Lloyds Default not removed from Credit file

Banners24b

HI all

I had a defaulted credit card with Lloyds the default for £2400 went on in 2009, it was passed to their collection ppl which I paid monlthy amounts to for a while. however in April 2011 I paid the whole lot off in one go. Got a letter from them confirming this and saying the debt is settle in full and they would update the credit reference agencies etc etc..

However, planning on buying a house in 2015 so decided to check my credit file for any bad things and also wanted to get a small loan for a car which was rejected and also to change to a new mobile phone company(also rejected) it seems Lloyds didn't/forgot to update my credit file and it still flags as defaulted 540 or so days after I paid it. I've written to them complaining about this and they wrote back simply with a letter offering £100 compensation. no explanation or anything.

I have since written back today again asking for them to explain what happened and to confirm it will be updated from April 2011. In my original letter I did ask for compensation but did not specify an amount. Is £100 resonable? or should I ask for more considering I can't get any credit for anything!

InsideInsurance

What exactly is it showing?

The default will show for 6 years after it is settled but should be showing as settled as of up to a few months after the payment was made

BugsyBrowne

Default stays on your credit file for 6 years from the date it was put on settled or non settled so 2015 it will drop off anyhow.

BugsyBrowne

InsideInsurance wrote: »

What exactly is it showing?

The default will show for 6 years after it is settled but should be showing as settled as of up to a few months after the payment was made

You beat me to it:mad:

Banners24b

Ok it still shows as "defaulted" but it should have changed to "settled" according to the research I have done. I appriciated it will still be on there. but a "S" looks better than a "D"

BugsyBrowne

Banners24b wrote: »

Ok it still shows as "defaulted" but it should have changed to "settled" according to the research I have done. I appriciated it will still be on there. but a "S" looks better than a "D"

As you say it if its settled then by rights it should say settled on your Jeremy kyle.

jen245

It doesn't matter whether its settled or not. A default, is a default, and will have the same effect on your ability to get credit, which until it drops off your credit files, will be pretty much zero.

Banners24b

Jen, I can't believe that is the case. everyone that had a default would run around declaring bankruptcy which lasts the same amount of time. I am sure lenders look into the size of the amount defaulted and the length of time it happened. i.e. a default for £500 that happened 5 years ago I am sure is not classed as a default for £25000 that happened 6 months ago. I'd like to think the credit reference agencies scoring algorithms are abit cleverer than that.

jen245

Believe what you want. You will have virtually no chance of any decent prime credit facilities, until its gone from your files. A default for any amount is still a default. You broke the terms of your credit agreement, and that's what lenders are interested in. They don't really care about the amount. You will probably, with time, be able to get credit cards from sub prime lenders, such as Vanquis, to help repair your credit rating, and build a good history for the when the default disappears, but you are kidding yourself if you think having a settled default on your credit file, isn't going to matter to a lender

TakingControl

jen245 wrote: »

It doesn't matter whether its settled or not. A default, is a default, and will have the same effect on your ability to get credit, which until it drops off your credit files, will be pretty much zero.

I got to disagree I am afraid. I actually got a prime credit card (0% balance transfer) whilst still paying off a defaulted credit card from 2010. I basically transfered the default balance onto the 0% card to settle the default quicker in terms of credit report whilst starting to rebuild my credit profile.

I think it all depends on your circumstances and the lenders criteria.

Banners24b

@takingcontrol, That's the point Iam trying to make. a big fat "D" does not always spell the end.

Anyway, my actual original post is more about my rights to compensation rather than Settlements Vs Defaults.

I paid the debt 1 and a half years ago, Lloyds never updated the status and still havn't. They know they are in the wrong as suggested by the £100 offer of compensation I didn't even have to fight for. Has anyone on here had something like this before and if so is £100 a fair amount or are they trying to pull the wool over my eyes.