default on credit file

lazza1978

Hello everyone,
I had a secured loan with Nemo which i took out in 2004, after a few years I got into difficulty due to my partners jobs and fell behind. The account went into default in April 2007. After the sale of the house there was quite a large shortfall but I have maintained token payments for the last 2 years. When I lost my bank card they were unable to take a payment and have applied to the courts for a money order, i defended my self stating that i wanted to settle without the courts intervention, and that i had been maintaining payments and the court have given us till 24th December to reach agreement. Nemo were very keen to contact me about this and I have agreed with Nemo to continue the payments at the previous rate. They have written to the court confirming this and i still need to.

The account defaulted in april 2007 and there have been no entries since then showing any payments on equifax, it does not show at all on experian.

I have two questions
1) will the default disappear from my credit file after 6 years which is April 2013 although obviously the debt still exists.
2) will the fact that the court have unfortunately become involved even though i have agreed out of court show a fresh item on my credit report and is there anything i can do to stop this?

Many thanks for any thoughts or advice you have,

fermi

1) Yes.
2) No, if the action has genuinely been stopped prior to judgment then it will not show on your credit file.

Saying the above, I would be careful to make sure that Nemo does indeed stop the progress of the case at court. I've seen in quite a few circumstances creditors promise that they will do this, only for someone to get a letter through the door a month or 2 later from the court stating that judgment has been granted.

lazza1978

Thank you, I will contact Nemo again, as i wouldn't want the judgement to be entered that will ruin my credit file for another 6 years.