Debt paid off- does the default go too?

clusters

Hi there!

I defaulted on a loan of £8k about 4yrs ago. Totally my stupidity but I have been paying off the dreaded Capquest for the past two yrs and now the acct is settled.

Thing is, they say they have been paying the money to Liverpool Victoria (who the loan was with), acting as an 'agent' but the amount they asked me for was significantly lower than the default amount.

Is this right??

Can I now get a note put on my experian file saying that the acct is cleared?

Any advice would be great thanks

Clusters

petermb_2

If your lender has agreed to clear the amount owed with the payments you have madse then your record should reflect this. However your record will show the default for 6 years from the original listing.

clusters

This is where I am a little confused!

Capquest contacted me 2yrs ago with this debt, I figured they had bought it off Liverpool Victoria, it wasn't until the acct was settled that Capquest told me that they have been paying LV the money.

I understand that the default will stay there, but I can note that the acct is clear. But I don't understand how it can be clear when i haven't paid off the full amount that I defaulted on??

Warriorsith

It's simple:

Capquest has been the 'middle man' and informed LV that you were going to repay a set amount back. LV would've instructed Capquest that they'd accept a certain amount back and no lower.

LV would have agreed to this.

You've now repaid your agreed amount back to Capquest, this information should have been updated to your Credit File.

Your file will now say Default: Settled.

But as your aware it'll take a few more years for this to be completely removed from your file.

clusters

That's great news, thank you.

I wasn't sure and I figured you guys would have the answer!

I have written to Capquest asking them to send me a letter confirming that the debt is settled so I can send this to the credit agencies.

Does it take long for the details to be updated (by LV)?

Warriorsith

Once you have confirmation I'd write to both companies to update your Credit File as needed. It normally takes aound a month for the information to be processed (that's what I've noticed) they seem to have set days in which they send the info to the Credit Agency.

laurawaite

Hi, my OH had a debt that was transferred from a loan he defaulted on to Capquest and we managed to negotiate a lower settlement figure. This was Aug 2006. However I would say MAKE SURE that your credit records are updated afterwards saying that it has been settled/cleared as we assumed his had been done but I signed up to a free experian check your file thingy this month to have a look at our credit ratings only to find that it still hadn't been updated.