CL Finance - default continually 6 months in arrears

Hi all,
We have just been denied a mortgage which came as a shock as we have had a mortgage for the last nine years.
After checking our credit report on Experian my partner has a default still showing on her report. She got into fininacial trouble ten years ago whilst a student. She defaulted on a loan and got into debt with various store cards . She arranged to pay of the debts through CCCS and finished this particular payment to CL Finance in 2007. On her report it shows that this account was settled on that date along with all the other accounts which have been settled. The difference is that the CL account is still showing as 6 late payments and defaulted whilst the other settled accounts are showing as satisfactory.
My question is does the default date start from when the original debt was defaulted or from when the final payment is made through CCCS to settle the account ?
If it should have been changed to satisfactory on the report what would be the best way to go about getting this changed ?
I have tried to search for the answer to this but came up against conflicting info.
Any info would be much appreciated.
Many thanks,
Mark
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Replies

  • TixyTixy Forumite
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    What is the actual default date shown on the record? - it should have a date listed.
    The record would drop off 6years after the default was entered. And they would usually be entered on file a few months after you first drop into arrears or enter a DMP.

    Once paid up it should show as a satisfied default for the remainder of the 6years.

    Does the account show a current balance due of 0?
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  • edited 13 July 2012 at 6:11PM
    starsky27starsky27 Forumite
    104 Posts
    edited 13 July 2012 at 6:11PM
    Hi ,
    Thanks for the reply.
    The account is showing as a £0 balance which was last updated on 01/ 3/07. I assume that this was when the last payment was made.
    In regards to the date when the default was issued on record do you mean on the record with CCCS as I can't see any date it was entered on the file held with Expirian.
    Thanks again.
    Mark
  • edited 13 July 2012 at 6:22PM
    fermifermi Forumite
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    edited 13 July 2012 at 6:22PM
    If a default was registered on the credit files, then it should show this with an entry saying something like "defaulted on dd/mm/yyyy".

    It would stay 6 years from that.

    However, sometimes on DMPs if the lender considered the DMPs to be a reasonable reduced payment compared to what the full payments would have been, then a default is never entered. Whether that is right or wrong is arguable, as the guidelines are given to creditors are a bit too vague and unclear.

    Regardless, if the account never had a formal default registered on the file, then it would instead stay for 6 years from the settlement date. So a lot longer.
    Free/impartial debt advice: National Debtline | StepChange Debt Charity | Find your local CAB

    IVA & fee charging DMP companies: Profits from misery, motivated ONLY by greed
  • edited 13 July 2012 at 7:42PM
    starsky27starsky27 Forumite
    104 Posts
    edited 13 July 2012 at 7:42PM
    Hi Fermi,
    Thanks for the reply.
    It seems the account has a status of 6 which I believe is classed as deliquntent even though it's been settled.
    I can't understand why the account is still showing up as a negative ( red) factor when the agreement was made through CCCS and payments were made on a monthly basis like the other debts until it was settled 5 years ago.
    Is this correct or should it show as satisfactory like the other settled accounts ?
    Many thanks,
    Mark
  • fermifermi Forumite
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    How long has it been showing a monthly status of 6 payments in arrears?

    Creditors should not do that as an alternative to filing a default,

    See: http://forums.moneysavingexpert.com/showthread.php?t=3172602

    "A record showing a series of payments as six months in arrears when this does not reflect the real payment history should not be used as an equivalent of a default"

    Some creditors record like that to artificially extend the period negative information remains on your credit file, as if a default had been properly recorded early on, the default would have cleared of the credit file long before that.

    Very very naughty if they have done that, and worth a serious complaint.
    Free/impartial debt advice: National Debtline | StepChange Debt Charity | Find your local CAB

    IVA & fee charging DMP companies: Profits from misery, motivated ONLY by greed
  • fermifermi Forumite
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    CL Finance doing a similar thing to someone else in this link.

    http://forums.moneysavingexpert.com/showthread.php?t=3840153

    As you can see from the end of that thread, they got the account remove from their file. :)
    Free/impartial debt advice: National Debtline | StepChange Debt Charity | Find your local CAB

    IVA & fee charging DMP companies: Profits from misery, motivated ONLY by greed
  • starsky27starsky27 Forumite
    104 Posts
    Hi Fermi,
    Thank you for the link, very interesting reading.
    Checking the account status and payments on Experidian the only entry on it is the last one when the account was settled and closed. This is the one that shows the six status. There is no history of payments made or anthing but just that one entry.It strange as all the other accounts have much more info in them with the payment dates, amounts and the 0 status with each payment.
    I'm a tad confused ..
    Cheers,
    Mark
  • starsky27starsky27 Forumite
    104 Posts
    Hi all,
    I thought I would give you an update on our situation.
    After contacting CL Finance they agreed to change my partners account history to show as a default when she first when into six months contractual arrears. This has now been updated on her credit file and means that the CL account had been completely removed from her file and has drastically improved her credit score/file.
    We are currently in the process of trying to get all the settled accounts from her previous DMP backdated as defaults so they can also be removed from her credit file.

    I must say a thank you to Fermi for all their advice on dealing with this issue.

    Thanks,
    Mark
  • fermifermi Forumite
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    Glad to hear you got that sorted. :)
    Free/impartial debt advice: National Debtline | StepChange Debt Charity | Find your local CAB

    IVA & fee charging DMP companies: Profits from misery, motivated ONLY by greed
  • Pop_SoxPop_Sox Forumite
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    Part of the Furniture 10 Posts Combo Breaker
    I have also contacted CL Finance after uncovering the same problem on my credit file when applying for a mortgage. The late payments was changed to a default and dropped off my file, as it was from 2000, I sent the letter on Monday and it was changed on Friday, so they can be quick when they want to be!

    This has changed my credit rating from 806 to 986, thanks Fermi, for your great advice.
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