Default on Credit File

Davey_2

Hi all

Not sure if this is in the right thread but im sure someone will move it if it is.

Heres the situation. My girlfriend and I are applying for a mortgage and are hoping to set up home together soon. However my girlfriend has a £540 default on her credit file which has caused us a bit of hassle.
She took out a catalogue account and her former partner bought a TV. However when they split a couple of years back he took the TV and left her with the debt as it is in her name. After some threatening letters were recieved she arranged a payment plan and has since paid off all the debt, however there is still mention of the default on her credit file. Is there anyway this can be removed from file now that the debt is settled and if so how can we go about doing it.

Many Thanks

98jdougl

Don't think there is anything you can do aside from wait for it to drop off- unless you try to appeal that you did not receive notice of default but they could have all the paperwork etc

There is another thread to it a few pages down on the debt free wanabee board

carpetbelly

The default will stay on there for 6yrs. There may be ways to appeal that but that's not in my knowledge. What I'd say is get her to make sure the company update the file to show the default is satisfied and prefereably something in writing showing that as well.

Debt_Free_Chick

Davey wrote: »

After some threatening letters were recieved she arranged a payment plan and has since paid off all the debt, however there is still mention of the default on her credit file. Is there anyway this can be removed from file now that the debt is settled and if so how can we go about doing it.

the default is "true" - the lender had to default the account in order to get her to agree to a repayment plan. Harsh, but this is how it is.

Better that you explain this situation to the mortgage lender and point out that the default arose due to a dispute with her ex partner and that the debt is now settled.

Badger_Lady

Thoroughly sympathise - my default was on a joint current account with my ex where he spent the £250 overdraft on beer, then disappeared.

I didn't even known we'd defaulted until it was too late, but paid it off ASAP.

Anyway, 2 years later, I wanted to move house (and mortgage) and it really got in the way - but I got there in the end. Can't wait for it to finally drop off in 4 years' time...

Good luck!

exel1966

Firstly, some clarification is needed. When you say default, do you mean a CCJ has been issued as most of the above replies apply to CCJ's.

You cannot get a CCJ removed unless you fully paid the debt within one month of notice being served. If that's the case it shouldn't have been registered as a default.
However, if you didn't pay in full within one month you can apply to the court to have the CCJ officially marked as 'satisfied'. Other creditors will then be able to see that you have settled in full, which may marginally work in your favour. The ccj doesn't necessarily stop you getting credit loans, but it makes you a greater risk, therefore interest rates may be higher for you.

There are other circumstances (you'd have to elaborate) which permit you to have the CCJ 'set aside' and the case reopened, however their are very strict guidlines relating to this.

Apart from that there is very little you can do until it's removed after 6 years.

Badger_Lady

exel1966 wrote: »

Firstly, some clarification is needed. When you say default, do you mean a CCJ has been issued as most of the above replies apply to CCJ's.

I can't see any replies that refer to CCJ's

Debt_Free_Chick

As I understand it, a default is the "first step" in a process that might result in a CCJ.

Essentially, it's a formal notice from the lender telling the debtor that the terms and conditions of the credit agreement have been breached. It usually follows when you fail to reach an agreement about repaying the debt. It also often happens even if you do agree a repayment plan. I think, legally, they have to issue the default notice in order to put the new payment plan into place - as it will differ from the terms in the original agreement.

So ... a default is not a CCJ. But some defaults can result in a CCJ, further down the line.

Like a CCJ, a default remains on a credit file for 6 years. It can only be removed by the lender and, generally, they would not agree to a removal without very good reason. It might be worth "appealing to their good nature" (if you think they have any!!) but I wouldn't hold my breath.

HTH

jackhack

You can ask for an explanation note to be appended to your file.