Hello everyone. My query is simple and I'm certain has been asked and answered on here at some point. My partner went through a very acrimonious divorce six years ago when her husband upped and left her with a house and four children to contend with and no money. She subsequently got a job and has just about kept her head above water. Her one issue credit wise was a Lloyds Bank overdraft, in joint names for which she was chased as the husband disappeared off the face of the earth! After a lot of correspondence, Lloyds closed the account and defaulted the balance. The bank charges and interest had rocketed from £1000 to £2400 at this point. A year ago, she got a letter from 1st Credit, informing her they had taken over the account and insisting the loan be repaid. They didn't want to know about her circumstances and asked for a minimum of £50 a month which was really impossible. An amount of £20 a month was finally agreed. She noticed recently the Lloyds Bank default, which would have dropped off her credit record in 9 months, has been removed and replaced by an account with 1st Credit and a new default date which won't drop off for an additional 5 years. She's really at her wits end over this. I've read conflicting advice, some saying it should be the original default date and others that it's a new account and the default date is correct. Any advice would help please.

I believe a debt collection agency search is held on file for two years (as oppsed to one year with a credit search). If it was in 2007, it should drop off some time this year. It's also worth looking at all agency reports. I had an Experian report recently which was clear but Equifax showed an incorrect default for an account I settled ages ago. A lot of banks will only take on "squeeky clean" customers because of the current financial situation. When this is all eventually over, there's going to be a hell of a lot of poor folk unable to get a bank account or mortgage. What's going to happen to them I dread to think.

I'm pretty sure, if you are satisfied with the deal and have it in writing exactly how much you will repay and at the end, the debt is satisfied to everyone's approval, then a standing order is the good bet, (far far better than a D/Debit). Simply fill it in and send it to your bank (no need to send it to the DCA as they'll only send it there themselves) and they set up the monthly payment. You remain in control with this method. By the way, AIC are complete ****holes, who wrote to my boss at work informing him how much they were after me for!! Luckily, he understood and wasn't concerned.

In 1998, I was employed at a famous Knightsbridge store and had a staff discount card which was in effect a special GE Money store card. Goods purchased from the store appeared on my monthly statement less 20% staff discount. When I left the store in 2000, the balance owed was deducted from my leaving salary. In 2001, I started to get letters from GE chasing the "outstanding balance". I wrote back explaining the balance had been paid and the was account clear. I obviously could not use the card as I'd left the store and destroyed it. I heard nothing more. Then a few years later, a collection company contacted me chasing the balance (about £400). I went through the whole story again and the letters stopped. Last month I was turned down for credit. I wrote to Experian/Equifax for a copy of my record, and to my horror there's a default registered by a company, AKTIV Capital, dated October 2005 and the balance owed has increased to £2415 and rising monthly. I've never received any communication from them at all. I've hunted high and low for my leaving pay-slip, but can't find it. I'm at a wits end where to start and what to do. Could someone point me in the right direction please? Many thanks.