“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 for some reason.
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
When debts drop off your credit record
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 without a 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 record 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, ask the lender for a statement of account. That may show 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 matters. You may be able to get evidence from your bank that you did not cancel the DD or CPA until months later. If it was the lender’s error, you should not have a default and you can ask for this to be removed.
“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 Financial Ombudsman 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 Financial Ombudsman 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
“The loan 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 more money.
If a proper check would have shown that the credit wasn’t affordable for you at the time you applied, ask for a refund of the interest you paid and for any defaults or late payment markers to be deleted from your credit file.
You can also win complaints against credit cards and catalogues if your credit limit was increased stupidly high when you were only making minimum payments. And against overdrafts when you are in the overdraft for all or almost all of the month and this has been going on for more than a year.
See Affordability refunds for how to make these complaints. There are different artciles for car finance, large loans, credit cards, catalogues and overdrafts. There is a free template in each article that you can use.
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 a payday lender:
I accepted Satsuma’s offer on 2nd January and received the refund 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 never properly informed about the debt or the arrears”
You may feel the creditor didn’t explain what the debt was or how much interest would be added.
Perhaps you moved house and the creditor carried on writing to your old address even though you notified them you had moved. That is an error by the creditor.
If you paid the debt promptly as soon as you know about it, you could ask the lender to remove the default. Point out that you previously had a good history of paying their bills on time and that you don’t have other credit record problems. This can support your argument. You may have more luck going to the relevant Ombudsman if the creditor refuses.
“The debt isn’t enforceable”
This may not be easy.
Sometimes a lender will agree a debt isn’t enforceable because it is statute-barred. In this case a default should probably have been added to the debt more than 6 years ago. So you can 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. But 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 normally be deleted.
“I was in an abusive relationship”
Many 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 2018 Financial Abuse Code of Practice.
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 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.
“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 payment arrangements with one or two lenders or a debt management plan through a DMP firm.
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.
“Six years is too long!”
If you just had a temporary problem it can seem very hard for this black mark to stay on your credit file for so long.
But there is legally 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 unless it has been settled for several years.
Usually the best you can do is settle the debt as soon as possible. This doesn’t improve your credit score, but more lenders may be 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.
Do NOT 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 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.
Options when cards are maxed out
Is an unknown debt on your credit file?
Improve your credit score for a mortgage
Miss YV says
Hi!
I just came across this after doing a google search so I’m hoping you can help! I’ve spent the whole day walking from bank to bank and EE.
My partner and I are trying to buy a house. The broker informed us that we have 4 marks in our credit files (3 in his and 1 in mine) and that we wouldn’t qualify for a mortgage with our 5% deposit – we’d need to put down 15%, which is wild. It’s been a couple of days and we’ve managed to get one removed (EE) because it was an error on their part and now we’re working on the second (Barclays stage 5 on an interest-free student account), which is also an error. We’re left with 2 marks (1 each); I have a mark from Lloyds Bank in September 2021 and also in September 2020. I went in and asked if I could have it removed as a goodwill amendment and the woman said that because the mark is a late payment from EE, she wouldn’t be able to amend it (because the charge wasn’t from the bank and the payment was more than 30 days late). However, my credit report shows 0 marks from EE over 4 years… Is it possible for me to write to Equifax and have it removed? It’s the only mark on my entire credit report, dating back over 4/5 years.
Thanks,
YV
Sara (Debt Camel) says
I went in and asked if I could have it removed as a goodwill amendment and the woman said that because the mark is a late payment from EE, she wouldn’t be able to amend it (because the charge wasn’t from the bank and the payment was more than 30 days late).
How does a late payment to EE show as a negative mark on a bank account?
you have to sort these problems out with the firms. Equifax will be useless.
Miss YV says
Exactly! I’ve been in branch, and called up twice. I just don’t understand who I’m supposed to go to and what I’m supposed to say. This is a Lloyds issue, right?
Sara (Debt Camel) says
I think you need someone to help you look at this. I suggest you go to your local Citizens Advice
Miss YV says
Thank you, Sara! I’ll definitely get this looked at.
Rem says
Hi Sara, hope you are well.
I have unfortunately missed a payment on my credit card in July which has been added to my credit file and affected my score. I missed a payment in May too but my bank didn’t report this. I have a clean file, never ever missed a payment before this, not sure why I missed it this time I just forgot and didn’t think much of it but I’m looking to buy a house soon and heard it will affect me quite negatively. Is there any way my bank (TSB) could look at removing it as a goodwill gesture? If I show I’ve had my credit card for 9 years and always pay on time and have taken loans out with them before and paid on time I’m hoping they will look at this as a mistake rather than me not being able to pay? It was a mistake on my part, stupid silly one and I feel so awful about it! Any advice would be appreciated
Thank you
Sara (Debt Camel) says
Well you can ask. And if it was just one missed payment they may do this. But if they look and see you also missed one earlier, they may decide no.
No harm in asking though.
Jenn says
My husband and I lost our jobs and had 2 missed payments 2016 we carried on paying the mortgage never missed a payment since a few months ago we finally had spare money and paid it off we never really thought anything of it as we paid every month religiously… last month I managed to sway my husband into moving and we noticed on my husband’s credit file although he’s sitting at Excellent credit rating .. on the mortgage it looks like we haven’t paid a payment since 2018 .. this is holding us back from getting a mortgage .. any advice appreciated
Sara (Debt Camel) says
ask your mortgage company why they have not updated his credit record correctly?
Jenn says
We defaulted in 2016 by 2 mortgage payments £1500 but carried on paying religiously from that til now but only paid the £1500 owed about 5 months ago . But on the credit file it looks like we haven’t paid payments on mortgage from 2018 to early 2022
Sara (Debt Camel) says
ah. You may struggle to get a mortgage at a good rate in that case because until very recently you have been two months in arrears. Have you talked to a broker?
Jenn says
Urgh I just wish we had been told this would happen we may have tried harder sooner to pay it off :-( you say you may find it hard to get it at a good rate do you think it’s possible to still get a mortgage we would have over 100k equity to put down ?? No not spoken to a broker yet
Sara (Debt Camel) says
You can probably get a mortgage but it may be at a very high rate. It may be better to get his credit record corrected now and wait a year until the problem is well in the past. If you can manage to clear other debts during this year – or overpay the mortgage if you have no other debt – even better.
Andy says
If an account is in default, and its queried with the CRA and then suppressed is this the same impact as it falling off a credit report.
My on going battle with Capital One default.
Transunion – have suppressed the entry as Capital One has failed to reply to them
Equifax do not record an actual default – they show the entry as Settled with a Satisfaction date of 23.11.2020
Experian show the default as Satisfied with a Satisfaction date of 23.11.2020
I don’t know which if not all 3 of the credit reports are harming me with the entries/suppression.
Sara (Debt Camel) says
This is the default FOS said should be removed?
Andy says
There were two.
They removed the one, provided a refund – that I had to fight to get right redress as they weren’t calculating the 8% correctly.
It’s the second one that FOS said there was no issues,.despite them delaying my repayment plan by 4mths for it to hit Default (FOS would not not agree to the refund being taken into consideration that I would of had funds available)
Sara (Debt Camel) says
ok, well TransUnion is sorted. Well at least until Cap One bother to respond.
Equifax there is no default showing.
Experian is the problem at the moment.
Andy says
I’ll just have to apply for a loan that only uses TransUnion and Equifax lol.
I know that if I put something on Experian they’ll check and respond to all agencies. Which puts me back to square one.
Do you know if the FSA did their review into credit reporting and the way the handle defaults.
Still think it should be a tiered system as someone could have a 100k default – which doesn’t bother them as earning mega money compared to little Dave who’s just got a default for £26 for not paying last mobile bill.
Sara (Debt Camel) says
the FCA review is still ongoing.
Nic 51 says
After many years of working to pay off all mu debts I’m finally debt free. I check my credit score on a regular basis but still have 1 default from 2017 and an arrangement to pay mark. I know the default affects my score but does the arrangement to pay also have a negative effect? Lastly can you confirm that this marks will fall off my credit record in 2023, both are from April 2017. Thanks!!
Sara (Debt Camel) says
Yes an arrangement to pay also harms your credit score. Has that account now been settled? When?
Nik 51 says
Sorry its been a while!!
The arrangement to pay finished in May 2017 account settled. Does this mean both marks will be deleted in May this year?
Sara (Debt Camel) says
can I just check that the account was settled at that date?
Nik 51 says
Hi Sara
Yes it was settled in May 2017 as part of a DMP the default was entered on to my record the same month for a different lender, that debt I made the final payment on last year.
No other negative marks on my record
Sara (Debt Camel) says
The debt with an arrangement o pay will drop off 6 years after it was settled, so May this year.
The debt with a default will drop off 6 years after the default date, if that was may 2017 it will be deleted in May this year.
Nik 51 says
Thanks Sara for confirming that, feels great knowing I’ve no debt or negative marks anymore.
Claire says
Good afternoon,
I have debts older than 6 years (10 years) that do not appear on my credit file.
I have just finished my last payment today!
Will these now appear on my credit file again as settled in full for another 6 years? I’d like to think about getting a mortgage.
Sara (Debt Camel) says
No. A debt that has dropped off as it defaulted more than 6 years ago will NEVER reappear.
Claire says
Thank you.
Do I have to tell prospective mortgage lenders about a previous DMP if it is no longer on my credit file or my bank statements? E.g. started over 6 years ago and ended over 6 months ago.
Sara (Debt Camel) says
yes if you are asked. But that would be unusual. Talk to a broker about a mortgage, don’t just pick a lender and apply directly.
Damian says
Good day. Quick question please.
Barclaycard added a default to my record when I had stopped paying a couple of years ago.
They then sold the debt to a company who also added a default to my account with them, even though I never missed a payment with the collector and the debt is now clear.
I appear to be showing two defaults on my credit report for only one debt.
Is this right, or should the collector remove their default?
Many thanks
Sara (Debt Camel) says
the default date from the debt collector should be the same date as the original one? And the original debt should show as satisfied?
If yes and yes, then that is what supposed to happen and the credit scoring algorithms identify this situaion and onlt score one of the debts.
(But have you thought whether you may have an affordability complaint against Barclaycard? See https://debtcamel.co.uk/refunds-catalogue-credit-card/. If you can win a complaint you will get some refund and both defaults will be removed from your credit record.)
Ian Cassidy says
I have a default on my credit report from 2013 and it’s still having an impact on my credit score. Is this normal ?
Sara (Debt Camel) says
no. What is the exact default date shown on the report?
Ian Cassidy says
There’s no exact date, it’s just continuing to show a late payment , and has done for years. But the initial date of the default was in 2013. I’ve lived at this address for over 5 years , I’ve had no correspondence regarding the debt but my credit score hasn’t moved for years because of it .
Sara (Debt Camel) says
then a default date has not been added to it. This will never drop off your credit record. When did you last make a payment to it?
Ian Cassidy says
It would have been August 2013. So if it’ll never drop off, where does that leave me with regards to trying to get credit ?
Sara (Debt Camel) says
It leaves you screwed (technical debt advice term there…)
Read https://debtcamel.co.uk/statute-barred-debt/. It is likely that this debt is statute barred, you can talk to National Debtline on 0808 808 4000 to confirm this.
If ND agree it’s probably statute barred, then you can ask the original creditor (who was it?) to add a default back in 2013/14. See https://debtcamel.co.uk/debt-default-date/. If they do that then the debt will immediately drop off your credit record as the default is over 6 years old.
Ian Cassidy says
It was BMW. I had a lease vehicle, never missed a payment or was late with a payment over the term. When the lease finished they were trying to screw me for more money which I refused to pay.
Sara (Debt Camel) says
ok, talk to National Debtline about that and see if they think it’s statute barred.
Ian Cassidy says
Thanks for your help, it’s much appreciated
DRrs says
Hi wondering if you can help me.
I have a debt that was within a DMP since 2014. It was never defaulted even though the creditor accepted smaller payments than the contracted payment and was then sold to Lowell. Lowell have continued to report to credit file every month with the “DMP” marker but no default.
It’s the only debt that hasn’t disappeared from my file as no default. I asked Lowell to add the correct default date which should be early 2015 and they said they cannot amend it and only Creation consumer finance can do that.
Can I ask creation to ensure that Lowell mark the default as 2015? This would mean the debt then drops off my file.
I am finished with the DMP and I am making the full Contractual payments now but I am going to struggle getting a mortgage as this debt shows on my file as “DMP” for the last 8 years so any mortgage provider will know about that history even though my finances have massively improved for the last 12 months.
Sara (Debt Camel) says
yes you can ask Creation to do this. It is a shame you didn’t do this a few years ago!
DrRs says
Thanks. I think I’ve been worried they might default but put a date that is within the last 6 years and cause me more of a headache trying to get the date changed. I’ve made a formal complaint to Creation so will see what they do and then escalate to the ombudsman.
If creation agree will they then tell Lowell to apply the default to my record?
Sara (Debt Camel) says
what date was the debt sold to Lowell?
DrRs says
I am pretty sure March 2016 as that’s when I can see the transaction history to with lowell
Sara (Debt Camel) says
ok so Lowell cannot put a default date before then – Creation have to do that. If Creation do, then Lowell will have to copy what Creation do.
Creation can’t put a default date after it was sold to Lowell.
So your options are to ask creation to put a date on or before before march 16 OR to ask lowell to put a date on of Marchy 16 or after..
In practice any default date before September 16 will be over 6 years old and will drop off straight away.
DrRs says
Great thanks. I’m the pst I asked Lowell but they said they would not as they agreed the payments with me and I always paid them so did not default with them.
So it seems if I can get creation to default I can then ask lowell to copy what they have done?
Sara (Debt Camel) says
there is a case that lowell should still have added a default.
But it may be easier to get Creation to do this. Then lowell should o it automatically but it will do no harm to remind them :)
DrRs says
Ok thanks. I have made an official complaint to both lowell and creation.
Matt says
Hi hoping someone can point me in the right direction, briefly I went through a divorce last year after years of being separated, ex I was making agreed maintenance payments every month and she made the mortgage payments. Her Grandfather gave her inheritance early and said he would pay off the mortgage so she could buy me out, all went well in court etc, I have since found out she stopped making mortgage payments knowing it would be settled in full, I knew nothing of this I haven’t had contact with her for a few years verbally. Its on my credit file now (6 missed payments) my credit file is otherwise pretty much perfect and now I’m being turned down for a new mortgage…. HELP!
Sara (Debt Camel) says
Has the mortgage now been settled?
Matt says
Settled this Feb, I have 25k and want 225 for a 250k property (luckily I live in the north that would buy you a portaloo in London )
Sara (Debt Camel) says
It is a shame you did not keep an eye on your credit record so you could have stepped in last year when the first payment was missed.
I don’t think you have a good case for asking the mortgage lender to remove the missed payments from your credit record. You could ask but I am not optimistic.
You can add a Notice of Correction to your credit record – see https://debtcamel.co.uk/notice-correction-credit-record/. That may not make much differebnce to a mortgage lender, but you may as well do it.
You can try talking to some brokers now, but with only a 10% deposit I think you will struggle to get your story listened to, not least because the whole market is in a state of flux at the moment.
I would suggest NOT getting a an expensive bad credit mortgage for 2 years – at the moment many pwople who did this 6-12 months ago thinking they could remortgage to a “nomral” rate and now finding the hard way that they may be stuck paying their sub prime lender’s very high Standard Varaiable Rate as no high street lender wants to let them remortgage.
I HOPE this will be better for you after Feb next year when all the missed payments are settled over a year ago… but you may need to wait 2 or even 3 years Time does improve this sort of problem. But mortgage arrears are viewed VERY seriously by lenders.
Matt says
I know it’s quite the conundrum as I look at paying rent for another two years as also throwing money down the drain. It’s a shame they don’t look at the bigger picture (affordability) I have a good salary I’m in higher management and I’ve been with the same employer over five years, I don’t have one other bad mark on my credit score it’s actually exemplary. This is extremely frustrating!
Sara (Debt Camel) says
I understand this totally. It is worth talking to a broker, you can try now but things are pretty chaotic this week.
Al says
Hi Sara
I had a debt with Oakham back in 2019 that I didn’t pay in full. This loan was sold to lantern who then issued a default against me in 2019. In oct 20 Oakham agreed the loan had been given irresponsibility and advised lantern to remove all trace from my credit file. Oakham said they had a response acknowledging their email. Since then at various points I have had correspondence with lantern asking them to remove this default, various responses have included agreeing to remove it and more often than not advising it should be on my credit file for 6 years. This has been harming my credit rating unfairly for 2 years. Can I claim any financial compensation? Thanks
Sara (Debt Camel) says
have you told oakham about the problem?
al says
yes, i have spoken to them. They just advised that they had told lantern to remove the default and lantern have acknowledged.
Sara (Debt Camel) says
go back to them and put in a formal complaint. Say if this isn’t sorted your complaint goes to the Ombudsman where you will be asking for compensation.
Matt C says
There’s a complaints procedure on the financial ombudsman website they can step in and sort this out
Aimee says
Hi, I have recently been trying to clean up my credit score and have a default marked from Febuary 2020 from a credit card supplier who passed on a debt after a few missed payments whilst I was travelling in South America. Due to being out the country for 2 months I was not aware they had stopped taking money and threatened to pass on my debt. When I returned home I was contacted by a debt collection agency. Naturally at the time I was frustrated but simply set up a payment plan to pay off the balance (plus added charges from the debt agency). I’m now trying to get a mortgage and this default is harming my credit file – do I have an argument here to dispute it?
Sara (Debt Camel) says
I was not aware they had stopped taking money
Are you saying that you left the country with a direct debit in place and sufficient funds to pay it, but the creditor did not collect this in Feb 2020 and for a few months afterwards?
Craig says
I have just discovered a default against my credit score from o2 for £13 which has decimated my rating.
The contract was cancelled within the 14 day cooling off period and I had an email from o2 confirming this.
I had no letters, emails or texts asking for any bill to be paid.
Yesterday I logged a query with Experian and trans credit.
Will this affect my remortgage currently about to complete? Should I pay it anyway? Thanks
Sara (Debt Camel) says
You need to dispute this withO2not the credit reference agencies
Is the remortgage a new fix with your current lender?
Craig says
Hi thanks for responding so quickly.
The remortgage is with a new lender so I’m concerned they’ll check a few days before completion. Credit report was fine in June when offer was sent and accepted.
o2 say payment was raised April and they set it to default in July. I’ve had no correspondance at all from them on it. Can they overturn it and should I just pay so it isn’t outstanding in the meantime? Thanks
Sara (Debt Camel) says
Have you asked O2 why the payment was raised if you cancelled withing the cooling off period?
Craig says
Hi. Yes just done that. The person on the phone was really good and he has credited the £13 plus another £15 late payment charge. I was never advised of any of those charges.
Unfortunately he couldn’t remove the default but passed me through to the wrong department and I got cut off. I’ve just emailed their credit file referrals dept and got an automated response giving three days.
Do you think they will remove it? Thanks
Sara (Debt Camel) says
So they have agreed it was wrong. Therefore tHey should remove it.
If you are getting your remortgage through a broker, I suggest you tell the broker now what has happened.
Craig says
Hi. I spoke to the broker yesterday and he said it will be fine.
The lender has already done the checks when offering the mortgage. He said if I was applying it would be a diffrent story.
I’m now waiting on o2 credit file referrals to come back and remove. Thanks
Sohail says
I have defaults on my credit file and they are now coming off after 6 years
I have read that even paying the debt off now would have little to no impact to my credit rating. Is it therefore worth actually paying these debts off or just paying token payments?
Will I now be more likely to be eligible for credit as they all fall off my credit file?
Sara (Debt Camel) says
Are you currently making payments to these debts?
What sort of credit do you want to be eligible for?
Sohail says
For some i am making these payments for others i am not
Initially for a credit card and then further down the line a mortgage
Sara (Debt Camel) says
You can divide the debts about to drop off into two groups.
The first are any debts where you have not made a payment for at least 6 years. It is possible that they may be statute barred when they drop off, so the creditor can’t get a CCJ for them. Read https://debtcamel.co.uk/statute-barred-debt/ for more about this and talk to National Debtline if you aren’t sure.
The second group is any debts you are still paying or have paid within the last 6 years. These cannot be statute barred. Read https://debtcamel.co.uk/debt-not-on-my-credit-file/ that covers these debts.
Sohail says
Thank you
So would it then be possible to get lines of credit in the future?
Sara (Debt Camel) says
Did you read that second link?
It depends if you carry on paying the debts. If you don’t then you may get a CCJ which wrecks your credit record for another 6 years.
If you do carry on paying the debts, then you will probably be able to get a credit card, but can you afford the repayments?
You won’t be able to get a mortgage except at a very high bad credit rate if you are still paying the debts as the mortgage lender will see the payments from your bank statements.
Natalie says
Hi all,
I’ve tried to get a BLT mortgage and while going through the application its come up that a default was placed on my account in August 2022 by a water company. I’m completely shocked as my application has been cancelled and now I can’t get a mortgage. I have a clean record history and honestly didn’t receive any notifications or bills. I really don’t know what to do. I’ve called the company and they said they issued me two default notices which I never got.
Even the amount that’s been placed on my account in the report is more that what the company said they applied to my account.
I’m so confused as I don’t accumulate debts. I don’t even have a credit card to avoid getting myself in debt.
Is there anything I can do?
Sara (Debt Camel) says
was this for a house you were living in? did you have a direct debit set up that was not collected?
Mary says
Sara is there any truth to rumours about being able to negotiate with a DCA to get a default removed from your credit file?
I owe lowell 680 pounds for a debt that was sold from Vanquis many years ago. Default date March 2018 so due to drop off March 2024
Threat of CCJ seems to be not likely due to me living in NI
If I offer full payment for removal of default am I likely to get laughed at?
Sara (Debt Camel) says
Well I can’t say that it is impossible but it would break the credit reporting rules.
What is the rest of your credit record like?
Leanne says
Anglian Water put a default on my account last year – I queried it with transunion as I had not had an account with them since 2015. The default was removed; a month or so later it was back on there with a different date showing 2020 as the default date. I contacted transunion again who contacted Anglian water – they said this was in relation to accounts in 2017. But I didn’t have an account with them then.
I have contacted them myself to ask what it’s about and received an email that says the following:
“We first registered the default for the outstanding charges. This was registered correctly based on the information we had at the time.
This default was later deleted upon contact (through Transunion dispute) for account maintenance and as a gesture of goodwill.
We re-issued the final bill as this was still outstanding although we are aware this wasn’t received we sent a default notice to the address ******
I will reissue your final bill to ****** please get in touch if you’d rather us send this to a different address.
The balance for the final bill is £190.83 and your total balance is £800.23.
I will delete the default as you won’t have received the bill, the reissued bill will have a new due date.
You must address the balance to avoid this reporting further.”
I’m confused by the whole thing. How can they keep re-issuing a new bill and then adding that as the new default date?
Sara (Debt Camel) says
It sounds as though someone just skim read your letter/email and thought they were being nice by removing the default and giving you a chance to pay.
I suggest you phone them up and make a formal complaint https://www.anglianwater.co.uk/about-us/core-customer-information/how-to-make-a-complaint/
There is NO point trying to sort this out through TransUnion – they just report what a firm says.
Leanne says
That was my plan but I am wondering where I stand on them being able to keep re-issuing a default? That’s what they’ve told me. They’ve said they can keep reporting my failure to pay and recording that I’ve defaulted if I don’t pay. So in essence. They’ve said if your debt is statute barred we can’t take you to court but we CAN keep recording default notices. I thought after 6 years it could no longer be kept on your file? So are they having me on?
Sara (Debt Camel) says
If this isn’t your debt, then that is what you need to emphasise. Don’t get tangled up in irrelevant questions about whether it is statute barred.
(No, they can’t keep adding default notices if they accept it is statute barred. But if this is a bill from 2017 it cannot be statute barred.)
Leanne says
It is my account but I wasn’t aware there was an outstanding bill as my ex partner at the time said it was paid. I’m not even surprised that it wasn’t but they’ve confirmed this is from 04/02/2016.
Sara (Debt Camel) says
so were you still living there in the period covered by that bill?
Leanne says
I moved out in February 2016.
The bill is for a period covering up until February 2016. Not after. So as far as I was aware when they contacted me about it last year it would be statute barred so that’s why I raised it with transunion as a dispute on my credit file as it was not even appearing until then!
Sara (Debt Camel) says
Ok so it does relate to a debt you owed. I suggest you talk to National Debtline on 0808 898 4000 who have a template letter you can send if they think the debt is statute barred.
And no, they can’t keep changing the default date so it appears on your credit record.
Leanne says
I requested a timeline from then and received the following:
“We first registered a default on 29.12.2015 for the amount of £609.40.
This balance was the bill amount from your bill produced on 08.09.2015.
Your final bill was then produced on 08.02.2015 for the amount of £190.83 bringing your final balance to £800.23.
We then added the £190.83 to the default on 27.01.2020.
On 19.04.2022 the default was deleted as a gesture of goodwill and the final bill was re produced, which as my colleague advised in the previous email we are aware you did not receive this.
On 11.07.2022 we sent a default notice to the (address).
We then registered a second default on 25.08.2022 for the final bill amount of £190.83 which was deleted on 20.01.2023 due to you not receiving the bill.”
Should I just make a complaint in writing following the templated letter, as they just seem to be adding defaults on whenever they fancy, even though this quite clearly states it relates to a bill which defaulted in 2015 according to their timeline. Feb 2016 at the latest. How can they register a default 4 years after the default, then take it off and then keep adding it back on?!
The remaining balance is still £800.23.
Sara (Debt Camel) says
You have two separate problems. Is the debt statute barred and the defaults.
Have they agreed the debt is statute barred? If they haven’t, then talk to National Debtline about this on 0808 808 4000. ND have a template letter you can send if the debt appears to be statute barred.
It is going to be simpler to ask for the default to be removed if you have either got them to agree it is statute barred, or you have accepted it isn’t and paid it.
Katrina says
I own a rental property, when my tenants left in April 2022 they changed the gas/electric utility bill to my name even though I don’t live there and without my knowledge.
Another tenant moved in May 2022 and didn’t let me know that letters were arriving in my name from Scottish Power so from April – June 2022 I was being charged even though it was a top up meter (apparently there is a charge if not being used) my new tenants only stayed for 6 months and left in Dec 2022, when I accessed the flat I found all the letters, I called Scottish Power and paid it even though I never lived there.. I now have a default on my credit file which was added in November (they never told me this when I called them to settle)
Can I get Scottish Power to take this off as its unfair.. I never lived there and I never opened an account with them my ex tenants must have done this when they left.
Sara (Debt Camel) says
If a property has no tenants, then the landlord is liable for the energy bills. If the tenants leaving notified Scottish Power of this – as they should have – Scottish Power may have correctly changed the bills into your name. You can ask Scottish Power this.
kelly says
Hi. I have a Scottish power default. The default date was updated just before 6 years passed. Does this now mean I need to wait another 6 years for it to be removed ? It has been on my report since April 2014
Sara (Debt Camel) says
do you still live in the property this bill relates to?
Kelly says
No moved out 2016
Sara (Debt Camel) says
and have you ever written/emailed them about this debt? or paid anything to it?
Kelly says
No. They had put meters in and they set them up wrong and money would last ages in the has meter. Young and stupid but was hoping it would have fallen off by now
Sara (Debt Camel) says
OK, this is a rather unusual situation. They should NOT have changed the date of the default, so it should soon have dropped off but now it won’t.
But this debt may be close to being “statute barred” after which you cant be taken to court for it. If you contact Scottish Power now and ask them to correct the default date, that may acknowledge the debt so that it won’t beacome statute barred for another 6 years.
You need to wait until the debt is clearly statute barred – after that it can never become “unbarred” and you can safely ask them to correct the default date.
So this is what I suggest you should do. Phone National Debtline on 0808 808 4000 and discuss if this debt is already statute barred or when it is likely to be come statute barred. They are experts and if the debt is statuete barred they have a template letter that you can use to tell SP this.
Kelly says
Thank you for your help
donna says
I have a default on my credit score and when I rang Bt they said that this is a mistake and I have never owed anything. They told me I need to ring a credit agencies to get it taken off is that correct, surely if they made the mistake they should help and get it removed. Thanks
Sara (Debt Camel) says
You are right, BT should correct this.
Becci says
Hi I need some help please. I missed 2 payments on my credit card I hadn’t hit the threshold for this to be registered as a default. I have struggled with my mental health and my credit card provider agreed to medically write off the date. I was 2 months behind with payments at this point. They sent me a letter stating the debt had been written off and woudl show on my credit profile for 6 years with a zero balance and as partially satisfied. This actually shows as a default. Is that correct? It feels they have negatively impacted me by written this off and they have never notified me that it would reflect as a default.
Sara (Debt Camel) says
Can I ask how long ago this was?
When they agreed to write it off, had you complained that they should never have given you the card in the first place? or that they had increased the limit to a level that was unaffordable?
Becci says
Hi Sara
No I hadn’t complained I just filled in a dmhef and the medical write off was approved. I had no issues with the initial lending. This was last November
Brian says
Hi,
I’ve got a loan on my account that defaulted away back in 2016 and has been paid back to the creditor the debt was sold to, however the original loan was provided by Provident who no longer exist. I’ve been in contact with the creditor to see if this can be resolved and removed as they no longer exist and can’t provide proof of the actual loan.
Who is it I need to remove the loan from the report? it’s down as being the creditor, but they keep telling me to get in contact with Provident which I can’t do.
Am I stuck with this on my report for another few years?
Thanks,
Brian
Sara (Debt Camel) says
is there a default date on this credit record? When was this bought by the debt collector and who is the debt collector?
Brian says
30/04/16 is the original default date and the debt collector was Lowell. They bought it in August that year by the looks of it.
Sara (Debt Camel) says
what is the default date showing on the lowell entry? If it was in 2016, the record would have already dropped off after 6 years.
Brian says
April 2019, so it won’t be removed until 2025 unfortunately.
I have asked them to provide proof that the loan was actually taken out though, can it be removed if they can’t provide this?
Sara (Debt Camel) says
if they cannot provide the CCA agreement for the debt, then the loan is unenforceable in court. but that does not mean it will be removed from your credit record.
Instead you need to ask Lowell to produce a statement of account for the debt. That should show that you made no payments for several years after 206 so a default sghould have been added then. make a complaint to lowell if they refuse to do that and take the complaint to the finacial Ombudsman saying that it is clear that the loan should have been defaulted and Lowell are not treating you failrly by refusing to backdate the default.
Brian says
Hi Sara,
Contacted Lowell and they have advised me that they can’t do anything to remove the default as the original creditor decided that date not them. They have told me to get in contact with Provident (who no longer exist so yay!) to see why it took them almost 2 years to apply the default on my account.
Looks like I’m stuck with it for another year and a bit.
Sara (Debt Camel) says
Send Lowell a complaint saying they know the date is wrong and Provident no longer respond, so they are not treating you fairly by refusing to correct it. Then send it to the ombudsman if they refuse.
Bella says
Hi Sara, a thought has just occurred to me and now I feel a little worried. I have maybe 6-8 defaults on my file that are all only a year or two away from dropping off. There is still money owed on all these accounts. I’ve recently been hearing back from affordability complaints where the FOS has found in my favour, and as part of the ‘fix it’ proposition, removing any bad markers is included. My worry is, if these defaults start getting removed but there is still outstanding debt, will the credit/loan/whatever remain on my file for a further six years after I’ve finished paying? Am I better keeping the default on there since it’s close to dropping off anyway? Can I even keep it on there anyway since it was part of making things right?
Many thanks
Sara (Debt Camel) says
Yes, but does that matter? Because it’s going to be cleared a lot sooner and there are no negative marks?
Bella says
I was thinking more around if the neg markers were left on then they (along with the outstanding debt) would drop off, opposed to if the neg markers were removed, then I’d have to wait until another six years after the debt is paid, for that to drop off. Or have I misunderstood how it works?
Would having fully paid credit on the file impact mortgage chances at all? Say if I clear the debt in two years, apply for a mortgage in three years?
Sara (Debt Camel) says
Would having fully paid credit on the file impact mortgage chances at all?
Unless any of the debts are marked as payday loans, then I don’t think so. You could talk to a mortgage broker about this.
john says
Hi there,
I had a loan which I was repaying but my mental health issues got worse and I was working less. they accepted an arrangement to pay for 6 months. I called before it ended and my situation was worse and my medication had increased. they agreed to continue for a further six months(until April 2023). I was told I would receive written confirmation. After a week I called again as I had not heard anything. I was told a decision had been made to sell the debt. I was not 3-6months worth, nor received a notice of default.
The creditor continued to take a payment after the account was “sold” on!. The debt still shows as an account with the original creditor and as defaulted.
1) As a notice of default was not issued by either the original creditor or the company who bought the debt and I was never informed in any way the my account had defaulted, is the default on my file void by a technicality?
2) As the original creditor was aware of my mental health issues and my account was not in arrears to the amount of 3-6 months should they have “sold” the account or is it covered by the lending standards regulations?.
3) The default was recorded in November 2022 the month they sold the debt on yet I was informed by the company who bought the debt that my account was not in default and my arrears were £0. There is nothing on my credit file with reference to the company who bought the debt is this correct?.
Thank you for any help and advice.
Sara (Debt Camel) says
Who was the lender? Any payments you made to them after a sale should have been passed onto the debt purchaser.
Roderick says
Hi, thanks for the article it really clarified some points. I’d like to ask a question. I have a default originally dated 2017 which is now with a debt company. I have previously contacted them about letters they sent to an old address, but they refused to respond to my email. So I assume the 6 year period reset at that point. I haven’t heard from them since. If I was to now pay off the debt, would it leave my credit file 6 years after the original default date, or 6 years from my email to them? Thanks in advance
Sara (Debt Camel) says
if there is a default showing on the credit record it will drop off after 6 years, paid or not.
But if it drops off, the debt may still be enforceable in court, see https://debtcamel.co.uk/debt-not-on-my-credit-file/.
steve hardman says
Hi Sara,
I changed bank account way back in 2013, so had to change DD for my mortgage and made payment by card, as this was going through. However it came to light in 2019, after I contacted the bank over to make a day late mortgage payment that I actually missed a payment in 2013 (I could have sworn I have never missed a mortgage payment but can’t locate all my accounts/ statements from way back, so have to accept this as I have no proof to the contrary)
Anyway, my credit file shows that I have a missed payment every single month until I paid off (after exhausting my investigations) the outstanding sum last year.
So because this dates back to 2013, my credit file basically has 5+ years showing a missed payment every month., with the obvious devastation this is causing to my credit file.
Is there anything I can do or raise with the bank? I read the article above and the item titled: “It’s not fair – I only missed one payment” but i don’t know what the “…you never were three months in arrears” actually refers to and if it is applicable in my case?
It just seems a little OTT that my file is affected so badly, when it only literally was one payment that was missed, so any advice would be greatly appreciated. Thanks.
Sara (Debt Camel) says
Anyway, my credit file shows that I have a missed payment every single month until I paid off (after exhausting my investigations) the outstanding sum last year.
Does it? Or does it show you were 1 month in arrears for all this time?
steve hardman says
Many thanks for your reply.
Yea probably me reading the reports wrong!
However, when I look at Totally Money for example, it literally states “Missed Payment” every single month dating back to 2017. Same on ClearScore
If I get a full Credit Report, will that show it differently do you think?
Sara (Debt Camel) says
It should record that you are one month in arrears. If you get a statutory report, they are less pretty but often simpler to read, see https://debtcamel.co.uk/best-way-to-check-credit-score/
That still isn’t good, but there is no real reason to get it corrected as it is accurate. It is a shame you did not get this resolved mauch fasted in 2019, by now the problems before then would be looking like ancient history.
Rachael says
So I took out a Phone contract when in 2017 when i was 16 when i should really not have been able to but i somehow figured out a way. I missed a payment in 2018 and ended up not paying for it at all anymore. I got the letters through the door about the debt collection (£317) but acted as if it wasnt happening (young and foolish). In September 2021 I finally decided I had to grow up and get this sorted so I paid it off in full. It’s now going to be showing on my file until September 2024. Is there any way I can get it removed sooner? I assume theres not but i thought i may as well enquire.
Sara (Debt Camel) says
As yo7 say, you should not have been able to take out this contrac5 if you were under 18.
I suggest you send them a complaint saying this and ask for the missed payments and the default, or the whole record, to be removed.
Rhys says
Hi, Recently bought a new home and changed address etc on credit referencing agencies etc.. logged in to experian, all of my defaults are gone and its like a brand new report with just my mortgage on there and no phone contract or nothing ?! is this normal some help would be greatly appreciated! You may think awh why is he worried if defaults are gone but even though my score is now better there is no content to show my actual good payments that i have now built up etc and my credit report was growing again naturally with good management of payments etc! Please any advice would be appreciated :)
Sara (Debt Camel) says
have you changed your address with your bank?
rhys says
No Not yet as renovating and still need letters at old house as its empty
Sara (Debt Camel) says
it is usually moving your bank that makes your old details be linked up with your new bank account.
Catherine says
Hi Can a lender add a default after agreeing they lent irresponsibly?
Santander agreed it shouldn’t have lent me overdraft funds but the interest refund didn’t cover the overdraft.
They said I could repay the remaining balance by making any amount I could afford once a month until the debt repaid but that I couldn’t use the account.
Today they have sent letters saying they will default and report to CRA if I don’t repay the remaining balance in 14 days and May start legal action/pass debt to third party.
Can they do this?
Sara (Debt Camel) says
no they should not add a default if you have made a proposal to repay the balance at an affordable rate. Have you made an offer?
Catherine says
In the final response they said financial support will contact me to make an arrangement to repay the remaining balance,when contacted I filled in a budget planner and proposed £50 a month,was told that’s fine and that it was an informal agreement but as long as I made a payment towards the balance each month then I can pay whatever I can.The agent said for example if one month I could only pay £30 then that’s fine to just pay what I can.
This was arranged over 3 months ago.They have already wrecked my credit record as they removed the arranged overdraft(fine)and set as in arranged but it’s now recording late payments and my credit record now says I’m utilising 360% of available overdraft.
Doesn’t seem fair.
Sara (Debt Camel) says
Indeed. Tell Santander to correct this or you will be making a complaint to the ombudsman.
Actually the % utilisation of your overdraft isn’t counted in credit scoring. But late payments and a default are.
Catherine says
Thanks Sara,I contacted Santander and also sent the letters received to the FOS as Santander said they can look at this issue too as it relates to current complaint that is now been reviewed by an ombudsman as investigator didn’t uphold.
The investigator didn’t even review the parts of my complaint I’d asked and provided an incredibly short/irrelevant response.
My complaint had a few parts(irresponsible lending of overdraft(upheld directly)but then I raised issues regarding poor support,gambling from the account etc etc
The investigator then took 7 weeks to investigate and reviewed the irresponsible lending part that I specifically said I didn’t need reviewing as I was satisfied with their resolution and basically ignored the other issues I raised.
The ombudsman has now had my complaint for nearly 6 weeks.Hoping to have someone with gambling harm experience review my remaining points.
Michaela says
Hi Sara,
We’ve just found out argos have registered a default against my husband on 7th March. We only found out because we applied for a DIP mortgage. We never received a notice of default.
Can we dispute it?
Let me give you a time line
Missed payments November December January they then say they sent me a notice of default on 6th Feb we 100% did not receive it.
Missed February payment
6th March – statement received stating if payments weren’t made they ‘may take further action’
7th March emailed copy of ‘notice of termination’ received (although we didn’t actually see it and DEFAULT registered.
17th March received an email stating that we still had time to rectify the problem arrears were £375. I paid £400 the same day.
6th April – new statement received stating we were upto date and that there was £190 available to spend.
14th April applied for credit report for DIP and found the default.
I’ve contacted argos today who said that they sent the notice of default so if we didn’t receive that’s not their problem and we still missed the 4 payments. They couldn’t actually send us a copy of that letter, or see the letter themselves just that in the notes one was sent.
This default is the only bad mark on his file. Except a settled ccj that’s 5 years old. Mortgage broker has said if we can’t contest it we’ll have to wait 6 months and our dream house will be gone.
Do we have any hope?
Sara (Debt Camel) says
Why did you miss 4 payments with a mortgage application coming up? If this was the lenders fault – they failed to take payments by direct debit for example – then yes you should be able to get this removed. Otherwise they are entitled to add a default when you are 3 months in arrears.
Legally a Default Notice has nothing to do with adding a default to your credit record, so arguing you never got the letter is unlikely to help. A Default Notice has a legally defined format that doesn’t vary so it’s common for firms not to keep a copy of the letter sent to you.
Michaela says
My dad has been sick recently (bladder and prostate cancer) he had an operation in December and I spent time caring for him. We completely forgot the payments until I saw that request for payment on 17th march
Sara (Debt Camel) says
I’m sorry to hear that. Legally they are entitled to add a default. You could as them to remove it as a goodwill gesture, I have no idea if this is likely to be successful.
Peter says
Hi Sara,
I have been going through my credit report recently and see there is a default notice on there from Feb 2018. This was a Lending Stream loan that defaulted because they never took payment. I was working overseas at the time so didn’t get any correspondence from them at the time. I still have the log in and have checked my bank statements from the month the first payment should have been taken…. nothing. My bank account details are still stored in the ‘My Account’ section o the Lending Stream site and haven’t changed for 20 years+
Do you think I am eligible to have this default notice removed?
Many thanks and kind regards,
Pete.
Sara (Debt Camel) says
Is there still a balance owing on this?
Peter says
No balance. It was paid in full as soon as was aware of the issue.
Sara (Debt Camel) says
Then you can ask LS to remove the default.
Peter says
I will contact them. Many thanks for the help.
Sean says
Hi Sara
I have been in an IVA since 2017
I completed the IVA last December, this was marked as complete on the insolvency register February this year and I have received my completion certificate.
I had several defaults on my credit score, all of these except one have been marked as closed and removed.
The one remaining default is with Arrow Global and hasn’t changed.
This is marked as in Default since December 2017, if AG fail to remove this from my credit score, will it automatically drop off after 6 years
Thanks for your help
Sara (Debt Camel) says
yes it will automatically go 6 years after the default date
Nathan says
Hi Sara,
Its likely just wishful thinking from me but looking to get some advice on my default marker. In October 2022, I was struggling financially so I set up a 3 month payment plan on my 118118 loan to reduce the monthly payment from £152 down to £25. In December 2022, when this payment plan ended they issued a default notice but at that time I simply couldn’t afford to cover 3 months worth of arrears all at once so I contacted them to set up another 3 month payment plan to return to the original contractual payment of £152 as a way to say my situation has improved slightly and I will work to pay off the arrears when I can. Unfortunately for me the loan was still defaulted and then sold off to ACI last month. I have submitted an affordability complaint which they rejected so I’ve passed that on to the ombudsman but is there a case to say that the default was added unfairly?
I understand that being 90 days in arrears is the bar for issuing a default notice but the FCA defines a default as that plus “the firm reasonably considers that the borrower is unlikely to pay or otherwise fulfil its credit obligations to the firm” but given that I increased my monthly payments significantly isnt that enough evidence to suggest that my financial position was improving and there was reasonable grounds to suggest I could return to fulfilling my credit obligations?
Thanks,
Nathan
Sara (Debt Camel) says
I think the best chance of getting your credit record cleaned up is to win the affordability complaint. At the end of the second 3 month plan you still hadnt managed to repay any of the arrears.
Nathan says
Thanks Sara,
Just another quick question if thats okay, one of my other loans has also been sold to ACI but they’ve voluntarily as a gesture of goodwill removed £846 from my remaining balance. In terms of reporting to the credit agencies would this still be considered as a partial settlement? In the grand scheme of things its a positive regardless but I’m just curious.
Sara (Debt Camel) says
Who was the original lender? There is a default on this record?
Nathan says
The original lender was Likelyloans and there’s no default i was just in arrears which i cleared just before I was aware it got sold.
Sara (Debt Camel) says
I suggest you consider an affordability complaint to LL – they lose a lot of these. See https://debtcamel.co.uk/refunds-large-high-cost-loans/.
it may be ACI has just deleted the interest from the remaining balance. but winning a complaint will get the missed payment markers removed, which is what is damaging your score at the moment. A partial settlement is just a flag, it does not affect your credit score.
Nathan says
Hi Sara, just to give you an update I won the case with 118118Money, both the adjudicator and the ombudsman agreed in my favour. A quick question regarding the removal of the default marker, will I need to contact ACI separately in order for them to remove their default marker?
Also do you have any other emails for 118118 apart from their standard complaints email? They are terrible at responding and after agreeing that my credit card with them shouldn’t have been given to me they have continued to charge me interest on the balance.
Sara (Debt Camel) says
No, 118 should do this. But keep checking – if it isn’t done in 2 months, put in another complaint to 118.
Try siwan.jones@118118money.com
Jade says
I’m looking for some advice…
My ex partner took out car insurance in my name after our separation. The email address phone number and address we’re all his and not mine hence why I wasn’t aware. He then went on to make a late payment and cancel the insurance paying a partial settlement with them. I have been informed yesterday by checking my credit file that the rest of the debt was passed to a collections agency and they had been chasing for money. Obviously all correspondence was sent to him and I was never made aware. The car insurance company have referred me to their fraud team but how can I get the collector to sort this at their end? I have worked hard for the last 3 years to save and repair my credit after leaving this abusive relationship and was just about to get a mortgage, to say I’m heart broken is an understatement.
Sara (Debt Camel) says
Have you reported this to Action Fraud? This will give you a crime reference number which will help to convince the insurance company that you are the victim here.
Also do you have proof of living somewhere else at the time?
What other evidence do you have about the abuse?
Jade says
I will be speaking to action Friday this morning as I didn’t become aware of it until 7pm last night. I do have proof of living elsewhere and that I have never lived at the address he gave. I don’t think the default is from the insurance but from a debt collection agency who obviously have been passed on the details he gave them. I made a report to the police in 2020 following an incident and also still have messages etc from him where he admitted what he did as well as him being abusive over messages.
The abuse element isn’t an issue for me any more, I’m safe on my own now but cleaning up my report after separation to get to a score of 989 to be hit by this down the line has put a spanner in the works
Sara (Debt Camel) says
I mentioned the abuse element as it can be another indication that you were not on good terms with your ex and allowed him to use your name.
You sound on top of this and I hope it gets sorted soon. Very bad timing for you.
James says
I have a question about a credit card that was taken out fraudulently using my details by an ex-partner whilst we lived together. It was opened with Capital One, she then spent money on the card & never paid any of it back. Low & behold I get a default against my name. It’s been just over 5 years since the account was opened & the 6 year date on the default is November 2024. The debt has actually been sold on to Lowell & I have been disputing this with them for the past 12 months or so. After getting nowhere with them or their appointed solicitors I have managed to speak to Capital One’s fraud team. After giving them as much info as possible about my claim & my ex-partner they have told me that their findings can confirm that the account was opened fraudulently. They have also said any links to Capital One & this debt will be removed from my credit file, which is great news! Except Capital One no longer own the debt, it is now Lowells!
Should lowell just remove this debt from my file as Capital One have confirmed it as fraudulent, or do I need to speak to Lowell to get them to remove it? I want it gone as quickly as possible as I am hoping to apply for a mortgage with my new partner in the coming months
If you need any other info that might shed some light on this please just ask
Thanks in advance for any advice you can give
Sara (Debt Camel) says
Did you ask Capital One if they will resolve this matter with Lowell?
James says
Thanks for your reply Sara,
I’ve not had the chance to reply to Capital One just yet as I wasn’t expecting such a swift response & outcome from them.
I’ve already contacted Overdales (Solicitors dealing with it on Lowell’s behalf) & explained everything to them & forwarded a copy of the email I’ve received from Capital One, so I’m hoping this will be enough for them to stop chasing me & to remove the negative entry on my file, but I’m not expecting anything instant. I’m just worried that if I rely on these companies to do everything, then nothing will happen, if that makes sense?
Sara (Debt Camel) says
This should get sorted. If it doesn’t you can Send a complaint to the Financial Ombudsman
James says
Thank you Sara, much appreciated
Joe says
Hi,
TSB have put a default against my account following money coming out of my account AFTER I had switched to Nationwide. I didnt agree at first and therefore refused to pay the outstanding amount. I then received a letter from a debt collectors agency, so i paid the debt i didnt believe i owed. TSB put the default on my account anyway.
Do you think a default such as this would be possible to remove? I will have written correspondence from nationwide that I did everything involved with the switch correctly. TSB have also twice told be the default would be removed, only to then go back on their decision.
Sara (Debt Camel) says
I think you should send them a written complaint, setting out why this was not your fault and how it is not treating you fairly to add a default for this. (Email in this article https://debtcamel.co.uk/email-addresses-banks-credit-cards/)
Take the complete the Financial Ombudsman if TSB do not agree and get this sorted.
Dave says
I had a mail order account several years ago and due to income related issues I made an arrangment to pay, which was agreed. After a few months the mail order company sold the account to debt managers and they were happy for me to pay the same amount per month that I had previously agreed. Several months later, debt managers sold the account to Intrum. I contacted Intrum and ask to pay at a reduced amount as my desposable income had reduced.
Intrum agreed to a new reduced amount. However, a few weeks ago they sent me a notice of default, which I challenged as I was paying an agreed monthly amount. Intrum told me that a Customer Support Representative forgot to set up the repayment plan and In regards to the contractual repayment amounts, arrears and the default notice issued on reference XXXXXX . Unfortunately we are unable to stop the arrears process. The arrangements we have agreed to (of £5.00 monthly on every account) does not override the original contract and as such if the monthly payments are lower than the contractual amount, arrears accrue and eventually if not cleared, a default will be registered.
Intrum refer to contractual repayments and original contract and as far as I am concerned niether exist . I sent Intrum a Subject Access Request which they have sent and there is no contract in the paperwork.
I strongly believe that the default should be removed, am I correct?
Sara (Debt Camel) says
No. A creditor is entitled to default the account even if there is a payment arrangement in place.
One thing you can do is ask Intrum to produce the CCA agreement for the debt – see https://debtcamel.co.uk/ask-cca-agreement-for-debt/
Dave says
I asked for Original Agreements and Credit Agreements in my GDPR request. However, Intrum did not provide this information. Do you think that I should still ask Intrum to produce the CCA agreement and is there still a £1 fee applicable?
Sara (Debt Camel) says
Yes. You asked what they had. That doesn’t mean they cannot get the CCA agreement from the original creditor… to find that out you need to make a formal CCA request with the £1 fee.
Pam says
Hi
When a default is removed after 6 years with a balance, does the balance also disappear from your credit fule?
Sara (Debt Camel) says
Yes the whole record disappears. Are you currently making payments to this?
Mark says
Hi my girlfriend take some credit cards to my name, like Next, Argos, without my permission, they all are to my name and she made this all cards default, what can I do to fix my credit scores, and my future?
Sara (Debt Camel) says
Read https://debtcamel.co.uk/loans-using-your-name-stop-identity-theft/ which looks at the 5 steps to take.
Dan says
Hello Sara,
I entered a DMP in 2017 and paid off everything (or so i thought) by 2021. I had a default registered by a company called Arrow Global in 2021 in regards to a leftover portion of the debt with Vanquis, though the Vanquis information does not appear on my credit report, only Arrow. I did a SAR for Vanquis and it turns out that when I changed my address back in 2017 they sent me a letter saying that it had ‘failed’, but sent this to the wrong address. They then corrected this a few weeks later and sent the letter to the ‘right address’, which at this point was my old address that I no longer lived at so I didn’t see the letter.
When Arrow Global tried to contact me about paying, they also got another completely different address (This one was incorrectly reported by Quickquid in 2016). When I complained and asked them nicely to remove the default they said it was the most up to date address they could get for me from Transnion and rejected my request, though when I look at Transunion I can see that I was on the electoral register at my current address from 2020 and they address they’ve used as the ‘best’ is from 2016.
Do you think I have a case to complain here? I have a final response from Arrow but do I have to complain to Vanquis too? Looking at the SAR, Vanquis never registered a default.
Sara (Debt Camel) says
Which firm was your DMP with? Do you know why Vanquis wasnt paid in full?
You never paid anything to this debt after 2017?
What is the default date on your credit record?
Dan says
Hi Sara,
Thanks for responding to me, my DMP was with Stepchange. My DMP started in 2017 and I was making reduced payments to Vanquis through this, the debt was then sold to NCO/Arrow Global in June 2020 whilst I was still making payments to the DMP. I can see that the debt was sold on by Vanquis with £476.73 remaining and I paid £245.44 to NCO/Arrow through Stepchange after this, leaving £231.29 which is the exact amount of the default in February 2021 and the payment I made to NCO/Arrow Global in September 2021.
I can only assume I didn’t give Stepchange accurate amounts at the start of my plan as I was under a fair bit of stress at the time with so many debts, which resulted in the £231.29 being left over after my plan was complete.
Regardless of the address debacle i’m a bit confused by the SCOR documentation as in Principle 3 it says the below;
“It is important that you are made aware, when such an arrangement is made and maintained, that it will show on your credit file and that whilst arrears may accrue and increase a default will not be recorded”
I did make an arrangement to fixed payment with Vanquis when I entered the DMP, though the other 10 debts I had at the time all defaulted me within 6 months of entering the DMP and Vanquis was the only one who didn’t ever register a default.
Sara (Debt Camel) says
Lenders can choose to add a default when you are 3-6 months in arrears.
I think you should ask Vanquis to add a default back in 2017. Point out all your other debts did and have dropped off your credit record. Say it is not treating you fairly for this to still be recorded on your credit record until 2027,
John S says
Hi Sara
I have a very old debt from University days (store card taken out in 2003/2004) – i paid the interest and small repayments for many years but couldnt clear it. I prob should never have been given it (i was an unemployed student living in overdraft) but its pre 2007 so i can’t challenge on affordability. In 2018 i was unemployed and defaulted (£400). It is not yet satisfied. My last payment was Feb 2018 and default placed August 2018 so it drops off next August. I am in a much better financial situation now. And I want to satisfy it but want to see if you thought I could negotiate at same time having the default date moved forward so it drops off quicker
Before Feb 2018 my last payment was September 2017 so a gap of 5 months. Could I argue default should have been added sooner? 3 months post Sept 17 or even 3 months post Feb 18 (instead of 6)
The debt was originally with HSBC who ran the store card but is now with Cabot Financial
Thankyou for any advice you can give – am trying to remortgage so any way to bring forward the default disappearing would be a huge help
Sara (Debt Camel) says
Are you trying to remortgage with a different lender or just get a new fix for the same size mortgage? Who is your current mortgage lender and when does your fix end?
John S says
My fix ended some time ago (it’s interest only and I’d like to switch to repayment.) but because of the default it wasn’t practical to get another (and monthly interest repayments were low enough to play waiting game – they are not now of course).
Now it’s 5 year mark on the default a couple of options are potentially there. But if I stay with my current lender I think I can only switch to another interest only one. My mortgage lender was TMB but they went under so it’s with Halifax/bank of Scotland now.
Mortgage broker says to get access to high st lenders I need to satisfy the default too. Hence me wondering if I could negotiate an earlier date at same time (not trying to cheat entirely, I was more than 3 months late at an earlier point so I wondered if worth trying)
Sara (Debt Camel) says
So you have asked Halifax for a switch to a repayment mortgage? How much more will a repayment mortgage cost you than the current IO at a variable rate?
You can ask the store card to backdate the default, but technically there is nothing wrong with what they have done.
Ruth says
Hi Sara,
I had a default which was supposed to drop off my file being 6 years on 24/7/23. However it is still on my file. What should I do please?
Sara (Debt Camel) says
which credit report are you looking at?
Ruth says
Hi, it was MSE credit club
Sara (Debt Camel) says
I think that is a monthly report – in which case it is possibly reporting on old data. You can either with a few more weeks and try again, or get a copy of the experian Statutory Credit Report, which is free and up to date: https://www.experian.co.uk/consumer/statutory-report.html
HJL says
Hi posted this a while ago and you asked for more info – took out a Tesco unsecured loan in March 2017 &missed the first 2 payments in Jul& Aug 2017. I then paid & caught up with payments in Sept 2017. After that, credit file shows consecutive missed payments from Oct 2017 til Jan 2018 ie missed payments 4 months in a row. I then had an arrangement to pay from Feb to Sep 2018 marked on credit file. Then I paid on time and loan paid in full in 2021. The AP is still on my file & will be until 2027. Is there any way I could ask tesco to apply a default instead. Would the default apply from Oct 2017? If this will be possible then would the default not be visible to lenders after Oct 2023? Do mortgage providers only see defaults within the past 6 years or can they see them if they are older than 6 years? Am I best to speak to a financial or bad credit advisor to help contact tesco to request the AP changes to default? I’m worried I don’t do it properly so would expert gave me a better chance?
Jul 2017 – no payment, Aug 2017 – made payment that was less than the monthly amount,
Sep 2017 – paid September amount & repaid all amounts owed, Oct 2017 – no payment,Nov 2017 – paid monthly amount for Oct, Dec 2017 – paid monthly amount for Nov but Didn’t pay Dec amount, Jan 2018 – paid 20% of monthly amount.
My credit file shows missed payment for all of these months apart from Sept.
Sara (Debt Camel) says
In your previous comment you said:
“from October 2017 until January 2018. I might have made payments during that time but my file shows missed payments 4 months in a row”
and I said you needed to check your bank statements to be sure whether you did make any payments. You seemed unsure and you cannot rely on credit records as being accurate.
Have you checked your bank statements? Your situation is very different if you did not make any payments, if you made some payments but late. Or if you made lower payments. Without knowing this there is no point in guessing if Tesco would add a default.
Only you can find these facts out from your statements. You can still get those from closed accounts.
Have you spoken to a mortgage broker? As the debt was repaid a couple of years ago, you may be able to get a mortgage now at an OK rate if you have a suitable deposit and pass the affordability checks.
HJL says
Hi thanks this is what my bank statements show:
Jul 2017 – no loan payment
Aug 2017 – made loan payment that was less than the monthly amount
Sep 2017 – paid September amount & repaid all amounts owed
Oct 2017 – no payment
Nov 2017 – paid monthly amount for Oct
Dec 2017 – paid monthly amount for Nov but Didn’t pay Dec amount
Jan 2018 – paid 20% of monthly amount.
Sara (Debt Camel) says
ok so by Feb 2018, at no time had you ever been 3 months in arrears.
If Tesco stick by the rules, it is unlikely they would add a default before Feb or Mar 2018. And it could be later.
Have you spoken to a mortgage broker? How large a deposit do you have and what is your affordability like at the current mortgage rates?
Emma says
I have a credit card which defaulted in September 2017. Last month the card was removed from my credit files but I have just seen that it has been added back on again and they are again reporting the default.
I still have a balance, which I am paying off, but I thought that the default dropped off my record after six years. I don’t see why they have added it back again this month. The card was with Nationwide.
Sara (Debt Camel) says
Is the debt still with Nationwide?
Also some others questions which aren’t directly relevant to this default issue, but may change what your options are: when did you first get the card? What is the remaining balance? And how much are you paying a month.
Emma says
Thanks. Yes the debt is still with Nationwide, though they have appointed a debt collector. There is an outstanding balance of £620 and I pay at least £25 per month towards it.
I am not sure when I first got the card. When the card was previously listed on my credit reports I don’t think much info was listed prior to the default in September 2017. I think I had it a few years before the default at least. The record now starts at September 2023 with a default.
Emma says
I have just checked and the card was opened in January 2014.
I have looked at my credit report again. The account number is different to the previous one, and the default date has changed to December 2017. It is really frustrating. I will give Nationwide a call this afternoon.
Sara (Debt Camel) says
ok, well that is very odd. Especially the different account number – are you 100% sure these are the same debt?
If it is a different debt, you need to know about this. Because in that case it sounds like you haven’t made any payments for nearly 6 years? In which case it may be coming up to the statute barred point – see https://debtcamel.co.uk/statute-barred-debt/. If this may be the case, you may want to say nothing for the next few months and see if you are contacted about it, as if you contact them aboiut it it may “acknowledge” the debt and restart the statute barred clock. I don’t encourage people to ignore communications about a debt coming up to be statute barred, but in this rather odd situation I see no reason to poke a sleeping lion.
If you are sure it is the same debt, you can complain and ask them to put the default back to September 17… but at least the new record will dropping off again in December.
Emma says
Thank you. I have no idea what is going on. The balance is the same, but the credit limit shown on the credit record is different £3,125 compared to the actual limit of £3,100.
The information shown on Credit Karma shows the balance hasn’t reduced since Oct ‘22 and also that £50 has been paid in the same period.
I had an alert from ClearScore this morning that the credit card was being added to my record. My next update on this app is tomorrow.
I will wait and see what happens in December. Hopefully it will be removed.
I have had letters on the past from Zinc acting on behalf of Nationwide, but just continued paying Nationwide direct. I will see if any letters come from them and what account number they show if they do.
It will be interesting to see what effect this has on my credit score, though this is currently being hit by being is ESO with Amigo. At least the default date is still before I took out any loans with Amigo!
Thanks for your help.
Sara (Debt Camel) says
Ok re the Amigo claim. Have you got your bank statements from the time that you applied for the loan, in case you need these for an appeal? And downloaded a copy of your credit report?
Malcom says
Hey Sara
Thanks so much for a great resource. Was wondering if you could help me with some advice.
Welsh Water defaulted me for an unpaid bill back in 2020. I’ve disputed it with since then, tried to get them to remove it and they wouldn’t. They’ve been late payment marking me every month since then too. Has ruined my file naturally.
I’ve now set up an arrangement to pay it in instalments – The debt is £1500. I’m paying £100 a month. Paid £200 off so far. So it’ll be a year before its paid off fully.
I wanted to ask your advice on whether I should try and get it paid off sooner, like a lump sum, or should I just keep to the instalments?
I read your page here and it stated that paying the default off made no difference anyway but likewise perhaps it looked better if it was satisfied sooner? I think I caught a comment here where you mentioned it looked “bad” if there was an arrangement to pay?
I appreciate the default won’t be going anywhere until 2026 – I just wanted to do the best I can with where I am at right now. My partner and I were considering a mortgage in the next couple of years, but I know this will stifle my chances.
Thanks so much.
Sara (Debt Camel) says
When you say “there are late payment marking me every month” can you clarify what is showing on your credit record:
– Are there two records, one showing a default and a more recent one showing late payment?
– Or is there 1 record that shows late payment every month since the problem started?
– Or is there one record that shows a default every month since the problem started.
Malcom says
Hey Sara,
Thanks so much for the response.
– Are there two records, one showing a default and a more recent one showing late payment?
This – There is a default (dated) and they keep marking my account as delinquent each month because of the outstanding arrears. When I view Experian, it shows the default and then every month Late/Missed payment mark.
Sara (Debt Camel) says
so the reason I am asking this is normally after a default, a default is marked every month. Are you saying this isn’t happening?
Louisa says
Hi, I have just realised I have a default listed on my credit report as I missed 3 payments to Tesco Credit Card, the total balance on the credit card was only £650 and has been paid now, the reason I missed these payments were because I unfortunately suffered 2 miscarriage’s this year which had took its toll on my mental health and my mind has been elsewhere. I’m back on top of things now but the payments were missed around the same time. Do you think it could be worth speaking to Tesco and asking them to remove the defaults? My mortgage is up for renewal next year and I’m petrified I wont get a decent rate with that default on file.
Sara (Debt Camel) says
Who is your mortgage lender?
Was your credit record spotless before this?