Defaults

Options
clo87
clo87 Posts: 36 Forumite
in Credit file & ratings
Hi All,

I wonder if anyone can help me. I have a number of defaults on my credit file which are due to drop off in late 2013/early 2014.

I have paid off the majority of them, but I still owe about £2000 on two of them, which im paying in monthly installments.

What I would like to know is, what happens to those debts when the default drops off? Will they disapper from my credit file completley or will they still show but as still in arrears? I will continue to pay them as I want to clear them, but can they just decide to re-default me? Or try to get a CCJ?

Also, if I apply for a mortgage, do I have to disclose the debts as they will not be on my credit report?

Many thanks

Comments

  • Experian_company_representative
    Experian_company_representative Posts: 2,134 Organisation Representative
    First Anniversary Combo Breaker
    Options
    Defaults drop off your credit report after six years and regardless of the current balance, so once they expire they won't be visible to lenders through a credit check.

    James Jones
    “Official Company Representative
    I am an official company representative of Experian. MSE has given permission for me to post in response to queries about the company, so that I can help solve issues. You can see my name on the companies with permission to post list. I am not allowed to tout for business at all. If you believe I am please report it to forumteam@moneysavingexpert.com This does NOT imply any form of approval of my company or its products by MSE"

    Posts by James Jones, Neil Stone, Stuart Storey & Joe Standen
  • fermi
    fermi Posts: 40,546 Forumite
    First Anniversary First Post Combo Breaker Intrepid Forum Explorer
    Options
    They are not allowed to re-default you.

    They could go for a CCJ, but if you are continuing to pay then there would is no more reason why they would bother after the default drops off than before.
    Free/impartial debt advice: National Debtline | StepChange Debt Charity | Find your local CAB

    IVA & fee charging DMP companies: Profits from misery, motivated ONLY by greed
  • Thrugelmir
    Thrugelmir Posts: 89,546 Forumite
    Name Dropper Photogenic First Anniversary First Post
    Options
    clo87 wrote: »
    Also, if I apply for a mortgage, do I have to disclose the debts as they will not be on my credit report?

    The outstanding monthly balances will appear on your credit history until they are over 6 years old.

    If you have entered into an arrangement to pay with the creditors, this too will noted on your record.

    Failure to disclose the correct information on a mortgage application is in effect fraud, i.e. lying in attempt to deceive. Not advisable to attempt. As UK mortgage lenders share such information through the NationalHunters database.
  • The_Boss
    The_Boss Posts: 5,849 Forumite
    First Anniversary First Post Combo Breaker
    Options
    Experian_company_representative wrote: »
    Defaults drop off your credit report after six years and regardless of the current balance, so once they expire they won't be visible to lenders through a credit check.

    James Jones

    I've never understood why this is the case. Credit card/loan accounts do not drop off after 6 years if still active. Seems to give those with defaults an advantagr over us without as soon as they drop off.
This discussion has been closed.
★ ★ ★ Meet your Ambassadors

Categories

  • All Categories
  • 343.2K Banking & Borrowing
  • 250.1K Reduce Debt & Boost Income
  • 449.7K Spending & Discounts
  • 235.3K Work, Benefits & Business
  • 608K Mortgages, Homes & Bills
  • 173.1K Life & Family
  • 247.9K Travel & Transport
  • 1.5M Hobbies & Leisure
  • 15.9K Discuss & Feedback
  • 15.1K Coronavirus Support Boards