Defaults - once the six years is up

Madison

Are defaults removed from your credit record as soon as the six years is up or does it take a month or so? I have two from November 2003 and I'm wondering when would be a good time to check my record on a free, month's trial.

TMoose

I would suggest some time in December. For example, my Egg account (in default) updates once a month on approximately the 8th, my default was registered on 15th March, so I would only expect to see this disappear by 9th/10th April. Plus a week or so for luck

So I'd say wait 'til Xmas and add to the celebration!

Moose

Madison

Thanks.

In that case I'll leave it until the new year as the last time I looked, one of them was first reported on 29/11/03. I take it even if there's still an outstanding balance, the default will still come off, given that I've made regular payments since then?

TMoose

Yes, the default is removed after 6 years whatever the balance on the account. The balance remains open though - so keep paying until you can get that magical "Settled" marker.

To quote from Experian "A defaulted account is removed from your report after six years whether or not you have paid the debt in full. If you have paid some of the debt off, the balance should show how much you still owe. "

Madison

Excellent - thanks again.

fermi

TMoose wrote: »

Yes, the default is removed after 6 years whatever the balance on the account. The balance remains open though - so keep paying until you can get that magical "Settled" marker.

To quote from Experian "A defaulted account is removed from your report after six years whether or not you have paid the debt in full. If you have paid some of the debt off, the balance should show how much you still owe. "

That explanation from Experian can be slightly misleading.

Once the six years are up ALL account information is removed prom your report. That includes payment and settlement information.

So once the default is gone, payment history and settlement status no longer effect your report.

TMoose

fermi wrote: »

That explanation from Experian can be slightly misleading.

Once the six years are up ALL account information is removed prom your report. That includes payment and settlement information.

So once the default is gone, payment history and settlement status no longer effect your report.

Interesting, so effectively the debt acts as if it was "settled" on default date, and drops off your report?

Mind you, I paid mine off this morning (18months before the default goes)...

fermi

Not settled. It is no longer recorded on your file at all.

Notice that Experian says "A defaulted account", not just the default.

The second sentence about payment information should really mention that it only applies to before the six years are up.

I've moaned at Experian to change it to make it clearer, but so far "deaf ears".

TMoose

I learn something new every day