Credit files, Defaults and self managed DMP

bh0687

Hi all.

Hoping for some wise advice on Defaults and Credit Files, which the CRA have not been able to answer correctly!

I'm currently sat with about 13k in debt, being repaid through a self managed DMP, as i opted against a recommended IVA, improving my situation by increasing income, and really cracking down on outgoings.

Managed to get it down from about 23 pretty swiftly through reassessments of a few things and disputes. And making payments to chip away.

I've started considering the future, and deciding on where I want to be in a few years, and this of course involves some sort of financial plan with foretasted expenditure on debt.

As i mentioned, i'm on a DMP my self, and am now monitoring my credit file to see how things are being reported.

Four of my creditors have reported the accounts as defaulted, they have agreed to my offer of repayment.
Now these accounts had their first default registered, but then each month thereafter they are still being reported as defaulted.

Now please dont respond the way the credit agency did, i'm not oblivious to the fact that these accounts entered default, nor am i under any illusion that they should be removed as they are in an agreement. I've defaulted, and it should show that.

Now for any kind of plan, I need to have some sort of timescale, and my plan is to be clear of debt, and with a reasonable cash saving by a certain date. my problem is when should this be?

I understand the default marker would remain for the full period unless I speak with the lender and they agree to remove it.

My query is:
If the account entered into default in January 2018, the date of the first default being recorded being 01.01.2018.

The lender and I are in agreement to repay the balance and payments are being made, however on each subsequent report, the account still has a default mark applied. so my credit report looks like:

Late payment - Late payment - Late payment - Default - Default - Default - Default - Default - Default.

Will my credit report show the default as cleared after 6 years from 01.01.2018, ie 01.01.2024

Or will my credit report show the default as cleared 6 years from the date the account is registered as settled by the lender. For example: account first marked with default 01.01.2018, balance repaid 01.01.2019. Will the default drop off my report 6 years from 01.01.2019, ie 01.01.2025.

I believe that as they have to inform you that a default will be logged, the answer will be 6 years from the date that notice was issued. But I feel i'm fighting a lost cause if i try and save a 10k deposit by 2024, if these defaults wont be cleared until 6 years from the date the account is settled, which at present is looking like about 2022.

Hope that all makes sense, and someone can clarify this for me :-) TIA

[Deleted User]

6 years from the initial default.

The subsequent ones are just status updates.

bh0687

Thank you zx81, this is what I suspected, but nobody could give me an answer as simple as this! Maybe it was my wording, but they only replied 6 years from the default, not as you've put it, 6 years from the initial default!

Cloneshormone01

I have A similar problem to you and I don’t want to spoil your party but previous comments on your issue might not be correct.

I went BR May 2012 discharged May 2013. OR told me that all creditors debt stopped on May 2012 and that all debt will be removed from file May 2018. All have except Nationwide who have a £31k debt that they say was not ‘settled’ until November 2013 and as far as they are concerned it won’t be removed until then regardless of BR date. I have written to Equifax and they have replied simply that Nationwide won’t remove it without an explanation why.

Strangely my credit score is marked as good and my partner (who was also BR with same debts same times) score is excellent. The Nationwide £31k debt has been REMOVED from his file

I have been refused a remortgage because of this despite LTV below 75%

Anybody any idea what I can do?

I want to get mortgage fixed Lon term before Brexit kicks off

[Deleted User]

Ask them again.
Ignore you score.
And ignore any Brexit scaremongering

sourcrates

bh0687 wrote: »

Thank you zx81, this is what I suspected, but nobody could give me an answer as simple as this! Maybe it was my wording, but they only replied 6 years from the default, not as you've put it, 6 years from the initial default!

Cloneshormone01 wrote: »

I have A similar problem to you and I don’t want to spoil your party but previous comments on your issue might not be correct.

I went BR May 2012 discharged May 2013. OR told me that all creditors debt stopped on May 2012 and that all debt will be removed from file May 2018. All have except Nationwide who have a £31k debt that they say was not ‘settled’ until November 2013 and as far as they are concerned it won’t be removed until then regardless of BR date. I have written to Equifax and they have replied simply that Nationwide won’t remove it without an explanation why.

Strangely my credit score is marked as good and my partner (who was also BR with same debts same times) score is excellent. The Nationwide £31k debt has been REMOVED from his file

I have been refused a remortgage because of this despite LTV below 75%

Anybody any idea what I can do?

I want to get mortgage fixed Lon term before Brexit kicks off

Once an account defaults, it stays that way for a period of 6 years, as ZX81 has told you, the default is reported on a monthly basis.


Now as regards the bankrupcy, Nationwide are incorrect in their assessment, they either don`t know, or they mis-understand your situation.
All your accounts should have a default date no later than the date of your bankrupcy, this is standard industry practice.


My suggestion would be a written complaint highlighting this error, and if they still refuse to budge, take the matter to the ICO (information commisionaires office) who deal with all cases of complaints regarding information breeches.