Does outstanding balance still get reported to the CRAs after default has dropped off?

krichards

Would appreciate any guidance available on this scenario please?

I have some debts which were defaulted - I am on a DMP - and there will still be outstanding balances after the 6 years are up.

I understand that the defaults will drop off the CRA files at that point, but would the outstanding balances/debts still be reported or would they simply disappear from the credit files?

I have an Investigator at the FOS telling me that the debt would still be reported until it was paid off, but that doesn't seem to make sense to me.

Thanks

sammyjammy

The whole record drops off when the default reaches the six year mark, no payments or balance is recorded.

krichards

Thank you very much - I appreciate it. 

By drops off, and to make sure I haven't got it confused, this means the whole debt entry would no longer be on the CRA files - it wouldn't for example, show as a closed account instead?

sourcrates

Once an account defaults, the 6 year clock starts a ticking.

When that clocks time runs out, the entire entry, everything, paid/unpaid/CCJ/no CCJ/ ignored/whatever the circumstances, it will be removed completely from your credit files, there will be no trace of it anywhere, open files/closed files, gone, vanished, disappeared, vamoosed for ever, and it will never come back or be visible to anyone, anywhere, ever again. 

However, any unpaid balance is still payable and due, its just no longer reported to your credit file.

krichards

Thanks so much - you couldn't have made that any clearer  - much appreciated.

flipflopflo

I’d like to know why an employee of the FOS didn’t know this? Maybe he needs some retraining 🤷‍♀️

RAS

flipflopflo said:

I’d like to know why an employee of the FOS didn’t know this? Maybe he needs some retraining 🤷‍♀️

That's putting it politely.