How times can a default be recorded?

pmf63

Hi guys just a quick silly question. How many times can a creditor default an account? What I mean is ... I have a Nat West loan default April 2005 and I still owe £13 800. Currently paying just £30pm.

I am not expecting to but, if I were to have a drastic turn of luck and couldn't even afford that after April this year when it 'drops off' of my experian account, could they default it again?

And also as I am not in a position to ever increase this figure by any substantial amount, will it go on until I or it is no more?

By my calcualtions I will be around 91 yo when I finish paying it off. Incidently, I have already paid nearly £18k and it started as a £15k loan in 2001. The rest is their interest and charges.

fermi

They can only put a default on your credit reference files once.

pmf63

Thanks fermi. Not that I would but, what is to stop me putting a finger up to them and saying you had enough then. If I can't he hit anymore, what is the incentive in paying anymore.

Like I said, I wouldn't do it but I have got really interested in debt management and how it works from these forums.

fermi

They may not be able to default you again, but they could still take you to court if you didn't pay.

That would give you a CCJ which would be a bigger blacker mark on your credit file than the default.

Or if you have property with equity, they may also go for a charging order or even make you bankrupt. (Bankruptcy is unlikely, but you never know).

pmf63

I see. Although there are times I wish they would make me bankrupt. Better than paying them till I am 91 years old for a loan I have already repaid. Thanks again.

KingElvis

Yep, and if they get a CCJ you can bet that will be recorded and blow any rebuilding you do out the water.

pmf63

KingElvis wrote: »

Yep, and if they get a CCJ you can bet that will be recorded and blow any rebuilding you do out the water.

That is probably why they do what they do because they know that they can charge extortionate fees and interest when you are already struggling because you have no choice but to pay for it for the rest of your life.

I borrowed £15k in 2001 and when I finish paying it back, approx 2050, I would have paid back around £32k.

Moral of the story ... save up for what you want and let the banks go bust!

birkee

Straight questions, no implications or comments.

If you are still in default, why does your debt "drop off" your Experian account?
Is it moved into another section as 'long standing default' or something?

pmf63

I guess some of the others will be able to answer the logistics of the oepration but after 6 six years it dissapears from all bad credit records. In a similar way to a prisoner serving his sentence is let out of prison. There comes a time when your 'sentence' has been spent. Otherwise there would be no opportunity for rehabilitation!

fermi

Convention, really. And an attempt to impose some fairness.

Credit agreements - data sharing

The Act does not prescribe the period for which information is retained by credit reference agencies. However we understand that the Crowther Report on Consumer Credit 1971 expressed support for the view that a statutory time limit should be considered and suggested a period of six years should be adopted. At the time this was already the practice common to some of the major credit reference agencies.

The Younger Committee on Privacy considered that as the prevailing practices of the agencies were coordinated, there was no immediate necessity for statutory recommendations to be made but prepared the ground for the Data Protection Act 1984 by recommending that periods should be specified beyond which the information should not be retained.

Account information is held by the credit reference agencies for a period of six years after the account was last active. It appears to be the case that in addition to current credit commitments the preceding six years of an individual’s credit history is taken into account by credit grantors when applications for credit facilities are assessed. As a consequence this historical information would appear to be relevant to the purpose of credit referencing and by holding this information the agencies would not appear to be in breach of the fifth principle.

fermi

birkee wrote: »

Is it moved into another section as 'long standing default' or something?

Nope. The default and all account info come off.

Depending on your point of view, I can understand why some may feel that it's not really fair if you haven't yet paid it off.

However, rightly or wrongly, that is the way it works at the moment.