Defaults - Pays to check your history - Need help!

Scotty_Dog

Having a bit of difficulty with a credit company and would like some advice. Potted history is below, but my key question is if this finance company are behaving incorrectly.

• Had credit problems a few years back.
• Had a few CCJ's and also had a DMP.
• I was able to clear all of my debts about 18 months ago, all accounts on full and final settlement.
• Credit history ruined but prepared to wait the 6 years.
• Decided to check credit file with Experian
• One company has been recording a default on my account for 18 months with a zero balance.
• The account was one that was cleared with a full and final settlement.
• I queried it over the course of about 3 months and they were very poor. People on the phone would say, your correct but then nothing would happen. They seemed to be in confusion over what was happening.
• Raised a formal complaint with them and they have reviewed the case
• Written response was that they will continue to register a default for 6 years after the settlement.
• The other 4 companies all stopped registering a default when the balance was clear.

The "wits end" really has arrived now. After all the hard work to get to where i am, this is the last thing stopping me being where i hoped to be.
Are they correct to do this?
If not, how do i stop them doing it?

All and any help will be much appreciated!

sirwiggum

The account should be removed from your credit file 6 years after the default date, the fact that 17/18 years later they're registering a default is incorrect!!

What is the date of default on that account?

Scotty_Dog

Sorry, my mistake. 18 months, not years.....

Also, my point is that they keep updating the default every month, as though it is still in default. So my my maths it will be visible on my credit file for 12 years after it was paid off.

sirwiggum

Ahh I see.

They're only updating the original default marker.
These are not new defaults, merely that the account is/was in a 'default' state.

This will stay on file for 6 years since the default date.

You could ask them to close the account if it bothers you.

Regardless, it gets removed from your credit file 6 years from your default date either way.

What date is the default date?

al25

sirwiggum wrote: »

Ahh I see.

They're only updating the original default marker.
These are not new defaults, merely that the account is/was in a 'default' state.

This will stay on file for 6 years since the default date.

You could ask them to close the account if it bothers you.

Regardless, it gets removed from your credit file 6 years from your default date either way.

What date is the default date?

That's incorrect, they cannot register a "D" every month after it's settled. It should be an S or partially settled instead of "D".

BTW can the OP see the default date?

sirwiggum

al25 wrote: »

That's incorrect, they cannot register a "D" every month after it's settled. It should be an S or partially settled instead of "D".

BTW can the OP see the default date?

It looks like the account isn't closed, which was why I asked:

" You could ask them to close the account if it bothers you."

Wouldn't be the first time I'd settled an account and it still showed as open, with a 0 balance, but with default marker.

I used the following complaint:

"However, it is indeed the case that the account in question has been closed and settled, then:

-The CRA entry from <Lender> currently states that the account is marked as unsettled with an outstanding balance of 0
- Therefore <Lender> is recording inaccurate and misleading information on my credit file, in breach of the principles set out in the Data Protection Act 1998
- I require you to update the CRA record to show that the account is settled and that there is no outstanding balance on the account.
- This is now a formal complaint that I shall be taking to the FOS and ICO should you fail to update in accordance with their obligations."

Regardless, the default marker on the account will still show for 6 years since the date of default.

And they aren't new defaults every month, just updates of the original.

Scotty_Dog

Thanks for the feedback.

A litte more info if that helps:

Default date was August 2008.
A default with a zero balance (i.e. a red 8 in Experians world) has been regsitered every month for the last 21 months.
The balance readsas follows: "Current Balance: Satisfied"
Everyone else stopped reporting to anything to Experian when the amount was settled.

Scotty_Dog

Siriwiggum, just wanted to double check what you are saying. They are correct in reporting a zero balance default to the CRA's every month if it is a zero balance. I'm confused in that case as no of my other creditors in the same situation did this.

As for the account being closed, I was told it was verbally but will check again with them in writing.

al25

Scotty_Dog wrote: »

Thanks for the feedback.

A litte more info if that helps:

Default date was August 2008.
A default with a zero balance (i.e. a red 8 in Experians world) has been regsitered every month for the last 21 months.
The balance readsas follows: "Current Balance: Satisfied"
Everyone else stopped reporting to anything to Experian when the amount was settled.

Perhaps you can try sirwiggum's suggestion and they may stop updating it every month. Either way it's nothing to be concerned of, it should fall off CRA's at the end of August 2014.

Scotty_Dog

al25, yes, i'll write to them again. It has already been through their own formal complaint procedure where they reviewed it and have said that they are correct in their actions. But doesn't hurt to push harder!

Tixy

The Ds on the monthly status each month won't make any difference to how long the account stays on your credit file or how any potential lender will assess your file.