Loan in Late Status and repaying

yoshiyella

Hi All,

I took out a loan in the summer of 2017, made a few payments then stopped.

In October 2017 I wrote to the loans company explaining my situation and asking what can be done so as to do as little damage to my credit file. No response.
Eventually by Christmas they discussed it with me and kept emailing me for income and expenditure which I kept doing but never got any form of response.

Fast forward to today and I have made no further communications with them however I am in a position to start paying them back at the agreed monthly rate or more. 

My query: Since I stopped making payments they have been marking my credit file as "Late" with no defaults. What would your advice be going forward with them paying it back? I would like them to remove the late status even if that means a back dated default.

Any advice or if you have alternative suggestions please let me know

Thanks

[Deleted User]

Ask them to backdate a default. 

Separately, repay it as fast as you can to get it settled.

MalMonroe

I agree with zx81. Best try to sort it and get it out of the way. Having been in very difficult financial circumstances in the past, I'd just want to get rid of it as soon as humanly possible. 

Speaking from my own experience, you will feel better when it's paid off and gone. 

[Deleted User]

Default should be done after 3-6 contractual missed payments (typically 3-6 months) but late or default, damage is done already to your credit history and account will still be marked as default for 6 years after the date

yoshiyella

Thanks for the replies:

One final query as I am going to write a letter to them with my offer. Should I be putting that my offer is subject to the default being placed within 3-6 months of my last payment? Or any other suggestion?

Thanks again

[Deleted User]

You should be asking them to back date the default per ICO guidelines (quote them in the letter)

What is your offer going to be? Make the payments you are supposed to make? Not much incentive for them there so don't see what leverage you will have

yoshiyella

Deleted_User said:

You should be asking them to back date the default per ICO guidelines (quote them in the letter)

What is your offer going to be? Make the payments you are supposed to make? Not much incentive for them there so don't see what leverage you will have

Never said I had any leverage but I am luckily in a position to pay it all off within a year which means I will have paid it off before the loan term expires.

I was only asking for advice.

[Deleted User]

yoshiyella said:

Deleted_User said:

You should be asking them to back date the default per ICO guidelines (quote them in the letter)

What is your offer going to be? Make the payments you are supposed to make? Not much incentive for them there so don't see what leverage you will have

Never said I had any leverage but I am luckily in a position to pay it all off within a year which means I will have paid it off before the loan term expires.

I was only asking for advice.

Your post that I replied to stated

"Should I be putting that my offer is subject to the default being placed within 3-6 months of my last payment?"

That is what I mean about leverage, offering to pay the debt if they do something for you

It's immaterial though, they should be defaulting you after 3 missed contractual payments per ICO guidelines, not marking it as late