Nationwide Default ruining credit score

RRHH

First time poster and looking for some help. Have read many a thread before and always found great advice, now I have a problem which I can't find an answer for.
Situation is thus: I have a very old outstanding loan from Nationwide. The loan defaulted in 2005 and was passed to debt collection, since then I have religiously paid off instalments on time and in full, gradually increasing payments as I go.
Left owing is £1600 approx so around 10 payments left til its cleared.
Problem is it still shows on credit file as defaulted and every payment is showing as 6 months+ late. It is still registered to Nationwide, not debt collector, and updates every month with each new payment, I have changed address twice, and let the debt collector know but this has never been updated by Nwide on my file.
Time has come for partner & I to obtain mortgage, we have good size deposit (all his) but credit score will most likely not allow.
I'd like to know if anyone can advise if there is anything I can do to make file better, since while the account is well overdue, I have made regular payments as per new agreement for many years and can prove this. Seems like Nwide have ruined my credit score when I have tried earnestly to pay back as much as possible as soon as possible.
Any help / advice hugely appreciated.

jimmo

Sorry, this is not going to be good news.
If I have read you correctly Nationwide have passed the debt onto their own debt recovery team and not sold your debt to a third party.
That would explain why your credit file is still being updated by Nationwide.
In my own personal experience if a lender sells your debt to a third party they stop updating your credit file and the default falls off your credit file 6 years later.
However if the original lender keeps your debt in-house the default will remain on your credit file until 6 years after you finally pay it off.
So, quite frankly you are blighted for quite some years yet and it is probably not very sensible for you to make a joint application for a bank account, mortgage or loan with your partner. If you did, the 2 of you will be "associated" and your defaults will cause the same damage to your partner's credit file.
I am afraid that you need to consider whether your partner can obtain the mortgage in his sole name.

RRHH

Thanks Jimmo, suspected as much. Partner well aware of risk of association and willing to try, while I am reluctant to affect his perfect score. I had no idea at the time that the debt was with Nwides own collection company, while partner can buy future property alone if necessary, this will obviously impact the amount we can borrow

jimmo

Coming back to this thread tonight I am a bit surprised that no-one else has joined in. From my point of view that is a good thing because no-one has criticised what I have said but from your point of view, all you have is an old duffer talking about his experiences more than 20 years ago.
However what I would say is that your partner is, at best, naive, if he is prepared to take a chance on applying for a joint mortgage.
Do that and you will be associated and your application will be rejected because of you.
Then, if he applies for a mortgage in his own name, the association will still be there on his credit record and he will be rejected.
I can’t tell you whether your partner could successfully get his association with you removed from his credit file once it is on there but, at best, it will take quite some time.
Quite frankly you have to be realistic. Can your partner get a satisfactory mortgage in his own name or do you have to wait?

bigban

jimmo wrote: »

Sorry, this is not going to be good news.
If I have read you correctly Nationwide have passed the debt onto their own debt recovery team and not sold your debt to a third party.
That would explain why your credit file is still being updated by Nationwide.
In my own personal experience if a lender sells your debt to a third party they stop updating your credit file and the default falls off your credit file 6 years later.
However if the original lender keeps your debt in-house the default will remain on your credit file until 6 years after you finally pay it off.
So, quite frankly you are blighted for quite some years yet and it is probably not very sensible for you to make a joint application for a bank account, mortgage or loan with your partner. If you did, the 2 of you will be "associated" and your defaults will cause the same damage to your partner's credit file.
I am afraid that you need to consider whether your partner can obtain the mortgage in his sole name.

Thanks for your kindly help !

lvm

jimmo wrote: »

Nationwide have passed the debt onto their own debt recovery team and not sold your debt to a third party.
That would explain why your credit file is still being updated by Nationwide. In my own personal experience if a lender sells your debt to a third party they stop updating your credit file and the default falls off your credit file 6 years later.

It doesn't matter who owns the debt - it still needs to be reported accurately to the Credit Reference Agencies and if payments are being made, this should be reflected on your credit file.

However if the original lender keeps your debt in-house the default will remain on your credit file until 6 years after you finally pay it off.

Completely untrue I'm afraid which is good for the OP. Credit agreements fall off your credit reports 6 years after the original default date - not after the date the last payment is made. We could all be screwed for over a decade if this was the case.

So, quite frankly you are blighted for quite some years yet and it is probably not very sensible for you to make a joint application for a bank account, mortgage or loan with your partner.

The OP should only be affected until 6 years after the default date.

OP - when did you originally default? If in 2005 you should be fine to apply for a mortgage in a matter of months!

If you did, the 2 of you will be "associated" and your defaults will cause the same damage to your partner's credit file.
I am afraid that you need to consider whether your partner can obtain the mortgage in his sole name.

Sometimes difficult doing this as banks want to know who will be living in the property so not usually just a simple case of only applying in a sole name - also got the question of affordability. Higher mortgage available for a couple than for a single person. Also, default would affect partner however definitely not the "same damage" as it's done to the person receiving it!

jimmo wrote: »

Coming back to this thread tonight I am a bit surprised that no-one else has joined in. From my point of view that is a good thing because no-one has criticised what I have said but from your point of view, all you have is an old duffer talking about his experiences more than 20 years ago.

Spoke too soon I think!

However what I would say is that your partner is, at best, naive, if he is prepared to take a chance on applying for a joint mortgage.
Do that and you will be associated and your application will be rejected because of you.

A joint bank account or loan in the past would do this anyway.

OP - definitely not as bad as has been made out.

Best case scenario - wait a few months until the default has dropped off (get a £2 statutory report to check this) and your application for a mortgage will no doubt be fine if all other credit agreements are in order.

Good luck!

fermi

As said, if the default is dated sometime in 2005, then the default and all detail of the account will be taken off the credit reports sometime this year. 6 years from the default date.

wakefib

I have an issue with nationwide, which has been going on for two years regarding a default notice, which was applied to my overdraft account.

The issue is they acted unfairly.

On April the 27th 2009 they wrote to me asking me to contact them. Its a standard letter saying you need to pay the whole of the overdraft off. If you do not contact us we could apply to credit agency and register a defaut notice.

I found out in 2010 they had registered a default notice on the 7th of May 2009.

This my main point of act! Allowing for post and the back holiday i would have had just 4 days to respond.

Note the overdraft was only 245 over its limit.

I was paying £80 a month to pay the overdraft off.

In June 2009, i got over £512 refunded by Nationwide for unfair bank charges, they complaint had taken two years too.

The complaint is currently with the ombandsman, but they are take ages.

There inital response was they did not understand why i was sent the letter on the 27th of April.

Any advice is appricated

Tixy

When a creditor recalls an overdraft they should give 14days notice to rectify the account (pay off the whole balance not just the over limit balance) before a default is issued.
When they wrote to you in April 09 what did you do? did you contact them? were you in a position to repay the balance?
If you did nothing then its correct for them to register a default. Potentially you could argue the date of the default but it would only make a few days difference. Are you certain they hadn't sent a similar letter previously that also warned of a default notice? I have seen this happen before and it can confuse the issue.

You say you had £512 in charges back from nationwide - if your balance at the date the overdraft was recalled was less than £512 then you could argue that the account would have been in credit if not for these unfair charges and therefore they should removed the default.
If your balance was over £512 then even had the charges not been added you still would have been overdrawn and so they could still have issued you with a default.