“This default is destroying my credit score – how do I get rid of it?”
This is a very common question!
It’s sometimes asked when people’s finances have improved and they are trying to clean up old problems on their credit history as fast as possible. Or sometimes the default feels unfair in someway
I will look at various cases to see what – if anything – can be done for each of them.
But first, there is no magic trick that an “expert” can use to do this. Don’t ever pay a firm that says they can sort this for you. Their claims are often exaggerated, they can’t do anything that you couldn’t do yourself.
Contents
The rules about when debts disappear from your credit record
There are three credit reference agencies (CRAs) in Britain – Experian, Equifax and TransUnion. They all apply the same rules about reporting defaults.
How long a debt stays on your record depends on whether the record shows a default date or not. The two rules are:
- a debt with no default date stays on your record for six years from the date when it is settled. This applies whether it was settled in full or partially;
- a debt with a default date stays for six years from that date. You may have paid it in full, made a full and final settlement, not paid anything to it, or still be making payments… none of these matter, the debt is still going to drop off after six years.
So the default date is an important piece of information for you to know. Don’t guess! Check your records with all three CRAs so you know exactly what they say.
Having a debt drop off your r4ecord because the default was over 6 years ago is the same in practice as having the default deleted.
Situations where the default should be removed
I am not saying these will be easy, but these are the most likely cases to succeed.
“I never owed this money”
If the debt isn’t yours, you should tell the lender and ask them to remove it from your credit record. It’s not just your credit record that matters here, you don’t want to be chased for money by the creditor or be taken to court for a CCJ.
“I was never in arrears”
If you recognise the debt but you don’t think you were ever in arrears with it, ask the lender for a statement of account to see where the problem is. You can then check against your bank statements to see if you made other payments that weren’t recorded.
“The lender stopped taking the money”
Sometimes the lender stopped taking the monthly payment by direct debit or by continuous payment authority. You may have assumed the debt was repaid and only found out later a default had been added to your credit record. Here it is the fact that the lender stopped taking the payments that is important – you may be able to get evidence from your bank that you did not cancel the DD or CPS until months later,
“It’s not fair – I only missed one payment”
In this case, no default should have been added as you were never three months in arrears!
Write to the lender, then appeal to the FCA /ICO if the lender refuses to correct it, see the above article about what the default date should be for details.
“A debt collector has added a later default”
They shouldn’t have done this. A debt collector can add a new record, but it should have the same default date as the original lender.
Write to the debt collector and ask them to correct it, and then appeal to the FCA/ICO if necessary.
“The default was added very late”
The rules say that a default should normally be when you are 3-6 months in arrears compared to what your normal payments would have been.
If a creditor has added a default later than this, it should be changed to be earlier. That means it will drop off sooner, and your credit record will be clean sooner.
See “What should the default date for a debt be?” which describes how to get your record corrected. For many people this is just as good as getting the default deleted and it can be a lot easier.
Cases where you have to win the argument to have it removed
“I was never properly informed about the debt”
Arguments can occur between you and a creditor if you feel they didn’t properly write to you about the debt, explain what the debt was or the size of it. Perhaps you moved house and the creditor carried on writing to your old address even though you notified them you had moved – this sort of thing.
If you paid the debt promptly as soon as you know about it, you could ask the lender to remove the default. Pointing out that you previously had a good history of paying their bills on time and that you don’t have other credit record problems can support your argument. You may have more luck going to the relevant Ombudsman rather than the ICO if the creditor refuses.
“The debt isn’t enforceable”
Sometimes this will work, sometimes it won’t.
Sometimes a lender will admit – or a court may decide – that a debt isn’t enforceable because it is statute barred. In this case a default should have been added to the debt more than 6 years ago, so you should ask for the default date to be changed so that it is earlier and then the debt will drop off your record.
When a creditor cannot produce the CCA agreement for a consumer credit debt it isn’t unenforceable in court. See Debts – why, how & when to ask for the CCA agreement for details – this does not apply to all types of debt. Here the debt still legally exists and you owe it even though you do not have to pay it – as a result the default will not be deleted.
“I should never have been given the loan as it was unaffordable”
Lenders should have checked you could afford to repay a loan before they gave you the loan. A loan is only “affordable” if you can repay it without hardship and without having to borrow again or get behind with bills.
If a proper check would have shown that the credit wasn’t affordable for you, ask for a refund of the interest you paid and for any defaults or late payments markers to be deleted from your credit file. See Affordability refunds for info on how to make these complaints for different sorts of credit including payday loans, Provident, guarantor loans, car finance, large bad credit loans and even catalogues.
Hundreds of thousands of these complaints have worked.
Sometimes the lender will only remove “negative information” such as defaults and missed payments. Sometimes the whole credit record will be deleted.
Here is a comment from a reader who made a successful complaint against Satsuma, a payday lender:
I accepted Satsuma’s offer on 2nd January and received the cheque on 17th January. The negative information was removed from my credit file as well which made my credit score jump by 100 points :)
“I was in an abusive relationship”
Many people, usually women, have been pressured to take out credit for a partner or had a joint account with an abusive partner. Financial abuse is now recognised as a serious problem and most banks now subscribe to the Financial Abuse Code of Practice published in 2018.
If you feel the debt and the default resulted from an abusive relationship, I suggest going to your local Citizens Advice and asking for their help to see if the debt could be written off and the default removed.
When it is very unlikely a default will be removed
“The lender agreed to reduced payments but still added a default”
This can feel very unfair, but legally they can do this when the arrears reach 3-6 months.
This applies if you have payments arrangements with one or two lenders or a debt management plan through a DMP firm. See How does a DMP affect my credit rating for more details.
And although you may hate that default, it may actually be better for you than an Arrangement To Pay (AP) marker on your file! A defaulted record disappears after 6 years, an AP marker stays for 6 years after the debt is settled.
“The lender is adding a new default every month!”
This may make your credit report look dreadful but it is normal and it doesn’t matter:
- the later defaults don’t make your credit rating worse because lenders’ scoring systems only look at the first one;
- the debt will drop off 6 years after the first default, the later ones don’t affect this.
“I agree with the default, but six years is too long!”
If you just had a temporary problem, perhaps you lost your job, or couldn’t work when you were unwell, but after a year you were sorted and back making payments it can seem very hard for this black mark to stay on your credit file for so long.
But there is nothing you can do to make the default go away sooner.
You can add a Notice of Correction to your credit file to say why the problem happened.
As the default gets older, some lenders will be less worried about it. But for some creditors, eg many high street mortgage lenders, any default, even five years ago, may result in a rejection.
Usually the best you can do is settle the debt as soon as possible. This doesn’t get rid of the default and doesn’t improve your credit score, but it will mean that more lenders are willing to give you credit.
When the lender has gone bust and can’t be contacted
This is a special case.
If the lender will not respond to the Credit Reference Agencies, then you can ask the CRAs to “suppress” the credit records. If this happens, although the records are still there, they will not be shown to any other lenders making a credit check on you.
Read How to correct credit records if the lender has gone under in detail and see if you think it can help you.
Don’t try to do this if the lender is still going. Or if it is the early stages of an administration – then it is better to put in a claim in the administration to get a refund for unaffordable lending. If your claim is upheld, the default will be deleted, and often the administrators just delete the credit record as it is simpler.
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Rosie says
Hi there – thank you so much for this post and the information on your site, it has been invaluable. I wonder if you are able to help with a query – myself and my partner are looking to move home in the next 12 months or so, my partner has credit issues on his file including a DMP, 2 x defaults registered in oct17 (and a further one from a debt collection agency that we will look to have backdated) and missed payments that were settled between 24 – 36 months ago. So, we will definitely be looking at a subprime mortgage if we do move – however, upon checking my credit report I have discovered I have a default from Apr19 through an energy company when I was querying a final bill. I assume I could ask for this to be removed as a) I was in contact with the company querying the amount and b) I recall seeing a final notice but am fairly confident I didn’t get sent a notice of default. My question is – would it be better to ask for this to be removed from my file as a default (total amount £662) or should I keep it on there as we are going to need a subprime mortgage anyway? We would be looking to get a 2 year term initially, meaning that when we come to remortgage all of the defaults, most of the missed payments and the registration of the DMP should have fallen off my partners record – but my default would still show, though it would be 48 months + old by that point.
Any advice very gratefully recieved!
Sara (Debt Camel) says
You do not have to be sent a Notice of Default before a default is recorded on your credit record. A Notice of Default is a formal notice given under the Consumer Credit Act – it has nothing to do with your credit record and it is not relevant for energy debts at all.
Has this default been repaid? Was it right or was the amount changed when you queried it?
Rosie says
Hi – it was fully settled, they agreed the useage looked wrong (the final month had been billed at more than double the next highest month) but said there was nothing they could do to evidence it as my first readings were submitted about a month after I moved over to them (so I think it was more that my total usage during the time I was with them was possibly overbilled). But I paid the full amount in the end.
Sara (Debt Camel) says
ok so you can’t ask to have the default correct as the bill was wrong. How long did all this take to sort out before you paid it?
Rosie says
I raised the initial query on 16th Jan, the final email from shell confirming they wouldn’t reduce the amount I owed was on 5th july and I paid on 22nd July (the total amount as per the original bill)
Sara (Debt Camel) says
Well you could ask them to remove it as a goodwill gesture pointing out that you paid it as soon as a decision had been made on your dispute. I have no idea how likely this is to work.
Shaun says
Hi Sara
I had success with the ombudsman. They ruled the 118118 money loan was unaffordable to me. The adjudicator ruled they have to repay interest and charges and all negative information including the default are removed from my credit file which 118118 money have accepted. The adjudicator was absolutely fantastic it was all dealt with and sorted within 3 weeks.
Thanks for your advice
Sara (Debt Camel) says
That is very good news
James says
Hi
I am trying to get two defaults removed from an account – I have discussed this before but can’t find that post. Background:
I had two Barclaycard credit cards that I was unable to pay fully. Back in 2009 Barclaycard sent me default notices on both accounts but they never defaulted the accounts as there were no CCAs on the accounts. A bit later they sold the debts to Link Finance.
In 2018 Link defaulted both accounts. I wrote off to Link last year offering them 20% of the balance (bearing in mind these are unenforceable accounts) for them to mark them as settled AND for them to remove the defaults. In the meantime I have been making token payments of £1 against each account.
About two months ago I wrote off to them giving them the same 20% offer to remove the defaults and mark the accounts as settled. They haven’t responded. On my credit report these accounts are just marked as ‘D’ each month for defaulted. If I was to stop paying the £1 token payment do you know whether my credit report would show a ‘D’ still against the account/month or would it show an ‘X’ for a missed payment? A couple of defaults on my credit record is bad enough but missed payments would make things worse – but I can’t see how Link can report both. I’m considering stopping the token payments to try to force the issue of getting them to maybe consider my offer of 20% on unenforceable accounts.
Many thanks
Sara (Debt Camel) says
so the default dates are in 2018 on both records?
Have Link confirmed the debts are unenforceable?
Did you ever ask Barclaycard to add default dates?
James says
Thanks for your reply
Yes, both accounts have default dates of 2018 – August for one and November for the other. Link haven’t confirmed that the accounts are unenforceable but Barclaycard confirmed that they were sold as un-defaulted and that they were unenforceable. I did ask for the CCA off Barclaycard many years ago when we got into trouble in 2009 and they didn’t have the signed CCA then. Should I ask Link for the signed copy of the CCA?
I didn’t ask Barclaycard to add the default dates to tie in with the original default date. Is it worth asking this? I did ask the ombudsman whether it was correct that a default notice could be given and then no default applied and then a default added eight years later – they said no wrong had been done and they couldn’t ask for the defaults to be removed..
As it is, the defaults ‘only’ have three more years to run so my credit score is creeping up, albeit very slowly – it’s currently near top of the Fair (Experian) and does fluctuate. I would prefer if the defaults weren’t on there at all though.
Cheers
James
Sara (Debt Camel) says
An Ombudsman case – was this against Link or Barclaycard?
James says
Hi Sara
The case with the Ombudsman was against Link. I did speak to Barclaycard and they advised that the reason they didn’t place the default was because the account was unenforceable and they said that it would have been unfair to do so.
Cheers
James
Sara (Debt Camel) says
did you make a formal complaint to Barclaycard?
James says
Hi Sara
I didn’t complain to Barclaycard – would it be better complaining to them? I did speak to the Ombudsman in person regarding Link who said that I didn’t have a case against them and also thought that I wouldn’t have a case against Barclaycard as it is up to them whether they put on a default or not. It did take quite a while from the initial complaint to Link to the Ombudsman finally coming back to me – something like nine months.
I hadn’t thought of tying to get Barclaycard to put the default onto the account at an earlier date. I was hoping to appeal to Link’s sensible side and offer them about 20% – about £500 in total – for the two accounts combined to get them to clear the defaults. I am assuming that this is more than they paid for them and it will be more than the remaining token payments that I need to pay whilst the defaults are on record – I have under 36 months left.
As mentioned earlier, Barclaycard advised the debts were unenforceable and when I asked for the CCA back in 2009 or 2010, they didn’t have it. I can’t see Link having found it since.
As Link have not replied to my latest offer of a payment I was hoping that if I stopped paying the token £1 payments it may make them realise that they either get 20% or nothing. However, if my credit report starts showing missed payments then this would be bad as it will show defaults plus recent missed payments.
Cheers
James
Sara (Debt Camel) says
yes I suggest you send a formal complaint in writing to Barclaycard, saying they did not treat you fairly by failing to add a default date because this has meant the unenforceable debt is still showing on your credit record. Ask them to add a default back in 2009 when they sent the default notice.
re Link, I suggest you ask them to produce the CCA agreement for the debt. Use the formal letter linked to in here https://debtcamel.co.uk/ask-cca-agreement-for-debt/.
If I was to stop paying the £1 token payment do you know whether my credit report would show a ‘D’ still against the account/month or would it show an ‘X’ for a missed payment?
once a debt is defaulted it will always show as defaulted. This won’t change if you stop paying it.
You cannot make link accept a low settlement amount even when they agree the debt is unenforceable. There is also no point in trying to get the debt settled if your aim is to improve your credit score – settling a debt in full or partially doesn’t affect your credit score.
If Barclays backdate the default, the debt is going to disappear.
Miss C says
Hi all,
I am in need of a little advice when it comes to a debt I have. The original creditor was Avant Credit and I took the loan out in April 2016, I struggled to pay the loan due to unaffordability (I sent them an unaffordability email that was advised on this website but they replied stating if this was the case then I lied on my application form therefore its fraud?! So I just left the complaint and continued to pay it). In May 2017 Avant passed the debt to Asset Collections and Investigations who I’ve been paying small amounts to since. In January of this year I had an email from ACI saying to avoid them putting the defaulted account on my credit report I should pay in full otherwise I should expect the default to be recorded within the next few months. I didn’t have the £1700 to pay in full so I had to continue with my repayments. Up until this month the account/default hadn’t been added. I have now had some money to pay the balance in full and have done so. I would like to know if there is any way I could have this default removed because A, I’ve been with them since 2017 and they’ve not recorded it since then. B, I’ve now paid in full. So even though the offer to not report it on my cf was back in January I’ve managed to pay it all now so would they do a good will gesture by removing it? What do you think? Any ideas? Thanks
Sara (Debt Camel) says
It is a shame you let the complaint drop – several creditors make noises about fraud but so far no one seems to have had a problem when they send the complaint to the Ombudsman. But it is too late for you to do this now.
You coild complain to Avant that a default should have been added when your account was 6 months in arrears. Ask them to back date it. If it is backdated to 2017 it will drop off in 2023, which is probably better for you than having the default removed, in which case the record with the payment arrangement showing will still be there until 6 years after the settlement date.
Miss C says
Hi Sara, thanks for such a swift response. I have checked one of my free credit reports and ACI/Perch capital have recorded the default on there as ‘start date 16th April 2016’ and ‘date of default 26th May 2017’. So would you say this is OK as date of default is 2017 so should drop off in 2023? Or could I still ask for the default to be removed as a good will gesture now I’ve paid the balance in full? (They need to update the balance to zero/closed as it is still showing as £1600). What would look ‘better’ for my file do you think?
Sara (Debt Camel) says
it will drop off in May 2023.
you said earlier
I had an email from ACI saying to avoid them putting the defaulted account on my credit report I should pay in full otherwise
did you check your credit record at that point? Was the debt entirely absent from the record at that point?
That default date doesn’t sound wrong does it?
I think the chance of them agreeing to remove a correct default date is pretty small. If it was removed this would increase your credit score as it would be replaced by missed payments or payment arrangements which are “less bad” than a default. But after Mat 2023, the missed payments will continue to show until it has been 6 years after the debt was settled, so they will be on there a lot longer than the default will.
Miss C says
Hi Sara, yes the debt was entirely absent. They basically said if I didn’t pay in full then the debt would be added and that was the only was to avoid it being added. At that point in time I didn’t have the balance to pay it off unfortunately. As I have been able to pay it in full now I wonder if they could remove it from my file entirely. Probably not but it might be worth asking?
Sara (Debt Camel) says
well you can ask. But you can’t argue that it was wrong to default the debt.
tina says
Hi, my query is about a default.
Well I had a current account with Natwest they decided to close my account last yr feb 2020 and I had an overdraft of £2500 with them. On my credit file I had all green ticks until April 2020 last yr they passed on the debt to Moorcroft . But in May 2020 last yr I started paying back to moorcroft on time each month , then in July on my credit file I got a D mark. Under April – June on my file it says missing payments but underneath each month the balance is reducing which means I was paying them back an amount each month but says I’ve missed payments obviously I haven’t as the monthly payment was going to moorcroft by direct debit.
I don’t understand why I got a default in July 2020 and then months after that up until this yr March 2021 each month had an “U” mark and “S” mark is on the final month that the debt was cleared. Can they just add a default even though I paid on time each month. I just don’t understand why I have a default even though I’ve made payments to moorcroft and the debt is now all settled. I can admit that I missed 1 payment in April as this was during lockdown and trying to ignore it as at that time everyone was just so anxious and didn’t know what was happening and the debt was passed over to Moorcroft.
But to say I’ve missed 2 and 3 in may and June and then D was marked in July I feel this isn’t right. (Payments was made )
can they still add a default on my file at later date ?
Thank you
Sara (Debt Camel) says
why did they close your account in Feb 2020?
tina says
Hi Sara ,
I’ve been in the overdraft for a few yrs but haven’t missed any charges but maybe only once or twice during those yrs I didn’t have enough money in for direct debits to go through but 98% of the time wasn’t over the limit. After an review of details and my income etc… sent in proof of wage slips etc.. they just sent me a following letter to say they have decided to close it.
Sara (Debt Camel) says
Was there a long period – a year or more – when you were in your overdraft the whole time? Never getting back into the black when you were paid?
(My questions may sound irrelevant, but they aren’t…)
tina says
Yes there was a long period where I was always in my overdraft but all charges were being paid even though I was still using the overdraft .
Sara (Debt Camel) says
ok, so one more question. When the account was closed, did you agree that it would be paid off at a certain amount per month? And were Natwest still adding charges/interest after it was closed?
What happened to your credit record sounds very odd.
tina says
Hi Sara ,
No no other charges were added on just the amount of the overdraft that I owed.
When they decided to close the account they sent me full pack of the terms and conditions and a letter that my account was to be closed down and they won’t tell me they reason why and and advised me to use another bank but not within the RBS group. So
Basically I was banned from opening one with them.
Opened 2 other current bank accounts on the high st with no problems at the time. They gave me a date of the account closing and asked to be paid in full before they close it down but no other option and said if not paid they will pass onto debt collector. And then in March I received the letter that it was going to be passed on. But March credit file had a green tick which shouldn’t be really cos feb they closed the account down . I think it’s odd too. I did speak to moorcroft and they said normally the debt is defaulted before it goes to them. So I don’t know why cos on my credit file it says missed payment April. Even if adding up the time frame between they close account onto MC would have been max 2 months. The last letter I got from them was this Yr April to say all payments paid and officially close the accounts and credit file updated.
Sara (Debt Camel) says
So I certainly think you can ask NatWest to backdate the default to the point it was passed to the debt collector.
BUT I think they may have behaved unreasonably in allowing you to be in your overdraft for a long period constantly. And then closing the account and demanding full repayment – yes that is in the T&Cs of an overdraft that they can, but to do this when they have contributed to your financial problems by charging you interest on the overdraft when they should have realised you were in difficulty was unfair.
I suggest you send them a complaint saying this. Ask for the default to be removed completely and for a rfefund of the interest and charges you paid from the time you were constantly in your overdraft. Send the complaint to the Ombudsman if they say No.
I will be writing a new article just on this sort of overdraft problem soon – look out for it!
tina says
Ok Sara thank you for your advice.
I will write to natwest.
Thank you so much.
Martin says
I live in Scotland and I have a default which is now over 5 years old. In my case the debt is now prescribed and unrecoverable by the collection agency. Should this be removed from my credit score or does it have to wait the 6 years before dropping off. I don’t feel it is right to still be punished when no action can be taken. Any thoughts would be great. Thanks
Sara (Debt Camel) says
The credit reporting rules are a history of your payment record.it doesn’t matter if the debt is enforceable or not, the history is kept for 6 years after a default. You may not think this is right but that’s the way it works.
Unless you think the default date should be earlier than it is, so it would drop off sooner, there is probably nothing you can do.
Martin says
Thanks, in my case they could and should have raised a default much earlier as they automatically took a payment from my tsb account and I had to tell them to put it back which kept delaying. All in all I have not made a payment to this account for just under 7 years.
Should I approach the doc and ask them to reduce the amount outstanding on my credit file to £0 as technically this is what is due.
Sara (Debt Camel) says
No, you still legally owe the money even when the debt is unenforceable.
But you can ask the original creditor to backdate the default, see https://debtcamel.co.uk/debt-default-date/. If that is changed to over 6 years ago the debt will immediately drop off your record.
Martin says
Thanks, according to experien I have not made a payment for over 7 years. In the past the bank would take payments without my authority and they would then have to put it back. This appears to reset the clock for missed payments but no payment was ever made. Should I approach tsb or dmc to question.
Sara (Debt Camel) says
Ask TSB to change the default to be earlier.
Martin says
Do I run a risk that making contact with TSB may be regarded as acknowledging the debt. I know it is over 5 years for Scotland buy don’t want the clock to restart.
Sara (Debt Camel) says
“In my case the debt is now prescribed and unrecoverable by the collection agency. ”
Did TSB or a debt collector confirm this in writing?
Martin says
Neither, it has been over 5 years since the default was logged. I have had no contact from either in 2 years. Should I speak to dmc to confirm this. Thanks
Sara (Debt Camel) says
I suggest you speak to National Debtline on 0808 808 4000. They have Scottish specialists.
Don’t speak to TSB or the dmc unless NDL says it is clearly statute barred.
Scott says
Hi, I had a loan with 118 118 money which ended up forcing me into a dmp as it was unaffordable, the debt was sold to azzuro associates after a couple of months who then a year later after purchasing added a default even though I’d made every dmp payment in that time, I’ve recently had a irresponsible lending complaint upheld with 118 who have cleared the remaining balance with azzuro which was just the interest left and refunded me too with what I had over paid and they’ve agreed to wipe the record for the loan off my credit file, my issue is with azzuro as I’m trying to contact them to remove their default record of the loan which was added a year after purchasing and when I was paying the interest on the loan which has now been wiped do I have a case for them to remove their default record? Thanks
Sara (Debt Camel) says
Yes a default with a debt collector should be removed. Tell. 118 to organise this.
Scott says
Ok thank you I’ll contact 118 and chase this up ASAP. Thanks Sarah
Scott says
Hi Sara I contacted 118 118 who said they would contact azzuro but it seems azzuro have just closed the account and not removed the default! Surely it should be removed as it was the result of an irresponsible lending claim and it was added a year after they bought the debt and when I was paying the interest which has now been removed? Do I contact 118 again and chase this up with them?
Really frustrating as this is the only default on my credit file and is really holding me back currently :(
Thanks
Scott
Sara (Debt Camel) says
Yes, tell 118 that you will be sending your complaint to the Ombudsman if this isn’t sorted.
Also send Azzuro a complaint email.
Do both!
Scott says
Hi Sara, so 118 have said that there reaching out to azzuro to query why the default has not been removed and azzuro just keep telling me there still investigating the matter and said they’ll reply within the 8 weeks don’t see why it 118 have reached out to them it needs investigating? Do I just sit and wait for a decision or take my case now to the ombudsman? Thanks
Sara (Debt Camel) says
I suggest you send your complaint to FOS 8 weeks after you sent it to 118.
Amy D says
I had a joint acc with HSBC. We were experiencing financial difficulties so we set up a debt management plan through StepChange and changed our bank acc to coop.
We paid the arranged payments for several years to HSBC, then once we sold our house we settled the remaining debt with them and closed the account. They have now been reporting the acc as still open and defaulted with a balance of £190 for over a year. I have phoned them several times only to be told all old accounts are closed and we don’t owe them anything. I raised a dispute with transunion and it came back that the info on my credit report regarding the HSBC acc was correct?! I phone the bank again and got the same info, they say all accounts are closed and we don’t owe them £190. Yet every month they continue to report this apparently defaulted and open acc. It’s destroying my credit score. What can I do?
Sara (Debt Camel) says
It is HSBC that has to correct this – you need to raise a complaint with HSBC saying that they are incorrectly reporting to TransUnion that you still owe a balance, despite HSBC agreeing with you on the phone that the accounts are all closed and settled. Ask them to correct the credit record. Send your complaint to the Financial Ombudsman if they refuse.
Amy D says
Thanks. Can I request this over the phone? Last time I tried to ask them to correct it, they just told me to raise a dispute with transunion. I feel like I’m going round in circles. Tonight they told me to go to my nearest branch (60 miles away!) and get a print out to prove my acc is closed. I refuse to do this when it’s not my fault.
Sara (Debt Camel) says
Well you could but it is better to put a formal complaint in writing. You could use thus form here https://hsss.hsbc.co.uk/ukpersonal/contactforms/contactus_complain.jsp?nrfb=false.
Follow up with a phone call if you have not had any acknowledgment in a week.
Say it is unreasonable to expect you to travel 60 miles to a branch when they have made an error.
Say your complaint goes to the Financial Ombudsman if it is not resolved.
Amy D says
Thank you, will do!
A says
Hi Sara,
I’ve been an Amex credit card customer for over a year and have never missed any payments with them nor have any been carried over. Every payment has always been made on time. Last week, I applied for a second product with them and this was approved. On the same day, my account was placed under review. They then contacted me again a few days letter saying my accounts would be cancelled due to them finding ‘negative external information’. I received a notice of default yesterday and it states that the agreement will be cancelled on or after 22/11. Since I have never missed a payment, can they do this ? And how do I stop them from placing a default next to my name in 7 days time.
One thing to note is that I do have a CIFAS marker next to my name unfortunately and it’s been 5 years since this was placed. I do believe that this is the reason they’ve cancelled my account. On this basis, since I’ve not missed any payments, can I prevent this default from being placed by Amex?
Thank you
Sara (Debt Camel) says
If you have never missed a payment and have a zero balance on both the old and new accounts then no default should be placed.
A says
Hi Sara
Thanks for your response. Would you say the best thing to do is contact them and ask to remove it ? If not, it would be the financial ombudsman next right?
Sara (Debt Camel) says
yes ask them to remove it. If they refuse, ask why.
John says
Hi, I got into financial trouble 5 years ago and entered a payment plan which runs for another 2 and a half years. On entering the payment plan after a few months all but one creditors defaulted me, obviously happy with defaults as they drop off after 6 years.
Now the problem being Barclaycard decided instead to mark my credit report every month since as ‘Arrears 1’. So at the moment I have 5 years of Arrears marked on that account. After trying to contact them they advised I go through equifax and report it through them only then for barclaycard to respond to equifax asking me to contact them directly. I haven’t done this yet as I’m really unsure how to approach it to ask them to default my account after they refused to entertain my request through equifax.
Am I right that this should be defaulted or am I wasting my time? Also any help on some wording would be greatly appreciated thanks
Sara (Debt Camel) says
Telling you to go through Equifax is absurd.
The SCOR rules say a default should be added when the account is 3-6 months in arrears, as the article above explains.
I suggest you tell Barclaycard either they agree to add the backdated default or you will. Send your complaint to the Financial Ombudsman.
John says
Thanks for your reply I will do exactly that.
One last thing why would it say ‘arrears 1’ every month for 5 years surely that should of changed to ‘arrears 2’ and so on until 6. Just wondering if there is a known reason behind this continuous marker other than to hinder someone’s credit further.
Thanks for your help Sara
Sara (Debt Camel) says
a lot of creditors don’t pay much attention to this sort of thing.
Miss L says
Hi Sara, I took a loan out with Avant Credit in 2018 which defaulted. It was passed to a DCA and it now has been paid off. I have checked my credit file and the debt is recorded twice there once with avant and one with DCA. Is this right!?! Kinda looks like two debts rather than the one
Sara (Debt Camel) says
It does look bad, but the credit scoring systems ignore the first of these debts. so it doesn’t harm you.
BUT Avant loans are expensive and were often given without proper checks that you could afford the repayments.
A loan is only “affordable” if when it is given it seems likely that you will be able to make the repayments and still be able to pay your other debts, bills and living expenses without having to borrow more money.
If this loan caused you difficulty very early on, then it may not have been affordable. In this case you can make a claim to Avant (not the debt collector) and you may be able to get a refund of the interest paid (including what you paid to the debt collector) and also to have the defaults removed from your credit record.
To find out more, read https://debtcamel.co.uk/refunds-large-high-cost-loans/ which has a simple template letter to start these complaints. lenders often reject good complaints, so just send it to the Ombudsman to look at if this happens to you.
Miss L says
OK thank you. I was going to make a complaint to Asset Collections anyway as they emailed me telling me they will reduce the debt by 10% if I paid in full and if I did this then they would keep any defaults off my credit file. For two reasons I feel this was unfair.. 1, They were aware I was on maternity leave at the time as I asked to reduce monthly payments temporarily as I was on lower mat pay-therefore why offer this when it’s clear I couldn’t accept. And 2, paying £1600 in full/having no defaults recorded if I did feels extremely unfair and unaffordable. Like a push, bribe or warning to pay in full?! I may be seeing this the wrong way but it definitely didn’t seem right to me.
Sara (Debt Camel) says
If you think the loan was unaffordable at the start complaining about that is a better approach as if you win it removes all the missed payment/payment arrangement markers. And removes all the very high interest.
I don’t think the Ombudsman will say it’s unfair to offer 10% off.
frogman says
Help please.
I have a default from barclaycard which defaulted in June 2018. The account was later sold to PRA and is now settled in full.
On my Experian, these are showing as 2 separate defaults, although the barclaycard one says its been sold to a CAIS member.
My question is – Is this the normal reporting system? wouldn’t a prospective lender see it as two separate defaults? if so, can I get one of either barclaycard or PRA to remove theirs?
Thanks very much
Sara (Debt Camel) says
This is absolutely normal and what should happen. Credit scoring systems and lenders should ignore the first default.
frogman says
Thank you very much once again Sara
Alex says
Hi Sara,
I had default applied by Fernovo (quidie ltd) on my file for an ex amount. I was in a DMP started in November 2018. Whilst repaying my debts via a DMP I sent a complaint email to Ferratum for irresponsible lending. We came to an amicable solution without going to the FOS and in their email they wrote the following
“To provide you with an incentive to close the account as soon as possible, we are willing to completely delete this account from your credit file, once repaid”.
I have accepted their offer and the full debt was paid back in August 2021 but still, a default was applied.
I have written to them an email regarding the complaint resolution and asking to remove the default. Do you think they should do it? if I would have gone ahead to the FOS with the irresponsible lending the adjudicator would have written to have any negative information on my credit file .
What do you think about it? if they do not account, can I escalate it to the FOS?
Sara (Debt Camel) says
Definitely.
They made you an offer and they have not kept to it.
Mike_p says
Can you do the opposite and ask a lender to add a default? I have a Nationwide credit card in a DMP and they have added an arrangement to pay marker, but a default would be a lot better for me as it will come off earlier.
I have already made an unaffordable lending complaint to them which they rejected and is now with the FOS, the AP marker appeared after I’d complained.
Sara (Debt Camel) says
Yes you can sometimes, see https://debtcamel.co.uk/debt-default-date/
But in yiur situation as all negative marks will probably be removed if you win the affordability complaint, I suggest you wait and see what happens to that.
Graham Power says
Hi Sara,
My wife and I entered into a DMP with Payplan in March 2010 and paid up until October 2019 and managed to clear all outstanding creditors. Fast forward to now and we are looking to re-mortgage with Santander and have applied for a decision in priciple and been rejected. I have checked both of our Experian accounts and it transpires Arrow Global on my wife’s credit file have a default date of 010117 on one of her accounts. I have contacted Arrow Global and the lady acknowledged that they have records of our DMP and first payment in April 2010 for this particular account and I have asked them to backdate the default date from January 2017 to 2010. I have also acknowledged that the date could be between 3 and 6 months after March 2010 which is sometimes common practice with creditors. My question to you is should this be quite straight forward for them to agree and backdate as they have records from 2010 and 7 years is a considerable period of time for a default to be added to an account which defaulted in 2010. I have emailed them today and shall await their response.
Sara (Debt Camel) says
It should be simple for them to do. Whether they will agree straight away, I do not know. Can you come back and say what happens?
Graham P says
Hi Sara,
Yes no problem once they respond I shall update you.
Tim says
Hi Sara,
I’ve been checking my credit report and noticed my closed account with MyJar. They incorrectly reported the account and reported a default also. I complained and they agreed to remove the default in Nov 2020, and to allow 60 days for it to reflect – I have just seen that it is still on my report. I have followed it up just now with an email and received an auto generated response to my email that I will be answered as soon as possible, however a quick google search shows MyJar entered admin. Where do I stand in getting this sorted?
Thanks
Sara (Debt Camel) says
I suggest you wait a month and see if you get a reply.
Melissa says
I’d like some advice please.
2019/2020 I had lots of payday loans, all settled in full now and won some complaints about unaffordability also in 2020.
During my complaint to Peachy/Loans on Go they put my account on hold whilst assessing my claim. In August 2020 they got back to me upholding the complaint partially and offering me a settlement of £98 – total was hundreds so I paid this and settled.
I also emailed them regarding negative information to be removed from my file. They agreed to this but had just gone into administration therefore said once I’d settled it to ask CRA to remove it and they would agree this (I have this email as proof).
Anyway nothing showed up on the CRA I normally use so I thought nothing of it. I’ve recently checked on Credit Karma and its showing on there as default May, June, July 2020.
Ive written to equifax to try and sort this out including the email proof. Do you think its likely they will remove this? I’m now saving for a house deposit and don’t want this to be a stumbling block when I try to buy in a few years alongside my payday loan history.
Thank you.
Melissa says
Transunion not equifax. It is not appearing on clearscore or experian.
Sara (Debt Camel) says
I hope they will do this. If they say you should talk to the administrators, tell them they said to speak to you. You can ask TransUnion to “suppress” this data if the administrators will no longer respond to TransUnion’s queries, see https://debtcamel.co.uk/correct-credit-records-lender-administration/.
Melissa says
Thank you :)
Natalie says
Was with First Utility, made my ‘last’ payment 30/12/16 and nothing until 27/7/17. Made 3 payments until 16/10/17. then made none until 2018 when paid £200 on 09/11/18 and £200 on 21/11/18. Defaulted on 19/02/19 by Shell Energy. I was in a financially abusive relationship over this period surviving on student loans to pay for myself and children. I arranged repayments to SE when they rang via DD but amount was £300 per month so when I got to it I had to cancel as couldn’t afford to pay it. advised to approach step change but DMP or DRO scared me. Should the utility company have defaulted me during a previous period? Reading ICO guidelines normally between 3-6 months. It was sent to a debt collector and cleared £500 within four months with the remainder of the balance, £2k, being paid and satisfied on 15/09/19. The effect on my credit has been tremendous. Trying to get a mortgage is an absolute nightmare. Am I totally wrong or should my account have been defaulted earlier? Spoke to the company 08/21 and logged it as a complaint. The man I spoke to on several occasions who looked through it all told me he felt that I was unfairly defaulted and that the company hadn’t fulfilled their duties and was confident default would be removed. decision maker decided no and went to deadlock. Have letter of deadlock with a £50 goodwill gesture offered. Should I got to ombudsman? Still with Shell Energy and my utilities have never been cut off…
Sara (Debt Camel) says
have you explained the financial abuse problems?
N says
Thanks for responding. No, I haven’t. We were both full time students, I lost any benefits as they counted this as income and he wouldn’t contribute to the household only spending his money on himself which I always ended up having to add to/or to buy him extras. I have no evidence and if I’m honest I’m not sure I can face digging up the past again. It was traumatic in other ways also but it’s just not the line I want to pursue, maybe stupidly of course. Can I pursue any other way? Received deadlock letter in 08/21 and have done nothing about it
Sara (Debt Camel) says
I think you may as well go to the Ombudsman – what do you have to lose?
Defaults where there is an ongoing supply are never a very clear cut decision though.
One thing – quite soon the default will be more than 3 years ago and it has been paid for more than two years. At that point it may again be worth talking to a mortgage broker as it may be possible to get a mortgage.
N says
Absolutely, I’ll definitely go to the ombudsman. It’s worth a shot! Thank you.
Currently talking to a broker who said yes it is a possible and is looking around for me but I’ve been told it’ll be with a specialist lender who will charge that higher rate of interest… currently paying 18.9% on my consolidation loan…
Sara (Debt Camel) says
ouch. How large is this consolidation loan?
N says
I know! Correction it’s now 15.9%… the original loan I took out for 11k was 18.9% and I redid it after a year and managed to lower it by 3%. There is just over 6k left. Default has just ruined everything
David says
Hi, I have an account that was opened in January 2011 and has never been paid (I don’t remember this but I wasn’t the best with credit in my younger years so it’s likely I did take out the account) anyway, since January 2011 every single month has been marked as a missed payment and a default was never applied to the account so it’s just ongoing on my credit report and having a hugely detrimental effect. I can’t afford to clear the amount stated on the account and I’m also aware that if I do, it would mean it would stay for a further 6 years. I have had no contact with the lender, certainly in the last 10 years so the debt is absolutely statue barred. Can I do anything to have this removed from my report?
Sara (Debt Camel) says
Who is the lender? What sort of debt was this?
David says
Hi Sara, it’s Virgin Media and I believe was a mobile phone account
Sara (Debt Camel) says
From your email address, it sounds as though you have a pretty common name. It is possible that this was never your debt at all…
You need to contact Virgin about this. Say you have no recollection of the alledged debt, you have never been contacted about it and it is your understanding that if it was your debt it will now be statute barred. Ask them to either delete the credit record or add a default date back in 2011 so it will drop off your credit record.
Matt says
Hi sara
Any help in what I should say back to Experian , this was there response when I asked the lender to add a default through a dispute help would be appreciated.
Thanks
Matt
I’m writing in relation to your recent query with The Enterprise Fund, regarding the account started on 14/02/2014.
They’ve confirmed that there is no default visible on the account, late payments are accurate and the account is still active, so we don’t have permission to amend or delete this entry on your credit report.
They have provided the following response to the dispute we raised on your behalf:
“Despite being significantly overdue this account has actually not been defaulted. It is showing – currently – as being 6 payments down though this is clearly incorrect. As there is no default applied we are unable to remove or adjust the default information the customer believes he has seen on his credit record. It would also appear that this client has never been sent a notice of default and on that basis we cannot retrospectively go back and apply a default as at March 2016 (which would have been the correct date) and indeed this would need to be removed imminently anyhow. We would of course be willing to work with the client to reduce the balance to zero which would be reflected positively on his credit file.”
Sara (Debt Camel) says
It is useless asking Experian to do this if the creditor says no. Complain to the creditor, not experian. Then take your complaint to the Financial Ombudsman if the creditor rejects it.
(The only exception here is if the creditor has gone bust and the company has been dissolved. Not the case here.)
Neil says
Hi Sara
I had a loan with quidie back in Dec 2018 for 3 months. I paid the first instalment on time in December.
However I missed the second payment by 10 days in January 2019 which was paid in full.
Can quidie mark this as a missed payment on my credit file even if it was just 10 days late.
From what I have been reading creditors would usually mark a missed payment as missed to CRAs after a month has gone without repayment.
Just need advice on weather quidie is right to report a late payment to CRAs for a 10 day late payment. Thanks
Sara (Debt Camel) says
A payment 10 days late is very often recorded as missed.
If you win an ffordability complaint for this debt. you would get a refund of interest and all the negative marks would be removed from your credit record – see https://debtcamel.co.uk/payday-loan-refunds/ for how to do this.
Dls says
Hi Sara
I just wanted to let you know and say thank you and also in case anyone else sees this and it helps.
I followed your advice got the date of my default changed. It was defaulted in October 2020 when actually I started my DMP in 2014. It was on a current account (overdraft) so I wasn’t sure if Halifax would listen to my complaint but they did and have agreed they should have defaulted me in 2015 so now they are removing it from my file all together and they also paid me a nice sum of compensation for the trouble. They only took 2 weeks to respond to my complaint so it’s well worth it.
My DMP is still running but all the other creditors had defaulted and had dropped off except this Halifax one (which is now being removed) and also another Lowell one which have never defaulted me. I’m asking why they didn’t default me as it’s showing on my credit file as arrangement to pay and will be there for 6 years until it’s paid where as if they defaulted me it would be gone now so I am challenging that one and waiting to hear back.
Thanks for your advice.
Samantha says
Hi Sara,
I’ve been trying to rebuild my life and credit score for the last year now since getting out of a mentally abusive relationship. However I have not paid 1 debt for a long time. I took out a virgin credit card in September 2015 and i defaulted September 2016. I was suffering with major anxiety at the time. The debt was passed on to Arrow Global but i dont recall ever personally receiving any correspondence from them (my partner did used to hide post from me).
It has since been sold to Opos and i got my first chase from them end of December last year (2021). I’ve read online that a debt can become statute barred after 6 years from the default. This means that 14th September this year will mark 6 years since i defaulted the loan. My questions are, if a company has contacted me but i have not paid or acknowledged the loan for 6 years does it get written off? I have read conflicting things online that say there has to have been no contact from the creditor for 6 years either – which obviously there has been now as Opos is contacting me weekly. Also – would you suggest i wait the 6 months for it to be written off and risk that Opos wont issue a CCJ in that timeframe. I’m not sure how tenacious they are but it seems if both Virgin and Arrow Global have left it well over 5 years to do this, is it likely Opos will enforce this in such a small window?
Your advice is truly appreciated and thank you for taking the time to read my issue
Sara (Debt Camel) says
if a company has contacted me but I have not paid or acknowledged the loan for 6 years does it get written off?
No.
It may at that point be statute barred – see https://debtcamel.co.uk/statute-barred-debt/ = but that is not clear (read the article for why it isn’t simple).
But the lender will not just write the loan off – they will ask you to pay and you have to say it is statute barred – they may disagree.
Opos is contacting me weekly
In that case it is pretty unlikely to get to September this year. Opos may well start a court case before then…
Look out for a Letter Before Claim/Action – see https://debtcamel.co.uk/letter-before-claim-ccj/ for what one looks like so you will recognise it. If you get this letter you must not ignore it, as the next letter will be court papers…
Before the debt is statute barred, you can respond to the Letter asking for information about the debt including asking for the CCA agreement. if they cannot produce it, they should not go to court.
Steve says
Hi Sara, quick one on defaults. Trying to remove pay day loan history from credit file. Provident (Satsuma) due to drop off June 2022, wasn’t defaulted but shows as arrangement to pay ‘A’. I have a good case to get a default backdated to replace this ‘A’ and would begin around Sep 2015 so would disappear with the 6 year rule? Would them adding the default be any detriment to my credit history? Do you know what impact pay day loans have on credit file in this state? Thanks as always
Sara (Debt Camel) says
Provident (Satsuma) due to drop off June 2022, wasn’t defaulted but shows as arrangement to pay ‘A’.
why do you think these will drop off in Jun 2022? Have these accounts been settled? If so, when?
Steve says
Apologies, knew I would miss something- yes settled 22/06/2016. Thanks
Sara (Debt Camel) says
Then they will drop off in June this year. Is this really worth the hassle of trying to change? It is very likely that provident/Satsuma will insist you have to make a claim to their Scheme (which could definitely be worth doing to try to get some money back! This has to be done by the end of February so look at this this weekend!) but that would take several months to get a decision. And even after they have agreed to do this, it can be another month or two before credit records are updated…
Steve says
Excellent, thanks so much – I thought the same RE the hassle but just wanted to double check. Thanks for the heads up on the scheme.
Steve says
Hi Sara, MMP Financial Services (My Money Partner) Went into administration 2019. Are they still able to accept affordability complaints or could this be a potential ‘Suppress’ circumstance? Opening balance £597. Start date of unsecured loan 18/12/2014, End date 01/07/2017. Currently shows as ‘A’ on my credit file. Many thanks.
Sara (Debt Camel) says
They are now in liquidation. It is now too late to make an affordability complaint.
Yes I think you can ask for the credit records to be suppressed as default should have been recorded and it therefore should have dropped off. See https://debtcamel.co.uk/correct-credit-records-lender-administration/
Andy says
Hi Sara.
A couple of queries in regard to a couple of defaults we have, if you would be so kind:
I have a default from a telecoms company that was registered the last month at the end of the contract, as this was only one payment missed should this have resulted in a default? If so what are the chances of getting this removed?
My partner has a satisfied default from a CC that shows as defaulted in 2016 with one CRA but then shows defaulted 2019 (which is around when the account was settled) with the other two. We believe that it defaulted in 2016 as we were having some financial issues at the time. Do you think we’ll be able to get the default removed from the two CRA’s as their information seems erroneous? Or failing that would it be worth pursuing to get the date changed on the default?
Many thanks.
Sara (Debt Camel) says
as this was only one payment missed should this have resulted in a default?
do you mean you made the payment just 1 month late?
Andy says
No sorry I mean it was the last payment that was missed completely. Thinking about that now, this didn’t stop me from paying it the following month, or the month after so I guess the default is valid in that respect. I cannot for the life of me remember why I didn’t just pay it, it was for £27.
Sara (Debt Camel) says
Correct – the default could be registered after you had failed to pay it for 3 months.
The most likely cause is that you cancelled your direct debit before the final bill had been paid I am afraid.
Sara (Debt Camel) says
Do you think we’ll be able to get the default removed from the two CRA’s as their information seems erroneous? Or failing that would it be worth pursuing to get the date changed on the default?
You should be able to get the default date corrected to the 2016 date if that is right. Ask the lender to do this. This isnt a reason to have the defaults removed.
Robert says
I just recently learned (via a failed credit application for a car lease) that Halifax had defaulted my student account from 2015 (which changed to a graduate account in 2018 from what I can tell). It was £1,200 in overdraft which was planned and had no interest rates.
However they have this tiered system for “graduate” accounts:
* 1st year graduates have up to £2,000 interest free overdraft
* 2nd year graduates have up to £1,500 interest free overdraft
* 3rd year graduates have up to £1,000 interest free overdraft
I was sitting just under my £1,200 limit for the entire time, then of course the interest rates from the 3rd year graduate put me just over the limit at £1,207. So it defaulted with £7 over my agreed overdraft. This is literally the worse thing that could have happened, I would have rather racked up hundreds in interest than have this stupid default.
Is there any angle I can play to get this default removed? Why default me over £7 rather than just charge me interest? I had an excellent credit score, good credit history with this bank and a mortgage with them as well. They also defaulted right at the peek of the pandemic which is a really awful thing to do all things considered but I understand they are a business in that respect.
Right now the debt has been sold to Link Finance, which is showing as “Defaulted credit” on my credit file. Can they force me to pay that?
Sara (Debt Camel) says
so you had not used this account since leaving uni? Did you inform Halifax of change of address?
Have you asked them why they did not simply start charging you interest on the 3200 you were over the limit?
Right now the debt has been sold to Link Finance, which is showing as “Defaulted credit” on my credit file. Can they force me to pay that?
Are you disputing that you owe the money? I thought you were just saying the default is wrong?
Robert says
I had not used the account outside of odd occasion (a handful of times) I have accidently contactless tapped the wrong card. Always put the money back in immediately.
Halifax are aware of my address change yeah.
> Have you asked them why they did not simply start charging you interest on the 3200 you were over the limit?
I have been trying to contact them all day, but have had no success in getting through. So I am trying to ask that now but they ain’t making it easy!
> Are you disputing that you owe the money? I thought you were just saying the default is wrong?
Apologies, I was not clear. Since the bank defaulted the debt, is the money I owe Link Finance enforceable?
The default is also correct, I did not pay the £7 debt, I am wanting to dispute the default given my clean history with the bank, the ridiculous amount to default over (they obviously sold the entire overdrafted amount of £1,207, not just the £7) and really a lack of contact. Icing on top they done it at the worse possible time for literally anyone.
I did not receive any written warning that this was going to happen, not even my online banking had warning messages, just a simple “you are this much over your overdraft” (which I never seen, since I rarely login).
Sara (Debt Camel) says
Since the bank defaulted the debt, is the money I owe Link Finance enforceable?
yes.
The default is also correct
It may not be fair. That is worth challenging them about.
Shannon says
Hi,
My credit file is completely fine aside from one default from November 2019. Prior to this date I missed 3 months of payments and wasn’t able to bring them up to date. My husband of 14 years left our home and I had to apply from benefit under the new universal credit system and didn’t have enough to put food on the table let along pay a credit card. Do you think this situation is enough to request it to be removed. I need to move and don’t want to risk applying for a mortgage with it. I have lots of documents to show he moved out, benefit letters and bank statements to show this?
Thanks
Shannon
Sara (Debt Camel) says
when did you bring the account up to date?
Shannon says
I paid it all off by March 2020
Sara (Debt Camel) says
ok so that is very quick. Who is the lender?
If they refuse – and you can only ask them to remiove the default as a goodwill gesture, they aren’t breaking any rules by saying No – then it may be best to wait until the default is three years old, so another year. At that point as it was paid off so quickly there is a good chance of a mortgage from a highstreet lender at an OK rate of interest. But go through a broker, not direct to a lender.
Mark says
Hi,
Thanks for all the help on your blog. I have a £500 default from 2020 I want to remove. It was a student overdraft account which, As i am aware, doesn’t need to be paid back during the duration of study. It can be paid off 2 years after study due to the account agreements. It has made my credit score very low and this can’t run as i believe they have breached the account agreements.
They started calling me and asking me to pay back the money into the account. Which doesn’t make sense as a student most likely isn’t working full time and doesn’t have a large disposable income. This scenario is weird as I have never heard of a student account getting closed due to an overdraft.
I would love to know your insight on this.
kind regards
Mark
Sara (Debt Camel) says
Have you made a complaint and asked why? I really can’t guess.
Mark says
I will make a complaint now. Do I contact Barclays or experian(they reply faster)
Sara (Debt Camel) says
Barclays. It is their error, not experian’s.
Vicki says
Hi,
Currently in a mortgage process, Joint application but my partner has a CCJ on file it began in 2017. We settled the £560 last year due to building credit in preparation to buying a house. Our advisor has told us to go for a 5 year fixed but its pretty expensive, I questioned wouldn’t 2 years be better as I was on the understanding that the CCJ would be off file in 2023 (6years on from 2017 when the ccj appeared on file) but shes said no it would be 6 years after settlement. Is this correct?
Sara (Debt Camel) says
She is wrong, it will go in 2023.
That is pretty worrying. Is she an IFA or does she work for a bad credit broker. How large a % deposit do you have?
How expensive is the 5 year fix being quoted?
Vicki says
Hi Sara,
As I thought, my instincts are saying two years only!
She is based within the estate agents ‘mortgage advisor’, we currently have 10% based on a 220k purchase.
5 year fixed again based on 220k is working out approx. £930 a month with Kensington due to the CCJ and 3 defaults. Hopefully within 2 years we could move away from Kensington and use a much lower interest broker… well that was until she said 5years fixed!
Thank you!
Sara (Debt Camel) says
I bet she is on a lot of commission for selling that.
Have you looked at renting for another year and then buying when the CCJ is gone?
When do the defaults go? Have the defaults been repaid?
Who were the CCJ and defaults from, the original lenders, not the debt collectors.
Jamie F says
Hello,
After a period of financial difficulty in 2016/17 I have been working through it ever since.
I have 2 debts left to deal with. Plus a CCJ that is 6 years in June/July this year.
I was recently contacted by Lantern regarding a debt of £461 from May 2017.
What is the best way to deal with this?
Credit report shows it as AR.
From my research if I pay full or partial it will still remain for 6 years.
Is there a better way to deal with it?
Thanks
Sara (Debt Camel) says
who was the original creditor?
Jamie F says
24-7 money box – short term loan.
From my recent correspondence it seems the debt was sold recently to this Lantern.
Sara (Debt Camel) says
They are now in late administration – it is too late to make a complaint to them.
You could ask lantern for a statement of the Account – that won’t show any payments for years. You can then ask them to add a default back in 2017/18 and offer a partial settlement.
Jamie F says
Thanks, I am keen to get it cleared however wanted to be sure of the right way to go about it.
The only other is already showing as default (2017) so when paid should be ok.
Appreciate your help and advice.
Sally Thorpe says
Hi :)
I just wondered if in a DMP after 6 years if a default drops off credit file and the debt is not fully repaid and I’m still making payments but lower than the original agreed ones of the initial contract, does it then start showing as partial payments and continue to show or does the whole debt just get removed?
Thanks
Sara (Debt Camel) says
When a debt is marked as defaulted, the whole debt drops off 6 years after the default date.
This happens whether you have paid it in full, settled it partially, are still making payments or you aren’t paying it. No exceptions.
This doesn’t mean you can stop paying though… see https://debtcamel.co.uk/debt-not-on-my-credit-file/
willow says
A few years ago I had my complaint partially upheld by Amigo and the full loan amount was paid back to my guarantor as she cleared it for me. I then became responsible for the balance with partial interest refunded. I was advised that I wouldn’t have to make any payments for a few years as my account was in credit from the refund (i think?) and that there would be no negative marks on my credit file. Payments would be taken from the refunded amount. This is my very confused understanding of it? I queried the balance showing on my credit report before I understood this fully and they took the credit off in a lump sum instead and I know have to start making payments. I’m paying an agreed reduced payment £60 rather than the £375 they were initially demanding. I now have lots of missed payment marks on my report. Is there anything I can do or negotiate? I have submitted a complaint for the loan that didn’t get upheld. Its obliterating the credit score I worked hard to improve. I was looking to buy a house with my partner next year
Sara (Debt Camel) says
so they agreed that the loan was not affordable for you and you only have to pay the amount you borrowed back with no interest?
How long will it take you to repay this completely at the current rate?
willow lunn says
Ah I’ve a bit silly and have just found an actual explanation for whats going on regarding my amigo account, which is a bit different to what they said on the phone in the past, hence my confusion –
”The loan balance was £0.00 however, the guarantor chose to accept a refund of their payments and interest totalling £5,014.43 which was added to the balance of the loan. You then received a balance reduction for the interest and simple interest that had accrued bringing the balance down to £3,432.04
The balance of the loan remains at £3,432.04 as the interest has been frozen. The account had not entered arrears during this time as the reduction meant the loan remained up to date until the instalment became due on 02/11/2021. The payments are still due as Amigo is entitled to collect the capital amount of the loan agreement. ”
The majority of the deposit for buying a house is a gift, so from what I’ve gathered from advice here, it would be wise to use that to clear my remaining debts and build back up the savings over the next couple of years, whilst my credit score somewhat heals. Would paying the full amount leave me in a position to ask them to remove defaulted marks as a goodwill gesture? (first one was 3 months ago) or is that not a thing? Thanks for your help so far
Sara (Debt Camel) says
So you won a complaint but ended up owing a balance as your guarantor had paid most of it.
But if you won an affordability complaint, they should have allowed you to repay this at an affordable rate without it harming your credit record.
I suggest you make a complaint to the scheme (or to the administrators if the Scheme is not approved) asking for the negative marks on your credit reord to be removed.
Dominic says
Re an old myjar default and outstanding balance. They advised:
“Regarding your credit file, please be advised that MYJAR took the decision to request Experian, TransUnion and Equifax remove all entries from credit files, meaning that your credit file would no longer show any information regarding your loan with MYJAR.”
They did this promptly, but now my complaint has been dismissed and the account sold to somebody (I see ACI, Perch and AssetCollections on comms?) This organisation are now reporting the balance, the default and missed payments once again. My profile and accessibility to credit seems to have taken a hit as a result.
Are they allowed to do this even though Myjar agreed to remove all Myjar related information from credit files?
Sara (Debt Camel) says
have you made a complaint to the administrators about affordability?
Wmily56 says
I was wondering if a good will gesture request or a pay for deletion would work in getting negative marks removed please ?
I have arrears from
– capital one
-vanquis
-Argos card
I have had a response from capital one and vanquis to say that their loan was issued responsibility but Argos have not yet replied.
At these times I had many pay day Loans and was using £550 Lloyds over draft and £100 Santander over draft.
Thank you
Sara (Debt Camel) says
No they won’t normally work – it’s against the lenders’ code to do that.
I suggest you send the rejected complaints to the Ombudsman
B says
Hi, who would I contact to dispute some information on a Wageday Advance (Curo) loan? Would this be the administrators or the CRAs? I’m not looking for a refund but the information is impacting my credit file. Any advice appreciated, thanks
Sara (Debt Camel) says
The administrators have dissolved the company and now no-one holds the information on your loans.
See https://debtcamel.co.uk/correct-credit-records-lender-administration/ which looks at what you should say to the CRAs.
Karl says
Hi, I have some entries from wageday on my credit file. I understand that it’s too late to claim anything through them as administration has completed. Is there any way to challenge/remove these entries from my credit file?
Thanks
Sara (Debt Camel) says
The administrators have dissolved the company and now no-one holds the information on your loans.
You need to ask the Credit Reference Agencies to “suppress” these entries as the loans as you can no longer get hold of the company and dispute the debts with them. See https://debtcamel.co.uk/correct-credit-records-lender-administration/
Karl says
Thanks Sara. You’re a star
Anon2022 says
Hi,
I have a problem with a default from an old joint account bringing down my credit rating.
I separated from my ex-husband in July 2017. We had a joint bank account with Natwest who refused to take my name off the account in 2017 because of the debts in the overdraft.
The debt was sold to Cabot, this is showing on my credit file as starting in February 2018. The Natwest account is showing as being closed November 2017. My credit file shows the defaults starting September 2019 and continuing every month until March 2021 when it was satisfied by my ex-husband.
I have asked Cabot to remove the defaults but they said only NatWest can do this. My Natwest account on my credit file does not show any defaults. We were officially divorced in May 2018 and my ex-husband signed the divorce papers which described him as controlling, financially unstable and building up many large debts which he refused to get help with.
Is there any way I can get this black mark removed from my name and what is the best way to go about it? Thank you
Sara (Debt Camel) says
So the default date on your credit record is after the date the debt was sold to Cabot?
Anon2022 says
Hi, Yes the default on my credit record is after the debt was sold to Cabot.
Sara (Debt Camel) says
Then Cabot can change the default back to the date they acquired the debt.
If you want the default backdated before that, you need to ask NatWest to do this – and then Cabot will have to use that debt.
In your complaint, to Cabot or to Natwest, do explain the debt was the result of economic abuse, attache the divorce papers that described him in those terms, and ask for your complaint to be considered by the vulnerable customer team. Say you don’t think it’s reasonable that your credit record should continue to be affected because of this economic abuse.
Anon2022 says
Thank you Sara. I’ve been looking everywhere for some advice on this, I appreciate your help.
Hannah says
Hi Sara
Just a couple of questions if that’s okay . I have a default for aqua sold to a debt collection agency which is due to fall off next week . Can a default ever be registered again for the same debt . I haven’t made any payments in five years , when the default falls off my credit file can they still add a ccj . This is the last default to remain on my file and so not sure what is the best way to proceed. For example when the default is removed would it be advised to send a cca or should I just leave it alone and see if I get contacted by the DC .Any help would be appreciated.
Thanks
Hannah
Sara (Debt Camel) says
Can a default ever be registered again for the same debt
No, never.
when the default falls off my credit file can they still add a ccj
yes. they can still go to court for a CCJ. nNot being on your credit record is irrelevant. What matters is whether it is statute barred (see https://debtcamel.co.uk/statute-barred-debt/ – it doesn’t sound as though yours is yet) and whether they can produce the CCA agreement.
I don’t suggest asking for the CCA agreement until you are being contacted by the DCA as this will normally reset the clock for statute barring.
Hannah says
Thanks Sara
I will wait to see if the dc agency contact me in the next year and if they do I will ask for a cca .
Hannah
Anna says
Hi Sara, if a default is very recent (within the last month) and I have now paid in full to the lender, which I was unable to do until now. Can I request the default is removed? It is with a credit union and I have received one letter from someone they assigned to collect the debt but have now paid in full direct to the credit union. It’s annoying timing as it went to default just before I was able to pay. Having looked at your site I have emailed them asking if they can remove the default, but wondered if there were any other top tips seeing as it is a recent situation that started and finished fairly quickly and if there is anymore I can do. Thank you.
Sara (Debt Camel) says
how long ago did you first miss a payment?
Anna says
I’ve been behind for 3 – 4 months, making payments when I can within that
Sara (Debt Camel) says
probably nothing else. Could you really afford to pay it in full or has this left you having to borrow more elsewhere?
Anna says
I was just able to pay it, so it’s ok – just a bit annoying I couldn’t do it more quickly, (I had two loans with them making a big monthly repayment as they were unable to merge them sadly) anyway it’s gone now. Thanks for your help.
Cherie says
Does a default come off your record after 6 years
Sara (Debt Camel) says
yes. Always.
Paid in full. Settled partially. Still being paid. Being ignored.
(Of course if it hasn’t been settled the creditor can still take you to court for a CCJ which would wreck your credit record for another 6 years, but the debt itself will have gone.)
Nick says
Hi so I have an odd one I think, I hope you can help,
I had a Barclays student account, with under £400 overdraft that I occasionally paid some off and then used but it was always in overdraft, I remember it changed to a postgrad account but then all communications stopped. I had other products from them but just forgot about it as it was tough times. 3 years later I make a few payments into it and think I can pay some of this off then get made redundant again and then I get a letter within a month from a debt recovery agency. My account had been changed to a normal current a/c then closed about 4 months before. I never had any correspondence or knew they wanted me to settle the balance in its entirety instead of 40 pounds at a time and was never given a chance to pay it off. To top it all off this was in first lockdown so redundancy was common place. I paid it off within a month with my redundancy but a default was still placed on my account. Can I get this removed? I feel it is odd I could still pay into the closed account and it was not ever told to me that it was requiring any form of immediate settlement in entirety. I at least feel I should have been told my account overdraft was no longer valid and it was in arrears.
Sara (Debt Camel) says
I think that’s odd. They had your correct address?
I suggest you write to them and ask them why they closed the account without warning – say they should have told you there was a problem with the account and given you the opportunity to rectify it. Ask for your credit record to be repaired so there are no defaults or other n3gative marks.
Nick says
Indeed I had insurance with them and have letters showing this, it seemed strange they did not at least send a letter, it is one thing to change the type of account (I appreciate I should have just paid it off) but the complete lack of contact threw me, I just thought I had time to chip away at it. I have written to them asking why and hope for a response (I also asked if they could take the default away since I paid it within a month of finding out even with the redundancy) I want a mortgage so it seems silly to have this on my credit file, luckily SO has a better history than mine so hopefully both together will be fine. Thank you for the advice shall post an update after I get a response, just sending the letter now.
Ryan says
Hi
I have had a default added by Tesco for my credit card, however I feel it’s a little unfair. I have made multiple attempts in the last 5 months to set up payment plans including a persistent debt plan which were all refused as I was above my credit limit, despite me advising I could not make a payment as large as necessary to get below this
I spoke to them 2 months ago to advise due to a house move and also covid we were worse off financially and unable to make payments for a couple of months while we catch up
I received a letter today (18/05) which was dated 11/05, this said that I had 5 days to pay in full or I would have a default added, obviously I couldn’t pay in full anyway but frustrating it took so long that even if I wanted to I would have no choice
I spoke to them on the phone and they said 28 days ago I should have received a default notice, but I didnt, they say it was sent but I never received it, so I never knew about the defautl and I didn’t know (until I received the termination letter today) that this was the case, I still thought I was on breathing room with them
Do i have a case if I have made multiple attempts to set up payment plans and also didnt receive the default letter?
Thanks
Sara (Debt Camel) says
do you mind saying what your limit is and what the current balance is?
what exactly was the persistent debt plan you tried to set up?
How long have you only been paying the minimum to this card?
Ryan says
£1500 limit – Current is around £1700, but they wanted a min payment of around £280
I got a letter saying I am in persistent debt so can set up a plan, so I called them to do this, they said I can’t as I’m over my credit limit, however people I’ve spoken to seem to suggest this isnt right?
Pretty much the whole time I’ve had it, just over 3 years
Sara (Debt Camel) says
have they increased the limit during this time?
From your other comments it doesn’t seem as though the rest of your debt situation is good. I suggest that setting up a payment arrangement to repay this at a lower affordable rate with the interest frozen might be a good idea. Talk to National Debtline in 0808 808 4000 for advice about this – they can go through the pros and cons.
When did you first miss a payment to this debt?
Ryan says
I’ve basically got ontop of everything, at the start of the year I had 3 credit cards, multiple payday loans, £1000+ overdraft with my bank, I’m now down to just one credit card (tesco), no payday loans, overdraft paid off.. The tesco debt is pretty much all that is left, and I have managed today to set up a payment plan finally with them, however my concern is with the default as they seem to be the worst thing possible that can happen to your credit rating
Sara (Debt Camel) says
Have Tesco increased your credit limit during this time?
When did you first miss a payment to this debt?
Ryan says
Never increased the limit (never requested and set it to ask me re increases, they never asked)
I have missed multiple payments throughout its lifetime, around a year into having it was the first time, then the past 5 months I havent made payments but as mentioned I did try to set up payment plans during this time and did try to tell them I wasnt able to… I have always contacted them about payment holidays etc beforehand
Sara (Debt Camel) says
If you have missed 5 months payments there is probably little you can do about this default.
Telling them you can’t make the payments will only work for a month or two. Even there they should register missed payments and arrears.
Steve says
When can a company apply a Default? Is it after so many outstanding months? Is there a minimum time that the organisation must use?
Sara (Debt Camel) says
See https://debtcamel.co.uk/debt-default-date/