Credit File help

redscarf

I recently noticed that Capital One had placed a default on my credit file last year (I have been paying them through a financial company who pay my debts and I pay them), apparently the financial company switched my account to a long term one which meant Capital One issued me with a default! Anyway, I contacted Capital One and enquired how a partial settlement might affect my credit report. I was told that it would show as Satisfactory, Partial Settlement. What they didn't tell me was that the default would also still show. I therefore assumed that if I made the payment then 'default' would be removed to be replaced with Partial Settlement. Therefore I was surprised to see my file still shows as 'default'. Have I been misled here or have I just been stupid?

onthebreadline

By payment - do you mean you paid them the full outstanding balance they asked for?

DarkConvict

Defaults mark that you made below minimum payments and you were asked to make up these arrears but failed to so, see a sample letter - http://forums.moneysavingexpert.com/showpost.php?p=30208835&postcount=49
You therefore defaulted on the agreement and this was put on your credit file to warn other lenders, its standard practice.

Defaults will last for 6 years from the date they were originally placed on the report. So long as you have a written letter of their acceptance that the partial settlement meant you were released of any liability to the debt, its not so bad, the problem really lies if you don't have this and they come to chase the remainder.

Its rare, but some creditors will remove defaults if its a term in the settlement offer. Did you ask for the default to be removed? Account information i.e. outstanding balance is seperate to a default notice on your file, they are seperate entries.