False Default on my Credit File and Debtor Refusing to Remove

Kaybird296

Hi guys,

Long time user, first time poster--please forgive any mistakes.

I'm financially in a pretty good and stable position right now, happily chipping away at all of my debts, money going into savings and so on. I'm 26 so I'm at an age where I'm really starting to plan for the future and trying to get all my ducks in a row.

Checked out my credit report the other day, and an account I had with Very went to debt collection agency The Lowell Group. I make consistent monthly repayments, every month without fail, and yet my account on the credit report is showing as "In Default" ever since it went to Lowell. None of my consistent monthly repayments are being recorded and I'm very concerned that this is having a really adverse effect on my credit file (everything else is showing as old settled accounts or current accounts that are without problems).

I contacted Lowell to ask them why this is showing as In Default when I'm making the payments and feel that this should be accurately reflected. The response I got was:

"Please note, we are unable to remove details of defaults as we are required to reflect true and accurate information on how your account was conducted with the original creditor. We are required to show this information for 6 years from the date of default, the information will not be removed from your credit file but once repaid we will have amend your file to show as satisfied with a zero balance."

Is there anything I can do or anywhere else I can take my concerns for review? I'm getting really worried that, even once I have settled the account (approx. 13 months from now), the default will still show until my early thirties.

Thanks for reading and in advance for any help you guys might be able to give me.

[Deleted User]

It will accurately show as a default on a monthly basis, but will fall off 6 years after the actual default.

A default means that you didn't keep to the terms of the agreement, even if later payments are then made.

fermi

No, that is the way it should show.

Once an account is defaulted, the monthly status code is always shown as a D/8.

The monthly status codes are meant to show how you are paying under the original contract terms, and once these are broken with a default then no matter what informal payment terms you come to with a collector, the account is still defaulted and that is NOT undone.

So the D/8 every month is just a status update on that, not a new default.

That is how a defaulted account is supposed to show, and any potential lender checking your report knows this.

It doers appear bad if you don't know the above, but it is correct.

The only thing that should change is the balance owed being regularly updated to show it reducing, and then the account having satisfied added when paid off.

fermi

Kaybird296 wrote: »

I'm getting really worried that, even once I have settled the account (approx. 13 months from now), the default will still show until my early thirties.

No. That won't happen.

Quite literally, every trace of the account and history are removed from your report 6 years from the initial original default date. No matter what.

Kaybird296

Thank you both, really reassured

fusionx212

did very default the account? did you fall behind with payments? if the creditor bought the debt you should request to see the default letters they sent if you were not aware etc, I would angle it that way