“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
Eric says
Hi, I had two Barclaycard creditcards. I fell into financial hardship in 2009 and I received two default notices in September 2010. I am absolutley positive that these defaults were added to my file by Barclaycard (Mercers) – I seem to remember seeing them on my credit reports. I still have copies of the two default notices.
The debts were later passed to Link Financial – probably in about 2015. In 2018 Link defaulted the accounts again. I have written off to Link asking for the defaults to be removed but they have replied to me saying that Barclaycard are saying that no defaults were placed on the accounts and that the debts were sold as pre-defaulted.
Is there a way that I can get proof that the accounts were defaulted in 2010, other than the original default notices (which I still have).
Many thanks in advance
Sara (Debt Camel) says
You could ask Barclaycard confirm this. if they say the debt was not marked as defaulted, ask them to add a default now.
Do you still owe money on these debts? Are you making any payments?
Eric says
Many thanks for the reply (on a Sunday too).
I am about to write off to Barclaycard now. I also have a reply ready for Link, with copies of the Default Notices enclosed.
This has been going on for a while now – I requested the removal of the two defaults in Jan this year via email. Link didn’t reply to start with so I wrote off to them (via email) in May and got the response saying that they hadn’t been defaulted – this was received in June.
I also wrote off to the Financial Ombudsman and the ICO in February after the required time had passed. Both have written back saying that they are investigating but this is taking so long.
I used to work in the financial services industry but left about two and a half years ago. I am employed now but there are many more opportunities available in financial services but these defaults are having a negative effect on me getting a job. I have had a couple of interviews where I have been virtually offered the job at the interview and then suddenly not got it – presumably when they do the credit check (one was at a credit reference agency).
I was even looking at getting legal representation to get the two defaults removed but I have no idea where to start looking for this.
Regarding the debts, they are still there – about £2k in total. I am paying token amounts on a monthly basis off the total but it will take until the year 2100 to pay them off in full.
Again, many thanks for replying.
Eric
Sara (Debt Camel) says
When the defaults are added so the debts are no longer on your credit record, you may want to think about asking Link to produce the CCA agreement for thx debts, see https://debtcamel.co.uk/ask-cca-agreement-for-debt/
Lindsay says
Hi Sara
HSBC offered me a managed loan to consolidate my personal loan, credit file & overdraft into one product. I’ve had a few issues with them recording payments on my personal loan as missed payments not an arrangement which they have said they will fix them & make sure my credit card was showing an arrangement as well, but this weekend i got an alert that they have reported my Credit Card as having defaulted completely!
As this was a consolidation loan I don’t think this is correct. When I spoke to them I was in an arrangement for my Personal Loan and the person I spoke to said the managed loan was going to avoid the personal Loan defaulting so therefore it was a better option for me, but mentioned nothing about the Credit Card defaulting as a result.
I have never missed a payment on my credit card, the qualifying payments for my managed loan went to my credit card, and now I am paying off the Entire credit card balance on my managed loan. Nothing on the call when I set up the managed loan or in any paperwork mentions that the other credit product would default.
I don’t think this default is right? It’s making me very anxious that they won’t agree to remove it as they have been quite difficult to deal with through this whole managed loan set up process – they take weeks to respond to simple queries.
Any advice very welcome!
Sara (Debt Camel) says
I think this is well worth complaining about.
What is the interest rate on this managed loan?
Lindsay says
Thanks for your quick reply Sara.
it is 0% so it is different to the terms of my original credit product but HSBC offered me this managed loan as a way to help with my financial situation (i have been a customer of theirs for 15 years). If they had explained that it would cause one of my credit products to default i would have never accepted the managed loan and would have found a way to pay the Personal Loan payments in question (i only had 6 months worth of payments left to make and was in a reduced payment plan).
Sara (Debt Camel) says
ok, so a complaint saying this and take it to the Financial Ombudsman if they don’t uphold your complaint and get this sorted. The effect on your credit record should have been explained in a clear way before you took the loan.
Lindsay says
Thanks Sara I will do this. Hopefully HSBC resolve but if not i will go to the FOS.
Blooming says
Hi Sara
I will appreciate your advice with a debt I have with Link for a Barclaycard credit card, My question is in two parts. I requested for a copy of the CCA in February this year and in response to a letter and phone calls asking me to contact them to arrange payment, I called Link this morning to ask why they had not responded to my letter, the lady asked me why i needed it and was I disputing the debt. I told her that i did not need a reason to ask for the CCA and I was not disputing the debt (wrong choice of words) and I was not discussing the debt just that I needed a response to my CCA request. She kept asking (badgering more like) was I disputing the debt and will i be making arrangement to clear the balance. When I didnt budge, she said that she will put in a request and it could take 6 to 8 weeks. My question now is, the account was opened in 2004 and defaulted (i presume) in 2008 when I went into a DMP. Link put a default on the account in 2016 but reading similar posts, I want to know if I should wait for the response of the CCA request before contacting Barclaycard to put the correct default date but I am scared that this may uproot the original CCA. I hope i am making sense. Apologies for the long posting. Thank you
Sara (Debt Camel) says
I want to know if I should wait for the response of the CCA request before contacting Barclaycard to put the correct default date but I am scared that this may uproot the original CCA.
yes you need to contact Barclaycardto add a default.
I understand why you are worried that this may “turn up” the CCA. I think this is unlikely, but it may be sensible to wait a few months.
Blooming says
Thank you Sara, i will wait a few months just to be on the safe side
Jordan says
Hi Sara
I got in touch last week when rumours of Sunny going into administration we’re doing the rounds regarding the Ombudsman final decision on my complaint.
They said Sunny had to remove both defaults and write of the debt. Where do I now stand with the defaults? Can I show the credit agencies the email from the Ombudsman as proof and get them removed that way? I don’t particularly want to wait years for them to be removed like in the WDA and Wongs cases.
Thanks
Jordan
Sara (Debt Camel) says
I suggest you first ask Sunny customer services to do this,
Bobby says
I’m hoping you can help.
In 2012 when i was just out of uni i got myself into quite a lot of debt. I was given a nationwide loan(£16,000), £2000 overdraft & £5500 credit card. This quickly became affordable and the loan/overdraft defaulted in July 14 (recently removed from my credit file) and the credit card defaulted in July 15. Even though i stopped making payments to all 3 at the same time. I recently wrote to Nationwide explaining that i felt it was unfair lending as my salary was only c. £20k per year. Secondly i asked for the default date of the credit card to be brought forward in line with the others. Nationwide have responded as follows to say the disagree and it wasn’t irresponsible lending and applications are assesed against strict underwriting. Re the default they said because i had entered into a stepchange plan they agreed to not default the account for 1 months. This has confused me as the other two accounts were also in the plan but defaulted 12 months earlier. I will be in a position to make a full and final settlement of 40% in about 4 months. However is it still worth pursuing my complaint? I’m trying desperately to improve my finances and credit score and bringing forward the credit card default date would help.
Sara (Debt Camel) says
How large are the debts at the moment? How much have you paid to them so far, to Nationwide direct or via StepChange?
Bobby says
Hi sara. I still owe £17k.
Sara (Debt Camel) says
and do you have other debts in your DMP?
do Nationwide still own these debts or have they been sold to debt collectors?
May May says
Hi Sara
I applied for a DRO in May 2018 and ended a year after I have all the emails and hard copy of the discharge letter.
I am worried that 3 of my creditors are still marked as default and in arrears in my Credit Relport while the others are closed
What should I do? They never contacted me about my debt since 2018 but I am an my knowledge all my debts ate wrotten off
Should I be worried or just wait for the Credit report to clear
Hope to hear from yoi
Sara (Debt Camel) says
Hi, this other article looks at what should happen on your credit record after a DRO ends and how to get lenders to put it right when there is a mistake: https://debtcamel.co.uk/repair-credit-record-dro/
Kevin Mc says
Hello
6 year old (June 2014) default fully paid off in April 2019 to avoid a possible ccj.
It has now been removed from my report July 2020 but within the closed accounts section, it is still showing….
I have contacted TransUnion via email though have not had much luck with them in the past.
Sorry,I’ve been going around in circles on the net trying to get a definitive answer.
Many Thanks
Sara (Debt Camel) says
That’s odd. i would give it another month or so and then put in a written complaint to Transunion asking for it to be deleted if it is still there.
Bex says
I have a historic debt relating back to a mobile phone contract from 2011. I am in the process of applying for a mortgage however I was turned down due to an existing default reported in June 2018 relating to the historic debt of the mobile phone account in 2011. I have searched through bank statements going back to 2013 as the bank don’t provide statements online going back any further and as I suspected I can’t find one payment I have made to the mobile company in that time period. My initial feeling was that I defaulted in 2012. I have since contacted the mobile phone company and asked them to either remove the default as I defaulted many years earlier than 2018. They responded to say the default will be recorded as satisfied once I’ve paid the outstanding monies. I am happy to pay the money to have it removed however recording the default as satisfied will not put me in a better stance for a mortgage. I have contacted Equifax to dispute this also and I have requested historic bank statements for the period of 2011-2012 to help pin point the month and date I initially defaulted. What I wanted to clarify is, can this default be recorded as late as it has been (years later) despite me defaulting so much earlier and how likely is it that I can get this removed? Thank you
Sara (Debt Camel) says
See https://debtcamel.co.uk/debt-default-date/ for the rules for default reporting.
Rebecca says
Thank you Sara for the link., it was helpful. I have followed the advise on there to dispute it.
Jezza says
Hi,
I got a default on my credit file from Newday (Debenhams) and they then assigned the debt to Link Financial who also gave me a default for the same debt (I didn’t also default on payment with Link) . They are stating they have a responsibility to carry that default over, however, I now have essentially 2 defaults for the same debt. Is this allowed? Thanks for any advice
Sara (Debt Camel) says
Is the NewDay debt showing as having a zero balance owing?
Jezza says
Hi Sara, No, it is showing the same balance as the Debenhams one
Sara (Debt Camel) says
OK that is wrong. The two defaults bit is right – only one of them is counted in your credit score – but the original debt should now have a balance of zero showing. See the “But I now have two defaults on my credit file!” section in https://debtcamel.co.uk/.
Send New Day a complaint and ask them to correct this.
S says
Hi Sara,
I hope you are well.
You have assisted me in the past and I have a query I think you may be able to help me with.
I had an outstanding bill with Scottish power. They have billed me even after I sold the property so I have explained this to them and they asked to see evidence that the property is no longer on my name. I have sent them this and they have accepted it.
I no longer owned the property since 2017 but in 2019 they gave me a default on my credit file of around £9,500. I complained about this and after several months they have now accepted I should not have been given the default and they will remove it. What I want to ask is, could I be eligible for any compensation? As this was an error from Scottish power and it has really affected my credit report and lowered my score.
I look forward to hearing from you.
Kind Regards,
S
Sara (Debt Camel) says
Have they accepted you don’t owe them any money?
S says
I owe them money but upon til 2017.
The default was given in 2019 – when Scottish power kept billing me even after I sold the property. So the lady who called me said I am arranging for the default to be removed as it was given to you incorrectly.
Sara (Debt Camel) says
OK that’s good, if you owed them any money they were entitled to add a default.
I would be surprised if you can get any compensation for this. They didn’t have to remove the default at all. And during this period you have had other defaults and CCJs. It seems unlikely this default made much of a difference to your credit score.
Adrian Minta says
Hi. I am currently going through the process of trying to get an incorrect default removed by Scottish power. Do you have any contact details for someone that deals with this directly as I am only dealing with their customer service advisor. Many Thanks. Ade
Cj says
I have a default date dec 2013 which was updated dec 2016 when will this be removed please
Sara (Debt Camel) says
why was the date changed?
Mr Wayne Miller says
Hiya I have a default on a large nationwide loan from over 6 years ago. Nationwide wrote to me offering to add a notice of correction several years ago l and wrote to say debt not enforceable but I never had it done. A debt collector now has it as a default on my credit file but it’s not been removed yet was over 6 years ago. How do I go about having this removed as it’s a large amount?
Sara (Debt Camel) says
What is this Notice of Correction Nationwide offered to add?
What is the default date on the debt?
When did you last make a payment to it?
Wayne Miller says
I believe the notice was due to the loan being unenforceable as they hasn’t provided required info on a refinance. I made very few payments. The loan is showing as opened apr 2014 and is now with Cabot financial who I have never communicated with. Cabot have an update listed in August 2019 but I have never responded to any correspondence so that would not be me reaching out to them. The nationwide account shows closed but Cabot still have there’s and at over 6k i really need rid of it.
Sara (Debt Camel) says
What is the default date on the credit record?
The debt will drop off your credit record 6 years after the default date on the credit record.
It may be the default date on the credit record should be earlier… that’s why it’s important you find out when you made payments to the debt.
Wayne Miller says
I guess if the account was opened in April and I made a few payments it may be that I’m just coming up to six years. I will contact nationwide. Thanks for your help
Sara (Debt Camel) says
what is the date showing on your credit record????
Wayne Miller says
The default date is Feb 2015.
Sara (Debt Camel) says
Then it will drop off your record in Feb 2021.
If you want to argue for that being earlier you need to know exactly when you paid the loan and when you stopped.
Wayne Miller says
Nationwide have it listed as paid and closed on credit karma yet Cabot who obviously bought the debt off them are still listing it. Is that legal?
Sara (Debt Camel) says
yes, that is what normally happens when a debt is sold to a debt purchaser. Cabot should have used the same default date that Nationwide did.
ravi says
hi i got issu with barcaley bank in 2016 sombody buy stock me he made payment bye bank trasfer.next day i got call froud deparment.
they didnt tell me why the closd my acount. after few day my all bank acounts closed. i don”t have my fault wht i am suffers lots.and can u tell
me when my defult clear. and somone can help me?
Sara (Debt Camel) says
I suggest you read https://debtcamel.co.uk/name-fraud-database/ and check the fraud databases. if you find your name there, you have to complain to Barclays and ask them to remove it, explaining why it is unfair. You can take this complaint to the Finacial Ombudsman if Barclays reject it.
I cannot help with the details of your case. If you need help, please talk to your local Citizens Advice.
Ashley says
PLEASE help,
I’ve had an affordability claim won with amigos. That accepted 3/4 was unaffordable, this includes the current one. So anyway they took the interest off and that just leaves a bit left to pay to be cleared. Now however they have sent a default letter for the loan even tho it’s been settled as unaffordable, also this only 3 days after the payment was due. However I paid the agreed amount which is affordable for me.
Are they allowed to do this? Also so quickly like 3 days after only the first payment missed? Which I haven’t missed as I paid an agreed amount. They are saying I’m still breaching the initial contract.
So I would really like to know if this correct.
Thank you so much
Arthur says
Hi I need help with an old
Water utility debt it began in 2009 I left the property in 2018 and didn’t pay anything at all as they billed me for over £300 within the first 6 month which I disagreed with as it was a one bedroom flat, it’s still showing on the credit report and now stands at £3790 it was open August 2010 and says updated March 2020, how can I get this removed without having to pay it all of please
Sara (Debt Camel) says
You can dispute the amount if you think it is wrong. I suggest you talk to your local Citizens Advice.
Aaron says
Hi Sara?
we had a phone contract with a mobile company ( bought a phone for my 10 year old daughter) lost my wallet in Jan 2020 and the credit card number had changed. The mobil.company informed us that they were unable to charge us..So I called them to make my payment (52.25£) but I kept failing the security question and the bill amount. Attempted multiple times on various dates but couldnt go past security. questions. Apparently the mobil.company passed this on to a debt collection agency who called and I was able to make the payment without any security questions. But now this shows as a default on my credit rating. I called Tesco to ask if they can do anything about this and I was put to a manger who just said they cant do anything about it. I explained I tried to call multiple times to make the payment but couldnt go past security, to which he agreed that he could see comments by customer reps that we called to make payment but failed on security and bill amount. The manager just kept saying they wouldnt do anything.
Please can U advice how to get this default fixed..we are in the middle of working out a mortgage.. Many Thanks
Sara (Debt Camel) says
Put in a formal complaint about this. Much better than trying to do it over the phone: https://www.tescomobile.com/help-and-support/manage-your-account/making-a-complaint
Rebecca says
Hi Sara,
I recently received some advice from you with regards to how to dispute wrongly recorded default information on my Equifax credit report. I raised these disputes 16 days ago and I’m urgently required to provide a mortgage in principal for a property I’m looking to buy, however the mortgage lender in question wants my defaults showing as satisfied on my credit report. I paid the relating debts in June 2020 and disputed with Equifax on 7th July that the debts now need to appear as satisfied. Do you know if there is a way to speed the process up to record the correct up to date information? I have spoken with all the relating creditors whom say it’s out of their control when Equifax update their reports to show satisfied accounts. Equifax occasionally claim (depending on advisor I speak to) that a total of 21 days has to pass before the creditors they’ve disputed the accounts to can reply. Any advice appreciated on how I can go about speeding this process up before I lose my potential mortgage because of slow credit reporting.
Many Thanks
Rebecca
Sara (Debt Camel) says
Sorry, these things do seem to take ages. That’s why I suggest people check their credit record for problems 6 months before applying for a mortgage.
Jay says
I took a loan with Peachy in Sept 2019 and in Feb 2020 I had a reduction in my income and was unable to make the Feb payment. I called and requested a temp reduced payment. I was set up for £15/m until July where I would resume full payment. In June I received a notification on my credit report advising a default had been registered. I contacted Peachy who advised me as the Feb payment had not been made the default has been correctly applied. I was advised had I requested a payment holiday (covid) there would be no default as everything would be frozen. I feel this is unfair as I was in a position to contribute in some way to my loan still. I raised a complaint and was advised I had set up a reduced repayment rather than a payment holiday. It was at this point I found out CashonGo had entered administration and was given a final response. 2 weeks later I received an email from Peachy advising a default notice is about to be issued. I called them immediately, cleared the balance in full and closed the loan. I asked on the phone if anything will be registered and advised no.
Now I have closed my but still have this default however:
When the loan was taken out, I had multiple payday loans therefore this loan was technically not affordable.
If I had taken a payment holiday, there would be no issue.. the fact I made some form of payment was not considered.
The balance was paid in full, no agency, and closed within the agreed initial loan period.
Is there anything I can do?
Sara (Debt Camel) says
Was this the first loan you had from them?
Jay says
Hi,
Yes first loan.
Sara (Debt Camel) says
As it was the first loan it is unlikely you will win an affordability complaint unless the loan was VERY large. But you may as well submit one and let the administrators decide – if you win it any negative marks will be removed.
The problem seems to me that you asked for a payment arrangement in February. It is hard to see how this could be as a result of Covid-19.
If you had not asked in feb for a payment arangement but had asked later for a covid-19 payment break (or reduced payment) that only applies for 1 month to payday loans.
I suspect you won’t get amywhere with trying to get this changed.
Jay says
Hi Sara,
Thanks for your time and input on this.
i’ve actually checked my credit report and it looks like this was actually my second loan. First loan paid off in August and then taken out again in September. Would this have any effect on it, or in terms of how I should send the letter?
Thanks again,
Sara (Debt Camel) says
How large was the first loan? the second loan?
jay says
First loan was for £250,
Second loan 300 initially, then topped up twice therefore in total £550 borrowed on this loan,
Sara (Debt Camel) says
ok, that makes it more likely you would win an affordability complaint for the last top up, which would mean the default should be removed.
Nicola says
I have found a default on my credit file from British Gas for £64 from an address I haven’t lived in since 2008 that I knew nothing about.
I only found this as I have a score of 995 with Experian but got declined for a mortgage, upon checking Checkmyfile I found the default with Transunion.
Am I right to understand that this default should have been recorded back in 2008 and can it be removed even though the debt is not showing as settled?
If not what sort of action should I take to try to get this removed by British Gas?
Thank you.
Nicola says
I forgot to mention that the default was recorded in October 2015
Sarah says
I would be interested to know the answer to this. I have had the same issue with British Gas after selling a rental property I owned many years ago-Unbeknownst to me the outgoing tenant transferred everything at the property into my name and didn’t find out until about 7 months later. British Gas closed off the account in June 2015, when a debt collection agency traced me at my current address in jan 2016 I disputed the bills and began what was a lengthy complaint with BG. As at June 2015 the status was “6” on my credit file (worst) then in February 2017, nearly two years later, they added a default to my credit file for the gas account (not for the electric for some reason). The ombudsman eventually ruled in my favour re their shortfall in service, the billing dates etc but not about the removal of the default, what they failed to address though is why it went on nearly 2 years after the account had reached the worst status.
Sara (Debt Camel) says
Why didn’t you ask the Ombudsman to clarify the default date issue?
Sarah says
Part 1: I desperately need your help! I ported a number from Vodafone to O2 in January and there was a small amount of money to pay off the contract early (£110) which was due to be collected in January. I don’t know why but the payment was not taken from my account, I was unaware of this-partly as the number transferred on its port date without issue, and also because I was in and out of hospital in Jan because I suffered a really traumatic miscarriage which caused me to haemorrhage and led to post partum infections-my life was turned upside and I have 5 children and full time job to juggle in between this trauma. There was nothing amiss to suggest it hadn’t come out and that was the last I heard from them until I had a debt collector get in touch with me by post/email on 1st June. There was no mob no given on the letter and I have 2 other lines remaining with Vodafone I doubted the legitimacy of this. I checked my online account, nothing to indicate a problem. This company would not leave me alone so 2.5 weeks later (after receiving no response from Vodafone complaints about it) I paid this agency simply to get them off my back. I then received an alert on a credit monitoring app to say a default had been placed on my file, I was absolutely floored and devastated by this, we are in the late stages of our house sale, lost our mortgage and don’t know whether to pull out of the sale because we will be homeless…..contd
Sarah says
Part 2: After a rather fraught complaints process I finally managed to speak to someone at Vodafone about my complaint, he advised that after payment wasn’t collected on 10th Jan they sent a reminder on 28th February, he said they then sent another reminder 3 months later on 29th May 2020. I absolutely unequivocally disputed this with them as I have not received one single bit of correspondence, nothing, no phone call, letter, email, nothing in my Vodafone app. I knew nothing until 1st June. He said their credit file team advised there was nothing to be done to remove it. I just don’t know what to do now, as I said even complaining to them was horrendous. I told him I wanted to escalate the complaint within the organisation and he advised my only option was to “try” the critical illness team to see if they can help. I am a broken woman right now, I have had the year from hell, I’ve just cried and cried over this to the point where I feel like my only option is to end my life so my family can have my substantial life insurance and not face the situation we are in now. I can’t cope with life like this for 6 years. Ive never missed a payment in 5 years. I would not put myself in a situation like this for £110.
Sara (Debt Camel) says
Trying the critical illness team seems like a good idea.
If that doesn’t work , you can send your complaint to the Finacial Ombudsman, but that will take many months to resolve.
if you were applying for a mortgage trhough a broker, ask him for his advice. Some lenders will not mind about a very small problem like this if everything else looks great.
If you weren’t applying through a broker, talk to a good one urgently!
But this is a very difficult mortgage market because of Covid-19. If a broker says the vodafone issue has to be resolved before you can get a new mortgage, you have to choose betwen loosing your sale and renting for a period while your complaint about your credit record goes through.
Andrew says
Hi there I’m looking for a bit of advice my default with sunny loans has been passed to a collector. It’s dated on 2017 I phoned the debt collector. yesterday I put them an offer in to pay the loan off in full but stated i want the default fully removed from the account. They said they can’t do it but then passed me to a manager who said we would be willing to do it as long as it’s been paid in full. Can they do this or are they just trying to get me to Make the payment in full. I also got them to send me over an email telling me the agreed terms.
Sara (Debt Camel) says
how many loans did you have from Sunny before this defaulted one?
Alex says
Hello,
I have a default from a couple of years ago on a small loan. I missed one payment and the following month was defaulted. Although I readily admit i was the cause of my own problem. I have called the company and they are stating the reason why it was applied so soon was because it violated the terms of my loan contract. Do the terms of loan contracts supersede the usual 12 week default regulations? Any help would be appreciated.
Thanks
Sara (Debt Camel) says
So you made all the following payments? Did you also repay the one you had missed?
Al says
Yes, full payment following month and thereafter
Jo says
In 2009 I was a student and tried to go to university despite my mental health problems. When I went to university NatWest upgraded my account to a student account and provided a £2000 overdraft. They also sent me a credit card (I am 90% sure I did not ask for this) and the limit was a whopping £4800.
My mental health was deteriorating at this time and I was (wrongly, I would later find out) diagnosed with bipolar disorder by a psychiatrist. They put me on high doses of anti depressants, anti psychotic and mood stabilisers (the anti depressant was twice the maximum recommended dose, I later learned). The drugs sent me totally loopy and I spent money maniacally.
As my life crashed down around me so too did my finances. I had to leave university and return home to my mother’s place which was a very traumatic experience. Eventually I got really good help and now have my own council flat which has transformed my stability while I have been undergoing treatment. I have been in default on the credit card since mid 2015. I was placed into default on the overdraft in 2017. I arranged a £1 a month agreement with NatWest special support team and my accounts were closed, I set up a new bank account with a different bank which I have used ever since.
Since then I have been under primary care mental health team for 5 years and have therapy every week. I was diagnosed with autism last year. The specialist said that the drugs I was placed on when wrongly diagnosed would have been extremely damaging to my atypical brain which does not respond typically to medication.
I have been stable for the last several years since I received the right help. I am in receipt of PIP until 2025 and also get ESA at the high rate. I have a specialist nurse and am with adult autistic services.
My finances are stable now (I am a very sensible person normally) but it’s just these historic NatWest accounts which are the bane of my existence. I was in a terrible state in 2009 when they gave me the overdraft and credit card. I could produce medical evidence attesting to this fact if it would help.
My question is, is there anything I can do except register a Notice of Correction on my credit file? Should I try and pay more than the £1 a month to the debt? Is there any grounds to ask NatWest to consider writing the debt off or the defaults off due to my psychosis and the fact they gave me the credit without doing checks? Thanks to anyone for help, this is very overwhelming for me and I have been very nervous about writing something like this.
Sara (Debt Camel) says
You can try asking them to write off the debt. See https://debtcamel.co.uk/debt-options/less-common/write-off/ for how to do this. Point out that you are unable to pay more to the debt at the moment and the thought of a 2009 debt still hanging over you is affecting your mental health. Any evidence about your current mental health may help this.
If they refuse, I don’t think you should stretch to pay more – any amount that would be affordable would still be a mere pinprick against the size of the debts… Instead I suggest you talk to a debt adviser about a Debt Relief Order, see https://debtcamel.co.uk/debt-options/dro/. As you are on benefits you would qualify for this. It wipes out your debts. It wrecks your credit score for 6 years, but does that make any real difference to you? National Debtline on 0808 808 4000 are good people to talk to about getting a DRO.
Jo says
I emailed them with a load of medical evidence dating back 5 years up to last year, including evidence I am unable to work permanently due to disability, my ASD diagnosis and letters from GP and mental health nurse, and they said they would consider writing the debt off but asked for a financial statement. They said I had provided more than enough evidence of my life long mental health problems.
I provided a statement which shows I have about £40 available left each month (this is variable). They replied and now want all of that as repayments, meaning I have gone from £1 per month on each to £40. I am devastated.
Sara (Debt Camel) says
How unhelpful is that! You could complain and say how inappropriate it is for them to treat someone with mental health problems like this, but instead this may be the time to stop asking your creditors for help and opt for a Debt Relief Order which will wipe out your debts. I suggest you phone National Debtline on 0808 808 4000 who can explain your options and set up a DRO if you would like.
Jo says
Thank you Sara. I am shaking with tears. I am very upset that since I emailed them asking for their consideration of my lifelong impairments, wrongly given psychotropic medications which induced mania and damaged my brain at the time of the credit being issued and made me incapable of reading letters or understanding the gravity, the same person has never contacted twice. Each response has been from a different human being. And today’s email was cold “Having reviewed the information provided in your financial statement, I write to advise you that we are not prepared to accept monthly payments of £1”. So robotic, and totally ignoring everything I said in good faith, exposing myself in the process. My disability feels like it’s banded around their office and they are treating me like a criminal. I feel genuinely discriminated against and really on the brink.
Jo says
PART 2
I have replied stating this and saying I feel it is very unfair to treat me in this cold fashion despite concrete proof from medical professionals (I even said I have medical proof of admission to child psychiatric services age 5!!!) and asking them to review it again, and if not I would like them to provide all original paperwork from the time of the loans so I can take further action
If all that fails I would do the DRO thing, but since the biggest debt (the £5000 credit card they sent in the post at the height of my psychosis) is falling off my credit report in about 8 months, is it worth adding another 6 years to my file?
Sara (Debt Camel) says
I agree they have treated you unfairly.
But does your credit score really matter to you? If it doesn’t, then you have a simple, easy, cheap option to get rid of all of these debts.
Jo says
I suppose it does even just because I would like to hope one day I could get credit for things even if it’s just a new sofa from DFS or something for £8 a month. In early 2021 the credit card comes off and the overdraft is due to come off in 2023. If I get a DRO does that mean my credit score would be awful until 2026? These 2 are my only debts/bad marks apart from an active credit builder credit card which I’ve never missed a payment on. Do you know if it is right that NW gave me a £5000 limit as a student, I think without me requesting one (eg automatically)? I suppose I just want to believe one day I will be able to be rid of the black marks which symbolise to me, being very unwell for about a decade and without support I needed at the time and was entitled to (benefit/financial or correct mental health help)
Sorry if this all makes no sense. I appreciate your replies. You are a kind and selfless person.
Sara (Debt Camel) says
Do you know if it is right that NW gave me a £5000 limit as a student,
Ethically is not right.
But it is a very long time ago and it may be hard to prove whether you asked for it or not. You can complain about this, but if the case goes to the Ombudsman it could take a very long while.
yes a DRO will mean a bad credit rating for 6 years. It seems to me to be the simplest, quickest and least stressful option for you but it’s your choice. I do think you would find it useful to talk to National Debtline.
Jo says
Thank you Sara. I will call the National Debt Line today. I appreciate your time
Zoe says
I was hoping for some advice.
In 2014, I went through a difficult patch financially and got in a mess with my HSBC credit card. They defaulted me and sold the debt to Robinson Way whom I eventually set up a payment scene with mid 2015. My default date had always been 8 August 2014, therefore should have come off my account on Saturday. However the end of 2018 Robinson Way cancelled my payments to HSBC for some unknown reason (I had never missed a payment with them) who then sold the debt to Cabot. At this point my default date has changed to nearly a year later in 2015.
From various irresponsible lending complaints I have copies of my Eqifax credit report from Dec 2015 and again from Nov 2018 both showing the date of 08 August 2014. These have been sent to Cabot who refuse to change the date saying HSBC gave them the correct date, I have gone through Trans Credit Union who have had the same reply.
Zoe says
I have contacted HSBC through Resolver and a number of what are advertised as complaints departments only to be told they are feedback departments and I need to
log my complaint online. I’ve not used my HSBC current account or online banking for nearly 15 years which I have explained and never get any further assistance. I am now left with the only option to go into a branch which I did attempt last week only to be greeted by huge queues outside.
What can I do here? Am I able to take this to the Ombudsman. I am ready to apply for a mortgage and this is the only thing holding me back and now I’m going to have to wait another year. I’ve not paid any payments to Cabot as asked them to provide a CCA which they haven’t – I think this is why they are being so difficult. However is displaying incorrect information in the public domain against Data Protection?
Sara (Debt Camel) says
do you have a copy of a credit report showing a default date in 2014?
“I am ready to apply for a mortgage and this is the only thing holding me back “ – that’s good – you have resolved all the Halifax, UK Credit, QQ etc problems? How large a deposit do you have?
Zoe says
Hello,
Yes I have 2 Equifax reports one from 2015 and one from 2018 both showing the 2014 date. The 2018 one has been sent to Cabot and they refuse to accept it.
Uk credit and QQ payments were always paid so no bad credit details listed here. UK Credit has been removed in its entirety and quick quid is still there from 2016-2018 and hopefully 3 of their loans will be removed whenever they sort out what’s going on there. These have never been listed as defaults.
Halifax is coming off as they admitted they had not correctly notified me of the default or the change to my payment date.
This is the last one. Myself and my partner have about £10,000 saved up.
Zoe says
Also can I say a massive thank you to you.
Had I not found this site my life would not be what it is today.
To not be drowning in debt to have managed to clear mostly everything I owe from the compensation. No longer lying to those around me suffering from anxiety and very dark thoughts. You are truly amazing – thank you
Jayce says
I bought a car in 2014 from a sub prime car finance place, the car was not fit for purpose, we discovered it had multiple things wrong with it so it would not have passed its first MOT after we had bought it, we argued with the finace company and they sent someone out to talk to us, he agreed and emailed us saying he had arranged for the car to be returned with nothing further to pay, the car was collected in June 2015 but I stopped paying for it in November 2014. Two years later they started chasing me for £1800 they say was outstanding, I argued and eventually ended up at the Ombudsman providing evidence of the faults and the email from the guy who came out to see us. The Ombudsman sided with them saying they couldn’t be certain the faults were there when the car was sold and also the guy they sent out didn’t have the authority to make that judgement on the car or to close the account (He was the regional collections manager!) after that we never heard another thing from them until April 2019 when a DCA contacted me saying they had bought the debt and I now owed them, I wrote back with a full review of the procedings and told them I would not be making any arrangement with them, 2 weeks later they entered a defualt on my credit file for none payment – where do I stand on this? the original debt date is recoreded as 31/07/14 but the defualt date is 02/05/19 I believe I made my final payment in Nov 2014
Sara (Debt Camel) says
It sounds as though you have a good case for a default to be added by the original creditor back in early 2015.
But your problem is what will happen if the debt collector goes to court for a CCJ, which would then be on your credit record for another 6 years. At the moment the debt is not statute barred. It is hard for you to argue for a default date to be added without acknowledging the debt and resetting the statute barred clock. Of course you may not care if you fancy your chance in court – I can’t advise on that.
Ben says
Hi Sara!
Hope you’re well and thanks for helping everyone so far. I felt like this is a good one to add to your pool of answers or to try and tackle anyways as, in my eyes, seems very disproportionate to the damage it will do.
I had notification that my score had tanked hundreds of points below what was usually a very good score. Turns out a company had put a default on my file for £28. I’ve already amicably made a complaint to them via email offering to pay the £28 and I await their reply but just wanted to hear your thoughts and if this is something I can have reversed? I even said the following in the email to try and draw comparison to the disproportionate nature of the default in that “its like having 6 points on your license for going 2mph over the speed limit”.
Anyways, I’d love to hear what you think.
Thanks,
Ben
Sara (Debt Camel) says
You haven’t said why you have complained. If there is a reason there should not be a default, obviously you may succeed. If your only reason is that it is a small amount, I would say that may not work.
Kelly says
Hi Sara
Just out of curiosity I logged onto clearscore today to have an alert pop up to say that a credit card has is going to removed from your credit report (equifax has already updated this information) the thing is I still owed money on this as it was a credit card from Lloyd’s baink- idem purchased the debt- but I have had serious money issues which they are aware about- they agreed again to put my account on hold until September- why would they have removed the debt? The original card was taken out in 2010 but default was from dec 2018?
Sara (Debt Camel) says
I don’t know.
Cihan says
Hi Sara.
I have couole of Defaults which are about 6 years old. They should be removed by december. But these debts have been sold to debt collectors. Should these also drop of.my file?
Sara (Debt Camel) says
yes if the debt collector has used the same default date, which they should have but it’s worth checking to make sure.
NB a debt which is not on your credit record may still be enforceable in court, see https://debtcamel.co.uk/debt-not-on-my-credit-file/
Tracey Rhodes says
Hi Sarah,
I have just been refused a morgage as it appears that there is a default account on my credit report (it wasn’t on equifax which i’ve had for a while but came up on experian when i signed up to that) The debt is for £5 from an old water bill, it seems when i made my final payment i made a short payment but didn’t realise. The water company have not written to me, emailed me or called to advise of this even when they have my forwarding address (as stated on credit report) and have put the account in default. This is the only thing stopping my morgage from being approved. Could you provide some guidance for me this has only been on the file for 6 months and if i have to wait it out that is a very long time.
Thanks in advance
Sara (Debt Camel) says
I suggest you contact the water Company, pay the £5 but point out they have not told you about this and ask them to remove the default.
Sara (Debt Camel) says
Also talk to a mortgage broker. If your deposit & affordability is good, a good broker may know a lender that would not be concerned about what is obviously an oversight about £5.
David Wilson says
Hello,
I had an overdraft with Halifax that went into default in July 2015. I subsequently entered into a DMP and the debt was cleared some time early 2018. Will the default be removed from my file in July 2021 or do I have to wait 6 years from the date the default was fully paid off?
I am disputing the default as Halifax actually paid me two sepaerate lots of compensation due to unfair charges and not taking my personal circumstances into consideration when charging me fees and allowing me to extend my overdraft. (I feel like given they have taken responsibility for this, my file should be updated). I am not sure whether they are going to agree as I have been dealing with this dispute for over a year and keep going round in circles with Halifax and CRAs however I would like to know if worse comes to worse do I only have to wait until July 2021 or is it 6 years from when my DMP ended and the debt was fully paid off? Would appreciate your views. Many thanks David.
Sara (Debt Camel) says
Is there a default date on the credit record for this debt?
David Wilson says
Yes but It’s strange as credit karma shows the default date as July 2015. Which is correct.
Experian (credit club) is confusing as it shows on their credit balance table diagram that the first default was in 2018 and it has one every month leading up to June this year,) even though it first defaulted in 2015 and was fully paid off by 2018) . I’m hoping this is just a glitch on their system, as it does say on the details of the account that it settled in 2015.
Either way I would just like to know if I have to wait until 6 years after it first defaulted or 6 years after the date I paid it off.
Also where do you think I stand with having it removed, as they paid me redress on two occassions for 1. over charging me fees ans not taking my personal circumstance into consideration and 2) for miss selling the account to me in the first place. I have had to escalate this dispute with FOS as Halifax just appear to ignore me. I am happy with the redress but just want it taken off my file.
Sara (Debt Camel) says
The debts will drop off 6 years after the default date. You need to ask Halifax to correct the Experian default date so it is the same as the TransUnion default date that shows on your credit karma report.
If the default date is July 2015, the debt will go July next year. You can ask Halifax to delete the default, BUT you do NOT want them to put in late payment or arrangement to pay markers instead – as then the debt would show for 6 years after it was settled in 2018.
Judy says
Hi – I am a bit confused. I have 8 closed accounts on my credit report and 1 defaulted. In 2014 I contacted StepChange to sort my debts out. They did make me aware that my accounts will go into default. All accounts have since been settled but were defaulted at one point but just one shows as defaulted the others show as closed. From what I understand what counts is the first default date and it’s 6 years from then on that the default will drop. This should be the case soon. However, when I look at both the closed and the defaulted account you can only see the earliest start is 2016, I can’t go back any further but in between I missed a few payments as well while I was trying to settle the accounts and that shows as well. Can the clock be “restarted” by missing a few payments? And also, do the defaults on my closed accounts no longer count as only one is showing as defaulted? The one that still shows as defaulted also says “Settled October 2014” but that’s when I only started my repayments. The other (closed) accounts show much later dates but they are no longer listed as defaulted (although you can see a default when you go into the account information). Sorry if that sounds a but discombobulated as I can’t share any screenshots. But because every company handles things differently it’s very confusing. It seems that some companies started the default mark much later.
Sara (Debt Camel) says
what credit report are you looking at?
MG says
Hi i’m trying to find some information on telecom contracts.
An o2 contract i took out a couple years ago and then got sold to lowell when i couldn’t afford the payments is now causing problems on my credit file, i’m in a better position now and looking for some information on making an affordability complaint but can’t seem to find anything online to say that this is even possible.
It’s still a line of credit so it should be possible right?
Sara (Debt Camel) says
I haven’t seen anyone win a complaint in this situation.
Rob says
I went into default with sunny loans 5 years and 9 months ago. What will happen to the default when it reaches 6 years? Does it drop of my credit report or will the administration of the company mean there will be a problem?
Sara (Debt Camel) says
what is the default date that shows on your credit report?
Rob says
03/11/14, but my credit report shows no monthly updates since June 20 so concerned what will happen
Sara (Debt Camel) says
Then it should drop off in November this year. This is done automatically by the credit reporting agency, not by the creditor.
blooming says
Hi Sara, I am so grateful for all your advice, Having received a response from Link that they have not been able to produce the CCA for a Barclaycard defaulted by them in 2016, I now want to write to Barclaycard to correct the default date as the account was defaulted in 2006. The problem now is I no longer have any correspondence from Barclaycard so not sure where I can write to. I have searched online for contact details but the contact found is for their online customers. Do you or anyone know their email or postal address. The Barclaycard account is only showing on Creditscore in the closed account section with a balance of 0 but it is not showing on credit karma. This default is the only thing showing on my account and it is affecting my score. I dont have any credit cards or bills in my name and I am worried that it will affect any chance of applying for credit. Thank you
Blooming
Sara (Debt Camel) says
There is a postal address here https://www.barclaycard.co.uk/personal/help-and-support/complaints
Blooming says
Thank you for this, i will get on to them straight away
Blooming
Blooming says
Sorry Sara, I meant to also ask, do i request that they correct the default date shown on the account or should I ask them to add a default on to the account because I dont know or remember if a default was ever added to the account. The account was on a DMP in 2008 till 2015 there about before being sold to Link. Thanks again
Sara (Debt Camel) says
You can ask them if there ever was a default – because if there was in 2008, it would have dropped off your credit record by 2014. And say if there wasn’t a default, then you would like them to add one back in 2008-9 at which point your account was 6 months in arrears.
alvan says
i recently had a default on one of my bank account with Lloyd bank over an £100 overdraft i was surprised to see it when i randomly checked my credit score and found two missed payment and a default i quickly called the bank to make payment but couldn’t get through had to wait over a month after i complained to settle the payment . i explained to Lloyd bank that i never got the missed payment notice and that i don’t have any missed payment on my credit file because i never got their letter the lady i spoke to refused to remove the default saying the bank sent letters through royal mail and that i should have checked online i told them during that period i changed my cell so i couldn’t i reported the issue to financial oubourment but now i recently got an email from my landlord saying she wants to sell her property because her our next door neighbour has been so much trouble because we share a walk path and she put her dogs out so we miss so many letters and parcel because the postmen cant get in and they complained to my landlord . so i have to move out trying to get a mortgage i was refused based on the default am depressed because i don’t know what to do i didn’t know this would bring me so much pain
Sara (Debt Camel) says
This does seem a lot of pain for a small amount of money, but it doesn’t seem Lloyd’s are at fault if you never received their letters and didn’t check your account online,
Jamie taylor says
I have a marbles credit card which was passed over to Robinson debt collection. At the time I was with Payplan (still am) so it was added to my debt management plan. I wrote to newday (company that owns marbles) to make a consoling against unfair lending. I received three letters first one to say that they are looking into it, second to say there are over the 8 week deadline and third to say that they have basically made a decision but want to make sure they have looked at all there areas of concern. I rang newday and they said that out of the £706.50 i currently owe them I would have £101.50 removed as they should not have raised my credit limit upon rechecking my credit history and finances. They refused to mention about doing anything with my defaults or negative marks! I would rather they removed the defaults then reduce balance. Surely if they admit fault then they should also sort out my negative marks?
Sara (Debt Camel) says
how many debts do you have in your DMP?
Jamie taylor says
I had 12 but now only 3, 1 is with likely loans but I won a case against unfair lending and they cleared all interest and negative marks the other is with Vanquis but below credit limit so no negative marks. The only thing that’s killing my credit score is marbles/Robinson
Sara (Debt Camel) says
The Vanquis debt is probably marked as “in a payment arrangement” which will also harm your credit score.
With this Marbles debt, you can ask them to remove the negative marks because they have agreed they were at fault increasing your credit limit.
Do yopu know how large the Marbles debt was when you started the DMP? Did they freeze interest straight away? Is this 3101 offer really a good one?
Jamie says
I’ve searched all credit search companies and all just say up to date with no indication of any negative marks for the Vanquis card.
I will try ring marble again to discuss.
It was around £1250 when I started the DMP, yes as far as I can see no interest added. I was surprised how little the offer was in comparison to other companies I have made complaints against I have to be honest.
Sara (Debt Camel) says
ok, so if Marble don’t agree to remove the negative marks then you can just reject their offer and send it to the Ombudsman.
Jayce says
The Ombudsman won’t do anything, I had a Marbles card, I owed around £350 on it when I was rushed into hospital for an emergency stomach operation to save my life, I missed a couple of payments due to this and when I was home and able to speak to Marbles they agreed to put the account on hold to allow me to recover and return to work. During this time Marbles issued a default for the missed payments, sent the account to a debt collector and closed my account – I argued that the account was ‘on hold’ yet they dismissed my complaint so I took it to the Ombudsman who sided with Marbles as ‘they have the right to handle their accounts as they see fit’ and I should have continued to make payments onto the account dispite being on deaths door!!
Sara (Debt Camel) says
how long ago was this?
Jayce says
This was Feb 2019
Jamie says
I rang marbles today and they said it’s not within there practice to remove any negative marks from credit file even when they have admitted fault when either supplying initial credit or increasing credit limit. That’s seems wrong that if you admit fault then all areas from the date in which your upholding the complaint should be put right?
Sara (Debt Camel) says
send your complaint to the Financial Ombudsman then. You can also say you think their offer is inadequate and more should be refunded.
claire says
Hi Sarah
i Was Hoping You Could Help Me ive just looked at my credit report (clearscore) , my husband ruined it we are now seperated ,
First one is a County Court Judgement is showing on my report and says “september 2014” will it go off my report this year ?
The other one under
“Accounts”
“Cabots Financial Current Account”
when i clicked into it it says
“Opened” 24th March 2009″ and then says “Updated” 12th November 2017
And says “Overdraft Used” £1,323 and its “In Default”
ive never had an overdraft with any bank so im confused and shouldnt this have been written off as it says opened march 2009 ?
and the one is “Lowell” and says “in Default”
opened 5th March 2012
updated 15th august 2016 and again no payment history is there but its showing on my credit file and thats £981 !
im trying to slowly piece together myself back again ,
should these have been removed ? and if so how do i go about it
Sara (Debt Camel) says
a County Court Judgement is showing on my report and says “september 2014” will it go off my report this year ?
Yes.
“Cabots Financial Current Account”
Cabot are a debt collector. I don’t know what this is. Is the creditor showing up as Cabot? Is there a default date on the report – if so, what?
“Lowell” and says “in Default”
Again is there a default date on the report?
Which report are you looking at?
claire says
It just says on the “Accounts ” “in default
It’s “Cabot financial” and when I click into it it says “opened march 2009” (no payments were made) and at the side it says “updated” date “November 2017”
It states “overdraft” but I’ve never had one I’m thinking when I closed a bank account back in 2010 it’s that and I owed £132 and the balance is all the interest on it
It doesn’t state “default ” on it when u click into it just the date but it’s open default (hence I never made any payment so it’s obviously in default)
I just don’t understand why when it’s clearly over the 6 years they still have it opened and put a new “update” on it at a later date ?
Claire says
Clearscore , but I managed to find the “Experian” credit file it says
“Current account from Cabot credit management group ltd”
Name : xxxxx
D.O.B : xxxxx
Monthly terms £0
Status : Defaulted
Current balance : £1,323
Start balance : £0
Credit limit : £0
Default Delinquent Balance : £1,149
Start date : 24/03/09
Date Updated : 12/03/17
Default Date 02/03/2015
Then the other one says
Name : xxxx
D.O.B : xxxx
Monthly Terms : £0
Status : Defaulted
Current Balance £981
Start Balance : £0
Credit limit : £0
Default / Delinquent Balance : £981
Start Date : 05/03/2012
Date Updated : 15/08/2016
Default Date : 05/03/2015
And another one has appeared from Lowell the same as above but it says
Start date : 19/04/15
Date updated : 11/06/2018
Default date : 10/05/16
My Experian is showing way more than clearscore oh my gosh it’s made me feel even worse
Sara (Debt Camel) says
Clearscore looks at the Equifax records.
In the Experian report you have clear default dates. Each debt will drop off 6 years after the default date.
You might want to check Transunion as well…
cyrilv says
So – my last default expired on Aug 15th. I see that Equifax has taken note (now off the record, up 52 points and now squarely in the “fair” sector), not sure yet about Experian, but I’m worried that CreditKarma/Trans Union have done nothing; in fact it fell recently (though that will be due to a house move and changing electoral register details). The “derogatory mark” is still listed there a month later despite them saying in the past it would be gone. I’ve already put in a complaint to Trans Union and answer came there none. Anyone know what’s likely to be happening? There have been no further defaults/missed payments.
cyrilv says
Still nothing regarding the CreditKarma/Trans Union inaction over my default that expired on Aug 15th, which I posted about last week with no replies. Anyone have any idea what’s going on? As I say it’s registered ok on Equifax/ClearScore and my score went up – so why haven’t CK done the same? Again, there are no other “derogatory marks” that I am aware of. Could someone give me any clues as to what’s going on?
Sara (Debt Camel) says
Check your TransUnion statutory credit report. If it showing there with a default date of August 2014, send a complaint to TransUnion.
cyrilv says
Already did that about a fortnight ago, no word back from them yet. Yes, it was indeed showing there with that date.
Hannah says
In July Experian started receiving data from BT Group who said I had a credit default for £28 going back to 2017. I never knew about this and BT say the account is now closed and the debt written off/given to a collection agency. The only thing they will tell me about it is it concerns an email address that I have never used. I certainly didn’t take out a credit arrangement for it. The only thing I can think is that it was associated with an old Broadband account that I closed, but that they didn’t cancel the email address and began billing me for it. BT won’t remove this “default” and Experian have accepted what BT have said even though they can offer no proof. This has trashed my credit rating which had always been excellent. It seems criminal that they can literally ruin your life (I need to re-mortgage) but over a disputed debt for £28 they can ruin an outstanding credit history. Experian are regulated by the FCA – how if this complying with TCF?
Sara (Debt Camel) says
Have you sent BT a formal complaint?
Loz says
G’Day Sara
I have a question please.
I have a default dating back 2017 from Thames Water. It was as a result of them moving from getting paid through the Local Authority (which i have done so for nearly 10 years) to getting paid directly. They said they sent letters to let me know it is no longer being taken as part of service charges etc but I don’t really remember getting them. I have tried to contact customer services and no one can help me.
Have you come across any case that has overturned the default?
What are the rules for unregulated debt like water bills?
Should I have signed some sort of agreement?
I am willing to pay what is owed but I would like to get the default taken off alongside it if possible…..
Any guidance or help super appreciated :)
Sara (Debt Camel) says
There isn’t a need to sign an agreement with a water company as they have to supply you with water and you can’t choose to go to another company.
Have you talked to any of your neighbours who are presumably in the same position? Did any of the not get the letters?
Eve says
I haven’t I will do that asap!
Do you know of any defaults that have been over turned from Thames Water?
Sara (Debt Camel) says
These cases are all very individual, knowing what happened in other cases won’t really help you at all. I don’t recall seeing a case like yours.
Olu says
Hi, i have few questions please.
We are looking to go for a mortgage application at some point, we where gifted some money for our deposit.
My credit report is meesed up and I’m trying to so it out.
So i defaulted on quite several pay day loans last year and i also pay can finance. Now my car finance i pay £769 every month because i defaulted and they wanted to apply for order of possession if i do not pay. I’ve tried to get them to reduce the amount i pay so i can pay towards other debts but they disagreed. My first question is are they allowed to do so or is there any way i can get them to agree to reduce my payment. I have filled out an expenditure form but they still disagreesd and secondly the pay day loans, is it possible to request for a pay to delete. I was reading on line that it is sometimes possible to offer to pay and they might delete the default from my report. Is this true or it depends on their policy or its not a thing at all. Thanks innadvance
Sara (Debt Camel) says
How large a % deposit have you been gifted?
How much was the car finance before you defaulted? How many payments did you miss? How many payments now are left?
Who were the payday lenders and how many loans did you have from each of them?
Tracy says
Hi Sara,
I wonder if you could offer some advice please.
My daughter has been in dispute with Halifax over unafrodable Overdraft. She first complained in December 2019, they took several months to investigate then said they didn’t uphold her complaint. Several times she has requested that they freeze Interest and charges but they never did. She made complaint to FOS in June which is still ongoing. IN July, she received another letter from Halifax saying they were still looking into her complaint. So she hasn’t had any communication from either Halifax or FOS since and interest/fees charges etc were never frozen. Today, she received a letter from Halifax advising that they have closed her account and sold the debt to PRA. She has never received a Default Notice from Halifax, the account is still in dispute and I am just wondering how best to deal with this ? Can Halifax close an account they say they are still investigating (as are FOS) can they close and sell it on without first issuing a Default Notice ?
Thanks in advance
Sara (Debt Camel) says
Can Halifax close an account they say they are still investigating (as are FOS)?
yes.
can they close and sell it on without first issuing a Default Notice ?
yes.
Her complaint remains against Halifax. If she wins it at the ombudsman then Halifax may buy back the debt from PRA or may adjust the debt at PRA to be lower.
On the bright side it is very unlikely that PRA will add any interest or fees.
Tracy says
Many thanks Sara.
Just one more thing, can they place a Default (actual not just a marker for late payment) on her credit file without issuing a Default Notice ? it is my understanding the the overdraft is covered by CCA (although exempt from some clauses such as not having to produce a credit agreement)…but that in all other respects ie issung a default notice should be complied with ? I just want to be sure I understood it correctly.
Sara (Debt Camel) says
Yes they can – a default on a credit record just records missed payments. It has nothing to do with whether a Default Notice under the CCA.
Olivia says
Hi Sara,
I took out a student account in 2015. I think it was around January/February. Before I took out the HSBC student account I spoke to an advisor in branch regarding payments and interest and he explained that I would not have to pay back my student overdraft until after I had graduated university and there were no minimum payments involved.
They placed a default on my account in August 2015 for £513 which was a huge surprise to me. I settled the account in January 2020.
I believe I was incorrectly informed about the student account as I was under the impression I did not need to make any payments until after I had graduated university.
Is there anything I can do to get the default removed?
Thank you
Sara (Debt Camel) says
Have you put in a complaint to HSBC?
Olivia says
I didn’t put in a complaint. I just emailed them to query it and they said there is nothing then can do.
Sara (Debt Camel) says
So send them a formal complaint. then you can take it to the Financial Ombudsman if HSBC reject it.
Olivia says
Ok thank you Sara.
Are there any main points I should make?
I haven’t written a letter of complaint before.
Sara (Debt Camel) says
There is no template for this sort of thing. You just need to set out what happened to you, why you think it was unfair and what you want them to do to put it this right (eg delete the default).
Haris says
Hi Sara,
I have a question.
I found out I’m defaulted for an electric bill that was raised in 2017 for an apartment I lived in.
I have been never aware of this bill as I never setup an account with this vendor. I had setup an account with another vendor however that vendor only provided heating to me and not electricity. I never realised this as this was my first stay in UK and was not aware that my current vendor is not covering for my electric.
Now 3 years later on applying for a car finance and getting rejected, I opened a credit report to see this default in there. Upon seeing this default I immediately raised the complaint with vendor and also settled this bill upon realising it related to me.
My question is that is there no duty of care with vendor to ensure that I’m aware of any outstanding bill? I have never received a call or email notifying me of my bill. Further, I never even received my default notice. The PDCS team with whom I settled this bill confirmed they never reached out to me as they didn’t had my details.
Can I be defaulted if I’m not aware of any outstanding bills in first place? Upon getting to know this bill I immediately settled it showing good faith. Can this help in my default be removed?
I’m waiting on a response over my complaint from vendor but would like feedback if someone has been in a similar situation like me.
Thanks.
Sara (Debt Camel) says
I assume the “other vendor” was a gas supplier?
Legally you are liable for the electric bills as you were using the supply.
It’s not the electric supplier’s fault you did not set up an account and without your details how could they contact you?
They do not have to inform you before a Default is added to your account.
You may be able to persuade them to remove the default as a gesture of goodwill – having paid the account promptly may help here. But legally it us correct and they don’t have to.
Haris says
The other vendor was for heating, the apartment did not had gas.
In my defense since it was my first bill setup in UK, I did not knew separate accounts are needed for electric and heating.
Also all this while I had no idea about this bill, how can I settle a bill if I’m not aware it existed? I only came to know about this when I opened an experian account and saw it there as default. Is there no requirement for the vendor to ensure I’m notified of my outstanding bills? If the vendor posted something to me and I missed it or moved apartments then would it be right to list me as a defaulter without my knowledge?
I hope this resolves but it is quite stressful to be in a situation like this.
Sara (Debt Camel) says
I understand your frustration, and it is a pretty unusual situation where there are two accounts for electric.
A supplier will attempt to notify someone, but if they do not have your details, how can they do this? You are legally liable because you were supplied with the electricity.
I hope as a goodwill gesture this can be resolved for you.
Haris says
Thanks Sara, I hope as a goodwill gesture this is resolved. I understand the legal aspect in here since I used the electricity.
Is there any legal aspect of me being aware of an outstanding bill? Is there a duty for the vendor to ensure that I’m aware of a bill in my name and reach out to me regarding this bill. I cannot pay the vendor as I didn’t know I had anything to settle in first place.
Both the vendor and PDCS acknowledged that they never reached out to me for this as they didn’t had my details. Similarly, I didn’t reach out to them about this bill as I never was their customer and was under the impression that my previous bills with another vendor takes care of electric too.
It would be good to know if there is any legal aspect for me in situations when I’m not aware of the outstanding debts. Thanks.
Sara (Debt Camel) says
I am not aware of anything that will help you.
veronica says
Hi Sara, I am looking for some advice I have three products with perfect home from 2017 which I took out when I was in a vulnerable financial situation..::it totals around £4800 for two TVs and a three seater sofa. They haven’t defaulted on my credit file they are still showing late payments every month on my credit. My question is should this have already defaulted and should I contact the company to register the default? Just a note They declined my affordability complaint as I would have been prepared to pay for the goods minus the outrageous charges/interest.
Sara (Debt Camel) says
have you sent the affordability complaint to the Ombudsman?
Are you currently making payments? Are these affordabile? Do you have other financial problems as well?
veronica says
Hi Sara, thanks for the reply!
Yes I have sent the affordability complaint to the ombudsman.
I am making no payments to the company at the moment and haven’t since 2017.
I am currently paying back other debts but as this is showing every month as a late payment (since 2017 up until this year with no default ) I am wondering whether it should have already defaulted and if it would be in my favour to be a default since it was so long ago?
Sara (Debt Camel) says
So I would wait for the ombudsman decision before trying to talk about your credit record, because if you win the Ombudsman case, your credit record should get corrected.
Annomous says
I won my case with Cash on Go Limited, but as they are in administration they have lost the contract to update records with transunion – meaning the default must stay on my file.
Any company in administration can’t update your credit file as they have lost the contract and no credit referencing company will accept changes.
Sara (Debt Camel) says
This is not correct. A company in administration can reach an agreement with credit reference agencies to update credit records.
Anonymous says
Hi Sara
Looking for some advice
Trying to build my partners credit score, mine is perfect at 999 but having trouble with his.
We are wanting to buy a house in the next 2 years so needs tackling.
In 2017 I took over all his bills etc as he was terrible for getting pay day loans. Since I’ve took over, we’ve had no late payments etc.
Upon checking his full report yesterday we’ve seen He owes very little money but two things on his report-
One is coming up as an open account with provident loan – dated feb 2015, it remains as £15 owed in good standing but no payment has been made since May 2015. It’s all positive saying £15 in good standing every month, will this eventually disappear off the credit report? And will this impact negatively at all?
The other is one default against him- nov 2016 so 2 years til that’s removed. (Only a small amount £300)
Just not sure what to do regarding the open £15 provident.
Any advice?
Thankyou
Sara (Debt Camel) says
It’s always hard to know what to say when a lender has messed up a credit report. IF you do nothing, the £15 will sit there and at some point Provident may realise and add a default. On the other hand, if you contact them and offer to pay it, they may then look at the credit record and add a default.
I would be inclined (but I can’t guarantee this will go well…) to phone them up and say he has no recollection of owing any money but he is happy to pay provided that no negative mark is added to his credit record.
And if this goes wrong, if he had more than a couple of loans from them he could send them an affordability complaint (see https://www.transunionstatreport.co.uk/CreditReport/AboutYou) – if he wins that any negative marks would be removed.
The Nov 16 default – who is the lender?
Anonymous says
Hi Sara thanks for the reply
The nov 2016 default is by a company called casheuronet .
I’m afraid if I ring up the provident one regarding the £15 they will say he owes insterest and huge amounts as it hasn’t be touched since 2015, so
I’m in two minds what to actually do about it 🤔
Was thinking it would be 6 years since the last payment in February so maybe ring up in March as I’d pressume they can’t add a default as it would be beyond 6 years since he didn’t pay?
Thanks
Sara (Debt Camel) says
Casheuronet are now in administration. They were a payday lender, brand names QuickQuid and Pounds to Pocket. If he puts in a Claim for unaffordable lending and this is upheld, the default will be removed. Worth a try?
Provident don’t usually add extra interest. And on a £15 balance it couldn’t be a lot, could it!
As I say it is hard know what to do when a lender has made a mistake. A lender can add a default up to 3-6 months after a default.
Anonymous says
Thanks again for the reply Sara, would a claim really be considered unaffordable lending for only £200? (£371 remaining due to interest and late fees I’m not sure )
He has had zero contact to this company for 4 years, would filing this complaint make him “admit” the debt so to speak?
Funnily enough he had a letter from them Monday (says quick quid on the letter)
Sara (Debt Camel) says
did he have any previous loans from them?
Anonymous says
No but one every month the same year from wonga
Sara (Debt Camel) says
Ah in that case he would be very unlikely to win a complaint.
The administrators may accept a settlement offer from you.
Sallyann Hooks says
Hi I went on a debt plan and in 2015 tsb added an AP for 3 months. It was paid off in Feb 19 can i get this removed as it means it’s on there 4 years longer than a default any advice is appreciated
Sara (Debt Camel) says
See https://debtcamel.co.uk/debt-default-date/
Jayce says
Hi,
I received a letter from BW Legal demanding £152 for an old budget insurance that I cancelled ages ago, I wrote the standard ‘don’t know anything about this’ letter and they sent me a statement that showed I made a payment on 1st October 2014 but no more, so I wrote back and said I still deny all knowledge but this is now Stat Barred as it’s over 6 years old – they have come back with – a defualt was registered on the 1st Feb 2015 so its not. Now none of my credit files show any default for this so the question is, can they issue a default and not record it??
Sara (Debt Camel) says
did you make a payment then? Was there a balance owed?
Did this ever show on your credit record – a lot of insurances don’t?
Jayce says
I have no idea if I made a payment or not, I don’t ever recall having this account, the dates given show a car I used to have but I had a different car at that point, also the bank account used is my wifes and not mine so it’s all very confusing.
There is nothing at all registered for this on Equifax, Experian or anything else I look at
Sara (Debt Camel) says
OK, it sounds as though you need someone to go through the details with you. I suggest you phone National Debtline on 0808 808 4000.
teresa says
Hi if a Credit card debt has been sold to a dent collection company would you credit file state “settled” also would the collecting agency put thie amount as owed to them on your credit file? I paid a lot of debts a few years ago all my credit files state settled including the one in question, l wondering if the original lender would update the credit file to settled and then sell off the debt. Hoping someone will no the answers thanks
Sara (Debt Camel) says
https://debtcamel.co.uk/sold-to-dca/ looks at what happens when a debt is sold to a debt collector
Wunmi Akande says
Hi Sara,
I had an overdraft for Lloyds, from back when I started uni, suffice to say I hadn’t payed it back! Coronavirus hit and I couldn’t go into branch to discuss a payment plan and nobody answered my phone calls. It’s now gone into default, but the strange thing is I never receieved a notice of default from them. Lloyds say that they sent it out in April but I’m absolutely 100% positive I never received one. What can I do to get them to remove the defualt please?
Sara (Debt Camel) says
Could you not send them a message? Surely you could get through to them in April or May on the phone?
There were coronavirus payment breaks but you had to ask for one, it sounds as though you never did?
Fisayo says
Hi Sara,
I have an overdraft with Halifax that defaulted. The date of default on equifax shows 03/11/2014 when I checked it in August of 2019. I went to check it again today on creditwise and clearscore and both showing as up-to-date till February 2020, then missed payment in march and april 2020 and default from May 2020, it therefore look like it’s a new default.
Should I be worried that it won’t come off this November?
Sara (Debt Camel) says
What report are you looking at? Do you still have a copy of that report from 2019?
When did you think you did default?
Fisayo says
Hi Sara,
Thanks for your reply. Yes I have the copy of the report and I do know it was defaulted in 2014
It was an equifax credit report. According to the original default date which is 3rd November 2014, it should drop off my credit report next month.
My concern now is the fact that it is showing as a fresh default from May of this year when I checked my credit report via clearscore and creditwise lately
Sara (Debt Camel) says
And is the debt still with the bank or has it been sold? When did you last make a payment to it? What are the rest of your finances like?
Fisayo says
Morning Sara
By being sold do you mean given to collection agency, if that’s what you meant, I don’t know but I haven’t receive any letter from anyone.
I haven’t pay off the debt it’s still the same as it was in 2014.
I still can’t afford to pay it off once but could set up a direct payment.
Sara (Debt Camel) says
If it is still showing on your credit record as under the bank name it has not been sold to a debt collector.
If the previous default date has been removed and a recent one added, this will not drop off in November.
You can complain to the bank and ask for the default date to be corrected. If they do this now (in practice it may take more than a month to correct this) it will drop off your record next month but they will expect you to start making payments.
As a separate but related issue, there is the question of when this debt becomes statute-barred. That means a debt has gone too long without you paying it or making an acknowledgement of it to be legally enforceable in court , see https://debtcamel.co.uk/statute-barred-debt/.
It can be hard to tell when overdrafts are statute-barred – you could talk to National Debtline on 0808 808 4000 about it. But if you ask for the default date to be corrected BEFORE it has become statute-barred, you will be “resetting the clock” so it won’t be barred for another 6 years.
You may not care if you can afford to make repayments easily. But if you are having a problem with other debts that may not be a good move – it would be better to take debt advice. National Debtline can help you with that too
If you decide not to complain about the debt and just wait a while, make sure you keep that old credit report showing the old default date safe.
Fisayo says
Good morning Sara,
Thanks for your help.
If I decided not to complain now, when will be the right time to complain, will it be after the 3rd of November which is the original default date
Also if I do complain now and ask the bank to change the default to the original date and they do and it reflects on my credit report the following month like you said but the money is not barred does it mean it will keep on showing on my credit report for another 6 years as default
Sara (Debt Camel) says
I would definitely leave it until after the 3 November as that is so close.
But that exact day may not have any legal significance in whether the debt is statute barred or not. Really you want to wait until it is, but the problem is telling when… hance my suggestion to talk to National Debtline.
A debt can be statute barrred and show on your credit report. A debt can not be on your credit report but not be statuite barred.
You have to think of the credit report issue as being seperate from the statute barring.
If the creditor corrects the default date back to what it was – which they should from what you have said – then it will drop off your credit report. Even if it isn’t statute barred.