Credit File and Default Help

ron42_2

Hi all, just looking for some advice. I left the UK and I went travelling back in 2011, came back and then left again. I stupidly just ignored all my credit accounts.

I've just checked my credit file and I have three bank accounts in good standing order, one with a £1500 overdraft (not used). These all seem okay and shouldn't cause any problems.

I have six credit account defaults ranging from 2011-2014, totalling £3000. I've got the cash to pay these off completely which I will do in the next week or so after negotiating the best price to satisfy.

Will satisfying all the defaults make a difference to my credit rating? And how would I go about rebuilding it? Will it be a definite six years after the last default drops off before I will get any sort of credit again?

I can't believe I was so stupid at the time but just need to know what the future holds after the defaults are paid off,

Many thanks

TakeItAsRed

Ive read some posts on here, where the lender or the people issuing the default have removed it if they had agreed to pay the full amount.

No harm in asking the question. Just make sure you get it in writing if they agree..

fermi

Rare that you will get an agreement to remove nowadays, but if you don't ask you don't get so got to be worth a go.

A satisfied default is obviously better than an outstanding default, but it's really the default and how old it is that is the biggest factor.

You may be able to get sub prime credit or less favourable rates once default are quite old.

sparkles12_2

Hi ,

I have been successful in having a default removed however i had to show evidence the payment was in dispute before the original company sold it on , had i not got this evidence the default would not have been removed.

Although it is very difficult to have a default removed its not impossible however in your case it would seem the defaults are accurate , if you have an issue with the accuracy gather evidence and write to the lenders collection department.

It would seem though that they are filed in relation to truthful payment history though and legally they must record this with CRA's to show ability to pay.

You can call the collections department of the lenders who filed the defaults ( It must be the department that deals with filing the defaults as only they can help , a general customer service advisor won't know how to do this or deal with your query) and explain you were out of the country but if they give you an opportunity to rectify things you will pay the amount owing but only if the default is removed and only if you have a written agreement either via email or letter. You might be lucky and get someone understanding and work with you but if you admit you were in the wrong then the information filed is right.

Having a default satisfied makes no difference to what effect it has on you obtaining a loan , you might have people tell you " if its marked as satisfied" as in paid you might be considered for a loan as it shows your ability to pay etc , you won't a default is a default satisfied or not it has a massive impact on your credit worthiness its a big red no no even if it is paid but many lenders you owe money to will say " we will mark your file as satisfied once the payment is made" IT MAKES NO DIFFERENCE you will not get a loan either way .. mine have been satisfied for 5 years and nobody will touch me , so in my opinion if they won't work with you to remove the default and allow you to pay its no benefit for you as the default remains and will drop off after 6 years of the default date ( A default date must be the date the credit agreement was broken which is a maximum of 6 missed payments , it can't be after 6 late or missed payments ( unless its a secured loan for eg a mortgage) so check your credit files and see what the date they defaulted the account) It will drop off 6 years after this date satisfied or not

The only worry you might have is if you don't pay to satisfy the accounts the debt could be sold on to a debt collection agency which can be ongoing and messy , threats of court or the lender might apply for a CCJ to obtain the amount owing , if this happens you might end up with a CCJ against you additional to the defaults and a never ending stream of letters , CCJ will drop off after 6 years of the court order date

So overall , no paying the money owning wont make a blind bit of difference to your credit worthiness having them marked as "satisfied" and still defaulted is still very much a default which will drop off your file 6 years from the default date but the lenders or debt collection agencies will still chase you to pay up , im in Northern Ireland , we don't have bailiffs here but i believe in England and Wales they do and they still can apply through court to get the money from you which could result in a CCJ for each lender ( if they take this option)

I know this has i have been fighting with everyone for 5 years and learned this as i went along , i declared bankruptcy in 2009 . None of my debts were chased as i was thankfully covered by the bankruptcy order due to come off this year Not something im proud off but it was a bad time for me

Hope this helps and best of luck , hope you get sorted

glentoran99

sparkles12 wrote: »

Hi ,

I have been successful in having a default removed however i had to show evidence the payment was in dispute before the original company sold it on , had i not got this evidence the default would not have been removed.

Although it is very difficult to have a default removed its not impossible however in your case it would seem the defaults are accurate , if you have an issue with the accuracy gather evidence and write to the lenders collection department.

It would seem though that they are filed in relation to truthful payment history though and legally they must record this with CRA's to show ability to pay.

You can call the collections department of the lenders who filed the defaults ( It must be the department that deals with filing the defaults as only they can help , a general customer service advisor won't know how to do this or deal with your query) and explain you were out of the country but if they give you an opportunity to rectify things you will pay the amount owing but only if the default is removed and only if you have a written agreement either via email or letter. You might be lucky and get someone understanding and work with you but if you admit you were in the wrong then the information filed is right.

Having a default satisfied makes no difference to what effect it has on you obtaining a loan , you might have people tell you " if its marked as satisfied" as in paid you might be considered for a loan as it shows your ability to pay etc , you won't a default is a default satisfied or not it has a massive impact on your credit worthiness its a big red no no even if it is paid but many lenders you owe money to will say " we will mark your file as satisfied once the payment is made" IT MAKES NO DIFFERENCE you will not get a loan either way .. mine have been satisfied for 5 years and nobody will touch me , so in my opinion if they won't work with you to remove the default and allow you to pay its no benefit for you as the default remains and will drop off after 6 years of the default date ( A default date must be the date the credit agreement was broken which is a maximum of 6 missed payments , it can't be after 6 late or missed payments ( unless its a secured loan for eg a mortgage) so check your credit files and see what the date they defaulted the account) It will drop off 6 years after this date satisfied or not

The only worry you might have is if you don't pay to satisfy the accounts the debt could be sold on to a debt collection agency which can be ongoing and messy , threats of court or the lender might apply for a CCJ to obtain the amount owing , if this happens you might end up with a CCJ against you additional to the defaults and a never ending stream of letters , CCJ will drop off after 6 years of the court order date

So overall , no paying the money owning wont make a blind bit of difference to your credit worthiness having them marked as "satisfied" and still defaulted is still very much a default which will drop off your file 6 years from the default date but the lenders or debt collection agencies will still chase you to pay up , im in Northern Ireland , we don't have bailiffs here but i believe in England and Wales they do and they still can apply through court to get the money from you which could result in a CCJ for each lender ( if they take this option)

I know this has i have been fighting with everyone for 5 years and learned this as i went along , i declared bankruptcy in 2009 . None of my debts were chased as i was thankfully covered by the bankruptcy order due to come off this year Not something im proud off but it was a bad time for me

Hope this helps and best of luck , hope you get sorted

From my own experience thats not true, perhaps you couldnt get anything due to being bankrupt, I have 3 satisfied defaults and have been able to get overdrafts and car loans.

My mortgage provider also informed me that a satisfied default is much better that a unsatisfied one, they wont even consider lending with unsatisfied ones

zuluwarrior31

I think you need to focus on your current credit facilities than getting tied up in historical defaults. 'a default is a default' isn't particularly accurate, if you have more recently displayed 'credit worthiness' through CC's phone bills etc then this will be focused on more than historical data.

The amount you want to borrow can have more of an influence on the outcome because of affordibility than a default from 2011. Get a full and final settlement figure (calculate it yourself (do you want the equation) because the creditors will not give you a good figure) and get the offer confirmed in writing, that way you can stop the risk of forementioned CCJ or further collection action (which will hamper your ability to obtain credit)