After how long a default in my situation would drop?

cheekykid

I've been having 7-8 defaults after opening a business that went bust in 2013. I have since them put most of my creditors on £1 a month and have partially settled some.

Question:

Does this £1 a month means my D's won't disappear after 6 years have lapsed? some websites claim that the 6 year figure applies only to non paid defaulted accounts.

I quote what I read "Generally speaking, credit information, including CCJ's and Defaults remain on credit files for a MINIMUM OF 6 YEARS regardless of whether the debt has been paid off or not. In fact that is 6 years from the date of the last transaction on a particular account. So, if you took out a loan in 1999 and defaulted on it in 2000 but continued to pay a little each month with the last payment in 2004, that 9 year old default would still be showing on your file in 2009."

Are they correct? I'll be having a D on profile forever until i actually either settle or stop payments?

[Deleted User]

Sounds like you're reading some dubious sites.

Accounts drop off 6 years from initial default.

[Deleted User]

Deleted_User wrote: »

Sounds like you're reading some dubious sites.

Accounts drop off 6 years from initial default.

Apparently they're licensed by the FCA - https://www.turnerlittle.com/credit-correction/personal-credit-correction/

Google is a wonderful thing... another dodgy "credit repair/correction service" - OP please don't say you've applied

I think what they meant to say was that the default will drop off after 6 years, however as you've been making a payment on the account it's still enforceable by court action etc.

cheekykid

No, I haven't applied.

Thank you very much all for the info. I'll be default free next year :-).

[Deleted User]

cheekykid wrote: »

No, I haven't applied.

Thank you very much all for the info. I'll be default free next year :-).

However they can still apply for a CCJ on the debt up until the day it's due to drop off and start the 6 year clock again from that.

What is it for and how much?

Do you actually owe the money?

cheekykid

!!! wrote: »

However they can still apply for a CCJ on the debt up until the day it's due to drop off and start the 6 year clock again from that.

What is it for and how much?

Do you actually owe the money?

Yes I do owe the money.

Business failed and I ended up with around 63k of debts. Two personal loans and various cc's. I have partially settled some cc's and looking into partially settling all cc's in the coming months. The two loans currently stand at 43k so its no't not possible to settle this at all.

Question: Is there a "big" downside (other than hitting your credit file) with only partially settling your debts? Would the creditors involved in my debt situation refuse any further credit in the future on the grounds that "we lent you once and you didn't pay us back in full so why lend you again?"

[Deleted User]

A lot will. Some won't, depending on age.

Willing2Learn

cheekykid wrote: »

Question: Is there a "big" downsize (other than hitting your credit file) with only partially settling your debts? Would the creditors involved in my debt situation refuse any further credit in the future on the grounds that "we lent you once and you didn't pay us back in full so why lend you again?"

Obviously, paying the full amount due looks best on your credit file from the perspective of potential lenders. But since your defaults were dated 2013 and are removed from your file in 2019, it won't make that much difference. Your previous lenders may keep your credit history with them for longer, and that could effect a credit application with an existing creditor.

[Deleted User]

However, they may ask for a check on your current income and expenditure as you're only making £1 "token" payments and they can demand more if asked.

And if you refuse, they could take the CCJ approach.