Defaults and credit file

worried1969

I've read that once our creditors default the account this stays on your file for 6 years before dropping off. My question is my DMP that i have not long started is due to last as least 10 years so what happens regarding the default accounts then. I mean, will they still be showing because they won't have been paid off within 6 years and will my credit rating stay bad until the DMP is finished until i finish in 10 years if my circumstances don't change?

fermi

6 years after the default, the default and ALL details of the account will be removed from your credit report. Regardless of whether you have finished paying the debt off under the DMP.

So those defaulted accounts won't harm your credit rating once the 6 years is up.

Saving4ahouse

Hi it's me (from the Us vs Littlewoods/Lowell thread) sorry just to clarify, my parter has a default from Crapquest which has a date of 10/01/2007 on, they have been in contact with us with regards to this, and we are in deadlock in 2009 I sent Halifax the following letter and heard nothing from Capquest or Halifax since so we presumed the debt had been wiped and nothing would come of it. Although checking his file today it has a red 8 on and a default date of 10/01/2007 even though he is not paying anything will this debt be wiped from his credit file on 10/06/2013? or can they add a new date on to make it last another 6 years? Here is the letter I sent


I am writing to request that you repay all the late payment fees and over limit fees that have been applied to my account.

I do not believe the charges reflect the true cost to Halifax and are unfair and disproportionate. I am therefore requesting a refund based on the Unfair Terms in Consumer Contracts Regulations 1999.

This is supported by the Office of Fair Trading’s April 2006 statement into credit card charges, which noted that the level of charges at the time, and prior to that period, were unfair.

The charges total £1488.00 I believe I have been unlawfully deprived of the money and therefore ask that you repay me the full amount.

CapQuest have been in contact with me regarding an apparent debt with you for a total of £992.87. I am willing to settle this matter out of court, if you converse with CapQuest and have the debt removed from them and my credit file. If this matter was to go to court then I would be making a claim for the full amount of £1488.00.


I look forward to a full response to this letter within 14 days.

We heard nothing back from either party.

fermi

A default stays recorded at it's original date.

They can update the balance and the monthly status will say "8" or "D" each month, but those aren't new defaults. Just updates of the status on the original.

So the default and account are removed from the report 6 years from the original default date.

They are not allowed to record another default, or change it so that it stays on longer than the 6 years.

The only way they could effect your credit record for longer is if they went to court and were successful at getting a CCJ. That would then go on as a separate entry in addition to the default, which would stay for 6 years from the CCJ date. The default would still drop off at it's 6 year mark, but the CCJ would stay on for longer.

Saving4ahouse

fermi wrote: »

A default stays recorded at it's original date.

They can update the balance and the monthly status will say "8" or "D" each month, but those aren't new defaults. Just updates of the status on the original.

So the default and account are removed from the report 6 years from the original default date.

They are not allowed to record another default, or change it so that it stays on longer than the 6 years.

The only way they could effect your credit record for longer is if they went to court and were successful at getting a CCJ. That would then go on as a separate entry in addition to the default, which would stay for 6 years from the CCJ date. The default would still drop off at it's 6 year mark, but the CCJ would stay on for longer.

Thanks for your help (I bet you are sick of me now) Is there anything I can do with regards to Halifax not replying? Should I write to the FOS? Or is it my own fault for presuming that they would follow the letter (which I sent via recorded delivery) and neither Halifax or Capquest have contacted us since they have put a default on his account.

fermi

Bank charges aren't really my thing, but the position on them with the OFT has changed since 2009 I think?

So would the charges now be considered unfair, if they ever were?

I'm not sure. You should probably ask on the reclaiming boards for an answer to that one.

The reason I ask is that if you "poke" them now by pushing this, they might start chasing the debt again.

So before you do that it might be wise to check if your stance in that letter is still valid?

Saving4ahouse

fermi wrote: »

Bank charges aren't really my thing, but the position on them with the OFT has changed since 2009 I think?

So would the charges now be considered unfair, if they ever were?

I'm not sure. You should probably ask on the reclaiming boards for an answer to that one.

The reason I ask is that if you "poke" them now by pushing this, they might start chasing the debt again.

So before you do that it might be wise to check if your stance in that letter is still valid?

OK thank you, I think it might just be me fretting I have checked and his credit score is in the fair range of 818 I am just worried we won't be able to get a mortgage as we will be FTB. Thanks again