“This default is destroying my credit score – how do I get rid of it?”
This is a very common question!
It’s sometimes asked when people’s finances have improved and they are trying to clean up old problems on their credit history as fast as possible. Or sometimes the default feels unfair for some reason.
I will look at various cases to see what – if anything – can be done for each of them.
But first, there is no magic trick that an “expert” can use to do this:
- don’t ever pay a firm that says they can sort this for you;
- their claims are often exaggerated, they can’t do anything that you couldn’t do yourself.
Contents
When debts drop off your credit record
How long a debt stays on your record depends on whether the record shows a default date or not.
The two rules are:
- a debt without a default date stays on your record for six years from the date when it is settled. This applies whether it was settled in full or partially;
- a debt with a default date stays for six years from that date. You may have paid it in full, made a full and final settlement, not paid anything to it, or still be making payments… none of these matter, the debt is still going to drop off after six years.
So the default date is an important piece of information for you to know.
Don’t guess! Check your records with all three CRAs so you know exactly what they say.
Having a debt drop off your record because the default was over 6 years ago is the same in practice as having the default deleted.
Situations where the default should be removed
I am not saying these will be easy, but these are the most likely cases to succeed.
“I never owed this money”
If the debt isn’t yours, you should tell the lender and ask them to remove it from your credit record. It’s not just your credit record that matters here, you don’t want to be chased for money by the creditor or be taken to court for a CCJ.
“I was never in arrears”
If you recognise the debt but you don’t think you were ever in arrears, ask the lender for a statement of account. That may show where the problem is. You can then check against your bank statements to see if you made other payments that weren’t recorded.
“The lender stopped taking the money”
Sometimes the lender stopped taking the monthly payment by direct debit or by continuous payment authority. You may have assumed the debt was repaid and only found out later a default had been added to your credit record.
Here it is the fact that the lender stopped taking the payments that matters. You may be able to get evidence from your bank that you did not cancel the DD or CPA until months later. If it was the lender’s error, you should not have a default and you can ask for this to be removed.
“It’s not fair – I only missed one payment”
In this case, no default should have been added as you were never three months in arrears!
Write to the lender, then appeal to the Financial Ombudsman if the lender refuses to correct it, see the above article about what the default date should be for details.
“A debt collector has added a later default”
They shouldn’t have done this. A debt collector can add a new record, but it should have the same default date as the original lender.
Write to the debt collector and ask them to correct it, and then appeal to the Financial Ombudsman if necessary.
“The default was added very late”
The rules say that a default should normally be when you are 3-6 months in arrears compared to what your normal payments would have been.
If a creditor has added a default later than this, it should be changed to be earlier. That means it will drop off sooner, and your credit record will be clean sooner.
See “What should the default date for a debt be?” which describes how to get your record corrected. For many people this is just as good as getting the default deleted and it can be a lot easier.
Cases where you have to win the argument to have it removed
“The loan was unaffordable”
Lenders should have checked you could afford to repay a loan before they gave you the loan. A loan is only “affordable” if you can repay it without hardship and without having to borrow more money.
If a proper check would have shown that the credit wasn’t affordable for you at the time you applied, ask for a refund of the interest you paid and for any defaults or late payment markers to be deleted from your credit file.
You can also win complaints against credit cards and catalogues if your credit limit was increased stupidly high when you were only making minimum payments. And against overdrafts when you are in the overdraft for all or almost all of the month and this has been going on for more than a year.
See Affordability refunds for how to make these complaints. There are different articles for car finance, large loans, credit cards (including catalogues and store cards) and overdrafts. There is a free template in each article that you can use.
Hundreds of thousands of these complaints have worked.
Sometimes the lender will only remove “negative information” such as defaults and missed payments. Sometimes the whole credit record will be deleted.
Here is a comment from a reader who made a successful complaint against a payday lender:
I accepted Satsuma’s offer on 2nd January and received the refund on 17th January. The negative information was removed from my credit file as well which made my credit score jump by 100 points :)
“I was never properly informed about the debt or the arrears”
You may feel the creditor didn’t explain what the debt was or how much interest would be added.
Perhaps you moved house and the creditor carried on writing to your old address even though you notified them you had moved. That is an error by the creditor.
If you paid the debt promptly as soon as you know about it, you could ask the lender to remove the default. Point out that you previously had a good history of paying their bills on time and that you don’t have other credit record problems. This can support your argument. You may have more luck going to the relevant Ombudsman if the creditor refuses.
“The debt isn’t enforceable”
This may not be easy.
Sometimes a lender will agree a debt isn’t enforceable because it is statute-barred. In this case a default should probably have been added to the debt more than 6 years ago. So you can ask for the default date to be changed so that it is earlier and then the debt will drop off your record.
When a creditor cannot produce the CCA agreement for a consumer credit debt it isn’t unenforceable in court. See Debts – why, how & when to ask for the CCA agreement for details – this does not apply to all types of debt. But here the debt still legally exists and you owe it even though you do not have to pay it. As a result, the default will not normally be deleted.
“I was in an abusive relationship”
Many women have been pressured to take out credit for a partner or had a joint account with an abusive partner. Financial abuse is now recognised as a serious problem and most banks now subscribe to the 2018 Financial Abuse Code of Practice.
If you feel the debt and the default resulted from an abusive relationship, I suggest going to your local Citizens Advice and asking for their help to see if the debt could be written off and the default removed.
When it is very unlikely a default will be removed
“The lender is adding a new default every month!”
This may make your credit report look dreadful but it is normal and it doesn’t matter:
- the later defaults don’t make your credit rating worse because lenders’ scoring systems only look at the first one;
- the debt will drop off 6 years after the first default, the later ones don’t affect this.
“The lender agreed to reduced payments but still added a default”
This can feel very unfair, but legally they can do this when the arrears reach 3-6 months.
This applies if you have payment arrangements with one or two lenders or a debt management plan through a DMP firm.
And although you may hate that default, it may be better for you than an Arrangement To Pay (AP) marker on your file! A defaulted record disappears after 6 years, an AP marker stays for 6 years after the debt is settled.
“Six years is too long!”
If you just had a temporary problem it can seem very hard for this black mark to stay on your credit file for so long.
But there is legally nothing you can do to make the default go away sooner.
You can add a Notice of Correction to your credit file to say why the problem happened.
As the default gets older, some lenders will be less worried about it. But for some creditors, eg many high street mortgage lenders, any default, even five years ago, may result in a rejection unless it has been settled for several years.
Usually the best you can do is settle the debt as soon as possible. This doesn’t improve your credit score, but more lenders may be willing to give you credit.
When the lender has gone bust and can’t be contacted
This is a special case.
If the lender will not respond to the Credit Reference Agencies, then you can ask the CRAs to “suppress” the credit records. If this happens, although the records are still there, they will not be shown to any other lenders making a credit check on you.
Read How to correct credit records if the lender has gone under in detail and see if you think it can help you.
Do NOT try to do this if the lender is still going. Or if it is the early stages of an administration – then it is better to put in a claim for unaffordable lending. If your claim is upheld, the default will be deleted, and often the administrators just delete the credit record as it is simpler.
Options when cards are maxed out
Is an unknown debt on your credit file?
Improve your credit score for a mortgage
Kumar says
Hi
I have a Default on my Credit file since Dec 2016 with Lloyds Loan.
I had difficulty paying my loan since end of Dec 2015.I have been on Payment arrangements with Lloyd loan since Dec 2015.My payment arrangement came to end in October 2016
Due to my mother poor health and in serious situation Oct 2016, i was busy dealing with this and later she passed away in December.
Lloyds claims they sent 2 letters in Nov and December and hence they put me on Default, which i have not received.In Jan 2017 it was passed to debt collection agency and they contacted me , straight away i have been paying my dues and i agreed to pay the loan aswell. Since then i have been contacting Lloyds loan , explaining the situation i was in and requested to remove the default and i was willing to pay the loan aswell, but they refused saying they have sent letters.
Please can you advise on how to take my Default??
what i can do?
Sara (Debt Camel) says
Why did you stop paying them in Oct 2016? Can you now afford to repay the whole amount?
Kumar says
I can afford to repay the whole amount.
I was in extreme circumstances, I was not following up, and I didn’t notice that I am not making payments.
Can you please let me know the reason behind your above question.
Also, I was disputing this query for default both with Lloyds and Experian.Experian said they will raise it with Lloyds.
Yesterday I have received an email from Experian saying this issue has been suppressed as its more than 28 days.
Sara (Debt Camel) says
I asked because you may have been disputing that you owed the money, which would be handled quite differently.
But it seems not. It doesn’t sound to me as though you have a good reason to have the default deleted – after being in a payment arrangement and then stopping paying, adding a default is normal.
There is no point in disputing this with experian – they just pass it to the creditor.
Danny says
Hi Sara,
I have a current complaint with Poundtpocket, so cancelled my CPA. I’ve just missed my 2nd payment and p2p have added a default notice. I feel that this is very unfair as I currently have a complaint against them for irresponsible lending, and I haven’t yet fallen 3 months into arrears. Regarding my complaint, they’ve just offered me £500 so I think I have a good case – I’ve paid around £4000 in interest on QQ and P2P loans over the past 8 years. Do you think that I’d have a chance of getting this default removed?
Thanks,
Danny
Sara (Debt Camel) says
Take it to the Ombudsman – £500 sounds like an inadequate offer. Then your award from the Ombudsman is very likely to include having the default deleted.
You could also put in a separate complaint about the default as it isn’t 3 months in arrears. But is this worth the bother?
Danny says
Thanks for the reply Sara. I’ve sent the complaint off to the ombudsman – hopefully they’ll agree that QQ/p2p offered me loans/top-up irresponsibly.
Mike P says
My son has his Experian credit report and it shows that Lowell put a default on his report in Jan 2013. The original loan was in fact defaulted in the first half of 2011 after he had made three payments but Provident did not put a default on his file before selling the debt on to Lowell. Between defaulting on the loan and Lowell buying the loan would seem to be about 20 months. Experian have confirmed that Lowell put on the default. Can Lowell just put a default date on the file or should the original loan company have put the default on before selling it to Lowell. what can we do?
Sara (Debt Camel) says
Doorstep lenders have more freedom about when to add a default than other lenders. You probably won’t get anywhere with this line of argument.
I suggest your son needs to make an arrangement to pay Lowell – has he?
Mike P says
Lowell are not chasing him for the debt as we sent a prove it letter and they cannot prove it but won’t take the default off. They put the default on in Jan 2013.
jwri says
If they can’t prove it then nor can they report it to credit reference agencies. I would send them a letter or email advising that if the unlawful default is not removed you will report them to the ICO and consider court action for their breach of the data protection act in recording incorrect negative information.
Sara (Debt Camel) says
Are they saying they can’t produce the Consumer Credit Act Agreement for the debt? If so, then it is correct they can continue to record the debt on his credit record but it is unenforceable in a court.
Mike P says
Is this what you are referring to. There are exceptions to this which may result in a default being recorded at a later stage, such as secured or long term loans e.g. mortgages, or if the product operates in a more flexible way e.g. current accounts, student loans, home credit. Would it come under home credit? as it was not under any of the other’s. So home credit would be when you take a loan out from a company and someone comes and collects it every month?. Even so waiting 18 months to put on a default seems a long time.
Mike P says
They say they are not chasing him, so obviously cannot prove the debt but the then say they believe the debt is his so won’t remove the default.
Sara (Debt Camel) says
Well if you are saying he made three payments to it before defaulting, it is going to be hard to argue that the debt isn’t his…
Mike P says
Yes but these payments were made in early 2011 approx 6 1/2 years ago. It would appear the original company didn’t put a default on his file but sold it to Lowell who put the default on in Jan 2013. It is my understanding that the original company should put a default on his file between 3 & 6 months after default, ( it says that above under “The default was added very late”). So the default at the latest should have gone on before Sept 2011 which means it should now be removed.
Sara (Debt Camel) says
As I said, doorstep lenders are allowed more flexibility about when they add defaults. See https://debtcamel.co.uk/debt-default-date/ which has the quote from the ICO.
Sara (Debt Camel) says
Yes, Provident’s doorstep lending is sometimes referred to as “home credit”. I agree 18 months is a long time. It’s up to you if you want to complaint, I am just saying it’s not a simple “3-6 months” situation.
Mike P says
Thanks for the help. It is on for another 16 months so will let it lie then.
Andy B says
I have a default/repossesion notice from Virgin Media. This came about for the reason of
I was in a rental property (12mth lease) i took out the VM acc (18mth) pretty much when i moved in. Towards the end of my lease i was informed that the landlord was selling the property. I informed VM about this as it was out of my control and i wanted to end my acc earlier due to finding a property outside of a VM area. I was told by a customer service agent “move in to a property with VM” which i found unappropiate.
Anyway they told me i had to clear the ounstanding amount or 6mths in full which i couldnt afford. So we agreed on a mthly payment until it was clear. Next thing i knew i had a letter from an debt agency saying my VM acc was behind (even tho a payment plan was in place).
This whole issue is a complete farce by them.
Is there anything i can do? Or is it a waiting game for the 6yrs?
I also read that a note can be put on my credit file explaining the circumstances, How do i go about this?
Sara (Debt Camel) says
Virgin Media are very difficult about this sort of thing. You can try complaining to creditfileamendments@virginmedia.co.uk but you may well not get anywhere.
Andy B says
Hi Sara
Thank you for your reply.
I have been told they are a difficult company.
I will try but wont hold my breath.
Could you tell me how to add a note to my credit file regarding this matter?
jwri says
Sara, is that right that they can continue to record it?. I had two lowell defaults removed as they couldnt provide the credit agreement and therefore couldn’t prove that what they were recording was correct.
Under data protection I thought all information had to be accurate and up to date?. By querying the balance and amount of default I don’t see how they can enforce this without a credit agreement?
Sara (Debt Camel) says
If they can’t prove the amount is correct you can ask for this to be corrected.
But if the only reason the debt is unenforceable is because they can’t find the CCA agreement, the debt is not irredeemably unenforceable (they may still find it in future, even though that is unlikely) and in that situation the courts have decided (McGuffick v The Royal Bank of Scotland plc [2009]) that a default can continue to be recorded.
jwri says
Thank you for reply. I guess I was lucky that I had mine removed on the basis they could not prove the amount of the default was right and so chose to remove them
luke ritchie says
Hello,
I recently went to the FO in regards to an uncle buck loan, it has now been agreed they had lent to me irresponsibly and i have been award a sum of money. I would like the data on me removed from my credit account but this doesn’t seem to have been done. Am i at liberty to go back to Uncle Buck and ask when this is going to be removed. ( I am looking to apply for a mortgage next year and don’t want a pay day loan on my history).
Any help would be appreciated .
Kind Regards
Sara (Debt Camel) says
Did the Financial ombudsman decision say that adverse data should be removed from your credit history? How long ago was the Ombudsman decision?
Luke says
The decision was at the end of last month, it stated any negative data I believe but I would like all data removed ? Am I in a position to ask them to do so ?
Sara (Debt Camel) says
No, not if the decision just said negative data. But some firms just delete the lot as it’s easier! Have UB deleted the negative stuff? If not, just remind them they “have to delete the credit record data” and you may get lucky.
Most mortgage lenders don’t care about payday loans which are over a year old if they were repaid on time. Go through a mortgage broker, not direct to a lender.
Luke says
Morning , no they haven’t deleted any data from my account ! I have sent them an email asking them politely when it’s going to be removed, I will await there outcome. Thank you for your help
Rob says
Hi,
I have a default showing from Lowell on my file, this was due to me moving house and changing phone company at the same time, unfortunately the phone company couldn’t contact me and inform me that I still owed a payment they then passed the debt on to Lowell.
Once they contacted me I payed in full.
I don’t understand why the default shows from Lowell.. when I payed them in full as soon as they contacted me
Sara (Debt Camel) says
A default shows that you missed paying a bill. It remains even after you have paid. It should now be showing as settled with a zero balance but the default remains for 6 years. What is the default date and does this look right? The earlier it is, the sooner it will go.
prabjot says
hi Sara,
someone used my card without my permission and they over drafted me 300 I spoke to the bank to look together it investigated and while it was being investigated I thought I didn’t have to pay it back (white it was being investigated it) I then found out a default had been put on my credit file even though it wasn’t me who over drafted. The police did not investigate it nor did the bank. Is there any chance I can write a letter to the bank to get it removed?
Sara (Debt Camel) says
I suggest you go to your local Citizens Advice, with any papers, letters, emails etc that are relevant and ask them to have a look and explain what your options are.
Angie says
I have received a letter today in the post (10 October) dated 5 October from a debt collection company called Lowell Financial LTD. They state that they believe I owe £172 for an unpaid debt to BT plc that they have bought. I have checked my credit rating online tonight and they’ve updated my record on 31 August 2017 applying 4 late payments (Dec 2013, July 2014, August 2014 & December 2015) and defaulted on 31 January 2015. It apparently relates to a credit agreement going back to 2007 but I cannot find any details in relation to what address such account was for as I do not recall ever holding a BT account for such a period of time and have most certainly not had an active BT account in 2013-2017. I do not believe this debt is mine and has been incorrectly applied to my record. We are going through a mortgage application so this is a worry. What can I do about this? I have seen Dispute the Debt letter templates but I don’t believe this is my debt at all. They should remove this default since they have taken more than 3-6 months since the late payment dates anyway but don’t want to admit liability for this debt and end up paying £172 which I don’t think is mine. Please advise?
Sara (Debt Camel) says
You have to dispute the debt. Just paying it would still leave the default on your credit record and likely spoil a mortgage application.
Normally I would suggest just sending a Prove It letter (https://debtcamel.co.uk/prove-it/) but because of your mortgage application And because you are sure you never had a BT account during the late payment dates quoted, I suggest you move straight to sending Lowells a complaint by email denying that the debt is yours and ask them remove it from your credit record immediately whilst they investigate this because of a mortgage application. Follow this up with phone calls. Be persistent.
Angie says
I don’t actually know which BT account this relates to as only an old account number is given but BT can no longer provide any information off the back of this number as it is classed as a closed account. When I was moving out of an old house, I became aware my ex did include my name on the BT bills without my permission but I never signed anything to open any accounts with BT, the account was never linked to my bank details as he paid them and I can prove that I did not live at the address at the time these debts became owed, this assuming that indeed this does relate the BT account my name was once included on. I had not contacted Lowells as only became aware of this situation yesterday so have had no info stating what this debt relates to, if it even is the account I am assuming. Do I still just dispute it anyway since even if I am in anyway linked to the debt (which I cannot see how I would be) according to ICO guidelines, it should have been recorded within 3-6 months of the last late payment which they only noted on my file on 31 August 2017 and it is backdated to 31 January 2015. They have been able to send this letter now 2 years later so surely they should have been able to contact me BEFORE they put anything on my credit record? What is best to do?
ritz says
HI Sarah
I had CCJ filed against me because of delay in post office during christmas period. After it was recorded against me , I filled form to be set aside . I got a date 2 months later for hearing . Unfortunately I lost the hearing and CCJ was still active against me .Now I paid the full amount mentioned on CCJ next day itself after I lost the hearing . On my credit report CCJ still shows but it is satisfied. How can I remove this my credit file.
Sara (Debt Camel) says
The original CCJ should have been deleted and a new one added – did this happen?
ritz says
No, As far as my understanding it should not be on my credit file as I paid next day itself after I lost the hearing.
Sara (Debt Camel) says
Agree, I was trying to work out what had gone wrong… It sounds as though the old CCJ was never deleted and it has been marked as satisfied, which is over 30 days so it’s still there.
I suggest you contact the court and ask why the old CCJ wasn’t removed after the set aside. Let me know what happens?
ritz says
Registry Trust said:
thank you for your email.
Having checked our records, I can confirm that we received notification from the court on the 29th September 2015 to mark the judgment as satisfied 1st April 2015, only judgments paid within one calendar month are removed.
As can be seen from your attached Certificate of Satisfaction the judgment date is 7th January 2015 and was satisfied on the 1st April 2015. The hearing date of 31st March 2015 is not the date of judgment.
If you wish to dispute the satisfied judgment you will need to take up your enquiry with the court.
I trust the above is of assistance.
Sara (Debt Camel) says
ok, Registry Trust only report what they are told by the court. And the credit reference agencies only report what they are told by Registry Trust. You have to get this corrected by the court, which is why I said “I suggest you contact the court and ask why the old CCJ wasn’t removed after the set aside.”
ritz says
Thanks Sara ! I will contact court asap.
Luke says
Hi, looking for some advise, I’ve made many mistakes with my credit file being young making awful decisions but I’m trying my hardest to get it back up, I have a recent default from BT mobile on my credit file, I paid it fine for a few months but then I had a accident and suffered and injury (dislocated Sholder) and I’m self employed and with this injury I couldn’t work obviously being self employed this had a bad impact on my income. Anyway I rang BT explained this to them they said to pay what I could and they said they would remove late Paymebt fees, this never happened and I rang many times to ask them to be removed as promised, but they only removed 1 after agreeing to remove all 3 that was on there, I asked to speak with a manger they said they’d get one too call me this all dragged on for some time anyway looked on my credit file and they have given me a default in June, the gave only maked 1 late payment then 3 Qs then straight to default can they do this and is anyway I can get this removed, the mentioned nothing about a default I was in contact with them explaining my situation and waiting for them to amend my bill as promised but then they’ve just issued a default? Do they not need to give me notice of default?
Any advise be great, thanks.
Sara (Debt Camel) says
When did you first miss a payment to the account? have you made any payments since then?
Luke says
No I’ve made no payments as they’ve sent it To a debt collection I wrote to them saying I wasn’t happy asking if I could bring the account back to them pay what was own and resume the service but they just passed me from pillow to post now I don’t even know how I could pay it as I don’t know who’s now pursuing me for the debt, just feel
Like they told me 1 thing then whipped that from under me and added the default.
Think last payment I made was April then I was waiting for them to amend the bill so I could pay it with the fees they promised removed.
Sara (Debt Camel) says
So you have written to them and not had a reply? I suggest you emil them at customer.care@bt.com and put COMPLAINT on the subject line.
Start by saying when you wrote to them and that they haven’t resolved your complaint. Say that you haven’t been paying because you have been disputing the bill. It sounds as though you have called them quite a few times, say this, include the date if you know them, and ask them to look at your call recordings. End by saying you would like the additional charges removed as that is what you were told, your debt called back from the debt collectors and your credit record amended so the default is deleted. Add that you are happy to start repaying the arrears but not until you have been sent an accurate bill.
Luke. says
I will do this Thankyou for your advise will let you know how I get on, I have the original chat transcript in my email where they first said that they would refund all charges the rest of corrispondance was done by phone or email so I should still have any emails from them. I’ll write that complaint today.
Thanks for your advise sure a great site this is for help. Thankyou.
Luke. says
Sorry I have mis read your message I wrote to them via email and they said that they couldn’t deal with complaint I needed to phone this number when you phone that number that day the is nothing they can do hence what I meant by saying it feels like I’m past from pillow to post.
H O'Driscool says
Hi
I would like some advice. My sister took out an online account in my name with out my knowledge until I received a letter fro Lowell today saying they had bought the debt of £220. My sister has said she will pay it this week & inform the online company that is wasn’t my account but hers & the same with the debt. I informed Lowell of this but they said I will still have a default in my name unless I continue with it as being fraud.
Any advice would be greatful.
Sara (Debt Camel) says
This is standard, I am afraid. The default is unlikely to be deleted unless you are prepared to report it as fraud.
Alfie says
I have a default on my credit report for November 2016, from Lowell for a shop direct account. Shop direct deleted my account from my credit records in October 2016 and according to the CRA they never applied a default. Can Lowell do this if I never recieved a default from the original creditors? I have paid off the debt now.
Sara (Debt Camel) says
When did you actually default on the debt?
Alfie says
Dates are as followed:
Default sum notices Oct & November 2015
Token payments to shop direct Dec15, Jan – march 2016
October 2016 shop direct delete account from credit file
Default issued by Lowell 2/11/16
Date of assignment according to Lowell 4/11/16 noticed me 17/11/16
Date of assignment according to shop direct 7/11/16
No notice of default or assignment given by shop direct. No letter of 14 days notice given
Sara (Debt Camel) says
Well it looks clear that a default should have been added sometime in early 2016, see https://debtcamel.co.uk/debt-default-date/. You could ask Shop Direct to add one then, and Lowell would then have to use that. But I don’t think you have a case to have the default removed. there is no legal obligation for you to be informed before a default is added.
Alfie says
Ok thanks, I have been in talks with Lowell and they emailed back today talking about a wrong account. They have also searched my credit file again today. They are making reference to a Littlewoods account that was closed and settled it the right way in 2014. The account that defaulted was a Very account.
N Mac says
Hi
My partner had a small overdraft in university from a student account and he thought he had repaid it in full. Apparently this wasn’t the case with charges and he was unaware of this until very recently when a debt collection agency managed to find him. He then paid the amount in full. The account was from 2009 and the default was only added to the account in April 2017. Surely if the account was in arrears in 2009 then a default should have been applied much sooner. This is seriously impacting our chances of getting a mortgage. My partner has a completely clean record apart from this one default.
Sara (Debt Camel) says
I think he needs to contact the bank (not the debt collector) and ask for a default to be added to the account in 2010 or 2011. This will then cause the debt to drop off his credit record. the debt collector has to copy the default date added by the original creditor. See https://debtcamel.co.uk/debt-default-date/
N Mac says
Thanks for this. He has had no luck with Natwest but we will continue to try, they are point blank refusing to help. We also discovered today from his conversation with the bank that the original amount he hadn’t repaid was £4 and that they had his telephone number the entire time (it hadn’t changed since uni). It’s shocking that this can stop us from getting a mortgage. Thanks again for your help.
Sara (Debt Camel) says
Put in a written complaint to the data controller for Nat West as the link suggests. If that doesn’t work, send the complaint to the Financial Ombudsman.
N Mac says
We will do, thank you! We definitely won’t be letting this drop until we’ve explored all avenues. Your advice has been invaluable.
Craig Helaughn says
I defaulted on a debt with my previous bank account Santander, after my SkyTV bill took my account into overdraft whilst I was serving a sentence in prison. Having no contact or any means of finding out about this debt, could I argue that I ‘Was never properly informed about the debt’. If so, how may I go about this? who can I speak to?
Thank you in advance
Sara (Debt Camel) says
If that means most if the overdraft was charges on charges, you could complain to Santander and see if they can reduce them.
Craig says
I have since paid off all the debt. However It is classified as a ‘settled’ default. I wanted to know if, due to the circumstances, I would able to do argue that I was not able to pay on time so that it can get removed from my credit file.
Thank you so much
Sara (Debt Camel) says
You can try, but it’s unlikely to work. Your credit record is meant to be an accurate reflection of what happened. There is no legal obligation to notify you about a default before one is added and even if you had been told, you probably couldn’t have done anything about it.
Doodles says
Hi there,
I’m experiencing problems with Lowell Portfolio Ltd who have recorded a default on my credit profile for £29. They claim the default is for o2 airtime, however, my o2 accounts are all settled with £0 balances.
I have never received any communication from them, they claim to have sent one letter and a few phone calls to my home phone, when I work full time. Having spoken to them on the phone they said that they would write the £29 off and remove the default. I asked for this in writing, at which point they said I would get a faster response in writing if I emailed them.
So, I emailed them and have been informed that they will not be removing the default. They can not provide proof of the apparent debt and have left me in a right mess financially.
Any advice would be greatly appreciated.
Sara (Debt Camel) says
I suggest you put in a written complaint to Lowell. Say you are not aware of ever having owed o2 any money and unless they can prove when this happened with a statement of the account, you want the debt removed from your credit records.
Katy says
Hi,
Found this article while looking for advice on whether it’s worth trying to have a CCJ set aside on the basis that the lending was irresponsible/ unaffordable.
I recently ended up with a CCJ from a catalogue company, at the time of the original lending and default (4 years ago) I was struggling terribly with debt and had multiple payday loans and maxed out credit cards.
Admittedly I’ve buried my head in the sand for far too long and just tried to ignore it; the CCJ was issued in default and I’ve been paying £70 a month every since, but having recently discovered I can make an irresponsible lending complaint and reclaim interest and charges on the payday loans (and have already had a refund from payday express and offers from other companies) I was wondering if there is any hope here?
I was thinking I would ask to have the CCJ set aside on the basis that I could then defend the case, arguing that the lending was irresponsible in the first place and offer good evidence to support that?
Any advice greatly received!
Sara (Debt Camel) says
I don’t think you will get anywhere. A set aside application for a CCJ issued in default has to be made promptly, soon after you found out about the CCJ. This is too late – you obviously knew about the CCJ because you have been making payments to it.
Josie says
Hello,
Can a company request that a default is removed (not just marked as satisfied) from your credit report with Experian, Equifax and/or Call Credit as a gesture of goodwill to their customer before the 6 year time period?
Sara (Debt Camel) says
Well yes if they want, but there would typically need to be a reason why a default is inappropriate.
As a credit reporting member, they have an obligation to accurately report.
Josie says
Is it a compulsory legal obligation even if there’s a good reason the customer & company have agreed that the default should not have been placed on the file?
Sara (Debt Camel) says
If the company is telling you they are legally not allowed to remove it even though they accept that a default should not have been added, then that is nonsense. Have they said this in writing? What sort of debt is this?
Josie says
It is a mobile phone debt and the contract was taken out in my name as my daughter was unable to get one in her own name. The company are not conceding that a default should not have been added but are sympathetic regarding the circumstances and have agreed to remove the default as a gesture of goodwill. I don’t have anything in writing from them yet. I have applied & been declined for a mortgage as this is the only negative on my credit file and I was concerned that the company’s legal obligation was going to prevent them removing the default even though they said they would.
Sara (Debt Camel) says
It sounds like you are anticipating a problem which hopefully isn’t going to happen.
Amanda says
I’m am so ashamed to say when my daughter was away at uni o opened catalogues in her name to get things she needed for uni. I couldn’t get credit and when she was on the phone crying about how cold it was there, how her boots broke etc, as a mum I was desperate to help her. I opened up a catalogue in her name, ordered some things for her and paid on time. The intention was to pay it off and close the account. But my husband had a stroke and I fell behind in payments and now she has a ccj on her file. I have since satisfied the full amount and I’ve written to the solicitors who dealt with the ccj’s taking full responsibility. Guilt is eating at me and even though my daughter is upset, she understands I didn’t do it maliciously. I told her to contact credit score and tell them the situation and I’ll take whatever consequences.
I’m feeling so awful because I did this to her, even though I didn’t do it to order things for myself. What is likely to happen to me? I’m sitting here waiting for the police to turn up at my door. She didn’t wantvt o report her but I told her she had to, and now she had I’m just waiting.
Please help, I’m in such a mess
Sara (Debt Camel) says
I’m so sorry that you are in such a difficult situation. It’s highly unlikely that the police will turn up, they don’t usually in this sort of case.
Amanda says
That’s a little measure of relief. What will happen? I’ve taken the blame and paid off the debt. Do I need to sign a form admitting it? She’s goung to citizens advice on Monday and I’ve written to the company to explain the situation. It’s such an awful mess, and I wish I hadn’t done it now
Sara (Debt Camel) says
She is doing the right thing going to Citizens Advice – I suggest you wait and see what they say.
Jen76 says
I did a similar thing with my ex partner. I opened a catalogue account in his name as he got a better interest rate than me. He was always really sensible with money and had a perfect credit score until I fell massively behind before we eventually split up. I admitted to the catalogue company what I had done but they said they couldn’t do anything and sold the debt to lowell. They shouldn’t have done this while the debt was in dispute and if you read section 7 of the FCA handbook it’s down to the lender to prove they are pursuing the correct customer. It could have been sorted if u had owned up before she got a ccj but as it’s already been awarded she will have to apply to the court to have it set aside. As goodwill the lender may remove it but it’s unlikely if they have already been to court. Don’t worry about the police knocking. You made amends and they won’t pursue it. She will likely have needed a crime number so would have had to report you to action fraud
C Halford says
I had a credit card default, they sold the debt to a debt collection agency. That was 8 years ago. The debt is still showing on my credit report, albeit under the ‘closed’ accounts section. Should it not have fallen off, and can I get it removed?
Sara (Debt Camel) says
It sounds as though there is no default date on the credit record – read https://debtcamel.co.uk/debt-default-date/ and ask for one to be added.
denise says
hi i would really appreciate some advice
after checking my credit report for the first time their is a default
on my account from welsh water for £2600 i called them to query it
and the said it for a previous address i no longer live at i moved out
of that address in 2015 the default was added 2016 to my credit
report. they said my bills for that address are still getting sent
their so I’m liable from 2014-2018 as i didn’t close my account,
i obviously questioned this as i felt is was unfair to be responsible
for a water bill at a address i do not live at, they said to send
proof i moved but its unlikely that anything will come of it as i
didn’t call them, well my husband thinks he did when he set up the
water bill for our current address but I’m not sure he did it
correctly. he didn’t add my name on the current water bill either.
the previous landlord is willing to write a letter to confirm i didn’t
live at the address but welsh water are quiet keen i pay the full
outstanding arrears for it asap.
Sara (Debt Camel) says
You need to send Welsh Water proof of when you moved out and they should redo a more accurate bill. But it sounds as though there will be a debt remaining for 2014-5? So it’s unlikely the default will be removed.
Stephen Streater says
My ex wife took out a mobile phone contract after we had separated and logged into my account which was stored on the old family computer.
She set up a direct debit from her bank account so I assume she logged in to my account due to laziness in setting up her own.
I knew nothing about this until I was refused credit last year, I subscribed to Equifax to find out why and found out that there were two defaulted accounts on my file dating back 12 months, one was the phone contract and the other for the phone loan. I contacted my wife who explained that she must have cancelled her direct debit a month early not allowing for her 30 day notice and admitting she had taken out the contract.
I contacted o2 and informed then of everything, after hassling them on a weekly basis for months as they simply didn’t want to know, they finally agreed that I shouldn’t have to pay the debt and settled the account but refused to delete the defaults from my credit file.
This has ruined my credit and I don’t know what to do
Sara (Debt Camel) says
Put in a complaint in writing to O2,saying they have agreed you don’t have to pay the money and it is only fair that the debt should be removed from your credit record. If they reject your complaint, they should tell you of your right to take it to an Ombudsman.
Stephen Streater says
I already did all of that, the ombudsman initially ruled in my favour but the email they sent went into my junk folder which I didn’t see for several weeks so I wasn’t able to confirm my acceptance of their ruling by the deadline they gave so they closed the case and won’t re-open.
I’ve tried explaining but they will not re-open a case once it’s closed
Sara (Debt Camel) says
oh dear…
Well in theory you could sue them, but I would suggest getting a solicitor before you consider this which could be expensive.
You could try emailing the O2 chief executive: mark.evans@telefonica.com I am not a big fan of people doing this unless there is something VERY unusual about their case – but in your case you do have the ombudsman decision in favour. Your email needs to start with saying you have the Ombudsman’s decision – attache a copy, and explain why it wasn’t accepted in time. Ask O2 to implement the Ombudsman’s decision as a goodwill gesture.
Stephen Streater says
Thanks for replying…
I did email Mark Evans as I was getting nowhere with Custoner services and he did eventually reply. It was him that agreed it was wrong and that he would write off the amount and mark as settled but he refused to remove the default as he said it was my responsibility to make sure no one had access to my account.
Not a particularly empathetic response considering my personal circumstances. My divorce was not particularly acrimonious so I had no reason to believe anything like this would happen. I could have prosecuted my ex wife of course but with 4 children between us it didn’t seem the right Jon to do as it would have resulted in a battle between parents that didn’t need to happen.
Sara (Debt Camel) says
Well email him again as you now have the Ombudsman’s decision.
Stephen Streater says
The ombudsmen decision in my favour became void as I wasn’t able to accept the offer in time due to the email going into my junk.
I’m afraid they are right up there with o2 in terms of being absolutely rigid in their decision.
When I found the email I tried to contact them to ask them to take into consideration I hadn’t received the email but they they have simply closed the case after not hearing from and won’t open a new one related to the same issue.
Sara (Debt Camel) says
Yes, I understood that. My point is that you should email the O2 CEO again saying that the Ombudsman decided in your favour but you never got this etc etc and would O2 remove the default as a goodwill guest use.
Lee says
Hi, please help!
I have several accounts on my Experian credit file that were included in my bankruptcy in June 2013. They have the default dates as June 2013 and settled/partially settled from June 2014 which are all correct.
However, those accounts have continued to have defaulting balances even after the discharge and the correct settled date being applied.
So my settled accounts are still defaulting today nearly 4 years after discharge.
Halifax who are one of the creditors have refused to remove the defaulting balances between the partially settled date (June 14) and January this year. They say it is our fault for not telling them about the discharge.
This seems really unfair as We were turned down for a mortgage because the lenders thought we had defaulting accounts. This was only pointed out to us by a second mortgage broker who spotted the problem after the first broker didn’t.
What can we do?
Sara (Debt Camel) says
The debts in your bankruptcy should have a zero balance, see https://debtcamel.co.uk/credit-file-after-bankruptcy/. Halifax should now correct this.
But the chances of getting a mortgage before the bankruptcy has disappeared in June 2019 are about zero.
Suzy says
Hi Sara & All
I have a default old credit card which i offered them a Full & Final settlement which was accepted and paid, the default was removed by the lender as goodwill, They have advised me to ask the debt collection agency to remove they default as goodwill as well, (PRA )
What do you think my chances are ? the default is dated July 2015 with a Zero balance
Do you think its worth a go ?
Anyone had any success in this before ?
Jenwri76 says
The credit reference agencies act on information given by the lender, they dont default the account themselves. If the lender has agreed to remove it then the lender needs to tell the cra and it will be removed. If you have correspondence from the lender stating they will remove it, send that to the cra and raise a dispute
Bex says
Hi,
My husband has a default on his account from Lowell that began in August 2016. He set up a payment plan with them and he paid the debt off by March 2017 without having ever missed a payment. This debt was sold to Lowell by T-mobile as he owed them money dating back to 2014. My question is should the default not have been registered in 2014 when the money dispute started?
My other question is, will this affect our chances of being accepted for a mortgage, even if the debt has been satisfied? I have a very good credit rating, however this default has severely affected my husbands. This is he only debt he has ever had, apart from a small credit card that he pays in full every month.
Sara (Debt Camel) says
See https://debtcamel.co.uk/debt-default-date/. Did the debt to T mobile ever show on his record?
Every mortgage lender has their own rules. But a rough rule of thumb is that some high street mortgage lenders don’t mind a default which is both over 3 years old and has been repaid for more than a year. So getting the default date put back to 2014 would be a big help.
Tom says
Hi there,
Thank you very much for existing deptcamel blog. I have a complicated situation. I checked Experian, and I have one default from Welsh Water. The situation is the following:
I didn’t pay Welsh Water for 3 months in raw, May June July and I paid August 50/250 pounds. However, I received a letter that my account is gonna defaulted within 14 days if I wouldn’t call them but for the month of September, I was abroad. When I came back end of October I called and paid another 50 pounds and set up a direct debit of 100 pounds per month. However, in Experian, my account appears defaulted for the month of November, December, January, February.
I called WW earlier today to explain the situation but I cannot understand 3 things:
1. As I paid in August can they default my account a month later?
2. Why did they open a second account (different from the defaulted one) in Experian that shows up as unpaid every month?
3. What can I do? I am desperate, as I had a new permanent job in October and have started saving money for the mortgage and I don’t know what to do.
Thanking you in advance for your replies,
BW,
Tom
Sara (Debt Camel) says
How much were your monthly payments meant to be?
Tom says
Sarah thank you very much!
We hadn’t agreed in a specific amount. The returned direct debits previous months were around 50 pounds.
Is there any possibility to persuade somebody in Welsh Water to help me removing the default as gesture of goodwill? Is there anything I could do to query the default?
Suzy says
Hi Sara & All
Anyone had to use ICO to get a default date back dated after lender & FOS refused ? default added too late by 3 years !
Not good as im trying to get a mortgage at a decent interest rate
Your thoughts please
Sara (Debt Camel) says
Is this the Barclaycard / PRA default? From what you said before, I think you have problems with the mortgage affordability rules, I’m not sure this default is the biggest issue for you.
Suzy says
Hi Sara
Yes its the Barclays default , can ICO Back date defaults as you say yes does appear to be affordability and nothing i can do about that, except borrow what they allow me and downsize according with a much smaller mortgage all debt repaid , got to be realistic and get out of this huge affordable mortgage
Thanks for your quick reply and sound advice
michael says
Hi – thank you in advance for your advice. I have 5 credit cards and 2 have defaulted and other other 3 are on 5-6 months missed payments. Am I just better off letting the other 3 go to a default as my credit file / score is messed up anyway? Or if I agreed a payment plan before I got the default on the other 3 is it really true that if it took me e.g 5 years to pay off and settle the debts then anyone looking at my file in e.g 7 years will see the payment plan for the 3 cards but not the payment plan for the 2 cards that defaulted? I rang up a well known agency and the person was very nice but I was advised that even with a default any creditors would still see my payment plan even after 6 years.
Sara (Debt Camel) says
I am afraid that in these situations it usually is better to get defaults. A payment arrangement is really only better if it is either temporary – until you find a new job say if you have been made redundant – or you can clear the debt in a few years. With a long-term term debt problem, defaults will give you a clear credit record sooner.
Sarah Geddes says
Can you please give me some advice.
I had a bank account that I only used occasionally. Out of it was a direct debit however I cancelled my contract in August last year. The company continued to take payments which caused me to have an unauthorised overdraft. As I don’t regularly use the account and I had cancelled this contract I was not aware that this overdraft had occurred. My credit rating has now been affected and I had been planning to apply for an mortgage. I’ve spoken to the bank and they say they are unable to make changes to credit ratings.
Is there anything I can do to sort this?
Sara (Debt Camel) says
Did you cancel the DD when you cancelled the contract?
Jen76 says
The bank have reported the position correctly as you were in an unauthorised overdraft. If the payments that caused it were incorrect though then you need to ask the company to rectify the mistake as well as notifying your bank of the error. Assuming they refunded back to your bank account the bank can then confirm the mistake and they CAN amend your credit file accordingly x
Curious AL says
Just after some advice as Lloyds bank put a default on my credit record in November 2015 however I was sentenced to prison in October 2015, 2 weeks before the default, I settled all my debts when I was released but wondering if there is any grounds for getting this default removed.
Sara (Debt Camel) says
I don’t think so.
Chris M says
Whilst I was the Director of my own ltd company (just myself on the books) I had a company credit card, linked to a business account, which I used for my travelling and sbsistence costs but when a client defaulted on a 68k payment owed it caused my company to go under and I had to cease trading. There was a 5k balance outstanding which was never repaid as the account was closed by the bank once the disolution of my company happened (I was never declared bankrupt). This 5k appears on my credit file as a personal debt in the ‘accounts closed’ section, is this correct? I thought business debts were seperate to personal debt?
Sara (Debt Camel) says
It may depend on the paperwork you signed, eg if you gave the bank a personal guarantee. I suggest you talk to Business Debtline about this problem, see https://www.businessdebtline.org/
LUKE RITCHIE says
Hello,
I was wondering if you could help me, i had a payday loan with Payday UK back in 2011 , i went into an IVA some time after. I then settled the account direct with Payday uk in 2013. This was the last time my credit report was updated. I want to try and get this removed, just wondered if the account should have defaulted when i entered into an IVA agreement and therefore would be liable to be removed from my account earlier than 2019 as per 6 years after the settled date ?
Yes the Loan was included in the IVA, I believe it started around Novemeber 2011.
Kind Regards,
Sara (Debt Camel) says
In that case the default date for the loan should be November 2011 or before. See https://debtcamel.co.uk/repair-credit-record-iva/ for how to get this corrected.
LUKE RITCHIE says
Sara,
I actually wasn’t in an IVA i was just entered into a debt management plan. Would this still be considered to be defaulted if it was being handled by somebody else ?
Kind Regards.
Sara (Debt Camel) says
ah that is totally different. Read https://debtcamel.co.uk/dmp-credit-rating/
Cheryl Griffiths says
I had a ccj from my water company in 2013,I paid this off in full in the same year.The ccj is showing as active not settled on my credit reports.I have contacted the water company to get this altered but they say they haven’t got records that far back.The credit report companies say they can’t change the status without prove from the creditor so what can I do
My mortgage is up for review next year and I need to sort this out.
Sara (Debt Camel) says
Do you have a bank statement to show it was paid?
Jen76 says
The ccj will drop off your credit file in 2019 anyway (6 years) so depending on the month it was reported it may be irrelevant to your mortgage application anyway. Meanwhile raise a dispute with the credit reference agency which for a time they record on your file that the record is disputed. Advise them that the debt was repaid and provide evidence if you can. The company have a duty to record accurate and up to date data and they are not. If they cannot provide details of the debt they shouldn’t be recording it at all. Contact the ICO if they still state they cannot correct their error
Fedupstudent. says
Welsh water have put a default on my credit file in 2015.
student finance took longer than normal to pay me. I contacted welsh water and made them aware that I would be getting my payment in october, finally got end of december and thee ccountt was brought up to date. I kept them up to date throughout.
WW said they sent me a letter at the time warning of the default. I lived in a flat and 100% did not recieve this letter.
My argument is that I did not recieve this letter and if they had forwarned me any of the 3 times I had contacted them I would have gotten my parents to have paid it for me. I would not have allowed it to go to default.
What is worse is at the time I was going theough a bad time with my health and with Hospital appointments. The same problem which I now still have but I made sure I stayed in contact with them and informed them.
I am actually studying to be an accountant and this default could potentially make getting a job as an accountant a problem.
I have heard student finance can sometimes be a nightmare. Would this mean that all students who have a delay in getting their student finance be getting a default? Even when eelsh water didnt give them a warning?
Any advice would be appreciated
Sara (Debt Camel) says
What was the date of the Water Bill? what is the date of the default?
There is no legal obligation for a creditor to tell you before adding a default.
HANNAH says
Hi Sara,
The default dated 14/12/2015.
I have since looked into the matter more as adamant I recieved no correspondance or phone call from them.
Was advised they tried to contact me but the number provided was a solicitors number. They advised i was not know to them.
Turns out a mistake was made on my account in july and all correspondants for me went to a solicitors in the name of the exors of my grandmorthers name. I am now arguing this as well as this is a breach of my DPA the letter included my address, name, account number and payment history.
Any advice would be appreciated.
HANNAH says
The advice I’m Hoping for is in regards to having the default removed. Prior to the correspondance going to the solicitors office I also had never missed a payment to them.
They hadn’t sent me an upto date bill, the notification of increase in direct debit or any notifcation of anythin debt being owed. This was due to the fact they’d sent it to the exors of my grandmother who do not know mr or had never had any corrspondance with me.
Sara (Debt Camel) says
The date of the Water Bill was? The mistake “in July”, which year? How would the Water Co have the solicitors details, did your grandmother own the property?
HANNAH says
I didn’t actually recieve the water bill as it went to the solicitors and the bill which was sent was dated from july. I paid by monthly direct debit and when I had spoken to them this was in september when I knew student finamce was delayed so the dd wouldnt go through.
No my grandmothers didn’t own the property which the water bill is for. I have no idea how they got these details. They were details I wouldn’t have even known.
This property was also the 2nd address I had after living with my grandmother. She passed away in almost 6 years ago.
Sara (Debt Camel) says
OK so those are all good points to make in your complaint to the water company. If putting in a formal complaint doesn’t get thsi resolved, I suggest you try emailing the CEO about the issue as it sounds rather odd.
HANNAH says
Good news! I successfully had it removed! Its took numerous phone call and me finding the proof. But it has now been removed :)
Sara (Debt Camel) says
well done!
levi says
o2 have put a default on my credit file in 2012 – i never knew i had this, until i applied for a mortgage, my mortgage adviser made me aware of this. I never received any letters from o2 or debt collector in regards to the debt – once I found out about this i called o2 to get this resolved, only to be told because i cant pass the security questions they cant tell me anything – so i get in touch with the o2 credit file agency and explain the situation, that i am trying to get a mortgage but cant as i have this default on my account, and was advised to contact them in regards to getting it taken off my credit file – his response was he cant amend my credit file unless i pay the full balance – so without any questions i just went and paid the balance I had to go to an o2 store to prove who i was and settle the balance – now i have settled the balance my credit file still has the default. When contacting the person at o2 credit file he told me not once has he told me he would take it of.
But i have proof of emails where i have said to contact them to take it off, and his response was he cant do anything until i pay the balance?
Now to me that’s abit mis leading?
Sara (Debt Camel) says
I agree that is misleading – you could put in a formal complaint to o2 https://www.o2.co.uk/how-to-complain.
The good news is that the default will disappear after 6 years, so sometime in 2018.
Darren Abercrombie says
Hi
I justbtried to get a mortgage and was refused because there was a default on my credit score. I wasn’t aware of it and had to call the company who added the default. I turns out it wasn’t for missed payments it was for a van I had on hire contract for 24 months. After the 24 months I tried to buy the car from the garage but they were taking forever to arrange it. In the meantime the finance company put the van to a collections company without telling me. The collections company contacted me (I still thought it was the dealer who I got the van from) and I told them I was trying to purchase the van. I then received a call from the collections company telling me it’s illegal to buy a hire contract van so I had to return it. Which I did. The default was put on because the van wasn’t returned in time. At no point was I given any warning of default and until I called the company on my credit score I didn’t know it was through a collections agency. I also had to pay the shortfall from an auction for the van that I wasn’t aware off which o did as soon as this arose.
Is there anything i can do?
Sara (Debt Camel) says
It certainly sounds worth a complaint to the finance company – not the garage or the later debt collector. Any evidence that you were trying to by the van would be support your case eg emails to and from the garage. This sort of case has a consumer complaint angle – you may find it helpful to go to your local Citizens Advice and ask for their help.
Robert says
I entered into a debt plan (Debt Arrangement Scheme Scotland) and a creditor entered a default against my account from the date of the court agreement. After 6 years the default dropped off my credit record. The DAS still has 15 months to run, and all payments continue to be made as per the agreement.
The creditor has now entered an open credit card against my name showing the outstanding balance still to be paid as per the DAS arrangement. There is a balance to be paid but I don’t have credit facilities with them and haven’t had for nearly 7 years now. Surely they cannot do this after entering a default?
Sara (Debt Camel) says
I’m not a Sottish expert but that sounds wrong to me! I suggest you talk to the adviser that set up your DAS to confirm this, then consider putting in a complaint to the creditor.
Alan McIntosh says
Hi Robert
I am a Senior Adviser in a Scottish Local Authority and Sara has asked if I can answer you question.
Essentially, this is a problem with DAS. The default notice has been removed after 6 years, but as you have not completed your DAS, you still have an outstanding balance on your account, which is showing as in arrears, as you have not maintained the contractual payments. This will stay on your credit rating until your DAS is completely paid off. Your payment history can then still show on your credit rating after then also.
This effectively mean the DAS can damage your credit rating in some circumstances more than even bankruptcy can, as your liability for your debt is normally discharged after 1 year and any defaults etc are removed after 6 years. However, with DAS as you have to pay all the debt off, the arrears continue to show until they are cleared.
The Scottish Government are unhappy about this, but cannot legislate on this as it is an area reserved to the UK Parliament.
We can only hope that as England and Wales introduce a similar scheme there, the UK Government may decide to legislate in this area.
Regards
Alan
Robert says
Thanks for explaining this Alan.
How does that relate to this statement from the Experian website?
“A default date will be recorded on the account and it will be kept on your credit report for six years from the default date. After this time it is removed from your report automatically even if the full amount isn’t paid.”
Sara (Debt Camel) says
I’m going to be looking into this further… I will come back when I have found out more.
Robert says
This debt has now been removed from my report. Through Clearscore I raised a complaint with Equifax disputing the debt being added again after the 6 years had passed. Initially they resisted my complaint so I gave them 7 days to remove the debt from my record or I would escalate to the Financial Ombudsman Service.
I explained politely that the default had been on my record for 6 years and as per their own guidance it is then removed, whether the debt had been repaid or not. I explained that the approach of the Creditor to deactivate a debt beyond 6 years goes against the spirit of the legislation and effectively punished a debtor twice for the same default. I informed them that should the Ombudsman rule in my favour I would engage a lawyer to seek damages in my behalf from both them and the creditor as I had given them a fair opportunity to take action.
They reviewed and stated that they would share my complaint with the creditor and ask them to remove the entry from my record. Within 24 hours they agreed and apologised for their actions.
Simon says
Hi Sara
I have 5 defaults againt my name from 2013 due to a period of unemployment. My wife & I are now trying to buy our first home and are going through an IFA. They’ve recommended we apply for a mortgage with Nationwide and I have highlighted my defaults to them. Nationwide’s informal response was that if my accounts have been well managed for the past 2/3 years, then they don’t anticipate the defaults being an issue. I would consider my accounts well managed, I took out a small credit card and paid of the full balance every month to build my credit score & all my bills are paid on time, but the payments on the various debts that had previously defaulted were finally finished in January 2017. In my credit report the payments against these accounts show in red which I believe is because of the defaults against these accounts.
Do you think the continual record of payments against the defaulted accounts will be viewed negatively & count against me? I’m not sure if I’m kidding myself in hoping to be approved for the mortgage, even if the LTV is 75%,
Sara (Debt Camel) says
First an IFA is a slightly odd choice – it’s normally better to talk to a mortgage broker.
A rough rule of thumb is that some high street lenders don’t mind defaults if they are all over 3 years olf (tick) and all paid off more than a year ago (tick). So I hope you will be fine. A 25% deposit also helps!
Let us know how you get on.
ritz says
HI
I have a default from three dates back in 2012. The first miss payment date shown is feb 2012 on credit report. This month I got letter from Debt collection agency for this debt. I want to know If the debt is statue barred from 1st miss payment or from date of default
Sara (Debt Camel) says
See https://debtcamel.co.uk/statute-barred-debt/
ritz says
So I should hangon for 3 more months until date of default. If I write to them debt is statue barred, it might reset the clock.
Izzy says
I have been in arrears with my Santander mortgage account for several years. I am a single parent who just finished a degree but experienced financial difficulty early on in the degree. After solicitors became involved it went to court and an agreement was put in place for a £36 payment towards the arrears each month. I have made the regular mortgage and arrears payments every month since, on time. In the final few months of the degree Santander refused to take the agreed arrears payments (which I had increased to £55) and demanded a new agreement which would pay the arrears in 12 months. I set up a standing order and made the extra payments regardless. I got the uni financial advisor involved when they went to the solicitors. After seriously affecting my performance at the end of the degree, thaey accepted fault and compensated me £100. However when I was applying for a job I checked my credit file for the 1st time and saw they had marked down 6 months late payments during that time. After contacting them, and several weeks later, they compensated with another cheque and corrected the file. I have now just seen that AGAIN (1 month after the last complaint) they have marked a 6 month late payment on my February payment. Please note I have not missed or been late on 1 payment since 2014. I am getting extremely annoyed at having to continually check they are recording info correctly on my file. How do I raise this complaint beyond Santander?
Sara (Debt Camel) says
Deep sigh. How very annoying for you.
I am afraid you do need to go back to Santander first. Complain in writing, using their secure message system If you have a reference or number for the previous complaint, quote that. Ask for more compensation – third time round I would be thinking £500… If they don’t sort this in 8 weeks, send the complaint to the Financial Ombudsman, see https://help.financial-ombudsman.org.uk/help
RWH says
Hi there,
I’ve recently managed to get a default lifted off my credit report by Lowell (debt collector), they have confirmed they will remove all information currently on my report that is being reported by them and this will be updated within 50 days max. This default wasn’t my own and was actually due to familiar fraud. Another (closed) account is on my report, again familiar fraud and this shows 3 months worth of missed payments x3. So I think in total the account was open for about 12 months and had 3 months worth of missed payments 3 separate times. 1st question is when Lowell remove the default, will my score increase? Secondly, as Lowell bought the debt, will the original creditor then show on my credit report instead of Lowell?
Thank you so much
Sara (Debt Camel) says
“when Lowell remove the default, will my score increase?” probably, but how much by will depend on what else is on your credit record.
“as Lowell bought the debt, will the original creditor then show on my credit report instead of Lowell?” only if the original creditor is already showing – if a debt is sold, there are usually two entries on your credit record. Which credit record are you looking at?
Ade says
Hi I was on a DMP between 2012 & 2017, all my creditors were included and they all apart from Barclaycard registered defaults within 3-9 months. Barclaycard defaulted the account in August 2016 when they sold the debt to Link Financial. I had maintained the agreed reduced payments. I was told that Barclaycard themselves would not maintain reduced payments for any longer and would transfer the debt, in order to do that they would have to register a default. This default in 2016 is significantly working against me & I have recently been refused to remortgage. The broker has stated that the underwriters feel that the 2016 default looks like I have had two seperate periods of financial issues. They are not bothered by the defaults registered in 2012 and 2013. I have written to Barclaycard and asked them to look at the default date. I used information from your website around fairness and ICO guidelines. They refuse to change it. It will impact on my credit file for far longer. Do you think I have a case to take this further?
Sara (Debt Camel) says
Yes – I think you should take your case to the Finanical Ombudsman. The letter/email from the broker shows exactly why this is treating you unfairly.
Ade says
Just wanted to say thanks for the advice. I made a complaint to the ombudsman who in turn passed it Barclaycard. This was clearly the push they needed as they have now deleted the default from my credit file and given me £250 in compensation. As a result my credit score improved dramatically and I’m pleased to say I’ve managed to remortgage to a competitive rate. Keep up the good work.
Sara (Debt Camel) says
Good news!
Luke says
Hi I took a phone contract out with t mobile for my mother but she went over and they stopped the contract with me owing them money so my mother set up a direct debit with them but some reason a few weeks after doing this they decline a payment becuase no money was in there but dident realise and I wasent made aware of this so my account whent into default and got passed to a debut collector so after I seen this on my credit report I paid it off but could I ask them to take it off my account complete becuase I wasent made aware that the payments have stopped and they dident send anything out to me.
Thanks.
Sara (Debt Camel) says
How long ago was this? And have you complained?
Luke says
The contract went into default beginning of last year and only noticed that it did from my credit report and I told them I dident receive anything saying that it was going into default but the told me I had to pay it with the debt collector so that’s all I done so far
Mimi says
Defaults have been on my account for more than 6 years, some for over 10 years and haven’t dropped off my credit file. How can i fix this?
Sara (Debt Camel) says
What credit report are you looking at? It seems likely the accounts are just marked as arrangement to pay or 6 months late rather than as defaulted. Check to see what the default date is on each debt.
SM says
Hi
My son has a default from a student bank credit of £750 since 2014. He is now studying abroad.
If he pays up now when will this record disappear from his credit agency files?
What happens if he does not pay the money. Does the default continues indefinitely?
Thank you for your advice.
Sara (Debt Camel) says
A default disappears 6 years after the default date whether it is paid or not.
If he doesn’t pay the debt, there is a risk he could get a CCJ, see https://debtcamel.co.uk/no-calls-or-letters-about-debt/. If he doesn’t intend to return to the UK he may not care about this.
If the debt has been sold to a debt collector, it could be worth offering a lower amount to settle it, see https://debtcamel.co.uk/debt-options/less-common/full-final/
benjamin harding says
Hello
Tesco sent me a letter telling me I had 5 days to make a payment on my credit card or the account will default, It took 6 days for the letter to get to me, I rang them as soon as i opened the letter and made a payment, they are saying there is nothing they can do and it is impossible for the default to be removed. is this true?
cheers
Sara (Debt Camel) says
Was your account already in arrears? By how many months?
benjamin harding says
3 months in arrears
Sara (Debt Camel) says
OK well legally they are entitled to add a default without telling you at all. But I think you can reasonably say it is unfair fro them to write you a letter telling you you had 5 days to make a payment which only arrived after the 5 days.
Have you now repaid the arrears?
S says
hi
I entered into an agreement with DLC in 2016 to Pay £10.19 a month on an EE Account ( balance at the time £1018.14). i have paid this amount each month for 2 years without missing a payment. I noticed this month that EE have placed a default on the account ( new balance £747.00). I called EE and they advised that DLC sold the debt back to EE in August 2016. EE have written the debt off.
I feel its unfair for the default to be placed now and some idea who to speak to on this matter… I am happy to pay this debt off over a period of time but again need guidance.
thanks
Sara (Debt Camel) says
“EE have written the debt off.” is this what they said? If they did, then your balance should be zero. Did they give a reason why they have done this?
Norman N says
Hi,
I am a full time student , and I owe a credit card company £1100. I was supposed to pay £60 last week Friday, but I couldn’t come up with the cash. But one of my close friend offered to pay the total amount so I can stay clear of the debt as they were aware I am nearly completing my studies . So on Monday I called the company to make the full payment and they told me that it is too late and that I have already defaulted. But they did say the account is still with them and it has not been sold. I did get to make the payment as I am now looking at my options.
As it is still so soon, and I still have the money to pay them off, is there anything I can do now? They have not yet registered this with credit agencies as far as I know. Any chance of reversals after payment is recieved
As they are aware I am a student, any chance this can be considered, after I make payment, and this default can be reversed?
Sara (Debt Camel) says
If this is the first payment you have missed, the credit card company can’t add a default if you made it a few days late. The worst you will get a late payment marker on your credit record. being a student is not grounds for them to remove the late payment marker – but if this was the first time then many firms will remove a marker if the payment was only a few days late.
John Heart says
Hi DebtCamel,
I’m currently trying down the ‘goodwill’ route to get two shop direct defaults removed from my account. I emailed the head office regarding this and they’re response was…
“Thank you for your email.
I can only advise the information provided to me from our Credit Reference Team as per our final response, in that there are no defaults recorded by Littlewoods and Very, as these were removed when your accounts were sold to Lowell.
I am unable to confirm if there is any defaults recorded by Lowell, you would need to contact them direct to discuss this further if you require any information in relation to this.”
Does this mean that Lowell have put the defaults on my account, if so should they have sent me a default notice? As I never received any notices from them, however I did receive one from Littlewoods and Very?
I hope this all makes sense, thanks in advance.
Kind regards.
Sara (Debt Camel) says
I suggest you reply asking what the dates of the defaults were that they have deleted. Once you know those, you can ask Lowell to add defaults with those dates.
If you don’t get a quick reply, you could also send them a Subject Access Request to DPO@shopdirect.com with SUbject Access request as the title of the email, asking for a copy of all the personal data relating to your Littlewoods and Very accounts – give account numbers and your own name, address, date of birth.
Steve says
Hi,
I moved banks on a secondary account in November and all my direct debits were moved over. It transpires that my direct debit for Close Brothers Finance was no longer taken. They tried to email me to inform me on my email i set the account up with which I know longer use. The first I heard about it was when a debt collection agency text me i then paid the debt in full around £200.00. They agreed at the time I was not at fault and removed the late payment and recovery fees but have just discovered a default notice on my account.
Based on the above I have two questions. Does the fact they did not take the direct debit even though it was moved over and the switch was successful mean that they should have just taken the money at the time and also as it was a failing on their part should I not be given more than the 3 months ? (I can prove the money was just sat in the secondary account waiting to pay the bill). And secondly is sending a couple of emails sufficient before filing a default notice under these circumstances should they not have called or sent a letter ?
Thanks Steve
Sara (Debt Camel) says
Have you asked them to remove the default? If they removed the late payments fees, I would have thought they would agree.
Steve says
Hi,
Thanks for your reply. I have called them and asked for it to be escalated as the guy I spoke to said he couldn’t take it off. I am wondering if they refuse to take it off do I have a good case with he ombudsman?
Thanks
Ashleigh says
Hi
I have a default on my credit score dating back to may 2017, the first notification I got of the default was from the debt collection agency in September 2017. I phoned the company the day I received the letter and made an agreement to pay it over 2 payments. The default also has a much higher amount than the amount on the letter. Should I be able to get this removed?
Sara (Debt Camel) says
A case to have the default removed will need rather more information than that. What sort of debt was this? Do you agree the money was owed and what was the date you should have paid but didn’t? Why wasn’t it paid on time?
Ashleigh says
It was a phone contract and I believe I missed the final couple of payments, I was in the process of moving house and I had a lot of health issues at the time and I wasn’t keeping track of my finances very well. I didn’t receive any correspondence from the phone company, the phone was broken and I knew the contract was almost over. I didn’t realise the direct debit had failed and a year after I moved I received the letter from the debt collection agency, this was the first time I’d been made aware of it.
Sara (Debt Camel) says
I think it’s then unlikely that you will be able to get the default removed, sorry.
Stephen Peacock says
Some reason my car finance didn’t go out I didn’t know till a month later. O have the money to pay but been a default can I get this removed? Was for June’s payment this year not missed a payment in 3 years
Sara (Debt Camel) says
So you had a DD in place and the money wasn’t taken?
PB says
I’ve just had a debt written off by Lowell as goodwill. They will not be pursuing me for this debt, or selling this onwards to any other company – so it’s as good as settled. The default removal date is only 12 months or so away, but I wonder if there is an argument to have the default removed from my credit file. (They would not agree to the removal)
Thanks!
Sara (Debt Camel) says
It depends on why they have written off the debt – do you know the reason?
PB says
Hi, sorry I missed your response. Here’s their confirmation letter dated 2 August 2018:
“Original Company: Vodafone
Your account is closed.
You have previously let us know that you needed some time before discussing your account because of your circumstances. We’ve reviewed this matter and decided to take no further action to recover the balance. The account has now been closed. If a default has been registered against you for this account it will remain on your credit file for six years from the date of default.”
Sara (Debt Camel) says
Well that doesn’t suggest that they or the original creditor made any mistake, so I can’t see what ground there are for asking for the debt to be deleted or the default date to be made earlier or the default to be removed.
Andrew Macdonald says
Hi, in 2013 I ended up in arrears with Npower on a dual fuel account. They split the amount (£1900) between two accounts (Gas and Electric) and fitted two pre payment meters. The gas account was marked as defaulted but satisfied in 2016. The electric account was paid off in 2017 but never marked as defaulted it just has 4 years of 6 month late payment markers. I’ve complained to Npower and the ombudsman who agreed Npowers billing hadn’t been acceptable and I was refunded some money but the late payment markers are still there. Surely the late payment markers can’t be correct as I was paying through a prepayment meter. I was hoping to apply for a mortgage this year
Sara (Debt Camel) says
When did you get the refund after the ombudsman decision? How much was this for?
John says
Hi,
In 2013 I received a default from a utility company for unpaid bills.
I continued to live at the property but didn’t speak to them again until 2015.
At this point I pulled my head out the sand and faced my issues, paid off the default and money owing for the period from after the default to the time I called them. I have been clean on my credit since then and during this period it was just them I didn’t pay (i’m an idiot).
I am trying to understand how defaults for my period of no contact works- one was issued in 2013 but obviously I was accruing further utility bills until I took a hold of things.
Should these further missed payments feed into the original default (so it gets bigger) or should they be further individual defaults on my credit file?
To me it was all part of the same issue and between 2013 and 15 there was no contact from me although I am sure they sent me letters.
Is it right that they can default me on separate dates for the same ongoing bill or should this all be one default linked to 2013.
I am not trying to get out of anything – I didn’t pay the bill, I own that and if I have to have a default on my account for the 6 years after the last payment then so be it.
Thanks
Sara (Debt Camel) says
What does your credit record show at the moment? Does it have a default date on it at all? What date?
John says
Yes, it has a default for mid 2013 but then it has a years worth of late payments for 2014 to 2015. So I have one marker showing a d for default for the whole period and then another showing 2s for the whole period. They have assured me I only ever had one account with them but they say this is how they do it- it seems odd.
Sara (Debt Camel) says
So the defaulted record should drop off in mid 2019. That sounds OK for you?
John says
It does but I wondered if I should have the late payments- since they were part of the on going unpaid bill I didn’t know if they should have been put in with the default rather than being late payments that show separtly for what was essentially the same on going problem
Jwri says
While the account is still active they are obliged to record payments that are made, including those made late. You cant default more than once but you can have lots of late payments.
The default itself will be removed after 6 years and usually the whole account goes with it. Because this is an ongoing account though im not sure if the same record continues but just without the default.
Im sure sara will be able to advise x
John says
Thanks – they are implying I am lucky they have recorded late payments instead of adding it to the default because if it added tongue default it would have re aged it each time. As an example if it was 200 pounds in July2013 and I missed the next few bills worth 100 poinds the new default would be 300 pounds dated late 2013 and so on.
Sara (Debt Camel) says
It isn’t possible to “re-age” a default.
John says
Ok, thanks for your help – sounds like I have something to work with – I’m guessing the late payments after the original default should have rolled into the original default with the date staying as it was.
Js2018 says
Can I just check something?
I have received a Noddle notification saying Peachy have added a default to my credit file.
This has been expected, as although I have a repayment arrangement they have said I wasn’t paying enough to avoid further action.
My question is. Is a default valid if I have not received an actual default notice referring to Consumer credit act 1974 etc from the creditor?
I have received fairly standard letters from them stating that I have fallen behind and failure to remedy may resort in Legal Action, CCJ etc, but no official default notice. Don’t get me wrong, a default notice may arrive in post soon, but if it doesn’t, then where do I stand legally?
Can I request this is removed as no default notice or information sheets have been sent to me prior to default being added, therefor not giving me opportunity to clear the debt before default applied?
Sara (Debt Camel) says
A Default Notice as defined in CCA 1974 has NOTHING to do with having a default added to your credit record. A creditor has to issue a Default Notice before going to court for a CCJ, they do not have to issue one before adding a default to your credit record, so not having had one is not grounds for asking for the default to be removed.
BUT have you heard about affordability complaints? You may have grounds for arguing that Peachy gave you unaffordable loan(s) – if you win an affordability complaint, interest will be removed from your current balance, you may get a refund that will further reduce the balance if you had previous loans from Peachy and any negative marks should be removed from your credit record. See https://debtcamel.co.uk/payday-loan-refunds/ for how to do this.