“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.
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.
“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.
“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.
“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 is 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 so the default will not be deleted.
“I should never have been given the loan!”
Many thousands of defaults have been deleted from credit records in the lest few years when people have won affordability complaints about guarantor loans, payday loans etc.
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. Here is a comment from a reader who made a successful complaint against Satsuma, a payday lender:
I accepted Satsuma’s offer on 2nd January and received the cheque on 17th January. The negative information already removed from my credit file as well which made my credit score jump by 100 points :)
“I was in an abusive relationship”
Many people, usually women, have been pressured to take out credit for a partner or had a joint account with an abusive partner. Financial abuse is now recognised as a serious problem and most banks now subscribe to the Financial Abuse Code of Practice published in 2018.
If you feel the debt and the default resulted from an abusive relationship, I suggest going to your local Citizens Advice and asking for their help to see if the debt could be written off and the default removed.
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.
Pay a defaulted account to help credit score?
Is an unknown debt on your credit file?
Improve your credit score for a mortgage
Gavin says
Hi, I have a loan with Swift Stirling who are to be closed down by the liquidators on the 06/11/2020. Swift Stirling sent me a email stating no further payments will taken from the 06/11/2020, so if you do not pay the balance by this date you credit file will notified to default payment. This is unfair as it can take upto 6 years for defaults to be removed from your credit file and it is not my fault Swift Stirling went into administration before I could repay my loan. Is there anything I can do to remove the default due to this being the lenders fault and not mine?
Sara (Debt Camel) says
did you have previous loans from them? What date was your default?
Tom Smith says
Can you please help. I had two direct debits bounce by my bank for car finance. Payments were due 15th of the month, I effectively missed payments on 15th May and 15th of June. I then paid all the arrears by 28th June, but I’ve been issued with a default for £20k plus. Does this seem fair? Do I have a chance of removal?
Sara (Debt Camel) says
No that doesn’t seem fair. From what you have said, you were never 3 months in arrears. I suggest you put in a complaint and ask for the default to be removed. You can take this to the Finanical Ombudsman if they say no.
Nil says
Hello Sara
I have 2 CCJ’s on my account from 2016 and 2017. I recall paying those when I receievd the letters and set up a payment plan with the companies. Is there any way of getting these removed as I didn’t think they would go on my account if I paid the CJJ and came to a repayment plan with the company.
I was made redundant twice and wasn;t in a very high paying job at the time and fell behind. Is there anythig I can do to get these removed? I would like to get a mortgage at the end of next year and think these will make it very difficult.
Sara (Debt Camel) says
A CCJ will stay on your credit record for 6 years unless it is paid in full within 30 days.
Setting up a repayment plan will have stopped the lender trying to enforce the CCJ (through bailiffs or deductions from your wages) but it doesn’t get it removed from your credit record.
You will find it extremely difficult to get a mortgage at a half way reasonable rate with 2 CCjs I am afraid.
Nil says
Does it make any difference that they were for small amounts around £1000?
Sara (Debt Camel) says
You would need to talk to a broker about that as it will be lender by lender. For many high street lenders the answer is probably No, it doesn’t make a difference. Especially at the moment.
Dan says
I had a joint loan with my ex wife. The monthly payment came out of my account, and no payments were missed for 5 years. With two years still to go to pay off the loan, my ex filed for an IVA without my knowledge, causing the loan to be passed to the collections team and the loan to be defaulted. This is now on my credit file for 6 years. Neither my ex nor the bank informed me that the loan was being passed to the collections team so it came as a complete shock. My ex went through an agency to process the IVA, who contacted the bank to stop the direct debit from my bank account (again, without my knowledge). As soon as I found out about this, I paid off the loan in full. However the default remains for 6 years. Do I have any case for having this removed from my credit file? My credit score is impeccable and I have never missed a payment on any debt. I’m worried this will affect a future mortgage application. Thanks in advance for any advice.
Sara (Debt Camel) says
The IVA firm told your bank to stop a payment? Why did your bank agree?
Dan says
To be honest, I have no idea. The IVA firm was working on behalf of my ex, and I only realised there was an issue when the monthly direct debit did not come out of my account as usual.
Sara (Debt Camel) says
It’s more likely the lender stopped taking the DD then, not the bank cancelled it.
Have you put in a complaint to the lender?
Dan says
I may have been incorrect to say the IVA firm requested the bank to stop the direct debit, but they did contact the bank to inform them of the IVA and therefore the loan was passed to the debt collections team (without my knowledge). Apologies for any confusion caused. It’s a lot to get my head around. Thanks for your help
Dan says
Yes I have put in a formal complaint and waiting to hear back. However, the bank have stated over the phone that they had no responsibility to let me know of changes to the loan because the other person named on the loan (my ex) had requested changes via the IVA firm.
Sara (Debt Camel) says
OK so your argument is that you had joint and several liability for the debt, your ex’s IVA did not remove your liability and so the bank should have continued to take payments from you. It is unreasonable to default you when you were willing and able to continue with your contractual repayments.
Take this to the Financial Ombudsman if the bank doesn’t correct your credit record.
Dan says
Thank you very much for your help Sara, I will do this. Your advice is really appreciated.
Chris says
Hi, shot in the dark here but was wondering tou could help. I had a default from a store card three years ago. It was a buy not pay 12 months later. My faylt it was something i had forgotten about. I had joined the military just before that 12 month period and had to go away for three months basic training and was not at my previous address so could not reply or correspond to any of the letters that was sent. Do you think this is something i could ask to be removed as i had paid as soon as i found it when i was on leave and travelled home. Cheers
Sara (Debt Camel) says
You could ask as a gesture of goodwill, serving your country etc etc. But technically the default if correct.
Blooming says
Hi Sara
Very good news to share. I wrote to Barclays and they have responded with a lengthy 2 page letter. They were apologetic due to the delay in responding to my complaint but they supported my complaint and as there never was a default added to the account, Link had proceeded to add one in line with their procedures but they will ask them to remove their entry. Barclays too will be removing their entry but it should take about 8 weeks. They also noticed that interest had been charged for a couple of years while I was on a DMP so they would be refunding me this interest along with an amount for the delay in responding to my complaint. Xmas has definitely come early for me and i only have you to thank for this. Thank you so much
Blooming
Sara (Debt Camel) says
Well done!
Blooming says
Hi Sara
Checked all 3 CRAs this morning and all traces of link and Barclays have been removed even in the closed accounts! Mu credit score has lept up as a result of this. Thank you so much for all your help. Really, really grateful x
Graham says
On the 28th April 2017 my Step Father was taken ill, I temporarily relocated from my home in Wales to Dorset to care for him. I used my Lloyds Debit Card at a Pay@Pump, this caused the current account to go into an unauthorised overdraft of £33.10. I returned to Wales on 25th November 2017 to find several statements from Lloyds showing the overdraft (£33.10) had escalated to a debt of £221.01. A default notice and account closure letters were there to greet me. I wrote to Lloyds debt recovery unit explaining and complaining. The Debt was then transferred to their collection Company Hoist Finance. Fast Forward to 2020 and Covid-19; I run my own small business which did get adversely affected by the original lockdown in April / May 2020, I applied for an overdraft and then a CBIL, both refused. Having explained to my business bank manager this situation they agreed to progress the CBILS and advised me to pay this account and then get the default removed. So I paid in full, and sent a further registered letter to Hoist Finance / Robinson Way asking them to confirm it is NOT in their power to remove this default from my credit record. The reason I want them to clarify this point is I am in the process a raising a detailed complaint with the Financial Ombudsman and need to know if this should be addressed solely at Lloyds or applied to Hoist Finance / Robinson Way. Any comments on my situation would be gratefully received.
Sara (Debt Camel) says
I suggest you complain to Lloyds. You may find this hard to win though.
Nigel says
If you remember I had a complaint with nationwide on 21 October 2020 to remove a default I added to it on 29th October.
Most complaints are dealt with in 5 days
Why nationwide taking so long, when they have all the evidence from call,I understand they have 8 weeks
I no I have no option but to wait, it’s just that it’s stressing me out
If you remember all they need to need decide weather to remove a default, surely they get complaints like this all the time
They didn’t even say, it’s because there busy, they said they haven’t been able to make a decision and hope to by first 10th November, now sent a new letter out saying they hope 28th November I apprictiate at least there not keeping me in dark.
If it’s taking long time does that mean better chance of success
Sara (Debt Camel) says
I don’t think your case is that simple. I doubt that taking longer means you have a better chance of success – it either means it hasn’t been looked at or that it is complicated.
Nigel says
Thank you, can I ask what could be so complicated, regarding removing a default
If they messed up remove it, if not explain why they didn’t.
For example if you worked for them I’ think you would be able to make a decision straight away.
Sara (Debt Camel) says
As I said before:
“You can try to complain and say this unfair, they never told you about the default, they say they should never have given you a payments holiday and you are happy to set up a payments arrangement if they remove the default. You may not have a strong case, but it’s worth a try.”
Nigel says
Which I have done plus more, quotes form there and fos website
I think I have a strong case how come you think I don’t
Sara (Debt Camel) says
I said it’s not simple.
They are not obliged legally to tell you about adding a default. It isn’t clear to me if a payments holiday was in your best interest. Anyway a lender wasn’t obliged to consider in detail if one was before giving it. I have no idea what the phone conversation record shows.
This isn’t me you have to convince and there is no point in asking me any more questions about this.
John says
Hi Debt Camel
I bought a house in May 2017; prior to moving in, we notified Bulb Energy that we wanted them to take over the existing energy supply (from First Utility – now Shell Energy). They did this in June 2017 and I paid my first Bulb bill on the 23rd of June.
Bulb liaised with First Utility for the account to be closed (they could do this as I was not in arrears etc – had never had an account with them before. I never received a final bill from First Utility/Shell yet, in October 2017 I was contacted by a debt collection agency for £81.70 which was claimed for the final bill (never issued). I immediately called First Utility and asked that they issue me the bill so that I could see what the usage was and if it tallied with my final readings when we completed. They didn’t issue it for 2 months and when they did I paid it immediately. Yet I was given a default as they had instructed the debt collectors and when I appealed I was told that they couldn’t remove it (even if they wanted to) as I had spoken to the debt collectors and therefore the default was ‘good’.
Does this sound fair? I mean, an ‘inherited’ utility account, which I immediately switched from and they never issued a final bill which I then got chased from and as soon as I was I engaged with the company just to be told ‘non’.
Thank you,
JP
Sara (Debt Camel) says
No it doesn’t sound fair at all. Have you spoken to Bulb about when they took the account over?
John says
Bulb took the account over on the 23rd June yet First Utility maintain that they were supplying until the 30th June – yet I have a bill/statement from Bulb showing standing charge and usage since 23rd June.
Sara (Debt Camel) says
I think you should take this complaint to the Ombudsman. Your local Citizens Advice can help with this.
John says
Hi Sara
I had actually raised it again with Shell and, miraculously, they have agreed to remove the default from my credit files and this should be done in the next 2-5 days.
Would you have any idea of the increase I may see in my score for a default being removed which, as of today, is 2.5yrs old?
Thank you so much for your advice!
Sara (Debt Camel) says
See https://debtcamel.co.uk/credit-score-change/ which gives some rough numbers but it depends a lot on the rest of your credit record.
Sarah says
Hi Sara. I have a question please. Does a lender (in my case, Halifax) have a legal obligation to send a notice of default (i.e. give warning that they will default my account if I don’t take action) before a default is placed on my account? I am asking because I did not receive any warning and I would have settled the debt immediately if I had been made aware. This is in relation to a joint loan, and I am unaware if my ex partner received any notice. Thank you.
Sara (Debt Camel) says
Who was paying the debt, you or your ex?
Sarah says
The monthly payment came out of my account every month and he would send me his half every month. The loan was in both of our names. He must have got into some financial difficulty because the loan was defaulted. However I don’t know any further details as we aren’t in contact. If the bank had given me warning about the default then I would have settled the debt to avoid the mark on my credit file (which has been impeccable until this point) :(
Sara (Debt Camel) says
So did they stop taking the debit from your account? Or are you saying you had made all the payments to the debt and they still defaulted the account?
Have you asked them why the account was defaulted?
Sarah says
Hi Sara, yes they stopped taking the payment. I didn’t know why until I rang them and they said the debt was passed to the collections department. My ex has run into financial problems.
Sara (Debt Camel) says
You need to send them a complaint and ask why they stopped taking payments. Ask them to remove the default as you did not stop paying them, they stopped paying you.
Sarah says
Thanks Sara, I’ll do that. Fingers crossed they will remove the default.
Coral says
I opened a student overdraft with Santander back in 2012, they passed my details onto a third party debt collector which I am paying off. Since then they are continuing to default me which is ruining my credit score. Are they allowed to do this? Can you advise a number of who I can call to speak to to seek advice on how to improve my credit score. With this also I have been out of the country for the last 4 years which means I’ve not taken any credit out in my name. Currently not eligible for a credit card, phone contract etc and would like to get my score up to change this. When looking online I am completely overwhelmed with information as I really don’t understand how credit scores work or the right person to speak to.
Sara (Debt Camel) says
Did you carry on making payments while you were out of the country?
Are you sure the debt shows as defaulted, with a default date? What is that date? Or does it show as having missed payments?
Coral says
Hi, thanks for getting back to me. Missed payments whilst I was away but eventually set up a payment plan with a third party debt collector. On clear score it is telling me that my Santander account is ‘in default’ which was updated in October 2020, no missed payments for a long time so I’m totally confused. Do you have any advise on the next steps to take?
Sara (Debt Camel) says
I suggest you look at your Equifax statutory credit report, not Clear Score. See https://www.equifax.co.uk/Products/credit/statutory-report.html
stella says
Npower as put a defunct on my credit report despite the fact that i have paid the full amount in July 2020 but my credit report is still showing the defunct amount. Because of this i am not getting mortgage. Please i need advice
Sara (Debt Camel) says
=Was your July payment just paying arrears from previously, or have you never missed a payment to them?
How large a % deposit do you have a for a mortgage?
Steph says
Hi, I’m in the process of applying for a mortgage and have run a credit search with Check My File. I have spotted two things that are frustrating.
Firstly, EE have added a default notice (for 5 months of arrears). I had closed my account with them and moved my phone contract over to 3, I’d paid my final bill and when closing my account asked if there was anything further they needed from me, to which they said no. A few months later I received a letter to say I had an outstanding balance so called immediately and paid the £18 off (for what I don’t know but was keen to just settle it as I’m really conscious of my credit score). It’s really unfair that this is listed as a default when I was unaware of it and paid as soon as was notified, do you think they will remove this?
Secondly, I had a joint account with an ex partner when we lived together. To my knowledge the account was closed when we parted ways (I had to sign a document to close this and he said he would sign and hand in to the bank). There is no reason for me to believe this wasn’t actioned. I’m still financially linked – can I get this tie removed from my record?
Thank you.
Sara (Debt Camel) says
How old was the EE default?
is the joint account appearing on your credit record as open or closed?
Steph says
The EE default is from 2018, it’s showing as 5 months in arrears if that makes a difference. The joint account is showing as closed, thank you.
Sara (Debt Camel) says
if the EE record shows as 5 months in arrears, that is not technically a default. It should be showing now as closed with zero owing?
Steph says
It is showing as zero yes. You’re right it is arrears rather than default but still showing as adverse credit on my record. Thank you.
Sara (Debt Camel) says
OK so you can ask EE to remove the “in arrears” marker because you asked them if there was anything more to pay and they said no. Arrears arent as bad as a default as as the amount is tiny, I would hope it wouldnt cause a problem for a mortgage application. Go through a good mortgage broker not direct to a bank.
re the joint account, this article says how to ask the credit reference agencies to sever the link with your ex: https://debtcamel.co.uk/splitting-up-finances/
Steph says
Thank you so much, I will get on to it!
Ben J says
I had an informal overdraft reaching £500 that I left for 6 months with hsbc a couple of years ago. at the time I had a serious gambling problem and had requested on two occasions to not have the ability to go into an informal overdraft for this reason, to which they refused. the full informal overdraft was gambling deposits. I repaid the default once I realised they had defaulted me and sent it to a debt collector. Can this be removed as I pretty much warned them I had a gambling problem at the time and didn’t want the unnaranged overdraft for that reason? Now with another bank and free of gambling
Sara (Debt Camel) says
Yes, that sounds a good reason for a complaint. How did you tell them you had a gambling problem – phone, email, secure message…
Ben J says
I believe it was a secure message
Charl says
Hi, I am currently looking at getting my first house I have just applied for a very small mortgage but it has been declined due to my credit history. I had a student overdraft with Barclays of £1750 and straight after Uni I went into the bank to let them know I would be moving abroad and working away. I was never notified about my student overdraft and being quite frank completely forgot about it as I hadn’t been contacted six years down the line I come back home and haven’t heard anything until I apply for my credit report. The account has been defaulted for £2300, at the time I took it out I was 18 years of age and unaware of the circumstances or that it would turn into a normal overdraft with interest, I was never notify of the debt later on and it is only now that I am feeling the pinch. At that age I didn’t realise these kind of things would stay on my credit report for six years, I was young and clueless. I have phoned Barclays and they said the don’t have the account on file. Do you think there is a potential of getting this removed? Thank you.
Sara (Debt Camel) says
when did you go abroad? is there a default date showing on the credit record?
Charl says
I went abroad in 2014 and actually opened the account in 2011, on the default account it says 2018 thank you so much
Sara (Debt Camel) says
Unless you told Barclays your address, it may not help you to say they never told me about the student account going into arrears.
You could send Barclays a Subject Access Request asking for a copy of all the data they have about you : https://www.apply.barclays.co.uk/forms/gdpr?execution=e1s1
I don’t know what that will say, if anything, about the visit to your branch when you told them you were going abroad.
But I don’t want to get your hopes up about this – there is no clear reason at the moment why they should remove this default,
Brendan says
Hi Debt Camel,
Thank you for all the greatly informative information you provide on your website. It is my go-to website for financial advice. I was just wondering if debt collection agencies have the power to remove defaults if you can convince them that the loan was given under irresponsible lending? The reason I ask is that I have had several payday loan, credit card and a store card list defaults against my credit file. I have settled most of the accounts and am in the process of coming to settlement agreements with the rest for a discounted rate. For instance, I have a Very catelogue debt that is being dealt with by Lowell. Would I need to ask Very to consider removing the default or could Lowell do this? I’m hoping I can make a case to the companies before consulting the Ombudsmen. Most of the debt is from 2016/2017.
Sara (Debt Camel) says
You need to complain to Very not lowell. If they uphold your case and remove negative markers from your credit record, Lowell will have to too.
Brendan says
Many thanks for the quick response. I will get writing!
Ryan says
I have a question. I had a default against me from Eon. I told them I wouldn’t pay debt until they removed it. They refused to do so. However, in past couple of weeks they have sold my debt to lowell and marked my account as closed. Does this mean the default is gone and I can now settle with Lowell? Since Eon marked account as closed it is not showing as default
Sara (Debt Camel) says
Is there still a default date against the debt? A default is nit normally removed when s loan is sold. When the Lowell debt is added to your credit records it will normally have a default on it.
Ryan says
The Lowell debt hasn’t yet appeared on my file just the Eon account closed. Perhaps I am too early. However, in theory Lowell would now have control over the default and if I settle immediately they could remove it. Or is that wrong? Thanks for help
Sara (Debt Camel) says
Have you checked credit records with all three credit reference agencies?
Lowell should not remove a default just because you offer to settle it now. I suppose they may, but under the credit reporting code they are not supposed to.
Emel says
Hello, I moved out of the house that I was renting in December 2019. I was going to spend sometime abroad. I have closed all my payments with electricity, gas, Virgin Media. I have paid all the last payments and returned the Broadband equipment to Virgin Media, as well. 11 months passed. I have never received any phone call even though I have used the same UK phone number during all this time, no e-mail but when I applied for a mortagage in November 2020, I’ve been refused on the ground that I have a default payment. I have registered on Experian to find out what this default payment was and I’ve found out that it was a £15 to Virgin Media, unexplained on what grounds. My old landlady has not informed me of any mails I’ve received either. I have paid this amount right away but it has largely decreased my credit score and prevented me to apply for a mortgage. Since I was not properly informed at all about this payment, how can I have it removed from my credit score? Thank you in advance, Best wishes,
Sara (Debt Camel) says
Have you asked Virgin what the charge was for and why you were not informed about it?
Nigel says
It’s good news default will be removed loans rewritten.
Just one question I had, I was in arrers during the payment hoilday, so they putted missed payments every month I was on payment hoilday.
They won’t remove that as I was in arrers, is it worth speaking to fos to get that removed…as I wasn’t aware.
Or slim chnace of sucess
Sara (Debt Camel) says
Well persevered.
You were in arrears when the payment holiday started, weren’t you? I don’t think FOS will say they should remove those.
Nigel says
Sorry they maybe miss understanding yes I was in arrers, they can keep them on but during my payment hoilday every month it shows missed payment on my credit file, that can’t be right I didn’t miss them I was on payment hoilday
So if you in arrers every month they put miss payments on credit file until arrers are cleared? Even if you pay Monthley , I never knew that.
Shall I clarify in the email or will they just invite it now because I have to email them to rewrite anyway
Sara (Debt Camel) says
So if you in arrers every month they put miss payments on credit file until arrers are cleared? Even if you pay Monthley , I never knew that.
Yes that is right. Once you are say 4 months behind, your credit record will continue to show 4 months behind unless you start paying the normal repayments AND pay off the arrears. If you pay off one month of arrears, your record should be changed to showing 3 months in errears.
Taj says
Hi, all of the defaults have dropped off my file and I have no CCJ’s but my Credit Karma rating is only 541 or of 710 and my Experian score is 726 out of 999.
How can I improve my rating?
Sara (Debt Camel) says
What shows now on your credit record? Do you have credit cards where you are using a lot of the limit? Any missed payments?
Taj says
All of the defaults have now dropped off. Nothing is showing as being reported currently on my credit file. No CCJ as well.
I don’t have any outstanding debts showing on my file. What’s the best way to now improve my rating?
Sara (Debt Camel) says
A good option is LOQBOX if you can save asset amount every month for a year, see https://www.loqbox.com/en_gb/. It’s safe and you end Up with a better score and a small nest egg.
If you dont have any spare money to save, then you can look at getting a credit builder card, but they are very risky and many people end up back with more debt problems and worse score… see https://debtcamel.co.uk/credit-builder-cards/
Dale says
I had a loan with a lender but struggled to make re-payments because of the date of the DD set up. I asked multiple times for them to change but they said i would have to catch up with missed payments before they changed the date (Which i couldnt afford to do). This led to another missed payment a few months later and they sold the debt to another company. I now have 4 defaults on my account – Can i do anything? Will the old lender help as they have proof of me trying to rectify the reason behind the missed payment? Any help would be great
Sara (Debt Camel) says
were you just paying a few days late?
John says
Hi Sara – I paid off a defaulted debt to Hoist (ex-Aqua) in July 2018. I have since discovered that Hoist have continued to report this defaulted debt (but with a zero balance) ever since, including the current month. So, even though the debt was settled in full (and with no issues) they still report every month to Experian. However, there are no reports to Transunion since the settlement date in 2018.
I understand that a default sits for 6 years but once repaid in full surely there should be no further reports on the date keeping it live? Every time they report the 6 year period re-starts despite the debt being settled to both parties satisfaction and I feel I will never have a clear credit record.
I contacted them to get this corrected – they ignore the first and second request. I registered a complaint and it’s now on week 4 with no response and this is over and above the original 3 weeks of the initial requests. The relevant department doesn’t take customer calls and I am just going round in circles. I am intending to complain to the FO after the statutory 8 weeks and exhausting Hoist’s complaints procedure.
Am I missing something here or is there any there action I can take?
Any advice you can offer would be great, thank you.
Sara (Debt Camel) says
Is there a default date on the Experian credit record? Was it showing with a D every month?
John says
It has Accounted Settled date 25/05/18, Balance £0.00 credit in use, Current status Default / Ended. For each month just has an exclamation mark on a pink background icon and that is described as an ‘icon account default’. So, not a D but its equivalent – this is the Experian report delivered via the MSE website (as it’s free)
I have four other accounts all settled around the same time and none of them have any reports since the balance was repaid; each one has a final £0.00 report after settlement and nothing since.
Hope that all makes sense and explains why the default keeps being added each month 2.5 years after full settlement.
Thanks
Sara (Debt Camel) says
get the experian statutory credit report from here: https://www.experian.co.uk/consumer/statutory-report.html
John says
Thanks for the link Sara. 7 days for a passkey so will let you know what it says once I have that. Thanks for your help!
Gemma says
Hi I’m hoping someone can help me at my wits end!
I defaulted on a quick quid loan in 2014 and have been repaying via a dmp ever since. Come July the account fell off my credit file as expected but then in August they added a new record for the same debt showing a 6 month arrears marker. It was my understanding this should be removed totally as the account isn’t active barr repayment through dmp. I have complained and they have refused to remove it what should I do. ( the account is closed simply being repaid ever since the default in 2014. tia
Sara (Debt Camel) says
have you sent in a claim for unaffordability? if you win that, the credit record will be wiped clean.
do you have an old credit report that shows the debt with a default date on it?