Stopping monthly defaults when a payment plan is agreed

nyoninboh

Hello everyone

I have a few old credit cards that I defaulted on several years ago. I just noticed on that on the payment history section, it lists them as still defaulting every month. I have had payment plans set up for several years, so I am surprised to see that these still classed as ‘defaulted’.

So I am curious - is it correct to still list these as defaulting, when payment plans have been agreed and are satisfied each month with the collection companies? Any help or advice would be gratefully received.

kaMelo

Being on a payment plan and keeping to it is not the same as paying the contractual minimum, therefore the account is in default and the mark is correct.

You are actually in the better position of it being in default rather than being marked as an arrangement to pay. All traces of it will dissappear after six years from when it first appeared whether paid or not. An AP marker would be there for as long as you are paying it off plus six more years.

sourcrates

As above, once you stop making contractual repayments, and your account defaults, it stays marked that way for 6 years regardless of any payment arrangement, or anything else you may agree too.

The monthly report you see of your credit file, is just a status update of that default, it will continue to be reported as such until the whole entry drops off your file after the 6 years are up.