default on credit file/credit rating

aims26-2008

Hi - Apologies, as this is my first message on such a forum but wonder if someone can help me?! Thanks in advance.
I have today reviewed my credit file and was most relieved to see I have a rating of 973 'excellent'. However, having called into my Bank to enquire about a loan I was told they cannot help me having considered my credit file.
I have come back to research my file and the only thing I do note is the following: -
I had a loan which was repaid on the basis of early settlement in 2009 - therefore, in theory I never did repay the whole amount, but I did pay in full the amount the Halifax did agree with me to settle early. The status of this does show as 'default' on my credit file - should it?! Is this what has affected my Banks decision do you think? My Bank rated me as a '1' on their in house policy ie excellent and see that I manage my monies well but wouldn't offer me anything further in terms of advice - or money!! I simply want to lend for the purpose of repaying my credit card balance in full and purchasing a new car - and to add insult to injury 1x monthly loan repayment will be half the cost of payments I meet right now so in terms of affordability I will be much better off!! Before I write to Halifax in this connection, any advice would be gratefully received - of course, I don't want to run the risk of being told I owe them any further monies in querying the Account status!!
Thank you kindly.

Tixy

Hi

The status of this does show as 'default' on my credit file - should it?!

Did you
A) fall behind with repayments on the loan and then offer a reduced sum in full & final settlement of the debt? Or
were you up to date with repayments, never having missed any, had a lump sum and phoned up for a settlement figure and then paid that.

If A then yes it would likely be correct to show as default - but should show as partially satisfied and have no balance currently outstanding.
If B then no it should not show as a default.

Is this what has affected my Banks decision do you think?

Absolutely will have impacted on their decision (that is not to say you would definitely have been accepted if it wasnt on file).

What is the date of default on the entry on your credit file?

aims26-2008

Hi,

Thanks for your reply. I was up to date with the payments. I sold my house following a divorce and had monies to pay it off, hence my view was the settlement I made was a 'full and final' payment.

The satisfaction date reads 25/02/2010 whilst the default date (which I recall being around the time I asked for the settlement figure because it did take a while to receive this figure) is 31/12/2009.

To add insult to injury the loan I took out included a credit card which I did rely on when I got divorced. I didn't have much choice. It was my understanding that this Account and repayment of the same was included within the settlement of the loan account but this also shows as a default although the status is 'satisfied'. It is also confusing in that the default date on that one says 24/07/2009 (I don't recall ever having defaulted!!) and the settlement date 01/08/2010!! This was 'settled' along with the loan which reads 25/02/2010.

All of this is total jargon to me and so far as I am or at least was aware, things were sorted out, paid off, job done so I am now quite concerned as to the affect of these entries.

Thanks so much. I'm grateful for your input.

Tixy

The loan - assuming you paid the usual settlement figure (ie the capital balance due at that point in time plus a couple of months interest) then you would need to write to them to complain about the default being added.

If you bartered them down and paid less than the captial outstanding at that time then I'd still write to complain and say that you were never informed that a default would be entered and never received a default notice.

The credit card also sounds like a mess. To have defaulted in July 2009 you would have likely have had to miss around 3payments running up to that date. If you didn't then that to is inaccurate and again its worth writing to them to complain about the record.

Hopefully an initial letter to them will get it sorted, if it doesn't you'd need to raise a formal complaint.

If you don't get them corrected then the credit card entry and default would fall off your record in July 2015 and the loan in Dec 2015.

aims26-2008

Thank you Tixy - your input is much appreciated. I will write to them on that basis. I know I didn't default on any payments for loan or credit card. That is for certain as I was always careful not to. Frustrating to say the least so hopefully the issue will be rectified.
Much obliged, kind regards.

Ant.Evs

Cant add much more than what tixy has said. spot on imo :-)