Credit report showing "default/ended" as loan status, meaning of this? Unpaid for two years

Bossofmoney

As above. I have been looking through my credit report today via MSE Credit Club. I have loans I haven't made any payment to for over 2 years now, some over 3 years. Under "Credit Accounts" then defaulted accounts it shows last updated as 04/2020 and under "Current Status" it has "Default/Ended". As i say, no payment made on these in 2-3 years in some cases. As I'm in Scotland after 5 years they can just drop off...what does the default/ended bit mean? I wont be chased? They have my current address on there(been here nearly 2 years now) and I receive nothing through the post here.

Thanks for any advice.

sleepyjones

Don't know what it means but they can still chase you for it.
Just because it's dropped off your file doesn't mean you don't still owe the money, it limits the things that creditors / debt collectors can do but they can still write or call asking you to repay it (Not sure if this ever becomes harassment ie if they're still chasing you 20 years later) 

Bossofmoney

As far as iv been advised elsewhere on this forum it becomes statute barred after 5 years in Scotland so will drop off my file then. Unless the debt free boards are giving out wrong information.

I expected to see "defaulted" but not "defaulted/ended" as it shows so just wondered if it does mean they've given up chasing it.

There's one account marked as "gone away" which is they know I no longer live there however don't know where I live now. A google search of my name brings up my address as I own a Ltd company so its all there to see which is strange they haven't at least tried that.


Looking at building my rating, obviously best way is to clear everything off and then it takes 6 years from then for it all to drop off but any cheaper/quicker ways to get it cleared/credit rating improved I'm more than happy to give a go at doing. Don't expect a great response with that attitude but at least I'm being honest.

[Deleted User]

The debt boards are giving the right information, you may just not have copied it down correctly. Debts become statute barred after 5 years of no acknowledgement, but they stay on your files for six from default. 

The quickest way to improve how lenders see you - which is obviously different to improving your rating - is to settle the defaults.

Bossofmoney

Yes that's what I thought was correct just worded that wrong. So the amounts drop off and are no longer due once statute barred but will still be on file for the 6 years from date given. The defaults all seem to be 2-3 years ago too. Do they only default it once or every month it goes unpaid? The credit report I'm looking at today isn't that clear on this.

Just the wording of Ended being in there under the current status has me wondering what it means and why not just show defaulted ?

Settling the defaults might take longer than leaving them the 6 years to drop off. 

[Deleted User]

It should show a monthly update of the default.

The MSE Credit Club appears to use its own terminology, so I would check at source with Experian.  This has come up before.

https://forums.moneysavingexpert.com/discussion/5642358/credit-report-mse

My guess it that it just means it's defaulted and therefore the original agreement has ended, but the debt remains enforceable. not that its been written off.

Bossofmoney

Ah right ok so the defaulted accounts default every month they remain unpaid with 6 years from the date of it being satisfied when it finally drops off? See so much misleading information. Spending this rainy day doing as much research as possible.

[Deleted User]

Bossofmoney said:

Spending this rainy day doing as much research as possible.

Well, the rainy day is your fault for living in Scotland.   

Bossofmoney

Having looked into it, some of these will become statute barred Christmas next year, then a few weeks later theres another one. 3 of them all the same company, £15,000 in total. So basically hope there's no court action between now and January 2022 to get a third of my debts wiped. Thanks for the advice.

sourcrates

The law is slightly different in Scotland in that once 5 years have passed, the debt is extinguished in law, it no longer exists, and you cannot be chased for it.
In England and Wales the law is not as clear, the limitation period is 6 years, and once that passes, the debt still exists, but a creditor is unable to take legal action to recover the debt.
Are you having trouble making ends meet just now ?

D3xt3r5L4b

My reply about paying the money you morally owe was removed it seems. 

Does this board have no morals? Or is it just about playing the game and cheating the system?