Payments to debt recovery company showing as defaults on credit report

MrsMushroom

Hi there

I am looking for some advice.

I have been paying a debt recovery company payments for a debt for the last 6 months (Westcot), on time every month.

I have checked my credit report today and although the balance is dropping, each month I have made a payment it is showing as Default.

Why would this be?

[Deleted User]

Because you defaulted on the original agreement - hence the monthly default update.

MrsMushroom

So, although i'm paying the debt back my credit score is never going to recover until it's paid in full?

Am I better to go directly to the company the credit was with and pay them direct?

Or can't i do anything about it?

I want to clear my debts so I can get my credit score up and can save for a house, what's the point of me paying if it's not going to do me any good?!

[Deleted User]

You credit score is neither here nor there.

Lenders will view you most positively once you've paid back the debt - and the default will drop off entirely 6 years from the actual default date. And before then, the further in the past it gets, the better.

Save up because you may want a house one day. Or something else.

If you stop paying, the default could turn to a CCJ.

MrsMushroom

OK, thank you for your help. I am in Scotland so the default would drop off after 5 years for me.

[Deleted User]

Even better!

Regarding the default, I mean, obviously not living in Scotland...

National_Debtline

MrsMushroom wrote: »

OK, thank you for your help. I am in Scotland so the default would drop off after 5 years for me.

Hi

Defaults will still show on your credit file for 6 years in Scotland.

James
@natdebtline