Anyone one know specifics for default dates??

DaisyMoo

Hi folks,

I hope someone can help as I've been trawling the Internet for the last 3 days and getting nowhere fast!

My OH defaulted on a car re-payment on 13th July 2007
The default was applied to his credit file in December 2007

The default is due to come off this year, but will this happen on the anniversary of the default (July) or the anniversary the default was applied (Dec) ?

Although it's only 5 months difference, we are looking to buy a house together and don't want to put unnecessary credit searches through.

Thank you all in advance :beer:

fermi

Defaults recorded on credit reports stay for 6 years from the recorded "default date" on the report.

So if applied and dated as December 20017 it will stay until Dec 2013.

DaisyMoo

Oh that's disappointing - is there anything we could do? Effectively, that means the default has been active for 6 years and 5 months in that case.

I'm not conversant with the procedure from the credit agency reporting the default to the default being applied, but, to me, that process seems to have taken 5 months which is obviously a big pain for us and prolonging the default period considerably.

Thanks for your quick reply fermi x

fermi

The usual guidance from the Information Commissioner to creditors is that defaults on credit reports should be applied once arrears equate to about 3 months, and within 6 months of the relationship between you and the creditor breaking down.

That is because the test for a default going on your credit file is not just you beginning to miss payments, but is more wide ranging to accommodate situations where you get back on track with a reasonable time.

A ‘default’ can be said to occur as soon as a borrower fails to meet the terms of their credit arrangement. However, adopting this definition for credit referencing purposes would create difficulties since it is accepted that not all these defaults should be reported, for example, where weekly payments are late but are quickly remedied.

The term ‘default’, when recorded on a credit reference file should be used to refer to a situation when “the lender in a standard business relationship with the individual decides the relationship has broken down”

So unless there are highly unusual circumstances, placing the default after 5 months is probably just within acceptability.

DaisyMoo

!!!!!!! Looks like they have us then, v.frustrating as I don't think they followed their policies correctly, but my OH never bothered to investigate and just left it, too late to argue that now I suppose, plus it might delay the default being removed and I really don't want to risk that after all This time!

Eve1975

And do not expect Equifax to rush and pull it off.

I am applying for a mortgage Monday as defaults 6 years old this Friday but Equifax said 'sorry but it can take 7 working days for it to fall off, or contact us again if still not removed'...grrrrr. Luckily Experian remove it straight away (well next day) and that is who Nationwide use for their credit checks (who will be applying with)

Stupid credit rating companies!

M15matt_2

My default fell off credit file today 6 years to the day. Boom one fully green credit file...

DaisyMoo

Hey m15matt - that's great news, really pleased for you- I'm looking forward to the date my OH's comes off, it's plagued us for ages, 6 years in fact :0)

Could I ask if yours came off on the anniversary of the default or the anniversary of it being applied to your credit file, just out of interest?

Enjoy your clean credit record x