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Help with defaults needed

51 Posts
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.
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.
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Replies
R.I.P Robin Williams.
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.
IS this normal??
IS there any way I can change this?
Thanks
IVA & fee charging DMP companies: Profits from misery, motivated ONLY by greed