Removing defaults on credit file?

Rachid10

Hi Guys,

I am completely new to this site and have a few questions. I had an excellent credit history till around 3 years ago got into abit of debt at uni. I had a lloyds credit card which i fell behind on payments, I recieved few collection letters but nothing in the shape of a default letter and they defaulted me for £800, credit limit was £500 and the rest was charges which is now fully satisfied,

Secondly i had a small loan of £500 with natwest around the same time and again fell behind on 3 payments which resulted in a default and again no default notice letter, not only that because the loan defaulted they defaulted my current account aswell because they say its under the same umbrella. All the loan and current account have been repaid in full. Can they do this?. I'm really confused about this and wanted to know if i had a case to having them removed? I am improving my credit rating in the hope of getting a mortgage soon. what steps should i take?

Thanks Rachid

ch3101

Unfortunately a lender cannot have your credit file altered unless there has been some mistake. Since you deserved to have the defaults on your file then they cannot take them off.

redpete

You defaulted on the loans (failed to pay the amount you should have done at the time you were meant to have done), there was no mistake on the lenders' part that led to the default. What grounds for removing the markers do you think you have?

These markers tell potential lenders that you have been in trouble with debt before and they may take this to signify that you are a risk of getting into similar trouble again. The point of a credit record is to tell the story of how you have dealt with debt before and what your current financial situation is; if you were able to get rid of markers as you want then the history part would mean nothing.

DCFC79

[STRIKE]Sorry OP but I agree with previous posters. The defaults are a true reflection of yuor finance history.[/STRIKE]

matttye

To the other three posters; whether the default is deserved or not, the law says a default notice must be sent out and it must inform the debtor of what they can do to avoid a default being issued against them. If the notice hasn't been sent, the default is not valid.

That said, it would be very difficult to get it removed because the creditor would just say they did send it.

OP, you could send a subject access request to your creditors with a cheque for £10 (the maximum they can charge) and they must then provide you with all information they hold about you. They do not need to keep a copy of the default notice itself, but they do need to keep a record that one was sent. If there is no record, you have a chance of having it removed, but you would more than likely need to take them to court. The court will ONLY consider the law, whereas the Financial Ombudsman Service will consider the law as well as common practices.

DCFC79

matttye wrote: »

To the other three posters; whether the default is deserved or not, the law says a default notice must be sent out and it must inform the debtor of what they can do to avoid a default being issued against them. If the notice hasn't been sent, the default is not valid.

Ok I stand corrected then

matttye

DCFC79 wrote: »

Ok I stand corrected then

Section 87/88 of the Consumer Credit Act 1974 deals with default notices if you're curious.

http://www.legislation.gov.uk/ukpga/1974/39/section/87
http://www.legislation.gov.uk/ukpga/1974/39/section/88