Default question

bertman

This may sound like a really daft question - how do you know if you have a default on an account? The reson is - I have checked my credit file and can't find anything that says I have had a default applied.
I had a lot of trouble with a Halifax card and can't seem to find out if they applied a default.
Sorry if this is a daft question but I cant seem to find the answer...:(

Tixy

Hi

If there is a default it will be on your credit file (possibly not on all files so worth checking equifax and experian). Before they can put a default on your credit file they have to send out a default notice giving you 14 days to correct the account/bring it up to date etc.
But if there isn't one on your credit file and you haven't had a letter from them recently (ie in the process of applying one) then it would sound like they haven't put one on.

debt_free_1988

hey, i have a student account to which i went over my over draft on (stupid i know) one day i had a call from natwest stating they would close my account and i had to pay it off within 28 days, i entered into an agreement to pay £50 every month interest free and they would suspend my account, i missed 1 months payment and then paid 2 months, after 1 week i got a default notice and letter saying it had gone to a debt collection agency and to contact them. I have settle the amount as this was over 4 years ago, can i appeal any of this ?

Tixy

Hi

Once an overdraft is recalled then if you cannot pay it back straight away a creditor is allowed to issue a default notice. It sounds like they agreed not to if you kept up with an informal arrangement.

The default notice has to give you an opportunity to rectify the position - pay off the debt in full in 14 or 28 days. Assuming you didn't settle the account in that timescale then there is nothing you can do to appeal the default.
The default will only stay on your credit file for 6years from the date it was entered. If the debt has been fully paid it should show as a settled default.

debt_free_1988

sorry one last question, i havent missed a payment on my credit report since my default, but my credit score is still 673 (due to the default)
once the default has been removed will my score auto go back up if i carry on paying ontime and not missing a payment? or will this madness at university always mean i have a low credit score?

Rico6.9

debt_free_1988 wrote: »

once the default has been removed will my score auto go back up if i carry on paying ontime and not missing a payment? QUOTE]

Yes