This default is destroying my credit score – how do I get rid of it? This is a very common question!
It’s sometimes people ask if their finances have improved and they are trying to clean up old problems on their credit history as fast as possible. Sometimes it is 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. If there are practical steps, then you can take them yourself. 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.
The rules about when debts disappear from your credit record
There are three credit reference agencies (CRAs) in Britain – Experian, Equifax and Call Credit. They all apply the same two rules that determine when a debt is deleted from a credit file:
- a debt that doesn’t have a default 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 stays for six years from the default date. This applies whatever happens to the debt after the default – 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. I suggest you should check your records with all three CRAs so you know exactly what they say.
“I agree with the default, but six years! That’s ages!”
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.
There is nothing you can do to make the default go away sooner. You can add a Note to your credit file, which explains why the problem arose. And 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 actually improve your credit score, but it may mean that lenders, especially mortgage lenders, are more prepared to give you credit.
“The default was added very late”
The principles that govern what should be reported to the credit reference agencies 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 so it will drop off your file sooner. See my article “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 compared to what you should have paid reach 3-6 months. What you have set up is called a “debt management plan” even if it was just an informal agreement with one lender. See How does a DMP affect my credit rating for more details.
Also although you may hate that default, you will often be better off with it, rather 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 is normal. What matters is the original default date, it will drop off six years after that. The later defaults don’t make your credit rating worse because lenders’ scoring systems only look at the first default.
“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”
In this case, you need to ask the lender to delete either the whole record (if the debt never belonged to you at all, it is some form of mistaken identity) or the default (if it was your account but you were never in arrears).
“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 became aware of 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 two 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, see this article from Experian about Wonga loans.
If you think you had payday loans that were “unaffordable” (you could only repay them by borrowing again each month) ask for a refund of interest you paid and also ask for any defaults or late payments markers to be deleted from your credit file. How to ask for a payday loan refund looks at these affordability complaints in details – the template letters in that article have worked for thousands of people.
Here is a comment from a reader who made a successful complaint againt 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 starting to be recognised as a serious problem, see this report from Citizens Advice. 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 isn’t normally 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?
Can you get a mortgage with debts?
Richard Pearson says
I wrote to Vanquis in May requesting a copy of my original credit agreement and statements from 2010 when the debt was added to my DMP. I asked them to amend the default date to Dec 2010 as it was in default when it went to Stepchange. The letter was sent on 24/5. I heard nothing within the required 30 days. I am a vulnerable person as I suffer from various health conditions including mental health issues due to having major brain surgery. The debt was passed to a debt company in 2013 but it seems they were writing to an old address. However, I started to receive letters at my current address from the debt company and on contact with them, they advised that they were collecting the debt for Vanquis. 35 days after my original Vanquis request, I received a letter refusing to supply the information as there was no proof of my current address. I ceased payments in June through the DMP as per the advice on the CAB website. I wrote again in July, enclosing a letter from the debt company who are managing the debt on their behalf, to prove my address. They were requesting a copy of my bank statements which I am reluctant to send as they are online and if lost, could leave me open to id fraud or worse. After 40 days, still no response so we sent a complaint to the ICO. We had asked Vanquis to correct the default data via Noddle, but they refused. Today, I have received a letter from Vanquis again refusing to supply the information and requesting bank statements.
Sara (Debt Camel) says
You seem to be caught up in some data protection issue. I am afraid much the simplest thing will be for you to send them a bank statement to confirm your address.
Richard Pearson says
Thanks Sara, the problem being that my bank statements are sent to a friends address as we live in a holiday caravan where mail has not always reached us and been returned by the site. Our bills go to the other address too, as this is a requirement of the site owners. I have told them that we would wait until the ICO reply was received. I have taken the payments to the company managing my account from my DMP and advised them as well. Our friend calls us when we receive mail, but it is a half an hour journey each way.
Jenwri says
GDPR are huge and a company will be fined heavily for breaching them. However, they do not need to comply with your request for data Whilst there is doubt over your identity. Article 15 GDPR give you the right to access your data. DPA 2018 sect 45 (3) gives them an applicable period of mostly 30 days, but the clock doesnt begin to took until you confirm your identity Whilst there are doubts. The problems with your address mean they have done nothing wrong and they likely wont recieve any redress until you send them what they have asked for
Sara (Debt Camel) says
I think you need to phone Vanquis up. Explain your health problems and that you need to be treated as a vulnerable customer. explain the problems with your addresses and ask them how these can be resolved so you get the information that you want.
John says
This relates to a credit card i forgot to pay a small balance off. I have no issues in paying this. £40 fees were added before it was transferred to link 23/11/17. on 29/11 I contacted coop bank It transpired the bank had not updated my address when I moved three years earlier. They dispute this.
I offered to pay the outstanding balance there and then but not the fees. This was refused as the account was with link. Two complaints were fobbed off. and are with the FOS on appeal. At no time did coop register a default or even mention sending a default notice or any other documentation to my old address or otherwise.
By February I was in dialogue with Link. I offered them the same principle amount but continued to dispute the fees . Despite letters asking for payments there has been no formal demands or threats of action. Link now refuse to correspond with me hiding behind a complaint outcome letter.
My view is that they should have had to issue a default notice in these circumstances particularly as non receipt of documents is
At the heart of it.
This has the feel of the disproportionate use of a default as a means of blackmailing me to pay fees that are disputed and should, be determined by the small claims court?
My main concern now is getting this default removed.
Sara (Debt Camel) says
When did you actually fail to pay the credit card?
Link are right not to talk to you while there is a FOS case ongoing.
What are the coop disputing, that you had told them that you had moved? Why is this relevant if Yiu kept payingbthe cc after your move, were you getting digital statements as presumably paper ones wouldn’t have got to you?
John says
Hi Sara
Answers below. I had to chop the submission
1. This was summer 2017
2. Link keep chasing me to make payments but won’t listen when I explain this is still disputed. They have been told several times about what I’m willing to pay and what I’m not.
Sorry if I’m missing something but why would they take the action they have on one hand but not talk to me on the other?
3.yes – coop say I didn’t tell them I say I did. This is the second instance where they failed to update my details post 2012. When they transferred the account to link they even have them the wrong address.
4. Partially. I accessed the account digitally but didn’t get digital statements.
Thanks
Sara (Debt Camel) says
Ignore Link (unless they do something bonkers like passing your case to their lawyers and sending you a Letter before Actio/Claim – don’t ignore that buts it’s VERY unlikely), this needs to be resolved with the coop, then Link will get sorted.
How did you tell coop you had moved, phone, email, secure message? If written, do you have a copy?
So were you not aware that you weren’t receiving cc statements? How did you miss a payment? (I’m not saying you don’t have a case, just trying to clarify it!)
John says
Hi Sara
I wish it were that simple but in registering a default on my credit reference profile they have, certainly in my view, done something bonkers. This has already caused one credit rejection and I’m due to re fix my mortgage this month. Prior to this I had a perfect credit history.
I’ve had two issues with coop about not changing addresses. On both occasions done by phone. Of note my mobile number was current throughout this entire period.
CC statements weren’t something I looked for or needed. This was a seldom used card that I used as a one off for a triathlon entry fee. I split the costs over a few months and thought I’d paid it off. I hadn’t. Simply down to a mistake I made.
With no statements coming on paper I just assumed this was because I used the web in preference. I expected to receive a letter if I’d missed a payment – none arrived and so far as I was concerned They had my current address.
I was in dialogue with both them and link within a week of the debt being sold (I rang up to ask why my card was being declined).
Sara (Debt Camel) says
i Hear what you are saying but the second mole way to get this resolved is via the complaint against the coop. If that is resolved with the FOS in your favour, the default should be removed.
John says
So sit and wait?
Would you expect it to be resolved in my favour based on what I have told you? What would you advise if rejected?
Thank
Sara (Debt Camel) says
I think it looks marginal. You did forget to repay the balance. It can be tricky to prove they should have known you had moved.
John says
Thanks Sara. Most appreciated
Im hopeful on that point.
Longevity of my mobile no they say they rang – my only mobile no since 2011.
Rang the same number home number 30 times without realising it was disconnected
Didn’t ring my work number which was correct
No checks or human intervention.
Previous history
And providing my previous addresses (the ex wife) to Link; not even the one that they claim they though I was at. Have raised that as DPA though due to the possible implications of revealing financial difficulty to the ex!
Im firmly of the view this is all because of a successful PPI claim 3 months previous.
Again thank you for your advice. I will update once I get certainty
Sarah says
I had default notices sent to a previous address – can I get them removed as I didn’t actually receive them? I asked the company who sent them, they said no, I should have updated my details with them – is there anything else I can do?
Sara (Debt Camel) says
There is nothing you can do unless there is some other reason you can argue the defaults are unfair – see the article above.
Vll says
I have received letter from Sainsbury’s bank and then today had default on credit file last payment was was 2006 and now Oct 2018 have had no contact since 2009 contacted Sainsbury’s admitt error but has trashed credit rating
HELP!
Sara (Debt Camel) says
Is this an overdraft, a credit card or a loan? So you are saying there was a balance owing but it is now statute barred?
Has this been on your credit record all along, but not defaulted? Or was it defaulted then dropped off and has now come back with a new default?
Ben says
Ive been talking with cabot about an alleged debt from 2014. They say i owe the black horse about 700. As far as i can see the account was settled. I have asked cabot for the appropriate things CCA, Accounts, default notice etc. They didnt have any of this and asked for me to give them 3 months to go to the Blackhorse.
This was back in March. I’ve heard nothing until now. I keep getting texts to call them. Then today i received a letter from the blackhorse saying the owed me 270 in redress.
My issue is i have a mortgage going through. Cabot removed the default in March because i said it was wrong which i still believe is true. I am wary of contacting Cabot for them to put the default back on. Do i just settle the debt – I’m loathed to do it and ask them not to touch my CF or do I wait and see what happens. It could be automated and a coincidence they have both been in touch recently.
Thanks,
Ben
Sara (Debt Camel) says
I think the contact from Blackhorse probably is a coincidence. Several of the banks have low key (ie not well publicised) redress schemes underway at the moment eg https://debtcamel.co.uk/barclays-refund-customers-arrears/ which is an article about Braclays but if you look at the Comments at the bottom, there are several from people who have had Lloyds refunds out of the blue.
Cabot have had plenty of time since March to get this sorted. Did they just delete the default, or did they remove the whole debt from your credit record?
Ben says
Cabot removed the whole debt.
They said they would contact me on 5 weeks, which they did then they said they hadn’t been able to get the info.
They said they would contact me within 16 weeks. The initial query was 28th February and so the 16 weeks was up on 20 June 2018. So they’ve had nearly 6 months.
Sara (Debt Camel) says
You have three options:
1. You could write to Cabot and say unless they can produce the information you have asked for, you will not be paying them as you do not believe there is any money owing, and tell them to stop texting you. But with a mortgage going through this feels a bit like poking a sleeping lion?
2. You could simply ignore it as a few texts seems quite low level. If they do produce any evidence that there is a balance, you could pay it.
3. You could pay it. But I can’t see any reason to settle the debt until they produce any evidence and the longer this goes on the less likely that seems. It’s worrying having a mortgage going through but there is no guarantee you will get a better result by paying it than by ignoring it. The debt may reappear on your credit record if you do pay it on the grounds that you are no longer disputing it.
It’s a generalisation, but a firm that is convinced the debt is correct and they expect to be able to prove it doesn’t normally delete the record with the CRA.
Ben Gascoigne says
To be honest I think I will let sleeping dogs lie. Unless they provide me with something – i honestly don’t think they can.
Hopefully the mortgage goes through then I can go back to them and sort it out. I thought it was unusual to delete it from my CF, it only reaffirmed what I believe.
I’m wondering whether to send a SAR to Black Horse. I haven’t done that because I was waiting for Cabot to come back to me, i just don’t want to stir anything up.
Thanks Sara.
Richard Pearson says
I am in the same situation. I requested a copy of statements from Blackhorse and Cabot as I am being assisted to sort out all of my debts. Payments seem to be going on forever. I assume it has been defaulted and the default has now dropped off. I suspect that Black Horse have been adding charges which I wish to refer to the Ombudsman. I wrote in May but despite letters saying they are waiting for a response, Cabot has not sent anything. I have removed it from my Stepchange account, I guess the only thing I can do is wait.
Sara (Debt Camel) says
Did you write in May to Blackhorse? What have they replied?
Richard Pearson says
They have not responded. I sent it first class signed for but heard nothing for them. It was a loan for 2k taken out in 2007, I took out a DMP in June 2010. The balance to date is 1036 so they must have been adding charges.
Sara (Debt Camel) says
Send them a complaint then. Email is better than a letter if you can find an address.
Be specific – say you have asked for X and Y. Give details about your and the loan if you can – a/c or loan number, name, address now, address then, date of birth, NI number anything else that will help them identify you. Also say you think they carried on adding charges after your DMP with StepChange started and you would like these refunded. Take it to the Ombudsmna if you haven’t had a reply within 8 weeks.
Lili says
Hello
I have a defaulted credit card with Capital One. It’s defaulted from the last 2-3 weeks time but I didn’t have the chance to do anything by now because my mother had an emergency surgery and it was a very hard time.
The account has defaulted because it seems I have paid £2 less than the agreed. They sent a letter but I never received it because I moved out from the address they have on the file.
I am trying to dispute my case with the Financial Ombudsman now. But I just received an email that they don’t think it’s fair to dispute it and they think Capital One is right about the Default.
Please, advice what I can do further?
Many thanks
Sara (Debt Camel) says
Sorry I find this a bit confusing, can you answer the following questions:
When was this default added to your credit record?
Before this were you making normal payments, or did you have an arrangement to pay?
Are you saying you had paid them, but just £2 less?
Did you complain to Ca[pital One? When?
When did you complain to the Ombudsman?
Lili says
Sorry about that! It seems I wasn’t clear on many things, sorry! Here are the answers:
When was this default added to your credit record?- the last month- September around 15-20th
Before this were you making normal payments, or did you have an arrangement to pay?- I had an arrangement as I had some family health problems and I experienced some financial difficulties.
Are you saying you had paid them, but just £2 less?- yes, they asked from the amount of £30 monthly but it seems they wrote £32 in the record ( and the letter which I never received) and I paid £30 ( just £2 difference) and a few days after that I wanted to pay extra £50 but I wasnt able to. Then, I realized that my account has defaulted.
Did you complain to Capital One? When?- yes, I think it was on September 11 when I found out that my account has defaulted.
When did you complain to the Ombudsman?- I think it was a week ago.
Thank you so much, Sara!
Your help is much appreciated!
Many thanks
Lili
Lili says
Sorry about that! It seems I wasn’t clear on many things, sorry! Here are the answers:
When was this default added to your credit record?- the last month- September around 15-20th
Before this were you making normal payments, or did you have an arrangement to pay?- I had an arrangement as I had some family health problems and I experienced some financial difficulties.
Are you saying you had paid them, but just £2 less?- yes, they asked from the amount of £30 monthly but it seems they wrote £32 in the record ( and the letter which I never received) and I paid £30 ( just £2 difference) and a few days after that I wanted to pay extra £50 but I wasnt able to. Then, I realized that my account has defaulted.
Did you complain to Capital One? When?- yes, I think it was on September 11 when I found out that my account has defaulted.
When did you complain to the Ombudsman?- I think it was a week ago.
Thank you so much, Sara!
Your help is much appreciated!
Many thanks
Lili
Jodie says
I have recently tried to get a mortgage but was told that I couldn’t because of a default payment with Vanquis from the 27th September 2017 which means it will still be on my credit file for another 5 years.
Reading some of your advice above you mentioned about payday loans and “I should never have been given the loan”
I was approached in a shopping mall 2 days before Christmas by a sales rep for Vanquis credit. I originally said no to her because I had a very poor credit rating and I didn’t have a job so I didn’t think I would be eligible. She however, thought I would be so she convinced me to apply and she was right. I was accepted even though I was in debt at the time with numerous store cards and was out of work. I feel I was a very vulnerable person and was easily coerced into this with the fact I had no income and it was so close to Christmas which is a known time when people overspend. Do I have a case with this to get the default removed or would I be wasting my time and just need to wait to apply again for a mortgage in 5 years when it will be removed?
Julie says
Are you able to help?
In the last week I have been contacted daily by a collection agency for a debt of around £90 from 4 and a half years ago. I have ignored the calls and letters and have made no acknowledgement.
If I continue to ignore this for the next year and a half will this drop off my credit report and be the end or can this be followed up at any time with something that might further affect my credit score etc?
Sara (Debt Camel) says
If you continue to ignore it the debt itself will drop off in a year and a half BUT it is highly likely that before then the debt collector will have gone to court to get a CCJ, which will then wreck your credit rating for another 6 years.
Your options: ignore it and hope to fight the CCJ in court (do you have a potential defence?), pay it all, make an arrangement to pay it monthly at an affordable amount (do you have other problem debts?) or to offer them an amount in final settlement of the debt.
Julie says
Thank you. I’ll try and make a partial settlement with them! Definitely not worth any additional hassle. Is it likely to have any positive affect on my current credit score by paying it?
Sara (Debt Camel) says
No, settling it – in full or partially – will not improve your credit score. But it will prevent a CCJ which would make your score worse!
Julie says
Aww that sucks! Thanks for your assistance, I’ll get something in writing to them.
Steve says
Hi Everyone,
I have started to look at my credit file in more detail and actually take an interest. I didn’t in the past and oh boy, what an experience. I have a few defaults which I didn’t know I had, so looking to kick start some ninja work on these bad boys.
Anyway, the situation is that I had a Virgin Media account in excess of 6years. I closed the account and was going to another provider (sky). I was waiting on a final bill which turned up after a few weeks which was duly paid. On checking my report, it shows on my credit file that the last payment is noted as late by 1 month, followed by the 2nd month as default.
Has the organisation (Virgin Media) not treated me fairly by applying the default after one month? do they have to a “give time to pay”? I read on this site that the default is normally applied after 3 months or more.
Any advise would be greatly appreciated.
Excellent site too. :)
Thanks
Sara (Debt Camel) says
“I was waiting on a final bill which turned up after a few weeks which was duly paid”
what date was your previous payment to them before the last one?
what date is the default date showing on your credit record?
what date was your last payment?
what date is the debt shown as settled/satisfied on your credit record?
steve says
Hi Sara,
To be honest, I don’t know the dates exactly as it was 3 years ago. My credit file shows paid, then 1 month late, then the following month default. I normally get the bill about the 13th and I paid this normally about the 27th however I don’t know when my last payment was.
The default date was 29/07/2015
I was checking other reports, clearscore and its not defaulted and show fully paid and closed. Does this give me weight?
Sara (Debt Camel) says
The dates matter if you are trying to argue that your credit record is inaccurate. I suggest you dig out your bank statements which should show the payments.
Rach says
Hello,
Had a loan from Quickquid for £650 October 2017. Made the first payment of £93.60, couldn’t afford the other payments so set up payments of £33 to be paid four weekly. For 6months then I would need to phone up to set up another arrangement if I needed to, which I did on the 15th June, 6 payments to be paid four weekly. On the 17th June I received a Notice of Default letter which I did not understand why I’d received it as when I set up arrangements with other companies I’d only been sent a notice of arrears. I didn’t think anything of it as it said in the letter if I had made arrangements to pay the balance I can disregard the notice. The issue I have is that I recently checked my credit report and it has gone down massively because Quickquid put a default on there on the 10th Oct. Why is this? I have stuck to the arrangement, I haven’t had any notice that they were going to default and I was under the impression that as long as I stuck to the payment plan this wouldn’t happen? If I’d have known they were going to do this I would have tried to find the money from somewhere and paid it off. I should also note that I made a complaint around four months ago about Quickquid for unaffordable lending which is now with the Financial Ombudsman, but I am waiting a long time as quite a few of the loans are over 6 years old so waiting to see if all of the claims can be pursued.
Sara (Debt Camel) says
Technically QQ are right to add a default to your credit record as you are in arrears by more than 3 months.
But this almost certainly be removed when you affordability case is resolved, so it’s just a temporary problem.
Rach says
Would they actually do this though? Like I say I have had many other arrangements including with Quickquid and this is the first time this has happened. I am on an arrangement with Satsuma and whilst it says I have missed 6 payments (still keeping up with payment arrangement though) they have said as long as the payments are on time they will not put a default on the credit file so don’t know why QQ are being quite vile about it all tbh
Jenwri says
Sorry to butt in but Iv had experience of this. A default on a credit file is when your behind by the SUM of 3-6 months payments. That’s inevitable when you make a payment arrangement and so the default is legal and correct. You can’t argue that you would have found the money as they will say they accepted an arrangement as you couldn’t. They are required by law to report correct information and so not reporting your default could actually get them in trouble. When you are in financial difficulty they sometimes give you a new agreement which means you haven’t actually defaulted on the first one it’s classed as a new loan and so no default will be reported. As Sarah says if you win your affordability complaints the record of all loans will or should be removed otherwise your stuck with them. A default is sometimes better than missed and late payments anyway as the whole record will come off your file after 6 years. I hope this helps x
Sara (Debt Camel) says
Well it depends how things work out. If your complaint is upheld, then it won’t make any difference, the QQ default will be removed.
If it isn’t, and you have to pay off the QQ and Satsuma debts, then it depends how long it takes you – because the QQ default will drop off 6 years after the default date. but the Satsuma late payments will remain on your credit record for 6 years after the whole debt is settled. In the long run it is often better to get a default that disappears than late payments which stay much longer!
scott says
Can you help please. I have a problem with myjar, I had an account with them in 2012, which went to late payment markers on my file. I have asked them if I settle the amount I owe £120, will they add the correct default on my file from 2012. This is so it will drop off my credit file earlier. They say they can’t do this. They say missed payments can’t be removed from my credit file. I made a complaint of irresponsible lending that is now been progressed to the financial-ombudsman. Do I settle the amount so I can close the account now or wait for a response? What will help my credit file the most?
Sara (Debt Camel) says
SO there is no default, only late payment markers? But you haven’t paid anything to it since when?
Scott says
They said they would take a full and final settlement of £60 and mark it as settled and closed on my file.
It has loads of missed payments over years. Is it right that it won’t come off until 6 years from the date I pay?
I haven’t paid anything since 2014.
Sara (Debt Camel) says
It will drop off 6 years after the account is closed OR 6 years after the default date, whichever is sooner. If you haven’t paid anything since 2014, a default date should have been added in 2014… and if your payments were erratic before then, there may be a good case for a default being added in 2012 or 2013 which would then be disappearing very soon. Read https://debtcamel.co.uk/debt-default-date/ and go back to Myjar with that.
scott says
Thank you so much for this. I have asked them to add the correct default date to my file :)
Ali says
From Jan 2018 to April 2018 I missed 3 loan payments. I received a letter from Barclays saying my account will be defaulted on 23rd March If I don’t contact them. I called them on 23rd March and they told me it is too late and then the manager made an exception and agreed to stop the default. They said If make 4 consequent payments without missing any, they will extend my loan duration.
I paid on time in May, but in June I did not have any money and checked my account the loan payment is withdrawn and my account gone over my overdraft limit, I was surprised but happy. I thought they will just charge me interest because I gone over my overdraft limit.
Later I paid in funds so I don’t get charged for going over the limit.
2 days later when I checked my account, the loan amount paid back to my account on the same day. So I panicked and transferred the money to the loan account. Then I received a letter from Wescot debt collection agency, I talked to them then they talked to barclays and said they made a mistake. But today I been informed by Barclays that they defaulted because of the late payment in June. They told me I paid funds to my current account too late. The cut off time was 3:00 pm and I paid 4:30pm. Because of that 90 minutes, they defaulted.
But when I logged in to my online banking on the loan payment due date, I saw that the money moved from current account to loan account using more than my overdraft limit. I only paid money to my current account so don’t incur any more charges.
If they haven’t done that I would have tried my best and pay my loan on time.
Sara (Debt Camel) says
I can see why that feels unfair. But:
a) Barclays are legally correct that they can add a default after 3 months
b) it sounds to me as though you can’t afford the normal loan repayments. It may well be better to not worry about the default but get Barclays to agree that you can repay the loan at a slower rate so you don’t struggle so much.
Ali says
Thank you for the quick Reply.
Okay, but I received wrong info from them.
1st is that they showed wrong info on their bank statement. If I had not seen that the money is paid..I would have paid it on time.
Secondly, Weacot told me Barclays made a mistake.
Can I not challenge this?
I have over 40K debt to pay and paying on time all debts. working over 80hours a week. I did all that so I will have good credit file. My credit score was 995 7 months ago now 145.
If I cant get the default removed, I am considering IVA, as it is saying 6 years on file too. Do they not have the same affect?
Sara (Debt Camel) says
It sounds like you were given info which was somewere between wrong and unhelpful. That doesn’t necessarily mean that the default is wrong and should be removed.
And one default will not have reduced your credit score from 995 to 145, there must be a lot of other problems on there as well. These could be late payments, arrangements to pay,having used a lot of your credit limits, applied for a lot of new credit. See https://debtcamel.co.uk/credit-score-change/.
There is no point in having a great record if you are working 80 hours a week to pay enormous debts. Are you buying or renting? An IVA is a form of insolvency – it has the same impact on your credit record as bankruptcy.
Ali says
Are you buying or renting – I don’t have a mortgage if that’s you mean. I am renting my flat.
So there is a huge difference between IVA and default? Default is not that bad?
Sara (Debt Camel) says
A default is a LOT less bad than an IVA. I think you need some good debt advice about your situation or rather what your situation will be when you reduce your hours to. Long term sustainable level, which will probably be a lot less than 80 hours a week. You need to look at all your options, including a debt management plan, an IVA and bankruptcy. Usually if someone doesn’t have a house with equity bankruptcy is better than an IVA as more than a quarter of IVAs fail and you have to make payments for 5 years, whereas it is between 0 or 3 years with bankruptcy.
Don’t talk to an IVA firm, they make huge fees from selling them. Talk to National Debtline https://www.nationaldebtline.org/on 0808 808 4000 – they will advise on your best option but the choice is up to you.
diana says
I have got default on my credit file.
Experian 188 equafix 604. No other advisory stuff going on, bills payed on time, no late payments for the last 3 years.
So I think that it is possible. Also I have only one credit card and default
Sara (Debt Camel) says
Late payments from more than 3 years ago still harm your score.
Diana says
Hello
In 2013 I had a default registered under my name. Actually I am paying debit collection every month.
In 2013 I’ve lost my job and I had a baby. Things were hard.
I called the creditor and I explained that I am in financial difficulties. They’ve said that I won’t have to pay. As a person whose English is second language I didn’t understand what they said. All I remember is that they said not to worry.
Now I am trying to get house but I am finding very hard do to this default.
My question is : is there any way to remove it? It was purely missunderstanding. My language wasn’t good and I just thought that they are frozing my account till my situation improves
Unfortunately, this wasn’t the case.
Sara (Debt Camel) says
There probably isn’t a way. Even if they had explained it more clearly to you, you still couldn’t have afforded to make the normal payments so legally they are right to default you.
But who was the lender? And did they freeze interest and charges?
diana says
Hello
Thanks for your comment. They did absolutely nothing apart from applying default.
If they let me pay less per month do to financial difficulties I would be able to pay the debit off.
The payments were high and all I wanted from them was to set up lower payments and stop the interests.
It was NBNA credit card.
Within 7 months my situation did improved; I got myself a full time work where I am now as well.
Over the last 3 years I haven’t got missed payment or any other advisory stuff but my credit is low.
I have no debit apart from my credit card and above default which I am paying monthly.
Sho says
Hello
About 5 years ago I had a very account… the interest was too high so I took out a personal loan with a bank to pay it off. I thought that I had paid the loan off but when it came to applying for a new mortgage last week I was declined by two different banks due to a default. I created an Experian account and found out that the loan had actually defaulted in 2015. I called the bank I had the loan with and they confirmed that it had defaulted, they claimed that they wrote letters to me and tried to call, they they also sent the debt to a debt collection agency but I have had no contact at all. The debt collection agency passed the debt back to the bank (they will not tell me why). When I found out about the debt last week I paid the total off immediately (£1200) and asked for a letter confirming this had been done. This has not been sent to me either. I’m so unhappy with the service from this bank and even unhappier that their lack of contact over this loan defaulting has made my mortgage be declined.
Will this default now stay on my credit file for another 6 years, even though it defaulted 3.5 years ago?
I don’t know whether to contact the ombudsman to see if this default can be lifted due to lack of contact? Or will it just be their word against mine?
Thank you
Sara (Debt Camel) says
Have you moved during this time?
The default will drop off your record 6 years from the default date, so in 2021.
Sho says
No, we’ve been at the same address since 2013. The house next door to ours has a very similar house name and was derelict up until 2 years ago and we had cases where Mail sometimes went there, we did recover most of it but it didn’t have anything from m&s. I do not have any other debts (except my mortgages) and I am in control of my finances now. Do you think if I wrote or complained to M&S or went via the ombudsman I would be able to get this debt removed?
Thank you!
Sara (Debt Camel) says
I suggest you send M&S a request for a copy of all your personal information (this is sometimes known as a Subject Access Request) by writing to them at the address given in here. Give details of your name, address, date of birth and your old account number.
You should be sent a copy of all the letters or emails that they have sent you. Look through there and see what correspondence there is about this loan. Then you can decide what to do.
Sho says
Thank you I’ll do that tomorrow!
Paul says
Hi Sara,
Thanks for your invaluable advice on here and because of it I have recently managed to negotiate a settlement and a couple of defaults being removed from my credit report with a PDL company . They have said it will be 45-60 days before they will be removed .. is this the norm?
Sara (Debt Camel) says
I don’t think I have seen enough people commenting on timescales for this to say.
Peter says
Unusual one for you because it is annoying me. I got into financial difficulties a couple of years ago when I collapsed and was gravely ill. My biggest problem was with Amigo loans. They treated me like dirt. It eventually came down to them taking me to court. Even though it was a struggle I eventually tried to prevent CCJ by offering them 13 different payment plans, the last one was for £197 per month. They refused them all and got a CCJ against me for believe it or not £197 per month. During the court case they stated in the sworn testimony that they sent me a default letter to me by recorded delivery. It was only afterwards that I found out why they said this. Apparently they needed to default the account to take me to court. I did not see this default letter, I did not receive it, and I most definitely did not sign for it. They cannot supply me with any proof that I signed for it. However what I would like to know is that my credit file does not show my amigo account as being defaulted. Am I right that if they default an account they are legally obliged to show it on my credit file? can anybody tell me
Sara (Debt Camel) says
How long ago was this court case? Were you the guarantor for the loan?
What does the loan show as on your credit record at the moment?
Richard Pearson says
I had a default with Vanquis from 2013 although the account defaulted in 2010 when I started a Stepchange DMP. They refused to move it, so I went to the ICO. That was last September. I removed payment from my DMP while I awaited an outcome. I received an acknowlegement from them but did not hear anymore until I called them in December. They said they were contacting Vanquis. Today, I checked Noddle and the default has been completely removed and my credit score has increased significantly. They are still refusing to sent me a copy of the original credit agreement but that problem can be solved. Happy days and sincere thank to this site which was one of the useful sources of information. Never give up.
Sara (Debt Camel) says
Good news!
BUT the debt still legally exists and Vanquis could go to court for a CCJ, so you may want to add it back into your DMP.
Richard Pearson says
Already done, and I have advised Moorcroft. We are now preparing a complain to the Ombudsman as they have caused me severe hardship with the misrecording of my information.
Alice T says
I have recently paid off the remaining balance from a debt management plan. I have checked my credit file and its showing a default on one of the accounts last year. From what I believed all the debt was taken on and I was paying one amount each month. It’s showing 3 payments were missed and a default was added however I haven’t missed any payments to DFH. I’m looking at getting a mortgage (hopefully) however this is causing an issue. Surly this default from should been issued years ago when I originally missed payments before I took on the payment plan,
Can anyone offer any advice please?
Thanks
Sara (Debt Camel) says
The question is, should the original creditor have added a default? then the debt would already have dropped off. See https://debtcamel.co.uk/debt-default-date/ and ask the original creditor to add the default.
E says
Hi Sara,
There is default on my Experian credit report that I settled (paid the full amount in 2014), the default date is 08/03/2013, I also noticed that this default just dropped off from my CallCredit report today (09/02/2019), and it has never been registered on my Equifax report. Last time I checked my Experian report in January 2019 via Credit Club, it was still there. I did some research online, some one said that with CallCredit and Experian, the default will drop off on the anniversary, but with Equifax it takes a bit longer. As I am sure that my CallCredit and Equifax report are OK, I wanted to know your opinion regarding my Experian report, will it drop off on the anniversary (08/03/2019), or perhaps earlier or maybe later? Thank you so much in advance.
Sara (Debt Camel) says
I would expect defaults to drop off on the anniversary with all three credit reference agencies. But depending on what report you use to check this, it may not show for a few days or weeks… see https://debtcamel.co.uk/best-way-to-check-credit-score/ for a list of reports, only the once marked “daily” will always be totally accurate, with the others you may be looking at a snapshot that was taken a few days or weeks before.
E says
Thanks for the reply. I checked my CallCredit report via giffgaff free report yesterday, and the default was there, today I checked it again and it was gone, so I assume it updates daily, thanks again.
AnS says
Hi,
I have 2 defaults from British Gas (one for electricity and the other gas). My account was in arrears and I set up Direct Debit repayments with a debt collection company at the beginning of the year.
I had received a letter from British Gas saying that if I didn’t arrange / start making payments by the end of Jan 2019, they would put a default on the accounts. I don’t believe that the defaults should be there as I set up a payment plan before the deadline they imposed.
Is there anything I can do to remove the defaults from the credit report?
Sara (Debt Camel) says
Do you have the exact wording from the letter? Would it have been possible to repay the debts in full in January if you had to?
Ans says
I don’t have the letter to hand, but 100% it said to contact them/debt collector to discuss setting up payments, which I did.
Having spoken to my husband, he also reminded me that we were in the middle of querying something with them as there appears to be a dispute between them and our new energy suppliers.
Sara (Debt Camel) says
ok, well it is pretty normal to add a default even if there is a repayment plan in place. BUT if you had a letter saying a default would be added UNLESS you set up a payment arrangement then you have a good argument for getting it removed. Try to find that letter!
Not sure how another dispute could be relevant?
Emma says
I failed to keep up with my repayments on a satsuma account in 2016. A default was added to my credit report on 12.12.16 however I never received a default notice prior to this being added. I emailed asking for a copy of this default notice and they say they don’t keep them but can tell me it was sent on 12.12.16 – the same date as the default is added on my report. This to me seems strange as ive read that the default notice should provide 14 days to pay or come to an arrangement before a default is added. Therefore, if they sent a letter on the 12.12.16 as they claim, the default date should not be until mininum 14 days after that. Do you think I can apply to have the default removed seeing as I wasn’t given the 14 day period to settle?
Sara (Debt Camel) says
Do you know which month you first missed a payment to Satsuma in 2016?
Also was this your first loan from them or were there previous ones?
Emma says
I first missed a payment on 15.09.16. Payments were weekly.
I only had two loans with them and I’ve already been rejected for an affordability complaint (I had ones from other lenders at the time).
Sara (Debt Camel) says
Are you within the 6 month to take the case to the Ombudsman? Because winning an affordability case is your best hope of getting this default removed.
“ive read that the default notice should provide 14 days to pay or come to an arrangement before a default is added.” This is talking about a legal letter called a Default Notice which has to be served before a lender can start court action against you. It has nothing to do with adding a default to your credit record.
It sounds as though a default was added 3 months after you first missed a payments, which is correct according to the credit reporting rules I am afraid.
Emma says
Ok thanks for your help.
It was rejected by the Ombudsman frustratingly.
Sam F says
Hello guys,
I’m trying to get some information on the 3-6 month rule on defaults. A credit collection company has issued a default against me. The original company have no records of when they applied the default. Should the company I failed to pay ie the originator have records of when they registered the default. It defaulted in July 2014, and they are saying that when they sold the debt they no longer have access to the information I require. I ask this because the credit collection company have put a default against me on Jan 2015. My understanding is that the default must be registered no later then July 2014 and possibly May 2014. Can anyone help with what I should try and do now please.
Sara (Debt Camel) says
“It defaulted in July 2014” where did you get that date from?
also who is the original creditor, what sort of debt was this and has it been repaid?
Jane says
Hello,
I took out an agreement with Talk Talk in 2015 for a phone line, WiFi and TV package. After taking out the agreement, it turned out that they were unable to provide me with a TV service in my area and the WiFi connection was terrible. I made several complaints but was told there was nothing they could do about it and they were unwilling to reduce my payments. It was my first year living away from home and I really had no idea of the impact this would have, but I was at my wits end so I informed them I was cancelling my direct debits and took out a service with another provider. In July 2015 they added a default to my credit account. However, they didn’t provide me with a notice that they were doing this and I only realised today when I checked my credit score on Equifax, as it hasn’t ever shown up on Experian.
Do you think I could ask for them to remove it as part of a settlement agreement since they were unable to offer me the services I was supposed to be paying for and since they didn’t send a letter saying they were going to default? I would be willing to pay them what I owe them if they would do this.
But if I contact them, and they are not able to do this, would setting up a payment plan at this time have a further negative impact on my credit score?
Or is there anything else I can do to lessen the impact of this on my eligibility to secure a loan/mortgage?
Sara (Debt Camel) says
Creditors don’t usually engage in bargaining (“I’ll pay it if you remove the default”)
They aren’t legally obliged to tell you before adding a default to your credit record. And really you should have made a formal complaint about poor service at the time not just stopped paying. It’s worth a try – what do you have to lose? But I am not optimistic. If you have any evidence about the lack of service that may help.
re getting a mortgage – well it will be gone by 2021 from your credit record. before then a reasonable rule of thumb is that you can get a mortgage from some high street lenders if the default is more than 3 years old AND you have repaid it more than a year ago. But you must go through a mortgage broker, don’t apply direct to a bank and risk a rejection. See https://debtcamel.co.uk/mortgage-recent-defaults/
claudio arcuri says
Hi, if i clear off my debt, will i be able to open a bank account in UK before the default has dropped off?
Sara (Debt Camel) says
You should be able to open a basic bank account now, even before a default is cleared. See Basic Bank Accounts for more details.
Calvin says
Hi all,
I’m hoping for a little advice here. In oct 2018 my partner suffered a heart attack at a relatively young age. Thankfully, they have since fully recovered following a tough last few months. However, they had 2 credit cards which they missed their repayments on which now have a default added. There was no DD as they’d just pay at the end of each month. Is there anything that can be done with regards to these defaults?
Sara (Debt Camel) says
You can ask the lender to remove them as a goodwill gesture – produce medical evidence of being in hospital, point to partner’s previous spotless repayment record. But the lender doesn’t have to do this as the payments were missed. This is why it is a good idea to always set up DDs.
You can also add a Notice of Correction saying why the payments were missed, see https://debtcamel.co.uk/notice-correction-credit-record/, but it’s not clear if that makes a positive difference to future credit applications. In fact a lender may prefer not to lend to someone with a problem medical history…
jason says
I had a nasty divorce a few years back and my ex wife (wife then) swiftly told the Home Office that we were no longer together after a short separation. My right to stay in UK was based on our marriage and the Home office quickly contacted me for my “new grounds” for staying in the UK since we did not have children. I was told to leave the UK but was able to reapply with my current wife (fiancee at the time) much later.
It took a few years to get the right to stay and work in the UK approved based on my wife earning over the threshold and us having a lovely daughter.
I had paid off all debts owed by my ex wife (hers and joint) after the divorce but couldn’t pay my own debts during this period.
I have been able to get defaults removed and CCJs set aside for my current wife with skills learnt from various forums but I personally have one default left ( 3 years ago) and CCJ ( 5 years ago) left on my credit file.
I have spotted some procedural errors, difference in claimed amounts, wrong default dates e.t.c that i would like to use to get my credit file repaired but i’ll like to know if the Home Office preventing me from working while my case was been decided is grounds for removing defaults or CCJs?
Should i even mention this in my verbal or written communication with the DCAs?.
Sara (Debt Camel) says
“i’ll like to know if the Home Office preventing me from working while my case was been decided is grounds for removing defaults or CCJs?” no, sorry it isn’t. Your credit record is a record of how you repaid your debts – not whether there was a good reason you couldn’t.