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Default on my Credit File. Can I remove it?

fr33zy
Posts: 50 Forumite

Back in 2018, I had acquired a fairly substantial personal debt across several banks and credit card companies. I settled these debts at 80% of the total with each company and my status was shown as settled. One company, Newday, accepted the 80% but did not mark my account as settled, they still defaulted me, which is showing on my credit file. When I asked them, the said they don't mark accounts as partially settled. If i was aware of this at the time, I would have either settled in full with them or paid nothing.
Is there any legitimate way I can get Equifax to remove this default from my account? or change the status to settled?
I have not needed credit for the last few years, but I will be purchasing a car on finance and this will really make it difficult. Apart from this one blemish, my credit file is perfect.
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fr33zy said:Is there any legitimate way I can get Equifax to remove this default from my account? or change the status to settled?Equifax cannot change the status - they only report on the information given to them by lenders. It would be for Newday to send an update through to Equifax.fr33zy said:I will be purchasing a car on finance and this will really make it difficult. Apart from this one blemish, my credit file is perfect.
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This "one blemish", a default - has reduced my credit score from score from a perfect 999 to around 500 - which is below the average for my area. Fortunetely I haven't needed any form of finance in recent years but I have been unable to get any credit cards or increase my overdraft in that time period - whereas before I could open accounts whereever I liked too so I can only imagine what the repayments will be like on a £70,000 finance deal.I definetely need finance to purchase this car, its a requirement for my work as an executive chauffeur. I could continue to rent a vehicle which makes little financial sense long term or I could go down the lease route which again is not a preferred option. A friend of mine with an average credit rating, recently purchase a car for £30,000 and with finance will be repaying a total of £46,000 overfive years which is not something that I would like to do.0
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Your score is utterly meaningless, ignore it. And any lending decisions are based on your individual circumstances and credit history, it's utterly foolish on the part of the CRA to try and say there is an average score for an area - even if the score did matter, which it doesn't.
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As above - ignore the score. It is a marketing gimmick and nothing more.
As for the default, does it appear on your files from all 3 CRAs - Experian, Equifax and TransUnion? In any case, you need to get Newday to remove it - the CRAs only report the information they are provided with by lenders. It does sounds like the default is valid to be honest, since you admit you didn't keep to your repayment terms. Did you ever get it in writing that the 80% offer was a full and final settlement offer for clearing the debt and removing the default from your records? If so, I'd log a formal complaint.
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not sure about removing the default, but there are very good vehicle brokers out there who may be able to get you a good deal still. Try one (carfinance 24/7) - they always get me a better rate on car finance than I find myself0
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fr33zy said:This "one blemish", a default - has reduced my credit score from score from a perfect 999 to around 500 - which is below the average for my area. Fortunetely I haven't needed any form of finance in recent years but I have been unable to get any credit cards or increase my overdraft in that time period - whereas before I could open accounts whereever I liked too so I can only imagine what the repayments will be like on a £70,000 finance deal.I definetely need finance to purchase this car, its a requirement for my work as an executive chauffeur. I could continue to rent a vehicle which makes little financial sense long term or I could go down the lease route which again is not a preferred option. A friend of mine with an average credit rating, recently purchase a car for £30,000 and with finance will be repaying a total of £46,000 overfive years which is not something that I would like to do.
The default is fair and an accurate representation of how you handled your finances, so as the Americans say, suck it up buttercup.0 -
Don’t really see your logic here…
you said in your first post that if you knew that newday didn’t use a status of partially settled that you would either have paid them nothing (thereby incurring a default), or settled in full…
sounds like your own failure to check has led you to shoot yourself in the foot by not fully settling your debt with them.
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Whether a default is marked as settled/partially settled or still outstanding, the difference is minimal.
Time also helps, defaults over a certain age, may be ignored by certain lenders.
Debt purchasing companies tend to be more amenable than original creditors are, more flexible too, the correct reporting for a partially settled debt is rather obviously, "partially settled".
You could raise a complain as New day are not following FCA guidelines here, but to be honest, even it it were upheld, nothing much would change.
The score is mostly irrelevant, its only seen by you, and never used by anyone, for anything.
Its credit history that counts.
I’m a Forum Ambassador and I support the Forum Team on the Debt free wannabe, Credit file and ratings, and Bankruptcy and living with it boards. If you need any help on these boards, do let me know. Please note that Ambassadors are not moderators. Any posts you spot in breach of the Forum Rules should be reported via the report button, or by emailing forumteam@moneysavingexpert.com. All views are my own and not the official line of MoneySavingExpert.For free non-judgemental debt advice, contact either Stepchange, National Debtline, or CitizensAdviceBureaux.Link to SOA Calculator- https://www.stoozing.com/soa.php The "provit letter" is here-https://forums.moneysavingexpert.com/discussion/2607247/letter-when-you-know-nothing-about-about-the-debt-aka-prove-it-letter1 -
sourcrates said:Whether a default is marked as settled/partially settled or still outstanding, the difference is minimal.
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If there's no mention of the other accounts, they have either reached the 6 year mark or report to another CRA.0
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