Link Financial

Nataliebee

Hi everyone,

I’m new here but just looking for some advice regarding link financial.

My relative had a Lloyds credit card back in 2016 when he was in the navy, when he came out he couldn’t afford to pay the card anymore. He called Lloyd’s and explained his situation so they moved him over to Westcott. He has paid £60 a month to westcott since 2016.

Yesterday I signed him up to credit karma to check his credit score and it shows that it’s with Link financial and they have put a default for every month on his credit file?!

Can anybody shed any light on where I can go with this? Surely he has been paying the debt every month so this shouldn’t be a default.

Any help would be really appreciated.

Thanks

[Deleted User]

The default is just a status update, showing that he has defaulted. Once defaulted, it doesn't undefault.

The markers will stop after either 6 years or once he has cleared the debt.

Willing2Learn

Hi Nataliebee and welcome to the forum

It is likely that the account would have been defaulted once it was 3-6 months in arrears. Assuming that was sometime in 2016, the defaulted account will be automatically removed from your relatives credit file, six years from the default date (during 2022).

Nataliebee

Deleted_User wrote: »

The default is just a status update, showing that he has defaulted. Once defaulted, it doesn't undefault.

The markers will stop after either 6 years or once he has cleared the debt.

He has never missed a payment though he just couldn’t afford the £160 a month so they moved him to westcott to pay £60.

It seems unfair that he is being penalised for actually making his payments apposed to not paying.

So confusing.

[Deleted User]

He's being penalised less for paying than for not paying, as the balance will be going down and will ultimately show as settled.

He also stands a much lower chance of getting a CCJ.

He's also done well to have it marked as a default, rather than an arrangement.

Nataliebee

Would it make any difference to his credit file if he was to clear the full debt now do you think? Or will it still take until 2022?

Thanks

Willing2Learn

It does not make any difference if your relative were to pay the full balance. The default will remain for the full six years.

And just to add a bit on what the default means. An account is defaulted once the terms of the original agreement has been broken, and that the relationship between the borrower and lender has broken down.

Although it seems harsh and that your relative is being penalised, it is an accurate reflection of what actually happened.

PRAISETHESUN

Nataliebee wrote: »

Would it make any difference to his credit file if he was to clear the full debt now do you think? Or will it still take until 2022?

Thanks

If paid off in full, the default will still be listed however it would be labelled as "satisfied". This will be better than an unsatisfied or partially satisfied default, however having a default on your file at all (satisfied or otherwise) will affect your ability to get credit until it drops off your file - ie. in 2022. As the default gets older it's significance becomes less, but you will still likely be limited to sub-prime credit (re)building lenders until it is removed.

Nataliebee

Thanks everyone. I’m just trying my best to help him sort this mess out. He’s 28 and will no doubt soon want to get on the property ladder so it needs resolving. He will be clearing the debt next month and hopefully this will make a slight change going forward.

Thanks again!

fatbelly

Another option would bee a 'partial settlement', where he offers a sum to Link in full & final settlement.

It still stays as a mark, but he gets some benefit by settling for a smaller amount.

Having said that, I think Link are not keen on those deals, if you search this thread.

https://forums.moneysavingexpert.com/discussion/115430

[Deleted User]

Nataliebee wrote: »

Thanks everyone. I’m just trying my best to help him sort this mess out. He’s 28 and will no doubt soon want to get on the property ladder so it needs resolving. He will be clearing the debt next month and hopefully this will make a slight change going forward.

Thanks again!

The default will still remain, whether fully settled or partially settled.

If you're looking to get a mortgage then you'll need to go to a broker that specialises in adverse credit histories potentially and be prepared to pay a higher rate of interest