Credit file how do defaults/repayments work?

civil12345

Hi, I'm just a bit unsure on how credit files work when it comes to defaults and repayments. Might be best to explain with a made up example

Bank account overdraft of £1000. Everything is fine then get into trouble during 2013 and max out the overdraft without paying anything off it.

Defaulted April 2014 and account closed

Ignore it for a year

April 2015 agree to repay at £100 a month

Fully paid off March 2016.

I understand the default will drop off the file in April 2020. At that point does the account still stay on the file? Will it still show the balance of £1000 until April 2021 and then show a decreasing balance until April 2022?

Thanks

[Deleted User]

The whole thing drops off 6 years from default.

civil12345

That's great thanks. Would that still apply if I was still repaying it after 6 years?

ellison007

Yes, it would still apply even if you to continue to repay the debt after 6 years - is there is a default date of April 2014 it will disappear from your credit file in April 2020.


The debt doesn't go away tho', you are still liable to pay it & if you ignore it then the lender may possibly apply a CCJ which will then stay on your file for another 6 years, taking you up to potentially 2026 or beyond with a negative mark on your credit report.

[Deleted User]

Yes. The debt remains enforceable though, so if you were to stop paying, they may seek a CCJ which would then stay on your files for another 6 years.

civil12345

Thanks guys, I understand a lot better now.