Can defaults be removed from your credit report before the full six years has passed?

Katieve75

Hi,

I read on a website that you can ask companies to 'kindly' remove default notices if the defaults were for very low amounts - is this true and has anyone done this? The website also said that if you claim that you did not receive the offical notice, you can ask to have the default removed. I honestly can't remember receiving any notices...but it was quite a while ago.

I (stupidly) didn't know how badly defaults affect your credit score - i thought it was only CCJ's. I waited for my one and only CCJ to disappear of my report in May of this year, which it did. "Fantastic!", I thought, only to realise that there were some default notices against my account back in 2008. Since those hiccups, I've turned over a new financial leaf. All my bills are paid on time etc. My partner and I now want to buy a house together but there is no way I'd be considered for a mortgage. The highest default notice is for £750, one for £300 and another for £100. What is the best course of action?

Any advise would be most appreciated!

thanks.

bottleofred

Hi Katieve75,

My understanding of defaults is that obviously they will stay on your credit file for 6 years if left unpaid. However, I think if you settle the account, you can ask the creditor to remove the default as part of the settlement. I'm not sure how successful you will be, but think this is the case. Someone with more knowledge than me should be along soon to offer better advice.

Good luck

climbintheladderouttadebt

Hi Katieve75,

I think I know the site and details you are referring to. It certainly may be worth writing to request their removal but I have not heard
of this being done successfully. I, however, plan to try it one day if all else fails! Lol.

"Defaults can be on file for UP to 6 years, since there is no statute or law saying this! It's just basically a rule made up! It may not stand in court as there is no basis for defaults to be held for 6 years!" This is a quote I have picked up from my research into defaults.

If writing to the creditors, mention the first principle of the DPA stipulates that they will process data fairly and accurately. Do they consider it to be fair to process derogatory data when you're offering payment to clear the debt? Suggest 'fair' in your eyes would be a fair swap, payment for removal of default and all account related data from all 3 CRA's. That is, if you haven't already paid them off? It may also be worth using the personal side of your argument - the fact that in the previous 2 years you have run your accounts etc. perfectly since then, and that another 4 years with the info showing on your credit report will be very damaging to your future and that of your family (you mention getting a mortgage, I know where you are coming from!).

I'm arguing with Capital One in relation to a default notice issued to me when the account (ie the amount owed) was formally in dispute. I was contesting charges placed on my account when payment from myself was refused by phone & Internet. It's not easy going.

There are various routes to go down regarding default removal. If you try any, good luck! And please keep us updated!

DarkConvict

Defaults actually last forever, it is just that you only see the last 6 years of credit history. This is a limit i believe set by the OFT/ICO for fairness of data been held. Although payment history is limited to only 3 years.

You are right you can ask creditors to remove it, however if they applied the default correctly there is no way to force its removal.

If you never received a default notice, and can prove they never sent one (SAR Template). You have a case for it to be removed.

climbintheladderouttadebt

Thanks for the useful info, DC! Once again my months of researching have lead me down an incorrect path... That scuppers my later arguments/appeals if the fact that my Defaults were wrongfully issued goes ignored!

Hannah_10

I have two recent defaults for tiny amounts. I would like to ask for them to be removed, is there a template letter for it anywhere does anyone know?

Tubbss

Hi,
Irrespective of the amounts involed, the default notices are there to serve a purpose and unless they have been added in error, then why should they be removed? They advise creditors on how you have conducted your finances in the past and give a possible indication on how you may handle your finances in the future. Default notices dont just get added, the lender will have written or called you on several occasions to try and remedy the situation and if you have not sorted it by the time it gets to default notice stage then on your head be it.
As the DPA states,

1st principle: Fairly and lawfully processed - you defaulted. It is not derogatory, it is factual.

4th principle: Accurate and up to date - you defaulted.

spursfan14

Tubbss wrote: »

They advise creditors on how you have conducted your finances in the past and give a possible indication on how you may handle your finances in the future. .

Do you not think that 6 years is a tad excessive? For me when I was a student, i was a bit silly with money. Now 4 years on im still paying the price by having extortionately high APR.

I understand the reasoning for perpetual defaulters, but surely the rest of us who make a couple of mistakes and try to get back on the 'straight and narrow' should not be punished for such a huge length of time?

Marisco

Couldn't agree more Spurs! Also you might have tried to sort it, but the DCA's can be bloody minded and insist you pay more than you can afford:mad: and they then default you!! That's how my oh ended up with CCJ's, and they were only awarded what we offered in the first place!!:) So it's not always "!!!!less irresponsible" people to blame, maybe the DCA's should stop and listen sometimes and not be too quick to issue defaults and CCJ's!!:mad:

climbintheladderouttadebt

If anyone's interested and has a case etc...

https://forums.moneysavingexpert.com/discussion/2072765

speedycat

spursfan14 wrote: »

Do you not think that 6 years is a tad excessive? For me when I was a student, i was a bit silly with money. Now 4 years on im still paying the price by having extortionately high APR.

I understand the reasoning for perpetual defaulters, but surely the rest of us who make a couple of mistakes and try to get back on the 'straight and narrow' should not be punished for such a huge length of time?

I totally agree. 6 years is such a long time. We had money problems in 2008 due to my DH being self employed and us struggling in the recession. Thankfully we're ok now financially, but we're scarred with 4 defaults until 2014!