Help and advise with removing defaults...what's best course of action?

jonnym8083

Hi all I have been reading a lot lately about ways to apply for a default to be removed. Some requesting copies hoping banks have miss layed paper work others bargaining offering settlement for removal.

Does anyone have any success stories??

My concern with bartering is of they agree to remove the default I then settle and they don't actually remove it? Has anyone had this?

All views welcome

Thrugelmir

Lenders hold all the aces. As they know an unsettled default can cause all sorts of issues.

jonnym8083

So what are you saying?

jonnym8083

Sorry I mistook your signature for your reply and confused me.
Does anyone have any advice or success
Stories?

Tixy

The lender doesn't need to hold a copy of the default notice sent to you on their files. There are some templates around that suggest this may be an argument to use to get a default removed from your credit file - that is incorrect.

Its rare but there are some people who have reported sucess in getting a debt collector to remove a default in return for settling the debt. Advice on this if you want to try it would be
1) to ensure you have written confirmation from the debt collector that the data will be removed before you pay (as people have paid without confirmation and then be surprised when they won't remove it).
2) consider if getting the default removed is the best thing for you long term. E.g. the missed payments leading up to the default will stay on file longer if the default is removed, so could have a longer impact on your ability to get credit.

jonnym8083

Why would missed payments stay on for longer? I just wanna try anything to help improve my score basically for stupid past mistakes yes I should suffer the consequences but if there is a way I'll try anything

Tixy

jonnym8083 wrote: »

Why would missed payments stay on for longer? I just wanna try anything to help improve my score basically for stupid past mistakes yes I should suffer the consequences but if there is a way I'll try anything

If you have a default the credit account entry and default only stay on file for 6years from the date of default.

If you don't have a default then the credit account entry stays on file for 6years from the date you settle the debt. So if you settle now and the default is removed those missed payments will be visible for 6years from now (although the older they are the less impact they are likely to have on a potential lender's decision).

sirwiggum

Tixy wrote: »

If you have a default the credit account entry and default only stay on file for 6years from the date of default.

If you don't have a default then the credit account entry stays on file for 6years from the date you settle the debt. So if you settle now and the default is removed those missed payments will be visible for 6years from now (although the older they are the less impact they are likely to have on a potential lender's decision).

Especially if it is an arrangement to pay, which could be frowned upon by some lenders, which if you settled today would be on file for 6 years.

Vs. Defaulting, which removes the account 6 years after default.

Some of us found ourselves in the first option, whereby if it took 5 years to settle then 6 years of being present on file vs. defaulting and then a year later it would've cleared.
We actually asked the lenders to backdate a default or remove the account on the basis that not defaulting left us in a worse position!

fermi

MD86 wrote: »

Hi, I wondered if any of you guys could advise me what to do next?

Moved to a new thread ----> https://forums.moneysavingexpert.com/discussion/4887567