Default on old joint account on my credit file

Todd_Sweeney

Hello - there is probably nothing I can do about this, but would love some advice.

In my early twenties, around 19/20 years ago, I had a joint current account with a friend. We had a hobby and used to sell some of the things we produced on eBay, for pocket change really, and paid the money into there. I stopped being involved in this hobby after a few months. I thought my friend had taken me off this joint account (this is what he told me), and we drifted apart over time, as happens. I moved house a few times etc.

Fast forward to January 2019, and I receive a letter from a debt collection agency for unpaid debt of £200 odd. I couldn't work out what this related to, as I've always paid everything on time, asked for further details and, eventually worked out from them that it was for this current account, registered at a very old previous address.

I contacted my friend and he proceeded to tell me that he had experienced financial problems for the past few months, had kept this account without my knowledge, run up a small overdraft, and there we were. He apologised profusely. I was cross but also I felt sorry for him of course. I paid off the £200 because he couldn't, and hoped that would be the end of it. I was informed by the debt collection agency that the account was settled and is now closed.

I've discovered today that it has been recorded on my credit file with one of the agencies as a default. I found out because I was trying to get a personal loan from my bank and was refused it, prompting me to check my credit file with the agency they use. prior to this, that account had never shown up on my credit file, presumably because it was registered at an address I had long since moved from. Is there any way that I can dissociate myself from this joint current account, if we both write to the bank and explain what happened, or am I stuck with it on my file for the next 6 years no matter what?

I realise this was my error as I should have gone to the bank myself to make sure my name was taken off, but I trusted that my friend had done it. I can't believe that this has come back to bite me almost 20 years later, when as soon as I was informed of the issue I fixed it to the best of my ability.

Any help/guidance would be appreciated. Thank you.

[Deleted User]

It will remain on your files for 6 years.

You should disassociate yourself now to prevent any future occurrence and to make sure you're not tainted by his history in the future.

If you think the default should be older than it is, make a case for them to change it.

Todd_Sweeney

Deleted_User wrote: »

It will remain on your files for 6 years.

You should disassociate yourself now to prevent any future occurrence and to make sure you're not tainted by his history in the future.

If you think the default should be older than it is, make a case for them to change it.

Thank you. Yes, I thought there was probably nothing I could do. My friend only began defaulting on this overdraft late last year, so I don't think that the date can be changed. I could also put a note onto my credit file to explain, I guess? But presumably this will make little difference and I still will be unable to obtain loans or credit cards. What a nightmare.

[Deleted User]

Don't do a notice or correction.

It'll just make things worse as everything will need to be manually checked and it won't change the facts.

Todd_Sweeney

Thanks for your advice, it is much appreciated. One last question. Do the six years that this remains on file start from when the default first occurred? My file says "Date of default: 31/10/2018" - so this will drop off on 01/11/2024?

[Deleted User]

Yes,6 years from when the default was first applied.

D_M_E

If you haven't already, don't forget to close the account.

If necessary, and you know where the friend lives - which by what you have posted, you do - get him to go to the bank with you and both sign there and then to close it together.

May already have been closed since it's been sent to collectors but it's always best to make sure.

EDIT: yes, you are correct about the default fropoff date.

Candyapple

Has the account actually been closed now?

Have you checked all 3 of your credit files?
Experian: https://www.moneysavingexpert.com/creditclub
Equifax: https://www.clearscore.com
TransUnion (formerly Call Credit): https://www.creditkarma.co.uk

Todd_Sweeney

Candyapple wrote: »

Has the account actually been closed now?

Have you checked all 3 of your credit files?
Experian:
Equifax:
TransUnion (formerly Call Credit):

Yes, the account has been closed, and it is showing in the closed section of the credit report.

It is only showing on TransUnion and not on the Equifax or Experian files. However TransUnion are unfortunately the agency that my bank (Nationwide) used when I applied for the loan.

A couple more questions if anyone can help please?

1. Will this subsequently also appear on Experian and Equifax, or might I be lucky and it will be restricted to just TransUnion? The default occurred in October 2018 and it shows as "satisfied" on 07/02/19. The account end date is 31/01/19.

2. Would something like this mean that I won't be able to get any credit, mortgages etc. for the next 6 years potentially, or will its impact lessen over time?

Candyapple

Todd_Sweeney wrote: »

1. Will this subsequently also appear on Experian and Equifax, or might I be lucky and it will be restricted to just TransUnion? The default occurred in October 2018 and it shows as "satisfied" on 07/02/19. The account end date is 31/01/19.

It might appear at any time in the next 6 years on the other 2 files so don't count your chickens just yet.

Todd_Sweeney wrote: »

2. Would something like this mean that I won't be able to get any credit, mortgages etc. for the next 6 years potentially, or will its impact lessen over time?

You won't be able to get mainstream credit and will be limited to subprime lenders. Mortgages similar but there are lenders out there who lend to people with defaults but not at the best rates and usually you'll need a higher deposit as well. The impact of a default wears off slightly after about 4-5 years so as long as you've been keeping up with any credit commitments since you've had the default, you could try and apply for mainstream credit again but there are no guarantees.

[Deleted User]

1. Does the closed account not show on either then?

2. No you can still get credit, albeit at higher rates etc.
The impact will lessen over time yes.