Slightly complex default question

luke5121

Hopefully looking to get some insights please!

I have a default on my account, which was last updated this month on my report:
Account start date 24/09/2011
Opening balance £ 167
Repayment frequency Monthly
Date of default 20/06/2012
Default balance £ 167

I had disputed the debt, following advised steps, asking for evidence etc. Long story short the outcome was this:
Following receipt of your complaint, attempts have been made to obtain further information from you to understand why you believe you are not liable for the above account, which you have confirmed you do not wish to discuss. Therefore, given the circumstances, and with a view to resolving this matter without further delay, I have decided to close your account and confirm that we will take no further action to recover the debt. This is done without any admission of liability or wrongdoing.

So they won't clear the debt, but they will stop chasing me basically. I have gone through the financial ombudsman but they are happy with this resolution. Regardless, my credit score sucks with this on - currently a 549 (noodle) (1/5).

My questions are:
1) Will this drop off my report in 2018? Will my credit score then be improved? I read notes about it still being somewhat visible?
2) I pay all my bills on time, this is the only default on my account - is this the sole reason my credit is so poor?
3) What happens to my credit score if I set up a plan to pay it/ is it worth doing so? For the sake of what's now £328

Thanks in advance MSE!

[Deleted User]

1) yes
2) not enough info to say
E) doesn't matter, the score is fictional and not seen by anyone. But your file will present a generally better picture to lenders.

luke5121

Thanks.

If I do start a repayment plan, do defaults drop off immediately.. What's the procedure RE these?

Ben8282

The first question that needs to be asked: Is this or is this not your debt?
I would not suggest setting up a repayment plan to pay something that is not yours.


I suggest that you get back to them and ask them to remove the default on the grounds that they cannot justify it. The current situation resolves nothing.

[Deleted User]

luke5121 wrote: »

If I do start a repayment plan, do defaults drop off immediately..

No. It's 6 years from default.

smdabs

I feel as though we may not be getting the full story here....


If you are in fact stating that a payment/direct debit was set up from your account and in your name, but not by you - this would need to be investigated by a fraud department.
If it is proven not to be you, this would need to be removed from your credit file and marked as a fraudulent transaction.


If the bank has set this payment up incorrectly, then it is very much their responsibility to amend as a bank error. They do have the ability to remove marks from credit files and the onus is on them is it is due to their error to have this removed. (You shouldn't even really have to ask them but hey, you just cant get the staff these days)


If you are adamant that this payment is not related to you, you need to write to the credit reference agencies, the bank, and the FOS again so they can conduct a thorough investigation.


If this is an oversight on your behalf, then while the bank may wipe the arrears for whatever reason (I don't see that being likely), then the arrears should in fact be reflected on your credit file as it was an error on your behalf.


I find it very strange that the FOS have agreed with the bank's resolution if this was not your error. Did you raise the credit file impact as a complaint point? They may not have investigated or considered this issue if it was not directly raised by you during their investigations.