Default and Credit History Question

sgx.saint

Hey All.

I am currently in a DMP/Informal Arrangement with my creditors.

I have about 6 creditors in total.

I have defaulted on all of them which naturally has allowed me to start my DMP.

My question is, how long till me defaults clear?

I mean, now that a default is registered what is happening to my credit history?

Is it 6 years to my credit file is clear from all defaults? Or is the default ongoing till you clear you debt?

I am a little confused about it.

Thanks

Mike_St_Helens

I think... from when I was an analyst. As you still have contact and are paying into the default it will stay on file until clear, then go after 6 years of clearance and no contact.

correct me please if im wrong.

dizzy_izz

Default will stay on your credit record for 6 years from date of default not from when it is paid off, but when you have settled defaulted account it can be worth contacting creditors as sometimes they will actually remove the default - its always worth asking.

sgx.saint

So, now that I am paying off the debt via a DMP, this wont be showing on my credit file? correct?

All that will be showing is the default and the amount, which then clears in 6 years?

Mike_St_Helens

dizzy_izz wrote:

Default will stay on your credit record for 6 years from date of default not from when it is paid off, but when you have settled defaulted account it can be worth contacting creditors as sometimes they will actually remove the default - its always worth asking.

Creditors will not simply remove a default, even by asking. They will only do this in very rare circumstances, IE : if they are at error or there is a legal issue.

I wasnt too sure about the 6 year thing, I was under the assumption when I completed my CRA Exams it is only cleared off your file after 6 years of non payment or non contact. However most banks 'sell' the default on and DCA's then collect the payment, therefore you have no need to contact the orig lender and the default will infact fall off your file after 6 years, even though you are still paying the DCA.

dizzy_izz

Mike_St_Helens wrote:

Creditors will not simply remove a default, even by asking. They will only do this in very rare circumstances, IE : if they are at error or there is a legal issue.

Many people asssume that creditors won't remove legitimate credit data, however in my experience in 1/3 of cases data can be removed early either by asking the creditor or by disputing data with CRA's, and the creditor failing to respond within the 28 day legal time frame.

Mike_St_Helens

Like i said, IE : if they are at error or there is a legal issue. - not so sure about a 1/3 of cases mind.

sgx.saint

So, just to clarify?

My default is from the date it was issued that it is removed or from the date it is cleared/settled?

If the debt is sold onto a Debt Recovery Company does this therefore show on the credit file as being "settled", because technically it has been. The debt is no longer with the issuing creditor as it has been boughy by a third party?

Mike_St_Helens

Yeah, Thats the one.

can be a little confusing sometimes. Im not too sure about the chances of getting it removed from your credit file mind.....

If you want any further info just give me a shout. Im an x credit analyst for a major bank and have mqny qualifications etc etc in the field. Not that thats stopped me from being reckless mind !

Mike

sgx.saint

I used to be a Financial Advisor lol .... and yes, its often those with the knowledge that still manage to fudge things up

I blame my heart, I should really stop making financial decisions with it, and stick to using my head.

Well that isnt to bad in relation to the defaults as most of my debt is now owed to debt management companies so my defaults should be regarded as settled

Its a bonus in way, in my eyes anyway.

Mike_St_Helens

Ha.... same as me then... buy with the heart and deffo not with the mind. Still....

6 years isnt that long !..... is it ???