcamel.co.uk/debt-not-on-my-credit-file/.
kirsty says
hi basically o2 have a default on my file 2012 but I had a dro in 2012 ended 2013 o2 have stated they will not remove from my file
as I was not covered by the consumer act?
I know this is not correct how do I move forward?
thank you
kirsty
Ben says
Thanks! so what would you suggest me doing? paying off the debts or waiting until they come off in 2 years?
Ritz says
I have a default from vodafone about 3000 pounds. They have sent letter to my old address around 2012, Default added 2012. The account update date is showing 2013 in credit report, does that mean that they will not chase me for it? I am just hoping to wait for 1 more year and default will go away. Can you please guide should I dispute with equifax, or leave it to vanish . I dont have any monies to pay them anyways.
Sara (Debt Camel) says
There is no point in disputing with Equifax, you have to complain to the creditor. Do you actually owe the money?
Yes the default will drop off in 2018. But the danger is that Vodafone – or a debt collector they sell the debt to – will go for a CCJ which will be on your credit record for another 6 years. See https://debtcamel.co.uk/no-calls-or-letters-about-debt/
If you have other debts as well, you should take some debt advice about your whole situation.
Ritz says
Hi Sara
If the account goes to collections, will they send me letters at old address or new address. In credit report it is showing at old address. Shoud I update my address with them . I am worried they will start chasing me, as off now they are no chasing me.
Sara (Debt Camel) says
If your current credit report is showing your old and new addresses, then a creditor is going to know where you live if they want to find you.
ritesh says
Thats what I want . If account goes to collection , they should send letter at new address. Before stage of CCJ , the company will try to send me some letters for collection. I will arrange for the payment if they want to. But until they ask for it , I cant pay them myself as I don’t have money.
JMac says
Hi there, I feel I am in a bad position with defaults. I originally had a loan with black horse ( secured ) who I defaulted on. They sold the debt to Cabot.
Black horse is no longer showing on my credit file.
But Cabot is showing default notices from May 14 to Sept 16, which is when I finally sold the house and manged to clear the debt in full against the secured element of the property.
My questions are, should cabot be showing the dates of the default as the original defaulted date which I had with black horse ? or will cabot record this from May 14 when they bought the debt from Black horse. ?
I have since sold the house and closed down all mortgage accounts and 2nd charge with cabot ( secured part ) but want them to possibly remove the default if it should align with the black horse default dates ? Please can you advise your thoughts to this, as Cabot have shown a default on my account across May 14 through to Sept 16 (when the house was sold and accounts closed ) , and not just once , or not just as the original Black horse dates.
Help.
thanks J.
Sara (Debt Camel) says
A debt purchaser must show the same default date as the original creditor.
Are you sure a Black Horse defaulted the debt? If it was sold more than 6 years ago it may have dropped off because it has been settled for more than 6 years rather than because it was defaulted more than 6 years ago.
JMac says
Hi . Morning . Thanks for the reply . Black horse had defaulted the debt more then 6 years ago . Which is now no longer on my credit file . But when cabot bought the debt in may 14. They now show the debt as defaulted each and every month until September 16 when I sold the house and settled the account due to try 2nd charge.
I hope that cabot have to use the same default date as black horse , so I can request it to be removed from my file ? Thanks again. J.
JMac says
Hi Sara can you advise where the legal wording or law is located where it states that Cabot are obliged to use the same default debt as the original debtor prior to them purchasing this debt off black horse.
Is this within the consumer credit act ?
Is there a reference number etc.. I can use in an email to cabot to try and sway them to removing this from my file ?
thanks again for the support.
raz says
hi my credit report is very very low and so I started paying off old debts as I was told this would make it a little better . I paying them on a monthly basis but they are putting red defaults every month!!! I’m confused is this going against me now and will the defaults take another 6 yrs to come off
Sara (Debt Camel) says
Once a default is added, another one will show every month until the account is settled or drops off. This would be happening even if you weren’t paying them anything. These later defaults may look alarming but they aren’t making your credit score worse and the record will still disappear after 6 years from the first default.
Charlotte says
Hi,
Me and my partner are currently looking to get a mortgage. I have recently gained access to our credit reports and noticed that a defaulted account from NatWest is still on his report even after asking them to remove it from 4 years ago. The debt was settled on 14/04/13.
The default occurred when my partner knew he was going to be away from his correspondence address so he rang Natwest to instruct them to take half of the balance then and there and to take the rest of the balance (£200) the following month and to close the credit card. They didn’t do this and subsequently the account was defaulted. When my partner finally realised the account hadn’t been paid (around 2 months after the account defaulted) he spoke to the Natwest and explained what he had asked they said ‘oh yes I can see a note was made on your account’ – this was 4 years ago.
How on earth do we go about trying to get this default removed? in 10 days we would like to reserve a house but with this default we will not be accepted for the mortgage we need. I have spoken to Natwest today and they are investigating it but it will take at least 5 days for an acknowledgement letter and even then I’m terrified they will find a way out of taking the default off!
Sara (Debt Camel) says
There isn’t much I can suggest except put the details of you complaint in writing. It’s a shame you didn’t follow this up in 2013.
Karl Kearsley says
Hi, I’ve recently looked at my credit file and I have 3 defaults from 2011-2012. I was made bankrupt in 2015 and discharged in 2016. I’ve contacted these companies who are now disputing these claims. I was just after some advise if they start being funny. Am I right in saying these loans should of been dealt with under the terms of my bankruptcy. Also if they do resolve them, will it have a positive affect on my credit report. As its currently ridiculously low and these defaults being a big part of that.
Sara (Debt Camel) says
Read https://debtcamel.co.uk/credit-file-after-bankruptcy/ which looks at clearing up your credit file after bankruptcy.
Any pre bankruptcy debts will automatically be included in your bankruptcy – just tell them the court, date and your bankruptcy number.
these debts should be marked as settled at your dischanged date. getting this sorted won’t make a huge difference as the bankruptcy marker on your records is still there, but it will help a bit.
Rosy says
Hello Sara,
I have checked my report and I have been defaulted on 5 accounts in 2013. I was not in the country from 2012 till 2015. Do you think I hvae chance to fight the case and get the default removed from my file?
Thank you
Sara (Debt Camel) says
You still have to pay your debts and keep your creditors if you are out of the country. And I am guessing you didn’t keep your creditors informed of your correct address, so it’s not their fault you never received the default notices…
If you are saying you didn’t make any payments after 2012, then defaults dates in 2013 don’t sound wrong.
shahida says
Hi Rosy
i have been in a similar position as you. How do you plan on resolving this issue.
thanks
shades
Sinead Mcguigan says
Hello I am looking for some advice,
I’m applying for a mortgage and have just completed my credit check, it came back poor.
O2 have placed a default on my account for £5.25 in July 2016.
I canceled my o2 contract (£15.25pcm), in Dec 2015 and paid the remaining balance and transferred my number to my new contract which is being paid by my parents, therefore in his name.
In January2016 O2 had taken 15.25, out of my account, in the meantime they cancelled the NEW account, I rang them, they apologises reactivated the new account and as “a gesture ofg goodwill” wiped the 15.25 from the old bill.
Now they have placed default on my account which is now affecting my credit score.
How can I get this removed from my rating as soon as possible?
Many thanks
Sara (Debt Camel) says
You need to complain to O2 explaining all the details. Hopefully they will have the the phone recordings so this can be resolved.
Simon D says
Hopefully you can advise me.
I defaulted on two credit cards due to a change in circumstances and they were subsequently sold to a DCA. The DCA issued county court claims and I defended these and they have been struck out.
My credit report shows the 2 credit card defaults with a zero balance in November 2015 and 2 DCA defaults in November 2016 with balances of c£7K and c£11K.
My question is can I clear some of these negative marks on my credit report by sending evidence to the credit reference agencies that they have been struck out by the courts? I’m sure the DCA will not just zero them because the lost the court cases even if I ask (or do they have to?)
Many thanks in advance!
Sara (Debt Camel) says
When did you first miss payments to these debts?
On what grounds did you win the court cases?
Simon D says
Last payment/default was mid 2015.
Case was struck out when claimant failed to supply any supporting documents as directed by the judge
Regards
Simon D
Sara (Debt Camel) says
The debts still exist then but they are unenforceable. The legal question is whether the unenforceability is “remediable” if the creditor was to locate the documents. The two legal cases in this area are Grace and another v Black Hourse Ltd [2014] and McGuffick v Royal Bank of Scotland [2009]. I am not a lawyer and I can’t give you advice on this. Sending information to the CRAs is certainly not going to help, they will just refer you to the creditor.
One option you may want to consider is offering a very low Full and Final settlement to these debts. That wouldn’t remove the default but would get then marked as satisied with a zero balance showing.
Simon D says
OK, that makes sense. I’ll look into the cases you mentioned and see where I’ll go from there.
Many thanks again
Chris says
Hi,
I have had a very good credit score until today. It dropped by 750 points over night as a default was added by Provident.
I did take out the loan (not for me, it was for my parents years ago) and I currently owe about £300 on it. They were assigned a new agent who failed to turn up for repayments. As a result we had numerous calls chasing us up. They were informed (and I’ve been advised calls are recorded) of the situation and we asked for a payment card to be sent as the agent was unreliable. They sent one and we started making payments again. Now I’ve woken up to a default on my credit file.
I wasn’t made aware that they were about to take this action and payments were being made again. I’ve contacted Provident who have raised it as a complaint and are currently investigating the matter. I’ve asked that the default be removed under the circumstances and offered to settle the account. Something I would have done if I’d been given any indication that they’d take this course of action.
I’ve worked so, so hard to build up my credit score to get a mortgage but now that’s looking extremelly unlikely. Is it possible for a creditor to remove a default?
Sara (Debt Camel) says
Yes it is possible, and in the situation you have described I would hope it will happen! If Provident refuse, you should complain to the Financial Ombudsman.
Chris says
Thank you. I’ve been in touch to add a notice of correction until I can get it resolved and Experian have advised that it’s not a default, it’s a delinquency. I’m still working hard to get it resolved but I don’t really understand what it is. I know it’s added when you miss consecutive payments (in this instance because the agent didn’t turn up) but what does that mean in terms of credit score? Will it rebuild month after month like it does after a application for credit? Or is it more serious than that?
Sara (Debt Camel) says
So it’s being marked as late payment? With no deafult date added?
If that is the case, it is not as bad as a default but it is still a problem for your credit record and it will continure to show for 6 years from the date the account is settled. I suggest settling the debt in full asap but still continuing to dispute the late payment marker with Provident.
dale says
hi
ive had a default on my credit report from Santander for the past four years and im aware they stay on your record for 6 years is there a way of getting this removed as I want my credit score to improve so I can get a mortgage in the near future.
thanks
Sara (Debt Camel) says
Has the debt been repaid? How long ago?
Chris says
Hi Sara, I currently have a defaulted account on my credit report which is due to drop off at e end of the year. My credit is poor due to this. How would you recommend increasing my credit score? Should I look into getting a credit building credit card, would there be any that would accept me with a defaulted but satisfied account. I don’t want to be applying everywhere as this will show on my credit file. Thanks, chris
Sara (Debt Camel) says
A credit building type card is probably sensible. See https://debtcamel.co.uk/bad-credit-cards/ for what to be careful with. You only want to apply for something you are very likely to get, here is an eligobility checker: https://creditcards.moneysavingexpert.com/?bad-credit&_ga=1.73507218.1281794890.1485205507
Chris says
Thanks Sara, my credit building card is on jts way and hopefully i will not muck this up. I plan to use it only for fuel then pay it off that day or at the end of the week. My current credit score is 668, i will post an update in a year to see if this has helped and hopefully it will be more promising.
Many thanks
Chris
Sara (Debt Camel) says
Would be great to hear how it works for you – good luck!
Lou says
Hi,
I have a default filed by Talk Talk. I had paid and transferred a remaining contract to my flatmate who paid by dd, no arrears. Over the phone it was all fully paid. I had no notice of the default until today. On the check it says they did not receive payment for 3months from when I transferred. Then a default and then a settled or satisfied symbol. It has stopped me getting any kind of credit. Even though no clue was on experian. I have called Talk Talk and they are investigating and I must call them again in 1wk as theres a ‘note of it’ on their system. No names or references. I want to get this default off my account completely. I think a week is too long and feel I should complain in writing in case they make another ‘mistake’. I have no account details at all. Can I go to an ombudsman or court. This is their mistake. I have a clean account with no debts or credit at all as I abhor it.
Sara (Debt Camel) says
It sounds like an error that should be soted. A week doesn’t seem an unreasonable length of time for them to look at it.
You can’t go to an ombudsman until the firm has had a chance to investigate and resolve this. You could go to court, but this would be very ill advised at this stage. Better to wait then go to the Ombudsman.
What sort of credit have you been turned down for?
Simon says
Hi. I wondered if it was likely that creditors would remove defaults if they have already been paid in full? I have three defaults on my file that will drop off in various stages over the next three years, but all have been paid in full, and show a zero balance. If I contacted them to ask that they remove them, would they do that, or do I have to wait until they drop off?
Many Thanks in advance…
Sara (Debt Camel) says
No they won’t – you have to wait until they go.
Jack says
Hi
I have a default on a Vodafone account
I was travelling and my brother was supposed to take over the contract,
It’s totally my fault I accept I was the name in the contract,
I paid the account in full on my return,
I’ve recently been made homeless and I’ve been declined for a mortgage due to the default,
Is there anyway or anything even as a goodwill gesture I could get this removed
It’s due to drop off in 2019 but I feel like I can’t wait this long and it’s made my score so low,
Please if anyone has had a default removed as a good will gesture ever?
Sara (Debt Camel) says
When did you pay the default?
Doug says
I lost my job in November 2011, after which I immediately got help from the CAB to offer lower repayments. HSBC agreed to this for my loan and credit card at the same time, however the date of default differs by 7 months. One was February 2012 and the other was September 2012. Surely these should be the same.
I have also found that on my credit report that they have put a ‘gone away’ notice on both accounts saying I’ve moved and not given a new address. Even though they have all my up to date contact details.
I was expecting the defaults to be gone at the beginning of 2018, but now it won’t be until September 2018
I don’t remember receiving any notice of default, am I able to contest both the default and ‘gone away’ notice?
Thank you
Sara (Debt Camel) says
It depends a bit how large the lower payments were compared to the normal payments on the account. The default date should actually be when your account got into 3-6 months arrears, see https://debtcamel.co.uk/debt-default-date/. If the agreed payments were small, then September 12 is too late and you should ask for it to be corrected to Feb 12.
Definitely ask for the Gone Away marker to be removed – that doesn’t affect your credit score but may mean you are declined for credit.
Doug says
Thanks for the quick response
The repayments dropped right down to £1 a month initially until we were back on our feet but I am still paying reduced payments even now.
So, it’s not likely to get the defaults removed but can definitely change the date of the later one? I ask because I have a catalogue that I have made arrangements to make lower payments with and on my credit file it specifically says ‘arrangement to pay’. Couldn’t HSBC also do this instead of a default. I’m assuming the ‘arrangement to pay’ marker would have less of an impact on my score?
When the defaults ‘drop off’ my credit file does that mean the debt is wiped and I can stop repayments?
Sara (Debt Camel) says
if you were paying £1 a month, then you would have been 3 months in arrears in Feb 12 and 6 months in arrears in Jun 12. So defaults should have been addewd between these dates – as for the September one to be moved back, you may as well ask to feb 12.
A defualt is MUCH better than an arrangement to pay when it is old as these are, because they drop off after 6 years. An arrangement to pay will stay for 6 years from the date the debt is repaid, so it will hurt your credit record for longer. You should consider asking if the arrangement to pay can be corrected to a default!
Doug says
You’ve been a great help. Thank you very much. I’ll leave you with one last question. Suppose I leave the arrangement to pay on the credit file and the other defaults clear, would my score still improve a huge amount? My hope is that if/when my score improves I’ll be able to get a loan to consolidate my other debts.
Sara (Debt Camel) says
How large are the debts you want to consolidate? Are these the defaulted debts? Are you buying or renting?
Doug says
Yes I would be consolidating the remainder of the defaulted debts and the debt that I have an arrangement with, along with my car finance. Around £12000 total.
I rent
Sara (Debt Camel) says
It makes no sense to consolidate debt where you are paying token payments and which has which has dropped off your credit record. You are a) incurring interest again and b) having a new. Debt added to your record, so if if something goes wrong you get a new default.
Instead I suggest saving up the money you would have paid to the loan consolidation and offering full and final settlements on the defaulted debts.
Doug says
I understand what you’re saying, but the loan would actually make me £100 a month better off (at the moment there is no money to save with) and would clear the debts quicker. Not to mention the fact that the catalogue (the one I have an arrangement with) are still adding interest, so I pay £30 but the interest is £60-£70. It’s a viscous circle and consolidation seems the best option. Debts cleared quicker and and financially better on a monthly basis.
Sara (Debt Camel) says
Put in a complaint about why interest is being added to the catalogue and ask for it to be refunded: see https://debtcamel.co.uk/creditor-wont-freeze-interest/. You have a very strong case because their interest is making your debt larger so take this to the Financial Ombudsman if the lender refuses.
Refinance your car loan to be cheaper if you must, but it can’t be right to refinance debts you are making a token payments to.
Dave Murat says
Hi, discovered your site today and its really useful.
Can you help me with a query. i part settled a defaulted account with Lovell in May 2016 (paid £1,000 of £3,000) and have since then (october) got a high rate credit card with aqua that i am paying off in full every month.
The default date is november 2011 So i understand it will automatically go in Nov 17 and i wont get a CCJ application as i’ve agreed settlement with them. (found this out from you today!)
I need to buy a new car as this one is on its last legs and was hoping to do that in June as its 12 months past settlment. A loan amount of 10k with a 5k deposit.
Am i being blindly optimistic? I have an experian score of 805 and no other credit accounts beside phone bill and car insurance direct debit. my income is 35k.
should i just wait for november or borrow from a car loan company that deals with bad credit histories? if the car makes it that far! which i need for work.
is there anything else i can do to improve my score credit worthiness now, my bank (co-op) wont upgrade my bank account despite being with them 10 years.
Thanks
Dave
Sara (Debt Camel) says
Getting a 10k car loan now is likely to be hugely expensive. I suggest your options are either to wait until your credit record is clear in Nov / Dec or buy a car for 5k cash.
As you have one high cost credit card, there is nothing extra you can do, see https://debtcamel.co.uk/two-bad-credit-cards/
Dave says
Thanks for the good advice, will try and hang on and keep the car alive ’til then.
mbrand says
I entered into a Scottish Trust Deed in Nov 2011 and was discharged in Jan 15.
I have a couple of questions:-
Some of the lenders are showing closed on my credit report as settled or satisfied (which is fine) but others and still showing open and defaulting every month. should this be the case.
Sara (Debt Camel) says
I am not an expert on Scottish debt solutions, but from the point of view of credit records, I think a Trust Deed works in much the same way as an IVA in England. See https://debtcamel.co.uk/repair-credit-record-iva/ for what you need to do. The firm that set up your Trust Deed should be able to confimr this if you ask them.
Simon H says
Hi, I’d like to echo some of the previous comments about how useful this site is. It’s been reassuring in parts, and given me some clarity in others. I wish I had found this site sooner!
When I was young, I got myseful into trouble with debts and ended up in a DMP to get them repaid, the last of which was fully repaid in December last year. I’ve since found that some defaults were registered on my account whilst I was on the DMP. On similar sites to yours that I had been reading, namely learnmoney.co.uk, it states “law states that before a default can be issued the lender has to send a default warning letter.” From reading your site, I now believe this to be untrue. For my own sanity, would you be able to confirm?
The learnmoney site advises of attempting to remove a default from your credit file due to having not been sent the default warning letter, and I’ve started down this process, so I’m really just trying to ascertain what the lender is legally obliged to do and whether I have any hope of removing the defaults before the 6 year period!
Thanks you for your help, I think it’s truely wonderful you volunteer your own time to give advice as you do.
Sara (Debt Camel) says
I’m going to quote Experian on this subject:
“Will I get a sent a default notice?
It’s good practice for a lender to send you notification that it intends to default an account and give you an opportunity to bring the account up to date. However a company doesn’t necessarily need to do this to record a default on your credit report.
This is because a default issued under a Consumer Credit Act (which would need a default notice to be sent) and a default recorded on your credit report are different things.
As long as the default recorded on your report accurately reflects events, and you were told when the account was opened that this could happen (usually covered in terms and conditions) then a company would not need to issue a notice of default.”
http://www.experian.co.uk/blogs/consumer-advice/defaults-credit-report-top-5-questions/
I will add that often having a default recorded is the best thing that can happen at the start of a DMP! Now those debts will disappear 6 years after the default date. Without a default, they will hang around showing arrears / arrangements to pay for 6 years after you settled the debt.
Simon H says
Thanks Sara, really appreciate the clarity. One of the lenders had marked payments as ‘AMP’ (in fact when I checked my credit file they had recorded this in Jan and Feb as well even though the debt was cleared in Dec!), from reading your other comments it seems like I’m best to ask them to retrospectively change this to a default. I’ll write to them and see how it goes. Thanks for your help!
Steph says
Payday have put my debt as settled on my file but i got a letter from another DC sayi g they have bought it will! This now go back on my credit file as owing can they buy a settled debt
Sara (Debt Camel) says
Did you think the debt was settled? Do you mean PaydayUK?
Steph says
No but it came off my credit file last month and is now under settled loans and they have put satisfied at side but another company as sent letter stating they have bought it will this be legally owed to the new company yes it’s payday UK and will it go back on my credit file next month
Sara (Debt Camel) says
This is what normally happen when a debt is sold to a debt collector – the original creditor marks it as settled and the new creditor adds a record for it. Otherwise you would have the same debt showing twice on your records. See https://debtcamel.co.uk/sold-to-dca/.
Dod you borrow several times from PaydayUK – or other payday lenders? Because if you did you may be able to get a refund for interest you paid and defaults removed from your file if your loans were “unaffordable” – see https://debtcamel.co.uk/payday-loan-refunds/ for details.
John Smith says
Hi..I have two entries on my credit file from Lowell who are e debt collecting agency, the original debts where with Capital One and Aqua back in 2013/2014. For some reason on their records they have my date of birth wrong, I don’t that I got into trouble with these credit cards and the amount owing on both is only about £200 each. I am not denying that the debts are mine but is there any way I can have them removed because they are reporting the debt with incorrect date of birth as I am desperate to secure a mortgage for my family in the coming 6 months.
Sara (Debt Camel) says
No. They are your debts, the birth date error doesn’t change that.
Kane Baker says
Hi,
Im 22 saving for a house and i wasnt sure why my credit was taking so long to improve.
T-mobile have defaulted a sum of £36 ( they say is my last payment ) on my account for 15 months, i was never informed by t-mobile of the debt, my address or any of my contact details haven changed in this time.
Even by their records they say that the last contact they had with me was Nov 2015 when my contract finished.
I paid all my bills on time by direct debit but now over a year of defaults on a tiny amount is really affecting me.
Is there any legal standing i have to get the defaults removed ?
Thankyou.
Sara (Debt Camel) says
First of all, do you agree £36 was actually owed at the end? Did you cancel a direct debit, how did it happen? If you don’t owe the money, disputing it can be the easiest way to get the default removed.
If you think you do ow the money you need to pay it now and put in a writen complaint to T Mobile that they had all your contact details but they never notified you of the debt so it is unreasonable to default you. And take your complaint to the Information Commissioner’s office if they reject it.
Kane Baker says
My contract with T-mobile ended and i decided not to renew for another term. They charged me after my number was ported to another supplyer and apparently i was sent a letter ( that i never recieved ) after that time. I wasnt sent any reminder letters, emails or phone calls about any of it.
The sum is more than what my contract is worth and i have already spent more on the charge by the minute phone number i had to use to talk to someone about it.
I was supposed to be called today between 12:30-13:30 but no call. The sum is never the issue, its not a big deal of money but the affect its had on my credit is much much worse.
I’m not sure if i legitimately owe the money or not, obviously they are saying i do but i had a different call centre worker tell me i dont.
Any advise?
Sara (Debt Camel) says
Put in a complaint saying you don’t beleive you owe the money and even if you did, you were not informed of the debt or later reminded about it.
Kane Baker says
I’ve heard that companies may remove a default if it’s tiny like mine is. How likely is this ?
They are telling me that 2 letters where sent but i hadn’t received a single notice of anything owed.
Sara (Debt Camel) says
It’s possible but I wouldn’t say it was likely.
Mark says
Hi,
I’ve looked online for an exact answer without success! Hoping the wise DebtCamel can lead me through my debt desert to an oasis answer! I got a Debt Relief Order on November 21st 2011, which was discharged (according to my credit file) on November 22nd 2012. Two questions, if I may –
1. Will the DRO drop off my credit file on “start date” (2011) or discharge date?
2. There are only 3 debts (which were included in the DRO) still showing on my file. All 3 defaulted over 6 years ago. Is there any way I can get them removed from credit file, or do I have to wait till the DRO itself drops off well over a year later?
3. If I can get the three defaults removed, how do I go about it when I’ve no idea what my account numbers were on the old telecoms, bank accounts x2.
Many thanks for any advice you can offer.
Mark
Sara (Debt Camel) says
1. it will drop off 6 years after the start date so Nov this year
2. the debts will drop off 6 years after their default dates. It sounds as though that is before Nov this year? You can’t speed this up
Mark says
Thanks Sara for answers, and such a quick reply. That’s great news!
Best regards.
Mark says
Sara – could you please clarify if it’s possible for a default to be placed on an account AFTER it was already included in a DRO?
I have an HSBC account which started missing payments in February 2011, but they haven’t actually applied a “Default” until June 2012! (It the account was included in my DRO which began Nov 2011).
Thanks.
Sara (Debt Camel) says
See https://debtcamel.co.uk/repair-credit-record-dro/ for how to get this corrected.
Stephanie says
Hi,
I’m looking for some advice regarding a default that was applied to my credit profile by O2.
I had a phone and an ipad contract with them but early on into the contract I had major issues with the phone. It wouldn’t make or receive calls and I had to physically go into an O2 store to notify them of the issue as my phone wouldn’t even ring them. After a lot of too-ing and frowing, I decided my only option was to end the contract.
I handed in my devices and sent them a letter detailing the issues I was experiencing and requested the contract to be terminated because of this and the lack of help they were giving me.
I never received confirmation (absolutely should have chased it up) so I just assumed it was all sorted and that was the end of it. I had got a new contract with a different company and I wasn’t tormented by O2 and their customer service departments.
It’s only recently when I come to apply for a job in a bank that I was informed they cannot employ me due to adverse credit management. It transpires that O2 have sold my ‘debt’ to a recovery company and O2 have applied 3 separate defaults to my credit file, ultimately preventing me from gaining employment and future credit.
I have written to the customer complaint review team and the credit file referrals department hoping they can rectify this and remove the default. I’m even willing to bargain and potentially pay a ‘buy out’ fee just so I can get these defaults removed.
I’m still waiting for a response from both departments, but I just wondered if you could give me some advice on what I should do if O2 continue to be as unhelpful as they have been.
I don’t think the defaults accurately portray a true account of my relationship with O2 and I feel they shouldn’t have been applied, given that I don’t have the devices and they were informed in writing of my intention to cancel due to the issues. Before the defaults my credit report was unblemished.
Any advice would be really helpful.
Thank you.
Sara (Debt Camel) says
I too think they should have replied to your letter. If you don’t get this resolved, I suggest you go to your local Citizens Advice for help with this consumer issue.
Ken m says
i have checked my credit history and found i have 2 defaults on the same problem vodaphone, i am currently paying it of through lowell dept consolidation but have another default from someone i dont no about the same vodaphone bill (only ever had one vodafone phone)
Sara (Debt Camel) says
I suggest you contact the other debt collector and ask them why the debt is showing on your credit record.
James says
This site looks great..
I have two defaults in the year 2012 and in this month March 2017 I paid those two debts to the Debt recovery agency fully around £4000 and i have no CCJ’s. I hope those two defaults drops off in the year 2018 and my question is whether my credit score increases once after defaults drops off or do I need to wait for another six years from this month because of clearing my debts this month? Please Advise
Thanks
Sara (Debt Camel) says
Hi James, your score will improve when the defaults go, 6 years after the default date, so in 2018. I’m writing a new article at the moment on how much your credit score may change – it will be out later today so look out for it!
Ted says
Hi, NPower added a default to my account about 18 months ago. When I was a customer or their’s, I set up a direct debit, nothing came out of my account, I rang on a number of occasions, they wouldn’t take the money over the phone, but instead tried to set up a direct debit again. Finally, we got there, they took money by direct debit, but far too much. I rang to complain and was instructed by them to contact my bank and file an indemnity claim, which I did, but this then resulted in the default.
After numerous complaints, which to no avail, I contacted the ombudsman. They investigated the issue, decided that NPower had indeed had poor customer relations and instructed them to give me a letter of apology and £50 goodwill payment, however, the default remains as I did still owed them the money at the time. I settled the amount before going to the ombudsman as soon as the amount went into default, the third party which dealt with the debt were really easy to deal with. The total amount was £293.
My credit rating has always been spot on until this event, now according to creditexpert it is 539 out of 999 (very poor), is there anything that I can do? Whenever I call NPower, they say the relevant people are not available and will call me back, they never do.
Sara (Debt Camel) says
– email their Chief executive paul.coffey@rwenpower.com
– make a nuisance of yourself on their twitter and facebook accounts
– write to a national newspaper
S says
Hi Sara, on advice from this site I did an Experian credit record check. It has come back with some inaccuracies, including someone listing my address as a previous address to apply for credit with M&S Bank. The problem is I was living at my address when they applied for credit and do not know the person. M&S Bank has said their records are correct and Experian has suggested I pursue it with M&S Bank. In the meantime I can add a notice of correction to my credit record. Please can you advise what I can say in 200 words. Also, why is the burden of proof on me to prove a potentially fraudulent entry and not on M&S Bank? Thanks in advance for your help.
Sara (Debt Camel) says
For another person to be showing on your credit record there needs to be some financial link between you – otherwise you would see the details of one of your adult children or your flat mates.
I know you said you didn’t know them, but did they fraudulently apply for a joint loan or joint bank account with your name? Have you looked in detail at your credit records from experian – there should be some connection showing. If there isn’t, you need to challenge Experian, not over the M&S loan as such, but more over the fact that Experian have linked it up with you.
Once you find the reason for the link, that is then what you need to challenge.
S says
They apparently lived at my address but it was when I was living there and I am still living there and do not know this person. They now live at a different address in the north of England. M&S Bank say this information is accurate so Experian say it is for me to challenge but in the meantime while I write and wait for a response I can put a correction notice on my record. Can you suggest a form of words for this? Also how do I prove that this is potentially fraud?
Sara (Debt Camel) says
You need to go back to experian and ask why their debt is showing on your credit record as you have no financial association with them.
S says
Great. Will do, thanks Sara
J says
Hi. I had a debt relief order organised by CAB in 2013. One of the debts was an overdraft with Lloyds. CAB advised me to stop using the account, open a new one with credit union and get benefits/direct debits going in and out of the new account. I did as they said. I never had any letter from Lloyds since they (I assume) received the debt relief notice. On my credit report it states now that I have a defaulted account with Lloyds. Is that correct? I didn’t get a letter asking me to pay off the overdraft as I would have given my debt relief number. Also, I may be a bit nieve but I thought the debt relief meant any defaults were removed after the year was over?
Sara (Debt Camel) says
Hi J, I have written a seperate article on how to clean up your credit record after a DRO – it’s here: https://debtcamel.co.uk/repair-credit-record-dro/.
B says
Hi there,
I used a debt arrangement scheme to manage several debts I had. I entered into this in October 2013. I have 6 defaults, all starting Oct/Nov 2013. The debt arrangement scheme told me even a manageable interest free overdraft had to be included (1 of the 6 defaults I now have). 2 are for debts of £125 and £120 that I was told had to be included. I paid the debt arrangement scheme off about a year an a half early in a lump sum in April 2016 – as far as I know no negotiating was done on my behalf for paying off debts early.
Is there anything I can do about these? I am in a much better place financially and responsibly use 2 credit cards to try and improve my credit score as well as now have car finance through Blackhorse. My credit score is very slowly improving by these defaults are killing it and preventing me even considering a mortgage etc.
Any advice would be great! I suspect I may have to just wait until 2019/2020 :(
Sara (Debt Camel) says
I can’t see any reason why the defaults should be deleted?
Your credit score should improve slowly – from Nov this year all your defaults will be over 4 years old and that may give a small improvement. I hope your credit cards have a zero balance, using and repaying them each month? That gives the biggest boost to your credit score. See https://debtcamel.co.uk/credit-score-change/ for some guideline figures.
As the defaults are all over 3 years old then it’s possible you may be able to get a mortgage sooner than 2019. Some lenders don’t mind old defaults that have been settled more than a year ago. You could talk to a mortgage broker perhaps early next year about this?
B says
Thanks Sara,
I guess I had hoped that because all the defaults were placed after I went into the Debt Arrangement Scheme they might be able to be removed – depressingly enough what seemed like a good solution at the time has actually made me worse off in the long run. Is it standard for a default to be placed after going into a debt arrangement scheme?
Do you think it is worth the effort of me writing to my old creditors and playing the sympathy strategy, asking if they can remove the default on basis it was a small amount (5 of 6 were under £250) and they were paid off much earlier than agreed by the DAS?
Yes I have been using both cards for groceries and petrol, not exceeding 50% of my limit and paying off in full twice a month.
Thanks so much for your great advice, I will speak to a mortgage broaker – until now I just assumed there was no chance.
Sara (Debt Camel) says
I am not a DAS expert, you could talk to the adviser who set up your DAS if you want. If you had stopped making payments or paid reduced amounts it may be that the defaults should be earlier than th start of your DAS, then they would go sooner, see https://debtcamel.co.uk/debt-default-date/.
A wilson says
Hello I have a default from 02 showing up from 2013. I did miss payments as was out the country at the time but later payed the amount off in full . Since then I’ve had a load of credit from different sources which have all been payed on time etc
Is there anyway to get rid of this as I would like to apply for a mortgage soon ? Or will it stay until 2019 ?? Also will it mean I won’t get or less offered on my application for mortgage ?? Thanks
Sara (Debt Camel) says
You haven’t suggested a reason why it might be deleted. But see my previous reply to B – you may still be able to get a mortgage if you go through a broker.
Alison says
I have discovered from my experian credit report that T-Mobile show me as having an unpaid bill – it shows as being from just under 24 months ago. Having contacted them they eventually tell me it is from a wireless dongle I had. This was cancelled by me in either December 2010 or January 2011 but they dispute this and say the account remains open. As it’s so long ago I have no paperwork any more. All my mobile accounts have been paid in full by direct debit so I dont’ believe there should be any balance outstanding. Also I have never received any bill, invoice or letter stating any unpaid amount nor request for payment from them. I am at the same home address, with the same email address and same mobile phone number in all this time.
Can they really demand payment after more than 6 years without ever presenting a request for payment before? Why would they not register the unpaid amount until just under 24 months ago? If they insist this is when it occurred then it must either be a mistake or fraud as I haven’t had a sim card or device from them since January 2011 if not slightly longer ago.
They refuse to talk to me as I can’t pass security – I don’t know the number or type of contract and I’ve tried guessing but they constantly say I’ve not passed security. I’m at stalemate and losing patience fast.
Sara (Debt Camel) says
You need to put in a complaint to them in writing explaining all this. Say you do not acknowledge the debt. Say you have never had any letters or rails about the alleged debt and that you dispute owing them anything. That although you had an account with them you closed it in Dec 10 / Jan 11. Say you are unclear if the alleged debt relates to this old account because you can’t get through security on the phone, ask them to Reset security. Say if it does relate to that old debt then it is statute barred.
Alison says
Thank you for your quick reply. I’ll write another letter of complaint but this time add that the debt is statute barred. It’s either that, a mistake by them from 2 years ago, or fraud.
Marcus says
Hi there I have a default from the money shop for £257. It only appeared on my file in November 2015 while the loan was taken in July 2013. Is there anything I can do here? The default has the date 2013 on it but was only added two years after I took the loan? I paid it in full immediately when I saw it appear on my file and it’s now marked as satisfied .
Thanks !
Sara (Debt Camel) says
You can ask for the default to be backdated to 2013, see https://debtcamel.co.uk/debt-default-date/.
If you borrowed a lot from the money shop (or any other payday lenders) see if you could get a refund: https://debtcamel.co.uk/payday-loan-refunds/. Not only could this get you some money, but if the loan that was defaulted is decided to be “unaffordable” the default will be deleted!
Amanda says
Hi there I checked my credit score on noddle a few days ago and to my surprise I had a default on my credit from Vodafone. I have never had bad credit to my Knowledge until this, so I tried to call them to find out what had happened and explained that I had cancelled on 15/08/2016 over the phone and they billed me on Sept and Oct, then I cancelled the direct debit because I had cancelled the service. After 3 hours on the phone they told me that I did give them a 30 days notice of cancellation on that date over the phone but unfortunately it was not put into the system and my account was left active, that’s why I kept being charged. Vodafone did not contact me once about the monies they thought I owed or I could have got this resolved a lot sooner. My credit history implied that I was in default of £126 and Vodafone said that they would rectify this.
Becuase this is all their fault that this happened can I ask for compensation? What should I do if they don’t fix my credit rating? Do you think I can be reimbursed for the October payment.
Sara (Debt Camel) says
From what you have said, it sounds as though you shouldn’t have been charged for October so yes, you can ask for a repayment. I suggest you email them a complaint https://www.vodafone.co.uk/vodafone-uk/complaints/form/ rather than start another long phone call. Explain the problem, say that on the phone on DD/mm/yay they agreed they had not logged your cancellation correctly and said they would to remove the default from your credit record. Add that you also want a refund of £x for the amount that was incorrectly taken by direct debit in October. You can also ask for compensation for the excessively long phone call you had to make.
Sarah Chapman says
Hi,
I cannot get any credit at all due to my ex husband. We are now divorced but still have a joint mortgage. We separated about 5 years ago and he remained in the house (throwing me out without any choice in the matter). I have found out that the mortgage is behind plan and in arrears. I have contacted the motrgage company to explain I dont live there but I cannot get myself removed from the mortgage because I am seen as another name to chase for the money. I dont have enough money to fund going to see a solicitor about this. I did have very good credit before this, but this looks bad on my part now even though its not my fault. People may think I am on the mortgage so its my responsibility but I have my own home and bills to pay so this is not possible. I would just like to get my credit rating back if anything. I cannot even get an overdraft with my bank its that bad. Any advice would be greatly appreciated.
Many thanks
Sarah
Sara (Debt Camel) says
There is no easy way to get your name removed from a mortgage. I suggest you go to your local Citizens Advice or Law Centre and ask about your options.
victoria says
we have been trying to get a mortgage ,but been declined due to something on our credit report.checked it over and have a default loan on there with santander.this was wen we started our iva in 2010,this should be clear now so rang them and asked them why it was on thereand they put the dates down wrong saying it was 2012 when we defaulted.so rang them and theyve admitted it was there mistake and should be cleared so theyre going to have it removed..but we dont know how long that we take.but due to there mistake it is getting our mortgage decline…not happy
Sara (Debt Camel) says
I am sorry to hear this, I would it will be resolved in a few weeks. This is why I always suggest people coming out of bankruptcy / IVA / DRO check their credit records have been correctly updated. And that people should check their credit records BEFORE they apply for a mortgage.
Dec says
Hi there. I was declared bankrupt in Nov 2010. Recently I’ve received letters from a DCA requested payment of a pre bankruptcy debt.
I sent the DCA a letter and my bankruptcy order about 5 weeks ago explaining that this debt was included in my bankruptcy. I’ve heard nothing from themin response.
I checked my Experian credit file yesterday and they’ve added a default for September 2011 on this debt bringing my credit rating from excellent to poor. I’ve recently had a mortgage accepted and am moving into my new build property early July – this could jeopardise it ? Before I applied for mortgage my credit file was prefect – there was no defaults or negatives. Can you advise on what I should do, please? I’m absolutely gutted about this. Thank you so much.
Sara (Debt Camel) says
This has a template letter to send to tell them to change the default date to Nov 2010 – it should then disappear.
Your mortgage – have you exchanged or are you at the Arrangement in Principle stage? Does the lender know you have been bankrupt?
Dec says
Thanks for answer Sara. I have mortgage sitting ready, solicitors instructed etc and am just waiting on house being completed by builders. I’ve to give builders 10% (non refundable deposit) next week and am now worried about this. I have not told the mortgage company about the bankruptcy as when I applied for the mortgage I was post 6 years and that was the question they asked on the application – have you been declared bankrupt in the past 6 years – answer was “no” as I was 6 years and 3 months when I applied.
Sara (Debt Camel) says
OK so you haven’t exchanged – it is possible your offer will be withdrawn :( If you went through a broker, I suggest you talk to them first thing tomorrow and ask for their advice. If not, well it’s a hard call if it’s better to tell the lender what has happened or to hope it goes through without them noticing :(
Dec says
Thanks for advice, Sara. It is a difficult one and it’s added a lot of undue stress. Before releasing the funds, will the mortgage lender do another credit check? During mortgage application they were very thorough with their check.
In theory this is the fault of the DCA who were informed of my bankruptcy and given the court documentation but decided to act, I feel, in an unjust and unfair way. Is it worth exploring this with Experian to see if they could remove / amend default? It took 5 years and 8 months for a default to be added to credit file when it will drop off in 4 months. The DCA had been searching my credit file and I’m wondering if they’ve seen I’ve applied for a mortgage and this was a gesture to scupper it, knowing they weren’t getting any money on this.
Sara (Debt Camel) says
If you only have an AiP/DiP then it has to go through full underwriting which will usually involve more credit checks before this is a formal mortgage offer. It is possible this has already been completed, it’s hard to tell.
Experian will just refer the matter to the DCA. And the DCA has been incompetent, not deliberately difficult, they aren’t going to make any money whatever happens, so why would they want to spend time doing this and then knowing they have to correct their error?
Dec says
I already have a mortgage offer that has went through underwriting etc and all the credit checks including a hard credit check.
In relation to DCA – is there not a legal obligation to ensure accuracy? And / or rectify inaccuracies?In theory they’ve ignored a court order and acted outside the law.
Sara (Debt Camel) says
If this has been through full underwriting you should be OK.
The DCA will correct this. If they don’t you can go to the Financial Ombudsman, or indeed the courts but that would probably be slower than going to the FOS.
It’s not reasonable to say they have ignored a court order. That suggests there was a court order telling them to do something. They have failed to follow the ICO guidelines on defaults after bankruptcy which isn’t the same at all.
I know this is annoying and worrying. But the easiest, quickest and cheapest way to get this resolved is to complain to the DCA.
Dec says
Thank for advice Sara. Would you have the template letter you refer to above that I could send the DCA and ask them to change the default date? Thank you again.
Sara (Debt Camel) says
oops sorry, details of what to put in the letter (it’s not a simple template) are here: https://debtcamel.co.uk/debt-default-date/
Victoria says
Hi!
Wondered if you can help?! Few years back I got into bad debt with southern water, due to the fact I became a single mum etc, times became hard and it was easier to forget about the bills that came once a year. In total I owed £2557! They marked my files as default. Once I got back on my feet I contacted them arranged a payment plan (back in 2013) where my payments each month covered the new bill and also took some debt off the existing debt, 4 years on I’ve managed to keep all bills up to date and also bring the existing debt down to £654. I have been looking at getting a mortgage but know this will not be possible due to the flags of red being added to my Experian credit report each month and although I have not missed one payment since setting up the plan it still shows as default as I still have the current debt with them. Is it possible they may be able to take the default off if I can get the outstanding debt paid off and I have also always paid on time every month? Many thanks. :)
Sara (Debt Camel) says
No, sorry, your credit record is meant to be an accurate history and you clearly did default on these bills. the debt will disappear from your account six years after the first default date recorded. You need to repay this debt asap. Once it has been settled for over a year, you may be able to get a mortgage.
SaRiAs says
check your Terms and Conditions and make sure you agreed to account information being shared and recorded with credit reference agencies. write to southern water and ask them for a copy of your terms from when you first signed up with them and read them thoroughly. if there is no mention in the terms of you agreeing to your data being shared with credit reference agencies (or any other third party etc), ask southern water why they are doing this…
Sara (Debt Camel) says
Water charges are billed under the Water Industry Act 1991. There is no requirement for a customer to sign any T&Cs before water is supplied or billed for.
Jodi-leighy says
Hi I have about 4 defaults on my credit score from around 2007/2008 they was from the provident I didmt think they mattered with credit scores . I recently began paying these debts to improve my credit to hopefully get a mortgage with my partner ? We done a aip online and was told we could have a mortgage with 5% deposit ? Would this be because of my partner ? Or would we get so far and be told no because of my defaults ? Thanks
Sara (Debt Camel) says
Defaults disappear from your credit record after 6 years – what credit report are you looking at that shows these old defaults?
Jodi-leighy says
I’m looking at noddle ! This is really getting me down is this because I’m paying them now ?
Sara (Debt Camel) says
Are you sure these debts have default dates showing (rather than say arrears)? what are these dates?
Jodi-leighy says
I’ve not actually noticed I just know they say default will it make a difference?
Sara (Debt Camel) says
yes. If a default date has been added, a record should drop off 6 years afterwards. If you are having trouble understanding your report, you could go to your local citizens Advice and ask for their help.
Jodi-leighy says
It says updated then a date which is 2017 and default ? They are from 2009 these defaults so is it because I am repaying them that it is showing so recent
Sara (Debt Camel) says
Once a debt has had a default date added, it will be recorded as in default every month. You need to find out what the first default date showing on the credit record is.
Dan says
Hi I have a default on my account from BT because I never paid a £221 cancellation fee for my internet which I think is way too high for a cancellation fee. Are BT aloud to default my account over a cancellation fee? If so is it their discretion to remove it if I pay it all in full?
Sara (Debt Camel) says
Yes. They can use their discretion when they want, but it would unusual for them to remove a default just because you paid the debt.
Ash says
Hi,
I have an energy bill which my flatmate did not pay, which then defaulted. I had no idea about this until I ran a credit check. Upon hearing about the default I contacted the energy company and this was then repaid. In the e-mails that i exchanged with the company they advised me that once paid the default would clear however it does not look like this is coming off my report. I had no idea these bills had never been paid in the first place and the fault lies with my ex-flatmate. Is there anything I can do about this?
Thanks
Sara (Debt Camel) says
Put in a complaint to the company, attach the email where they said the default would be deleted.
Ash says
Thanks Sara, i did that and the person who replied to my email said they didn’t have “the authority” to remove the default and that I should contact my credit reference agency?
Sara (Debt Camel) says
Which is the firm?
Ash says
British Gas
Sara (Debt Camel) says
You could try their twitter account @BritishGasHelp . Or email the CEO mark.hodges@britishgas.co.uk.
Ash says
They have given me a number i can call, so I am going to try that. You’d think given that I am the one who approached them as soon as i heard about the unpaid bills they would cut me some slack!
Andy B says
Hi,
I took out an IVA in February 2010 which has now completed as of March this year. During this IVA our financial picture became worse forcing us to hand the keys back to our property in 2013 as we could not negotiate any more with the lender with debts spiralling. We had a massive shortfall in the property as negative equity and house sold at auction for a pittance contributed towards. The outstanding debt from this c120000 was added to IVA and now this should be written off however it is showing as a default on our credit file while everything else has vanished.
My question is this; Should this be removed as it was classed as part of the IVA or because it’s still technically within the 6 year period as it was settled mid IVA then do we have to wait longer for this to come off the credit reports?
Sara (Debt Camel) says
Normally for IVA debts you want to check the default date is on or before the start of the IVA and that the balance owed is set to zero and the debt marked as satisfied, see https://debtcamel.co.uk/debt-options/guide-to-ivas/ for details.
But here you hadn’t defaulted on your mortgage at the start of the IVA so I don’t think there is a case for having the default backdated to the IVA start date. If the lender has added a default date which is the date of the auction, you could argue that this should be earlier at the point you handed back the keys, or the date it was agreed to add this debt to your IVA if that was earlier.
What a pity you ever started the IVA and didn’t go bankrupt instead.
John says
Buying a phone for my 10year old daughter I took out a mobile contract with Talk Mobile. I then went to Carphone Warehouse to upgrade the handset. Carphone Warehouse advised I switch also to a new ID mobile contract, which I did thinking Carphone Warehouse would cancel the contract they originally sold me. so with new phone and new contract the old handset was confined to a drawer. Unfortunately, the contract was not cancelled. Talk Mobile apparently sent regular texts to advise payments were due / outstanding. Remember the user, had the texts ben received was 10 and not the contract holder. After 5 months Talk Mobile put the matter in hands a debt recovery agency who sent by post the first piece of correspondence informing me of the debt. After calls to Talk Mobile to ascertain whether I did indeed owe them money, less than £40.00 I paid the outstanding amount immediately. It was too late, unknown to me Talk Mobile registered a default which as I was in process of moving house, caused my lender to withdraw their mortgage offer and started a frantic effort to secure a new lender, which I did but meant a later completion. What was most infuriating was that Talk Mobile had my email and my address but did not try to use either to alert me to the issue. Apparently there policy was to text, even when the user might be (was in this case) a child. Ridiculous ! Can I ask them to remove the default.
Sara (Debt Camel) says
This seems well worth a complaint to me. If they knew you were paying the bill, then they should have informed you before issuing a default.
Iggy Dias says
Hi
I hope you can advice. Myself and my wife entered IVA in 2013 and made regular payments. In 2015 I managed to settle IVA in full. All my Lenders took the default of my credit report except Halifax. Is there a way I could request Halifax to take the default of my file? As I can’t get any contact details to contact Halifax regarding this matter.
Sara (Debt Camel) says
This article looks at how to clean up your credit records after an IVA has finished: https://debtcamel.co.uk/repair-credit-record-iva/. Halifax shouldn’t delete the default but it shoukd be marked as satisfied with zero owing. And the default date will on or before your IVA start date.
Iggy Dias says
Thank you for your prompt reply the link you provided had really good details.
Bart says
Hi I have a quick question. Thanks vertymuch for this site – it is really useful.
Last year July I went into default on three CC accounts – RBS, Nationwide & Capital One due to losing my part time income and my marriage imploding (former spouse was main breadwinner and refused to help me service my debts)
I am now in position to fully settle all the debts, but am considering partial F&F to save some money. I am trying to get the Defaults removed in exchange for full settlement, as I think if the defaults remain then having a Partial Satisfaction flag won’t make any difference to my credit record (which was excellent before all this happened). My question is if I do a partial settlement, will the unsettled balance still reflect on my credit report?
So far Nationwide have said the balance will be set to £0), but Capital One have said the unsettled balance will still be shown on my report. RBS haven’t said anything on this matter.
Thanks
Sara (Debt Camel) says
Your credit score will be unaffected by how you settled these defaults, partially or in full (or indeed if you settle them at all). It is going to remain low until the three defaults drop off 6 years after the default date in 2022. See https://debtcamel.co.uk/credit-score-change/ for more about this.
But settling the debts will mean you are more likely to be given credit in future. Lenders don’t actually use the Experian, Equifax, Noddle credit scores – they look at the details of your credit history and make their own mind up. And many lenders sensibly prefer you to have settled your outstanding debts! Some of these lenders may care whether you settled the debt in full or partially, but for many others all they want to know is that this previous debt problem has been resolved.
It is highly unlikely any of the lenders will agree to delete the default in exchange for a full settlement.
If you partially settle the debts you should make sure the lender agrees in writing that your offer is accepted in final settlement of the debt and also that they will not sell on the remainder of the debt to other firm. See https://debtcamel.co.uk/debt-options/less-common/full-final/. The lender will them mark the debt as partially satisfied, with zero owing.
I will add that as your default has been very recent and thedebts haven’t yet been sold to a debt collector you are unlikely to get a low settlement amount agreed.