unpaid overdaft effecting credit report

beulah_knight

Hi all,


I've just discovered through applying for a second mortgage that, Callcredit has a negative report on my file. Equifax & Experian don not have record of an unpaid overdraft, hence why I managed to get a first mortgage. What I have found out from my credit report with Callcredit is that the account was opened in 2007, limit was £1500 and I used £1200. After that point, the account was not touched, nothing was paid in nor taken out. The account slowly went over the overdraft limit around June 2015. Since then, each month has been recorded as a missed payment.
I managed to get a mortgage in 2016 with nationwide, at the time they did not use Callcredit, however they do now. What I would like to know is whether or not, its worth paying the overdraft off? As I understand it, if I don't pay it off it will be wiped off in 3 years time. This is due to the account going over the overdraft in 2015. If I pay it off, it will be recorded as settled but remain on there for 7 years.
To be honest, I'd be loathed to pay it off and be in worse position, due to the length of time it takes for it to be wiped off my report. However, if I settled debt payment is not viewed as that negative, then I would be prepared to pay it off.
Any advice or similar experiences would be greatly appreciated.
Thanks in advance.

[Deleted User]

Had the account defaulted?
If so, when?

You say it will drop off - they could also issue a CCJ up until the time it!!!8217;s due to drop off and become statute barred and potentially start the 6 year timer again, unless paid in full within 30 days of receiving the CCJ - which will be served to the last known address the account is registered at.

Why do you think it will show as settled but stay for 7 years?

If you pay it off now it will be marked as Satisfied and drop off 6 years from the default date still, or the Satisfies date.

Ben8282

The correct term is affecting not effecting.
You are saying that in 2007 you opened a new current account, were given an overdraft limit of £1500, promptly used £1200 of the overdraft facility and then from that point onwards there were no further transactions on the account of any sort. No money paid in. No money out. This situation carried on until 2015 when (presumably due to interest or overdraft charges) the account went into unauthorised overdraft at which point the bank started recording a status 1 each month for the account.
I am surprised that the bank allowed this situation to continue for 8 months let alone 8 years! It is almost impossible to imagine that a bank would continue to allow an overdraft facility on a new account which was overdrawn to 80% of the limit almost immediately that the account was opened and then abandoned. No further money paid in.
Not sure quite why you are expecting this account to be wiped off in 3 years time. Nothing you have said implies that the account has been defaulted. It would appear that the account is still open reporting a status 1 each month. Sorry to tell you this but nothing is going to be wiped off.
You can repay the overdraft, correct the situation and close the account. 6 years later it will drop off. Or you can do nothing. The situation will continue as it is. Maybe one day the bank will default the account and pass it to collectors. When they do this the information will drop off' 6 years from the default date.