Avoiding default on credit file

foolofbeans

I had a loan with my bank and shortly after the inevitable happened, our outgoings had exceeded our incomings for too long and our straw clutching wasn't enough to prevent us being unable to pay our debts.
I contacted the bank who were extremely helpful and put it on hold for 6 months. Stupidly (slightly deliberately in a subconscious way) I didn't note the date and now I have a letter to say pay the arrears of £1000 by Boxing Day or a default will be registered.
Is there any way to avoid a default on my credit file? I have increased my hours at work so my wage will cover bills and debts but I'm having an issue with my employer sorting out the payment for the additional hours so can't guarantee I will get the proper amount in time for Boxing Day and I would struggle to find all of the £1000 anyway.
Is there a way to delay the default being registered or a loophole that I can pay off the arrears within an extra month or so? I know I'm clutching at straws but it is devastating to be so close to being able to start paying things off and being stung with a 6 year penalty

January2015

If you negotiate with the bank about repaying you may not get a default on your credit file.

To be honest, as you have not paid for 6 months already I would think your credit file will reflect this in some way - so you already have started 6 years of 'penalty' as you put it. It may be worth logging in to Noddle and/or Clearscore to check what the bank has been recording on your credit file.

sourcrates

Hi,

I'm afraid not usually, no, unless you can find the grand between now and Boxing Day. ?

They are legally required to send you a default notice, which, if not complied with, will lead to a default being placed on your credit file.

But, seeing as it's the season of goodwill an all, you could try ringing them and pleading your case, say if you can clear the arrears within 3 months, would they place a hold on defaulting your credit file ?

I can't garuntee it will work, but it may be worth a try, after all they were helpful once, they may be again !!

foolofbeans

Thank you. I thought it may be the case that I have to rely on their goodwill. I shall contact them with an offer to clear the arrears.
I had already checked Experian and there is no record of any arrears on my credit file with them. The loan doesn't show up and I wonder if that may be due to the fact that my middle initial is different to that listed on my bank account (I have tried to sort this out many times). I shall heck Clear Score and Noddle to see if they show anything different.

The_Debt_Expert

'Goodwill' can't really exist with this sort of thing, or at least shouldn't. I say this because lenders should treat everyone the same, and hence if your Ts and Cs state your account will defaulted after 3 months of arrears, it should be. If they didn't default you but then did someone else in the same situation, this would clearly be unfair and inconsistent. I'm just being honest and not wanting you to get your hopes up. As January2015 said, your credit file is already likely to show missed payments at least.

EssexHebridean

You have nothing to lose by asking. They may decide it will serve them better to delay for a short while than to default you, after which you have less incentive to clear the arrears quickly.

Good luck!

sourcrates

The_Debt_Expert wrote: »

'Goodwill' can't really exist with this sort of thing, or at least shouldn't. I say this because lenders should treat everyone the same, and hence if your Ts and Cs state your account will defaulted after 3 months of arrears, it should be. If they didn't default you but then did someone else in the same situation, this would clearly be unfair and inconsistent..

Actually i disagree, the outcome to ANY complaint, can be influenced by the person who deals with it, no matter what the subject matter of the complaint.

From my own experience, you will find creditors are notoriously inconsistent when dealing with issues like this, one example most people on this forum will be familiar with is Barclaycard.

Absolutely no consistency there whatsoever with how they go about issuing defaults, they tend to interperate the T`s an C`s how they see fit, and no one else.

The_Debt_Expert

Well, if they do, they shouldn't. There can be goodwill with some things, such as agreeing temporary/reduced payments, putting things on hold and so on, but in terms of whether an agreement defaults or not should be based on facts, not goodwill. I'm not saying it never happens, but if it does it's wrong.

sourcrates

The_Debt_Expert wrote: »

Well, if they do, they shouldn't. There can be goodwill with some things, such as agreeing temporary/reduced payments, putting things on hold and so on, but in terms of whether an agreement defaults or not should be based on facts, not goodwill. I'm not saying it never happens, but if it does it's wrong.

Search "Barclaycard" on these forums.

See just how inconsistently they treat people in regard to defaults.

Some are defaulted within a week of non payment, others 8/9 months or more, and every stage inbetween.

And this is just one company, allbeit the most notorious for not issuing defaults, when clearly they should of been.