Debt payback, should it have been updated?

monochrome1

Hello Everyone,

I got myself into a bit of trouble with a credit card/phone contract. I made a start on paying this back in 2013. The debts were originally with Aqua (Credit Card) and O2. They were then obviously sold on to 1st Credit (Aqua) and Portfolio Recovery Associates UK Ltd.

The payments both started in December 2013 and are still ongoing although the credit card is due to be paid this month!

Question is, since I started this repayment plan both have been recording as a default on my credit file but the balance has been reducing. For example in January 2014 it shows as a default, but the balance reduces to reflect my payment made.

Is this right? Surely it should not show as a default as I made the payment? Both companies promised me that it would reflect positively on my report... Thanks in advance

bbk87

monochrome1 wrote: »

Hello Everyone,

I got myself into a bit of trouble with a credit card/phone contract. I made a start on paying this back in 2013. The debts were originally with Aqua (Credit Card) and O2. They were then obviously sold on to 1st Credit (Aqua) and Portfolio Recovery Associates UK Ltd.

The payments both started in December 2013 and are still ongoing although the credit card is due to be paid this month!

Question is, since I started this repayment plan both have been recording as a default on my credit file but the balance has been reducing. For example in January 2014 it shows as a default, but the balance reduces to reflect my payment made.

Is this right? Surely it should not show as a default as I made the payment? Both companies promised me that it would reflect positively on my report... Thanks in advance

When a default is registered on your credit file it doesn't go away when you agree to pay, it stays there for 6 years.

If you failed to pay initially for 6 months, then you would have had a default registered against you.

A settled default looks better than an unsettled default, hence why they say it'd reflect positively on your credit file.

monochrome1

bbk87 wrote: »

When a default is registered on your credit file it doesn't go away when you agree to pay, it stays there for 6 years.

If you failed to pay initially for 6 months, then you would have had a default registered against you.

A settled default looks better than an unsettled default, hence why they say it'd reflect positively on your credit file.

So although I am paying it, it still is registering a default on the payment each month? Is that right?

kloana

monochrome1 wrote: »

So although I am paying it, it still is registering a default on the payment each month? Is that right?

The account will retain its default status until a) it's fully repaid (in which case, it'll be showing as a satisfied defaulted account - but a default nonetheless) or b) until 6 years from the date of default (regardless of whether you pay or don't...keep paying it though, as it's marginally better for your credit file!).

PaulW922

It is a single default - the date does not change, however the new debt owner will update the file to show the debt reducing - but the default date should remain unchanged