Really want to remove a Default from my file

Grangey.

Hi,

Sorry if this is in the wrong section.

Basically Im part of the credit generation, so when I turned 16 and found out I could start getting overdrafts etc so easily away I went and got them. Anyway long story short I went through a rocky period and foolishly at the time neglected one of my overdraft accounts which left a default on my account. The default was left on my account when I was about 19-20.

Im now 24, and I'll be the first to say that obviously the bank had every right at the time to place a default on my account, however the issue I face now is my circomstances then by now means represent my circomstances now yet because of this default im tarnished with the "high risk" lending category. The amount that the default was applied to was a measly £160, and whats getting me more and more annoyed is how such a low amount is completely screwing me and costing me an arm and a leg moving forward with high interest rates and so on.

I was basically wondering if there would be any way I could persuade Nationwide to remove this default from my account, I am more than happy to pay considerably more than the balance I owed at the time to get this mark removed from my file, and the reason I ask is because im sure ive read on here that banks do have the right to negotiate this- but I didnt know if this was something that only applied at the time the default was set or whether it could be done at any time.

So am I doomed for the next 2+ years still therefore missing the boat on being able to get a mortgage and decent credit offers which I can easily afford? Or is there a chance that by communicating with the right part of Nationwide that I could negotate some way of removing this?

I welcome any input on this, and if it helps I currently have 1 high interest credit card (about 40%) which ive had for many years (started with 200 limit and now have 1900 limit) which I have a minimal balance on (through choice as I figured it would help showing stable repayments), and 1 current account with an overdraft of 1250 which i dip into every now and then for the same reason. I have also just opened up another current account with a different bank with no overdraft purely to add another account to my credit file as ive read someone elses theory that the more credit history you have on your file for things the more it would help make the default seem insignificant.

Look forward to your responses.

Thanks
Grangey

topcat9

Hi Grangey,

I'm not sure you'd get anywhere with trying to remove this default. As you've said, you don't dispute that it was applied fairly so I can't see that you have grounds for asking them to remove it. And if you tried disputing it on the grounds that the paperwork was incorrect then I think they can just reapply the default correctly anyway (but I'm sure someone will correct me on this if I'm wrong).

TBH I'd just wait out the two years and continue rebuilding my credit history. You're right to think that creditors like to see credit with lovely green paid-on-time markers on your report but I'm not too sure that dipping into your overdraft helps - I'd have thought that having the overdraft facility gave you the positive mark and there was no requirement to use it (but again, others may know better!)

Tixy

Very unlikely to get a bank to remove a default just by paying up - you can sometimes negotiate this with things like mobile phone defaults and similar but not with the main banks.

Paying up will at least mean the default is shown as satisfied for the remainder of the 6year period from when the default was issued on your file. Which is likely to make you slightly more attractive to lenders. And should mean that you could at least get a subprime mortgage if you needed to get a mortgage within the next couple of years (which presumably you could then move to a more competitive rate once the default has gone).

PinkLaydee

Not sure what is going on with Nationwide, but they are being really heavy handed with me about my overdraft, went over limit by £20 while away on holiday and have cone home to a Default Notice! Trying to sort it out. Really unfair!
Pay them off ASAP and switch. Best of luck!

January20

Nationwide, in my opinion, are heavy handed. Full stop! They take default very seriously and I'm speaking from experience here saying that if you want a credit card you won't get one with them nor will you get a mortgage if you have a default. Well, that's what happened to me anyway!

I still bank with them but it's because they offer me features which I find very useful in my financial recovery (and perhaps, with hindsight, refusing me a credit card and a higher mortgage were 2 of them )

Naf

Grangey. wrote: »

I am more than happy to pay considerably more than the balance I owed at the time to get this mark removed from my file

Tixy wrote: »

Paying up will at least mean the default is shown as satisfied for the remainder of the 6year period from when the default was issued on your file. Which is likely to make you slightly more attractive to lenders.

HAVE you paid them?
Either way, certainly do that.
There's no harm in asking nicely, pointing out your young age and naivety... but I wouldn't hold out any more hope than people above have suggested already.
Tixy is right; if its paid (ideally if it was paid a long while back) then your current credit usage definitely shows well in your favour and most lenders will probably overlook that one blip for all but their best deals.