“This default is destroying my credit score – how do I get rid of it?”
This is a very common question!
It’s sometimes asked when people’s finances have improved and they are trying to clean up old problems on their credit history as fast as possible. Or sometimes the default feels unfair for some reason.
I will look at various cases to see what – if anything – can be done for each of them.
But first, there is no magic trick that an “expert” can use to do this:
- don’t ever pay a firm that says they can sort this for you;
- their claims are often exaggerated, they can’t do anything that you couldn’t do yourself.
Contents
When debts drop off your credit record
How long a debt stays on your record depends on whether the record shows a default date or not.
The two rules are:
- a debt without a default date stays on your record for six years from the date when it is settled. This applies whether it was settled in full or partially;
- a debt with a default date stays for six years from that date. You may have paid it in full, made a full and final settlement, not paid anything to it, or still be making payments… none of these matter, the debt is still going to drop off after six years.
So the default date is an important piece of information for you to know.
Don’t guess! Check your records with all three CRAs so you know exactly what they say.
Having a debt drop off your record because the default was over 6 years ago is the same in practice as having the default deleted.
Situations where the default should be removed
I am not saying these will be easy, but these are the most likely cases to succeed.
“I never owed this money”
If the debt isn’t yours, you should tell the lender and ask them to remove it from your credit record. It’s not just your credit record that matters here, you don’t want to be chased for money by the creditor or be taken to court for a CCJ.
“I was never in arrears”
If you recognise the debt but you don’t think you were ever in arrears, ask the lender for a statement of account. That may show where the problem is. You can then check against your bank statements to see if you made other payments that weren’t recorded.
“The lender stopped taking the money”
Sometimes the lender stopped taking the monthly payment by direct debit or by continuous payment authority. You may have assumed the debt was repaid and only found out later a default had been added to your credit record.
Here it is the fact that the lender stopped taking the payments that matters. You may be able to get evidence from your bank that you did not cancel the DD or CPA until months later. If it was the lender’s error, you should not have a default and you can ask for this to be removed.
“It’s not fair – I only missed one payment”
In this case, no default should have been added as you were never three months in arrears!
Write to the lender, then appeal to the Financial Ombudsman if the lender refuses to correct it, see the above article about what the default date should be for details.
“A debt collector has added a later default”
They shouldn’t have done this. A debt collector can add a new record, but it should have the same default date as the original lender.
Write to the debt collector and ask them to correct it, and then appeal to the Financial Ombudsman if necessary.
“The default was added very late”
The rules say that a default should normally be when you are 3-6 months in arrears compared to what your normal payments would have been.
If a creditor has added a default later than this, it should be changed to be earlier. That means it will drop off sooner, and your credit record will be clean sooner.
See “What should the default date for a debt be?” which describes how to get your record corrected. For many people this is just as good as getting the default deleted and it can be a lot easier.
Cases where you have to win the argument to have it removed
“The loan was unaffordable”
Lenders should have checked you could afford to repay a loan before they gave you the loan. A loan is only “affordable” if you can repay it without hardship and without having to borrow more money.
If a proper check would have shown that the credit wasn’t affordable for you at the time you applied, ask for a refund of the interest you paid and for any defaults or late payment markers to be deleted from your credit file.
You can also win complaints against credit cards and catalogues if your credit limit was increased stupidly high when you were only making minimum payments. And against overdrafts when you are in the overdraft for all or almost all of the month and this has been going on for more than a year.
See Affordability refunds for how to make these complaints. There are different articles for car finance, large loans, credit cards (including catalogues and store cards) and overdrafts. There is a free template in each article that you can use.
Hundreds of thousands of these complaints have worked.
Sometimes the lender will only remove “negative information” such as defaults and missed payments. Sometimes the whole credit record will be deleted.
Here is a comment from a reader who made a successful complaint against a payday lender:
I accepted Satsuma’s offer on 2nd January and received the refund on 17th January. The negative information was removed from my credit file as well which made my credit score jump by 100 points :)
“I was never properly informed about the debt or the arrears”
You may feel the creditor didn’t explain what the debt was or how much interest would be added.
Perhaps you moved house and the creditor carried on writing to your old address even though you notified them you had moved. That is an error by the creditor.
If you paid the debt promptly as soon as you know about it, you could ask the lender to remove the default. Point out that you previously had a good history of paying their bills on time and that you don’t have other credit record problems. This can support your argument. You may have more luck going to the relevant Ombudsman if the creditor refuses.
“The debt isn’t enforceable”
This may not be easy.
Sometimes a lender will agree a debt isn’t enforceable because it is statute-barred. In this case a default should probably have been added to the debt more than 6 years ago. So you can ask for the default date to be changed so that it is earlier and then the debt will drop off your record.
When a creditor cannot produce the CCA agreement for a consumer credit debt it isn’t unenforceable in court. See Debts – why, how & when to ask for the CCA agreement for details – this does not apply to all types of debt. But here the debt still legally exists and you owe it even though you do not have to pay it. As a result, the default will not normally be deleted.
“I was in an abusive relationship”
Many women have been pressured to take out credit for a partner or had a joint account with an abusive partner. Financial abuse is now recognised as a serious problem and most banks now subscribe to the 2018 Financial Abuse Code of Practice.
If you feel the debt and the default resulted from an abusive relationship, I suggest going to your local Citizens Advice and asking for their help to see if the debt could be written off and the default removed.
When it is very unlikely a default will be removed
“The lender is adding a new default every month!”
This may make your credit report look dreadful but it is normal and it doesn’t matter:
- the later defaults don’t make your credit rating worse because lenders’ scoring systems only look at the first one;
- the debt will drop off 6 years after the first default, the later ones don’t affect this.
“The lender agreed to reduced payments but still added a default”
This can feel very unfair, but legally they can do this when the arrears reach 3-6 months.
This applies if you have payment arrangements with one or two lenders or a debt management plan through a DMP firm.
And although you may hate that default, it may be better for you than an Arrangement To Pay (AP) marker on your file! A defaulted record disappears after 6 years, an AP marker stays for 6 years after the debt is settled.
“Six years is too long!”
If you just had a temporary problem it can seem very hard for this black mark to stay on your credit file for so long.
But there is legally nothing you can do to make the default go away sooner.
You can add a Notice of Correction to your credit file to say why the problem happened.
As the default gets older, some lenders will be less worried about it. But for some creditors, eg many high street mortgage lenders, any default, even five years ago, may result in a rejection unless it has been settled for several years.
Usually the best you can do is settle the debt as soon as possible. This doesn’t improve your credit score, but more lenders may be willing to give you credit.
When the lender has gone bust and can’t be contacted
This is a special case.
If the lender will not respond to the Credit Reference Agencies, then you can ask the CRAs to “suppress” the credit records. If this happens, although the records are still there, they will not be shown to any other lenders making a credit check on you.
Read How to correct credit records if the lender has gone under in detail and see if you think it can help you.
Do NOT try to do this if the lender is still going. Or if it is the early stages of an administration – then it is better to put in a claim for unaffordable lending. If your claim is upheld, the default will be deleted, and often the administrators just delete the credit record as it is simpler.
Options when cards are maxed out
Is an unknown debt on your credit file?
Improve your credit score for a mortgage
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/
Kyle says
I have a default on my account from 27/12/2016 and they haven’t tried to contact me for payment for a couple years now. If I don’t pay this will it come off my credit file 27/12/2022?
Sara (Debt Camel) says
Read https://debtcamel.co.uk/no-calls-or-letters-about-debt/ which looks at this situation.
Dan says
Hi, My wife has an issue whereby Barclaycard failed to contact her re; a small sum of £43 owed. When we eventually found out only via clear score that missed payments had been added to her account (As barclay card had not contacted her directly) we immediately contacted Barclays to rectify the situation. I was told I was unable to pay off the debt for her. She then got a letter stating if she did not pay it by X date a default would be added to her account. We regained access to the account and payed it before X date. Then a default was added to her account anyway. Further to, the default has since been moved from March 2020 to December 2019? This is effecting our ability to apply for any mortgages. Do you know what we can do?
Sara (Debt Camel) says
Why did Barclaycard not contact her? Did she not receive the monthly statement?
Dan says
Hi thanks for getting back so quickly. We didn’t receive any contact and they closed her account in April 2020 and didn’t inform her. Which is why it was so difficult to gain access to the accout and pay the outstanding balance. They said that they sent letters and emails but none arrived. Had we know about it at the time we could have immediately resolved the issue as £43 is not alot of money.
Sara (Debt Camel) says
The letter saying she had to pay by a ceertain date was a Notice of Default under the Consumer Credit Act. This has to be sent before a creditor can take you to court. But confusingly it has nothing to do with putting a default on a credit record.
She could try complaining that she was never informed a balance was owed and it was paid as soon as she was aware, so they should remove the default. But if they can prove she was sent statements this may not work.
Marnie says
Due to reasons, I lost my income and couldn’t meet payments with my creditors. So I contacted all my creditors via post due to mental health issues not being able to communicate by phone.
All my creditors have put me on temporary payment suspensions – none have graciously registered defaults.
Except PayPal Credit. I contacted by post & left comments in my account. They didn’t responded to correspondence. In November, I could pay them off in full so I did. A few days later I noticed a default registered that month.
I was having a good mental health day a few days after so did call them and asked for charges to be refunded and query the default. They said they’re an online company so can’t receive mail and can only be contacted by phone. So they claim I never communicated. They agreed to refund charges but said they’ve closed my account so technically I can’t receive them (bizarre). They say they’ve closed my account but too this day I still get marketing emails saying I’ve PayPal Credit to use.
Anyway I still don’t feel like the charges or default was fair – I’ve tried to complain direct but it’s all shoddy. I wanted to take it to Resolver but they don’t recognise the company. Is this a lost cause or is there something I can do?
Sara (Debt Camel) says
Marnie, I thought you had applied for a DRO?
Marnie says
No, I certainly considered it but was advised against it due to no disposable income that more than likely after 12 months I’ll continue to be in debt again. I only managed to pay PayPal Credit off due to a backpayment owed to me, so used it for that, at the time.
Sara (Debt Camel) says
in this case i suggest you give up worrying about your credit record. It’s bad and will probably get worse.
A DRO may not solve your no disposable income problem, but isn’t it better to clear all these debts out of the way? I am not sure what you are hoping to do that can give you a better result than a DRO?
Marnie says
Well I was told my stepchange in good faith they can’t put a DRO forward so yes it would be good but I can’t?
Sara (Debt Camel) says
I suggest you talk to National Debtlinhe on 0808 808 4000 about whether they would put you forward.
MrS says
Sara. I have a question. It may be a bit complex.
I had a default with Satsuma, due to drop off my credit file Nov 22, so next year. I complained via the FOS and won.
However, this is where I’m confused.
Satsuma have put the loan back ‘live’ and are now reporting green ticks. What are they reporting on? I have no agreement in place to pay the outstanding balance with them yet.
Secondly, will this be reported for another 6 years from when I pay the outstanding back? If that’s the case then it’s worse for me to have won with the FOS. I’ll have a loan on my file that mortgage lenders don’t like and it will have been there for 11 years by the end.
I might as well have not complained and let the default drop off.
Sara (Debt Camel) says
if you hadn’t complained the loan would have been sold to a debt collector and you would likely have ended up with a CCJ. How much is still owed? Why haven’t you made an arrangement to pay? What other problem debts do you have?
MrS says
Well the loan was over 4 years old and no contact had been made. Had it had went to court I’d have paid it.
£900 is owed abs I haven’t set up an arrangement yet as this has just happened. That’s why before I pay I asked the question while the complaint is open.
So I’m going to pay, but don’t want another 5 years reporting. And I don’t have a new agreement. So what are they reporting on?
I’ve already suffered with the default in 2016
Sara (Debt Camel) says
so the Ombudsman usually says that a lender should remove negative marks, but delete the loan from the credit record – which is what Satsuma has done.
If you had wanted the default to remain on there, it would have been good to discuss this with your FOS adjudicator.
Once the debt has been settled, it won’t be a problem for most lenders. Only mortgage lenders tend to mind a lot about settled payday loans with no missed payments or defaults. So you need to get this debt cleared a couple of years before a mortgage application.
Satsuma may accept a partial settlement if you could offer one?
MrS says
Thanks for the response Sara.
This is my issue. The loan has been brought back ‘active’ so when I pay it off, it will still be reported 6 years from close?…when it would’ve been gone in 18 months if I left it. That’s what I can’t understand.
It stated I should be put in a position had I not got the loan. That’s not the case where.
I have the money to pay it off, that’s not the issue.
This issue is it still being on my credit file for another 6 year. That’s going to affect me more even after winning my case. And will have been on there for 11 years in total of that happens.
Also, it now shows years of a balance not decreasing bit green ticks. Anyone looking at that would think something is wrong.
I was under the impression I won, I pay the whole balance and the loan disappears from my CF?
If it has been judged as unfair and had previously been in default what are they reporting on now? What are the green ticks? There’s is no agreement to report on?
Hope that makes sense.
Sara (Debt Camel) says
But if you pay it off, it’s just an old settled loan on your credit record, with no problems. Only mortgage lenders care about old payday loans, and then only for them last couple of years.
I see what you are saying but no one has seen this as a big problem before. And I don’t think it will be a big problem for you.
Chen says
I’ve won a case to have a default removed. How much points would this affect my credit score by?
Sarah says
How did you manage to get it removed?
Chen says
Hey again!
I made a claim that the loan was unaffordable and the company upheld it. This was my only default.
Weatherman says
Hi Chen
It depends a bit on the rest of your situation (whether you have other defaults, and how old it was). There’s information about the negative impact a default has on your credit score (and therefore the positive impact of getting it removed) here: https://debtcamel.co.uk/credit-score-change/
Chen says
Thanks Weatherman!
This was my only default so I’m hoping my score improves. Will it really be by 350 points?
Sarah says
Hi Sara
My son took out a mobile phone contract in my name and hid the letters from me until I received a letter from a debt collection agency it was marked as 4 missed payments by then on my credit file I contacted the debt collector and agreed to pay in full the outstanding amount which I did but the mobile company still placed a default on my credit file. No payments have been registered as made either on my credit file what can I do to have this removed please
Weatherman says
Hi Sarah
What a nightmare… Unfortunately you’re not the only person this happens to!
Even though you’ve paid the amount due, the default will show on your credit report for six years. The fact you’ve paid it might make a difference to some lenders (that won’t affect your score, but lenders look at the info underneath), but the default stays.
The only way you could get this removed now is if you raise a fraud case, but even then it could be difficult as you’ve paid the money. There’s more info on that route here: https://debtcamel.co.uk/loans-using-your-name-stop-identity-theft/
Mrs G. says
Hello,
I have noticed that on my credit file there has been a default from 2016. Although i know who the company is. They last updated the default on 2017 all the dots are blanked out and says no data. My problem is when the account (Next) was open it was actually my ex husband that did this without me knowing. I was going through a divorce whilst he was still living with us. I was a student at university, and only worked 1 day a week. I havemt a clue how it passed the credit check. I am wanting to apply for a mortgage but the highstreet lender has told me they can’t help until it is removed. I feel victimised as i am being penalised for something that wasn’t anything to do with me.
Joshua says
Hello, I was wondering if you could help. In 2014 I took out a loan to consolidate some smaller debts. Soon after I became ill and as a consequence lost my form of employment. I couldn’t keep up with the payments of the loan. Around 14 – Months after my first missed payment I was issued a default on my credit file. The debt was sold on to a external company. Soon after I got better and paid the debt in full. Fast forward to Feb 2021. I was swiftly rejected for a mortgage due to the default on my credit file. Really my query is, should my default have started 6 months after my first missed payment? Is my default notice correct in that it was put on my credit file Jan 31st 2016 which is also months after my default letter of September 10th 2015. Or rather when should the date of my default be? Any help would be really appreciated :) .
Sara (Debt Camel) says
should my default have started 6 months after my first missed payment?
did you stop making any payments after that for 14 months?
Joshua says
Thanks for the response.
I didn’t pay the agreed amount but I did pay a lesser amount each month. Probably 5-10% of the agreed terms.
Eve says
Hi Sarah,
I had a telecommunications account which was in arrears, the account was passed over to a debt collector, to whom I have been making regular, arranged payments each month, also paying extra each month to pay down the amount. My question is missed payments are continuing to be reported on my credit score from the telecommunications, now placing a default on my file, despite me paying regularly. Is this correct?
Hope you can be of help.
Many thanks
Sara (Debt Camel) says
Is your account being marked with a D for default each month? or missed payments?
Reena says
I have 3 debts that are being managed by PRA Group. I requested the CCAs for the debts last January and PRA have confirmed they are unable to produce the CCA for 2 of the debts and therefore consider them unenforceable. However, the 3rd debt they confirm is with the their legal department as I received a CCJ in 2017 and I have yet to hear from the legal department. I don’t know whether to pursue the matter of the CCA with the legal department? If I do, and they are unable to produce the CCJ, do I have grounds to challenge the CCJ or is it too late? I only became aware of the CCJ in 2019 (as I had moved address many years before) and it’s only in the last year that I have been made aware that I could request CCA from the companies. Until last year, I had been on a DMP with StepChange for 13 years. Apart from the CCJ, I have successfully been able to get defaults backdated to the correct debts as well as confirmation that other debts are unenforceable.
Do I have any options regarding the outstanding CCJ and CCA or do I just wait for the 6 years to lapse and until the debt drops off my credit file in 2023?
Any guidance would be appreciated. Thanks!
Sara (Debt Camel) says
if there is a CCJ, the creditor has no obligation to produce the CCA agreement.
You can challenge a CCJ because you never received the papers but
a) this has to be done promptly. You have left this quite a long while.
b) there is no point unless you know you would win a court case as if the CCJ is “set aside” the creditor immediately starts a new court case. If you lose that you have wasted a lot of time & gained a CCJ that will stay on your credit record longer.
Talk to National Debtline on 0808 808 4000 if you want to know about how to apply to have a CCJ set aside and they can go through the pros and cons with you in detail.
Dom says
Hi, I hope you could help my case!
I had a account going into default in June 2014, I was moving often and never caught up on the debt. Last year I started taking care of my credit score and can see that my defaulted account is still there. I have been advised to not take any actions as it will be removed after 6 years. However now in Feb 2021 it is still there and didn’t disappear. I have no CCJ in my records either.
What can I do in that case? Any help would be much appreciated!
Weatherman says
Hi Dom
What a strange situation – whoever advised you was correct that a default should drop off after six years. What date does the default show on your credit report?
Dom says
Hi, thank you for a prompt response!
The date I can see on my report says “Account opened 22 Jun 2014” and it has been updated on the 21st of Jan and that is the only date apart from “Payment history” dating back to May 2020 (obviously I have not made any payment towards that debt ever and the amount stays the same).
Weatherman says
Hi Dom
No problem! It doesn’t sound like you actually have a default registered on this account on your credit report. This happens sometimes, annoyingly. Contact the lender and ask them to put one on from the point you’d missed or paid reduced payments for 3-6 months. That should be before February 2015, so should mean the debt is longer on your report.
Dom says
I think from the moment I have opened the account to the point it could’ve gone to default was probably about a year.
Would contacting the lender spark any action from their site, ie taking the matter to the court?
Weatherman says
Hi Dom
From what you’ve said, the debt might be statute-barred. Take a look at this: https://debtcamel.co.uk/statute-barred-debt/ If it is, then the lender can’t take you to court.
Otherwise it is a bit of a risk that contacting them prompts them to take action. So your best bet may be to wait until it’s statute-barred, then contact them. (Once it becomes statute-barred, contacting them doesn’t ‘unbar’ it.)
If you’re not sure which option you want to go for, I’d suggest speaking to National Debtline: 0808 808 4000
Dom says
Thank you so much for that!
I think I might give it few more months and wait. My only worry would be CCJ, and since I have moved houses again (recently this January), I don’t know what are the chances the lender will take actions and notify me prior that. Worth mentioning I do update my addresses each time with all the providers, bank etc so it shouldn’t be difficult to track me.
I am pretty sure that my debt was passed over to a debt collecting agency Hoist Finance, that what my credit report says.
A says
So my credit card with Nationwide defaulted in Jan 2015 and I had to get Nationwide to remove it in Jan this year because they had not removed it. Just gone onto my credit files and they have put it back on but dated 18 Nov 2018!
Just called them and they have said this is a known issue with Credit Cards and I will have to call them every month to do a manual removal! Ive just lost it on the phone with them, im so stressed out. Is there anything I can do? Has anyone else had this?
Sara (Debt Camel) says
Send them a complaint and say this is very stressful for you and you want to ask for compensation for each month this happens if they agree it is their error and they cannot put it right.
A says
There is a balance outstanding and I’m not sure if I did or didn’t pay regular payments to them after the default date for some time, it was such a long time ago. I have no idea if the balance that they are starting is correct – it seems to be higher.
If I did make payments then it wont be statue barred. I’m really trying to sort my credit file out – I paid everything except this one. I was advised not to as it was close to dropping off my file.
I don’t know if I should offer them a partial settlement or full or take my chances with it. I don’t want a CCJ. Obviously by speaking to them I am acknowledging the Debt as well.
Please help – I’m really stressed out.
Mr A says
Hello,
I was declared bankrupt in May 2019. Discharged 12 months later in May 2020. My credit score is now going the right way and very slowly increasing. When I look at my credit file there are still 2 creditors that mark my account as a default each month where as other company’s that were included in my bankruptcy are no longer on credit file. Is there anything I can do about the 2 company’s that update this every month or do they just update this every month for the 6 years from my original bankruptcy order.
Thanks
A
Sara (Debt Camel) says
See https://debtcamel.co.uk/credit-file-after-bankruptcy/ for this situation and what to do.
Joan tiller says
Hi there I have an unpaid default which is 5 years and 4 months old. It was for a credit card of 3,500. My question is can the debt company which it was sold to reregister it again or turn it into a ccj and will they have to let me know before they do this? The debt company haven’t got in touch with me for 4 years now because last time they called I was suffering with a break down and they put it on hold but never called back to this day.
Sara (Debt Camel) says
an unpaid default which is 5 years and 4 months old
Is there a default date on your credit record with that date on it?
This may not be the same as when you think you stopped paying.
Henry says
I hope you can help me. Following my divorce, my ex-wife defaulted on her car loan that was taken in my name. This default is dated May 2018, but she claimed to have paid the balance in full since Sept 2018. On my credit report the status is satisfied, does this mean that she made a full payment? I really don’t trust her, and how can I purged the default from my records? I am considering applying for a mortgage in the coming months, will this affect my application?
Sara (Debt Camel) says
as the loan was in your name, the lender should give you a copy of the account on the loan. At least you will then know what has happened.
If the loan shows as satisfied it is possible she paid it completely but you need to know in case she stopped paying and the debt has been sold to a debt collector.
That doesn’t mean there will be any way to get the default removed.
Henry says
Thanks Sara, I’ll contact the lender.
Should I be able to prove that the loan was secured for my ex-wife, will the lender change the name on their records to hers, and therefore no more default on my credit report?
Sara (Debt Camel) says
No. They lent the money to you, not your ex.
Rob Hoyle says
Morning Sara. I have a Tesco mobile default, dated 1st July 2017. This was for a contract i took out, at £10 per month. on 16th december 2016. I paid the first month upfront, and the rest on DD. on the 1st february Tesco deducted £60, which I reversed. Apprently it was for £10 for the contract and £50 for a buffer. Nowhere on my contract at the time was there any agreement on a £50 buffer payment. Payment then resumed on 1st March £10, and 3rd April £10, after which Tesco then closed my account and demanded the balance of about £180 is memory serves due to a missed payment of £10 I completely disputed this, as the error was their fault, they had no authorisation to deduct an additional £50 buffer. Trying to get through to their customer service line was a challenge. i think i gave up most times after 20 or 30 minutes. However, instead of heading to court, where i would have a more then decent chance of winning the case, they lodged a default. I did not wory about it at the time, and left it as that. eventually when i wanted to buy a home, it came back to bite me, so i paid the balance of £180 to clear it. Now, as this is not an error on my part, but an unauthorised deduction on their part, is their any chance of getting this default removed?
Weatherman says
Hi Rob
Unfortunately it’s difficult to dispute and remove a default if you’ve paid the debt. As annoying as it is, that’s taken as acknowledgement that you did owe the debt.
You could try disputing the debt with Tesco and try to get them to refund you the £180 and remove the default. If they reject your complaint or don’t answer, you can escalate it to the ombudsman (there are 2 in telecoms, Tesco can tell you which one they’re a member of).
No guarantees – but that’s the only way you might get it removed. Good luck!
Ellis says
I had a loan with QuickQuid in 2018 when I had mental health and substance abuse issues and was not in a financial position or mental state to be given a loan let alone afford the repayments. I have since put in a redress claim with QuickQuids administrators who rejected this! I have since tried to appeal this decision and am currently awaiting medical evidence and bank statements for that period (bank account is now closed due to it being overdrawn)
Will I be able to get this account removed from my credit file? I was very unwell at the time and extremely vulnerable. Id even pay it off if it means removal from my credit file!
Sara (Debt Camel) says
I suggest you wait for the result of the appeal. Some of these are being won!
pam brushnefn says
My husband has had a default added to his credit file as I have entered a protected trust deed, this is a joint loan but he has continued to pay it every month so there are no missed payments, my understanding is that a default can only be added after 3 to 6 payments can somebody tell me if this is legal for the lender to have done this?
Thank you very much.
Sara (Debt Camel) says
Sorry you need to talk to a Scottish debt adviser.
James says
Hi Sara, I have had late payments in the past and they have taken 6 years to fall off my file, the accounts are now closed. However, on another account, I had 2 missed payments in 2013, account closed in 2017, but late payments still showing. Why do some fall off after 6 years and some don’t?!
Thanks
Sara (Debt Camel) says
Probably there was a default date added for the first case – records are deleted 6 years after a default date.
For the second one, a default shouldn’t be added if there are only a couple of missed payments. This debt will go 6 years after the settlement.
De says
We need to campagne about this, possibly challenge it in court, i believe no one should serve the same sentence for a default likewise a ccj.
I believe it is fair to say a default should only be on a credit file for no more than 3 to 4 years, however a ccj is a different matter 6 years is reasonable.
Sara (Debt Camel) says
I don’t see any chance of a successful challenge in court.
But the regulator may be looking at credit reporting in the next year or so – so that could be a good time for people to say what they think would be fair.
Sally Brown says
Hello, please can someone explain defaults and the timeline. Do they stay on your account for 6 years from the date of the last missed payment? According to my credit file (Equifax) the date of the last missed payment that was noted was January 2016. Underneath it says updated June 2016 although no more missed payments are showing under this account after January 2016. Does this mean this default should now be coming off as it was 6 years in January 2021? Do different CRA have different time lengths? Many thanks in advance.
Sara (Debt Camel) says
All CRAs use the same rules.
Defaults drop off 6 years after the first default date.
Non defaulted accounts drop off 6 years after the account has been settled (in full or partially) with zero balance owing.
But a missed payment is not the same as a default. If there was a default on your credit record it would be saying Default every single month.
6 years from January 2016 is January 2022, not January 2021. But it sounds from what you have said that this account is not defaulted so it is not going to drop off until 6 years after you close it.
James Rossi says
I had 3 defaults registered against me by a utility company for both gas and electricity in 2017 and then just for good measure a third in 2018, however this was for the same account that one was registered for in 2017 and there was a nil balance (2 defaults for one account). The money was never owed as it was a rental property and the figures put forward were based on my ex tenants estimated usage and the property was empty and negligible electric was used and gas switched off at the mains for safety. I was never advised that they were pursuing any alleged debt as they didn’t write to me at the address they had on file so I was unaware. I went through Resolver but all they did was let DCA’s have access to the file in order that they could pursue me for a non existent debt. My question is can I apply for a court order to have the defaults removed. I read somewhere that one tactic is to request a copy of a Default warning letter/Notice and if one was never received the default can be wiped, unsure though if a utility co has to abide by the same criteria as a lender. I cant process why utility companies are allowed to have access to credit files and screw people’s lives over. Any help gratefully received.
Weatherman says
Hi James
Unfortunately utility companies don’t have to send the same default notice as other companies before taking action; that’s a provision of the Consumer Credit Act – so it applies to credit cards, bank loans, etc, not utilities.
Is your main argument here that your former tenants (not you) are liable for this debt, or that the estimated usage after your tenants moved out cannot be right?
Either way, you should complain in writing to the energy company. You might need to provide evidence, e.g. tenancy agreements showing the dates of the tenancy.
If the crux of the dispute turns out to be “What was the true meter reading when your tenants moved out and you took over liability for the bills” but no such reading was taken at that point, it might be a difficult one to win – but you can argue that the energy usage for the period you’re liable i.e. between the date your tenants moved out and Point X (when you sold / re-let the property etc) could not be above a minimal amount.
If the energy company rejects your complaint or doesn’t respond, you can take it to the Energy Ombudsman, who can order the company to take certain action, like removing a default.
Sara (Debt Camel) says
I agree with Weatherman that it sounds as though you should be able to dispute the debt amounts.
This doesn’t necessarily mean the default will be removed even if the bill amounts are changed, as you still had a liability to pay something and it sounds as though you didn’t.
James Rossi says
Thanks for the reply I did go to The Energy Ombudsman but they refused to obtain readings from the meter re previous tenant as she had questioned previous bills from BG. They closed the case and wouldn’t uphold. So all the comments on Trust Pilot about not being fit for purpose were confirmed and they’re only there to serve the members who pay their wages. I have asked BG to remove the defaults but they refused and then gave the Resolver case over to DCA’s to access to pursue me for a non existent debt. One DCA even did a credit search on me. The whole situation is so futile. British Gas added a second default for the same account with a nil balance, I have 3 defaults and I never had the opportunity to address as they didn’t correspond with me at the address they had for me. If there was ever a petition due on Change.org it was to stop inept corporate utilities from credit reporting and to change this ‘sentencing’, 6 years is a lifetime. We’ve lost 2 years of our lives what happens when furlough ends British Gas will enter in to a feeding frenzy. The only way I can see how to remove these is the legal route through a court but I don’t know what forms I would use. Defaults should also be reduced from 6 years to 12 months, CCJ’s from 6 years to 3 years. A 6 year sentence as a result of hardship or another’s ineptitude over a minor utility bill is dickensian.
Mr Tarlok says
Hi Sara, Recently my B2L mortgage was declined by Virgin Money with no information provided, then my broker made application with 2 more lenders under SPV who declined too reasoning “3rd party information provided” My Credit score in CRA is excellent (same for my other 2 brothers with which i made joined application). After Getting Cifas and Hunter Report we learned in Hunter VM mentioned inconsistency in their report with Reason Conflicting Salary Details
Other – Contact Lender.
Now how do we get more information and how do we challenge them? As they wont provide more information? I also learned from hunter report that in 2019 when i was re-mortgaging they wrote
Other – Contact Lender
Lack of transparency on transaction
which again i am not sure what they taking about. Can you please help me removing this mark as all my income/salary is genuine.
Weatherman says
Hi
Based on National Hunter’s website, you’ll need to ask whichever lender provided them with that information – not National Hunter themselves.
You could ask National Hunter if they will tell you who entered the information, and/or try a Subject Access Request (SAR) to any lenders you have applied to since 2019 and see if that flushes it out.
Then you can raise a query or complaint with those lenders and try to straighten things out. Good luck!
Sara (Debt Camel) says
See https://debtcamel.co.uk/name-fraud-database/ for how to send National Hunter a SAR to get the info they hold for you.
But as Weatherman says, your complaint should go to the lenders that have added an incorrect marker on the NH database. The comments below that article show that it is possible to get incorrect markers removed by the lenders. And you can take your complaint against the lender to the Financial Ombudsman if necessary.
Mathew says
Hi, I have a default that is over six years old from Barclays partner finance which I’ve just found on my credit file using Check my file. I’ve just been given a decision in principle from Halifax for a mortgage by submitting my experien credit file which didn’t show this default, I’m now concerned they will see this and decline. How quickly can I get this removed and how would I go about doing so please?
Sara (Debt Camel) says
Halifax is VERY likely to check all three credit reference agencies.
By “default” do you mean a missed payment? Have you repaid the debt, if yes, when?
Laura Sewell says
Hi Sara,
Amex have agreed to remove a default from my credit account. Do you know how long this takes to show please? I have checked my credit club with money saving expert…my score has gone up by 222 overnight but there is a default on the account still. They emailed me yesterday to advise of the default removal.
Thanks, Laura
Sara (Debt Camel) says
So there are two issues here – when will Amex update it and when will you see it on your report.
You could check the Experian Statutory Credit Report https://www.experian.co.uk/consumer/statutory-report.html#section-three-hp which is updated in real time. The MSE credit club is a once a month snapshot.
Laura Sewell says
Thanks Sara. I have requested the Experian Statutory report today.
Laura Sewell says
Hello,
I signed up to Experian to check and the default has bene removed! Good news.
The company “First Source” on behalf of Amex have proposed and Amex have accepted an offer for a partial settlement. Should I ask for the details in writing before I agree to make the payment?
Amex have said in an email to me that once (I) “have completed the short settlement on the account, your credit file will be updated accordingly.”
Will this show as “partially settled” and the account closed with a zero balance?
Thank you
Sara (Debt Camel) says
“Will this show as “partially settled” and the account closed with a zero balance?”
I think that is what should happen.
Are there now any missed payments or a payment arrangement still showing?
Laura Sewell says
It shows as “3 months late payments” as this is where I was at last year when I started talking to them about financial difficulties. It is currently as an Active account as the settlement will be made end of March.
Llo says
Shown as “partially settled” default will remain for 6 years.
Sara (Debt Camel) says
it would remain for 6 years from the default date. Without a default date, the 3 month missed payments will be visible for 6 years from the settlement date.
Sara (Debt Camel) says
ok then it will drop off your record 6 years after the settlement date.
Laura Sewell says
Thank you. Yes, there is no default on the account.
Ian says
Hi
I have been paying into a debt management program for 8 years and it’s now finished. I have checked my credit report and my loans /cards are not showing. I would of thought they would still be on there. Please could you advise me on what may be the reason. Also I’m planning on applying for a mortgage this year do I have to declare I have been on a DMP even tho it finished.
Thank you
Sara (Debt Camel) says
Have you checked your credit records with all three credit reference agencies? See https://debtcamel.co.uk/best-way-to-check-credit-score/
Ian says
I have and it doesn’t appear on any of them. I found this strange but then I read that it could disappear off my credit report even if the loan is ongoing or paid in full. Could you advise me if this is correct thank you
Sara (Debt Camel) says
Read https://debtcamel.co.uk/dmp-credit-rating/ which looks at how DMPs affect credit records. It sounds as though all your debts were defaulted early in your DMP so they have dropped off your credit record.
A mortgage lender can see debts on your credit record, debts you have made pay to in the last 6 months from your bank statements and debts you owed to the lender’s own group of companies.
If you are applying more than 6 months after your DMP ended, and you don’t apply to any mortgage lender connected with the debts in your DMP, they can’t see the old DMP.
You have to answer honestly questions you are asked. But normally these are about your current debts – you don’t have any. And whether you have ever been insolvent (an IVA or bankruptcy). It would be unusual be asked if you have been in a DMP.
I always suggest people don’t apply direct to a lender but go through a broker and tell the broker your whole past history. Good luck!
Ian says
Thank you so much for your advice Sara. You have been very helpful 👍
Craig says
Can a debt buyer place a default? Basically I had a CC that I couldn’t afford in 2015/6. I entered a payment plan and stuck with this for 2-3 years. Last year it sold to AG without defaulting it, and NCO handled it.
I sent a CCA request to NCO whom replied stating they would get the documents and place the account on hold so I held off payments. That’s the last I heard from them.
Now it’s 7 months later, and AG have sent me a letter issuing me a default at the start of May. So can AG issue me a default now? Seems unfair when a payment plan was in place beginning 2016/15, if anything it defaulted back then..
Sara (Debt Camel) says
Yes they can.
But you can Ask the original creditor to add a default date that is earlier – if they do this AG will have to use the same date so it will drop off your records sooner.
See https://debtcamel.co.uk/debt-default-date/
Kieran says
I took out an initial payday loan in April 2015 (Payday Express), I was never quite sure how I got this in the first place due to having no affordability. I then took out subsequent loans to pay the money I owed on these loans. One loan I took out was 29 May 2015 and I have a registered default for £321 on 22 November 2016 from Payday Express. Satisfaction date of 29 November 2016.
I used resolver and they accepted liability but only for the first loan they gave me in the April of 2015. I’m quite shocked they’ve admitted liability for this one but then re-lent to me. I’ve been rejected a mortgage offer due to this default and I’m trying everything to get it removed.
What are my chances?
Sara (Debt Camel) says
they accepted liability but only for the first loan they gave me in the April of 2015
It is a shame you did not take the complaint to the ombudsman, where you may have had more loans upheld.
At some point Instant Cash Loans is going to cease to exist as a company. After that you won’t be able to get a response if you ask ICL to correct your credit record – but then you will be able to ask the Credit Reference Agencies to “suppress” loans with incorrect details, see https://debtcamel.co.uk/correct-credit-records-lender-administration/.
But at the moment I think ICL probably are responding to questions about your credit record so you can’t use going to the CRAs as a short cut around ICL.
Llo says
You have no chance of having it removed, unless it was entered incorrectly. I think we should all come together, put this to the courts to have default removed from anyone who has a default on their account after 3 years. Unlike CCJ i can understand 6 years, but not 6 years for a default, i think it’s obsurd.
I believe a petition to parliament will not be accepted, they’re unable to help with this matter.
Sara (Debt Camel) says
How you would win a court case about this? What law do you think has been broken? The rules need to be changed.
Llo says
That’s exactly what I’m saying, the rules needs to be changed, I’m not saying anyone broken any laws. I’m simply say the ICO may need to be challenged in court if what it takes to look at it.
Sara (Debt Camel) says
But you don’t get rules changed in court. The court makes a judgment based the current rules. I know you think 6 years is unfair but as I said to you before:
“the regulator may be looking at credit reporting in the next year or so – so that could be a good time for people to say what they think would be fair.”
Dan Bond says
Hi I had my guarantor loan written of and refunded with bamboo but the negative marks they left have not been removed from my credit score? Just wondering if they should of removed these? If so how can I go about getting it removed? Thanks
Sara (Debt Camel) says
Did you ask them to remove the negative marks? Was the refund via the Ombudsman or direct from the lender?
Dan Bond says
Yes it was refunded direct from the lender but they never removed the negative marks on my credit file. I’m sure they are ment to, but have not done so far. And said it was not part of the agreement according to someone I spoke to via email.
Sara (Debt Camel) says
I suggest you send them a new complaint asking why the negative mark has not been removed from your credit record. Point out that the FCA’s DISP regulations say lenders should follow Ombudsman decisions in similar cases and FOS saying that negative marks should be removed when a loan has been decided to be unaffordable.
Jack says
If anyone could help, or offer advice, I would really appreciate it because I’m struggling mentally.
November 2017: I got a credit card to repair damage to my car
Early 2018: Halifax began to introduce high daily fees for overdrafts. I came to an arrangement with them to repay it back in 10 months, equalling £400 per month.
Early 2018: Money was tight. I resorted to payday loans, and eventually, a loan to repay a prior loan.
Mid-2018: I was eligible for credit with Aqua, and Capital One to help give some breathing space with daily expenses. But I eventually maxed this out.
Late 2018: I went to Everyday Loans who offered me a relatively small loan (high interest) to pay off these payday loans.
The next day: I had to pay for a funeral for a relative, so a large portion of that loan went to that.
Late 2018: I took out another payday loan from Satsuma.
By this point, I was paying £1k in repayments each month, and the balances weren’t going down.
Mid-2019: Tired of living month-to-month on payday loans, I opted for a DMP. They recommended I include all my lenders (large and small) into the mix, and so I did. It was a relief, although short. Along with the 4 defaults, HSBC have reported to credit agencies that I have missed payments since I began the DMP, even though they accepted the new repayments. My credit report shows 21 missed payments.
Sara (Debt Camel) says
Are you managing ok with the DMP payments?
CharlotteM says
Stumbled upon this whilst trying to find advice about my case. I have spent years diligently building my credit score in anticipation of getting a mortgage. THIS is the year! Deposit money saved and ready, credit score at 999 with experian. Haven’t defaulted on a single payment in over 5 years. I apply for a mortgage and get declined, upon reviewing my credit report it turns out Virgin Media have registered a £14 default to my report. I left them as a customer in August when I moved house, 7 years of paid service and never missed a single payment, called them and wrapped everything up, supplied my new address. They claim to have sent me 3 bills by post and 3 bills by email – needless to say I received none, of course if I had I would have paid it, it is after all just £14. Its simply not possible that they sent me 3 bills and I ignored them all. The last email from them I have was 4 months before they registered the default and was about my moving house and returning the router, no bill attached. Top say I am devastated in an understatement, my credit score has dropped by hundreds of points and my dreams of buying a house are in tatters. I am a single parent, so I have to rely on my credit score alone. Virgin Media are being really unhelpful, I have since paid what was owed but they are refusing to remove the default from my report all together, it seems the onus is on me to prove their error. I simply do not know what else to do :( Any guidance is much appreciated.
Weatherman says
Hi Charlotte
Of course you’re devastated – but all is not lost.
Firstly, complain to Virgin Media in writing and ask them to remove the default, as you never received a bill for the amount claimed. If they refuse, or don’t answer, complain to the Ombudsman (there are two in telecoms – Virgin should tell you which they use).
While the complaint is ongoing, you can get a Notice of Correction added to the default, so a lender can see you’re disputing it (might not make much difference; certainly won’t hurt).
Even if you can’t get it removed, a single default shouldn’t be terminal. Try again with a different lender.
Good luck!
James Rossi says
Charlotte I really feel for you this (and many other posts) are so similar to my post of the 8th, such an awful injustice. A 6 year default for £14, it makes me weep I can only advise from my own (painful) experience. If time isn’t on your side I would be inclined to hop straight on to Resolver. I went through the Energy Ombudsman and it was a tough gig to say the least and I very much regretted it. When I see the amount of people affected on here and MSE and CAG I can’t believe we all no more than continuously debate the injustice of it ad infinitum and we’re all hamstrung because you’re at the whim of inept utilities and The Energy Ombudsman. I am exploring my options and as to whether there is a route via the courts and will keep you posted. Unfortunately given that there is a massive backlog in the courts due to covid I can’t see it happening overnight. My argument is the same as yours and many others why would anyone in their right mind not pay a minimal/negligible amount as opposed to taking on a 6 year default. Seems like a no brainer to me. On another note as well as my thoughts on a petition CRA’s should be more accountable as to the integrity of the information they profit from. Regards
ross lee says
Hi Sarah,
Do missed payments drop off your credit report exactly 6 years after they were settled? I need to know as I have a missed payment which was settled on 6th Aug 2015 and I need to go through a mortgage application in August so if it disappears on 6th wouldn’t be a problem. But if it take a month to update would be an issue.
Any advice would be great.
Thanks,
Ross
Sara (Debt Camel) says
Yes they should But a settled missed payment 6 years isn’t likely to be much of a problem anyway… I suggest you talk to a broker about this.
Sarah says
Currently have 3 defaults on my credit file from 2019 all for credit cards. I fell ill during 2019 and took nearly the whole year to be diagnosed, during this time i wasn’t coping mentally and physically as used all my strength to keep my job and current mortgage payments. I honestly can say I have no recollection of receiving letters and assumed my direct debits were still valid. All of these defaults have been settled in full and I would like to appeal to have them removed from my credit file due to these reasons. Any advice
Weatherman says
Hi Sarah
I’m sorry you’ve had such a difficult time.
Your creditors have discretion to remove your defaults. You would need to contact them and explain the situation – if there’s evidence you can provide alongside it then that’ll increase your chances. It’s not exactly for this situation, but if you had mental health problems that affected your engagement with your money you could try using the Debt and Mental Health Evidence Form: https://www.stepchange.org/Portals/0/documents/debt-mental-health-evidence-form-version-4-october-2019.pdf
If they won’t remove the defaults you could then complain to the Financial Ombudsman Service.
Sara (Debt Camel) says
I’m not going to say you shouldn’t try to have these removed, as weatherman suggests.
But you did default on the debts – either you DD was cancelled or there wasn’t enough money in your account to pay it.
I am not saying this is ethically right, but the credit record system is set up to track when people failed to pay… and you did,.
So while you can ask your creditors to use their discretion to remove these defaults, I think you should recognise that they legally do not have to .
Mo Carney says
Hi Sarah, I had a car on an options agreement from Fords. It was a 4 year agreement. I was made redundant from my job and couldn’t afford the monthly repayments. I got in touch with Fords and explained the situation to them. They told me that I could return the car and they would pass my debt on to a company and they would arrange a repayment plan for me to finish paying for my car. They told me that they would put a Voluntary Termination mark on my credit file. I was contacted by Link and arranged a repayment plan with them, and continued to pay this. It was only when I tried to get credit and was refused that I found out I had. Default on my account. I queried this and was told it was because I had not honoured my contract with Fords, I am extremely upset about this because it has affected my credit rating. I never once was late or missed a payment, either to Fords or Link. Link was the company that applied the default.
Sara (Debt Camel) says
were the repayments you made to Link lower than the monthly repayments on the finance contract.
A says
If a default was 6 April 2015. Will it come off on 6 April 2021 or 7 April 2021?
Sara (Debt Camel) says
Seriously, why do you care? I have no idea what time CRA databases are updated, whether it is the morning or last thing at night.
A says
I’m not querying CRAs updating it its the date but don’t worry, forget I asked.
Zoe says
I had one drop off Feb 8th this year. Transunion removed it the beginning of Feb I had to chase the others to remove it. Experian only processed it yesterday but my credit score went up with them by 66 points and transunion score went down by seven weirdly when they removed it. I signed up for a 30 day free trial with check my file and got them to chase the CRA’s rather than contacting individually myself. Just remember to cancel the trial. So in answer to your question it’s unlikely to disappear on the exact date it may drop off a little sooner and you may have to chase some CRA’s to process it. I wasn’t applying for any sort of credit so unsure if lenders see a “true” reflection of it being removed on the exact date. Hope that helps
Sara (Debt Camel) says
Chasing CRAs does no good at all. The debts will drop off 6 years after the default date.
Unless the default dates are different (an error but it does happen) they will all go at the same time. The reason it looked as those the debt went on different dates is Checkmyfile does not have real time access to the CRA data, it just has snapshots from the three CRAs, the TransUnion ones are every week, Experian and Equifax are every month.
If you want to see what is really on your records it is better to look at the free statutory reports from each of the CRAs as they are real-time. See https://debtcamel.co.uk/best-way-to-check-credit-score/
Emma Rogers says
Hi,
I am trying to apply for a second mortgage (we have just sold our house) and have been declined as I have a default on my account which has been on going since April 2018. (I was totally unaware of this) It was an unpaid month phone bill with Vodafone which I settled back in 2018 but as my account wasn’t ‘closed’ it has looked like I have been owing money since 2018. No contact has been made to me over the past 3 years as there was no balance on my account (the reply I had from Vodafone when I asked why no one had tried to contact me) but on my credit report it says I’ve owed money for 3 years. Long story short – I have managed to get Vodafone to satisfy my default and backdate it to 2018. But my concern is, how long will it take to show on my credit report? And when it does with only having that issue will I be able to get a mortgage, we have an offer accepted on a house so I don’t have a lot of time to get this resolved. Please, any help or advice I will greatly appreciate. Thanks Emma
Sara (Debt Camel) says
This sort of thing is why I suggest people should check their credit records 6 months before applying for a mortgage – errors take time to get resolved.
Do you have it in writing from Vodafone that they are removing the default and showing the account as closed as it was their error?
Emma Rogers says
Yes I have a letter from them confirming this and that’s it’s been backdated to 2018. I just worry it takes too much time to show on my report and our mortgage gets declined again until it shows.
Sara (Debt Camel) says
Tell the broker you went through what is happening.
Jack says
Hi Sara
I hope this is the right place to post this . I had an issue with Myjar regarding a default date and they agreed to change it ,after six months no update on my credit . I phone them two weeks ago and was told by a member of staff that they had agreed to remove everyone’s data from their credit files and this would be done in the next month. And if not to contact the credit reference agency and ask for them to be remove .
Sara (Debt Camel) says
thanks for that news!
Dolly2 says
We entered a DMP in 2012 and notified all creditors via STEPCHANGE. As l understood it, after 6 years defaults should have dropped off in 2018 but they are still there 9 years later. Is complaining to the relevant company the first action we should take as Equifax told us it is six years from when it is settled which take us to late 2020’s !Any suggestions would be great.
Weatherman says
Hi there
If your creditors added defaults then they should automatically have dropped off after six years. Not all creditors add defaults, however. Some might have added an ‘arrangement to pay’ marker instead – one for each reduced payment you made during the DMP. These would only drop off 6 years after your final reduced payment. There’s more information about these here: https://debtcamel.co.uk/dmp-credit-rating/
Dolly2 says
Thanks a lot that really helps.
Ruth says
Hi there,
I complained to Shop Direct a few times as I received a default which I felt was unfairly issued, they have finally upheld my complaint- which on this occasion was for unfair lending. They are refunding me some of the charges and have agreed to advise Lowell (who the debt was passed onto) to remove any adverse information from my credit file. I am not 100% sure what this means- will this mean the default is removed from my credit file altogether? Thanks, Ruth
Sara (Debt Camel) says
Yes, a default is adverse information so it should be removed.
Andy says
Question in regards to Defaults.
In the above you mention “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.”
I have only two defaults on my file for 2 x Capital One Credit Cards.
These were Low Credit Value (£200 each) High Interest cards.
Start Dates June 2014 & March 2015
Default Date Feb 2020
Fully Paid off Nov 2020
Prior to the missed payments there are two missed payments over the course of 5 years, due to payment not recording on the correct date by 24hrs.
I missed payments October 2019 to Jan 2020, and contacted Capital One to see if I could enter a short payment plan to bring account back in to order.
Capital one stated that in order to allow me to entre into a payment plan they would have to register both accounts as default.
As I was desperate to get a payment plan into place I reluctantly accepted this.
In November I was awarded a refund off a delayed PPI claim, so paid the remaining Balances off in full (£166.76 & £164.00)
Is there anything I can do to have these removed, as effectively I was strong armed into a Default.
Weatherman says
Hi Andy
Unfortunately I think you’re unlikely to be able to get those defaults removed (although it’s good you repaid them, as it means they can’t progress to CCJs). Capital One are within their rights to say that to allow you to make payments below your contractual minimum for a few months they will put your accoutn in default. They could have done this if you’d missed payments for consecutive months even if they hadn’t agreed anything with you about it.
Andy says
I think I might have an avenue to look down.
As they said it was a payment plan and default it means they did not issue the statutory Default warning letter.
It was a straight Accept the payment plan and default issued.
This would of granted me 28days to settle.
Also I don’t remember seeing anything stating details of what a default is, and the effects of one being lodged against my name, ie might struggle to get new credit.
So going to obtain SAR and follow it that way.
Weatherman says
Hi Andy
Unfortunately – and confusingly – a creditor doesn’t have to send a Default Notice before they register a default on your credit report. A Default Notice has to be issued before they take action such as getting a CCJ. There’s a bit more information about that here: https://debtcamel.co.uk/debt-default-date/#A_credit_record_default_is_NOT_the_same_as_a_Default_Notices
You can try complaining to Capital One if you weren’t told that this would affect your credit report & therefore your ability to get credit in future. But they didn’t need to send you the statutory letter before doing this.
Eagle-eyed says
Hi Andy / Weatherman.
How about Capital One misleading & falsely advertising support without negatively impacting your credit reports?
If you Google the following words:
Capital One Struggling
You will get a result for part of the capital one website that says “Money worries can be confusing, but don’t worry, you have options. There are 3 steps you should take to avoid late fees and reduce any damage to your credit rating.” With Step two stating ” Have your credit file show that you’re doing your best to get back on track”
So how is immediately registering a default at point of agreeing a payment plan showing you are getting back on track?
Michael East says
Hi,
I moved out of my house in 2012. My ex wife continued to live there and accrued arrears and missed payments for a number of years. The house finally sole in November and I’m now trying to repair my credit.
Could the mortgage provider do something to get the late payments cleared from my credit file? I have a court order that clearly stipulates that my ex wife was responsible for the arrears and missed payments and that I was to be indemnified.
I’ve just found out that no one will give me a mortgage with these missed payments on my report
:-(
ME
Max says
Hi Sara,
I have a default registered for an unsecured loan (Provident) of around £150 on 29/05/2015. I have only just discovered this whilst looking to obtain a mortgage through a broker . This default is only present on my TransUnion file . At first I did not recognise this company but after a bit of digging around , it is from an old pay day loan taken out in January 2015 with Satsuma but registered with a different name as its part of the same group . I did not pay this , had moved from my previous address and forgotten about it to be honest amidst the chaos at the time and also would have missed any correspondence relating to it. I am not sure how to approach this now? Given the default date , this is due to drop off in just 8 weeks time . As I couldn’t recognise the default initially , I queried this with the creditors and have also appealed my decision with the mortgage broker . Now realising that this is legit, I am thinking to just hold off on the full mortgage application for a couple of months until this disappears. I am quite happy to also pay this but wondering if it will have any negative repercussions around the debt being re recorded if I were to get in touch with the lender at this stage .
Any advice would be appreciated ?
Thank you
Sara (Debt Camel) says
The debt should not reappear on your credit record if you settle it after it has dropped off.
Pat says
BT have added 3 defaults to my account after I had BT sport channel through them. It seems unfair that they are reporting this, and there is no regulation on them.
If you have any info or would be appreciated
Weatherman says
Hi Pat
Did you miss payments for the sport channel (or another BT product/service)? If you did, they’re entirely within their rights to add a default to your credit report.
George says
Hi
Really simple question but will any mortgage company re-mortgage me with a default? Can it mean that i just go on a higher interest rate because of it? Or do I have to wait for the remainder years before it gets removed?
Sara (Debt Camel) says
How long ago was the default? Has it been repaid. If so, how long ago? Are there any other problems on yiur credit record?
Stephanie Brims says
Hi my daughter placed a order with studio catalogue for curtains and asked me to pay on my Visa card, Studio cancelled order as they were out of stock and refunded my card,the next month they sent bill for curtains after numerous calls they say they refunded me twice which they didn’t,this was 2018 tonight April 2021 she checked her credit history and it states she owes Studio £122 which is absolute rubbish as she got no curtains and I only got one refund….. summer of 2019 a debt collector phoned to ask for proof I hadn’t been refunded twice and sent proof from bank so we thought that was the end of it…. what else can we do to get it removed from her credit history thank you
Kind regards
Stephanie
Sara (Debt Camel) says
Is the credit record her only issue now, or are they still contacting her to ask her to pay this?
Stephanie says
Yes it is and since the debt collectors in 2019 who took all bank statements we have heard nothing since until my daughter checked her credit rating last night
Kind regards
Stephanie
Sara (Debt Camel) says
Then she needs to make a complaint to Studio and explain what has happened, she provided the evidence to the debt collectors who stopped asking her to pay, but the error still needs to removed from her credit record.
If this isn’t sorted in 8 weeks, she can send the complaint to the Financial Ombudsman.
Stephanie brims says
Thanks we have tried hundreds of times with studio and get nowhere we even got raw deal involved with the Sunday post who took all paperwork to prove she didn’t owe anything I personally want to get a solicitor but not sure if that would help what do you think?
Kind regards
Stephanie
Sara (Debt Camel) says
Has she put in a formal complaint in writing? Was it ignored or rejected
Stephan Brims says
Hi Sara
We have complaint numerous times and to no avail they keep sending statements out to say what she owes which I may add is never the same amount from month to month, we have exhausted all we can think of they’ve had bank statements to prove they didn’t refund me twice,so it’s just been a nightmare I even said under Scottish Law she could be in for compensation with all stress etc she would be entitled to as she was preganat when this all started and living with me that’s why I originally paid
Kind regards
Stephanie Brims
Sara (Debt Camel) says
Then I suggest she sends her complaint to the Financial Ombudsman. See https://help.financial-ombudsman.org.uk/help
Tim Wood says
BarclayCard refunded me £3000 (default charges and fees) for mismanagement of my credit card. It states in the letter that they had mismanaged my account and didn’t look at my needs properly.
I have one default on my credit file from barclaycard during that time – do I have strong grounds to get this removed?
Sara (Debt Camel) says
Barclaycard aren’t normally deleting defaults in this situation.
Did they increase your credit limit to high as well?
How old is the default on your credit record?
Tim says
My default is 3 years old and they also increased my credit limit at the time. They have filed a complaint for me and the ombudsman have said to go through them
Sara (Debt Camel) says
“the ombudsman have said to go through them”
yes, you can’t go stright to the Ombudsman without giving BarclyCard 8 weeks to consider your complaint.
Whether the default is right will depend on what happened before it was added. If your problems were mainly cause by the extra charges, then that is unfair. If your problems were caused by the high credit limnit, you can argue that is unafir. But if say your problems were caused by you losing hours at work, thenthat is the cause of the default and not Barclaycard’s behaviour.
Wait and see what Barclaycard say and come back here then?
John says
Thanks for the great blog.
I would like to write to the credit agencies to ask that my defaults are erased based on the lenders failing to check my affordability. Are there any standard letters I can use, and can the same letter be used for all the different credit agencies?
Sara (Debt Camel) says
Are these lenders still in business?
john says
yes they are. One of them is a high street bank!
Sara (Debt Camel) says
Then it is a waste of time talking to the CRAs, they will just ask the lenders who will say there isn’t a problem.
You need to send affordability complaints to the lenders and ask for a refund and for negative marks to be removed from your credit record. Don’t just ask for your credit record to be cleared – this is just a nice side effect of winning an affordability complaint and getting a refund.
If you can say who the lenders are and what sort of credit (loan, card, overdraft) I can point you to template letters.
John says
Hi Sara,
I had a loan with zopa. credit cards with sainsburys bank, tesco bank, MBNA, Lloyds, Halifax and TSB.
Sara (Debt Camel) says
Template here https://debtcamel.co.uk/refunds-large-high-cost-loans/ for Zopa
And here for credit cards: https://debtcamel.co.uk/refunds-catalogue-credit-card/.
Are you making payments to these debts?
John says
yes, via stepchange, but only £1 a month.
Sara (Debt Camel) says
how muich do the debts add up to? do you have a house with equity?
Ruth says
Hi Sara, I have a question regarding a default incurred after a debt management agency began managing my debts and attempting to negotiate smaller payment amounts on my behalf? I was consistently making payments, the credit card company just refused to accept the lesser amounts and any type of deal offered by the debt management agency, they told me to ignore any contact from the companies they were negotiating with and not to open any letters. So I followed their advice and ended up incurring a default on one of the credit cards. Would I have a case in getting this default removed? Also would there be a case in getting any fees paid to the debt management agency refunded? Thanks
Sara (Debt Camel) says
How long ago was this? Who is the debt management company?
Ruth says
Hi Sara,
It was between 2016-7 and it was with Harrington Brookes.
Thanks
Sara (Debt Camel) says
So during this time the credit card was still adding on interest?
Ruth says
This was the response I got from them when I disputed the default recently:
On 20 October 2016, your account was entered into a long term default payment arrangement, free of fees and interest. This was following the proposals we received and accepted from your appointed financial representative, Harrington Brooks.
As you and Harrington Brooks wished to enter into an arrangement to pay less than the required monthly minimum payment, this meant you were in breach of your credit card agreement.
A Notice of Default was served to you in the post on 20 October 2016, which resulted in your account being defaulted on 22 November 2016.
Sara (Debt Camel) says
So when you said
“ the credit card company just refused to accept the lesser amounts and any type of deal offered by the debt management agency”
Was this before October 2016? How many months had that being going on for before they agreed to the DMP?
Ruth says
I entered into the Debt Management Plan in September 2016, I should’ve included the entire paragraph in the above response- this was received from the credit card company:-
“Since the opening of your account to when the minimum payments were missed from September 2016, we received payments greater than the minimum payment and they were all received on time.
This demonstrated your ability to repay your agreement and the efforts being made to enhance your credit profile.
On 20 October 2016, your account was entered into a long term default payment arrangement, free of fees and interest. This was following the proposals we received and accepted from your appointed financial representative, Harrington Brooks.
As you and Harrington Brooks wished to enter into an arrangement to pay less than the required monthly minimum payment, this meant you were in breach of your credit card agreement.
A Notice of Default was served to you in the post on 20 October 2016, which resulted in your account being defaulted on 22 November 2016”
So I had been making payments consistently before Entering into the DMPin September 2016. If I had of known that I would end up defaulting on the account and for it to be passed on to a 3rd party (Link Financial) I would never have entered into it and I ended up opting out of it after less than a year as most of the money I was paying was to them rather that my debts which had barely shifted until I took matters into my own hands.
Sara (Debt Camel) says
ok, so there wasn’t a period where the credit card company was refusing to accept the lower payments. That would have been one thing to complain to the lender about but it sounds as those there wasn’t a problem.
The lender has done the right thing by default the debt. There is no reason why they should remove the default.
The DMP company’s fees – it is a shame you ever went to a fee-charging DMP firm – StepChange would have done exactly the same for free and all of your payments would have reduced your debt.
You can complain to Harrington brooks about this https://www.harringtonbrooks.co.uk/info/complaints/ and ask for a refund of the fees. HOWEVER the DMP was actually saving you money as no interest was being added. So it was in your best interest to have a DMP.
Can I ask if the debt to Link has been repaid?
Ruth says
Ok thanks for the advice. I do wish I had looked into more options at the time as the Debts weren’t for huge amounts either. Yes I have it all paid off now a couple of years, I always just wondered would I have a case as the default was incurred as a result of the DMP essentially but I understand that it was issued rightfully and it will be the 6 year mark next year at least.
Ruth says
Yes I have it paid off now, I got it paid relatively quickly when I started to manage it myself and the default expires next year just always wondered would the be a case due to the DMP, thanks for your help
Andy says
Hi Sara / weatherman
(Sorry for some reason I can not add a reply to my own comments 29/03/21)
Question can Capital One or any finance company refuse to enter into a payment plan due to not having a Income & Expenditure completed?
I ask as I’ve looked through some old emails and see that prior to the default + payment plan, I accepted an automatic payment plan Oct 19, first pmt Nov 19 (email and it said click here to commence) this was only for one card.
When I tried to get the other card into a payment plan in Nov 19 they refused to do so as I had not completed a Income& Expense
I pointed out that the other plan was accepted without an I&E and they still insisted.
Despite me asking for help in Nov 19 they did not assist until the plan they out both accounts into default.
Sara (Debt Camel) says
Yes. How does the creditor know what you are proposing is reasonable if you won’t show them your situation?
You have a contract with them to pay X a month, you want to pay less, you are the one that has to explain why this is reasonable.
Andy says
Despite the same company already agreeing and putting into place a plan for another account without an I&E?
Surely thats a “one rule for one” mentality.
A company contacts the account holder about X amount of accounts, and not correspond per account?
Sara (Debt Camel) says
What is the problem with you supplying an I&E? It is just simpler to do this than argue about it, surely?
Andy says
I did in the end.
They argued that the payment plan I had already entered into and made payment on would be terminated until one was supplied for the second account.
Lana Hanson says
Hi Sara
I have recently noticed a default on my credit file which was not there in January 2019 when I was last on. The default is with BT when I left my old address in February 2015 & didn’t see that I had to pay the final payment manually. I gave a forwarding address of my mother & received no letters in the year she was still at this address, I also can’t find any emails & have not received a call. The default on my credit file is dated August 2016. Now I have looked back at the information & I owe this money (£32.94) & more than happy to pay it. However, my query is, why or how can they chose a default date 1.5 years after the fact & if I write to them, include a cheque for the £32.94, do you think I can ask them if they would consider correcting the default date to February 2015 as I’ve not received any communication? This is the ONLY debt I have & it’s messing up my credit rating for £32.
Your advice would be very much appreciated.
Lana
Sara (Debt Camel) says
I think you should ask them to remove the default as they never told you you owed a balance – if they refuse then argue foe the default date to be earlier.
Victoria says
Hello Sara,
I hope you could help or give me some advise.
I have been using Payday UK loans for some time in 2017
I did miss the claim date as they send information on claim to my old email adress and i found out about company going bust from friends when claims have been closed.
I try to contact them regarding my credit score and asked if my credit score can be updated – or it just people scores who made a claim will have credit scores updated. They replied with the message that they can’t update my credit score as I didn’t made claim when it was asked. And they will only update scores for people who made a claim. And they only can change my missed payments to the default as they can see they were marked mossed and settled instead of Default.
So a little story about my loans
Only Last of them had missed payments and have been marked as missed payments instead of default.Rest of them have been marked as settled.
My question is is there is any chance i could do anything by removing something or I just should live with it untill it will be removed after 6 years from settled date.
Will be thankfull for any advise.
Thank you
Sara (Debt Camel) says
If you wait another 6 months or a year, at that point ICL will no longer be answering questions from Credit Reference Agencies and you will be able to get the CRAs to “suppress” the record so no-one else can see it. But it is too early to do this now.
Victoria says
Hi Sara,
Thank you so much for your reply.
Much appreciated.
Could you just tell me one more thing.
What should I do after 6-12 months – should I do something on my credit record?
And how I could know when is right time to do so – or just wait as long as possible?
Again thank you so much for your time answering theese questions.
Sara (Debt Camel) says
I suggest you look at the Money Shop page https://debtcamel.co.uk/money-shop-to-close-two-million-customers-will-be-informed/ every few months and see what that says.
Steve Smith says
Hi Sarah,
I had a shop direct account which became unaffordable due to personal issues around mental health, PTSD and problem gambling. I demonstrated I had an inability to pay for around 3 months until they then passed onto a recovery agent- Intrum. I have since logged an irresponsible lending complaint with shop direct and await their outcome. The question I have is why Shop Direct failed to register a default on my account back then and if I can challenge this? To date my debt is still showing some time after the default would have dropped off, it shows as an open account with Intrum. The problem is my payment plan would mean the debt showing on my credit file for the next 20 years.. Is this allowed to happen given the amount of time that has passed and can you offer any further advice. Thanks for everything you do btw!
Sara (Debt Camel) says
Are Intrum collecting on behalf of Shop direct? or did they buy the debt from Shop Direct? If you aren’t sure, look at your credit record – is it in intrum’s name?
Steve says
Hi Sara, Intrum have purchased the debt according to credit file. Thanks for replying
Sara (Debt Camel) says
when was it sold to Intrum?
Steve says
Hi- It was January 2015
Sara (Debt Camel) says
Then I suggest you send Shop Direct a complaint asking them to add a default at the point they sold the debt to intrum. Intrum will then have to add that default date.
Matt says
Sara,
I’ve managed to get a default removed from my credit profile from the original lender. The debt got sold to a debt collector and has been paid so shows as satisfied. The original lender has since removed the default from my credit profile however the same default from the debt collection agency still shows. Should this be removed also?
Sara (Debt Camel) says
Why did the original lender delete the default?
Matt says
Because I put in a claim saying it should never have been lent due to affordability. The lender agreed with the claim and removed the default from the file
Sara (Debt Camel) says
Then you can ask the debt collector to delete the default as well – send them the email you had from the lender agreeing to delete the default.
Henry says
Hi Sara,
I took out an IVA on 17 April 2015 with Creation finance as one of the creditors. On my credit file, the default date is recorded as January 2019. I now understand that this is the date Creation sold the debt to PRA group. I have contacted PRA group, and they claim to have the correct date of 17 April 2015 on their records so there’s nothing they can do from their end. However, Creation finance can’t locate my details anymore, so they can’t amend the default date.
What do you advise I do?
Sara (Debt Camel) says
Send Creation a complaint in writing. Use their form here: https://www.creation.co.uk/about-us/customer-care.
It is their job to sort your credit record out.
Matt says
Hi Sara
Can I ask if I have a default from a Barclays card and they have sold the account to Robinson way . I then sent a cca to Robinson way and they didn’t have the paper work so it became unforcedable . Robinson way removed the entry on credit karma but Barclays are showing the loan as default on Experian and eqifax . Can I ask Barclays to remove the data as they don’t own the account anymore?
Thanks
Sara (Debt Camel) says
No. The debt existed and you defaulted on it. the fact the debt collector can’t produce the CCA is irrelevant.
What date was the default?
Matt says
Hi Sara
The default date was June 2016 , just seen it on equifax and Experian, but Robinson way removed it from my trans union file . So just was hoping as they sold it would just be down to debt collector to put the default notice on.
Thanks
Sara (Debt Camel) says
so it will disappear in June 2022. I can’t see a reason why Barclaycard would delete it.
Anita Gardner says
Hello all, we had a payment holiday in Covid lockdown, then the payment holiday was thought to be extended but there was a signed letter oversight that meant the agreement wasn’t authorised. We couldn’t get through on the phone as the lines were always busy at this time. Now the account s have defaulted. Credit and loan. We are paying back the same amount as we did before, but the damage is done for the credit file. Now it’s defaulted can we make the payments smaller to make life easier?
Sara (Debt Camel) says
Can you actually afford the repayments now?
What is the rest of your financial situation like? And is this the only problem on your credit record?
Can you say some more about the signed agreement problem?