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FTB Mortgage AIP and old debt

135

Comments

  • fermi
    fermi Posts: 40,542 Forumite
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    edited 10 June 2013 at 9:25PM
    This is a default on the credit reference files that the OP said had been placed 7 years ago and had now dropped off. As far as I read it anyway. That means that nothing about that account should remain on the credit report. Neither the default or any dmp marker. EDIT: Nor any late payment markers.
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  • Thrugelmir
    Thrugelmir Posts: 89,546 Forumite
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    fermi wrote: »
    This is a default on the credit reference files that the OP said had been placed 7 years ago and had now dropped off. As far as I read it anyway. That means that nothing about that account should remain on the credit report. Neither the default or any dmp marker.

    Though will presumably show 84 late payment markers?
  • fermi
    fermi Posts: 40,542 Forumite
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    Thrugelmir wrote: »
    Though will presumably show 84 late payment markers?

    No. When the default is removed after 6 years, all account data goes with it.

    Late payment markers/status update, DMP marker, balances, EVERYTHING. Nothing is left. No more updates will show on the CRAs regarding the account.
    Free/impartial debt advice: National Debtline | StepChange Debt Charity | Find your local CAB

    IVA & fee charging DMP companies: Profits from misery, motivated ONLY by greed
  • Thrugelmir
    Thrugelmir Posts: 89,546 Forumite
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    fermi wrote: »
    No. When the default is removed after 6 years, all account data goes with it.

    Late payment markers/status update, DMP marker, balances, EVERYTHING. Nothing is left. No more updates will show on the CRAs regarding the account.

    I understand that. Not where the debt in question is still being repaid though. As the account will continue to be marked as in arrears on a monthly basis. This will be sufficient to trigger a warning in the system if a new credit line is being applied for.
  • fermi
    fermi Posts: 40,542 Forumite
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    Thrugelmir wrote: »
    I understand that. Not where the debt in question is still being repaid though. As the account will continue to be marked as in arrears on a monthly basis.

    No. It applies even where the account is being repaid.

    There will be no more info displayed on the CRAs regarding the account.
    Free/impartial debt advice: National Debtline | StepChange Debt Charity | Find your local CAB

    IVA & fee charging DMP companies: Profits from misery, motivated ONLY by greed
  • Thrugelmir
    Thrugelmir Posts: 89,546 Forumite
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    fermi wrote: »
    No. It applies even where the account is being repaid.

    There will be no more info displayed on the CRAs regarding the account.

    So where there is an ARP in place for a £1 a month repayment. None of the CRA's allow the lender to place any form of marker against the account?
  • fermi
    fermi Posts: 40,542 Forumite
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    Thrugelmir wrote: »
    So where there is an ARP in place for a £1 a month repayment. None of the CRA's allow the lender to place any form of marker against the account?

    If this an account that had a default recorded against it, then no they don't. The whole record goes when the default does after 6 years.

    I'm afraid that is the way it works. You may not agree that it is is fair, but that what the CRAs have agreed as policy on data retention on defaulted accounts with the likes of the ICO etc. As such, all three CRAs do the same.
    Free/impartial debt advice: National Debtline | StepChange Debt Charity | Find your local CAB

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  • Dan-Dan
    Dan-Dan Posts: 5,279 Forumite
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    But if someone read your info fermi and decided to stop their very old defaulted account payments on that basis , couldnt the DCA concerned flag it to a CRA ?
    Never, under any circumstances, take a sleeping pill and a laxative on the same night.
  • fermi
    fermi Posts: 40,542 Forumite
    Part of the Furniture 10,000 Posts Combo Breaker Rampant Recycler
    edited 10 June 2013 at 10:25PM
    Dan-Dan wrote: »
    But if someone read your info fermi and decided to stop their very old defaulted account payments on that basis , couldnt the DCA concerned flag it to a CRA ?

    No. They couldn't put any account data back on the report to say they had stopped paying.

    But if someone stopped paying, the DCA would still have the option of going to court. Any County Court Judgement would be recorded as a public record entry on the credit reports for a further 6 years. So you can't just stop paying with impunity without fear of consequence.

    A CCJ would screw the person's credit record for another 6 years, and in a worse fashion then any previous default.
    Free/impartial debt advice: National Debtline | StepChange Debt Charity | Find your local CAB

    IVA & fee charging DMP companies: Profits from misery, motivated ONLY by greed
  • Thrugelmir
    Thrugelmir Posts: 89,546 Forumite
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    fermi wrote: »
    If this an account that had a default recorded against it, then no they don't. The whole record goes when the default does after 6 years.

    I'm afraid that is the way it works. You may not agree that it is is fair, but that what the CRAs have agreed as policy on data retention on defaulted accounts with the likes of the ICO etc. As such, all three CRAs do the same.

    I intentionally posed my previous comment. So I'll leave it at.

    For the record and as an example. Experian allow Arrangements to Pay to be recorded in 3 ways by lenders.

    a. With the Arrangement marker and account in arrears
    b. With the Arrangement marker and account status undisclosed
    c. With the Arrangement marker and account status paid up to date.

    So if it takes over 6 years it will.

    The ICO is only interested if the information reported is factually incorrect and to the detriment of the individual.
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