“This default is destroying my credit score – how do I get rid of it?”
This is a very common question!
It’s sometimes asked when people’s finances have improved and they are trying to clean up old problems on their credit history as fast as possible. Or sometimes the default feels unfair in someway
I will look at various cases to see what – if anything – can be done for each of them.
But first, there is no magic trick that an “expert” can use to do this. Don’t ever pay a firm that says they can sort this for you. Their claims are often exaggerated, they can’t do anything that you couldn’t do yourself.
Contents
The rules about when debts disappear from your credit record
There are three credit reference agencies (CRAs) in Britain – Experian, Equifax and TransUnion. They all apply the same rules about reporting defaults.
How long a debt stays on your record depends on whether the record shows a default date or not. The two rules are:
- a debt with no default date stays on your record for six years from the date when it is settled. This applies whether it was settled in full or partially;
- a debt with a default date stays for six years from that date. You may have paid it in full, made a full and final settlement, not paid anything to it, or still be making payments… none of these matter, the debt is still going to drop off after six years.
So the default date is an important piece of information for you to know. Don’t guess! Check your records with all three CRAs so you know exactly what they say.
Having a debt drop off your r4ecord because the default was over 6 years ago is the same in practice as having the default deleted.
Situations where the default should be removed
I am not saying these will be easy, but these are the most likely cases to succeed.
“I never owed this money”
If the debt isn’t yours, you should tell the lender and ask them to remove it from your credit record. It’s not just your credit record that matters here, you don’t want to be chased for money by the creditor or be taken to court for a CCJ.
“I was never in arrears”
If you recognise the debt but you don’t think you were ever in arrears with it, ask the lender for a statement of account to see where the problem is. You can then check against your bank statements to see if you made other payments that weren’t recorded.
“The lender stopped taking the money”
Sometimes the lender stopped taking the monthly payment by direct debit or by continuous payment authority. You may have assumed the debt was repaid and only found out later a default had been added to your credit record. Here it is the fact that the lender stopped taking the payments that is important – you may be able to get evidence from your bank that you did not cancel the DD or CPS until months later,
“It’s not fair – I only missed one payment”
In this case, no default should have been added as you were never three months in arrears!
Write to the lender, then appeal to the FCA /ICO if the lender refuses to correct it, see the above article about what the default date should be for details.
“A debt collector has added a later default”
They shouldn’t have done this. A debt collector can add a new record, but it should have the same default date as the original lender.
Write to the debt collector and ask them to correct it, and then appeal to the FCA/ICO if necessary.
“The default was added very late”
The rules say that a default should normally be when you are 3-6 months in arrears compared to what your normal payments would have been.
If a creditor has added a default later than this, it should be changed to be earlier. That means it will drop off sooner, and your credit record will be clean sooner.
See “What should the default date for a debt be?” which describes how to get your record corrected. For many people this is just as good as getting the default deleted and it can be a lot easier.
Cases where you have to win the argument to have it removed
“I was never properly informed about the debt”
Arguments can occur between you and a creditor if you feel they didn’t properly write to you about the debt, explain what the debt was or the size of it. Perhaps you moved house and the creditor carried on writing to your old address even though you notified them you had moved – this sort of thing.
If you paid the debt promptly as soon as you know about it, you could ask the lender to remove the default. Pointing out that you previously had a good history of paying their bills on time and that you don’t have other credit record problems can support your argument. You may have more luck going to the relevant Ombudsman rather than the ICO if the creditor refuses.
“The debt isn’t enforceable”
Sometimes this will work, sometimes it won’t.
Sometimes a lender will admit – or a court may decide – that a debt isn’t enforceable because it is statute barred. In this case a default should have been added to the debt more than 6 years ago, so you should ask for the default date to be changed so that it is earlier and then the debt will drop off your record.
When a creditor cannot produce the CCA agreement for a consumer credit debt it isn’t unenforceable in court. See Debts – why, how & when to ask for the CCA agreement for details – this does not apply to all types of debt. Here the debt still legally exists and you owe it even though you do not have to pay it – as a result the default will not be deleted.
“I should never have been given the loan as it was unaffordable”
Lenders should have checked you could afford to repay a loan before they gave you the loan. A loan is only “affordable” if you can repay it without hardship and without having to borrow again or get behind with bills.
If a proper check would have shown that the credit wasn’t affordable for you, ask for a refund of the interest you paid and for any defaults or late payments markers to be deleted from your credit file. See Affordability refunds for info on how to make these complaints for different sorts of credit including payday loans, Provident, guarantor loans, car finance, large bad credit loans and even catalogues.
Hundreds of thousands of these complaints have worked.
Sometimes the lender will only remove “negative information” such as defaults and missed payments. Sometimes the whole credit record will be deleted.
Here is a comment from a reader who made a successful complaint against Satsuma, a payday lender:
I accepted Satsuma’s offer on 2nd January and received the cheque on 17th January. The negative information was removed from my credit file as well which made my credit score jump by 100 points :)
“I was in an abusive relationship”
Many people, usually women, have been pressured to take out credit for a partner or had a joint account with an abusive partner. Financial abuse is now recognised as a serious problem and most banks now subscribe to the Financial Abuse Code of Practice published in 2018.
If you feel the debt and the default resulted from an abusive relationship, I suggest going to your local Citizens Advice and asking for their help to see if the debt could be written off and the default removed.
When it is very unlikely a default will be removed
“The lender agreed to reduced payments but still added a default”
This can feel very unfair, but legally they can do this when the arrears reach 3-6 months.
This applies if you have payments arrangements with one or two lenders or a debt management plan through a DMP firm. See How does a DMP affect my credit rating for more details.
And although you may hate that default, it may actually be better for you than an Arrangement To Pay (AP) marker on your file! A defaulted record disappears after 6 years, an AP marker stays for 6 years after the debt is settled.
“The lender is adding a new default every month!”
This may make your credit report look dreadful but it is normal and it doesn’t matter:
- the later defaults don’t make your credit rating worse because lenders’ scoring systems only look at the first one;
- the debt will drop off 6 years after the first default, the later ones don’t affect this.
“I agree with the default, but six years is too long!”
If you just had a temporary problem, perhaps you lost your job, or couldn’t work when you were unwell, but after a year you were sorted and back making payments it can seem very hard for this black mark to stay on your credit file for so long.
But there is nothing you can do to make the default go away sooner.
You can add a Notice of Correction to your credit file to say why the problem happened.
As the default gets older, some lenders will be less worried about it. But for some creditors, eg many high street mortgage lenders, any default, even five years ago, may result in a rejection.
Usually the best you can do is settle the debt as soon as possible. This doesn’t get rid of the default and doesn’t improve your credit score, but it will mean that more lenders are willing to give you credit.
When the lender has gone bust and can’t be contacted
This is a special case.
If the lender will not respond to the Credit Reference Agencies, then you can ask the CRAs to “suppress” the credit records. If this happens, although the records are still there, they will not be shown to any other lenders making a credit check on you.
Read How to correct credit records if the lender has gone under in detail and see if you think it can help you.
Don’t try to do this if the lender is still going. Or if it is the early stages of an administration – then it is better to put in a claim in the administration to get a refund for unaffordable lending. If your claim is upheld, the default will be deleted, and often the administrators just delete the credit record as it is simpler.
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Deb says
Hi, All of my defaults have dropped off my credit file. family kindly helped me make offers to all of my creditors. All but one accepted my offer – Link. I can deal with that one later. That’s not the real problem..
We have now made all of the payments. I’m thinking that this gives me a new start to rebuild my credit. But, Nationwide have now re-added the default to show it as partially settled. I thought that from reading your posts this could not be done? The debt is more than 10 years old.?
Sara (Debt Camel) says
It shouldn’t. The original default date should not be changed. Complain.
Deb says
I have complained this morning to Nationwide, they said that this is due to my partial payment to clear the account and they are allowed to re-add this to my credit file. I’ve found my old credit file and this was first added as a default in 2011 and continued for 6 years. Everything that I have read on his forum suggests that after 6 years it drops off and does not re-appear, whether you partially settle or continue to pay a portion each month. I’m devastated. What can I do??
Sara (Debt Camel) says
Send them a complaint in writing. This should not have happened. Say the case will go to the Ombudsman if they do not reinstate the previous deafult date in 2011, which means the record will drop off your file.
Gavin says
Hi, I have a loan with Swift Stirling who are to be closed down by the liquidators on the 06/11/2020. Swift Stirling sent me a email stating no further payments will taken from the 06/11/2020, so if you do not pay the balance by this date you credit file will notified to default payment. This is unfair as it can take upto 6 years for defaults to be removed from your credit file and it is not my fault Swift Stirling went into administration before I could repay my loan. Is there anything I can do to remove the default due to this being the lenders fault and not mine?
Sara (Debt Camel) says
did you have previous loans from them? What date was your default?
Tom Smith says
Can you please help. I had two direct debits bounce by my bank for car finance. Payments were due 15th of the month, I effectively missed payments on 15th May and 15th of June. I then paid all the arrears by 28th June, but I’ve been issued with a default for £20k plus. Does this seem fair? Do I have a chance of removal?
Sara (Debt Camel) says
No that doesn’t seem fair. From what you have said, you were never 3 months in arrears. I suggest you put in a complaint and ask for the default to be removed. You can take this to the Finanical Ombudsman if they say no.
Nil says
Hello Sara
I have 2 CCJ’s on my account from 2016 and 2017. I recall paying those when I receievd the letters and set up a payment plan with the companies. Is there any way of getting these removed as I didn’t think they would go on my account if I paid the CJJ and came to a repayment plan with the company.
I was made redundant twice and wasn;t in a very high paying job at the time and fell behind. Is there anythig I can do to get these removed? I would like to get a mortgage at the end of next year and think these will make it very difficult.
Sara (Debt Camel) says
A CCJ will stay on your credit record for 6 years unless it is paid in full within 30 days.
Setting up a repayment plan will have stopped the lender trying to enforce the CCJ (through bailiffs or deductions from your wages) but it doesn’t get it removed from your credit record.
You will find it extremely difficult to get a mortgage at a half way reasonable rate with 2 CCjs I am afraid.
Nil says
Does it make any difference that they were for small amounts around £1000?
Sara (Debt Camel) says
You would need to talk to a broker about that as it will be lender by lender. For many high street lenders the answer is probably No, it doesn’t make a difference. Especially at the moment.
Dan says
I had a joint loan with my ex wife. The monthly payment came out of my account, and no payments were missed for 5 years. With two years still to go to pay off the loan, my ex filed for an IVA without my knowledge, causing the loan to be passed to the collections team and the loan to be defaulted. This is now on my credit file for 6 years. Neither my ex nor the bank informed me that the loan was being passed to the collections team so it came as a complete shock. My ex went through an agency to process the IVA, who contacted the bank to stop the direct debit from my bank account (again, without my knowledge). As soon as I found out about this, I paid off the loan in full. However the default remains for 6 years. Do I have any case for having this removed from my credit file? My credit score is impeccable and I have never missed a payment on any debt. I’m worried this will affect a future mortgage application. Thanks in advance for any advice.
Sara (Debt Camel) says
The IVA firm told your bank to stop a payment? Why did your bank agree?
Dan says
To be honest, I have no idea. The IVA firm was working on behalf of my ex, and I only realised there was an issue when the monthly direct debit did not come out of my account as usual.
Sara (Debt Camel) says
It’s more likely the lender stopped taking the DD then, not the bank cancelled it.
Have you put in a complaint to the lender?
Dan says
I may have been incorrect to say the IVA firm requested the bank to stop the direct debit, but they did contact the bank to inform them of the IVA and therefore the loan was passed to the debt collections team (without my knowledge). Apologies for any confusion caused. It’s a lot to get my head around. Thanks for your help
Dan says
Yes I have put in a formal complaint and waiting to hear back. However, the bank have stated over the phone that they had no responsibility to let me know of changes to the loan because the other person named on the loan (my ex) had requested changes via the IVA firm.
Sara (Debt Camel) says
OK so your argument is that you had joint and several liability for the debt, your ex’s IVA did not remove your liability and so the bank should have continued to take payments from you. It is unreasonable to default you when you were willing and able to continue with your contractual repayments.
Take this to the Financial Ombudsman if the bank doesn’t correct your credit record.
Dan says
Thank you very much for your help Sara, I will do this. Your advice is really appreciated.
Dan says
Hi Sara, I just wanted to respond with an update in case anybody else finds themselves in a similar situation to me. It’s been 8 weeks since I complained via the bank’s online complaint form. However I also sent the same complaint to the bank CEO 4 weeks ago. Yesterday I received a phone call from a member of the exec complaints team. They are removing the default. I’m elated!
Funnily enough, I received a text message this morning from the original complaints team saying that, as it’s been 8 weeks, I can take my complaint to the Financial Ombudsman as they haven’t been able to reply within the 8 weeks.
So if I hadn’t have complained higher up within the bank, I would not be in the position now of knowing that the default is getting deleted soon.
Sara, thank you for your advice regarding this matter. It was really appreciated.
Chris says
Hi, shot in the dark here but was wondering tou could help. I had a default from a store card three years ago. It was a buy not pay 12 months later. My faylt it was something i had forgotten about. I had joined the military just before that 12 month period and had to go away for three months basic training and was not at my previous address so could not reply or correspond to any of the letters that was sent. Do you think this is something i could ask to be removed as i had paid as soon as i found it when i was on leave and travelled home. Cheers
Sara (Debt Camel) says
You could ask as a gesture of goodwill, serving your country etc etc. But technically the default if correct.
Blooming says
Hi Sara
Very good news to share. I wrote to Barclays and they have responded with a lengthy 2 page letter. They were apologetic due to the delay in responding to my complaint but they supported my complaint and as there never was a default added to the account, Link had proceeded to add one in line with their procedures but they will ask them to remove their entry. Barclays too will be removing their entry but it should take about 8 weeks. They also noticed that interest had been charged for a couple of years while I was on a DMP so they would be refunding me this interest along with an amount for the delay in responding to my complaint. Xmas has definitely come early for me and i only have you to thank for this. Thank you so much
Blooming
Sara (Debt Camel) says
Well done!
Blooming says
Hi Sara
Checked all 3 CRAs this morning and all traces of link and Barclays have been removed even in the closed accounts! Mu credit score has lept up as a result of this. Thank you so much for all your help. Really, really grateful x
Graham says
On the 28th April 2017 my Step Father was taken ill, I temporarily relocated from my home in Wales to Dorset to care for him. I used my Lloyds Debit Card at a Pay@Pump, this caused the current account to go into an unauthorised overdraft of £33.10. I returned to Wales on 25th November 2017 to find several statements from Lloyds showing the overdraft (£33.10) had escalated to a debt of £221.01. A default notice and account closure letters were there to greet me. I wrote to Lloyds debt recovery unit explaining and complaining. The Debt was then transferred to their collection Company Hoist Finance. Fast Forward to 2020 and Covid-19; I run my own small business which did get adversely affected by the original lockdown in April / May 2020, I applied for an overdraft and then a CBIL, both refused. Having explained to my business bank manager this situation they agreed to progress the CBILS and advised me to pay this account and then get the default removed. So I paid in full, and sent a further registered letter to Hoist Finance / Robinson Way asking them to confirm it is NOT in their power to remove this default from my credit record. The reason I want them to clarify this point is I am in the process a raising a detailed complaint with the Financial Ombudsman and need to know if this should be addressed solely at Lloyds or applied to Hoist Finance / Robinson Way. Any comments on my situation would be gratefully received.
Sara (Debt Camel) says
I suggest you complain to Lloyds. You may find this hard to win though.
Nigel says
If you remember I had a complaint with nationwide on 21 October 2020 to remove a default I added to it on 29th October.
Most complaints are dealt with in 5 days
Why nationwide taking so long, when they have all the evidence from call,I understand they have 8 weeks
I no I have no option but to wait, it’s just that it’s stressing me out
If you remember all they need to need decide weather to remove a default, surely they get complaints like this all the time
They didn’t even say, it’s because there busy, they said they haven’t been able to make a decision and hope to by first 10th November, now sent a new letter out saying they hope 28th November I apprictiate at least there not keeping me in dark.
If it’s taking long time does that mean better chance of success
Sara (Debt Camel) says
I don’t think your case is that simple. I doubt that taking longer means you have a better chance of success – it either means it hasn’t been looked at or that it is complicated.
Nigel says
Thank you, can I ask what could be so complicated, regarding removing a default
If they messed up remove it, if not explain why they didn’t.
For example if you worked for them I’ think you would be able to make a decision straight away.
Sara (Debt Camel) says
As I said before:
“You can try to complain and say this unfair, they never told you about the default, they say they should never have given you a payments holiday and you are happy to set up a payments arrangement if they remove the default. You may not have a strong case, but it’s worth a try.”
Nigel says
Which I have done plus more, quotes form there and fos website
I think I have a strong case how come you think I don’t
Sara (Debt Camel) says
I said it’s not simple.
They are not obliged legally to tell you about adding a default. It isn’t clear to me if a payments holiday was in your best interest. Anyway a lender wasn’t obliged to consider in detail if one was before giving it. I have no idea what the phone conversation record shows.
This isn’t me you have to convince and there is no point in asking me any more questions about this.
John says
Hi Debt Camel
I bought a house in May 2017; prior to moving in, we notified Bulb Energy that we wanted them to take over the existing energy supply (from First Utility – now Shell Energy). They did this in June 2017 and I paid my first Bulb bill on the 23rd of June.
Bulb liaised with First Utility for the account to be closed (they could do this as I was not in arrears etc – had never had an account with them before. I never received a final bill from First Utility/Shell yet, in October 2017 I was contacted by a debt collection agency for £81.70 which was claimed for the final bill (never issued). I immediately called First Utility and asked that they issue me the bill so that I could see what the usage was and if it tallied with my final readings when we completed. They didn’t issue it for 2 months and when they did I paid it immediately. Yet I was given a default as they had instructed the debt collectors and when I appealed I was told that they couldn’t remove it (even if they wanted to) as I had spoken to the debt collectors and therefore the default was ‘good’.
Does this sound fair? I mean, an ‘inherited’ utility account, which I immediately switched from and they never issued a final bill which I then got chased from and as soon as I was I engaged with the company just to be told ‘non’.
Thank you,
JP
Sara (Debt Camel) says
No it doesn’t sound fair at all. Have you spoken to Bulb about when they took the account over?
John says
Bulb took the account over on the 23rd June yet First Utility maintain that they were supplying until the 30th June – yet I have a bill/statement from Bulb showing standing charge and usage since 23rd June.
Sara (Debt Camel) says
I think you should take this complaint to the Ombudsman. Your local Citizens Advice can help with this.
John says
Hi Sara
I had actually raised it again with Shell and, miraculously, they have agreed to remove the default from my credit files and this should be done in the next 2-5 days.
Would you have any idea of the increase I may see in my score for a default being removed which, as of today, is 2.5yrs old?
Thank you so much for your advice!
Sara (Debt Camel) says
See https://debtcamel.co.uk/credit-score-change/ which gives some rough numbers but it depends a lot on the rest of your credit record.
Sarah says
Hi Sara. I have a question please. Does a lender (in my case, Halifax) have a legal obligation to send a notice of default (i.e. give warning that they will default my account if I don’t take action) before a default is placed on my account? I am asking because I did not receive any warning and I would have settled the debt immediately if I had been made aware. This is in relation to a joint loan, and I am unaware if my ex partner received any notice. Thank you.
Sara (Debt Camel) says
Who was paying the debt, you or your ex?
Sarah says
The monthly payment came out of my account every month and he would send me his half every month. The loan was in both of our names. He must have got into some financial difficulty because the loan was defaulted. However I don’t know any further details as we aren’t in contact. If the bank had given me warning about the default then I would have settled the debt to avoid the mark on my credit file (which has been impeccable until this point) :(
Sara (Debt Camel) says
So did they stop taking the debit from your account? Or are you saying you had made all the payments to the debt and they still defaulted the account?
Have you asked them why the account was defaulted?
Sarah says
Hi Sara, yes they stopped taking the payment. I didn’t know why until I rang them and they said the debt was passed to the collections department. My ex has run into financial problems.
Sara (Debt Camel) says
You need to send them a complaint and ask why they stopped taking payments. Ask them to remove the default as you did not stop paying them, they stopped paying you.
Sarah says
Thanks Sara, I’ll do that. Fingers crossed they will remove the default.
Coral says
I opened a student overdraft with Santander back in 2012, they passed my details onto a third party debt collector which I am paying off. Since then they are continuing to default me which is ruining my credit score. Are they allowed to do this? Can you advise a number of who I can call to speak to to seek advice on how to improve my credit score. With this also I have been out of the country for the last 4 years which means I’ve not taken any credit out in my name. Currently not eligible for a credit card, phone contract etc and would like to get my score up to change this. When looking online I am completely overwhelmed with information as I really don’t understand how credit scores work or the right person to speak to.
Sara (Debt Camel) says
Did you carry on making payments while you were out of the country?
Are you sure the debt shows as defaulted, with a default date? What is that date? Or does it show as having missed payments?
Coral says
Hi, thanks for getting back to me. Missed payments whilst I was away but eventually set up a payment plan with a third party debt collector. On clear score it is telling me that my Santander account is ‘in default’ which was updated in October 2020, no missed payments for a long time so I’m totally confused. Do you have any advise on the next steps to take?
Sara (Debt Camel) says
I suggest you look at your Equifax statutory credit report, not Clear Score. See https://www.equifax.co.uk/Products/credit/statutory-report.html
stella says
Npower as put a defunct on my credit report despite the fact that i have paid the full amount in July 2020 but my credit report is still showing the defunct amount. Because of this i am not getting mortgage. Please i need advice
Sara (Debt Camel) says
=Was your July payment just paying arrears from previously, or have you never missed a payment to them?
How large a % deposit do you have a for a mortgage?
Steph says
Hi, I’m in the process of applying for a mortgage and have run a credit search with Check My File. I have spotted two things that are frustrating.
Firstly, EE have added a default notice (for 5 months of arrears). I had closed my account with them and moved my phone contract over to 3, I’d paid my final bill and when closing my account asked if there was anything further they needed from me, to which they said no. A few months later I received a letter to say I had an outstanding balance so called immediately and paid the £18 off (for what I don’t know but was keen to just settle it as I’m really conscious of my credit score). It’s really unfair that this is listed as a default when I was unaware of it and paid as soon as was notified, do you think they will remove this?
Secondly, I had a joint account with an ex partner when we lived together. To my knowledge the account was closed when we parted ways (I had to sign a document to close this and he said he would sign and hand in to the bank). There is no reason for me to believe this wasn’t actioned. I’m still financially linked – can I get this tie removed from my record?
Thank you.
Sara (Debt Camel) says
How old was the EE default?
is the joint account appearing on your credit record as open or closed?
Steph says
The EE default is from 2018, it’s showing as 5 months in arrears if that makes a difference. The joint account is showing as closed, thank you.
Sara (Debt Camel) says
if the EE record shows as 5 months in arrears, that is not technically a default. It should be showing now as closed with zero owing?
Steph says
It is showing as zero yes. You’re right it is arrears rather than default but still showing as adverse credit on my record. Thank you.
Sara (Debt Camel) says
OK so you can ask EE to remove the “in arrears” marker because you asked them if there was anything more to pay and they said no. Arrears arent as bad as a default as as the amount is tiny, I would hope it wouldnt cause a problem for a mortgage application. Go through a good mortgage broker not direct to a bank.
re the joint account, this article says how to ask the credit reference agencies to sever the link with your ex: https://debtcamel.co.uk/splitting-up-finances/
Steph says
Thank you so much, I will get on to it!
Ben J says
I had an informal overdraft reaching £500 that I left for 6 months with hsbc a couple of years ago. at the time I had a serious gambling problem and had requested on two occasions to not have the ability to go into an informal overdraft for this reason, to which they refused. the full informal overdraft was gambling deposits. I repaid the default once I realised they had defaulted me and sent it to a debt collector. Can this be removed as I pretty much warned them I had a gambling problem at the time and didn’t want the unnaranged overdraft for that reason? Now with another bank and free of gambling
Sara (Debt Camel) says
Yes, that sounds a good reason for a complaint. How did you tell them you had a gambling problem – phone, email, secure message…
Ben J says
I believe it was a secure message
Charl says
Hi, I am currently looking at getting my first house I have just applied for a very small mortgage but it has been declined due to my credit history. I had a student overdraft with Barclays of £1750 and straight after Uni I went into the bank to let them know I would be moving abroad and working away. I was never notified about my student overdraft and being quite frank completely forgot about it as I hadn’t been contacted six years down the line I come back home and haven’t heard anything until I apply for my credit report. The account has been defaulted for £2300, at the time I took it out I was 18 years of age and unaware of the circumstances or that it would turn into a normal overdraft with interest, I was never notify of the debt later on and it is only now that I am feeling the pinch. At that age I didn’t realise these kind of things would stay on my credit report for six years, I was young and clueless. I have phoned Barclays and they said the don’t have the account on file. Do you think there is a potential of getting this removed? Thank you.
Sara (Debt Camel) says
when did you go abroad? is there a default date showing on the credit record?
Charl says
I went abroad in 2014 and actually opened the account in 2011, on the default account it says 2018 thank you so much
Sara (Debt Camel) says
Unless you told Barclays your address, it may not help you to say they never told me about the student account going into arrears.
You could send Barclays a Subject Access Request asking for a copy of all the data they have about you : https://www.apply.barclays.co.uk/forms/gdpr?execution=e1s1
I don’t know what that will say, if anything, about the visit to your branch when you told them you were going abroad.
But I don’t want to get your hopes up about this – there is no clear reason at the moment why they should remove this default,
Brendan says
Hi Debt Camel,
Thank you for all the greatly informative information you provide on your website. It is my go-to website for financial advice. I was just wondering if debt collection agencies have the power to remove defaults if you can convince them that the loan was given under irresponsible lending? The reason I ask is that I have had several payday loan, credit card and a store card list defaults against my credit file. I have settled most of the accounts and am in the process of coming to settlement agreements with the rest for a discounted rate. For instance, I have a Very catelogue debt that is being dealt with by Lowell. Would I need to ask Very to consider removing the default or could Lowell do this? I’m hoping I can make a case to the companies before consulting the Ombudsmen. Most of the debt is from 2016/2017.
Sara (Debt Camel) says
You need to complain to Very not lowell. If they uphold your case and remove negative markers from your credit record, Lowell will have to too.
Brendan says
Many thanks for the quick response. I will get writing!
Ryan says
I have a question. I had a default against me from Eon. I told them I wouldn’t pay debt until they removed it. They refused to do so. However, in past couple of weeks they have sold my debt to lowell and marked my account as closed. Does this mean the default is gone and I can now settle with Lowell? Since Eon marked account as closed it is not showing as default
Sara (Debt Camel) says
Is there still a default date against the debt? A default is nit normally removed when s loan is sold. When the Lowell debt is added to your credit records it will normally have a default on it.
Ryan says
The Lowell debt hasn’t yet appeared on my file just the Eon account closed. Perhaps I am too early. However, in theory Lowell would now have control over the default and if I settle immediately they could remove it. Or is that wrong? Thanks for help
Sara (Debt Camel) says
Have you checked credit records with all three credit reference agencies?
Lowell should not remove a default just because you offer to settle it now. I suppose they may, but under the credit reporting code they are not supposed to.
Emel says
Hello, I moved out of the house that I was renting in December 2019. I was going to spend sometime abroad. I have closed all my payments with electricity, gas, Virgin Media. I have paid all the last payments and returned the Broadband equipment to Virgin Media, as well. 11 months passed. I have never received any phone call even though I have used the same UK phone number during all this time, no e-mail but when I applied for a mortagage in November 2020, I’ve been refused on the ground that I have a default payment. I have registered on Experian to find out what this default payment was and I’ve found out that it was a £15 to Virgin Media, unexplained on what grounds. My old landlady has not informed me of any mails I’ve received either. I have paid this amount right away but it has largely decreased my credit score and prevented me to apply for a mortgage. Since I was not properly informed at all about this payment, how can I have it removed from my credit score? Thank you in advance, Best wishes,
Sara (Debt Camel) says
Have you asked Virgin what the charge was for and why you were not informed about it?
Nigel says
It’s good news default will be removed loans rewritten.
Just one question I had, I was in arrers during the payment hoilday, so they putted missed payments every month I was on payment hoilday.
They won’t remove that as I was in arrers, is it worth speaking to fos to get that removed…as I wasn’t aware.
Or slim chnace of sucess
Sara (Debt Camel) says
Well persevered.
You were in arrears when the payment holiday started, weren’t you? I don’t think FOS will say they should remove those.
Nigel says
Sorry they maybe miss understanding yes I was in arrers, they can keep them on but during my payment hoilday every month it shows missed payment on my credit file, that can’t be right I didn’t miss them I was on payment hoilday
So if you in arrers every month they put miss payments on credit file until arrers are cleared? Even if you pay Monthley , I never knew that.
Shall I clarify in the email or will they just invite it now because I have to email them to rewrite anyway
Sara (Debt Camel) says
So if you in arrers every month they put miss payments on credit file until arrers are cleared? Even if you pay Monthley , I never knew that.
Yes that is right. Once you are say 4 months behind, your credit record will continue to show 4 months behind unless you start paying the normal repayments AND pay off the arrears. If you pay off one month of arrears, your record should be changed to showing 3 months in errears.
Taj says
Hi, all of the defaults have dropped off my file and I have no CCJ’s but my Credit Karma rating is only 541 or of 710 and my Experian score is 726 out of 999.
How can I improve my rating?
Sara (Debt Camel) says
What shows now on your credit record? Do you have credit cards where you are using a lot of the limit? Any missed payments?
Taj says
All of the defaults have now dropped off. Nothing is showing as being reported currently on my credit file. No CCJ as well.
I don’t have any outstanding debts showing on my file. What’s the best way to now improve my rating?
Sara (Debt Camel) says
A good option is LOQBOX if you can save asset amount every month for a year, see https://www.loqbox.com/en_gb/. It’s safe and you end Up with a better score and a small nest egg.
If you dont have any spare money to save, then you can look at getting a credit builder card, but they are very risky and many people end up back with more debt problems and worse score… see https://debtcamel.co.uk/credit-builder-cards/
Dale says
I had a loan with a lender but struggled to make re-payments because of the date of the DD set up. I asked multiple times for them to change but they said i would have to catch up with missed payments before they changed the date (Which i couldnt afford to do). This led to another missed payment a few months later and they sold the debt to another company. I now have 4 defaults on my account – Can i do anything? Will the old lender help as they have proof of me trying to rectify the reason behind the missed payment? Any help would be great
Sara (Debt Camel) says
were you just paying a few days late?
John says
Hi Sara – I paid off a defaulted debt to Hoist (ex-Aqua) in July 2018. I have since discovered that Hoist have continued to report this defaulted debt (but with a zero balance) ever since, including the current month. So, even though the debt was settled in full (and with no issues) they still report every month to Experian. However, there are no reports to Transunion since the settlement date in 2018.
I understand that a default sits for 6 years but once repaid in full surely there should be no further reports on the date keeping it live? Every time they report the 6 year period re-starts despite the debt being settled to both parties satisfaction and I feel I will never have a clear credit record.
I contacted them to get this corrected – they ignore the first and second request. I registered a complaint and it’s now on week 4 with no response and this is over and above the original 3 weeks of the initial requests. The relevant department doesn’t take customer calls and I am just going round in circles. I am intending to complain to the FO after the statutory 8 weeks and exhausting Hoist’s complaints procedure.
Am I missing something here or is there any there action I can take?
Any advice you can offer would be great, thank you.
Sara (Debt Camel) says
Is there a default date on the Experian credit record? Was it showing with a D every month?
John says
It has Accounted Settled date 25/05/18, Balance £0.00 credit in use, Current status Default / Ended. For each month just has an exclamation mark on a pink background icon and that is described as an ‘icon account default’. So, not a D but its equivalent – this is the Experian report delivered via the MSE website (as it’s free)
I have four other accounts all settled around the same time and none of them have any reports since the balance was repaid; each one has a final £0.00 report after settlement and nothing since.
Hope that all makes sense and explains why the default keeps being added each month 2.5 years after full settlement.
Thanks
Sara (Debt Camel) says
get the experian statutory credit report from here: https://www.experian.co.uk/consumer/statutory-report.html
John says
Hi Sara – passkey arrived and I downloaded the report. The entries are Account Status Code (8) which defined as “Account is in default. You failed to keep to the credit agreement and have not responded satisfactorily to requests to bring payments up to date. The credit agreement has ended”
This has been reported 24 months running however the report shows full and final settlement has been made 25 months ago.
All other accounts are OK and reporting has ended when settled in full. I have disputed with Hoist, they failed to respond and I am now in week 6 of their complaint procedure – no answer or explanation and I intend to go to the FO after week 8, if that’s the correct procedure? Thanks in advance for any advice you can offer.
Sara (Debt Camel) says
So is the balance showing as zero?
what is the default date?
John says
The default date is 25/07/18 and the balance has been showing as zero since November 2018 when the final payment was reported
Sara (Debt Camel) says
Well if the balance is zero and there is a default, it is going to drop off 6 years after the default date. I can’t see why Hoist are continuing to report it but as a matter of practicality it is unlikely to harm be harming your credit score.
John says
OK understood. My only worry was that the 6 year period keeps re-starting every month they report again but if that’s not the case then I guess it is OK. Thanks again for all your help Sara
Gemma says
Hi I’m hoping someone can help me at my wits end!
I defaulted on a quick quid loan in 2014 and have been repaying via a dmp ever since. Come July the account fell off my credit file as expected but then in August they added a new record for the same debt showing a 6 month arrears marker. It was my understanding this should be removed totally as the account isn’t active barr repayment through dmp. I have complained and they have refused to remove it what should I do. ( the account is closed simply being repaid ever since the default in 2014. tia
Sara (Debt Camel) says
have you sent in a claim for unaffordability? if you win that, the credit record will be wiped clean.
do you have an old credit report that shows the debt with a default date on it?
Gemma says
Hi Sara
I tried the claim for I affordability and they rejected it :(
I don’t think I have a copy of the old report either as I just use the free online access via money saving expert.
Sam says
Hi Sara,
Wondering if you can help.
I had a contract with t mobile in 2016 which finished Jan 2017. I paid for this with direct debit. Unknown to me when my contract finished they generated a final bill but cancelled my direct debit. I still owed around £15 but was never told (never received any letters/requests to pay this from t mobile).
In March 18 I receieved a letter from Lowell who had bought this debt requesting I paid it, I requested proof etc and when I realised that it was correct debt I paid by May 18. They added a default for the debt in 2017.
I’ve asked them to remove it as I was never told about the orginal debt and when I was made aware I paid within 2 months.
They’ve said no because ‘We have a duty of care to show an accurate reflection of your previous financial transactions’.
Do you think this is fair/should I go any further with this as just £15 is tanking my credit score.
Thanks,
Sam
Sara (Debt Camel) says
they generated a final bill but cancelled my direct debit
who cancelled the DD – you or T mobile?
Sam says
Hi Sara,
I believe t mobile.
Thanks,
Sam
Sara (Debt Camel) says
That would be unusual – can you ask your bank to confirm it? If they didn’t take the DD then it is totally their fault and they should remove the default.
If you cancelled it, then you have to make the harder argument that it’s not your fault as T-mobile neve told you there was money owing.
Jake says
Hi,
I have previously had a few of my credit accounts fall into an arrears balance, and unfortunately end up in a default position, due to changes in circumstances.
I had contacted all of the companies relevant parties after becoming aware of the defaults to arrange suitable payment plans, to clear the balances on these. At present, these companies are showing on my credit file as being defaulted although payments have bene being made for around 5/6 months now and I thought that once payments were being made the credit reference agencies would be notified accordingly? Is this not the case, or would these continue to show as in default until the balances are paid off?
Thanks!
Jake
Sara (Debt Camel) says
The default remains for 6 years after the default date.
When will the balances be paid off?
Jake says
Hi, thanks for the update on this! Currently I have payments plans and Direct Debit payments in place to have all my outstanding balances cleared no later than August of 2021.
After the balances are cleared are companies able to make a notice of settlement?
Sara (Debt Camel) says
“After the balances are cleared are companies able to make a notice of settlement?”
I’m not sure what you are asking about? A “Notice of Settlement” is not a standard term.
kelly says
Hi,
I have a default from 30th april 2014 and has been updated on the 8th june 2020. Will this drop of my report? Thanks
Sara (Debt Camel) says
When you say “you had a default”, do you mean you missed payments? Or that the creditor added default date to your credit record?
What was the change in June 2020?
What credit report are you looking at?
kelly says
Hi I’m looking at clear score and it was scottish power but they put un the meter wrong and nothing ever came of it and I have now checked my report as I’m going to apply for a mortgage and seen this. Default date is 2014 but it says updated june 2020 thanks
Sara (Debt Camel) says
I suggest you look at the Equifax statutory Credit report as it is often clearer about what had happened than Clear Score. https://www.equifax.co.uk/Products/credit/statutory-report.html
Maria G says
Hi Sara,
I have 3 defaults from 2017. I’m aware these will drop off after 6 years. Will that still be the case if they aren’t paid ? After the 6 years they have dropped off and are still unpaid do I stand a chance at getting credit at better rates ? Even a mortgage perhaps ? Thanks
Sara (Debt Camel) says
Are you making any payments to these defaulted debts?
Maria G says
Hi Sara, no I’m not making any payments to these debts
Sara (Debt Camel) says
The debts drop off even if you haven’t paid them.
If you are NOT making payments to these debts it is highly likely that at least some of the three creditors will go for a CCJ which will wreck your credit record for another 6 years. CCJs are worse than a default,
Not paying them is an extremely risky thing to do, see https://debtcamel.co.uk/no-calls-or-letters-about-debt/
Maria G says
Hi Sara, thanks for the information. At the minute my finances are not in great shape and I’m working hard to get this sorted. I’ve just read the article you suggested. So I would think I’m best off offering the debts token payments for now until things improve. How long can I offer these for ? Will the defaults still fall off after the 6 years if I’m still offering these token payments ? Thank you
Sara (Debt Camel) says
yes the debts fall off even if you are making token payments.
There is no theoretical limit to the time you can make token payments but the debts obviously never go away. And even when they are not on your credit record they will prevent you getting a mortgage as the lender will see the token payments on your credit record. And if you stop those payments the creditor will go for a CCJ.
Do you have a realistic chance of being able to make more than token payments within a couple of years? Not by winning the lottery :)
Maria G says
A lottery win would be very greatly appreciated! :)
I’m hoping that within a year to 18 months ill be able to make full and final payments to all creditors. This will be better for future mortgage applications I’m assuming ? Thank you for your help.
Sara (Debt Camel) says
Then token payments for a while sounds like a good idea.
TITTO says
TITTO says
December 13, 2020 at 9:57 pm
Dear Sara, I am coming back to you for help, after the Great suggestions you gave me the last 2 years, that help me a lot with a guarantor loan. Now I have a problem with a personal loan, that I took few years ago with Nationwide, that I also have a bank account with them. Due coronavirus, I am furlough from April and i had 6 months break for this loan. At the end of September, I wanted to start to pay again the loan, but I have ask them to extend the loan term , so I could pay less money monthly of what I use to pay 333 pounds x month, but they did not accept , so i am now default on the loan , with problems on my credit score . They have put me on Nil payment plan, to support me. I really did not want go default, and touch my credit score and also , when I took the loan I had few other debts ,but they gave me the loan easily and also I was receiving letters to incourage me to top it up, that I did without any problems. I wonder now, asking you if it is worth to go to FOS to complain about those thing. All the best. Regards
Sara (Debt Camel) says
If you couldn’t go back to normal repayments, then yes, this would affect your credit score.
Do you have other debts now as well as this one? Can you afford those?
How affordable was this Nationwide loan when you took it out?
TITTO says
Dear Sara, I have offered to pay half of the monthly payment, but as I have other debts they told me, that they would not accept and they put me on nil payment. The loan was offered by them to me, even if I had other debts, and also they were offering easy top ups.
Sara (Debt Camel) says
Your credit score would be damaged just as much if you had paid half – it sounds as though Nationwide has done you a favour here – I think you should talk to StepChange about a debt management plan for ALL your outstanding debts. getting debt-free is more important than worrying about your credit rating!
Noeline says
Hi,
I had a default of £13 with virgin media after ending my contract with them. All through my time with them, I paid my bills on time and only found out about the default recently which I have paid but this has impacted negatively on my credit score. Please I need your advise on how to resolve this.
Sara (Debt Camel) says
You haven’t given any reason why the default is wrong. So you just have to ask nicely and point out this was an oversight, you had a spotless credit record and you have repaid it as soon as you found out.
IF this doesn’t work, you could try emailing their CEO lutz.schueler@virginmedia.co.uk, but don’t do this first, try the normal customer services first.
Adam says
Hi I have had a letter from Barclay card stating that I am due a refund because they set my credit limit too high. I was in a payment plan with them which I have now paid off but it has been recorded as a default on my credit report. Is there any chance of making them remove the default of my credit report because they messed up my credit limit?
Sara (Debt Camel) says
when was the payment plan paid off?
how large a refund have they offered?
Adam says
Yes it has been paid off in full roughly 2 months ago . They refund was for £600
Sara (Debt Camel) says
OK so at the moment this will drop off your credit record 6 years after the default date – when was that?
If you get the default removed, you also have to ask for the payment arrangement markers to be removed, otherwise the debt with the payment arrangement will be on your credit record for 6 years from the settlement date, which was very recent. Although a default is worse than a payment arrangement, the default would at least drop off first.
You can ask for this to happen. So far Barclaycard don’t seem to be very co-operative about agreeing. You may need to send this to the Financial Ombudsman to look at if Barclay card say No.
Adam says
The default date is 30 july 2019. Is there a template letter available I can use to send to barclays.
Thank you for all your help and advice
Sara (Debt Camel) says
no, these are all very individual cases, you need to say what happened, why you think this is unfair and what you want Barclays to do to put it right.
Charles Muambi says
I took out a car finance back in 2015 while working as self employed being paid by commission. The affordability was never checked all they requested from me was one month Bank Statement. I honestly wanted a car worth £7,000 maximum. However, I find myself given a car worth over £12,000. I paid the loan for two years until the day I was unable to afford the repayment. The car was repossessed because I was £1995 in arrears. Two years later, I received a £25 check from the lender saying I had over paid the loan. Surprisingly I have checked my credit file to just find out that that loan account has been put down as default with £4116. I do not understand why this has happened as I never received a letter informing me about this. I have tried to login and the account is closed.
I have to mention that by the time the car was repossessed I had already paid more than 50% of the loan more than £7,400.
Sara (Debt Camel) says
I suggest you ask the lender why this debt has now been added with a default when you have never been contacted about it.
Sam Auty says
Hi,
Scottish Power have recorded a default against me and are not being helpful for my request to remove it, despite admitting an error to not setting the account up at the time the gas meter was installed.. They have asked me to depute it via Transunion. Would you suggest I do this?
They fitted a gas meter in December 2019 in a rental property that I own, but it was only in October 2020 that I realised when my tenants moved in (it was previously unoccupied) that they did not set up my account. The account was therefore set up in October 2020 and the balance paid in full (£450) at the end of November 2020 to cover gas charges since Dec 2019. In November 2020, a default was recorded against me.
I there believe this an error on their part because I was never more than 3 months in arrears. Am I correct?
Sara (Debt Camel) says
I think you have a case.
Telling you to take the dispute to TransUnion is absurd – they will just refer it to back to Scottish Power.
Have you sent SP a formal complaint which has been rejected?
Sam Auty says
Many thanks, Sara.
I’m glad you think I have a case. I also thought it was absurd to take the dispute to TransUnion.
At the time of writing this morning, I had not sent SP a formal complaint. I now have, and I am awaiting a response. If they reject the complaint, please could you advise me where I could go next? Many thanks, Sam
Sara (Debt Camel) says
if they reject your complaint, I suggest you first go to their CEO (keith.anderson@scottishpower.com)n and point out how unfair this is. But don’t do this now, wait for their response as you may want to quate some of that.
Sam Auty says
Many thanks, Sara. I will do exactly that and follow up on here.
Amanda says
Hello this is my first post here.
I opened a catalogue credit account on 27/10/2014 which I ran into payment problems in June 2015. I missed 4 payments and then entered into a reduced payments arrangement of which they accepted. I kept to the agreement all the way through, when I made my last payment I asked if they would reinstate my normal payments as I was in a better financial position.
This was the first I had heard that they sold the debt on to Lowell and I no longer owed them any money. The account was closed as settled because it was sold on.
Anyway, I have received several letters from Lowell over the last few years regarding the amount I owed. The last letter I received they were asking for £1600 or they would apply a default, even though I only owed £1108 from the remaining amount.
So, they applied a default for the amount of £1108 on December 2nd 2020.
I asked them for a DSAR and I contacted the original creditors asking for the same. I received responses from both parties.
I have just been updated that the default has been deleted from my credit file with equifax.
Not with the other 2 yet.
I guess my question is was it removed because it should not have been applied? Or are they going to change some information and it will reappear?
My credit file showed 3 years of missed payments with Lowell and then the default.
Help with some advice if possible please.
Sara (Debt Camel) says
Are you saying you repaid the full amount to the catalogue co? Have Lowell agreed you don’t owe any money?
Amanda says
Hi Sara,
No to both questions. I Didn’t pay the full amount to the catalogue because once the payment arrangement was finished, they refused to take anymore money from me as the account was settled by Lowell who purchased the debt.
The outstanding balance was £1108
This was the default amount that Lowell placed on me in December.
They’ve since removed/deleted the entry as of the 17th of December.
I did receive a response from the original creditors stating that the account was not placed in default due to the fact it was sold on and that no outstanding amount was owed to them anymore.
As for Lowell, they were wanting more than I originally owed.
I believe going back to 2017 I did make 1 or 2 payments to Lowell then I stopped.
Amanda says
This is part of the letter I received from the catalogue company in response to my DSAR
We took the decision to sell your account to Lowell as they are a company that specialise in interest free arrangements. We appreciate you were on a plan and had been paying, which we thank you for, however we felt that you would benefit from being with a company who specialise in debt solutions, rather than with us, as we are a retailer who offer credit.
I’d like to apologise that you were unhappy with the way you were treated over this situation, having not been notified personally from ourselves. It was never our intention to cause any offence. The accounts that were selected to be sold were determined by the type of arrangement that was in place, and the outstanding balance.
In relation to the account being defaulted, this was never the case. We sold the account with all the same terms and conditions you had with us. Your credit file would have shown you were in an arrangement and at this point we do not own the account or make any changes. If you have noticed any changes to the account since the sale you would need to raise this directly with Lowell.
Outcome of your complaint
As we never defaulted the account due to the fact you had been paying and a Debt Sale occurred, I can’t agree an error was made at this time and therefore I am unable to uphold your complaint.
Sara (Debt Camel) says
How long was your payment arrangement with the catalogue?
do you know the date the debt was sold to Lowell?
There are three things wrong here.
– it would be better if the catalogue company had defaulted you in 2015/16 – then the whole debt would drop off your credit file in 2021/22. Without a default it will stay for 6 years after the settlement date.
– Even if the catalogue co will not add a default back then, there is a good case for lowell to add a default at the date they baought the debt. Especially if you paid thenm very little after this.
– why has the balance gone up? Someone has been adding interest or charges which should not have happened.
In these sort of tangled situations, it can be hard to know what to do to get the best result.
I suggest that you should do two things now:
1) send the catalogue co (who is it?) a complaint in writing asking them to add a default back in 2015/16 because you were making such a low payment amount. ask Lowell and ask them for a statement of the account from the start of 2015 onwards – this will clarify whether they added the interest and charges or Lowell did.
2) send Lowell a request for a copy of the CCA agreement. See https://debtcamel.co.uk/ask-cca-agreement-for-debt/ for how to do this. Use the exact words on the template letter that post links to. NB you do NOT want to ask the original lender for this, just Lowell – you are hoping this cannot be found as then the debt is unenforceable in court.
Amanda says
Hello Sara and thank you so much for your responses.
The catalogue company was JD Williams/Simply be.
The payment arrangement with JD Williams was for 6 months and the debt was sold to Lowell on the 16/03/2017.
For 3.5 years straight, Lowell was registering the debt as missed payments with all 3 credit reference agencies, until 20/10/2020 when they put a Default on instead of missed payments.
I obtained the CCA (photo copy) of which Lowell sent to me when I asked for a DSAR and it shows how much they paid for the debt and when it was purchased! Which was 16/03/2017.
The JD williams account was opened 27/10/2014 however the CCA copy they sent me showed my Signature and dated 07/01/2015 by myself.
I did ask JD to place a backdated Default but they’ve refused to as the debt was sold on and account was (according to them) settled.
Can I actually upload copies of what I have on here?
I know something is wrong with all this but I think I’m at an end as to what to do next.
As I said in my first post, Lowell have now deleted the default from my equifax file but not the other 2.
I really do appreciate all your help and advice.
Thank you
Sara (Debt Camel) says
So when Lowell bought the debt, how large was it?
Sam says
Hello
Can you please help,on 2015 I was abroad when my house mate used my details to get mobile contract for himself without me knowing about this. After I got back on 2016 and noticed someone been using both my identity and my bank card, when I tracked the payments from my bank card I found out who it was. I just didn’t raised complaint at a time to the provider because I realy didn’t want to put my house mate in trouble, and he agreed to payoff all the bills and the rest of the contract. At the end of contract I cancelled the contract. But the provider send me new bills for few months, I tried to communicate with them but in result they keep saying sorry at first and then send out new bill again. They passed my detailes to debt collector and they put default in my file. I even called the debt collector to pay off the debt and get the default removed but they said they won’t be able to take the default out!!!
Sara (Debt Camel) says
You can’t now argue the first contract wasn’t yours – you should have done that at the time.
Did you cancel the contract in writing? Why does the mobile co (which us it?) say you didn’t?
Amanda says
Lowell paid £812 for the debt on the 16/03/2017
The amount I owed at the time was £1355.00
I made the last payment to JD Williams for the sum of £50 on the 02/02/2017 which was the end of the payment arrangement (this I believe was then sent off to Lowell).
I paid in total to Lowell £197 dated between Feb-June 2018 over 6 payments leaving the outstanding balance of £1108
Rosie says
I had a credit card with Aqua which defaulted with a balance of around £2.5k. This was sold to Cabot while a complaint to the FOS was ongoing re unaffordable credit limit increase. My complaint was partially upheld by the FOS resulting in the balance being reduced to approx. £1.4K. My current credit record shows that Cabot has recorded a default against this debt in Nov 2018. However they haven’t been in touch re the debt since then, therefore I haven’t been making payments. If I just leave this and assuming they don’t contact me, will the default / debt then disappear after 6 years ?
Sara (Debt Camel) says
The debt will drop off in November 2024.
The chance of Cabot not contacting you about it is small though.
When they do, you could ask them to produce the CCA agreement for the debt, see https://debtcamel.co.uk/ask-cca-agreement-for-debt/. Sometimes they can, some they can’t.
Rosie says
Thanks Sarah, on checking my Experian account today it states :
Current Status : Default / Ended
Account Settled : 01/11/18
What does this mean ?
Sara (Debt Camel) says
is that the Aqua debt? or the Cabot debt?
Rosie says
It is the Cabot debt, Aqua debt no longer appears on report.
Sara (Debt Camel) says
it looks to me as though Cabot sold the debt to another debt collector in November 2018.
Mo says
Can I just clarify something please.
1. my original creditors placed defaults on my accounts in 2012,
2. I then go to a debt management charity and agree a plan and pay for 5 years until circumstances changed and I was no longer able to do so – part of this was my creditors were adding interest every month so I was basically standing still!
3. I instruct consumer law barristers to act for me in 2018 and stop the dmp
4. The debts had already been passed to debt collectors by 2018 and 2 defaults were placed on my accounts in 2018 and another 2020 – 3 separate accounts
Is there anything I can do about this?
Sara (Debt Camel) says
What does consumer law barristers say about this? You are paying them every month to help you? What are they actually doing, apart from making your credit record worse?
How much are you paying them? Is any of this money going to your creditors?
How large are your current debts?
Mo says
So I paid them for 12 months from January 2018, the deal was I only pay 12 months and they’ll complete for free if it takes longer. Reality is the debts are still there and they haven’t really done much I suppose apart from getting rid of some really historic ones. The ones that are left are with Lowell and link who are persistent despite being told by CLB that they are unenforceable – I’ve only seen letters. They add up to 10k over 4 debts. 3 of them placed new defaults on my account whilst I’ve been with CLB and not paying – I think the accounts were already in defaults when I signed up with CLB but I can’t be sure.
I’m paying nothing towards the debt and none of the money I paid to CLB went to the debt.
Sara (Debt Camel) says
Who was the original debt management firm you were with? Did you never get a credit report to see how it was going?
Mo says
I was with Stepchange and I had credit reports that showed defaults with all my credit from 2010 to 2017, my issue is that I believe new defaults have been issues when they were already in default
Sara (Debt Camel) says
If you have any old credit report showing a default, you can simply show it to the current creditor who has added a default and tell them to change the default date back to what it was… then the record will disappear from your credit reports. Take the complaint to the Ombudsman if they say No.
If you don’t have an old report, then you need to ask the original creditor for details of when they added a default. If they say they didn’t, then you should ask them to add a default back then, and the current lender will have to do that. Again go to the Ombudsman if they say No.
At the same time you should also ask the original creditor to refund the interest they added to your account while you were in a DMP. See https://debtcamel.co.uk/creditor-wont-freeze-interest/. This us what that firm of solicitors should really have helped you with… instead they charged a lot for sending out bog standard letters that you could have sent yourself for free (see https://debtcamel.co.uk/ask-cca-agreement-for-debt/).
Maureen smith says
Thank you so much, I made information requests to the creditors and found that the defaults should have been placed in 2013 when I was more than 6 months in arrears. I’ve now written to them and 1 creditor has been in touch to agree they were wrong and have moved the date, just waiting for the other one but I’m hopeful I can get this sorted now. I will be making a claim against the solicitor who could have done the work I have done and I paid them a lot of money
Farah says
My husband forced me to open a joint account.
This defaulted by £560 just after we separated and he assurded me he was going to pay for it. When I found out about the default I started an arrangement My credit apart from that is perfect. Can I get this removed as I’m a single mother wanting a mortgage.
Weatherman says
Hi Farah
If your husband forced you to open a joint account, then you might be able to, yes – banks should take financial abuse seriously, and many of them are signed up to a Code of Practice about this. The best thing to do is to speak to your local Citizens Advice, who can help you try to get the debt written off and the default removed.
Cazza says
I have a default registered from Onstride. At the time I was making an affordability case and they contacted me requesting more time.
I chased and chased them until I finally managed to get through to someone who said that they had come tact me to say my case was closed with no action and my account was in arrears and a default had been added.
I had received no correspondance or replies to my emails yet they insisted they were sent.
I have since been chasing constantly as they have an issue with my file but I am getting no where.
I don’t know what to do, they simply keep emailing saying there are technical problems with my account but it has been months.
Sara (Debt Camel) says
are they asking for payment?
Samuel Nwaotite says
I moved house and where I moved BT was not able to continue their service. Due to this the contract had to be terminated. During this stressful moving house time, I became unwell and couldn’t work, and COVID 19 started so I had issues with childcare and getting the jobs done in the house to make it comfortable. I contacted BT when I felt better to make payment but was told my account was sent to creditors and I need to wait until the creditors contact me. As soon as I received a letter from the creditors, I rang them and made the payment immediately. I was shocked to see this default on my credit file and this is greatly affecting me and my family. I have contacted BT to remove this default. Do you think they can remove it? If they refuse what should I do next?
Weatherman says
Hi Samuel
Unfortunately even though you repaid the debt, the default on your credit record will still be there for six years (although your credit record should also show that you repaid it). You’re not disputing that you owed the money, and none of the other scenarios in Sara’s post apply, so you’re not likely to be able to get it removed altogether.
Your best option is probably to request a Notice of Correction, to explain why the debt occurred and you couldn’t pay it, and that you repaid it as soon as received a letter from the creditors (I assume you mean a company that BT sold the debt to): https://debtcamel.co.uk/notice-correction-credit-record/
Andrew Green says
Hi I was wondering if you could help.
I had default added in 2012 from Barclays. I agreed to a partial payment in 2016 and partially paid that partial payment.
In my scoring account the default date says 2012, but there is also an “update” in 2019. I don’t understand why it hasn’t been removed yet being the default date was 2012?
Thanks
Sara (Debt Camel) says
what report are you looking at?
CHARLES says
I had listed an item on eBay few months ago. The item was never sold and eBay charged me £66.90. As I was taking time to pay eBay sent the debt to the collection agency without informing me. The collection agency called DRS contacted me via e-mail to let me know they were now appointed by eBay as their collection agency and they wanted me to pay them £84.90 instead of £66.90. I decided to contact eBay and made a full payment of £66.90. The payment was accepted by eBay and was applied to my account which is back up and running again. However, the collection agency is still contacting me to say I should pay them the remaining £16 because I had breached eBay’s agreement. I have told them I would not pay them because I never entered into any agreement with them. Therefore, I do not owe them anything. I have written to eBay asking them to recall the debt from DRS as I have already paid it in full. I have received no answer and DRS is still harassing me. What would you advise on this? Would DRS sent this debt to the credit scoring agencies? Should I pay them to avoid this from happening?
Weatherman says
Hi Charles
Did the terms and conditions you agreed to with eBay include anything about them adding reasonable fees and charges for collections? If it did, it’s *possible* that there is some extra money for you to pay.
But because eBay still owned this debt, I’d have expected them to want you to pay them directly, not the debt collection agency. And it seems like eBay now consider this matter closed – so you’ve done the right thing by emailing them (keep emailing/calling until you get an answer!).
This type of debt won’t affect your credit rating unless the creditor gets a CCJ against you, and you’d get notice before that happens.
Sara (Debt Camel) says
I agree with Weatherman.
If the debt collector carries on pestering you, send eBay a complaint about the behaviour of their agent.
But don’t ignore threats of court action – if you get any, talk to National Debtline on 0808 808 4000 about your options.
M.z says
Hi,
I thought I cancelled my Bank account 5 years ago. I had moved and that account had a charity direct debit which ended up with accumulated interest(£365.16)over the last 5 years. One day I logged on to an old email which I’ve not used for years. That is when I realised it had gone into arrears(£100+)
So, I rung RBS( I didn’t know they still existed)and they couldn’t get into myaccount. Into the Branch, the lady ordered me some bank statements she said check it and they most likely be able to take of the charges. Only when i recieved my statements that it was the above total and not the one in the email. So when I had the chance to go back in the Branch they told me that it has been past onto debt collectors. I changed my address and email on my first visit in Branch. I was not informed by the debt collectors or Bank. Ultimately, I had no choice to pay the charges. I have never missed a payment. I think it’s unfair I have a default for 6 years. When they didnt give me any notice beforehand and we went into another lockdown.
Sorry its so long.
Any help would be most grateful.
Kind regards
Mz
Weatherman says
Hi Mz
I’m a bit confused – how much was the debt you owed to the bank? Is that the £365? And have you now paid the debt collection agency?
Unfortunately a valid default always stays on your credit report for six years – that’s just how it works. The good news is that this will soon drop off your credit report if it was in 2015 (check that all your credit reports currently show a default marker).
The bank should have sent you a Default Notice before selling the debt, but you might not have received it if you had changed your email address or moved home.
If you moved your bank account using the Current Account Switching Service, all of your Direct Debits and Standing Orders should have been automatically moved to your new account – so you might be able to complain and have the charges refunded. If that’s the case, contact your new bank first of all, and see what they say.
Mz says
Hi,
Thank you for your reply. The Bank charges owed was £365.16. I cancelled my Rbs account back in 2014/15. But it wasn’t cancelled. I haven’t used this account since 2014 if not longer. As I thought it had been cancelled the email attached to this account, I no longer used. At the end of September 2020. I was checking to see if the old email was still active thats when I found out I had occured charges.
I called up Rbs and they said the the details i gave were incorrect. So they asked me to go in Branch. I got my address changed and email updated and the phone number was incorrect as they had an extra digit. The lady said she would send the bank statements. Once I recieve them. Then go into the Branch and they should be able to take the charges off. So the next time I go to the Branch to resolve this. They told me that it has been sent to the Debt collectors. No letters or email from the Bank or Debt collectors. The last email I recieved from Rbs was 31/12/19 on the email address link to that account.
Hope thats a little bit clearer.
Thank you
Mz
Mz says
Hi Weatherman
Thank you for your reply. The debt was only recently paid off,as soon as I found out,Ipaid it. Do you think I will be able to have the default removed?
Due to not having recieved any notice.
Thank you kindly
Mz
Pam says
Hi,
I had a loan from the Halifax in 2012 which I paid promptly for 6 months then lost my job. I entered into a DMP with Payplan and have continued to pay the debt via them at a reduced amount. Halifax subsequently sold the debt to Lowell and the DMP continues to be paid to Lowells. I checked my credit report today and the debt is still being reported to Experian as more than 6 months overdue but it is showing as a completely different amount than what is owed (£10K+ on the credit report) According to Payplan I have just over £3k still to be paid but my credit report is showing the lender as being Halifax no mention of Lowells. I cannot see a default registered by either party either.
I am unsure if it is the Halifax who is still reporting to the credit agency on the original debt. I can only assume it is.
I have written to Experian to ask why the debt is still showing on my report as should have been removed after 6 years of the original loan and I am awaiting a response.
Any ideas on how I proceed if the response from Experian is not favourable. Who do I go to request that the loan is defaulted to the original date which will remove it from my credit file please would that be Halifax?
Many thanks Pam
Weatherman says
Hi Pam
The relevant date for the credit reference file is the date of the default notice. Halifax should have sent a default notice to the credit reference agencies when you’d been in arrears for 3-6 months. Check whether the other credit reference agencies (Transunion and Equifax) are also showing this.
It might be that Halifax never added a default to your record – you would need to ask Halifax to add one. They should add it for the date it should have originally been sent.
From what you’ve said, this default date would be more than 6 years ago, so it would no longer show on your report (unless there’d been further action like a CCJ – a CCJ also stays on your file for six years).
If for any reason the debt should still show on your credit file, but it’s showing the wrong amount, you should ask Lowell’s to report the latest information to your credit reference agencies (as Lowell’s now own the debt). Lowell’s might also add a default, but this should be the date of the *original* default (that Halifax should have added).
Halifax no longer own the debt, so it shouldn’t show that you still owe them anything. Again you might need to ask Halifax to update the agencies.
R says
What happens to a delinquent account of it goes to a default. When does the date start?
Sara (Debt Camel) says
Have you been reading about American credit records? “Delinquent” isn’t a normal British term.
If you have had missed payments then, as the article above suggests, a default should generally be added when your account is 3-6 months in arrears.
R says
I have a payment arrangement with satsuma loans. These are being recorded as missed payments and the status of the account on credit karma is showing as delinquent.
Sara (Debt Camel) says
Ok, how long has your payment arrangement been in place? How much are you paying a month and what should the normal monthly payment be? This determines when a default may be added.
R says
Hi,
I’ve been in a repayment plan since early 2018. I have two loans and I’m paying £30 a month on each. I have £1230 left on one and £769 left on the other. I do have a complaint with the FOS.
Sara (Debt Camel) says
thos are low payments – you could ask for a default to be added 6 months after the rep[ayment plan started. But with a FOS coomplaint in place is this owrth bothering with? If you win the complaint all negative marks on your credit record will be removed.
Brett says
Hiya
Hoping I can get some information or help with a matter that’s plaguing my credit score…. I shared a house with my ex partner and while living there and even after moving out, gave and sent money towards bills and such. I recently did a credit check to get a joint mortgage witb my current partner and there’s an anglian water bill that’s in default at the old address with my ex, she hadn’t been paying it or informing me of any issues, I had no idea the bl was so high and never seen any kind of bill whilst living there, never even saw a meter being read so was totally oblivious to any issue…. How can I go about fixing this so that me and current partner have a shot at a joint mortgage. Thanks in advance for any advice.
Sara (Debt Camel) says
Once you were no longer living in the house, you ceased to have any liability for the water bill after that point. You should supply evidence of when you moved out and ask for your credit record to be corrected.
But you and your ex were jointly liable for the bills while you were both living there and the only way to improve things is to pay the bills… even then it’s likely you may have difficulty getting a mortgage for a year or so.
Stephen says
Hi
I have a couple of late payments from Dec 2016 to Jan 2017.
I am in the process of applying for a mortgage and the late payment reporting is having a serious affect. Can i write a letter of goodwill explaining that i was suffering mental health problems in the hope to have these removed?
The account was paid off and didnt default.
Sara (Debt Camel) says
You can try but it is unlikely to work.
Stephen says
Thank you for the reply.
Would you reccomend any “bad credit” mortgage brokers?
Sara (Debt Camel) says
No. But these late payments aren’t that recent – when did you settle the debts?
Stephen says
Hi
It was settled in February 2017
Sara (Debt Camel) says
In that case I would be surprised if it is a big problem for a mortgage application. I suggest you talk to a normal mortgage broker about it.
Stephen says
Hi
Just an update. I received an email from EE to say they were not prepared to adjust my credit file. I replied to say i understand the reasons but find it unfair when i specifically asked if there was a balance due.
They have confirmed today via email they will remove the late payment markers from my credit file.
Thank you
Lucie says
Thank you for such a helpful site. I have a query regarding an old debt and my credit file.
I have a debt with Nationwide which dropped off of my credit file after 6 years and then reappeared after Nationwide got a collection agency involved in Jan 2020 I double-checked and the debt had not been sold.
I still owe the debt but have not been able to pay anything for the last 12 months and for eight (8) years until December 2019, I was only making token payments of £1 (one) a month.
I asked Transunion if I could get the debt taken off as it had been 6 years and had already dropped off but they said that Nationwide would not authorise it. Is this allowed?
I can t seem to find any info about debts reappearing on credit files after 6 years so any advice would be great
Thanks
Weatherman says
Hi Lucie
If you were only making token payments from 2011, then that’s when Nationwide should have marked the account as in default (usually when you have 3-6 months of missed or reduced payments, so might slip in to 2012).
It’s not something Transunion can fix, but you should ask Nationwide to put a default date for 2011/2012 (ask them to do this for any credit reference agencies they report to). That would mean it won’t appear on your file as it’s more than six years ago. If they won’t, complain!
But because you’ve made payments in the last six years (even token payments) this debt isn’t statute-barred, so Nationwide could try to get a CCJ against you. If it does, that CCJ will be on your report for a *further* six years; it’s a new marker. So it would be worth engaging with them to try to resolve this – whether that’s through a write-off, agreed token payments, or a full & final settlement.
Stephen says
Hi
I took out a short term loan with Satsuma in July 2015. I didnt start making ay repayments until December 2015. I made payments to Satsuma in:
Dec 15
Jan 16
Feb 16
It was then passed to Moorcroft for collections. Theaccou was settle in Dec 16. Will this show on my credit report until Dec 22? Should it not have been put into default after 6 months of no payments (Dec 15) and therefore be removed from my credit file in Dec 21?
This website has been incredible for me and a few friends and colleagues i must speak for 100’s when i say your advice and simple guidance is second to none.
Thank you
Sara (Debt Camel) says
Will this show on my credit report until Dec 22?
yes
Should it not have been put into default after 6 months of no payments (Dec 15)
Did you miss 6 months payments? if the loan was taken out in July and oyu pauid in December you may have only missed 4 or 5 months?
I think this is worth asking Satsuma to backdate the default, but it may not quite be the certainty you hope for if it isn’t 6 months missed payments.
Big G says
I have two defaults listed on my credit report with a nil balance. I’ve been doing some great work clearing debts, defaults and CCJs but how can I do anything about these?
Sara (Debt Camel) says
have you repaid these? if not then the debt has probably been sold to a debt collector.
Richard says
3 (mobile phone contract) have put a default on my credit record which was taken out by my son who has the same name and address as me. I have informed them of this but they are refusing to clear the record off my credit account .. what can I do to get them to action please?
Weatherman says
Hi Richard
I’m assuming here the contract was taken out by your son & is in his name (not by you on his behalf). If you took it out for him & he was just paying it, then unfortunately the default is correct.
If your son’s happy to accept the default he could contact 3 and fess up – if not you’ll need to find a way to show that. I won’t lie, it’s a tricky one as name and address are the obvious identifiers – but 3 will have taken his date of birth when he signed the contract, so you could ask them to check that. You might need to provide proof of your DOB as well. Or 3 should tell you the sort of evidence they need!
If they still won’t, put in a written complaint to them – and if they don’t reply in 8 weeks, or reject the complaint, take it to the Ombudsman. There are two Ombudsmen for telecoms, but 3 will be able to tell you which they’re signed up to.
Sarah Carter says
My ex partner upgraded a mobile phone in May 2018 when we were not together and without my consent, I initially set up the contract for him in 2012 as he couldn’t get credit due to being in a Trust Deed. He stopped paying it and now I have a default on my credit file, preventing from me getting a mortgage. He admits full liability and Is co-operating and accepts responsibility. He has asked Three to move the default away from me and onto his account as I had no recollection of the upgrade/debt/missed payments/default. I have also asked three to do this. I have raised disputes with experian and they have responded tonight saying Three said the debt is mine. However Three are saying it’s now been sold to Lowell and saying it’s on my file because I added him as a 2nd contact back in 2012.
I need this off my file ASAP. Should I file a fraud complaint with the police against him? What are my options?
Weatherman says
Hi Sarah
When you set up the contract in 2012, was it in your name? If so, then unfortunately you signed the contract and you’re on the hook for the debt and the default, even though your partner’s accepting responsibility.
I’m not sure how he managed to upgrade it if it was in your name, however. You *might* have some luck complaining to Three – and then an ombudsman if they won’t agree – that they should not have processed the upgrade. But if, for example, you’d given your partner your login details, I don’t think your chances would be high, because Three wouldn’t have had a way to know it wasn’t actually you.
Your other option would be to add a Notice of Correction to your credit report (you’d need to do this for all three credit reference agencies). This means lenders could see your explanation for the default. This might help with your mortgage applications, but I can’t guarantee it.
I don’t think you’d get very far with a fraud complaint, unfortunately.
Sorry I can’t give you better news – it’s a tricky situation.
Hopeful says
Dear Sara, I was with talktalk from 2011 until Septmber 12th 2018. I paid my bills religiously . I decided to consolidate all my utilities and moved across to Utilitywareshouse in October 2018. However, I had not upgraded with talk talk to an 18 month plan. He advised me that once they apply to take my lin over that I will get a termination letter from Talk Talk, the settle that bill and send it into UW. I then continued to get bills from TT over the coming months but i didn’t know about them because i now longer lived at the address and the emails were going to my junk folder. July 2019 I notice this debt collection letter, contact them and settle the £224 bill immediately. this old bill which is down as 6 months late and then a default. Basically it turn out that UW decided to install a brand new line because the Bt engineer said there wasn’t any signal, this decision however did not trigger a termination letter from Talk talk who then continued to bill me. TT have flat our refused any back tracking even with my pleas, UW have basically told me i should have realised my phone number has changed ( i don’t even know it now!) Both companies offered me a deadstop letter which i instincly refused and I sent a cordial and well balanced email to the CEO office to please reconsider the marker and to please send me a proof of the default notice so I can at least have a fair chance of addressing this financial catasrophe
Weatherman says
Hi Hopeful
Even though you’ve settled the bill with the debt collector, it will still show as a default.
If you don’t think the default should be there at all because the debt was because of TalkTalk’s mistake, you should complain formally, in writing, to TalkTalk’s complaints team. If they don’t reply or they reject your complaint, you can complain to the Ombudsman. There are two that TalkTalk might use; TalkTalk should tell you which one they use.
I hope that’s helpful, and good luck
Hopeful says
Thank you for your quick reply.
All the best
Elisha says
Hi, I have recently found 3 defaulted accounts in my name on my credit file! I was absolutely clueless about these accounts, I have since found out that they were opened by my mum when I was ages 18/19! I was still in education and didn’t have a job, so absolutely clueless as to how she managed to take out accounts in my name when a credit search wouldn’t have shown I wouldn’t have been able to pay anything back!
Two are for mail order accounts, one for £73 the other for £136 and the other is a communications account for £20!
I’ve wrote letters to all three companies straight away explaining my situation and requesting that the defaults be removed! What are the chances of this happening and is there anything else I can do?
Me and my other half are beginning to look at mortgages and this is going to effect us massively!
Any help would be great!
Thank you!
Weatherman says
Hi Elisha
What a nightmare – you’ve done the right thing by writing to the companies concerned. Ultimately, this is fraud, so you should report it to Action Fraud (to get a Crime Reference Number), and contact Experian’s specialist anti-fraud team. More details about all of that here: https://debtcamel.co.uk/loans-using-your-name-stop-identity-theft/
Obviously because this is a family member this could be a tricky situation – but reporting to Action Fraud is frankly very unlikely to result in a police investigation, especially for quite small amounts.
David says
Hi there.
Got a tricky situation with EE/Everything Everywhere (Nothing Nowhere). I canceled both cellular and broadband contracts the day I was sent to prison over a year ago. The operators (2 separate phone calls) confirmed the cancellation of the accounts over the phone. It transpires that because they had sent a text message with a porting code, they were able to reactivate the contract due to it being unused. I was not advised of this over the phone, nor was I in a position to read this text as I headed to the court house. It should also be of note that I am autistic, and if I’m told something is cancelled, as far as I’m concerned, it’s cancelled.
Long story short, I noticed the payments still being taken upon release. I submitted a direct debit indemnity claim with the bank, and confronted EE. They were willing to refund 6 months, which I declined as it was insufficient. I asked for a deadlock letter, and informed I would be taking it to the communication ombudsman.
Whilst the ombudsman is still investigating the matter, EE (in full knowledge of the ombudsman’s involvement) has put a black mark/default on my credit file and has sent financially threatening letters. The ombudsman requested that they freeze the account, which was done, however the adverse marker remains and it’s hampering my ability to secure a rental property.
EE were expressly informed of this, and they quite simply don’t care as it’s ‘their process’. They are entirely unwilling to remove the black mark whilst the case continues to be investigated – which itself is overdue due to covid.
Any advice on where to turn would be appreciated.
Weatherman says
Hi David
Did the ombudsman request that EE remove the default pending the outcome of the investigation? If not, you could ask them to do that.
Your other option is to ask each credit reference agency to add a Notice of Correction to your file – this is where you can explain that you are disputing the default, and that there is a live complaint with the Ombudsman. That’s not ideal as the default will still be there, but a landlord/letting agent would be able to see the additional information, which hopefully they will take into account.
Fred says
I am having a issue with JD williams.
I had a temporary covid freeze and then they offered 3 months smaller payments that wouldn’t affect my credit file.
at the end of this I asked to either resume my usual payments or carry on with the smaller again if it didn’t affect my credit file.
Today they’ve added a debt arrangment on my credit file. I am absolutely furious. I have lodged an immediate complaint.
They claim they emailed me to give my options but I do not have any record of this .I keep very close eye on this.
If they don’t remove this I am going to go insane as I’ve finally tidyed up my report after so many years. I wonder how many months this is now going to take me to fix. :(
Weatherman says
Hi Fred
You’ve done the right thing by complaining. (Silly question maybe, but have you checked your junk mail?)
If they reject your complaint, or don’t reply within 8 weeks, you can also take it to the Financial Ombudsman Service, who will look at it independently. While the complaint is ‘live’, you could also add a Notice of Correction to each credit report, to put your side of the story to lenders.
Jonathan says
Hi Sara,
Where would I stand in terms of a default from Wonga, they’ve now ceased trading. I feel it was unfairly added to my account, however as they’re now no more I can’t complain to them. Am I stuck with this for the next 4/5 years (now) or is there a way to challenge this?
Sara (Debt Camel) says
why do you feel it was unfair? (I am not disputing it, just asking the reason.)
Jonathan says
It was an account that firstly I don’t feel I should have been given, I was late on only 2 payments and was never informed that a default was going to be registered. I only ever received a letter to say my account was in arrears.
Thanks for the quick response
Sara (Debt Camel) says
Have you made up the two late payments?
Jonathan says
Yes this account was fully paid off, this was early late 2019 early 2020
Sara (Debt Camel) says
I was asking if you promptly made up the late payments, or only a month later.
Robert says
I have an old default on a Santander account. I went over my overdraft and they absolutely hammered me with charges, which then swallowed up everything that got paid into my account. I challenged it at the time but they wouldn’t back down, so in order to actually have money for food etc. I had to just abandon the account and switch banks. Anyway, they filed a default with the date on August 2015, so this in theory should drop off my file this August. However, the account is still showing on credit karma and clearscore as open (but in default), even though it’s got a default date and as far as I’m aware I wouldn’t be able to use the account even if I wanted to. Does this matter? After waiting for so long for this to drop off, I’d be devastated if it didn’t as it’s stopping me from moving on at the moment. It’s the only issue on my credit file but my score is still rock bottom. I haven’t a single missed or late payment on anything else in the last six years. So I guess my question is, does a default account drop off your file after six years, even if that default account is still being reported as open?
Weatherman says
Hi Robert
None of that makes a difference – the default will drop off after six years, so this August. The only thing that could mean a black mark stays on your credit report is if Santander got a CCJ.
One default will affect your credit score, but shouldn’t on its own put you at rock bottom! It might be worth seeing if there are other positive steps you can take to improve it too: https://debtcamel.co.uk/credit-score-change/