Default questions - partial settlements

simrgrs

Hi, a few questions regarding defaults and payments if anyone out there can help? (sorry for the long post and varied range of questions, any help / guidance very greatly appreciated)

1. A default was registered and the creditor accepted a partial payment as full and final settlement for the account and the default was marked as satisfied / settled, is there any chance of the creditor removing the default if I offer to pay the shortfall between the payment accepted as full and final and what the balance actually was or will they not be interested as the default has been marked as settled?

2. Is it a legal requirement for a creditor to provide the original signed credit agreement and a copy of the default notice even if the default has been marked as settled? (I'm looking to try and get these defaults removed)

3. If an account was defaulted 3 years ago and only recently paid (within last 6 months) is this is having a significant effect on my credit rating

4. At what point do new lenders who search the file not take much interest in settled defaults - or do they run a mile for the full 6 years that the defaults are on the file

Thanks in advance

simrgrs

anyone any advice on the above?

BackOnTrack

I had a default back in 2006, fully satisfied, and I still can't get credit with anyone who checks equifax, it doesn't appear on my experian or callcredit reports. I've got a couple of credit cards now, one from a company that only checks experian and one that had guaranteed approval from my bank which I am using for 0% balance transfer facility and getting myself and my wife out of debt but unless your default appears on only one credit reference agency your chances of getting any credit in the next 3 years are going to be very slim to none unless you want to pay stupid interest rates. Even if you do offer to pay the outstanding amount on your partial default I would imagine the chances of the lender agreeing to remove the default are practically nil.

KSta

I also have a default on my credit file (capital1), which is partially settled. Following 3 phone calls (1 every 6 weeks) I wrote directly to the MD to:
1. Obtain a confirmation letter that the debt had been partially settled and I would not be persued for the outstanding balance; and
2. To obtain a copy of the default notice, which I did not receive because I had moved to another address and my ex-partner was returning my mail to sender...

Suprisingly capital 1 sent me a £50 cheque to cover the costs of my 3 previous phone calls to obtain the letter confirming my account had been partially settled.

They also stated that they would pass my request for information under s78 of the CCA to the relevant department who would deal with this separately.

That department then wrote stating it would take a few weeks to gather the information.

Within a week I received a further letter from the MD's office (Executive Resposne Cente) stating that as there is no sum payable (or may become payable) s78 of CCA does not apply and they have no obligation to provide a copy of the default agreement so will be returning the £1 fee by cheque.

Any experts out there that can advise if I am still entitled to a copy of the default notice despite the account being partially settled?

Many thanks in anticipation

RedTulip

simrgrs wrote: »

Hi, a few questions regarding defaults and payments if anyone out there can help? (sorry for the long post and varied range of questions, any help / guidance very greatly appreciated)

1. A default was registered and the creditor accepted a partial payment as full and final settlement for the account and the default was marked as satisfied / settled, is there any chance of the creditor removing the default if I offer to pay the shortfall between the payment accepted as full and final and what the balance actually was or will they not be interested as the default has been marked as settled?

Very doubtful they will remove the default.

2. Is it a legal requirement for a creditor to provide the original signed credit agreement and a copy of the default notice even if the default has been marked as settled? (I'm looking to try and get these defaults removed)

Yes. If you send a request along with a £1 postal order they should supply a copy of the signed CCA. The default notice letter should have been sent which would give you 28 days to settle the account. I think the same applies to the default notice with them having to supply it upon request, but not sure if there would be any other charges. Are you disputing the debt though, or just the default?

3. If an account was defaulted 3 years ago and only recently paid (within last 6 months) is this is having a significant effect on my credit rating

The default will stay on your account for 6 years from the date it was registered, not settled. I have heard if defaults are 3/4 years old they start to have less impact, although I don't know how true this is.

4. At what point do new lenders who search the file not take much interest in settled defaults - or do they run a mile for the full 6 years that the defaults are on the file

See above coment

Thanks in advance

Hi, I have added some comments above, hope they help a little.