Closed Accounts On Credit File Query

PFMC84

I had a long standing loan which was recently passed to a collection agency. I agreed a settlement figure with them and paid it off. When I check my credit score, the account with the collection agency shows as settled, but the original loan account with the lender is still showing as defaulted. So when will they stop this? Will they keep reporting it as a default for the full 6 years after it defaulted even though they sold it on? The original date of default was in April 2015 so that'll be April 2021. Just not sure how that end of it works so sorry if that sounds like a silly question. I would have thought the loan lender stopped reporting once they sold it on but perhaps not.

Also, if I am still paying off a debt that has defaulted with a collection agency, if the debt hasn't been paid off by the time the 6 years comes around, do they stop reporting the debt even though I'm still paying it off or do they keep reporting until I've paid it off and then stop? Or, (hopefully not) does going over the 6 years start another 6 year chain of reporting? Just want to get it all clear in my head. I've read so much about this and it gets so confusing sometimes. Sorry again for anything that sounds silly.

I have paid a few things off and only have a few more debts to clear to be finally debt free and want to get my credit in good standing for a mortgage application with my partner in next few years.

Ben8282

The defaulted loan will remain on your credit files for 6 years from the date of default

Willing2Learn

I think that even if you settle an account with a f&f settlement, the account will still be recorded on your file for six years from the date of default (2021)

You will still be able to get a mortgage with adverse data on your credit files.

PFMC84 wrote: »

... if I am still paying off a debt that has defaulted with a collection agency, if the debt hasn't been paid off by the time the 6 years comes around, do they stop reporting the debt even though I'm still paying it off or do they keep reporting until I've paid it off and then stop? Or, (hopefully not) does going over the 6 years start another 6 year chain of reporting?...

The account will always be automatically removed from your credit file, six years from the date of default. This is regardless of whether the account has or has not been settled.

PFMC84

I find it odd that if the debt was sold on to another company, why the original company are still reporting it as being defaulted. Surely it would show as settled when the new company bought it over? The new company are showing it as settled and are now listed in the "closed accounts" section on my report, but the original lender are still in the active accounts and reporting it as a default.