Default and payment plan

Options
nem39esis
nem39esis Posts: 73 Forumite
First Anniversary First Post Combo Breaker
in Credit file & ratings
Hi, I have an account with Lloyds which is now closed, it was switched to First Direct. There was still an overdraft on it. I tried to find out how to settle it but I couldn't as the account disappeared from my online banking and Lloyds said I needed to wait for it to go to the collections team before I could arrange payment. Fast forward and a payment plan has been set up to repay the overdraft.

My credit report however shows each month as being default.

I ma little confused as have a similar thing on Santander accounts and they don't show as defaulted. Is this correct or do some banks report it differently?

Comments

  • [Deleted User]
    [Deleted User] Posts: 0 Newbie
    Options
    If you were behind on payments then yes the account would have defaulted
  • sourcrates
    sourcrates Posts: 28,878 Ambassador
    First Anniversary Name Dropper First Post Photogenic
    Options
    Yes the account will have defaulted for non payment, the default stays on your file for 6 years, what you see on your credit report is the monthly status update.

    Paying a defaulted debt does not remove the default.
    I’m a Forum Ambassador and I support the Forum Team on the Debt free wannabe, Credit file and ratings, and Bankruptcy and living with it boards. If you need any help on these boards, do let me know. Please note that Ambassadors are not moderators. Any posts you spot in breach of the Forum Rules should be reported via the report button, or by emailing forumteam@moneysavingexpert.com. All views are my own and not the official line of MoneySavingExpert.For free non-judgemental debt advice, contact either Stepchange, National Debtline, or CitizensAdviceBureaux.Link to SOA Calculator- https://www.stoozing.com/soa.php The "provit letter" is here-https://forums.moneysavingexpert.com/discussion/2607247/letter-when-you-know-nothing-about-about-the-debt-aka-prove-it-letter
  • nem39esis
    nem39esis Posts: 73 Forumite
    First Anniversary First Post Combo Breaker
    Options
    Im making payments each month and have done for the last several monthsso im up to date yet its showing as default each month, that's what im confused by
  • [Deleted User]
    [Deleted User] Posts: 35,242 Forumite
    First Anniversary Photogenic Name Dropper First Post
    Options
    It's because you defaulted on the account.

    Once you clear it, the default markers will stop and the account will show as satisfied.
  • nem39esis
    nem39esis Posts: 73 Forumite
    First Anniversary First Post Combo Breaker
    Options
    Ok sorry still confused, account shows settled in july last year and since then default every month since with balance being reduced slightly each month. What I don't get is that im doing the exact same with Santander but that's not showing as dafault
  • [Deleted User]
    [Deleted User] Posts: 35,242 Forumite
    First Anniversary Photogenic Name Dropper First Post
    Options
    The settled marker sounds like an error if you are still making payments on it.

    You could ask them to change it to a default marker, but it will make little difference, apart from adding clarity.
  • nem39esis
    nem39esis Posts: 73 Forumite
    First Anniversary First Post Combo Breaker
    Options
    is it because its been passed to moorcraft and they now own the debt?
  • [Deleted User]
    [Deleted User] Posts: 0 Newbie
    Options
    The original account with Lloyds will be marked as settled if they've sold it to a DCA yes
  • Windbag66
    Windbag66 Posts: 20 Forumite
    Options
    Moorcroft dont buy debts.
    “Everyday is a bank account, and time is our currency. No one is rich, no one is poor, we've got 24 hours each.” “It is well enough that people of the nation do not understand our banking and monetary system, for if they did, I believe there would be a revolution before tomorrow morning.”
  • Windbag66
    Windbag66 Posts: 20 Forumite
    Options
    When an account goes to collections its quiet likely you will be defaulted, it appears thats what has happened here.

    The default date will be on your credit file, and it will stay there for 6 years.

    Lloyds defaulted you as overdrafts are repayable on demand, and you didn't do so.
    Do yourself a favour and read up on the default process.
    “Everyday is a bank account, and time is our currency. No one is rich, no one is poor, we've got 24 hours each.” “It is well enough that people of the nation do not understand our banking and monetary system, for if they did, I believe there would be a revolution before tomorrow morning.”
This discussion has been closed.
★ ★ ★ Meet your Ambassadors

Categories

  • All Categories
  • 343.2K Banking & Borrowing
  • 250.1K Reduce Debt & Boost Income
  • 449.7K Spending & Discounts
  • 235.3K Work, Benefits & Business
  • 608K Mortgages, Homes & Bills
  • 173.1K Life & Family
  • 247.9K Travel & Transport
  • 1.5M Hobbies & Leisure
  • 15.9K Discuss & Feedback
  • 15.1K Coronavirus Support Boards