Debt on credit record for 12 years?

Leon_G

Hi. I have an old credit card I defaulted on in 2008 that is still showing on my credit record. I’ve looked through some guidance on this and don’t think it should be there anymore – but could anyone confirm if I’m right please?

After paying a token amount for a few years, the bank closed the account in 2014 and wrote off the debt, which was great, but according to my credit record it will still be showing until the end of 2020, 12 years since I had my financial problems. On my record it shows as closed but as having previously been in arrears or on a debt management programme, depending on the credit reference agency.

I called the bank but though they were helpful they couldn’t resolve the issue. They said the account was never defaulted, and though it maybe should have been they couldn’t say why not as it was so long ago. Because it is now closed there isn’t anything they can do. As far as they are concerned the six years it stays on my record starts from the closure date. And if I believed anything was incorrect I should contact the credit reference agencies.

But I thought an account should be registered as defaulted once a default notice is issued, and the length of time it stays on record should start from then. This has been the case for all my other accounts (there are quite a few unfortunately), except for one where I also wrote to them and they agreed to change it so it defaulted from the date I first got a default notice, and it won’t be on my record any more. Or is whether the account defaults, and how long it stays on record, up to the individual bank? Many thanks.

fermi

Carefully read the info on recording default in this link

---> https://forums.moneysavingexpert.com/discussion/3172602

After that, if you feel that this should have been defaulted back in 20xx on your credit report, complain formally in writing to the bank, sating that:

- Not recording a default as per ICO guidelines means that the information on your report is inaccurate under the Data protection Act 1998.
- Not only that, but that it artificially and unfairly extends the time negative information displays on your credit report.
- That their claim that because the account is closed there is nothing they can do is false, and you remind them that they remain legal responsible under the DPA for the information reported to the CRAs, not matter what date or the status of the account.
- That unless corrected, you will be taking your complaint to the FOS and reporting the issue to the ICO.

Ben8282

You are correct that if the account was defaulted in 2008 it should no longer be on your credit report.
But was the account actually defaulted? Is it possible that this was an arrangement to pay rather than an actual default? I am also confused as to why the bank should suddenly decide to close the account and write off the debt.

Leon_G

Thanks for the replies. I'll look more closely at the info but think I will probably complain to the bank then.

Though it appears it wasn't formally recorded as a default, that is I believe what it was. When my money issues became too much, I didn't pay anything for some time and then later offered a token monthly payment. They did agree to it, but that's the same as with my other creditors and those accounts were recorded as defaults, so I don't know why this one was handled differently. Also I've no idea why they wrote it off (none of the others have) but I won't complain about that!

banks4u

I complained to Natwest about a default after it had been closed, as it showed as 2 missed payments. I complained and they put it right. Best thing to do is complain.