Credit Rating - How to remove Default status due to error from DCA

linda008

Hi All,
I had defaulted mobile bill payment which I later settled after DCA offered me a deal for reduced amount.

As soon as DCA sent me reduced amount settlement I paid thinking that this was final settlement as per their letter.

It was almost 6 months back, I just checked my credit file and found that this account was still marked as defaulted. I had heated discussion with Experian after which they sent query to company and DCA.

Company's reply was that I still owe them money (the amount which DCA reduced).

My query is -
If DCA offers a reduced amount settlement, isn't it binding by law?

Giraffeseeker

Defaults stay on file for 6 years whether paid off or not.

Unless you negotiated otherwise, the account will be "partially settled" and there will be an agreement that they will not chase you for the remaining money. BUT, you DO technically still owe it, so they are within their rights to leave it on the file unless, like I said, you negotiated to have the debt marked on your file as "fully satisfied" and a zero balance.