Help with a smallish default

john-smith_7

Hi, I have just got my credit report and its taken a few knocks... mainly me not appearing on the electoral roll and a default for a bank account that i forgot I had... the rest of the report is lots of green ticks with credit accounts managed in responsible ways for years....

The Electoral roll is easy to fix, but as I need to move in may, where should I register? here? or back at my parents, where Ill be temporarally...

The default is my big worry... its for 400 - lodged in 2008.
At that time I was looking to change banks, so set up a second account with a 100 overdraft, i used the account a little, but never actually switched... at the time i was going through a hard time with my partner and ended up using the overdraft... the standard overdraft charge and debit interest took me over the limit and I accrued over limit charges, i didnt notice for a few months, then paid them all off and thought id left the account in order, one thing lead to another and i moved out of that house... life was one big sob story, address chaingng was the last of my worries so that account just got ignored. out of the blue my ex handed me aletter this christmas - 2010 which was a court fine, I had no idea what it was and scared I paid the 100 fine. only after getting my report i can assume it was in relation to this...

What is my best course of action? i guess the 400 is made up of the overdraft fees and accrued charges? as i havent used that account for years. a few years ago i suppose those charges would be reclaimable? but i think thats a no go nowadays!

If I pay the delinquent outstanding, will the default be removed? i hate to think it, but do i stand to gain nothing if i actually pay and so be better off just leaving it?

bottleofred

Hi John,

I would wait until you move house to a more permanent place before worrying about going on the electoral role. Defaults stay on your credit file for a total of 6 years from when they are applied before dropping off your file and do make it very difficult to get even a cheque book. A settled default though is better than an unsettled one, so whether you pay it or not is really up to you. Generally lenders don't remove defaults even if the account is settled.

john-smith_7

I dont like the idea of the debt being there almost as much as the default... it is fully my fault for one reason or another - I should have been better with my paperwork when I left - even my main account took a year before it was transferred into my new address, basically when my card expired and the new one never turned up! so I think that I will pay it off, I dont feel comfortable with trying to cheat the system I phoned the bank this morning and they dont have me on file any more, but suggested I visit a branch which I will do next week.

Its a bit of a !!!!!! that mark stays on file for so long, this was a genuine oversight on my behalf and while I havent been a shining light with my finances, Ive always kept on top of all my commitments.
If I pay it off, I take it I can ask the bank to remove the default? and failing that, does it help if I wrote a letter explaining how I got into that situation for the credit report? or is the report just scanned by computer and submitting my reasons be a waste of time?

bottleofred

Prior to them placing the default on your credit file, you should have received a letter giving you 14 days to settle the debt. You can certainly contact them and ask them to remove the default as you are going to settle the debt, but this is something that doesn't seem to happen very often. It's probably worth a letter or phonecall etc to try though.

Good luck