Accidental default ruining credit file

wangtastic

Hti all,

I'm having a bit of an issue with my credit report due to a rather stupid oversight by myself and was wondering if there is anything I can do?

Issue in a nutshell:
I have a fully settled default on file from 2011 with Orange that's dragging my credit rating down.

Background:
I moved out in 2008 (rented) and took out a mobile mobile contract with Orange.
In 2010 I was made redundant so moved back home and cancelled my contract, however I also switched banks as due to selling my car and not having a local Halifax.
I found work again quickly and all was well however I'd made a massive blunder, I forgot that orange would be taking one last payment from my account (which no longer existed).
Needless to say the payment was unsuccessful and because I never had an overdraft it was rejected. (balance was zero).
I'd never given orange my new address as I had closed the account so they were unable to contact me about the outstanding balance.
I had left a forwarding address with the landlord but no mail was ever sent (I later found out the landlord demolished the property anyway to build flats).
The debt was sold to a company called DPL and they found me end of 2011 and when I realised what had happened I settled the debt immediately and thought no more of it.
I'm looking at getting a mortgage so thought I'd check my credit score to make sure everything was in order before applying and was horrified to see the default on my file.
Being new to the world of credit score I did some research and see that defaults stay on file even after being paid off.

So to my question: is there any way for me to clear this quicker than 6 years?
I'm 24 so that also works against my credit score but it's otherwise excellent with healthy savings and no outstanding credit (credit card paid off in full every month since 2009).

As the debt has been settled I was hoping there was a way to get it removed though I fear I may be clutching at straws.

Any help is greatly appreciated.

Thanks,
One massive plonker!

matttye

What is the date of the default?

You're unlikely to get it removed entirely but you should be able to get it backdated if the date is incorrect.

The only way you'd get it removed altogether is if you can prove that Orange is somehow at fault, or by convincing them to remove it. You can send a letter explaining the circumstances but most creditors play hardball about removing defaults.

You should be able to get a mortgage with a default that's a few years old, but should expect to pay a higher interest rate than those with squeaky clean credit files.

Buzby

Based on what you say, Orange would counter that you did not keep to your agreement, and as such the recorded data is accurate and reflects the status of the account.

For good measure they'll say they have an obligation to show the difficulties with you - and it's pretty hard to argue if the report is accurate.

By all means ask - they can only say no!

wangtastic

Thanks for your responses, it gives me hope

So if I understand correctly I can approach Orange about getting the default removed and, while unlikely, there is a chance they'll remove it?

Failing that the chances of me getting a mortgage are favorable only I'll be looking at paying a higher rate of interest?

Thanks again, I really appreciate you taking the time to respond

matttye

wangtastic wrote: »

Thanks for your responses, it gives me hope

So if I understand correctly I can approach Orange about getting the default removed and, while unlikely, there is a chance they'll remove it?

Failing that the chances of me getting a mortgage are favorable only I'll be looking at paying a higher rate of interest?

Thanks again, I really appreciate you taking the time to respond

I'd say 'very unlikely' but there is a minute chance, sure. They usually come back with a canned response about how it's a true and accurate summary of the account and they have a duty to report accurate information (I've been there).

About the mortgage though, yes you should be able to get one but may not be with a mainstream lender.

What you should do is concentrate on making yourself attractive to lenders from now on. If you haven't already get a credit card and repay it in full every month. Repaying in full stops you paying any interest on it, but it will help your credit report no end.