Re register of default

stupidmistakess

Hi all

I was wondering if anyone can help with my query please

I had a loan I took out from Future Finance of around £12000 when I was a student for which I defaulted in Jan 2019

My understanding was that in Jan 2025 the default will be removed from my credit file

Around 2 years ago, I received a letter from Link Financial essentially saying they have bought my loan and I needed to make any payments to them

I started paying the loan off for an agreed amount of £100 per month 

I was recently looking at my credit history (using checkmyfile) as I want to apply for a mortgage but I noticed that there were 2 separate loan accounts for the same account, one from future finance and one from link financial

They both have the same default dates of Jan 2019 and both say they will be reported till Jan 2025

My questions are

1 - Why are there 2 separate accounts for the same loan?
2 - When the defaults are removed from my credit file, the mortgage companies will still see a payment of £100 per month from my bank statements. Will this massively hurt my chances of getting a mortgage as it is sort of a payment plan?
3 - If I stop making the payment of £100 per month, can Link Financial re-register the default or impact my credit history in any negative way?
4 - After the payment plan is finished/if I make a final settlement, can Link Financial leave a mark on my credit history that will impact it beyond Jan 2025; the original dates of the defaults being removed

RAS

When a creditor sells a debt, they should mark the amount outstanding as £0 whilst the new creditor notes the value of the original dent and amount currently owed. Both will fall off your credit record in January 2025.

stupidmistakess

RAS said:

When a creditor sells a debt, they should mark the amount outstanding as £0 whilst the new creditor notes the value of the original dent and amount currently owed. Both will fall off your credit record in January 2025.

Hey thanks for the response, if i stop paying link financial can they re register the debt at all?

ManyWays

If you stop paying Link they cant re-add it to your record but they can take you to court for a CCJ. which would wreck your credit record for 6 more years. 

Yes seeing the payments to Link will make it difficult to get a mortgage at an ok rate of interest. Mortgage lenders don't care about your credit score but they care about unpaid defaulted debts off your credit record just as much as those still on it.

If you settle this debt (partially or in full) it wont reappear on your credit record.  

stupidmistakess

ManyWays said:

If you stop paying Link they cant re-add it to your record but they can take you to court for a CCJ. which would wreck your credit record for 6 more years. 

Yes seeing the payments to Link will make it difficult to get a mortgage at an ok rate of interest. Mortgage lenders don't care about your credit score but they care about unpaid defaulted debts off your credit record just as much as those still on it.

If you settle this debt (partially or in full) it wont reappear on your credit record.  

okay that's interesting, if i settle the debt fully it will disappear from my record entirely and won't appear on my bank statements either

Do you have any advice on getting a full & final settlement figure from Link Financial 

RAS

I'm not sure that's correct. After all that one way to improve your credit record. It'll show as fully settled, or partially settled if you do a settlement.

sourcrates

Your account will show in default for 6 years regardless of what you do.

Manyways meant if you settle after the entry drops off your file it will not come back again.