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  • FIRST POST
    • User0251287
    • By User0251287 12th Aug 18, 4:29 PM
    • 11Posts
    • 6Thanks
    User0251287
    Requesting a default to improve credit rating
    • #1
    • 12th Aug 18, 4:29 PM
    Requesting a default to improve credit rating 12th Aug 18 at 4:29 PM
    Hi all,

    Just after a bit of advice on defaults and credit reports. In Q3 2012 I had run up unsecured debts of around £20k ( aged 23!). I entered into a DMP with Stepchange/CCCS and managed to repay the debts within 4 years due to most of my creditors kindly freezing interest and charges! All my debts are now settled Several of my creditors defaulted me after missing a few payments and these defaulted debts have now dropped off my report . Three of my creditiors (RBS, Barclaycard and Newday) did not default me and my question relates to whether I can ask them to retrospectively add a default date in order for the debts and payment history to disappear off my credit report?

    Thanks in advance
    Last edited by User0251287; 13-08-2018 at 10:52 AM.
Page 1
    • Gary_Dexter
    • By Gary_Dexter 12th Aug 18, 5:50 PM
    • 2,310 Posts
    • 1,290 Thanks
    Gary_Dexter
    • #2
    • 12th Aug 18, 5:50 PM
    • #2
    • 12th Aug 18, 5:50 PM
    You can ask.

    But if they!!!8217;ve marked them as AP then that!!!8217;s correct
    • Willing2Learn
    • By Willing2Learn 12th Aug 18, 5:58 PM
    • 1,585 Posts
    • 1,202 Thanks
    Willing2Learn
    • #3
    • 12th Aug 18, 5:58 PM
    • #3
    • 12th Aug 18, 5:58 PM
    You can ask.

    But if they've marked them as AP then that's correct
    Originally posted by Gary_Dexter
    Ditto to this.

    @OP - Well done on becoming debt free!!!
    I work within the voluntary sector, supporting vulnerable people to rebuild their lives.

    I love my job

    • fatbelly
    • By fatbelly 12th Aug 18, 6:18 PM
    • 12,791 Posts
    • 9,866 Thanks
    fatbelly
    • #4
    • 12th Aug 18, 6:18 PM
    • #4
    • 12th Aug 18, 6:18 PM
    Yes you can - quote this

    https://forums.moneysavingexpert.com/showpost.php?p=72059053&postcount=4
    • User0251287
    • By User0251287 12th Aug 18, 7:23 PM
    • 11 Posts
    • 6 Thanks
    User0251287
    • #5
    • 12th Aug 18, 7:23 PM
    • #5
    • 12th Aug 18, 7:23 PM
    Thanks! Have you heard of any successes with this method?
    • binaryuniverse
    • By binaryuniverse 12th Aug 18, 7:29 PM
    • 767 Posts
    • 481 Thanks
    binaryuniverse
    • #6
    • 12th Aug 18, 7:29 PM
    • #6
    • 12th Aug 18, 7:29 PM
    I managed to get Barclays to remove my AP from my file, after arguing that it put me in a far worse position than a default. It's definitely worth a go. Although if they you're no longer paying them they may not be as forthcoming.

    But, don't ask, don't get. Send a letter to each of the creditors stating your case, and go from there.
    • User0251287
    • By User0251287 13th Aug 18, 1:24 AM
    • 11 Posts
    • 6 Thanks
    User0251287
    • #7
    • 13th Aug 18, 1:24 AM
    • #7
    • 13th Aug 18, 1:24 AM
    Thanks all. I have sent emails to all 3 via resolver after doing some research. I will update as to how I get on for anyone else who may stumble across this post.
    Last edited by User0251287; 13-08-2018 at 10:52 AM.
    • DCFC79
    • By DCFC79 13th Aug 18, 8:47 AM
    • 32,734 Posts
    • 20,603 Thanks
    DCFC79
    • #8
    • 13th Aug 18, 8:47 AM
    • #8
    • 13th Aug 18, 8:47 AM
    Remember that your credit rating is only seen by yourself and no 1 else, lenders see your history.
    • User0251287
    • By User0251287 13th Aug 18, 10:50 AM
    • 11 Posts
    • 6 Thanks
    User0251287
    • #9
    • 13th Aug 18, 10:50 AM
    • #9
    • 13th Aug 18, 10:50 AM
    Yes but my understanding is that if the debts are defaulted back to 2012 when I originally fell into arrears, the history for each of these debts will disappear 6 years after the date of default. This will improve my own credit rating and should make me more attractive to mortgage lenders
    • Gary_Dexter
    • By Gary_Dexter 13th Aug 18, 11:13 AM
    • 2,310 Posts
    • 1,290 Thanks
    Gary_Dexter
    It will make it look more attractive to lenders because you no longer have the defaults on your credit files yes.

    But not for the made up score or rating that no one sees
    • User0251287
    • By User0251287 13th Aug 18, 3:41 PM
    • 11 Posts
    • 6 Thanks
    User0251287
    I do not have defaults on my credit report. I think you have misunderstood my original post. I understand the score is made up by Experian. I am trying to improve my chance of a mortgage by cleaning up my credit history. I am asking lenders to default my accounts back to 2011 so that the adverse information disappears from my report.

    FIRST SUCCESS! Barclaycard called less than 24hrs after sending my complaint via resolve and agreed to my request. One step closer to a successful mortgage application. Just RBS and NewDay to go
    • Willing2Learn
    • By Willing2Learn 13th Aug 18, 3:45 PM
    • 1,585 Posts
    • 1,202 Thanks
    Willing2Learn
    ...I am trying to improve my chance of a mortgage by cleaning up my credit history. I am asking lenders to default my accounts back to 2011 so that the adverse information disappears from my report.

    FIRST SUCCESS! Barclaycard called less than 24hrs after sending my complaint via resolve and agreed to my request. One step closer to a successful mortgage application. Just RBS and NewDay to go
    Originally posted by User0251287
    Well done! If they give you problems, don't forget to quote the ICO as per post #4
    I work within the voluntary sector, supporting vulnerable people to rebuild their lives.

    I love my job

    • luvsmoothies
    • By luvsmoothies 14th Aug 18, 1:11 PM
    • 540 Posts
    • 365 Thanks
    luvsmoothies
    I'm a bit confused(not for the first time I know!). I always thought an arrangement to pay was preferable to a default, considering that payment has been agreed rather than a default where no payment is ongoing.
    • Willing2Learn
    • By Willing2Learn 14th Aug 18, 1:18 PM
    • 1,585 Posts
    • 1,202 Thanks
    Willing2Learn
    I'm a bit confused(not for the first time I know!). I always thought an arrangement to pay was preferable to a default, considering that payment has been agreed rather than a default where no payment is ongoing.
    Originally posted by luvsmoothies
    Not if clearing the debt takes longer than six years.

    • Person A makes no attempt to pay their creditor and the account goes into default. The account drops off their credit file after six years.
    • Person B comes to an arrangement to pay (AP) over 12 years. The account stays on their credit for 18 years, only dropping off six years after the account is settled.
    • Person A is better off than person B because of the way the account is recorded in their credit file, even though they never paid their debt.
    • This anomaly is unfair to person B. Why should person B be penalised for choosing to settle their debt?
    • This anomaly is recognised by the ICO, so that the AP can get recorded as a backdated default, so that person B is no worse off than person A, so that the unfairness of the situation is corrected.

    Does that make sense??
    Last edited by Willing2Learn; 14-08-2018 at 1:35 PM. Reason: Clarity
    I work within the voluntary sector, supporting vulnerable people to rebuild their lives.

    I love my job

    • sonuenjoys
    • By sonuenjoys 19th Aug 18, 11:08 PM
    • 35 Posts
    • 17 Thanks
    sonuenjoys
    Default markers automatically disappear once the account is closed and more than since years has elapsed since the default mark was put on your credit file.

    If you are in dire need of credit or loans only then approach lenders otherwise its a waste of time.
    • sonuenjoys
    • By sonuenjoys 19th Aug 18, 11:12 PM
    • 35 Posts
    • 17 Thanks
    sonuenjoys
    more than six years******
    • User0251287
    • By User0251287 4th Sep 18, 10:57 PM
    • 11 Posts
    • 6 Thanks
    User0251287
    Barclaycard have updated my file and the account has ‘dropped off’. Frustratingly still awaiting a response from both RBS and NewDay but they are all within the 8 weeks so just biding my time!
    • User0251287
    • By User0251287 10th Oct 18, 10:08 PM
    • 11 Posts
    • 6 Thanks
    User0251287
    Update
    New day eventually responded 7 weeks later...

    They’ve stated that as I entered into a payment arrangement the is no error in the information they’ve recorded. They did not default me and therefore can’t add a default date. I don’t think Barclaycard entered a default date either they just removed the account.

    I’ve sent this to the executive complaints team today to see how I get on. If not I will escalate to FOS and ICO to see if they can help. Any other advice?

    “I would like to give you a chance to review you final response before escalation to the Financial Ombudsman Service. I believe that my complaint has been misunderstood and that I have been treated unfairly.

    My complaint has two elements:

    · I am unhappy with the information recorded by NewDay on my credit report.
    · I feel as though I have been treated unfairly compared to other customers for which I have provided an example.

    Background

    To provide you with some background information, I had problems making my usual monthly payments to NewDay due to financial difficulties, I entered into a Debt Management Plan (DMP) with Stepchange. I was unable to make the agreed repayments and the account fell into arrears. I continued to make reduced payments through my DMP. My DMP ended in July 2016 at which point the debt was fully repaid.

    The FCA handbook states the following in relation to customers in arrears:
    If a customer is in default or in arrears difficulties, the firm should, where appropriate:
    · inform the customer that free and impartial debt advice is available from not-for-profit debt advice bodies; and
    · refer the customer to a not-for-profit debt advice body.
    It also states “When dealing with customers in default or in arrears difficulties a firm should pay due regard to its obligations under Principle 6 (Customers’ interests) to treat its customers fairly.”

    Credit Report

    The Information Commissioner’s Office (ICO) has published guidance stating “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.”

    NewDay did not default my debt and instead updated my report monthly with an ‘Arrangement to Pay’ marker. This means the account and the payment history will be reported to the credit reference agencies until 2022. If NewDay had applied a default as per the guidance in 2011 then the account would no longer show on my credit report.

    Unfair Treatment

    I have been unfairly treated as the above places me into a considerably worse financial position compared to that of a customer who was defaulted. I entered into my DMP following advice from a not-for profit debt advice body. It ensure I continued to make payments and eventually clear this debt. If I had continued to ignore the problem and build arrears without reaching an agreement to make reduced payments then NewDay would have placed my account into default. A customer who has made every effort to repay their debt following financial difficulty should not be more harshly treated than someone who has not paid.

    For your awareness in handling this complaint, I should also note that I issued the same letter of complaint to Barclaycard on the same date. In addition to resolving this issue much quicker than NewDay, Barclaycard found in my favour, agreed that I had been treated unfairly and agreed to amend the information recorded on my credit report. They agreed to remove the debt completely from my credit report. I can provide evidence of this if required.

    I do not understand how NewDay, who are supposedly observing the same guidance and rules issued by the FCA and ICO have reached a different conclusion in reviewing my complaint. I think it is clear from the above that I have valid reason for complaint and that if escalated the relevant body will find in my favour. I ask that the team review this complaint and the final response as I am challenging your findings in relation to what has been recorded on my credit report – I believe the account should have been defaulted when you take into consideration the FCA and ICO guidance. I am also asking you to consider how I have been treated unfairly which seems to have been omitted from your response. Please review and respond as soon as possible.”
    • Gary_Dexter
    • By Gary_Dexter 11th Oct 18, 7:45 AM
    • 2,310 Posts
    • 1,290 Thanks
    Gary_Dexter
    I’m sure an AP doesn’t constitute a default marker as it was an arrangement to pay.

    If you weren’t paying at all and the markers were missed payments then yes I would contest a default.
    • Willing2Learn
    • By Willing2Learn 11th Oct 18, 11:01 AM
    • 1,585 Posts
    • 1,202 Thanks
    Willing2Learn
    New day eventually responded 7 weeks later...

    They’ve stated that as I entered into a payment arrangement the is no error in the information they’ve recorded. They did not default me and therefore can’t add a default date.
    Originally posted by User0251287
    New Day are not following the guidelines. It is quite simple really. You should not be any worse off than someone who made no attempt to pay and who was defaulted straight away. Just because you chose to pay, and entered into an arrangement, the account should still be marked as defaulted, backdated to when you were 3-6 months in arrears of the original credit agreement. This is the fairness to which the guidelines refer, as being marked with AP is unfair when compared to any other customer who made no attempt to pay.

    Hold your ground, and escalate to the FOS and ICO as necessary.
    I work within the voluntary sector, supporting vulnerable people to rebuild their lives.

    I love my job

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