Natwest CC help

Getoffmycloud

In December 2013 I decided it was time to start sorting out my debts. With my Natwest CC I was never making high enough payments so the debt kept going up and up. I wrote to them re. financial difficulty and the next thing I know my credit card had disappeared from my online banking. They then wrote to me and agreed to help me, but they would cancel my account. We agreed on an amount of pay every month, but unfortunately I missed the first payment. This was completely my fault as I mis-read the payment date. They then sent me a letter stating I hadn't kept up with my side of the bargain and I had to re-pay in full. This was around three months ago now. I wrote back and said I was really sorry I had missed the payment, I couldn't afford to pay in full and could we go back to the original agreement. They wrote again asking for the card to be returned, which I did and I have been paying the original agreed amount ever since, but I haven't heard from them since then. I just checked my credit file and it is showing as a default. I don't even know what that means, but any thoughts on what I can do in this situation?

Tixy

The letter where they asked you to repay the debt in full was most likely a notice of intention to file a default notice.

The default on your credit file indicates to other potential lenders that you defaulted on your original contract terms and is a usual consequence of agreeing reduced payments with a creditor. It will make it hard for you to get accepted for new credit.

It will stay on your file for 6years from the default date. If the debt is paid in full before that 6years are up it will show as a satisfied defaults.

Even if the debt isn't fully repaid within 6years the whole record of the account/debt/default will drop off your file 6years from the default date.

Have the credit card company agreed to freeze or reduce interest on this account?

Anthorn

Condensing that, they won't have closed the account, they have just withdrawn your credit facility. The default means that you haven't kept to your side of the agreement and have failed to make the due payments and an amount is still outstanding. A default on your credit history could impact your ability to get credit because the default will show up in credit searches.

The first thing to do is write to them and ask for the defaulted account to be removed since you are making payments. If they don't do that then whack a note on your account which should be transmitted to the other CRAs.

The default can only impact you if you intend to apply for credit including bank accounts, credit cards, mortgage, loans, renting property, store cards, etc., even energy, in the next six years. If you don't intend to do that you don't have a lot to worry about.

Getoffmycloud

Hi and thank you for the replies. I will write to them today and ask them to remove the default. I do intend to apply for credit soon - hopefully within the next couple of years as I would like to move and get a larger mortgage.....