Defaults on Credit Score

stanny2k

Hi,

I've just purchased my credit score...

260... Not very good.

I don't own a credit card.
I don't have an overdraft.

I defaulted on a payment back in 2009 for £586 (which was at no fault of my own, but that's another story).

How do I get this default removed from my credit score? I don't really want to wait another 3/4 years until it's removed automatically. I don't really want to just pay it off and its changed to "PAID" on my credit score as I believe thats just as bad.

Anyway I get it completely removed from my score? I'm willing to pay off the debt, but I want it totally removed from my score once I have...

Not sure what the best approach is here.

Thank you.

Gordon_Hose

If it's recorded factually you will struggle massively to get it removed. It's difficult to say the least.

Only the lender who put it there can remove it, so you could arrange to pay off the debt in full in return for them removing the default. I'd get that in writing though.

stanny2k

Gordon_Hose wrote: »

If it's recorded factually you will struggle massively to get it removed. It's difficult to say the least.

Only the lender who put it there can remove it, so you could arrange to pay off the debt in full in return for them removing the default. I'd get that in writing though.

Thanks for your prompt response.

On my credit score it says next to the default:

"Communications Supplier from Carphone Warehouse (I) / XXX1489"

As you can probably guess it was an old mobile phone which I had cancelled at renewal, but they kept on charging me until I put the cancellation in writing. So I kinda refused point blank to pay it... Now it's come to bite me on the !!!!... so to speak.

When I contacted them previously to try the whole "I didn't receive a notice of default letter from you", they replied with "Yes you did, here is a copy of it..." so that didn't work either...

What do you recommend doing? Writing a letter to them asking them to remove the default if I pay off the debt? The last thing I remember reading from them was that the debt had been passed onto a debt collection agency... Would I have to speak to the Carphone Warehouse to get this removed or the actual debt collection agency?

Thank you.

Gordon_Hose

If they've sold it to a DCA then they'll take on the debt and all the admin, so you'd have to wait until they got in touch with you.

If they've just employed a DCA to do their chasing and not sold the debt on, then you can deal with CPW direct.

I can't really emphasise how difficult it is to get a correctly recorded default removed. It really is a massive lottery. Sometimes they'll play ball other times they won't, and just keep hounding you until you pay up, making your life a misery in the process.

The default notice line is pointless, because they can just send you a default notice. By pointing it out you just alert them to the fact they need to do it.

McKneff

It really wasn't any fault of your own. You didnt put the cancellation in writing which is one of the terms and conditions in the contract.

Even if you do pay off the debt, you will have zilch to zero chance of them removing the default. Simply because it's a true record of your credit history. You can ask, but I dont think it will make any difference whatsoever.

Gordon_Hose

Gotta agree with McKneff on this one. It's a VERY slim chance.

stanny2k

Thanks for your replies.

I'll let you know how I get on.

Not as if I owe anyone 20 grand isit...

stanny2k

Hi,

Quick update

Called the Carphone Warehouse this afternoon who advised me the debt had been passed onto a company called Rossendales, who are acting ON BEHALF of CPW to collect the debt & I would need to speak to them to discuss the debt.

So, I called Rossendales, spoke to a nice chap actually (for a DCA), who advised me that I have an outstanding balance of £586.14.
If I was to pay the debt within the next 7 days (in full) they would drop the debt to £385. Or I could setup a payment plan of £49 for 12 months.

I'm looking to get a mortgage this time next year hence my eagerness to get the default cleared off my credit score.

Guess that's not going to happen & will probably hinder my chances to getting a mortgage until its cleared in 2015....... Which sucks.... A lot....

Can anyone recommend which approach I should go for with Rossendales?

Thank you.

Gordon_Hose

Rossendales won't be able to remove the default if it's listed in CPW's name.

stanny2k

Gordon_Hose wrote: »

Rossendales won't be able to remove the default if it's listed in CPW's name.

Yeah I've kinda gone away from the fact I want the default removed as I don't really see that happening.

When I mentioned removing it to the CPW, they advised me theres no chance on earth it will be removed as its an official default. The only way it would be removed would be if the account wasn't mine (but thats obviously not an option).

What I meant by which approach with Rossendales should I take, I mean in terms of pay in full, or pay with the payment plan over 12 months...

I don't really have a spare £385 to pay it off in one, but I'd like to know which would look better on my credit file? Paying off monthly, or paying off in one? Or neither?

Thanks

Gordon_Hose

If you pay off the reduced amount they'll almost certainly mark the account "partially satisfied" on your file. If you pay the FULL amount they'll mark it as "Satisfied". The latter looks better to lenders, and you can add a notice of correction to your file to explain the circumstances and any lender has to read it.

If you pay it off monthly they won't update your account until it is paid off, so it'll show as an open default.