Knowing if you've defaulted

rdchick

Hi Guys,

Just wondering how things become defaulted as I think I have probably got one (need to check credit file) for a mobile broadband contract for outstanding £157 I have yet to pay, however heard nothing from them... yet I've moved so could have sent a letter...

Just wondering how they work and what it means...

sorry to be vague but just need it in laymans terms!!

Tixy

Usually if you get 3 months+ behind with repayments your creditor will send out a notice of default asking you to bring the account back into its normal terms within 28days or a default will be registered. They send this to the last known address so it could easily have been sent without you seeing it if you have moved.

If the account is not then paid up a default will be registered withn 1 or more of the credit reference agencies.

What they mean is that your relationship has broken down and you have defaulted on the original terms of the agreement.

A default will stay on your file for 6years from the date is was put on file. If you settle before those 6years are up then it will be marked as a satisfied default instead.

Having a default on file makes it very hard to get any mainstream credit for those 6years.

If you have moved house then it is also possible you might have a CCJ for this debt (as court papers also only have to be sent to the last known address) - your credit file will tell you, or you could look on the registery trust onine website - but it does cost £8 to check on there for each address you search.

rdchick

Thanks Tixy, I've emailed o2 and asked what's happening - should check my credit file - eeeeeeeeeeeeeeeeeek!

rdchick

Just checked equifax. o2 says it's in arrears -- does that mean I'm not defaulted?
PLEASE SAY I'M NOT DEFAULTED!!!

I can tell myself I'm not defaulted... just Delinquent which sums me up tbh lol! Next payday this is gone fo shizz!

Tixy

Not necessarily. You would need to check your credit files to know for certain whether you have a default or not (sorry).
How long since you last paid it?

rdchick

ages ago! However by the skin of my teeth I seem to have scraped under the default radar - asked o2 for everything I owe and I will pay it off on payday - be a massive relief! xxx

Tixy

If its more than 5months or so I've be amazed if they haven't put a default on the account. Mobile phone companies are often some of the first to default you.
I don't think they would necessarily tell you its been defaulted over the phone, as they want you to pay up straight away, and if you think its already defaulted you might put in lower in your list of priorities.

rdchick

I think this is the 5th month tbh but it says in my file delinquent and no date next to defaulted, I mean it might be and it's just not updated it but I've got in touch with o2 and there's nout more I can do until payday anyway

Gordon_Hose

on Equifax it will say "Defaulted" in a red box under "Status" when looking at the relevant account.

rdchick

It's a red box but says 4 months so I'm safe... my overall rating isn't too bad, the credit agreement bit is on amber because of this o2 thing so need to pay it ASAP!

Gordon_Hose

The late payments have been recorded now, so they will fall off in 6 years.

Better than a default though.