Default/Payment Crossover

boucho11

I joined these forums in January with about 4k in Debt and set myself a target to have this all cleared which I've done. This I'm particularly proud of.

The downside, my final piece of debt belonged to an old bank account. This debt was still showing as unpaid but not as a default. The bank passed my details onto a debt collection agency, ExpertoCredite, whom i called to discuss my options. They stated that they would be happy to offer me a payment plan. I explained that I would rather clear the debt before it became a default and was advised that as long as it was cleared before the end of December this wouldn't happen. So I explained I was getting paid before Christmas and would call back to pay in full.

As promised, I called back, cleared the payment in full. Checked my credit File today on credit expert and the bank has marked this as a default.

I've spoken to both the bank and the collection agency who are bouncing me between them trying to get this sorted. After busting my chops to clear my debt all year, receive a default at the end is a bit of a kick in the teeth. I was hoping to apply for a mortgage next year and I know that this really won't help.

Would really appreciate any advice that could be given.

Also, just to add, the amount in question was £588.

Thanks in advance

Tixy

Is the entry on your credit file in the name of the bank?
What date of default has been entered on your credit file?

Usually a debt being passed to a debt collection agency is an indicator of default in itself and so would be unusual for one not to be filed if the debt has been passed to a DCA for collection, though obviously it appears they have given you conflicting advice by phone.

boucho11

The default is only 14th December and it's now paid off in full. It's fairly confusing to be honest.

Yes the default is showing as the bank not the collection agency.


Just to add, I've read on these forums thats it's possible that if the default is paid within the first month this can be removed? Is this true?

Experian_company_representative

Hi Boucho11,

It sounds like you've worked hard on clearing your debt, so getting a default now must be a real blow.

Once an account has defaulted it stays on the report for six years, although it should be marked as satisfied once paid.

It's County Court Judgments that can be removed if they are paid within a month, which you may be thinking of.

As Tixy has said a company will normally mark an account as defaulted before it is passed to a collection agency.

Your bank should have been in contact with you before passing it to the agency to warn you it would soon default. If not, then we could arrange to query the default for you. Contact us with your details and we will be happy to help with this.

Regards
Neil

boucho11

Hi Neil,

Thanks for your reply. I would certainly be interested in getting this looked into. I don't remember getting anything stating I would default. The bank would more than likely have a copy of this. Do you know roughly how much notice they should have given me?

It seems I've had conflicting information from the bank and the collection agency. Making that payment this month has meant me having a very modest christmas for the sake of not getting the default where it seems I would have been just as well off accepting a payment scheme with them.

Thanks again

boucho11

Hi Neil,

Thanks for your reply. I would certainly be interested in getting this looked into. I don't remember getting anything stating I would default. The bank would more than likely have a copy of this. Do you know roughly how much notice they should have given me?

It seems I've had conflicting information from the bank and the collection agency. Making that payment this month has meant me having a very modest christmas for the sake of not getting the default where it seems I would have been just as well off accepting a payment scheme with them.

Thanks again

Experian_company_representative

boucho11 wrote: »

Hi Neil,

Thanks for your reply. I would certainly be interested in getting this looked into. I don't remember getting anything stating I would default. The bank would more than likely have a copy of this. Do you know roughly how much notice they should have given me?

It seems I've had conflicting information from the bank and the collection agency. Making that payment this month has meant me having a very modest christmas for the sake of not getting the default where it seems I would have been just as well off accepting a payment scheme with them.

Thanks again

Hi Boucho11, hope you had a good Christmas and new year.

How much notice the lender will give you of a default does vary between lenders.

We would expect that lenders record a default after an account is between 3 and 6 months in arrears. The Information Commissioners guidelines for recording defaults cover this in more detail here.

If you [EMAIL="uksocialsupport@experian.com"]email [/EMAIL]your details to us we will be happy to query the account with the company for you.

Kind Regards
Neil

boucho11

Hi Neil,

So I contacted my bank and they agreed to wipe the default from my credit file. So I'm starting 2015 in a much better place credit wise!

Thanks for your help