Removal of default notice from credit file

Freddiesmom

Hello, I'm after some help regarding a debt I have with Barclays Bank. The debt is for £1880 and becomes statute barred from September 2010. I may have the opportunity to pay off this debt in full as a lump sum within this next month but had a few questions as to how this will affect my credit file.

1. If I pay the debt in full, would the item still disappear from my credit file from September 2010, or would it remain on there for another 6 years from the date I paid the debt?

2. What are my chances of negotiating the removal of the default notice from my credit file now, for exchange of full lump sum payment?

Any information would be gratefully received!

LeeSouthEast

1. My understanding is that unfortunately it would remain for a further 6 years.

2. Slim, to none. But no harm in trying. Technically that's blackmail though

Freddiesmom

Quite silly from their point of view, don't you think? I would be better off to ignore debt for one more year and have better credit file than pay off whole debt and have notice against file for another 6 years!

I can see your point about it seeming like blackmail, but I have no problem with playing the banks like that after the unfair treatment I have received in the past!

LeeSouthEast

Oh gosh no, neither do I. Just a bit of a warning to word your offer carefully

GeorgeUK

Freddiesmom, i think you would be better asking the nationaldebtline about this directly.

1. My understanding is that an account falls off your credit file 6 years after the account is closed. I don't think paying it off will result in it being on your file for a further 6 years.

2. As Lee says, the chances are pretty slim, but if you do try to arrange this i would do so over the phone in the first instance. If you put it in writing you would be restarting the clock as this would be acknowledging the debt.

DarkConvict

GeorgeUK wrote: »

Freddiesmom, i think you would be better asking the nationaldebtline about this directly.

1. My understanding is that an account falls off your credit file 6 years after the account is closed. I don't think paying it off will result in it being on your file for a further 6 years.

2. As Lee says, the chances are pretty slim, but if you do try to arrange this i would do so over the phone in the first instance. If you put it in writing you would be restarting the clock as this would be acknowledging the debt.

Good advice. You should get professional advice from national debtline. Its good you want to pay it off, but if its better for your credit report not to do it...

Freddiesmom

Thanks for advice so far...

Thought I'd give an update;

I phoned the debt recovery company that has bought the Barclays debt I owe and explained the situation. I asked if they would be willing and able to remove the default notice from my credit file if I were to pay the balance in full now. The guy said that although he needed to check this over with supervisor he felt they would be willing to do this. I asked for him to put the offer in writing and he agreed to do this. I wasn't expecting it to go so easy!

Anyone had success with suggesting similar compromises to creditors?

moneybuster

Just be careful, they may remove the default but replace it with part payed or not satisfied or something to that effect.

Regards MB

PNPSUKNET

when they remove the default, you are aware that it will put a no.3 on all the late payments

fermi

The debt will be removed from your credit reported 6 years from the original default date.

Settling the debt now will NOT make it stay any longer.

MrsTinks

Fermi is correct on this one - and doubtful that they will infact remove the default notice - they would mark it settled which in it self makes a difference to your file...