Clearing default

Diast

Hello all,

I've got a default on my file due to me being utterly stupid over a year ago and neglecting an overdraft. Since then I have been paying it off as much as I can per month, but in a couple of months I'm going to have the money to be able to clear it.

Do you think it would be possible to contact them and tell them that I can pay off the full balance in one chunk if they can remove the default? Or will this just not fly? I remember reading somewhere that it was possible to do this, but fairly uncertain. I know that it will change to satisfied once I have paid it, but it would obviously be much preferred for it to be fully gone from my file.

Thanks

Candyapple

All you can do is try and ask them as a gesture of goodwill if they will remove it. If they don't then you'll just have to wait out the 6 years because they are within their rights to keep it and just mark it as settled as it is a factual statement of how you ran your account.

m4rc

It's unlikely, it doesn't happen often as its a true and accurate reflection of your credit history, so in a way it's a bit deceptive to remove it. It's worth asking thouh as it does happen.

Once it's marked as satisfied it will have less of an impact on your credit file, and every year it will matter less, people have decent cards and even mortgages with a historic but settled default on their accounts. Once it is 6 years old from day of default it will cease to show on your credit files.

I know it would be preferred if it was removed, but don't get your hopes up, the times this happens most seems to be when people haven't made any repayments in a long time and then come to an arrangement with a company the debt has been sold to for a few quid that they will get their money if they remove it - they are not really fussed if you have a default or not they just want the cash, banks prefer to keep things a llittle more honest and as you have been paying there is not much of an incentive for them to do a deal.

Good luck

amstel2

Being satisfied makes hardly any difference it still impacts your file & still stays on for 6 years. You might as well save your money & it will drop off your file anyway after 6 years ditto for CCJs as well.

This barmy system gives you no incentive to pay.

MaebyJade

amstel2 wrote: »

Being satisfied makes hardly any difference it still impacts your file & still stays on for 6 years. You might as well save your money & it will drop off your file anyway after 6 years ditto for CCJs as well.

This barmy system gives you no incentive to pay.

I don't know, if in 2 or 3 years the OP wanted to get a mortgage a satisfied default will certainly look better than an outstanding one.

amstel2

MaebyJade wrote: »

I don't know, if in 2 or 3 years the OP wanted to get a mortgage a satisfied default will certainly look better than an outstanding one.

The point is thougt the OP would be better waiting for their file to be totally clean & they would stand far more chance of getting a mortgage anyway & on better terms. While the money saved not paying off the default could go towards saving for a bigger deposit.

Thrugelmir

amstel2 wrote: »

The point is thougt the OP would be better waiting for their file to be totally clean & they would stand far more chance of getting a mortgage anyway & on better terms. While the money saved not paying off the default could go towards saving for a bigger deposit.

Unless the proposed mortgage lender is the same as one that's been defaulted on. Will come back to bite you. When you least expect it in the future. Real bummer if they are offering the best rates in town. An extra 1% on a mortgage is a noticeable sum.

MaebyJade

amstel2 wrote: »

The point is thougt the OP would be better waiting for their file to be totally clean & they would stand far more chance of getting a mortgage anyway & on better terms. While the money saved not paying off the default could go towards saving for a bigger deposit.

I've read a few posts on where people are issued with a CCJ a few days before an unsettled default is due to fall of their record, so another 6 years wait. In the end it comes to deciding is it worth taking the risk of leaving it unpaid and then facing the consequences if there are any, be it a CCJ further down the line or refusal of credit etc l. Personally I wouldn't want that hanging over me but each to their own.

Westminster

It would only be an additional 6 years for the CCJ if you didn't settle it - I believe the window is 28 days or something very similar, during which time the CCJ will be removed and no record of it will remain.