Default on Credit file with Payment Plan?

April2013

Hi,
I have 2 accounts which are managed by Wescot Credit Services (Debenhams card and Loan). I have had a payment plan set up for these account for well over a year and have never missed my agreed payment. I decided to register with Noodle today, and noticed that I have defaults for every month for these accounts depite making monthly payments. Is this correct? Should I have defaults. Will they not be removed until 6 years after I have cleared the debt?
Thanks for the help

fermi

A row of Ds or 8s in the status history are not new defaults. They are just status updates on the original default.

Everything will still drop off 6 years from the original default default, as recorded in the "default date" field on your report.

April2013

ok thanks, its a row of Ds. Will this drop off even if the debt is still being paid off (it should be fully paid by then though)? These are the only two I have on my file. Is there anything I can do to help get my score up. I anticipate that I will have to buy a new year at the end of the year and this is something that I will probably need assistance with.

fermi

Yes, everything, all trace of the account, will drop off 6 years from the original default date, even if the debt hasn't finished being paid off.

The default will be a significant negative factor on your report until it drops off, although a recent record of responsible borrowing and repayment will go some way to mitigate that.

Also see: http://www.moneysavingexpert.com/loans/credit-rating-credit-score#improve

April2013

thanks. I might see if I can dispute the default notice.

LegalBlonde

Can I hijack the thread just to clear something up in my mind??? Thanks in advance for all the help this board has really helped me so far already in 2014 and yesterday was my true lightbulb moment in getting RID of all my debt.

Anyway, I have a default from 2010 and I have been paying a monthly amount since roughly Feb 2012.

Will the 6 years run from 2010 then?

Is it a bit of a "debt myth" that if you get in touch and start paying, you make the time run again or prevent it from coming off your credit file...

I am paying it off and fully intend to continue to do so, fully intend that it will all be paid off within the next year, but I had presumed it would then stay on my rating for 6 years.


basically, the fear between me and the people I know, that is I have "lost" myself the 2 years time by starting to pay it again....which doesn't seem to make much sense but I just want to double check....thank you so much.

I googled and a money advice site said 6 years from

default, written off or settlement whichever is earliest....

I wasn't sure if it was original default, and what "written off" would constitute.

Thanks again in advance.

I would love to get my clock ticking on when I will finally be rid of all this. Regardless of that date, it will feel GREAT to get it all paid off.

Thanks

fermi

LegalBlonde wrote: »

Anyway, I have a default from 2010 and I have been paying a monthly amount since roughly Feb 2012.

Will the 6 years run from 2010 then?

If there a default with "default date" on your credit report as 2010, then the default and the entire account will be removed 6 years from that date in 2016.

That will happen no matter anything else.

LegalBlonde wrote: »

Is it a bit of a "debt myth" that if you get in touch and start paying, you make the time run again or prevent it from coming off your credit file...

That would certainly be a myth regarding accounts that have had a default recorded. They always drop off 6 years from the default date.

Please see: How long do accounts/defaults remain on your credit file?

LegalBlonde

Great thanks. I really appreciate your detailed response and quick reply.

I always seem to live in fear of companies "finding" me when in reality they have all found me and all appear on my credit report anyway!!

Good to know I am over half way through on this and will soon get the satisfaction of paying it off.

More annoying is a recent mobile phone bills that went to dreaded Lowells, I am going to pay it off but they have registered it to my credit file so I presume even though I am going to pay it off straight away, I am stuck with it until 2019!!! Onwards and upwards it is £80 phone bill so hopefully it won't affect lenders decisions too much in the future.

Thanks

fermi

LegalBlonde wrote: »

More annoying is a recent mobile phone bills that went to dreaded Lowells, I am going to pay it off but they have registered it to my credit file so I presume even though I am going to pay it off straight away, I am stuck with it until 2019!!!

Did you default on the phone bill payments in 2013 then? Or longer ago?

Lowells have a nasty habit (as do quite a few debt collectors) of putting recent defaults on older debts. Default dates should be an accurate representation of the account conduct within certain guidelines. Debt collectors can't just make up a recent date if that doesn't represent what actually occurred.

LegalBlonde

fermi wrote: »

Did you default on the phone bill payments in 2013 then? Or longer ago?

Lowells have a nasty habit (as do quite a few debt collectors) of putting recent defaults on older debts. Default date should accurate, Debt collectors can't just make up a recent date if that doesn't represent what actually occurred.

Thanks, I've had a look on the credit report (noddle) and although the account only goes back the last 4 months (when Lowells got involved) it says that the default date was 2012 which would be correct.

Thanks for all your help.