What gets recorded after a default "drops off"?

ZsaZsa

Hi, I wonder if anyone can help.
I received lots of great advice here about some late payment markers which were placed on my credit file.
I've asked the ombudsman to look into it for me and I'm a bit baffled by their response.

the ombudsman say that because I was making payments beyond the 6 years, even if a default had been placed and subsequently dropped off, the account would still show in my credit file. My understanding was that the entire account would be removed. I've searched online and can find lots of info from forums, but nothing "official" that I could quote back.

Or, am I entirely wrong, defaulted accounts do remain on your credit file beyond the 6 years if still active?

Tia

ZsaZsa

https://forums.moneysavingexpert.com/discussion/5220175

This was my original thread

fermi

The whole account drops off. There will be no trace of it at all, even if the creditor keeps sending data to the CRA. The CRA will simply not display it on your report.

Most online source refer to the default, and don't mention the fact that the whole account goes as well.

Shall see if someone like James Jones or similar from Experian can give you some confirmation to give to the FOS?

Experian_company_representative

Hi ZsaZsa

ZsaZsa wrote: »

Hi, I wonder if anyone can help.
I received lots of great advice here about some late payment markers which were placed on my credit file.
I've asked the ombudsman to look into it for me and I'm a bit baffled by their response.

the ombudsman say that because I was making payments beyond the 6 years, even if a default had been placed and subsequently dropped off, the account would still show in my credit file. My understanding was that the entire account would be removed. I've searched online and can find lots of info from forums, but nothing "official" that I could quote back.

Or, am I entirely wrong, defaulted accounts do remain on your credit file beyond the 6 years if still active?

Tia

Your right, there are some great tips found here to help answer your questions, also thanks fermi for bringing this forum thread to our attention, much appreciated.

To confirm defaulted accounts from your Experian Credit Report are removed six years after the default date and this is irrespective of any outstanding balance.

Once a default drops off your report/file the lender cannot re-register it.

The six year period reflects how long credit report entries remain relevant to credit scoring, after which time we cannot justify holding the information.

Of course, an entry dropping off your credit report doesn’t affect your liability to repay any outstanding debt. And it could still have an impact on future credit applications as lenders often enquire on their application forms about any outstanding debt you have.

I hope this helps.

James Jarvis

DandelionPatrol

ZsaZsa wrote: »

https://forums.moneysavingexpert.com/discussion/5220175

This was my original thread

And https://forums.moneysavingexpert.com/discussion/5220175 is your relevant post. HSBC have acknowledged you were defaulted in 2008.

fermi

Experian_company_representative wrote: »

To confirm defaulted accounts from your Experian Credit Report are removed six years after the default date and this is irrespective of any outstanding balance.

Just to make that crystal clear, once removed no data/payments or anything about the account shows on your report from that point? Even if the account is not yet paid off?

Have you anything official we can quote one that to give to the FOS?

The FOS adjudicator seems to think it will still show something if still being paid, if I interpret the OP's question correctly.

I know the above is true, but seems the FOS are misinformed and require some sort of official source?

ZsaZsa

Thank you so much everyone. I thought I was going mad.
Fermi, that is absolutely what he is saying; because I continued to make payments beyond where any theoretical default would have dropped off, the payments would still show to date on my credit file. So a default would irrelevant at this point.
HSBC have twice issued a notice of default, but not actually gone through with it.
In addition, the FOS seem to think that, as my experian rating is excellent, that I have not been disadvantaged. However, isn't this only an indicator?
And wouldn't the FOS know this??

fermi

Some FOS adjudicators are pathetically clueless on credit file issues. The one in this case is simply dead wrong.

As said, if really needed and can't find any other official source that puts it clearly enough, perhaps James et al from Experian can provide something you can give to them to prove the point?

ZsaZsa

Great, thanks Fermi. I'll keep searching for something official, but I'll definitely push this further. I was sure that I was right on these points

fermi

http://www.experian.co.uk/downloads/consumer/experian-YCRE.pdf

An account is in default when you have not been able to keep to the terms of a credit agreement. We keep
a record of these accounts for six years from the date the lender decided you had broken the terms of the
agreement. The lender should have told you that they were registering the account as a default. The details
about that account will show how much money you owed on the date when the agreement was broken
(the defaulted date) and how much money you now owe. It will reflect any payments you have made to the
organisation since

Not sure if that is clear enough.

I know that means nothing ever shows ever again about the account, but not sure your adjudicator will get the point?

dumpyboy

It s not just adjudicator s but ombudsman think the the same , the ico set rules on how things are reported but do not want consumer complants tell you go to fos who are totally clueless