Showing default for years!

Matp840

Hi all, first time poster.

I've been lucky enough recently (depending which way you look at it) to inherit some money. This money is to be used for purposes of deposit for a house, which I didnt think I would be in a position to do for at least another 10 years, so that means I have needed to get my house in order (excuse the pun).

7 years ago I got a credit card. Usual stuff apply on this one, young, stupid, overspent etc etc and I couldnt pay. I buried my head and ignored the letters. The debt was with MBNA who then sold to Experto Credite in 2010 I think. I agreed with Experto to repay at the lowest possible amount. I had been paying this money monthly for 3 years when out of the blue I received a leter form Aktiv Kapital saying I am to pay them instead and not Experto. I had a phonecall from them and I set it up with them.

I have spoken to a mortgage advisor about mortgages (shock!) and he said we may struggle a little as my partner is in a DMP and he said few lenders will accept people in DMP unless all creditors show no defaults. So we got the credit reports and 2 of her creditors show as defaults which we are very annoyed about as the DMP company said they would ensure that wouldn't happen, but that's another story.

My file shows this (edited out the personal info)

Company: AKTIV KAPITAL (UK) LTD Started: 22/10/07
Default Date: 30/01/10 Account Updated to 04/05/14
Payment Terms: £18
Last Updated to 04/05/14
Account Status Details: (1 - 12 months)
[8] 8 8 8 8 8 8 8 ? ? 8 8
Account Status Details: (13 - 24 months)
8 8 8 8 8 ? 8

It says I am defaulting every month even though I am paying the agreed amount every month.

Is that right? Shouldnt it say agreement to pay or something similar and not default every single month? There is no mention anywhere of MBNA who have sold the debt, so surely the original agreement which I defaulted on has ended, and the payments I have with Aktiv Kapital is a new agreement, am I right?

I have credit with other companies and it is all upto date and I havent missed any payments on anything at all for 3 years, having seen the error of my ways I have been working really hard to try improve my credit worthiness and it seems this is a real stumbling block and would explain why I have been refused current accounts in the past.

Just to add, my partner has now ended the DMP as we rang all the creditors and paid them in full. I just have this one debt to sort, which I received a letter every month for 6 months offering to clear for half the balance and I wasnt in a position to do it, and now I am, they will only except 80% which I dont have :mad:

Any info much appreciated :beer:

fermi

No, as a default was recorded on 30/01/10. That basically says that the creditor has decided the contractual agreement has been broken so they have ended it.

Once that happens, an account stays as a status default every month no matter whether you have later made an informal agreement with a collector.

An AP marker applies to an account that they have decided not to default yet.

The status on your credit report remains in relation to the contract, so the status stays an 8 or a D.

Matp840

ah ok. Thanks for the reply.

So with the default first registering in 2010, even though it still logs as default now, will it be gone from the file by 2016?

fermi

Correct. Everything will drop off 6 years from that first default.

happy_bunny_2

Did you tell them you had funds on the phone?

When did you take the card out? Before April 2007? If so, they might not have an enforceable agreement which puts you in a good bargaining position.

You could also ignore them for a while until it gets sold again or the 50% offer gets sent again.

Before paying a penny, get confirmation of any full and final settlement offer in writing.

HB