Help Removing unfair Late payments and defaults from credit report

hardcore_since84

Hi How are you,

I haven't been to this forum in such a long time but I have a query regarding removal of unfair defaults and late payments from my credit report.

Here's the story so far...

18 months ago I left full time employment to study a full time business and entrepreneurship degree (I advanced straight to the second year). I had some consumer debt in the form of loans and overdrafts totalling around £14k. I had a full consultation with the cccs (consumer credit counselling service) and I was advised to make arrangements with my creditors to pay minimum payments of £1 per month.

I have been making these agreed payments on a consistent monthly basis.
However according to my experian credit report- my creditors have been marking me down as paying late and defaulting. Even though I have been paying the agreed amount on time.

I wish to contest these unfair 'lates' and 'defaults' and have them removed from my credit report.

I understand that I have to write to my creditors but do any of you have a really good letter template for me to utilise or know of any legislation that would help my case?

Now that I am to set up my own business credit rating/score is of the upper most importance to me.

I should mention that When the business is set up and trading I aim to increase my monthly payments to creditors in order to pay the outstanding balance.

Thanks for your help guys

Sunnylooloo

Can't help but would also be interested in what responses you get as in a similar situation making small regular monthly payments as agreed but yet still marked down as in Defualt or late.

LL

Tixy

Hi

Even if you have agreed token/reduced payments you have still defaulted on the original terms and conditions so they are within their rights to enter a default against you - the default date is usually around 3months after you stop paying the contracted amount (though they should have sent a default notice out to you prior to doing so - you might need to check if you received one or to ask for proof that one was sent).

hardcore_since84

Thanks Tixy

What is my best course of action now then if I want to improve my credit score?

I'm in the very poor category at 426

I'm still making my monthly payments on time and I'm now on the electoral role.

Is it worth me still contesting the defaults via letter?

let me know thanks

Tixy

Do you remember if they sent you a default notice? If not you could request a copy of it (to check that they sent it and to see if it was compliant), however even if you got it removed on a technicality I think they would then issue another default (which would put you in a worse position as the default would stay on longer).

As it stands if your defaults were around 18months ago they will remain for another 4.5years.

The only other option that I know of it sometimes you can bargain with a creditor to settle the debt with a lump sum on the condition the default is removed. They do not have to do this and it would be a negotiation. I don't know how often this works for people but have seen it suggested (but obviously depends on whether you are in a position to be able to pay a lump sum).

Aside from those I think you will struggle to improve your rating very much for the next few years.

DarkConvict

The only agreed payment that matter is the contractual one that you signed at the time you got the credit, this was the agreement.

If you lowered payments, these would be informal payment arrangements and considered to be under the minimum amount.
Any payments under the minimum is considered a missed/late payment and will be put on your credit file. Miss roughly ~3 and you will get a default notice and finally a default on the credit file.

This damage is generally unrepairable. Only the creditor can remove it, and unless you can come to an arrangement like paying in full they are unlikely to agree (not that they usually agree when this offer is made anyway)
The only way your rating will really increase now is to wait 6 years for the default to fall off.

Dont bother buying a creditor score the number is meaningless, each creditor scores you differently! If it helps experian has 2 tables one for people with or without defaults, if you have a good file with a default you might score 600. The default comes off and your score is now 450. Yes it dropped, this is because you aren't as good as other people with no defaults. See the score makes no sense.