“This default is destroying my credit score – how do I get rid of it?”
This is a very common question!
It’s sometimes asked when people’s finances have improved and they are trying to clean up old problems on their credit history as fast as possible. Or sometimes the default feels unfair in someway
I will look at various cases to see what – if anything – can be done for each of them.
But first, there is no magic trick that an “expert” can use to do this. Don’t ever pay a firm that says they can sort this for you. Their claims are often exaggerated, they can’t do anything that you couldn’t do yourself.
Contents
The rules about when debts disappear from your credit record
There are three credit reference agencies (CRAs) in Britain – Experian, Equifax and TransUnion. They all apply the same rules about reporting defaults.
How long a debt stays on your record depends on whether the record shows a default date or not. The two rules are:
- a debt with no default date stays on your record for six years from the date when it is settled. This applies whether it was settled in full or partially;
- a debt with a default date stays for six years from that date. You may have paid it in full, made a full and final settlement, not paid anything to it, or still be making payments… none of these matter, the debt is still going to drop off after six years.
So the default date is an important piece of information for you to know. Don’t guess! Check your records with all three CRAs so you know exactly what they say.
Having a debt drop off your r4ecord because the default was over 6 years ago is the same in practice as having the default deleted.
Situations where the default should be removed
I am not saying these will be easy, but these are the most likely cases to succeed.
“I never owed this money”
If the debt isn’t yours, you should tell the lender and ask them to remove it from your credit record. It’s not just your credit record that matters here, you don’t want to be chased for money by the creditor or be taken to court for a CCJ.
“I was never in arrears”
If you recognise the debt but you don’t think you were ever in arrears with it, ask the lender for a statement of account to see where the problem is. You can then check against your bank statements to see if you made other payments that weren’t recorded.
“The lender stopped taking the money”
Sometimes the lender stopped taking the monthly payment by direct debit or by continuous payment authority. You may have assumed the debt was repaid and only found out later a default had been added to your credit record. Here it is the fact that the lender stopped taking the payments that is important – you may be able to get evidence from your bank that you did not cancel the DD or CPS until months later,
“It’s not fair – I only missed one payment”
In this case, no default should have been added as you were never three months in arrears!
Write to the lender, then appeal to the FCA /ICO if the lender refuses to correct it, see the above article about what the default date should be for details.
“A debt collector has added a later default”
They shouldn’t have done this. A debt collector can add a new record, but it should have the same default date as the original lender.
Write to the debt collector and ask them to correct it, and then appeal to the FCA/ICO if necessary.
“The default was added very late”
The rules say that a default should normally be when you are 3-6 months in arrears compared to what your normal payments would have been.
If a creditor has added a default later than this, it should be changed to be earlier. That means it will drop off sooner, and your credit record will be clean sooner.
See “What should the default date for a debt be?” which describes how to get your record corrected. For many people this is just as good as getting the default deleted and it can be a lot easier.
Cases where you have to win the argument to have it removed
“I was never properly informed about the debt”
Arguments can occur between you and a creditor if you feel they didn’t properly write to you about the debt, explain what the debt was or the size of it. Perhaps you moved house and the creditor carried on writing to your old address even though you notified them you had moved – this sort of thing.
If you paid the debt promptly as soon as you know about it, you could ask the lender to remove the default. Pointing out that you previously had a good history of paying their bills on time and that you don’t have other credit record problems can support your argument. You may have more luck going to the relevant Ombudsman rather than the ICO if the creditor refuses.
“The debt isn’t enforceable”
Sometimes this will work, sometimes it won’t.
Sometimes a lender will admit – or a court may decide – that a debt isn’t enforceable because it is statute barred. In this case a default should have been added to the debt more than 6 years ago, so you should ask for the default date to be changed so that it is earlier and then the debt will drop off your record.
When a creditor cannot produce the CCA agreement for a consumer credit debt it isn’t unenforceable in court. See Debts – why, how & when to ask for the CCA agreement for details – this does not apply to all types of debt. Here the debt still legally exists and you owe it even though you do not have to pay it – as a result the default will not be deleted.
“I should never have been given the loan as it was unaffordable”
Lenders should have checked you could afford to repay a loan before they gave you the loan. A loan is only “affordable” if you can repay it without hardship and without having to borrow again or get behind with bills.
If a proper check would have shown that the credit wasn’t affordable for you, ask for a refund of the interest you paid and for any defaults or late payments markers to be deleted from your credit file. See Affordability refunds for info on how to make these complaints for different sorts of credit including payday loans, Provident, guarantor loans, car finance, large bad credit loans and even catalogues.
Hundreds of thousands of these complaints have worked.
Sometimes the lender will only remove “negative information” such as defaults and missed payments. Sometimes the whole credit record will be deleted.
Here is a comment from a reader who made a successful complaint against Satsuma, a payday lender:
I accepted Satsuma’s offer on 2nd January and received the cheque on 17th January. The negative information was removed from my credit file as well which made my credit score jump by 100 points :)
“I was in an abusive relationship”
Many people, usually women, have been pressured to take out credit for a partner or had a joint account with an abusive partner. Financial abuse is now recognised as a serious problem and most banks now subscribe to the Financial Abuse Code of Practice published in 2018.
If you feel the debt and the default resulted from an abusive relationship, I suggest going to your local Citizens Advice and asking for their help to see if the debt could be written off and the default removed.
When it is very unlikely a default will be removed
“The lender agreed to reduced payments but still added a default”
This can feel very unfair, but legally they can do this when the arrears reach 3-6 months.
This applies if you have payments arrangements with one or two lenders or a debt management plan through a DMP firm. See How does a DMP affect my credit rating for more details.
And although you may hate that default, it may actually be better for you than an Arrangement To Pay (AP) marker on your file! A defaulted record disappears after 6 years, an AP marker stays for 6 years after the debt is settled.
“The lender is adding a new default every month!”
This may make your credit report look dreadful but it is normal and it doesn’t matter:
- the later defaults don’t make your credit rating worse because lenders’ scoring systems only look at the first one;
- the debt will drop off 6 years after the first default, the later ones don’t affect this.
“I agree with the default, but six years is too long!”
If you just had a temporary problem, perhaps you lost your job, or couldn’t work when you were unwell, but after a year you were sorted and back making payments it can seem very hard for this black mark to stay on your credit file for so long.
But there is nothing you can do to make the default go away sooner.
You can add a Notice of Correction to your credit file to say why the problem happened.
As the default gets older, some lenders will be less worried about it. But for some creditors, eg many high street mortgage lenders, any default, even five years ago, may result in a rejection.
Usually the best you can do is settle the debt as soon as possible. This doesn’t get rid of the default and doesn’t improve your credit score, but it will mean that more lenders are willing to give you credit.
When the lender has gone bust and can’t be contacted
This is a special case.
If the lender will not respond to the Credit Reference Agencies, then you can ask the CRAs to “suppress” the credit records. If this happens, although the records are still there, they will not be shown to any other lenders making a credit check on you.
Read How to correct credit records if the lender has gone under in detail and see if you think it can help you.
Don’t try to do this if the lender is still going. Or if it is the early stages of an administration – then it is better to put in a claim in the administration to get a refund for unaffordable lending. If your claim is upheld, the default will be deleted, and often the administrators just delete the credit record as it is simpler.
Pay a defaulted account to help credit score?
Is an unknown debt on your credit file?
Improve your credit score for a mortgage
Rafi says
Hi,
I thought that I have a great credit score as paying all of my direct debits on time and paying the credit card in full balance each month.
I have just signed up with Experian to check my credit as never checked it in my life. When I saw my credit score, I was shocked as it is poor. I download the report that found out that when I was living in my previous address, the landlord got a tv and iPhone from shop direct on finance under my name and the landlady took took internet with talk talk under my name as well ( I found out this couple of days ago).
I didn’t know this until the landlady was leaving her house to Immigrated to Australia, I rang up shop direct and I have told them it was probably a mistake as I got my iPhone contracted with 3 network for almost 8 years. so when I was asking some more question and keep pushing the agent to provide me with some information, I found out that the finance was under my name, but the account number, sort code and email address was from landlady. .
When I checked my credit score, I found out about Talk Talk as well. so I don’t know how I can get rid of this default from my credit score as I`m about to apply for a mortgage in couple of months and Im sure no one will provide me a mortgage, if they are willing to offer me, the APR might be very high. I have read that after 6 years the default from your account will be deleted, for me 6 years is way to long.
Thanks
Sara (Debt Camel) says
From what you have said, this is identity theft and you know who did it.
Read https://debtcamel.co.uk/loans-using-your-name-stop-identity-theft/ which looks at what you can do. If you need help with this, talk to your local Citizens Advice,
These things can take time to resolve – I don’t think you should assume it will all be resolved in a couple of months :(
Aisling says
Hi
I had a credit card and despite notifying the bank of my new address they initially started and then stopped chasing me for payment after the bank account I had with them was closed. I just checked my credit file recently and since 2015 they have logged a default on my file every single month that I haven’t paid (despite not sending letters). The debt is very close to being statute barred in the next month or so, but I have 2 questions:
1. Should the default not just been logged for the first/earliest month missed or is it correct for them to have logged a default every month?
2. If logging a default every month is correct then do they all drop off at the statute barring date or is it on a rolling month by month basis over the next 6 years ie the earliest one drops off at the statute barring date, the next one the month after etc etc meaning that it’s another 6 years before the defaults are removed?
I ask as my current mortgage deal expires towards the end of this year and this could affect whether I get a decent deal or not.
Thanks
Sara (Debt Camel) says
The debt is very close to being statute barred in the next month or so,
read https://debtcamel.co.uk/statute-barred-debt/ – you can NOT assume it is statute barred 6 years after the first default on your credit record as that explains.
1. A default should only be added when account is 3-6 months in arrears
2. the debt drops off 6 years after the first default date,
Aisling says
Hi
Thanks for the info.
How would I know what the 6 year anniversary is then? If the answer is to contact the company then that would mean the 6 year timeline would start ticking again surely?
Thanks
Sara (Debt Camel) says
I suggest you talk to National Debtline on 0808 808 4000 about whether the debt is as close to being statute barred as you hope. You certainly do NOT want to ask the creditor.
lynne Byrne says
Hi Sarah,
On the subject of no defaults ever being added to several JD Williams accounts on which I had to make reduced payments over six years ago.
These accounts were sold onwards to Intrum and two to Lowell and should by now have gone from my credit file, but have not because they were never defaulted. I contacted JD Williams and received the following response:
“We agreed reduced payments arrangements with you on your accounts due to financial difficulty. Your payment arrangements became interest free in December 2015 and I see you kept to the arrangements. We sold the accounts with no detriment in 2017 because they were on interest free payment arrangements and we are primarily a retailer rather than a debt collector.
Outcome of your complaint
As I’ve not identified any errors, I’m unable to uphold your complaint. I’m very sorry that you’ve had to bring this matter to the attention of the complaints team and I hope my letter has outlined how I’ve reached my decision.
This is our final response on the matter. If you are not satisfied with our response, you have the right to refer your complaint to The Financial Ombudsman Service, free of charge, but you must do so within 6 months of the date of this letter.”
I am not sure why they will not apply a default and so I presume that I now need to complain to the Ombudsman regarding this? If so,what are my chances of having a default backdated to the time I started reduced payments?
Sara (Debt Camel) says
I am not sure why they will not apply a default
I suspect they sell non defaulted accounts for more money…
I can’t guess what the chance is of you winning the case at the ombudsman, but if you don’t try you will lose it!
You should argue to the Ombudsman that you were making very low payments and JD Williams never explained to you that by not defaulting the account you would be worse off in a few years because your credit score would continue to be damaged.
lynne Byrne says
Thanks Sara,I will now contact the Ombudsman.
Mark Jones says
If I opened an account in 2017 sept when will it come off my credit file?
Sara (Debt Camel) says
Has the account been closed? or defaulted?
Mark Jones says
Not sure I’m stil
Paying it but on the credit report it says closes 6 years after account closes thought it was 6 years after I opened the account
Sara (Debt Camel) says
No, an account will drop off 6 years after a default date is recorded OR 6 years after the account is settled – which ever is the earlier.
If you are still paying it and it hasn’t defaulted it will never drop off. People have credit cards showing for decades…
jessica knight says
Hi
I contacted Marbles, my original credit card provider, as I believed the account should have defaulted back in 2014 when I entered into a DMP. They informed me it did default in Aug 2016 but the debt collector they have sold the debt to (Hoist in 2016) are refusing to add this saying they know nothing about this and it was only pre-default. Where do I stand with getting this corrected? Hoist did say they would look into it, by contacting the CFA, but could take 90 days, Marbles didn’t really know. Can I get this corrected myself by raising a dispute on my credit file, if so which credit file do I do this on please?
Sara (Debt Camel) says
Hoist did say they would look into it, by contacting the CFA, but could take 90 days
Do you mean contact the CRA?
Do you have something in writing from Marbles saying they defaulted the debt in August 2016?
jessica knight says
Sorry yes the CRA.
No, I haven’t anything in writing from Marbles, I only have many default notices, from the months before Aug 2016, which I believe are different?
Sara (Debt Camel) says
“I contacted Marbles, my original credit card provider, as I believed the account should have defaulted back in 2014 when I entered into a DMP. They informed me it did default in Aug 2016”
You want them to put this in writing.
Elizabeth Stewart says
Hello,
How likely is it that I will be accepted to take out a mortgage with my partner once default has dropped off my file? If I am right, the default should be removed August 2022 as it was applied in August 2016 and settled not long after.
The default was applied in August 2016 and I have no other debts. I should have challenged this at the time the default was applied as I was making payments to the company and then all of a sudden I received a letter to advise of default. I was young and stupid, living alone and paying high rent after just leaving home – ordering things from a catalogue and then not really being able to afford the high payments! Lesson well learned, just unfortunate that we couldn’t go for the house we really wanted 3 years ago because of this.
Sara (Debt Camel) says
It should be fine.
Ashley says
I have been on a debt management plan for nearly 5 years to clear my debt and get my life back.
I January I received some money for my birthday and I called one of the companies – Next – and advised I wanted to pay the outstanding balance, I was told it was £300, so in good faith I paid this and updated my debt management plan. Last week I received a letter to say I defaulted and owe £400. I have contacted them and received and email that doesn’t even make sense, and have been told someone will call me. I stil have not heard anything from them although I have paid the full outstanding balance(as I requested to back in January) and advised them it was an error and omission on their part and therefore asked them to ensure this default was not on my credit report., and advised them again this is a formal complaint. They have have replied and said the default will remain on my file for 6 years. How can I get them to remover it as this was not my fault. Their representative gave me wrong information, took a payment of a lower amount and then waited over 3 months to contact me. PLEASE CAN ANYONE HELP? Thanks in advance
Sara (Debt Camel) says
If they have rejected your complaint, send it to the Financial Ombudsman.
You can say to the Ombudsman that it is unfair to add a default now. If a default should have been added, it would have been nearly 5 years ago. Also you paid the amount you were told to pay so the debt should be marked as settled with nothing owing.
Also email dataprotection@next.co.uk and say you would like a copy of all your personal information for the last 6 years including recordings of the phone calls in the last year.
Jake says
Hello all, in Jan 2020 I stupidly fell into the trap of shop direct andspent £158.
Then I missed payment in Feb, By March we were put into lockdown and was told I couldn’t work anymore and being self employed, didn’t get help straight away.
I wasn’t back to work until end of June ,after my first week at work I rung very and made a payment 2cnd of July. I updated my address and It was on July’s statement .In August I lost my job of3 years due to covid.My father had a stroke early Sep so when I rung them in sep they told me they had sold my debt and I would get a letter in the post.so I check my credit report April 21and saw lowell has defaulted me in Sep and I had been sent a ccj letter combining 2 other accounts in March. Rung the solicitors and they have sent me the assignment notice to my old address . Very have sent me my default notice, and notice of assignment to lowell to my previous address. I’ve requested Sar and cca request to both parties but I’d like to know where I stand with having the default removed?
I’m so stressed and worried I’ll have to sell everything my dad has left me.
I’ll pay the debt as I did back in 2016 when I stupidly fell in, I ended up paying more than twice what I had in interest and fees until I paid in full in 2017. Over 6 months I missed payments but they didn’t default me then, but now in a pandemic they are allowed?
Also lowell has added a default every month since September when I never knew they had it.
Sara (Debt Camel) says
When did you tell Shop Direct you had lost income because of the pandemic and did you ask for a payment break?
I had been sent a ccj letter combining 2 other accounts in March.
Was this a letter threatening a CCJ? Or a letter saying they had obtained a CCJ?
Can I double check that you had told SD your new address, it was shown on your SD statement but Lowell sent letters to your old address?
Over 6 months I missed payments but they didn’t default me then
Are you saying there was a period of more than 6 months in a row when you didn’t make any payments in 2016?
Also lowell has added a default every month since September
This is what always happens. Only the first default matters for credit scoring. This isn’t a problem.
Matt says
Hi Sara
I have just won an appeal against quick quid for two default loans that are still showing on credit file . As said in an earlier post about getting a mortgage now I have won this case . Can I fast track the information to the credit reference agency and ask them to remove them as this was the last issue on my credit file.
Thanks
Sara (Debt Camel) says
There is no formal “fast track” route.
You can ask the credit reference agencies, supply the details from QQ and ask the CRAs to “supress” in information on your credit record pending confirmation from QQ. But I don’t know if this will work or how quickly.
Dominic says
Hi Sara,
I have contested a default on a Myjar loan (on grounds of unaffordability) and have had a response from ‘Harrisons Business Recovery and Insolvency Limited’ that states –
“Experian has confirmed that all My Jar loan will be removed from credit files.”
I’m glad to say this is indeed the case as per my MSE Credit Club report. It disappeared on my most recent update.
However the default still exists on my Equifax report. Can we assume Equifax will follow the same path in time or is there anything I can do to try and get this removed or suppressed from my profile with them too?
Regards
Dominic
Sara (Debt Camel) says
I suggest you ask Harrisons this.
Matt says
Hi Dominic
I spoke to Myjar last week and they told me that they had removed all of my accounts from there system and if there were any issues it was down to the credit reference agency. I am waiting to check my report in a couple of weeks and if they are still showing I will make a request to each of the credit reference agency. Hope that helps .
GB says
I was declared bankrupt March 2015. I’m looking to get my credit report cleaned up. 7 debts were included in the bankruptcy. In April 2021, I contacted all the creditors to remove the debts from my report. I had read that the date of default should be no later than date of bankruptcy and all debts will drop off 6 years from default. 6/7 creditors removed the debt from my file. One creditor is refusing and they are stating that the debt will drop off 6 years from the account closing. As I was discharged from bankruptcy in March 2016, this will be the date of account closure. Therefore the debt will drop off March 2022. I’ve looked for hours online what the ruling is but I can’t find an answer. I’d be inclined to agree with the creditor but the other 6 have removed the debt so I’m quite confused. Can some help or advise further please? Thanks
Sara (Debt Camel) says
See https://debtcamel.co.uk/credit-file-after-bankruptcy/. The creditor is wrong – a default should have been added no later than the date you went bankrupt – who is it?
GB says
Thanks for your reply. It’s poundstopocket who are now part of onstride financial. The default date on my report is correct March 2015 but it is still showing in my report. Their argument is that the debt will show until March 2022 as I wasn’t discharged until March 2016. Everything I’m reading is contrary to what this creditor is saying. – sorry I didn’t realise my name would show on the last comment would you change it to GB if possible? Thanks again for your help.
Sara (Debt Camel) says
“The default date on my report is correct March 2015 but it is still showing in my report. ”
what report are you looking at?