Default removal?

shopaholic2

Hi, Hubby asked bank for a loan yesterday, as his current loan with them ends soon, and he has been looking to extend it, anyway he was refused.
We checked his credit report on credit expert, and there is default on there from Clydesdale finance.
This is from his car loan,but in January 2010 the car was written off, the Insurnace paid some of the finance, and we THOUGHT, the GAP had paid the rest.
After about 5 months Clydesdale finance got in touch to tell him his account was in arrears etc.
He immediately got in touch, and has been paying the monthly amount again for about the last 7 months.
The balance on this account is £1385.
If he had been approved for the bank loan he would have paid this off.

Is there anything he can do? Can he approach Barclays (clydesdale) and ask them to remove the defaults?
It's very much a catch 22 situation, and altho I am dreadful with money,he isn't.
I thought the banks refusal may have been because of me, but the lady said no, as it was all in his name.

Are there any reputable companies that may offer him a personal loan with the defaults?
If he paid off the balance, how would that affect the default status??

Many thanks, for any advice
x

bottleofred

Hi shopaholic,

If the company sent out a letter regarding a default notice giving your husband 14 days to settle, then I think they've done everything correctly. A default stays on your credit file for a total of 6 years and makes it very difficult to get any kind of credit. I would say anyone who would offer a loan at the minute may do so for exorbitent rates or want the loan secured on your property.

Good luck

Red

fermi

shopaholic2 wrote: »

If he paid off the balance, how would that affect the default status??

It would still stay as a default, but would be amended to show that it had been settled.

fermi

Steve: I'm going to move these posts into a separate thread, as it's best that discussion of your account have it's own one.

Here: https://forums.moneysavingexpert.com/discussion/3165820