Defaults Settled/Satisfied when I haven't paid off the money?

chriz1000

A couple of years ago I had to put one of my companies into administration, and it really messed up my credit file. I was left personally accountable for the business loans which I guaranteed, and couldn’t afford to pay off several credit cards that I had.

I have kept up payments on my mortgage, current accounts and phone however I entered into an agreement with all of my other creditors where I pay them an affordable amount each month and they leave me alone.

Now I’m at the point where I would like to remortgage, but that really isn’t going to happen with the state of my credit for some time. Today I logged onto Experian and it states that I currently have £5,000 of outstanding debt excluding mortgage’s. Now I know this is ridiculously wrong so looked at my full report. For some reason none of my business loans are even listed on it, the credit cards I have defaulted on state that they have been ‘Satisfied’ or ‘Settled’ even though I’m still paying a monthly amount to a company who has bought the debt. What disturbs me the most is that two Barclaycard accounts haven’t registered a default, they simply show 6+ months of late payments and have done so for the last 24+ months.

My questions

1) Does it show Satisfied/Settled because they have sold the debt on, if so can the company who bought the debt affect my credit rating in any way, IE a CCJ?

2) Why don’t things like my business debt show on my credit file? Do I really need to check them all, and if they aren’t on any the same question again, can they affect my credit rating?

3) The companies I’m in an agreement with but show 6+ months of late payments, surely this will just carry on forever with them permanently affecting my credit rating? If this is the case is there any way I can stop them without settling in full? Also is there anything to stop them waiting 4 more years until the other defaulted accounts are removed and then filing for a default?

Ideally I want to carry on paying the companies back with the frozen interest, but I don’t want to find out after 6 years I have a second round of defaults/CCJ’s from the companies which have ether bought the debt and are accepting my monthly payments, or Barclaycard who isn’t putting a default on my account just saying I’m forever a 6+ month late payer!

Any help much appreciated.

Jason_Bourne_2

1- yes, that's why. You can't default twice for the one debt. Normally the purchaser is now shown on file with the original creditor taken off (if they've accepted all responsibility for the reporting). Main thing is one debt one default.

2- check all 3 credit agencies.

3- I'm in a similar position with barclaycard, they say that because I've entered a formal arrangement they don't need to default.

chriz1000

Thanks Jason, so as far as you are aware even if it takes 30 years to pay off the Barclaycard one is going to remain on our credit files as a late payment?

If I stopped making payments to them surely they would then be forced to put a default on my account before filing for a CCJ? This then gives me a chance to agree to a new arrangement with them.

Jason_Bourne_2

chriz1000 wrote: »

Thanks Jason, so as far as you are aware even if it takes 30 years to pay off the Barclaycard one is going to remain on our credit files as a late payment?

If I stopped making payments to them surely they would then be forced to put a default on my account before filing for a CCJ? This then gives me a chance to agree to a new arrangement with them.

That's it.

If you want the default, break the arrangement.

The account would then be marked default until you pay it off or it drops off in 6 years from default date.

I didn't know this til recently.
I've kept paying mine as I'm hoping for a full & final settlement this month, so don't want a fresh default when I'm about to settle.

chriz1000

Good news, I spoke to Barclaycard’s customer relationship manager today and explained my concerns about receiving on-going late payments indefinitely, and how this will impact my credit file in a more negative manor than a default would.

She agreed that default notices should have been added to the accounts, and they are going to backdate the default notices on both accounts. She did say to keep an eye on my credit file for a few months to make sure the changes happen and don’t change back as that’s what sometimes happens.

Jason_Bourne_2

chriz1000 wrote: »

Good news, I spoke to Barclaycard’s customer relationship manager today and explained my concerns about receiving on-going late payments indefinitely, and how this will impact my credit file in a more negative manor than a default would.

She agreed that default notices should have been added to the accounts, and they are going to backdate the default notices on both accounts. She did say to keep an eye on my credit file for a few months to make sure the changes happen and don’t change back as that’s what sometimes happens.

That's good news :T

Was your file being marked with arrangement to pay or just marked late?
My file is marked AP for the last 3 years but they are refusing to change & back date to a default which I'm not happy about. They claim they can keep the AP marker as I have a formal arrangement in place :mad:

chriz1000

Thanks [=
It has just been marked at 'Late Payment', after showing my statement of affairs it was agreed by all lenders to freeze interest, and that I pay a token payment each month as I didn't have enough expendable income to reach the amount needed for and arranged payment plan.

Doesn't that mean that even after you have paid off all the debt, you will still have to wait 6 years for all the late payments to be removed? It seems unfair that you are being penalised on your credit file more than myself, because you are able to make larger payments. I guess it's part of the reason our banking system is in such a mess.

Jason_Bourne_2

Yeh, that's right. If much rather the default 3 years ago as I'm about to settle it anyway. It would drop off in 3 years, instead this arrangement to pay will show in my file for another 6 years.

Some people manage to get them changed, I've not been so lucky.