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    • rickbooth86
    • By rickbooth86 9th Feb 18, 9:59 AM
    • 10Posts
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    rickbooth86
    Default registered after 1 late payment
    • #1
    • 9th Feb 18, 9:59 AM
    Default registered after 1 late payment 9th Feb 18 at 9:59 AM
    Hey guys,

    I'm just looking for some advice. I had an account with the car finance company where I paid £85 a month. Last April I missed the payment because I had a lot going on and it just slipped my mind. In May when I realised I made 2 payments in order to catch up and then continued to pay until I decided to just clear the remaining balance in October.

    Now on my credit file the account shows as defaulted/satisfied and they won't remove it or even change it so just show the one late payment. I can't have this on my file for another 6 years as I want to be able to secure a mortgage in that time. So I'm just wondering what my options are? If any at all.

    I will try and add a screenshot of the account on my credit file.

    Thanks,
    Rick
Page 1
    • Gary_Dexter
    • By Gary_Dexter 9th Feb 18, 10:41 AM
    • 1,152 Posts
    • 644 Thanks
    Gary_Dexter
    • #2
    • 9th Feb 18, 10:41 AM
    • #2
    • 9th Feb 18, 10:41 AM
    You can try and dispute it - but it's down to them if they want to default you - the payment should have been made on time
    • Candyapple
    • By Candyapple 9th Feb 18, 10:49 AM
    • 2,866 Posts
    • 2,192 Thanks
    Candyapple
    • #3
    • 9th Feb 18, 10:49 AM
    • #3
    • 9th Feb 18, 10:49 AM
    The free versions to check your credit files are below:
    Experian: www.moneysavingexpert.com/creditclub
    Equifax: www.clearscore.com
    Call Credit: www.noddle.co.uk


    Take a screenshot of how it shows on all 3 of your files please.
    I'm a Board Guide on the Credit Cards, Loans, Credit Files & Ratings boards. I'm a volunteer to help the boards run smoothly, and I can move and merge threads there. Any views are mine and not the official line of moneysavingexpert.com
    • Brock_and_Roll
    • By Brock_and_Roll 9th Feb 18, 10:51 AM
    • 824 Posts
    • 802 Thanks
    Brock_and_Roll
    • #4
    • 9th Feb 18, 10:51 AM
    • #4
    • 9th Feb 18, 10:51 AM
    The account was in default and that default has been satisfied - that is a matter of fact and if you could simply get them removed it would defeat the objective of having credit records on the first place.


    On the bright side however, as an isolated incident this will have diddly squat impact on your ability to get a mortgage from any lender that have more than an ounce of common sense.


    To prevent any repetition, why not set up a DD?
    • tenchy
    • By tenchy 9th Feb 18, 10:54 AM
    • 360 Posts
    • 113 Thanks
    tenchy
    • #5
    • 9th Feb 18, 10:54 AM
    • #5
    • 9th Feb 18, 10:54 AM
    What's the definition of a default? Here, from the ICO:


    "A ’default‘ on your credit file simply means that the lender considers that the relationship between you has broken down. "


    Hardly the case here - one late payment!!


    Get on to the lender and educate them in this matter.


    It seems that credit referencing needs some sort of hands-on regulation if this can happen.
    • DCFC79
    • By DCFC79 9th Feb 18, 11:00 AM
    • 31,662 Posts
    • 19,970 Thanks
    DCFC79
    • #6
    • 9th Feb 18, 11:00 AM
    • #6
    • 9th Feb 18, 11:00 AM
    You say "had a lot going on and it just slipped my mind", but why was a direct debit not setup, it would prevent payments being missed.
    Can people stop loaning money/being a guarator to family/friends, it rarely ends well and you lose out as your money is gone or you get shafted with being a guarantor.
    • Candyapple
    • By Candyapple 9th Feb 18, 11:01 AM
    • 2,866 Posts
    • 2,192 Thanks
    Candyapple
    • #7
    • 9th Feb 18, 11:01 AM
    • #7
    • 9th Feb 18, 11:01 AM
    The account was in default and that default has been satisfied - that is a matter of fact and if you could simply get them removed it would defeat the objective of having credit records on the first place.
    Originally posted by Brock_and_Roll
    One month's late payment does not equate to the severity of a default notice. If that was the case, millions of people would be hit with defaults every month for making late payments on credit cards, loans etc.

    The Information Commissioner’s Office (ICO) says :

    “As a general guide, [a default may be recorded] when you are 3 months in arrears, and normally by the time you are 6 months in arrears.

    There are exceptions to this which may result in a default being recorded at a later stage, such as secured or long term loans e.g. mortgages, or if the product operates in a more flexible way e.g. current accounts, student loans, home credit.

    So the OP is well within their rights to challenge this if indeed they have been hit with a default.


    On the bright side however, as an isolated incident this will have diddly squat impact on your ability to get a mortgage from any lender that have more than an ounce of common sense.
    Originally posted by Brock_and_Roll

    Wrong on so many levels. Any history of defaults / late payments / CCJs on your history will mean you are subject to subprime lenders which will mean a higher interest rate and especially if your default is in the last 6 months, they may require a substantial amount for a deposit e.g. 30% on top of this.
    I'm a Board Guide on the Credit Cards, Loans, Credit Files & Ratings boards. I'm a volunteer to help the boards run smoothly, and I can move and merge threads there. Any views are mine and not the official line of moneysavingexpert.com
    • sourcrates
    • By sourcrates 9th Feb 18, 11:47 AM
    • 14,034 Posts
    • 13,288 Thanks
    sourcrates
    • #8
    • 9th Feb 18, 11:47 AM
    • #8
    • 9th Feb 18, 11:47 AM
    Agree with Candyapple on this.

    If it was just one late payment, then that does not warrant a default, and under ICO guidelines, that being the case, the default appears to of been incorrectly applied.

    You should write and complain to the lender, and if not satisfied, escalate to the ICO.
    I'm a Board Guide on the Debt-Free Wannabe, Credit File And Ratings, and
    Bankruptcy And Living With It, boards. "I volunteer to help get your forum questions answered and keep the forum running smoothly".
    Board guides are not moderators and don't read every post. If you spot an abusive or illegal post then please report it to forumteam@moneysavingexpert.com. Any views are mine and not the official line of MoneySavingExpert.com.

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    • badmemory
    • By badmemory 9th Feb 18, 4:45 PM
    • 1,616 Posts
    • 2,125 Thanks
    badmemory
    • #9
    • 9th Feb 18, 4:45 PM
    • #9
    • 9th Feb 18, 4:45 PM
    But you should use this as a learning experience. You are intending to take out a mortgage, which normally entails several regular bills. If "life gets in the way" often, then you will need to set up direct debits & set aside a short period every month to ensure that those direct debits are going to be paid. Otherwise you will land up with defaults on a regular basis, then come remortgage time the whotsit is going to hit the fan.
    • forgotmyname
    • By forgotmyname 9th Feb 18, 4:51 PM
    • 26,951 Posts
    • 10,851 Thanks
    forgotmyname
    What company are you paying that did not setup a DD for the loan?

    One of the give anyone credit type companies with high interest rates?
    Punctuation, Spelling and Grammar will be used sparingly. Due to rising costs of inflation.

    My contribution to MSE. Other contributions will only be used if they cost me nothing.

    Due to me being a tight git.
    • rickbooth86
    • By rickbooth86 10th Feb 18, 10:52 PM
    • 10 Posts
    • 0 Thanks
    rickbooth86
    Hi sorry for the late reply.

    The company is The Car Finance Company. I had a DD set up with them but due to having an accident in the car and needing to buy a new car the DD was cancelled and a new payment plan with them was set up as the amount I was paying changed. I should have set up another DD but hindsight is a wonderful thing.

    The annoying thing is the account doesn't even show on my Clearscore or MSE Credit Club reports. I've attached a screenshot of the Noddle report.

    Edit: It won't let me post as I am a new user so I have used the trusty copy and paste!

    Account start date 06/01/2015
    Account end date 02/11/2017
    Opening balance £ 8,000
    Regular payment £ £ 166
    Repayment frequency Monthly
    Date of default 05/06/2017
    Default balance £ 576
    Status history
    Jan Feb Mar Apr May Jun Jul Aug Sept Oct Nov Dec
    2017 1 . D . D . D . D . D . D
    OK . OK OK . OK . AA . DF DF . DF . .. .. SF

    To me (and to other lenders I'm guessing) it looks as though I missed Aprils payment and then never caught up which just isn't true at all.

    Thanks for the feedback,
    Rick
    Last edited by rickbooth86; 10-02-2018 at 11:00 PM. Reason: Uploading Image
    • Thrugelmir
    • By Thrugelmir 10th Feb 18, 11:46 PM
    • 58,490 Posts
    • 51,851 Thanks
    Thrugelmir
    I should have set up another DD but hindsight is a wonderful thing.
    Originally posted by rickbooth86
    Were payments being made on the contractual due date every month. Serial late paying amounts to a default.
    Financial disasters happen when the last person who can remember what went wrong last time has left the building.
    • bengal-stripe
    • By bengal-stripe 11th Feb 18, 8:35 AM
    • 3,192 Posts
    • 2,085 Thanks
    bengal-stripe
    I had an account with the car finance company where I paid £85 a month. Last April I missed the payment because I had a lot going on and it just slipped my mind.
    Originally posted by rickbooth86
    I had a DD set up with them but due to having an accident in the car and needing to buy a new car the DD was cancelled and a new payment plan with them was set up as the amount I was paying changed.

    Account start date 06/01/2015
    Account end date 02/11/2017
    Opening balance £ 8,000
    Regular payment £ £ 166
    Repayment frequency Monthly
    Originally posted by rickbooth86
    You had an agreement to pay £166 per month. At some point you asked the company to lower the payments to £85 (about half). At this point you started defaulting, as you didn't keep up with the original schedule.

    When your (reduced) payment didn't arrive for a whole month, the company made the default official.
    • rickbooth86
    • By rickbooth86 11th Feb 18, 9:36 AM
    • 10 Posts
    • 0 Thanks
    rickbooth86
    Yes they were made on time. I did make one change to the payment date though however due to a change in the day I was paid. They were aware of this though.
    • rickbooth86
    • By rickbooth86 11th Feb 18, 10:14 AM
    • 10 Posts
    • 0 Thanks
    rickbooth86
    It was them who suggested only making half the payment when I called to see how much I owed them after the insurance payout.
    • zx81
    • By zx81 11th Feb 18, 10:18 AM
    • 16,832 Posts
    • 17,838 Thanks
    zx81

    The annoying thing is the account doesn't even show on my Clearscore or MSE Credit Club reports.
    Originally posted by rickbooth86
    That's a good thing, not an annoying thing. It limits the damage.
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