Debt not removed from credit report after DRO but is this worth pursuing

kidneydebt

I have a substantial debt of £13k owed to NatWest showing on my credit report. This debt was cleared by a DRO I took out in August 2010 which was then completed in August 2011. My credit report is showing the final payment on this loan as being October 2010 with the first default being November 2010.

I have not attempted to get any type of credit over the past few years so this has never been an issue and I have only just become aware of the debt still showing. I had to take out the DRO due to becoming very ill and having to give up work for several years. However, I am now back on my feet and have been employed for the past couple of years earning a good salary and I have also accrued some very healthy savings. I would like to put these savings into a deposit for a house purchase but will obviously need to improve my credit score before this is possible.

I have searched this site and found some helpful information about how to clean up after bankruptcy including the template letters as well as tips on how to improve credit. My questions is whether it is prudent to pursue this route given the length of time that has passed. The debt has 65 months of non-payments (66 including April). Will this automatically disappear from my credit file after 72 months or will it stay there until NatWest update their records? The DRO information will be wiped after the 72 months and I'd like to know if this loan data will be the same.

Thank you for any advice you are able to provide.

fermi

If it is defaulted on your report, then it will be removed 6 years from the initial default date no matter what.

You could have it marked as satisfied and the default date corrected to the DRO start date so that happens a few months sooner. Depends if 2/3 months matters in your case.

DCFC79

Don't improve your credit score, it's baloneye. Your history is what's important.

kidneydebt

Thanks for the information, this is exactly what I was looking for.

I'm in no urgent hurry for credit so I think I'll just leave things as they are until the data is automatically removed.

The-Joker

If you just wait six years it will be clear

zodiac

It might not necessarily be removed after 6 years. My DRO was over 6 years ago and I still had 5 different accounts showing as default on my credit record when I checked.

One of those was Natwest and they still haven't sorted it 2 weeks or so after sending letters pointing out the accounts were included in the DRO. The other banks have and i'm down to 2 now showing as defaulted still.

Electrum

zodiac wrote: »

It might not necessarily be removed after 6 years. My DRO was over 6 years ago and I still had 5 different accounts showing as default on my credit record when I checked.

One of those was Natwest and they still haven't sorted it 2 weeks or so after sending letters pointing out the accounts were included in the DRO. The other banks have and i'm down to 2 now showing as defaulted still.

I thought its automatic after 6years?

fermi

It is, 6 years after the initial recorded default date.

If the default date is late, then removal will be late, which is perhaps what they mean.

Electrum

fermi wrote: »

It is, 6 years after the initial recorded default date.

If the default date is late, then removal will be late, which is perhaps what they mean.

Usueally the default date is before the DRO, there wouldnt be any debts in a dro that are not in default are there?

fermi

Yes, sometimes there are. Overdrafts, some outstanding utilities, cards minimum payments are being paid on, debts under a DMP that someone has only just not been able to keep up with etc etc etc.......

Some creditors also wait absurdly long before applying a default.

It is a common thing in a DRO/bankruptcy/IVA etc to find accounts on the CRAs where the recorded default date has ended up being some or many months after the start date of the insolvency order.

It is why something like this is often required to clean up the files

---> http://debtcamel.co.uk/credit-file-after-bankruptcy/

Garethgrew

If the default date is a long time before the dro, then if they don't acknowledge the dro, then the six years will be up earlier

Its either six years from the default or six years from the dro date.

in my case all debts included were in default, a year or more, before the dro. So I'm happy they don't acknowledge the dro, my six years wil be up early.

It's only tax credits that I wish would acknowledge the dro.