Defaults on credit file

irish_lad_1985

Hi everyone

I have 3 defaults on my credit file from credit card accounts I was unable to pay after becoming unemployed several years ago.

The debts amount to around £2000, and I was wondering if I pay these off now will the defaults be removed?

Also, do I contact the debt collection agencies about paying off the debts or the actual company listed in my credit file?

Any help is much appreciated

Thanks

nottoolate

no they would not be removed. the defaults would be marked settled.

aymz1983

Worth noting that settled accounts stay on your file for another 6 years from the date it was settled (as i found out to my annoyance the other day!)

So if your defaults are due to end soon (i.e. 6 years from date of default) might be worth just leaving them and wait until they disappear from your file. Otherwise you'll have them on there, admittedly marked as settled, but potential lenders could see the previous adverse information.

Hope that helps

Bugalugs

aymz1983 wrote: »

Worth noting that settled accounts stay on your file for another 6 years from the date it was settled (as i found out to my annoyance the other day!)

So if your defaults are due to end soon (i.e. 6 years from date of default) might be worth just leaving them and wait until they disappear from your file. Otherwise you'll have them on there, admittedly marked as settled, but potential lenders could see the previous adverse information.

Hope that helps

Is the bit about them staying on your file for another six years after they're settled definitely true? I thought it was from the default date, whether settled or not. You've got me a bit worried, as I'm paying debts off at the moment and intend to pay them off completely, but it's a bit soul-destroying if I'm just prolonging the problem!

nottoolate

Bugalugs wrote: »

Is the bit about them staying on your file for another six years after they're settled definitely true? I thought it was from the default date, whether settled or not.

its taken off 6 years from the default date no matter what.

cheops2006

Yeah after 6 years of the default date NOT the settled date

aymz1983

Ok....my Experian file states (in relation to account that's just been settled) that "settled accounts are kept on file for six years from the settlement date..."

That to me would mean that it even if the default was say, 5 years previous, if you settled it 5 years after default you would still have to wait another 6 years for it to drop off.

If I have misunderstood what I've read on my file please enlighten me!

aymz1983

It's why i was so annoyed as I was due to have a default drop off in 18 months but as the amount was so low I paid, thinking it would be fine. But then I read that, and I really got annoyed at having it stay on there for another 6 years

fermi

An account that was NOT defaulted stays on your report for 6 years from the settlement date.

An account that has been defaulted is removed 6 years from the default date in ALL cases.

http://www.experian.co.uk/downloads/consumer/mock-report.pdf

See the footnotes on entries C6 and C7

A defaulted account is removed from your report after 6 years whether or not you have paid the debt in full.

Also see.

http://experian.metafaq.com/help/Statutory/Credit_report/howlong_on_report

Whiner

aymz1983 wrote: »

Worth noting that settled accounts stay on your file for another 6 years from the date it was settled (as i found out to my annoyance the other day!)

So if your defaults are due to end soon (i.e. 6 years from date of default) might be worth just leaving them and wait until they disappear from your file. Otherwise you'll have them on there, admittedly marked as settled, but potential lenders could see the previous adverse information.

Hope that helps

If they are dropping off within 2 years, there is NO benefit to paying them.

aymz1983

ok then...thanks! Perhaps they ought to word things differently then, as it would be understandable to think that when they say six years from settlement date, it means six years from settlement date, regardless of default date

Once again a happier person lol.