Defaults Help/Advice

Will_E

New to the forum so please be kind but I’m in desperate need of help/advice and feel like I don’t really understand what’s going on.

I’ve been on a DMP for a few years but due to a few missed payments some of my lenders passed the debt on to debt collection companies (link & Cabot credit mangement). These companies show on my credit file as defaults from the moment they opened and won’t drop off my file until 2021/2022.

I was under the impression that I was doing what I could to pay off my debts (stupidly gained in my early 20s) but never really knew what defaults were until now (as I’m starting to look at mortgage possibilities with my partner).

From what I understand there’s no way to have these removed unless they were made in error. My only defense is that they have an old address for me and so I was never notified that these defaults were going to occur. I realise this is my own fault due to ignorance of the situation, I thought that as long as my DMP had my current address that things went through them.

TLDR: Is it worth me contacting companies to try to have defaults removed due to not getting the letter as I assume they were sent to an old address?

Also, should I update my address on a CarphoneWarehouse account that isn’t active anymore but is still shown as a lender on my credit report? (Says it will show for 6 years after... Although all payments were made perfectly on it)

sourcrates

Hi,

Allow me to clarify.

The fact you did not receive a default notice, is only a technical breech of the consumer credit act, and can easily be remedied by the sending of another one, there are no penalties for such a breech.

You are confusing a default notice, with a default on your credit file, they are two separate things entirely.

A default notice is a notice of sums in arrears, and usually gives you 14 days to remedy the breech, if you do not do so, then a default will be registered on your credit file.

If you are in any kind of debt management, where you are not paying the original contracted repayments, then defaults are inevitable, this should of been explained to you at the start of your arrangement.

Will_E

Thanks, I did think that this was probably the case. Just that was the only reason I could think to ask for it to be removed.

I know this is unlikely but do companies ever consider removing them if you pay off the amount? It’s at a few thousand but I may have that money soon. Is it better to pay it off quickly or considering the defaults will last until 2022 anyway, should I just continue with my DMP and use that money for deposit?

[Deleted User]

No they won’t remove just because you’ve settled what you owe

sourcrates

Will_E wrote: »

Thanks, I did think that this was probably the case. Just that was the only reason I could think to ask for it to be removed.

I know this is unlikely but do companies ever consider removing them if you pay off the amount? It’s at a few thousand but I may have that money soon. Is it better to pay it off quickly or considering the defaults will last until 2022 anyway, should I just continue with my DMP and use that money for deposit?

In my experience it’s mainly payday loan companies with whom you have had some kind of dispute, that will consider removing defaults from credit files.

Creditors must accurately record your account history, but having said that, any removal of information is entirely at their discretion.

I do know ignorance is not an acceptable excuse, perhaps if you had a good reason, you may get a different response, some people have successfully negotiated default removal as part of a settlement offer.

System

Will_E wrote: »

From what I understand there’s no way to have these removed unless they were made in error. My only defense is that they have an old address for me and so I was never notified that these defaults were going to occur. )

They are only required to send any correspondence to the last address they have on file for you. If you don't inform them of a change of address they're doing nothing wrong sending any notifications etc or even filing a CCJ against you at your old address.

Nebulous2

It might be worth posting in the mortgage forum with default dates and amounts. It would also be worth talking to a broker about your own circumstances.



Basically settled defaults are less damaging than unsettled ones and older defaults are better than recent ones. Once they are more than 3 years old options increase.

Will_E

Thanks for all your replies.

Just to clarify, I know it’s my fault they didn’t have my correct address, just wondered if they’d consider it. It’s my mistake because I thought I just needed to change it with my DMP.