Payday Loans Debt Spiral

Velli

Hello there!

First of all I apologise if this is not the right place for these queries.

I am a stupid 23 year old who was once an even more stupid 21 year old who fell into a payday loan debt spiral with Wonga and Wage Day Advance. I am now in the process of taking responsibility and seizing control of my finances by meticulously going through my credit report however have a few questions I was hoping someone here has the answers to.

By the end of 2015 I had taken one loan too many from Wonga (£250) and Wage day (£300) advance which led to defaults in both cases issued around May 2016. Fast forward a year after complaining to the Financial Ombudsmen for what I considered irresponsible lending Wonga recently came back with an offer through the FO for £600 which will cover both outstanding debts and hopefully get both defaults expunged from my record.

However around the same time I took a £1000 loan from 118 Money who have not put a default on my account but rather continuously noted BB every month for the last 15 months. Should the loan not have been defaulted back in 2015 when no regular payments were being made? Can I request a default for then? If I settle for the full amount outstanding when will traces of the loan drop off my credit file?

Thank you ever so much in advance.

[Deleted User]

You could certainly ask for a backdated default - you may get lucky.

If you cleared it today (assuming no backdated default) it will drop off your file in 6 years.

Candyapple

You do realise that even if you get the £600 to clear the 2 debts, that just because you pay them off, it doesn't mean that the 2 defaults will be removed as well?

Have you got some form of agreement from Wonga and Wage Day stating as such?

IAmWales

You don't appear to be taking responsibility, but blaming others.

Velli

Deleted_User wrote: »

You could certainly ask for a backdated default - you may get lucky.

If you cleared it today (assuming no backdated default) it will drop off your file in 6 years.

Is asking for a backdated default the way to go?

I intend to settle the loan and have 118 reflect this on my credit report which should hopefully buy me 15 months later down the line.

On the other hand I can settle now and have to deal with a 'settled loan' on my credit file for 6 years.

Which of these is the better option in your opinion?

Candyapple

Forgot to add, you should check all 3 of your credit files because just because it's marked as 'BB' on one of them, doesn't mean it doesn't show as defaulted on the others.

The free versions to check your credit files are below:
Experian: https://www.moneysavingexpert.com/creditclub
Equifax: https://www.clearscore.com
Call Credit: https://www.noddle.co.uk

Velli

Candyapple wrote: »

You do realise that even if you get the £600 to clear the 2 debts, that just because you pay them off, it doesn't mean that the 2 defaults will be removed as well?

Have you got some form of agreement from Wonga and Wage Day stating as such?

I am currently in the process of requesting they remove defaults in credit history which I believe they have the power to do? If they do is it likely since they basically admitted to irresponsibly lending to me?

Candyapple

Velli wrote: »

I am currently in the process of requesting they remove defaults in credit history which I believe they have the power to do? If they do is it likely since they basically admitted to irresponsibly lending to me?

Yes to first one, no to second.

Velli

Candyapple wrote: »

Yes to first one, no to second.

So in that case when will the loan cease to exist in credit file? From the date of when it was first defaulted? or the date it was settled in full?

Candyapple

Velli wrote: »

So in that case when will the loan cease to exist in credit file? From the date of when it was first defaulted? or the date it was settled in full?

6 years from the date it was defaulted.

AndyPix

Deleted_User wrote: »

You could certainly ask for a backdated default - you may get lucky.

If you cleared it today (assuming no backdated default) it will drop off your file in 6 years.

But dont the guidelines state that the credit file must show an accurate representation of the state of the account ?
And in this case, the account defaulted months ago