Credit Default

wittyjay

I wanted to ask the following as Im not sure where to go with this.

Previously, my sister took a small loan of approx. £1500.
She was in the process of moving houses and had a small amount to be paid off completely.
But because she genuinely forgot about the last payment, and several reminders were sent to her old address, of which she did not receive, that particular company have now put a default on her credit status, and have told her that it will remain there as they had to chase up the last payment etc. All this, despite paying the loan of completely.

She now has problems when applying for credit cards as this default 'flags' up on most occassions.

Is there anything she can do to eliminate this default ?

Your advise would be most appreciated.
Many thanks.


Jay

grumbler

It is absolutely clear that this was your sister's fault. In this case only the lender can do her a favour of removing the default from her crdit file(s).

It is very easy and not very expensive to readdress the post after moving a house...

inmypocketnottheirs

You could try adding a notice of correction by first of all getting a copy of your credit files from Experien and Equifax then following the procedures they tell you about. A notice of correction means you can add a text explaining what happened and all lenders will then see this before making a decision.

Another approach would be contacting the lender that made the default, explaining the reason and asking them to remove the default. They do have the ability to do this.

inmypocketnottheirs

grumbler wrote:

It is absolutely clear that this was your sister's fault. In this case only the lender can do her a favour of removing the default from her crdit file(s).

It is very easy and not very expensive to readdress the post after moving a house...

But sometimes things can be overlooked. It happened to some friends of ours who were over on Saturday night for a meal. They earn over £200,000 per year, have lots of borrowings (always paid for), but oversights do occur.

grumbler

inmypocketnottheirs wrote:

But sometimes things can be overlooked.

Yes, even very organized person can forget to notify everybody about changing the address. This is why even very organized people use redirection service provided by Royal Mail for just £6.90/15.10/23.25 for 1/3/6 months.

inmypocketnottheirs

grumbler wrote:

Yes, even very organized person can forget to notify everybody about changing the address. This is why even very organized people use redirection service provided by Royal Mail for just £6.90/15.10/23.25 for 1/3/6 months.

I have personal experience of Royal Mail redirection service, and it is not exactly reliable. So even very organised people can find themselves in problems because of RM inefficiency.

CLAPTON

there is not much she can do as she did default. her best bet is to phone/write to them and explain it was a simple oversight, small amount and was fully paid off as soon as she was aware of it etc etc.
but otherwise, time will improve things.

in any event why does she need more credit cards?

Andybez38

inmypocketnottheirs wrote:

You could try adding a notice of correction by first of all getting a copy of your credit files from Experien and Equifax then following the procedures they tell you about. A notice of correction means you can add a text explaining what happened and all lenders will then see this before making a decision.

Another approach would be contacting the lender that made the default, explaining the reason and asking them to remove the default. They do have the ability to do this.

I added a notice of correction to a defaulted account. It made no differance to lenders, sometimes making things worse when applying for credit cards etc.

I contacted the credit card company who registered the default against me. It made no differance to them it being on my records.

In my case the default was satisfied a good 2 and a half years before the 6 years were up for it to be removed.

Time has been the only thing for me to improve my credit rating. My defaut has fell off my records now and i have sucsessfully obtained 2 new credit cards. I was always declined prior to the default being removed.