Creditor still registering default markers / won’t change status of debt post DRO Moratorium

Bernard_Nurse

Good morning

I unfortunately ended up being subject to a DRO in 2023 with the moratorium period ending in December 2024.

According to both the StepChange and Debt Camel sites, once this has ended a creditor should mark any debts that fell under it as either Satisfied or Partially Settled.

I have been struggling for months with one particular creditor who have only now responded in a meaningful way after a complaint was raised with the Financial Ombudsman.

Their most recent response from them is as follows:

’I can now confirm that your loan with us has been fully discharged in line with your DRO.

Your account has been updated, and I have informed the team to amend your credit file.

However, under credit reporting rules, please note that a default will continue to show on your credit file for six years from the date your DRO was granted’

As we speak, the account is showing as Open and with a status of Default. Date of default is showing as nearly two months after the date the DRO was made.

In addition, as per the picture below they’re continuing to register default markers as well.

So, before I go back to them can anyone please advise on who is correct on what the status of the debt should be and if it should indeed be Satisfied or Partially Settled, is there any more other than continuing with the complaint with the Financial Ombudsman I can do to force the issue.

Thank you in advance for any advice.

sourcrates

They are correct in that the default status will show for 6 years regardless of anything else.

Defaults are not removed or replaced by insolvency, no matter what happens, or what you do, nothing removes the default until it expires after 6 years.

Your account should however be marked separately as satisfied or settled, but in the grand scheme of things your credit file won`t improve until the default has gone anyway.

Bernard_Nurse

Thank you… so where would they report it ‘separately’ as partially settled / satisfied?

ManyWays

Is there a balance showing?

sourcrates

Usually where the balance is shown on your report, it should show as zero or settled/satisfied, any of those are good enough.

Bernard_Nurse

Balance is showing £0 on one app. On another the account is still showing a balance and as still open.

You can also see on that on they’re still registering default markers as per the pic I posted up previously.

sourcrates

As stated earlier, the default will show for 6 years from the date it was registered, nothing will change that.

Can`t see much of a reason for a complaint here to be fair.

Bernard_Nurse

sourcrates said:

As stated earlier, the default will show for 6 years from the date it was registered, nothing will change that.

Can`t see much of a reason for a complaint here to be fair.

The following is from the Debt Camel site:

As per above, the debt is showing as open, status set to Default and with a positive balance as we speak on at least one CR app.

So yes, it would appear there is something to complain about and I’ll update the thread again once the Financial Ombudsman passes judgement in due course.

sourcrates

Its the default that causes issues credit wise, that will not be removed or altered in any way, it shows for 6 years regardless!!

The fact a balance is still showing is an annoyance granted, but she also states that your credit record won`t improve for another 5 years, after the default is removed anyway.