Default accounts on credit report

N2020

I am trying to figure out the best way to improve my credit score. It is pretty low and this is mainly due to a number of default accounts I have from my misspent youth. 

I have 4 accounts that show on my credit report from 2014/15. I have been making payments with a DMC but the payments are low and it would take me years to fully pay them off. 

My questions are these:

1. with default accounts I know they will be removed from my report in the next year. Should I continue to make payments at a low rate or try and pay off as much as I can before the 6 years are up?
2. Would a partial settlement on even 2 of the accounts be better, even if it mean I can’t fully pay off the rest?
3. If an account is default after the 6 year will it continue to affect my score even if it is not on the report?

Sorry these are probably very basic questions but any help would be great. Thanks 

Willing2Learn

Hi N2020 and welcome to the forum 

1.  Defaulted accounts are automatically removed from your three credit files, six years from the date of default.

2.  Whether you pay the full amount due or whether you make a partial settlement, your credit files will be damaged either way.  It does not make any difference.

3.  Your 'credit score' is not used or seen by lenders.  So it does not matter.  Lenders will 'score' you against their independent lending criteria and policies, using the data held in your three credit files, added to the data you present in your credit application, added to the data they already hold on you as an existing or returning customer.

N2020

Thank you Willing2Learn. That really does help alot 
Given as you said, the fact that my file is damaged regardless of whether I pay on the default accounts or not; if i were to just leave them am I correct that I risk CCJ's on each account which could be added to my file after the default accounts are removed in the next year? 

[Deleted User]

A settled account looks better than defaulted.  And avoids the chance of a CCJ.

W2L's point was paying in full v paying a settlement figure makes no difference.

Remember that although accounts drop off after 6 years, they'll remain enforceable for at least another 6 years as you're still paying them today.

Willing2Learn

And to add to zx81s comment about enforceability, you need to keep a sharp eye out for any 'Pre Action Protocol' letters and documents, which would signify the enforcement process has begun. 

N2020

Brilliant advice. Thank you W2L and Zx81, this really helps me a lot. 

spencerrothchild

Just wait six years and you have a clean record 

mall that’s happening around the world and the avalanche of bankruptcies things may change again

mbrealey

Jumping on this post as i too need some advice, Currently on a DMP and had two defaults for the same loan, i asked to remove Intrum Finance as they have obliviously bought the debt from another company and not my original lender, so they have removed one of them but it is the one that was listed with my original lender with would have come off my defaults this October, I now have Intrum listed which will stay on my defaults for the next six years even though nearly six year has past. So angry. Is there any thing i can do

adamp87

mbrealey said:

Jumping on this post as i too need some advice, Currently on a DMP and had two defaults for the same loan, i asked to remove Intrum Finance as they have obliviously bought the debt from another company and not my original lender, so they have removed one of them but it is the one that was listed with my original lender with would have come off my defaults this October, I now have Intrum listed which will stay on my defaults for the next six years even though nearly six year has past. So angry. Is there any thing i can do

Is this default for the same debt?

If intrum purchased the debt then the default would come under Intrum but would have the original default date or it should and would go off your file in October.

Russfila

Help..I had a Marbles credit card and in Dec 2016 I entered into a DMP with SC. The debt was included in the DMP and payments were made at £13 through stepchange. Due to other refunds I made full and final settlements. All companies accepted except link. In May 2019 following a large refund I contacted Link financial and made another offer and advised my payments via stepchange would be changing as I was moving house and had so my outgoings were increasing. I advised payment would be stopping whilst my budget was recalculated and that if my offer was not accepted I would be happy to make token payments in the interim.  They wrote back rejecting the offer as it did not meet their criteria. I contacted all my creditors in May when i moved as well as stepchange. Following my move, Payments resumed in July at the reduced rate of £5 as calculated by stepchange. Throughout the period the payments showed as ok on my credit file . In October when checking my file i noticed Link had added a default in October so I contacted them and cleared DPA . They advised it was added due to missed payments in April,May,June. I followed this up with a headed e-mail (again showing my address). I received a read request but no further correspondence. After 8 weeks I took it to the FOS and contacted link to advise of the fact. They responded advising they had responded to my letter by post but sent it to my old address. The Ombudsman is saying they can't uphold my complaint as Link said they weren't aware of my new address until October and their internal records show they sent "a letter" about the default and they have a template of what the letter looked like. They claim the letter was sent to Me and Stepchange despite neither party receiving it. My credit file shows a linked address entry for link in May 2019 but link say it's not them. The ombudsman has said he would only uphold if i can prove they knew of my new address on credit file before October. Link said they didn't update it until February 2020. I would have met the payments had I of know. Im now faced with a default for 6 years. 

Russfila

Russfila said:

Help..I had a Marbles credit card and in Dec 2016 I entered into a DMP with SC. The debt was included in the DMP and payments were made at £13 through stepchange. Due to other refunds I made full and final settlements. All companies accepted except link. In May 2019 following a large refund I contacted Link financial and made another offer and advised my payments via stepchange would be changing as I was moving house and had so my outgoings were increasing. I advised payment would be stopping whilst my budget was recalculated and that if my offer was not accepted I would be happy to make token payments in the interim.  They wrote back rejecting the offer as it did not meet their criteria. I contacted all my creditors in May when i moved as well as stepchange. Following my move, Payments resumed in July at the reduced rate of £5 as calculated by stepchange. Throughout the period the payments showed as ok on my credit file . In October when checking my file i noticed Link had added a default in October so I contacted them and cleared DPA . They advised it was added due to missed payments in April,May,June. I followed this up with a headed e-mail (again showing my address). I received a read request but no further correspondence. After 8 weeks I took it to the FOS and contacted link to advise of the fact. They responded advising they had responded to my letter by post but sent it to my old address. The Ombudsman is saying they can't uphold my complaint as Link said they weren't aware of my new address until October and their internal records show they sent "a letter" about the default and they have a template of what the letter looked like. They claim the letter was sent to Me and Stepchange despite neither party receiving it. My credit file shows a linked address entry for link in May 2019 but link say it's not them. The ombudsman has said he would only uphold if i can prove they knew of my new address on credit file before October. Link said they didn't update it until February 2020. I would have met the payments had I of know. Im now faced with a default for 6 years. 

To add a question is the default date even right? Should it not be 2016 when I entered the DMP?