Defaults

amygeorge

My fiance has a default on his credit file. Before we met he got a number of loans out when he was 20, he paid them all off but missed one and we didn't know until we checked his file recently. It was defaulted at 400 but he had been getting emails asking for over 1000 (we had presumed that they were spam as he was getting a lot of them too). It has been defaulting for the past three years. Will paying it off now mean it will disappear? Or is the six year for defaults only after payment? Or should we just leave it as paying it won't do anything? We don't really want to give a payday loan company any more money after paying numerous ones over £10,000.00

fermi

Defaulted accounts are removed from your report 6 years after the initial default is recorded, paid or not.

Paid would look a bit better until that happens obviously.

Not paying could, maybe, result in court action though, so you have to weigh that risk.

Teqpro

It really depends on your future goals, in the meantime just offer them £5 - £10 a month as you don't want them to file for a CCJ at a later date so you need to communicate with them. If you are planning to buy a house then he is best to pay as much of his debt off.

Also If any of you have had a payday loan then some lenders will not accept this and refuse your application.