Loan In default and credit rating

kit08

In November 2015 my ex partner made me sign for a £28000 loan with Barclay partner finance for him. It was a bad relationship which ended very quickly and included domestic violence. Barclay partner finance have been understanding throughout and I kept them up to date as I was unable to repay the loan. It is unsecured. The loan has been in default since June 2016. This is the only debt I have which has had a massive impact on my credit rating.
what I am asking is when will this loan come off my credit file ? Is it after 6 years from when the loan was first defaulted ? Or will it stay on my credit file until it’s related ? It isn’t an option to repay at this moment in time or anytime in the near future.  Barclays are understanding about that and my situation. 

jonesMUFCforever

Are you paying anything at all - even a nominal £1 per month?
If not it should drop off your credit files in 2022 - 6 years after default.
You say that Barclays are understanding - when was the last time you acknowledged the debt - as this could reset the clock?

kit08

Thank you so much for replying. I was paying towards the loan each month up until last year (January 2019). My circumstances changed again and I haven’t paid towards it since. The Barclays support team have rang me twice since to check in on me. No one has rang to discuss repayments since last January. Does that mean it will drop off credit file 6 years after I last made a payment ? Thanks again for your help 

DCFC79

kit08 said:

Thank you so much for replying. I was paying towards the loan each month up until last year (January 2019). My circumstances changed again and I haven’t paid towards it since. The Barclays support team have rang me twice since to check in on me. No one has rang to discuss repayments since last January. Does that mean it will drop off credit file 6 years after I last made a payment ? Thanks again for your help 

It will drop off 6 years from the last payment you made so yes it will drop off in just under 5 years.

During that time you may well get letters, phone calls asking about the debt etc.

But remember only you can see your rating, lenders etc see your history which is important.

kit08

Thank you. So they will see that a loan was in default many years ago ? Will I never be able to get a mortgage again ? Don’t have any other debt, never missed a payment on my current mortgage. I pay off my credit card each month after using it for large purchases. Literally the only thing on my rating is this loan. 

[Deleted User]

Yes, you'll be able to get a mortgage again assuming you maintain a healthy file.

The older the default, the better a risk you look.

DCFC79

kit08 said:

Thank you. So they will see that a loan was in default many years ago ? Will I never be able to get a mortgage again ? Don’t have any other debt, never missed a payment on my current mortgage. I pay off my credit card each month after using it for large purchases. Literally the only thing on my rating is this loan. 

A mortgage yes its possible if you follow the advice previously posted.

Carrot007

DCFC79 said:

It will drop off 6 years from the last payment you made so yes it will drop off in just under 5 years.

During that time you may well get letters, phone calls asking about the debt etc.

No, it will drop off 6 years after it defaulted so 2022, but could reapear if they take out  CCJ. The 6 years you mention is shen it becomes statute barred and cannot be collected (they can still ask though (once, per time it is sold on)).

sourcrates

People are getting confused here between default date and limitation act.

The entry on your credit file will drop off 6 years after the date of default, so as Mr jones and carrot above point out, it will be in 2022.

This will happen regardless of what else happens.

jonesMUFCforever

To be 100% right if the default was 2016 then it should drop off in 2022 but if the loan is just in arrears and dealt by Barclays internal collections  and it has not been defaulted then the clock is re set from 2019 (date of last payment) to 2025.

kit08

My credit file is otherwise perfect, had a mortgage for over 10 years never been late on a payment. Have 1 active credit card with a balance of £0, a next account balance of £0, all bills paid by direct debit every month on time. This has always been the case, I buy large purchases on credit card but pay off in full each month. The loan remains with Barclays. They said it will not go to court due to extenuating circumstances surrounding my ex partner. What is the best thing for me to do ? It is marked as in default on my credit file. As previously said I haven’t made any contribution towards the loan for over 12 months due to my circumstances. This is the only debt I have ever had.