Bankrupt 2 years ago still getting defaults every month 1 June 2020 at 8:50AM in Bankruptcy & living with it 10 replies 501 views

Deedee153

I have a couple of accounts on my credit file with Lowell, I have asked them to change my account to satisfied so I stop getting defaults every month but they refuse to do so. 

I have pasted below what they have said but my credit score consistently gets worse as the years go on and the whole point in bankruptcy was to try and get a fresh start.

We are aware that you have a discharged bankruptcy. 

 

The account does not close at this stage as it will remain with TDX Group, which Lowell have appointed to deal with our Insolvent accounts.

 

The account could stay open with TDX Group for a period up to 3 years.  This is due to the fact that although you are discharged from your Bankruptcy after 12 months, a Trustee could still be appointed and under the terms of your Bankruptcy if there were any funds to be realised under your Bankruptcy, Lowell would still require dividends to be paid to reduce the amount of Lowell debt that is included in your Bankruptcy prior or after your Bankruptcy discharge date

 

You will not be contacted by Lowell for repayment on this account.

 

Regards,

 

 

Adamanta

Hi,
I had the same issue with Lowell. Make a complaint to ICO (ico dot org dot uk). It takes time, but Lowell had to correct the entries. Also sent me £75 cheque as a goodwill. 

P.S. They have sent me exactly the same response. 

WickedWitch123

Hi 
This is quite common in my experience.  My bankruptcy is due to fall off in 22 days (yes i'm counting down) and i still have defaults on there that i have fought and fought to get removed over the last 6 years.  Maybe someone with more knowledge than me can advise how to get them removed but i've never been able to.  
Good luck

sourcrates

Hi all,

Your not getting defaults every month, and going bankrupt does not mean they can be removed, your information is incorrect.

Once you are discharged, your accounts should show as a zero balance, and partially settled, but the default stays.

Your accounts defaulted on a certain date, where bankrupcy is concerned, that date should be no later than the date of your bankrupcy, the date will also be recorded on your credit file, your credit file is updated monthly, and what you see is just a monthly status update of your position.

Defaults stay on your credit file for 6 years regardless of what you do, if you repay the debt, enter bankrupcy, whatever you do, the defaults are never removed, until the 6 year period expires, they then drop off your file automatically.

Debt Camel covers the process here -

https://debtcamel.co.uk/credit-file-after-bankruptcy/

Adamanta

In my experience some companies updated records automatically, however most of them did not. Then I have sent them all email requesting to update my records (template in one of the stickies). Majority did that within few weeks. Only Lowell started to take a P.  Then complaint to ICO did wonders 

fatbelly

Deedee153 said:

We are aware that you have a discharged bankruptcy. 

 

The account does not close at this stage as it will remain with TDX Group, which Lowell have appointed to deal with our Insolvent accounts.

 

The account could stay open with TDX Group for a period up to 3 years.  This is due to the fact that although you are discharged from your Bankruptcy after 12 months, a Trustee could still be appointed and under the terms of your Bankruptcy if there were any funds to be realised under your Bankruptcy, Lowell would still require dividends to be paid to reduce the amount of Lowell debt that is included in your Bankruptcy prior or after your Bankruptcy discharge date

 

You will not be contacted by Lowell for repayment on this account.

 

Regards,

 

 

TBH that seems like a fair answer

Deedee153

I didn’t mean I wanted the default removed I knew that would stay there, what I meant was every month they put another d on my account to say I have defaulted on that months Payment, and it shows as my balance still remains the same. 

Deedee153

Adamanta said:

Hi,
I had the same issue with Lowell. Make a complaint to ICO (ico dot org dot uk). It takes time, but Lowell had to correct the entries. Also sent me £75 cheque as a goodwill. 

P.S. They have sent me exactly the same response. 

Thanks I will look into this and give it a try. 

sourcrates

Deedee153 said:

I didn’t mean I wanted the default removed I knew that would stay there, what I meant was every month they put another d on my account to say I have defaulted on that months Payment, and it shows as my balance still remains the same. 

No, its just a status update of the original default as i explained earlier.

It will show a "D" every month for 6 years, that is normal.

If the balance is incorrect, follow the debt camel link on how to complain !!!!!!!!

PlatinumHorse

sourcrates said:

Deedee153 said:

I didn’t mean I wanted the default removed I knew that would stay there, what I meant was every month they put another d on my account to say I have defaulted on that months Payment, and it shows as my balance still remains the same. 

No, its just a status update of the original default as i explained earlier.

It will show a "D" every month for 6 years, that is normal.

If the balance is incorrect, follow the debt camel link on how to complain !!!!!!!!

I just wanted to say thanks for this. Having been discharged 4 years ago (bankrupt 5 years ago) when seeing my report in detail recently, I was seeing a 'D' every month since bankruptcy for a couple of credit cards I had. Given I had not heard from them since, I thought this was a mistake on their part. However, if what you are saying is correct, this is normal, a 'D' is put against my credit report every month for 6 years before it stops?
I was under the impression that whilst it would have obviously defaulted at the time, the bankruptcy would cover all the debts being defaulted. What is probably oddest is that out of all the debts I had at the time, I have 4 which are like this now (Vanquis, Capital 1 credit cards) and 2 Simply be catalogs. The rest were all marked as settled. Is it just down to the creditor as to what they do?

mwarby

it's up to the creditors. All of mine marked as partially settled after a few months after IVA completed. The difference this will make to your abaility to obtain credit will be very limited, most will be more concerned by the bankruptcy than any defaults, and more concerned that you defaulted rather than if default is partially settled or not