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Why 6 years?
ferry
Posts: 2,017 Forumite
Just curious really but why does a default stay on your file for 6 years?
Seems a long time to have a negative impact on a credit file when people usually recover financially well before this.
What's the thinking behind this?
Like I say, just curious!
Seems a long time to have a negative impact on a credit file when people usually recover financially well before this.
What's the thinking behind this?
Like I say, just curious!
:j
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Comments
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IVA & fee charging DMP companies: Profits from misery, motivated ONLY by greed0 -
I guess it is a compromise, between lenders who would like to know lots and lots about potential clients and fairness that people do recover financially.But a banker, engaged at enormous expense,Had the whole of their cash in his care.
Lewis Carroll0 -
Just curious really but why does a default stay on your file for 6 years?
Seems a long time to have a negative impact on a credit file when people usually recover financially well before this.
What's the thinking behind this?
Like I say, just curious!
maybe they justed rolled a dice,
“Life isn't about finding yourself. Life is about creating yourself.”
― George Bernard Shaw0 -
I think the six years is reasonable however i also think that they should have to default you as soon as you stop making the contracted payments. From what I have read here they mostly don't default you for a number of years after you actually default on these payments which means in reality you could have your future credit record affected for 12 years plus. Seems unfair but in some ways it will protect me personally from getting a mess again.Debt on 25/5/17
Mortgage[STRIKE] £61,999[/STRIKE] £59,335
Secured loan approximately[STRIKE] £20,000[/STRIKE] £19,353
Unsecured debt in DMP with Stepchange[STRIKE] £38,887[/STRIKE] £37,7630 -
debtisnotme wrote: »I think the six years is reasonable however i also think that they should have to default you as soon as you stop making the contracted payments. From what I have read here they mostly don't default you for a number of years after you actually default on these payments which means in reality you could have your future credit record affected for 12 years plus. Seems unfair but in some ways it will protect me personally from getting a mess again.
According to the ICO guidance they’re meant to default within 3-6 months of contractual payments being missed. In a lot of cases this does happen.
It’s when an arrangement is agreed and maintained that creditors might show the arrangement rather than a default on someone’s credit file.
James
@natdebtlineWe work as money advisers for National Debtline and have specific permission from MSE to post to try to help those in debt. Read more information on National Debtline in MSE's Debt Problems: What to do and where to get help guide. If you find you're struggling with debt and need further help try our online advice tool My Money Steps0
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