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  • FIRST POST
    • meemaw
    • By meemaw 11th Feb 18, 1:25 AM
    • 8Posts
    • 1Thanks
    meemaw
    Defaulted debt still on credit report after 8 yrs!
    • #1
    • 11th Feb 18, 1:25 AM
    Defaulted debt still on credit report after 8 yrs! 11th Feb 18 at 1:25 AM
    I went through a sticky period in 2010 and defaulted on a Natwest personal loan. I've been making regular repayments ever since sorting a payment plan via Citizens Advice Bureau. The debt was subsequently passed on in 2011 to a debt collection agency, which the repayments now go to.

    I recently decided to dip my toe in the credit pool again by getting a mobile phone contract. Something made me check my credit report beforehand and thank god I did, but I wish I'd checked it years ago! The debt I defaulted on in 2010 is still showing on my credit report

    Is this even legal for it still to be showing?!
    It's down on Noddle as 'BB - Sustained Arrears - Payment was up to 6 months late' - this is entered each month going back to March 2012.
    On Experian it's showing as '6 - Delinquent account' over the last 12 instalments, then below that there's some more info where it gives the dates
    04/11 03/11 02/11 01/11 12/10
    Payment Amount 110 110 110 110 110
    £110 is the amount I originally paid each month before defaulting.

    I always thought debts couldn't be shown on credit reports after 6 years? Please help - I've no idea what to do next! Luckily I've been through my old paperwork and still have the original default letters showing the date 18 October 2010.
Page 1
    • meemaw
    • By meemaw 11th Feb 18, 1:40 AM
    • 8 Posts
    • 1 Thanks
    meemaw
    • #2
    • 11th Feb 18, 1:40 AM
    • #2
    • 11th Feb 18, 1:40 AM
    Should also add - my credit rating is listed as 'Very Poor' because of this one debt which shouldn't even be on there!
    Last edited by meemaw; 11-02-2018 at 1:41 AM. Reason: spelling
    • Moneyineptitude
    • By Moneyineptitude 11th Feb 18, 2:57 AM
    • 20,466 Posts
    • 11,344 Thanks
    Moneyineptitude
    • #3
    • 11th Feb 18, 2:57 AM
    • #3
    • 11th Feb 18, 2:57 AM
    I always thought debts couldn't be shown on credit reports after 6 years?
    Originally posted by meemaw
    You are clearly still paying off this defaulted debt.

    Why do you think it wouldn't therefore be on your credit file?

    Six years after you pay it off is the date it will no longer appear.
    • meemaw
    • By meemaw 11th Feb 18, 8:17 AM
    • 8 Posts
    • 1 Thanks
    meemaw
    • #4
    • 11th Feb 18, 8:17 AM
    • #4
    • 11th Feb 18, 8:17 AM
    No that's not correct. From Experian:
    A default date will be recorded on the account and it will be kept on your credit report for six years from the default date. After this time it is removed from your report automatically even if the full amount isnít paid.

    Some lenders will still send us monthly updates on a defaulted account. This doesnít change the default date or when it comes off the report.
    The same is also stated on this site/forum many many times.

    Please don't give advice so matter-of-factly when you're quite clearly wrong. Someone else might actually have believed you.
    • meemaw
    • By meemaw 11th Feb 18, 9:19 AM
    • 8 Posts
    • 1 Thanks
    meemaw
    • #5
    • 11th Feb 18, 9:19 AM
    • #5
    • 11th Feb 18, 9:19 AM
    Please can anyone else help? (Preferably someone who knows a bit more than Moneyineptitude?!)
    • antrobus
    • By antrobus 11th Feb 18, 9:32 AM
    • 15,674 Posts
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    antrobus
    • #6
    • 11th Feb 18, 9:32 AM
    • #6
    • 11th Feb 18, 9:32 AM
    Please can anyone else help? (Preferably someone who knows a bit more than Moneyineptitude?!)
    Originally posted by meemaw
    No, Moneyineptitude is correct.

    Understand this, the default has dropped off your account. The CRAs are simply reporting the fact that that the debt is still live.

    (Text removed by MSE Forum Team)
    Last edited by MSE ForumTeam3; 12-02-2018 at 9:27 AM.
    • meemaw
    • By meemaw 11th Feb 18, 9:40 AM
    • 8 Posts
    • 1 Thanks
    meemaw
    • #7
    • 11th Feb 18, 9:40 AM
    • #7
    • 11th Feb 18, 9:40 AM
    The fact that it is showing on my credit report is proof of the fact it HAS NOT 'dropped off'.
    Last edited by MSE ForumTeam3; 12-02-2018 at 9:28 AM. Reason: Quoting edited post
    • fermi
    • By fermi 11th Feb 18, 9:56 AM
    • 39,490 Posts
    • 47,510 Thanks
    fermi
    • #8
    • 11th Feb 18, 9:56 AM
    • #8
    • 11th Feb 18, 9:56 AM
    If this had been reported as a default, then the default and every trace of the account (even if still not paid off) would have been removed from the reports 6 years from the original reported default date.

    There would quite literally be no trace of the account existing.

    The CRA would do that removal, whether the creditor liked it or not. Even if the creditor continued to report an outstanding balance, this would not show.

    So here, the creditor has inarticulately recorded the account as just arrears for a long period of time, not an actual default, which is why it is still there.
    I'm a Board Guide on the Debt-Free Wannabe, Bankruptcy, Credit Cards and Loans boards. I volunteer to help get your forum questions answered and keep the forum running smoothly. Any views are mine and not the official line of moneysavingexpert.com. Board guides are not moderators. If you spot an inappropriate or illegal post then please report it to forumteam@moneysavingexpert.com

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    • meemaw
    • By meemaw 11th Feb 18, 10:00 AM
    • 8 Posts
    • 1 Thanks
    meemaw
    • #9
    • 11th Feb 18, 10:00 AM
    • #9
    • 11th Feb 18, 10:00 AM
    Thanks for your reply fermi.

    I have the letter from Natwest notifying me of their intention to file default - does this prove that the account was, in fact, in default and they've been misreporting it?

    The debt was even sold on. I just don't understand any of this, money matters are not my forte (as you can probably tell!)
    • antrobus
    • By antrobus 11th Feb 18, 10:00 AM
    • 15,674 Posts
    • 22,332 Thanks
    antrobus
    Your credit report looks correct to me. You do have "Sustained Arrears" or a "Delinquent account" if you prefer.

    If you are so convinced you are right, contact the relevant CRA and ask them to remove the entries.
    Last edited by MSE ForumTeam3; 12-02-2018 at 9:29 AM. Reason: Quoting deleted post
    • fermi
    • By fermi 11th Feb 18, 10:01 AM
    • 39,490 Posts
    • 47,510 Thanks
    fermi
    Please read the info in:

    Principles for the Reporting of Arrears, Arrangements and Defaults at Credit Reference Agencies

    If you then think that the creditor has not reported it as a default, when they should have done many moons ago, make a formal complaint to the company reporting it on your file.

    State the grounds that it should have been a default, not arrears.

    State that by not recording it as a default, they are (a) recording inaccurate information in contravention of the Date Protection Act and Principles, and (b) that by doing so they are causing adverse data to remain on your credit file longer that they should.

    State that is a default is not added, backdated to 6+ years ago, you will be taking the case to the ICO and making a complaint via the FOS.
    I'm a Board Guide on the Debt-Free Wannabe, Bankruptcy, Credit Cards and Loans boards. I volunteer to help get your forum questions answered and keep the forum running smoothly. Any views are mine and not the official line of moneysavingexpert.com. Board guides are not moderators. If you spot an inappropriate or illegal post then please report it to forumteam@moneysavingexpert.com

    Free/impartial debt advice: National Debtline | StepChange Debt Charity | Find your local CAB

    IVA & fee charging DMP companies: Profits from misery, motivated ONLY by greed
    • fermi
    • By fermi 11th Feb 18, 10:02 AM
    • 39,490 Posts
    • 47,510 Thanks
    fermi
    Thanks for your reply fermi.

    I have the letter from Natwest notifying me of their intention to file default - does this prove that the account was, in fact, in default and they've been misreporting it?

    The debt was even sold on. I just don't understand any of this, money matters are not my forte (as you can probably tell!)
    Originally posted by meemaw
    Yes, quite good evidence.

    But the link I gave to "Principles for the Reporting of Arrears, Arrangements and Defaults at Credit Reference Agencies" is also key.
    I'm a Board Guide on the Debt-Free Wannabe, Bankruptcy, Credit Cards and Loans boards. I volunteer to help get your forum questions answered and keep the forum running smoothly. Any views are mine and not the official line of moneysavingexpert.com. Board guides are not moderators. If you spot an inappropriate or illegal post then please report it to forumteam@moneysavingexpert.com

    Free/impartial debt advice: National Debtline | StepChange Debt Charity | Find your local CAB

    IVA & fee charging DMP companies: Profits from misery, motivated ONLY by greed
    • meemaw
    • By meemaw 11th Feb 18, 10:03 AM
    • 8 Posts
    • 1 Thanks
    meemaw
    Antrobus, my point is that my account should be in default, not 'Sustained Arrears'. I have paperwork from Natwest to this effect.

    (Text removed by MSE Forum Team)
    Last edited by MSE ForumTeam3; 12-02-2018 at 9:29 AM.
    • fermi
    • By fermi 11th Feb 18, 10:06 AM
    • 39,490 Posts
    • 47,510 Thanks
    fermi
    Please read the info in:

    Principles for the Reporting of Arrears, Arrangements and Defaults at Credit Reference Agencies

    If you then think that the creditor has not reported it as a default, when they should have done many moons ago, make a formal complaint to the company reporting it on your file.

    State the grounds that it should have been a default, not arrears.

    State that by not recording it as a default, they are (a) recording inaccurate information in contravention of the Date Protection Act and Principles, and (b) that by doing so they are causing adverse data to remain on your credit file longer that they should.

    State that is a default is not added, backdated to 6+ years ago, you will be taking the case to the ICO and making a complaint via the FOS.
    Originally posted by fermi
    Do this. See where it takes you.
    I'm a Board Guide on the Debt-Free Wannabe, Bankruptcy, Credit Cards and Loans boards. I volunteer to help get your forum questions answered and keep the forum running smoothly. Any views are mine and not the official line of moneysavingexpert.com. Board guides are not moderators. If you spot an inappropriate or illegal post then please report it to forumteam@moneysavingexpert.com

    Free/impartial debt advice: National Debtline | StepChange Debt Charity | Find your local CAB

    IVA & fee charging DMP companies: Profits from misery, motivated ONLY by greed
    • meemaw
    • By meemaw 11th Feb 18, 10:13 AM
    • 8 Posts
    • 1 Thanks
    meemaw
    Do this. See where it takes you.
    Originally posted by fermi
    Thanks so much for your help fermi, really appreciate it.

    I'll post back here on how I get on, might help someone else in a similar situation.
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