6 year rule and defaulted accounts

Th3_W12ar6

Looking at my Credit File I can see that one of my credit cards shows that I defaulted in October 2010. I have been making regular monthly reduced payments since then (each month shown on my Report as defaulted) and will be making an agreed partial settlement lump sum payment next month to settle the account.:j

For how long will this old credit card account remain on my Credit File? Will it be displayed until 2016 (6 years from the date of the default notice) or 2020 (6 years from the settlement date)?

RichL74

I have a feeling it will be 2020 as you are making payments on it.

fermi

It will be removed from your report in October 2016.

Buzby

The default will cease to be shown in 2016, but the late payments will continue to show until 2020.

fermi

Buzby wrote: »

The default will cease to be shown in 2016, but the late payments will continue to show until 2020.

Not true. Every trace is removed 6 years from the default.

No more data on the account shows from that point. No late payments. No balances. No status history. NOTHING.

Buzby

The account is still active, therefore the provisions you outline do not apply. These are not 'late' payment, but payments to account - therefore as an active account, this takes precedence.

fermi

No this is a defaulted account. Indicating that the lender has ended the agreement.

A payment status history does not even show as it is as recorded as a D or 8 every month for default. After a default is registered late payments are no longer recorded either. Late payments (1-6) are only recorded in relation to undefaulted accounts.

The only thing that changes is that the balance will reduce until it is paid off, or when the account drops off 6 years from default.

As said the whole account drops off at that point.

Nothing remains on your credit report, and nothing new is recorded, even if you have not finished paying it off yet.

RichL74

I too thought it was 6 years from the last date you either a) were defaulted or b) the last time you acknowledged / made a payment.

So I guess I'm wrong too. Sorry for trying to confuse the thread creator.

fermi

It is confusing since it varies depending on the account status.

Default recorded = 6 years from the default date for all trace of the account to drop of with nothing recorded ever again.

No default = 6 years from the settlement or closure of the account.

Those are what all the CRAs do and has been agreed between them and the ICO/SCOR.

RichL74 wrote: »

I too thought it was 6 years from the last date you either a) were defaulted or b) the last time you acknowledged / made a payment.

Also last payment or acknowledgement has no impact on how long accounts stay on your credit files for.

I think you are thinking of the time limit for an account to be statute barred, which by coincidence also happens to be 6 years, but it is a different 6 year period start point and nothing to do with what is on your credit files.