Delingquent Account

bamgbost

Hi


Just logged into my Experian Account, and seeing that a Loan account I have has gone into Delinquent Stage.


What exactly does this mean? And what's the effect?
I am aware of arrears and defaults but what is delinquent?


I feel that any issues arising, I should have been provided some warning or notice. Should I have been told or warned about this at all?


Lots of Qs but appreciate if anybody has experience or advice on this.


Thanks

[Deleted User]

It means you're in arrears.

bamgbost

Ok. How does it compare to a default?

[Deleted User]

A default is when the account has been formally defaulted, normally when the lender considers it won't get back on track.

What is the actual status of the account?

bamgbost

zx.. just to provide a but of context:


I had told the lender 8ish months ago I was having money issues.... and would not be able to meet up with financial commitments for a while.
I made adhoc payments via. BACs transfer, but just token payments.


I spoke to them in Jan to say I will begin to try and get back on tracks with the view to clear any arrears I may have accrued in the interim.


Been making regular payments in Jan, Feb, Mar. Only this month did I pay a little extra to start to clear whatever arrears may have arisen.


Last night logged into Experian to see I have 5 months of Arrears showing and account shown as delinquent.


In all the discussions I have had, both 8 months ago, and in January. Nothing was mentioned about credit impact, adverse history, etc. So this has really caught me by surprise.


Does this answer Q above?

bamgbost

btw... the lender is a Credit union. Not sure if that makes a difference.

StopIt

bamgbost wrote: »

zx.. just to provide a but of context:


I had told the lender 8ish months ago I was having money issues.... and would not be able to meet up with financial commitments for a while.
I made adhoc payments via. BACs transfer, but just token payments.


I spoke to them in Jan to say I will begin to try and get back on tracks with the view to clear any arrears I may have accrued in the interim.


Been making regular payments in Jan, Feb, Mar. Only this month did I pay a little extra to start to clear whatever arrears may have arisen.


Last night logged into Experian to see I have 5 months of Arrears showing and account shown as delinquent.


In all the discussions I have had, both 8 months ago, and in January. Nothing was mentioned about credit impact, adverse history, etc. So this has really caught me by surprise.


Does this answer Q above?

Yes, it shows you're 5 months behind on your account. They could have defaulted you, and sold on the debt in less time than that.


Delinquency is basically meaning you're behind on your payments and it'll stay that way until you're up to date. No, your creditor has no obligation to notify you of this either or the effects on your credit file as it'll all be in the T&Cs of your loan.


I'm not being harsh, but surely you must know that being behind on your payments would have an impact on your credit history. They have to report correct information, so they would've reported that you have not met your obligations.


If you're in money troubles, contact a debt charity ASAP and if you're able to make up the arrears make an arrangement with your credit union to get back on track.

Anthorn

"Delinquent" is a new one on me and I can only find it on the U.S. Experian website.

It's worth noting that lenders themselves don't get statuses such as Up to date, settled, default, etc. They get status codes. Get your Experian statutory report and you'll see what I mean. That's what the usual blurb says anyway but I don't think anyone has actually proved it.

bamgbost

StopIt wrote: »

Yes, it shows you're 5 months behind on your account. They could have defaulted you, and sold on the debt in less time than that.


Delinquency is basically meaning you're behind on your payments and it'll stay that way until you're up to date. No, your creditor has no obligation to notify you of this either or the effects on your credit file as it'll all be in the T&Cs of your loan.


I'm not being harsh, but surely you must know that being behind on your payments would have an impact on your credit history. They have to report correct information, so they would've reported that you have not met your obligations.


If you're in money troubles, contact a debt charity ASAP and if you're able to make up the arrears make an arrangement with your credit union to get back on track.

Well I did have an issue and notified them. And said I will get back on track, which I currently am. However, do they not have a responsibility at some stage to actually tell me the impact it has on credit rating. I plan to try for a mortgage before year end, and have done a lot of work to resolve / rectify a lot of issues in recent months. Finally getting in a stable and good place... to go and see this staring me in the face! Quite annoying.


The plan was to clear all my other debts, car finance, loans, credit cards and have just this one left when applying. This is all on track, just didn't know they had listed me as delinquent. aaaargh! How bad an impact is this? Any ideas?

[Deleted User]

bamgbost wrote: »

However, do they not have a responsibility at some stage to actually tell me the impact it has on credit rating.

They'll have told you that they report to the CRAs in your original agreement.

The impact it has depends on the weight that any given prospective lender will put on it.

mrmagooooooo

bamgbost wrote: »

Well I did have an issue and notified them. And said I will get back on track, which I currently am. However, do they not have a responsibility at some stage to actually tell me the impact it has on credit rating. I plan to try for a mortgage before year end, and have done a lot of work to resolve / rectify a lot of issues in recent months. Finally getting in a stable and good place... to go and see this staring me in the face! Quite annoying.


The plan was to clear all my other debts, car finance, loans, credit cards and have just this one left when applying. This is all on track, just didn't know they had listed me as delinquent. aaaargh! How bad an impact is this? Any ideas?

Any account you do not pay the agreed payments is going to have an effect on your credit file. You really shouldn't need them to tell you that. you broke your agreement with them, but technically they already have told you that in the documentation you signed when you took out the loan with the union. Maybe im sounding harsh but it is as cut and dry as that. If you dont pay any credit agreement it will affect your credit file.

I wouldn't hold out much hope of a mortgage with any mainstream lender or a decent rate by the end of the year if im being honest. Your credit file now shows you are / were in financial difficulty which in fairness is the correct information.

Sorry if i sound harsh or brutal but it cant be sugar coated im afraid.