How long do banks keep your default account history?

jw30

I have 6 defaulted accounts from 2007/2008 now i understand after 6yrs from date of default the information is removed from my credit file if paid or not now one of them banks HSBC specifically is one I owe around £900.

I am not too bothered by the others Lloyds, Natwest, Vanquis etc but it occurred to me how long by law can the banks keep you on their systems when your accounts have gone bad???

zppp

jw30 wrote: »

I have 6 defaulted accounts from 2007/2008 now i understand after 6yrs from date of default the information is removed from my credit file if paid or not now one of them banks HSBC specifically is one I owe around £900.

I am not too bothered by the others Lloyds, Natwest, Vanquis etc but it occurred to me how long by law can the banks keep you on their systems when your accounts have gone bad???

They can keep your details as long as they like.

KingElvis

The data warehouses these companies use mean that the data is unlikely to ever be deleted.

Also, you have to be aware that all banks share customer data and that does not mean just through the refernce agencies, they share data between themselves, and lots of it.

KingElvis

http://www.dailymail.co.uk/money/article-1094333/Banks-started-sharing-data-order-thwart-credit-card-tarts.html

http://www.bcs.org/content/conWebDoc/8104

http://business.scotsman.com/scotsmanguidetodebt/Banks-to-share-data-to.2763087.jp

MrsTinks

Well - until you pay the debt they can in theory keep the data as long as they please or sell it on to a debt collection agency or even go for a CCJ on the debt in the first 6 years... (5 for scotland). However if they kept you debt inhouse for the next 10 years and you then opened an account and deposited a few grand of wages or savings... they have a clause in all their T&Cs giving them the right to off set - that means they can take the money out of the new account and settle your old debt. Being statute barred merely means they can't pursue you through the courts and after 6 years defaults drop off your credit files. The debt is still owed.

KingElvis

jw30 wrote: »

Really what sort of information? Account conduct? How much i bought in soho? lol like big brother!!!

To be fair I knew about the cash advance as it shows on my credit file for cap 1.

Yep, cash advances and drawing cash on a credit card are all frowned up, espcially if you do it often.

I was working on a bank system last year that detects if a caller is "likely" to be lying, I'm not kidding the systems are vast.

izools

jw30 wrote: »

These accounts are all defaulted so in effect 6yrs from the date of default the account is closed. So if the credit reference agencies cannot keep this information why can banks?

First off, no, the account is not closed.

The account remains open for as long as there is an outstanding balance. Merely the entry on your credit file showing you defaulted is removed after six years, not the account itself.

So whilst a 3rd party creditor can't judge you on the default once six years have passed, any outstanding debt can be enforced in a court of law upto six years from the date you last acknowledged the debt or if the creditor seeks a court order within six years of your last acknowledging the debt.

The data protection act stipulates that data controllers can hold data "for as long as deemed necessary for the purpose it serves". If the finance house can come up with good enough justification for keeping the data for a decade, so be it.

izools

That is the case unless the creditor has a court rule in their favour.

First of all, it is illegal to not inform a creditor when you move. Secondly, if a court summons is issued to your prior address and you fail to turn up in court, the creditor in question is granted the judgement in their favour "By Default".

Finally, if you have moved any accounts from one address to another, i.e. unless you've taken out a new phone contract and new bank account each time you've moved, lying on your application form about how long you've lived there, any of your creditors will be able to find you - a credit search on any of your addresses via Experian will reveal all the other linked addresses.

Don't take any of this personally, it's just how the system works - thought it's best you know :beer:

BoGoF

Who are you trying to impress ?

fozmcfc

BoGoF wrote: »

Who are you trying to impress ?

Precisely, just making themselves look a complete fool.

Fiddlestick

You must disclose if you have ever been known by a previous name, plus any prior addresses.

The link will be made then.

If you lie, you will be making a fraudulent application.



I'm afraid that the DPA contains a specific requirement to disclose information that's required as a result of court proceedings, so you can't hide behind that either.