My default has ruined mum's credit score - help

Prettylittlelotten

I took out a loan several years ago (with my mum as a co-signer) as I could afford the monthly payments of the loan but did not have a credit history due to my age at the time to take it in my name solely.

Unfortunately I lost my job a year into my loan payments, due to injury in the workplace, and was unable to keep up with my payments for around 4/5 months. I still paid off small amounts during this time, but not the amount required.

This loan company therefore moved my loan onto a 'debt management' company where my monthly payments decreased but my term length of the loan increased, this I could manage.

What I didn't know was that my mum had been sent several threat letters from the loan company, which mentioned 'bailiffs' and other debt management companies, informing her that the account was defaulted and that she was liable. We ignored these notices as my loan was then being paid with the new lender with no problems.

Since then I have paid off the debt management loan company with a settlement figure for the entire loan, however the company told me, as I was settling the term early it was called a 'partially settled' account, £0 balance.

My mum still has a default on her credit score and cannot re-mortgage her house as a result, i'm stuck in a rut here as I tried my best to have my default removed when I settled the account but the company said that the default was from the original loan company and they therefore had no access to this data.

All I want to do is relieve my mother from the default, I had paid off my loans now and am finally getting my finances on track - I can live with the default but sadly, because of accident, my mum is suffering and words can't describe how bad that makes me feel.

Please, anyone have any advice on what I CAN do?:(

Apples2

Sadly you can't just remove it. The default is a factual record of the account which was defaulted.

Your mum would have been a guarantor so should have made the full payments when you didn't, it sounds like she was given notice by way of the threats.

They weren't debt management companies, they are debt collectors.

The only people who can remove it are the ones who out it there but from what you say, it is all right and proper.

We always advise against becoming a guarantor even for family on here for precisely this reason

OneLife_OneShot

You can't do a thing about it, your mum legally is responsible for it as a guarantor. Sorry if that's not the answer you are looking for but its the truth.

somethingcorporate

You (and your mother) defaulted, this should remain on your credit records as a fact.

Unless there was an error in it being applied (i.e. you did not actually default) then I do not see why it should be removed and there is absolutely no reason for the loan company to do so.

happy_bunny_2

When did you miss payments and when is the default dated?

Prettylittlelotten

Payments missed back in 2007/8 - how long does default stay on your history?

happy_bunny_2

Stays for 6 years from the default date, paid or not unless a CCJ is granted, which will stay for 6 years from date granted.

Check the default date on your credit reports as some companies don't add it for a while, which is not correct but does happen.