When should an account default ?

*cassius*

Hi, I'm currently in the process of sorting my partners long list of debts out, at this time she has been with a debt management company since September 2013 and will have about 10 months to go before everything has been paid off, overpaying where we can.

I understand the defaults are 6 years before being taken off, however one of the debts is with Payday UK and they have never defaulted her account despite every month showing as a missed payment and with some of the entries going up to 6 months late payments before resetting to 1 month late however there is no default listed, should there have been one added at some point last year and is there a way to do this ?

At this moment in time, there are that many other defaults that an extra one wouldn't make any difference but would put back the account closure date to the beginning of last year instead.

does anybody know ?

Tixy

The guidance on filing defaults can be found here Principles for the Reporting of Arrears, Arrangements and Defaults at Credit Reference Agencies

And this states that a default may be recorded

As a general guide,
this may occur when you are 3 months in arrears, and normally by the
time you are 6 months in arrears.

Worth her writing to try to get them to adda default backdated to the month when they first reported a 6 to the credit reference agency. Sometimes creditors agree to do this.

*cassius*

thanks, ill check the rest of the reports and see what they look like as well, if they don't agree to add a default date would i have to escalate it further ?

turbo_paul

I believe the lender is entitled to register a default but not sure if they are obliged to, although thr line in the sand is usually the 7th month of arrears. Was she making any payments in this time or entering into any arrangements with the lender as this would make a difference to the number of months in arrears being reported and status of the debt on her file.