Recent default on loan

Itslee

Hi I recently defaulted on a loan after being sick with cancer. I rang up most companies I was paying bills to such as mobile, car finance, bank loan etc... and explained I was going to be off work while sick and the only company was affected me the most was my bank loan which gave me the option to default which I had I didn’t do as it’s massively affected my excellent credit score.

My question is I’m back to work near the end of the year which I’ll be able to start paying back my loan as it was the only bill I couldn’t afford. Is there a way I can have default removed? I’ve looked online and the only thing I can do to boost my chance of future loans etc... is send a letter to all credit rating companies which an explanation which can be added to my credit file. But I’d really like the default removed as the default was not for bad reasons.

My loan was placed on hold with no interest to be added etc... so surely they can just resume my loan. They told me ignore all calls and letters from the debt company which I did and not heard anything since and get a call every 60 days where I get questioned about if I’m working etc... from the bank.

Thanks.

glennstar

If your lender is in agreement then you can pay the loan back and they will remove the default... because plainly you are not in default any more. PoR suggests they will probably leave a late payment record in place though, for all of the months the loan was not paid, unless you can sweet talk them round that too.

boo_star

glennstar wrote: »

If your lender is in agreement then you can pay the loan back and they will remove the default... because plainly you are not in default any more. PoR suggests they will probably leave a late payment record in place though, for all of the months the loan was not paid, unless you can sweet talk them round that too.

The OP mentions the bank saying to "ignore the debt collectors calls" abd that they complied with this so I'm not sure the debt is even with the original creditor at this point.

glennstar

boo_star wrote: »

The OP mentions the bank saying to "ignore the debt collectors calls" abd that they complied with this so I'm not sure the debt is even with the original creditor at this point.

Exactly right! Well read.

Itslee

Thanks for the replies. Far as I’m aware the loan is still with the bank but the priority team of the bank. They told me I would receive letters about missed payments etc... but they said they would only send as default due to the system. They said it wouldn’t be sent to a debt collector because they fully understand why I can’t pay.

But yer I don’t mind having something on file about it but I’ve been told a default is really bad to have on file.

boo_star

Itslee wrote: »

Thanks for the replies. Far as I’m aware the loan is still with the bank but the priority team of the bank. They told me I would receive letters about missed payments etc... but they said they would only send as default due to the system. They said it wouldn’t be sent to a debt collector because they fully understand why I can’t pay.

But yer I don’t mind having something on file about it but I’ve been told a default is really bad to have on file.

You defaulted. It's a matter of fact.

Lenders and DCA's have, by law, become a lot more cautious of doing deals "under the table" if debtors repay what they owe in exchange for the removal of adverse information.

They're essentially risking a big fine if they misreport what happened.

glennstar

boo_star wrote: »

You defaulted. It's a matter of fact.
They're essentially risking a big fine if they misreport what happened.

What is the nature of this fine and who is levying it and what law are you referring to?

The PoR here is pretty clear. My original comments are valid, given the additional information from the OP. Pay the balance, the default will be removed but there is likely going to be a string of late payment against the transaction. I can't see anything "under the table" here.