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  • FIRST POST
    • geeuk
    • By geeuk 10th Jun 17, 2:25 PM
    • 16Posts
    • 1Thanks
    geeuk
    Satisfying 2 Defaults from 2012
    • #1
    • 10th Jun 17, 2:25 PM
    Satisfying 2 Defaults from 2012 10th Jun 17 at 2:25 PM
    Hi,

    I have 2 Defaults:

    One from PRA Group Defaulted in October 2012 for £845.

    One from A P S Limited (Cash Plus) in May 2012 for £271.

    Both Defaults are outstanding.

    My current account is all spot on with 5k O/D limit and have various card accounts with no balance on them.

    I am considering applying for a mortgage soon, I have applied for a mortgage in principle with my bank (Halifax) and got accepted in principle for 4.75 times my salary they done a soft search on my credit file.

    My question is:
    Should I pay off the 2 outstanding defaults and wait for it to hit my credit report as satisfied before putting my mortgage application through Halifax ?

    It has been over 5 years since defaulted but I am just confused that the underwriters will decline my application because of the defaults outstanding.

    I am also considering writing to debt collectors them asking for them to remove the defaults after paying them off because of the time that has passed over. I highly doubt they will remove it.

    Any suggestions or advice would be excellent.

    Peter
Page 1
    • sourcrates
    • By sourcrates 10th Jun 17, 2:55 PM
    • 12,700 Posts
    • 12,042 Thanks
    sourcrates
    • #2
    • 10th Jun 17, 2:55 PM
    • #2
    • 10th Jun 17, 2:55 PM
    They won't remove them.

    Your credit file must remain accurate.

    Can you not wait until the defaults have dropped off your file altogether ?

    You can still be chased for these debts.
    I'm a Board Guide on the Debt-Free Wannabe, Credit File And Ratings, and
    Bankruptcy And Living With It, boards. "I volunteer to help get your forum questions answered and keep the forum running smoothly".
    Board guides are not moderators and don't read every post. If you spot an abusive or illegal post then please report it to forumteam@moneysavingexpert.com. Any views are mine and not the official line of MoneySavingExpert.com.

    For free debt advice, contact either : Stepchange, National Debtline, or, CAB.
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  • National Debtline
    • #3
    • 12th Jun 17, 2:29 PM
    • #3
    • 12th Jun 17, 2:29 PM
    Hi Geeuk,


    Credit files are influenced by many factors at the same time to determine your overall credit worthiness. This can include your age, whether or not you are on the electoral role, anyone you may be financially associated with, and of course, your credit history.


    Outstanding defaults, even old ones, could be a concern to a future mortgage lender. As sourcrates has said, these debts are still enforceable and can result in a CCJ and that could be a big concern for a lender. If you are in a financial position to pay these off, then you should do that ASAP. I am afraid you are not going to be able to get the defaults removed, and they are still going to show for another 12-18months (or so), but a settled default is better than an outstanding one. Best of luck,


    Laura
    @natdebtline
    We work as money advisers for National Debtline and have specific permission from MSE to post to try to help those in debt. Read more information on National Debtline in MSE's Debt Problems: What to do and where to get help guide. If you find you're struggling with debt and need further help try our online advice tool My Money Steps
    • poppasmurf_bewdley
    • By poppasmurf_bewdley 12th Jun 17, 7:00 PM
    • 5,059 Posts
    • 5,202 Thanks
    poppasmurf_bewdley
    • #4
    • 12th Jun 17, 7:00 PM
    • #4
    • 12th Jun 17, 7:00 PM
    In a little over 12 months time, both will have passed the six year mark and will drop off your credit file.

    If you haven't acknowledged the debts and/or made a payment on either in the previous five years, then by the time they drop off they will also be statute barred and you won't need to pay them.
    "Annual income twenty pounds, annual expenditure nineteen pounds nineteen and six, result happiness. Annual income twenty pounds, annual expenditure twenty pounds nought and six, result misery." Mr Wilkins Micawber in David Copperfield by Charles Dickens.
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