What can I reasonably ask credit card companies to change on my credit file?

RCC

Hi All, I hope you can help! Thanks to the wonderful new MSE facility, I have today found out a whole lot more about my credit file. It's an education! About 5 years ago I had a lot of credit cards, and they all suddenly started asking for much higher repayment amounts per month - completely reasonably. I contacted all of them, agreed with each one to repay a lower amount each month, and thought that was that. I now see that some have noted me as a defaulter, with records showing missed payments, up to 2011-ish only. My questions are:
1) Is it ok for them to record me as a defaulter, even though I can prove I have always paid the agreed amount on time, albeit a much lower repayment per month than standard?
2) Some credit card companies are shown as a kind of amber "arrears" status, but others have me as a red "default" status - see above - for exactly the same situation. Can I reasonably ask them all to use the more lenient status?
3) I understand debts are removed from credit files after 6 years, but when does the 6 years start? From when the debt was incurred (ie the last spend on the credit card)? From when the account was put into default? From when the original lender decided to sell the debt to a secondary company (not debt collection agency)? When I make the last repayment?
4) For a debt that is noted as in default from Feb 2011, if I won the lottery and made a full lump sum repayment tomorrow, what will my credit file show in Jan 2017? If a I made a partial repayment, "partially settled", what will my credit file show in Jan 2017? If I make no further payments at all, what would my credit file show this time next year (after 6 years)? And how would that be different from doing the right thing and paying off the whole debt?
5) Where can I get solid information in writing on my personal circumstances? Citizens Advice referred me to their online info, which is great but not tailored to me.
Sorry for all the questions, and thanks for reading....

[Deleted User]

If you made arrangements to pay less than the contractual amount, then it would be right that they are marked to reflect that.

Defaulted accounts will drop off the files 6 years after the default. Those in arrears or on arrangements will carry on indefinitely, and will not drop off until 6 years after closure.

If you stop paying now, you run the risk of CCJs, which would add another 6 years before they dropped off.

National_Debtline

Hi RCC and welcome to MSE.

RCC wrote: »

1) Is it ok for them to record me as a defaulter, even though I can prove I have always paid the agreed amount on time, albeit a much lower repayment per month than standard?

Any departure from the original terms of a credit agreement by the borrower can be recorded as a default, even if the lender has agreed to accept those lower than standard payments.

RCC wrote: »

2) Some credit card companies are shown as a kind of amber "arrears" status, but others have me as a red "default" status - see above - for exactly the same situation. Can I reasonably ask them all to use the more lenient status?

Different lenders will apply different thresholds for determining when an account should be recorded as in default. See also response #1.

RCC wrote: »

3) I understand debts are removed from credit files after 6 years, but when does the 6 years start? From when the debt was incurred (ie the last spend on the credit card)? From when the account was put into default? From when the original lender decided to sell the debt to a secondary company (not debt collection agency)? When I make the last repayment?

For an account that has been defaulted, the account will drop off your credit file six years from the date of that default, whether the balance has been settled or not by then.

RCC wrote: »

4) For a debt that is noted as in default from Feb 2011, if I won the lottery and made a full lump sum repayment tomorrow, what will my credit file show in Jan 2017? If a I made a partial repayment, "partially settled", what will my credit file show in Jan 2017? If I make no further payments at all, what would my credit file show this time next year (after 6 years)? And how would that be different from doing the right thing and paying off the whole debt?

If you pay in full right now, the account should be updated to reflect the fact that it has been fully settled. Accordingly, a partial settlement will be recorded as exactly that. See also response #3. This time next year that account will no longer appear at all, whether you have settled it in full, partially or not at all in the meantime.

RCC wrote: »

5) Where can I get solid information in writing on my personal circumstances? Citizens Advice referred me to their online info, which is great but not tailored to me.

Other services may be able to offer you advice tailored to the information that you give them. We, for example, offer advice by web chat, and Stepchange have a similar service as far as I am aware.


Dennis
@natdebtline

Ben8282

Are you saying that 5 years ago ALL of your credit cards increased the minimum payment % amount at the same time. This is very odd ....

YorkshireBoy

Ben8282 wrote: »

Are you saying that 5 years ago ALL of your credit cards increased the minimum payment % amount at the same time. This is very odd ....

Not necessarily. It was in 2011 that the new "1% plus interest" rule was introduced for new accounts, and many existing accounts had their T&Cs varied. Previously many were paying, say, 2% and suddenly they were paying nearly 3% (1% + 1.87%), ie a 50% increase, on 24.9% APR credit card debt.

Ben8282

I understand now.
Unfortunately you made an unwise decision to ask the credit card providers to pay less than the new minimum payment. A better idea would have been to make the new minimum payment and spend on the card if you could not afford the new payments.
.What you say your credit report is showing about these accounts is confusing. You say you made an arrangement to pay with each provider but you make no mention of arrangement to pay markers but instead speak of arrears and defaults.
Are these accounts still showing as open accounts or closed accounts?

RCC

Ben8282, Thanks for your thoughts. I did try the "spend on card and pay increased min payment" method for a while, but the trouble was that after a while, I ran out of credit limit, and unfortunately when several cards all increased from, for example £5 to £200 - when you multiply that up, the credit limits didn't last long!
Re your last point - yes I agree, I was expecting to see some kind of marking for "lower than standard payments" - a kind of amber warning, if you like. I think one lender has done that and marked it as a kind of pre-default scenario, which I can't argue with at all. But the others say they can't and won't do that, and have gone straight for the full "default" status. The accounts are showing as open, apart from one company who sold the debt on, and marked it as settled. Looking at the other replies, it seems the "default" marking is standard.

RCC

Thanks zx81 and National Debtline - it all makes much more sense when you explain it so clearly. Much appreciated, I now know what my options are.

glentoran99

Just to add, the default status is better in the long run than the "more lenient" status