“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.
“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 actually improve your credit score, but it will mean that more lender are willing to give you credit.
“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 won’t be deleted, but it should be changed to be earlier. That means it will drop off sooner. See “What should the default date for a debt be?” which describes how to get your record corrected.
“It’s not fair – I only missed one payment”
In this case, no default should have been added as you were never three months in arrears! Write to the lender, then appeal to the ICO if the lender refuses to correct it, see the above article about what the default date should be for details.
“The lender agreed to reduced payments but still added a default”
This can feel very unfair, but legally they can do this when the arrears 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.
“A debt collector has added a later default”
They shouldn’t have done this.
A debt collector can add a new record, but it should have the same default date as the original lender. Write to the debt collector and ask them to correct it, and then appeal to the ICO if necessary.
“I never owed this money”
If the debt isn’t yours, you should tell the lender and ask them to remove it from your credit record. It’s not just your credit record that matters here, you don’t want to be chased for money by the creditor or be taken to court for a CCJ.
If you recognise the debt but you don’t think you were ever in arrears with it, ask the lender for a statement of account to see where the problem is.
“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 a lender will admit – or a court may decide – that a debt isn’t enforceable. If this is because it is statute barred, then a default should have been added to the debt over six years ago so you should ask for the default date to be changed so that it is earlier.
But if it is unenforceable for other reasons, the debt still exists and the lender may refuse to delete it from your record because you do still owe the money.
“I should never have been given the loan!”
Until a few years ago I would have said you will find it hard to make this argument work… but since then many thousands of payday loan defaults have been deleted from credit records when people have won affordability complaints.
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, Brighthouse, large bad credit loans and even catalogues.
Hundreds of thousands of these complaints have worked. Here is a comment from a reader who made a successful complaint against Satsuma, a payday lender:
I accepted Satsuma’s offer on 2nd January and received the cheque on 17th January. The negative information already removed from my credit file as well which made my credit score jump by 100 points :)
“I was in an abusive relationship”
Many people, usually women, have been pressured to take out credit for a partner or had a joint account with an abusive partner. Financial abuse is now recognised as a serious problem and most banks now subscribe to the Financial Abuse Code of Practice published in 2018.
If you feel the debt and the default resulted from an abusive relationship, I suggest going to your local Citizens Advice and asking for their help to see if the debt could be written off and the default removed.
Summary – when can you get rid of defaults
If the default doesn’t comply with the “3-6 months arrears” rule then you can ask for it to be corrected.
But if the default is in line with the “3-6 months arrears”, there often isn’t anything you can do about it except wait for it to get older and then drop off.
Pay a defaulted account to help credit score?
Is an unknown debt on your credit file?
Improve your credit score for a mortgage
Rina says
Hi,
I have recently made a request to Idem collection agency for my original agreement under S77-79 of the Consumer Credit Act and have received a response today stating it cannot be located (yet!) so they acknowledge the debt can’t be enforced. (I have been making payments to this debt via a DMP through Stepchange for 10+ years)
My questions are:
1) Can a CCJ or default still be registered on my credit file for this debt? (They state they will continue to pursue me including registering defaults with CRAs)
2) Should I continue to make payments toward this debt or do I have grounds to cease payments?
My last payment to them through my DMP was today.
Your advice would be appreciated.
Thanks!
Sara (Debt Camel) says
1) they shouldn’t start court action unless they can find the CCA so you can’t get a CCJ. It’s very rare for a firm to try this.
How does the debt show on your credit record at the moment?
2) how long ago did you ask for the CCA?
Rina says
Hi Sara,
Thanks for your reply!
The debt isn’t showing on my credit file. I believe it may have been defaulted in 2010 before it went to the collection agency but can’t remember. I’m worried that they might default it if I stop making payments.
Should I go back to them for confirmation on what they report before I stop?
I requested the CCA mid Jan and received it today.
Thanks again
Sara (Debt Camel) says
if it isn’t there then is because it defaulted more then 6 years ago. They cannot add a new, later default. This debt is not going to reappear.
I usually suggest waiting two months before you assume it cant be found and tell StepChange to stop payments
Rina says
Thanks Sara.
Really appreciate your response and knowledge.
You should receive honours for empowering people to understand their rights!
I’ll take your advice and wait a couple of months.
Much appreciated!
Paton says
Hi Sarah
I am in a similar situation to above Was in a DMP then came out of it with the intention of offering partial settlements to my creditors. Most of them accepted apart from Link who issued a default which l didn’t think they could do as l thought Barclaycard issued one years ago but apparently they did but wasn’t registered. I then asked for the credit agreement which they don’t have so they admitted it’s not enforceable. I queried the default turns out l was given false information from Barclaycard. Link responded saying they weren’t going to pursue the debt. I’m annoyed about the default though how come they can default it if it’s not enforceable and aren’t pursuing me for a debt. I have paid the majority of this debt off so feel it’s unfair to have the default now even though they know they can pursue me for the debt. Any help much appreciated.
Sara (Debt Camel) says
I suggest you back to Barclaycard and ask them to add a default back 6 months after you got into trouble. Then Link have to use that old default. See https://debtcamel.co.uk/debt-default-date/
Paton says
I actually phoned them after Link put the default on my account to make a complaint about them giving me the wrong information. They just apologised for someone giving me the wrong info 🙄 But I will get back in touch with them and ask to speak to a manager about getting it removed. Thing is if they issued me with a default you’d think they would have followed through with it wouldn’t you cause that’s what the told me 3 times when I phoned them. 🤷🏻♀️ Very strange is you ask me 🤔
Sara (Debt Camel) says
Who are you going to phone, Link or Barclaycard? And how long ago did you start making reduced payments?
Paton says
Hi Sarah
I have phoned Barclaycard a few times who told me the default was put on my account in the 4/3/12 at least 3 different people l spoke to said this. That’s why I didn’t bother when Link threatened to issue a default. Was in a DMP for about 8 years with a few different ones they kept moving my account to another company.
So you think l should phone Barclaycard and ask them to issue the default they were originally going to do? Although Link aren’t going to pursue me for the debt due to not having the CCA I feel it’s not right they can still issue a default 🤔
Thanks so much for your help and advice Sarah 🙌🏻
Sara (Debt Camel) says
Well it’s up to you. But it sounds from what you have said that there should have been a default back in 2012 and that would mean the Link debt drops off your credit record now.
Jim says
Thank you Sara,
Very helpful advice. I cannot remember if I was sent a Default Notice, but the loan defaulted in June 2014 (apologies, not February as I stated in my previous message) and I have not made any payments or acknowledged the debt in any way since then. My reading of your comments is that it may be better to wait to receive a “Letter Before Action/Claim” and then request a CCA at that stage for what it’s worth (as it is unlikely the debt has been sold). Thanks again for your help. Any further advice will be helpful.
Jim
Jim says
Hi Sara,
They finally sent me a “Letter Before Action” through their solicitors, to which I have replied requesting further information. I have also sent a CCA letter directly to NatWest for what it’s worth and I am awaiting a response. In any case, this default should drop off my credit file in June this year.
I have another default on file (from Orange in 2016) due to expire in 2022. This was for a relatively small sum (less than £100) which occurred as an error on my part really! Because my mobile phone account (which I had kept since 2006) had been moved over to EE, I did not realise that an additional number I had taken out (on the same account) had remained with Orange. When this bill arrived, I thought it was an error and promptly ignored it! By the time I realised and settled the account a few months later, it had already been defaulted by Orange.
I have written to Orange requesting that they consider removing this default but have not yet received a response. Is this a reasonable request in view of the circumstances? Is there another approach that I could adopt to get this default removed? I understand such contracts are not necessarily covered under CCA rules. Thanks.
Jim
Sara (Debt Camel) says
“They finally sent me a “Letter Before Action” through their solicitors, to which I have replied requesting further information.”
I hope you used the proper reply form, you didn’t just send a general letter.
No I don’t your request to remove the orange default is reasonable. Good luck with it but I doubt you will succeed.
Temmy says
Dear Sara, I defaulted (couldn’t meet up with the payments) on a Barclaycard credit card in 2006. The credit card was taken out in 2004. I was on a DMP from 2006 for about 10 years and I am presuming that a default notice was issued during this period and has now dropped off as nothing is showing on my credit record. Received a claim form from Asset Link ( I have been in touch with Legalbeagle as advised by you but no response yet so just looking for general advice now) in which they stated that a default was recorded in 2016 after they had been assigned the debt in 2015. I have just checked my credit record and in the ‘closed’ account and there are 2 accounts showing. 1 from Barclaycard showing a £0 balance but payments being made from Mar 2011 until Feb 2015. The 2nd account is for Link Financial rather than Asset Link and the reference number is different so not sure if it is for the same debt. This one is showing payments being made from Jan 2015 till Sept 2016. I came off the DMP around this time so my confusion is, whether a DMP payment is regarded as a normal payment even though it was much lesser than the minimum payment required ( original debt around £4000) if a default was not added to the account at the start of the DMP, can I now request it? . I have sent off a CCA request to Asset Link but I just want to know where I stand with the default dates. Thank you in advance Sara, you have been so helpful.
Sara (Debt Camel) says
Honestly you need to defend this Claim. You can resolve any credit record queries later.
Talk to National Debtline on 0808 808 4000. Sending off a CCA request is NOT sufficient to defend a claim and you are likely to end up with a CCJ if you do not enter a good defence.
philip says
I have a default which was satisfied and is now two years old. Will Equifax increase my score automatically or do I have to ask them to do this. I understand that my score could increase by 100 points. Thanks for any help with this matter.
Jim says
Hi Sara.
Yes, I used the proper reply form and followed your earlier guidance contained in this link – https://debtcamel.co.uk/letter-before-claim-ccj/
Thanks again for your help.
Jim
Edward Quigley says
Tye advice I’ve received contradicts this. I have been told that it is within lenders gift to remove a default and they can do so IF they choose. Getting them to do so is another matter, but wouldn’t you agree that this can be a way for some individuals to have a default removed from their credit file – subject to full settlement of the amount owing? Thanks.
Sara (Debt Camel) says
In practice any lender can remove any default at any time. However, that would not comply with the SCOR principles which all lenders are supposed to use. Because all lenders rely on credit reporting to help them decide who to give credit to, it is in all lenders’ interests if the reporting is factually accurate and that means people shouldn’t be able to bribe a lender to remove a default by offering to settle a loan.
I’m not saying this never happens, but it shouldn’t.
Adam says
Hi
love your page and advice you give
I have a Capital One Credit Card, I was 5 payments behind, and then brought the account up to date, I then missed the next payment(11th), but paid it by the 25th of the month, but received a letter dated 24th that I have now defaulted
Does this seem accurate for being one payment behind? Could this be a mistake or removed at all on the grounds I was in a better position?
Thanks
Sara (Debt Camel) says
So you failed to make 6 payments in a row on time? But after the 5th one you brought the account up to date?
Is your position actually better or are you scrabbling around each month with this and other debts?
Adam says
I missed 5 in a row, paid the payment to bring my account back up to date, then missed the next payment, but now paid that to bring up to date.
I am in a better position with my money now, paying this Card and other debts off too
Sara (Debt Camel) says
Well you could ask them to remove the default, saying it has been unfairly added as at the time your account was only one month in arrears. But strictly they were entitled to add a default when you had missed 3 payments.
Laura says
I was a customer with Southern water for 12 years paying my bill on time every month I phoned to inform them I would be leaving the property 10 days later and could I settle my bill in full, and was informed as I hadn’t yet left the property I could not pay the bill.
I then moved country was very poorly in pregnancy and due to an oversight missed the final bill of £56 i do not recall receiving a default notice, however I was heavily pregnant or had a newborn at the time, I then had a default placed on my account by Southern water but was unaware of this until I applied for a mortgage on being made aware of the default I cleared it in full. Yet it is still showing as a default on my experian account. How can I get them to remove this default from my credit report?
Sara (Debt Camel) says
what is the date on the default on your Experian account?
Laura says
Hi so the opening account date was 19th April 2007
Default date was 12 nov 2017
I rang on 17th July 2017 to inform I was leaving the property on the 27th July 2017
And I paid the full outstanding balance including all fees which was over £130 but only £56 was the water fee and the rest was charges beginning of 2019, they still havnt even updated my file to state I’ve paid in full..
it’s just showing on my account and my husband account as £90 default which was never the amount owed or paid?
Sara (Debt Camel) says
So that default date look right if you didn’t pay the final bill. The amount may be wrong, but getting that corrected won’t make any difference to yiour credit score.
Did you tell Southern where you were moving to? Or did you have a direct debit set up that should have paid the bill?
Gina says
Hi, I’ve now recieved a deadlock letter from virgin media. They state I never closed the accounts and still owe the outstanding balances.
Sara (Debt Camel) says
so you have two proiblems.
One whether you owe the balance. Do you have any proof of what you said before, that “Virgin changed my contract so allowed me to leave penalty free from the contract. I cancelled contract and as far as they told me my account was up to date at the time.” ?
Secondly why it is still on your credit record. Whether you owe the money or not, the account should have been marked as in deafult 3-6 months after you stopped paying.
What ombudsman did they say you could take the case too?
Gina says
Thank you for your reply.
I dont have anything from the account now as it’s been so long and I believed the account to be closed. They have said I am able to forward my complaint on to CISAS now that I’ve recieved their deadlock letter.
Priya says
Hi Sarah,
I recently found out I have an NPower default account (default date March 2019) when moving from London to Manchester and never received any correspondence. It’s the usual story unfortunately. However I’m keen to have records for my own piece of mind and just well…at least I’ll have records.
So, after chasing, I found the creditors with my Npower account and have paid off the debt in full (I’m under no financial difficulty, I’ve just found myself in a very annoying situation). Wescot, the collection agency were never given my full contact details (ie phone number or email) and Npower’s last recorded correspondence with me was 3 weeks after leaving my old flat. Am I correct in understanding that I’m allowed to ask for original correspondence of the notice to default the account? Even if it got sent to the old address? What happens if they never sent it? What other paper records can I ask for to show that they actually made some level of effort to make correspondence regarding a final bill and an account default?
Thanks!
Sara (Debt Camel) says
You can ask for details of any correspondence with you. But if you have paid it all off, I am not sure why you would bother.
daniel arnold says
I have read along of articles on here regarding defaulted accounts, however I’m confused about one thing.. Has a company I.e. Vodafone, got the power to remove my defaulted account from my credit score?
Sara (Debt Camel) says
Yes, but they need a good reason to do that.
Daniel Arnold says
Excellent cheers, they have basically called me a liar and that I have never paid anything to a debt collection agency until I got proof off the bank I’ve been paying them for 48 months (July-2015- July 2019) the debt collection agency has since gone bust and now Vodafone apparently don’t know where the debt has gone 🤷🏻♂️
Darren says
If a pay day loan company has gone into administration, can negative data be removed immediately from my credit file. Is there legislation surrounding this and can I ask the credit references agencies to remove the data. For example defaults or CCJ or any association with the lending organisation? I also have irresponsible lending claims against them currently in consideration?
Sara (Debt Camel) says
No. What usually happens is that the administrators will assess your complaint and where they decide a loan was unaffordable, that loan will be deleted from your credit record. But this isn’t fast.
who are the lenders?
Darren says
The Money Shop & Active Securities TA 247 Money Box loans.
Sara (Debt Camel) says
ok you are JUST in time to put in a claim to the money shop – it has to be in by 9 April! See https://debtcamel.co.uk/money-shop-to-close-two-million-customers-will-be-informed/ which has a link to the Claims page.
for 247 Moneybox, send an email to customer.services@247moneybox.com saying you want to make an affordability complaint.
If you don’t win a Claim it is very unlikely the negative data will be removed.
Darren says
Hi Sara
Many thanks I already have claims in for both its a very long process, waiting for the administrators, I guess its just awaiting game for now.
Best wishes