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  • FIRST POST
    • tain
    • By tain 8th Mar 17, 9:14 AM
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    tain
    Account on Credit File in Status 'Default'
    • #1
    • 8th Mar 17, 9:14 AM
    Account on Credit File in Status 'Default' 8th Mar 17 at 9:14 AM
    I had a credit card about almost 6 years ago, which I defaulted on. Since then, I've paid the credit card off in full (5 years ago), and the card should have been cancelled at that stage.

    I've recently checked my credit file, and the account is still showing up as status 'default' rather than 'satisfied'. I called the card company, they realised their mistake and closed the card. They also sent a rapid update to Experian to show the card had been paid off 5 years ago and was closed at that time.

    The problem is, that account is still showing as status 'default' on my file. I've had other accounts that had defaults, but now show 'satisfied' and have done ever since I paid off the balance 5 years ago.

    I totally understand that the default itself wont leave my file until after 6 years, but it was my understanding that the account status should reflect its current status, which is satisfied.

    Am I wrong in my thinking?

    I also should note that when the bank did the rapid update to Experian, it showed up the next day as updated, but made no impression on my credit rating or anything else on the account. Another reason why I'm lead to think that the update from my bank hasn't been processed by Experian properly.
Page 1
    • StopIt
    • By StopIt 8th Mar 17, 9:21 AM
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    StopIt
    • #2
    • 8th Mar 17, 9:21 AM
    • #2
    • 8th Mar 17, 9:21 AM
    Get in contact with Experian to see what's happening. It may have been entered into their system but hasn't updated fully yet?
    • zx81
    • By zx81 8th Mar 17, 9:22 AM
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    zx81
    • #3
    • 8th Mar 17, 9:22 AM
    • #3
    • 8th Mar 17, 9:22 AM
    When was it updated? Has your file had a monthly update since then?


    I also should note that when the bank did the rapid update to Experian, it showed up the next day as updated, but made no impression on my credit rating or anything else on the account.
    Originally posted by tain
    Your rating doesn't reflect much of anything, so ignore that.
    • tain
    • By tain 8th Mar 17, 9:39 AM
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    tain
    • #4
    • 8th Mar 17, 9:39 AM
    • #4
    • 8th Mar 17, 9:39 AM
    When was it updated? Has your file had a monthly update since then?



    Your rating doesn't reflect much of anything, so ignore that.
    Originally posted by zx81
    The Experian account shows that it was updated last week, and is now showing the credit card as closed. It's just the status that hasn't changed. I can't see why this wouldn't have been updated at the same time.

    The rating does reflect changes to be fair. If an account was showing as in default, and then updated to show satisfied, I'm almost certain that the rating would change to reflect this. I don't care what the rating shows, but it is certainly a decent indicator of change.

    For instance - my wife recently updated her file to show she's changed her name after we got married. Her credit rating instantly changed as they didn't link her new name with being on the electoral roll. We wrote to experian, and her rating immediately updated again to show the new information.
    • zx81
    • By zx81 8th Mar 17, 9:45 AM
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    zx81
    • #5
    • 8th Mar 17, 9:45 AM
    • #5
    • 8th Mar 17, 9:45 AM
    But there's too many other reasons for it to fluctuate for you to be able to pick out a change due to any given reason.
    • tain
    • By tain 8th Mar 17, 10:04 AM
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    tain
    • #6
    • 8th Mar 17, 10:04 AM
    • #6
    • 8th Mar 17, 10:04 AM
    My main point isn't about credit ratings, I'm just using that as one of many indicators as to what is happening on my account.

    The key information I'm after is if an account that has been satisfied should still be showing up as status 'default'. None of my other accounts have this status, so I want to know what is likely affecting this one credit card.
    • tain
    • By tain 8th Mar 17, 10:07 AM
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    tain
    • #7
    • 8th Mar 17, 10:07 AM
    • #7
    • 8th Mar 17, 10:07 AM
    But there's too many other reasons for it to fluctuate for you to be able to pick out a change due to any given reason.
    Originally posted by zx81
    This isn't accurate. You're making a lot of assumptions about our lives and our financial activity.
    • zx81
    • By zx81 8th Mar 17, 10:12 AM
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    zx81
    • #8
    • 8th Mar 17, 10:12 AM
    • #8
    • 8th Mar 17, 10:12 AM
    I'm not assuming anything about your life. I'm just indicating that credit scores fluctuate due to reasons beyond your control.

    Anyway - back to the point - have you queried the status with Experian?
    • tain
    • By tain 8th Mar 17, 10:20 AM
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    tain
    • #9
    • 8th Mar 17, 10:20 AM
    • #9
    • 8th Mar 17, 10:20 AM
    I'm not assuming anything about your life. I'm just indicating that credit scores fluctuate due to reasons beyond your control.

    Anyway - back to the point - have you queried the status with Experian?
    Originally posted by zx81
    Can you give examples of a fluctuation that both wouldn't be in our control, that wouldn't be explicitly shown on our file, and that we would have no knowledge of? These are the assumptions being made.

    Yes, and their call centre was useless. I don't even think they understood what I was saying. They've said they will put something on the account to look in to it, but that might take a long time. In the meantime, I'm looking to understand if I have just totally misunderstood the situation.
    • StopIt
    • By StopIt 8th Mar 17, 10:25 AM
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    StopIt
    Can you give examples of a fluctuation that both wouldn't be in our control, that wouldn't be explicitly shown on our file, and that we would have no knowledge of? These are the assumptions being made.

    Yes, and their call centre was useless. I don't even think they understood what I was saying. They've said they will put something on the account to look in to it, but that might take a long time. In the meantime, I'm looking to understand if I have just totally misunderstood the situation.
    Originally posted by tain

    You can control your credit history, which you're doing by correcting mistakes like you have.


    You cannot control the credit score, which may as well be an RNG. See the many posts asking why their credit score changed for random events, because the way the scoring system works is weird, arbitrary and has ZERO impact on how lenders view you when it comes to credit applications because they cannot see it.


    More importantly, as no lenders will see this credit score, only your history, if you're paying Experian £30 a month for you and your partner, you're throwing money away.


    Again, if Experian have received the info correctly from your bank the change to Settled will show on your next report, which is generated monthly (And accessible for free via the MSE Credit Club). Remember there are 2 other CRA which can be accessed via Noddle and ClearScore which you will need to make sure that this default - if logged with them - will need to be corrected if needed.
    Last edited by StopIt; 08-03-2017 at 10:27 AM.
    • zx81
    • By zx81 8th Mar 17, 10:26 AM
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    zx81
    Can you give examples of a fluctuation that both wouldn't be in our control, that wouldn't be explicitly shown on our file, and that we would have no knowledge of? These are the assumptions being made.
    Originally posted by tain
    - A change in assumptions around income.

    - A change in assumptions around job security due to economic changes.

    - A change in their view of an average balance on a credit card.

    - A recalibration of their scoring system, such as the one last year that took points off thousands of scores and caused wide spread panic on these boards.

    As I say - none of this is intended as an assumption around you. CRAs operate a one size fits all scoring system so constantly tweak it, causing fluctuations.

    There is also a more cynical view that scores that don't change often wouldn't be seen as worth paying for.
    • tain
    • By tain 8th Mar 17, 10:32 AM
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    tain
    Can I politely ask if anyone knows about a credit file showing a status of 'default,' when the account was settled 5 years ago please?
    • Chappaz
    • By Chappaz 8th Mar 17, 10:40 AM
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    Chappaz
    Can I politely ask if anyone knows about a credit file showing a status of 'default,' when the account was settled 5 years ago please?
    Originally posted by tain
    If the account was settled and closed 5 years ago, the entire account (including the default) should drop off after 6 years, so in one year's time.
    • tain
    • By tain 8th Mar 17, 10:42 AM
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    tain
    If the account was settled and closed 5 years ago, the entire account (including the default) should drop off after 6 years, so in one year's time.
    Originally posted by Chappaz
    I understand that. It's the current 'status' that I'm querying, rather than when defaults disappear.
    • StopIt
    • By StopIt 8th Mar 17, 10:51 AM
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    StopIt
    Can I politely ask if anyone knows about a credit file showing a status of 'default,' when the account was settled 5 years ago please?
    Originally posted by tain

    You've already had the answer, you contact the CRA in question.


    If they haven't updated your credit file in a timely fashion (Give it a month or so), you ask again. If they don't help, you raise a complaint and if they don't comply raise a complaint with the ICO.


    You've done the first thing, but haven't waited for the 2nd bit. Come back in a month and then see if Experian have updated your files correctly. if not, go to the next stage, etc.
    • tain
    • By tain 8th Mar 17, 11:52 AM
    • 463 Posts
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    tain
    You've already had the answer, you contact the CRA in question.


    If they haven't updated your credit file in a timely fashion (Give it a month or so), you ask again. If they don't help, you raise a complaint and if they don't comply raise a complaint with the ICO.


    You've done the first thing, but haven't waited for the 2nd bit. Come back in a month and then see if Experian have updated your files correctly. if not, go to the next stage, etc.
    Originally posted by StopIt
    I understand the process. I've outlined that.

    I asked if anyone on here knew the answer, as waiting a month or two for Experian to pull their finger out doesn't help a mortgage application. I'm guessing the answer is 'no', no one on here does know the answer. Which is strange, given then number of responses.
    • StopIt
    • By StopIt 8th Mar 17, 12:11 PM
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    StopIt
    I understand the process. I've outlined that.

    I asked if anyone on here knew the answer, as waiting a month or two for Experian to pull their finger out doesn't help a mortgage application. I'm guessing the answer is 'no', no one on here does know the answer. Which is strange, given then number of responses.
    Originally posted by tain

    It may not, but that's the breaks. There's a complaints procedure, like I said, but you need to give Experian a chance to do their duty updating your file. If they don't, you follow the official complaints procedure.


    No, you cannot short-circuit that, no, just because you want to make an application now (And a mortgage broker should see a up to date report when they push through a check, where-as you only see a monthly report on Experian) will not change this.


    What else do you want to know? An old default, settled or not will still affect an application, which you should be seeing a good broker to begin with who can advise you properly. The difference between seeing a Settled Default and an Unsettled one wont be a any great difference on a 5 year old default so long as your credit history since has been in good standing.
    • tain
    • By tain 8th Mar 17, 12:21 PM
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    tain
    It may not, but that's the breaks. There's a complaints procedure, like I said, but you need to give Experian a chance to do their duty updating your file. If they don't, you follow the official complaints procedure.


    No, you cannot short-circuit that, no, just because you want to make an application now (And a mortgage broker should see a up to date report when they push through a check, where-as you only see a monthly report on Experian) will not change this.


    What else do you want to know? An old default, settled or not will still affect an application, which you should be seeing a good broker to begin with who can advise you properly. The difference between seeing a Settled Default and an Unsettled one wont be a any great difference on a 5 year old default so long as your credit history since has been in good standing.
    Originally posted by StopIt
    I didn't ask any of that, but thanks for taking the time to tell me what you think.


    If anyone knows if a settled account can or should still show the status as 'default' on their credit file, I will be very grateful.
    • StopIt
    • By StopIt 8th Mar 17, 12:37 PM
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    StopIt
    Well, since the information is there publicly on Experians website?


    I’ve paid a default, what happens next?
    Once paid the account is updated to show as satisfied and a satisfaction date may be recorded.
    Making a payment will not change the default date, or the date it comes off your credit report.
    If a partial settlement is agreed then a flag will be added to the entry to show this and the account marked as satisfied.
    Importantly the default date will not change and the account will still be removed 6 years from the default date.


    No, the default doesn't go away, it'll just be marked as Default: Satisfied instead of Default: Unsettled.


    That's the change that Experian should be making for you, and what my initial reply was referring to for you to contact Experian for them to sort out. Once they do, it'll be updated and say when the default was satisfied. If it does not update, raise a complaint as stated like 5 times. Anything else?
    • tain
    • By tain 13th Mar 17, 4:00 PM
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    tain
    For someone offering help, you've been pretty rude and condescending.

    You could have answered my question with a single word - 'yes'. Instead, you decided you needed to give advice, and I simply HAD to follow it, despite not having my question answered.

    I had already gone to Experian and asked for details. I had already been given a response from them. Their response is not what you have copy and pasted, so I don't feel I should apologise for being misled by Experian. I am already progressing it as a complaint, but being well informed prior to progressing this isn't something I feel I need to be spoken rudely regarding. It's a sensible thing to do, despite you telling me otherwise.
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