Help with defaults needed

feygan

I recently got an online 30 day free deal as I knew my credit rating has issues and it was time to get to the bottom of things to fix the problems.

After fixing all the obvious parts I found two things which seem odd. I have two outstanding debts from previous hire purchase agreements, I defaulted on these and they went to a collection agency. I set up an agreed payment plan that was within my budget with the two separate collection agencies and have never missed a payment since.

However in my credit report the two sections relating to these to amounts of credit show lots of defaults. It shows on time payments up to the date when I defaulted then defaults for the following couple of months upto the time when I began making payments to the collection agencies. After this point it shows a default on each debt for every month even though I have not missed any of my agreed payments.

I rang up to ask about this and was told it will keep showing as this until the balance is cleared as it was defaulted. This sounds odd as for me one of these debt is likely to be around 3 years before cleared fully. If I understand things properly that means another 6 years after that before the default no longer affects my credit score? So granted I had some financial trouble with a loan agreement, but then I make set payments and find this default actually stays with me for 9 years not 6.

Is this correct or have I missed something? I was under the impression these two debts would now be showing a good payment history and not to actually be showing my reliability to be getting worse.

matttye

The account will drop off your report six years from the first default marker. There should also be a 'default date' displayed and it's six years from that date it will come off.

Tixy

The monthly status updates just shows that the account has defaulted. This is normal and the default and whole record of the account will drop off your file 6 years after the default date shown on the account.

The thing that should be changing in the meantime is that the current balance should be reducing, and should be less than the defaulted balance.

Queenie40

Hi I have the same thing, made redundant in 2010 which is when my problems started, agreed repayment plans with the collection companies but no payments have been logged and its default for every month since even though I am paying monthly and the balance is going down.
IS this normal??
IS there any way I can change this?
Thanks

fermi

IF that is on Callcredit/Noddle, then that is normal and just how they show it. It's not a new default each month, but just an update on the original.

OneLife_OneShot

Exactly its not that they added a new default each month its just how its shown on the screen with the companies.