how much a default affects your credit score

[Sue72]

That's a shame. My son has a Virgin one for £19. A complete oversight from when he moved house as a student. He had no idea as his mail wasn't forwarded and has only just discovered it on his credit report.

[BRIGADIER2JCS]

Your son needs to write to Virgins data controller and request

that the default for such a small amount be removed on the grounds

that it's unfair (if he has paid it)! Or pay it and make the request also

stating that he has never had a default notice,

[Sue72]

Thanks. It has to be worth a try.

 

Should he keep the letter short and factual or lay it on thick about how appologetic and distressed he is?

[BRIGADIER2JCS]

They have heard every sob story in the book, keep

it factual,just mention that it is causing difficulties

at his age.

[Sue72]

Thanks. I'll get him to do that.

[DBY]

Got Lowells to remove a default today, was due to drop off in August anyway, just thought i'd chance it given that the default was lodged 9 months after the last payment, used the ICO guidelines and the DPA 1988 in respect of recording accurate data, couldnt believe it. In the last 24 hours have finally got all 3 last remaining defaults off my CRF, 2 which were a pain and have taken a long long time and a fairly big fight - yipee! Oh and for rebuilding credit i used Experian match credit last week in search for a CC - got refused by MBNA but Nationwide accepted - applied with 3 defaults on my file!

[Sue72]

Well done, you must be so relieved.

 

How long after the final payment should the default be lodged?

[DBY]

Well done, you must be so relieved.

 

How long after the final payment should the default be lodged?

 

6 months - when challenged though, both Lowells and another both stated the the ICO data protection are guidance notes only - however, whilst this is true, certain elements will definitely fall under the DPA 1988 (which we should not forget is law), including the filing of defaults (section 11) which is why most organisations comply without the need of intervention from an official body, such as the ICO or FOS to correct their malicious behaviour, so dont be fobbed off with nonsense. Keep fighting, keep escalating, keep harrassing them and keep the pressure on the official bodies, it does pay off when you have a genuine case but it can be a long trip.

 

Relieved? Yes - an absolute understatement - 7 years of financial stress and worry finally came to an end yesterday - feel a huge weight off my shoulders and can finally start to make some proper plans with my life! Of course, this is all possible thanks to sites such as this and the brilliant and caring people willing to help others against the not so pleasant side of the financial industry which I believe have been guilty of ruining so many peoples lives for the sake of a few quid.

 

We have a collective voice, one which we will never lose.........power to the people!

Edited June 20, 2012 by DBY

[BRIGADIER2JCS]

The ''guidance'' states that a default SHOULD be placed

''timely'' usually within 6 months of the cause of action.

Note '' Guidance and SHOULD''.

[DBY]

Here it is in black and white.

 

 

11 Time framework

 

Although there will be some flexibility in the definition of a breakdown, we believe there should be general rules for the minimum period of arrears which should exist before a default can be filed. Equally there should be a maximum period after which, if anything is to be recorded with a credit reference agency, a default must be filed. The following are in line with the practices currently adopted by most lenders.

Accounts should not be routinely filed as being in default where full payments or those due under a rescheduled agreement are fewer than three consecutive months in arrears.

 

Accounts should normally be filed as being in default where those payments due have not been received for six months.

 

This time framework only relates to filing defaults. It does not affect the lenders’ ability to continue to report accurately on the extent of arrears using monthly status codes. We recognise that may not always be appropriate for products which advance credit over either a very short or very long-term

[BRIGADIER2JCS]

The problem with all the ''technical guidance'' is that the vague terminology

leaves it so open, that it is difficult in a lot of cases to ''prove'' that the default

is ''unfair''.

I see more requests for help on late defaults in the last six months than ever before.

[DBY]

The problem with all the ''technical guidance'' is that the vague terminology

leaves it so open, that it is difficult in a lot of cases to ''prove'' that the default

is ''unfair''.

I see more requests for help on late defaults in the last six months than ever before.

 

Absolutely, however the point which i used which has seem to worked is that the technical guidance notes are married in with the DPA set of principles.

Both should be used in conjunction with one another when contesting. I think you'd have a hard time trying to get removed maybe 7 or 8 months after the cause of action, any longer and certainly anything over a year would be deemed unfair, IMHO.

[BRIGADIER2JCS]

IMO even the principles are vague.

[boomclart]

I've just succeeded in having NatWest agree to remove a wrongly placed default from all CRA, this is the only default on my files. All other credit accounts show regular payments, I am not using anything more than between 0-3% of my available credit over the past 6 years (which is only my regular banks overdraft facility)

 

All CRA's have me with a poor score since the NatWest default appeared. Surely once this is removed I will return to my very good rating I had prior to it (as nothing else has changed) and my record will simply appear as it did pre default?

 

For others who are seeing there default drop off after 6 years, surely your wrong in saying they will see no drastic improvement in their overall credit worthiness as they may of ran their finances perfectly over the 6 years?

 

Quite a bit of scaremongering and/or misinformation being provided on this thread.

 

For what it's worth I will post my pre/post default credit scores on here once it has been removed.

[sillygirl1]

Sadly I believe you will find the opposite, because credit has to be EARNT, and you are using a low amount 'available, your record will not return immediately to pre-default amounts.

 

The whole credit reporting industry needs to be re-worked and this 6 years recording scrapped. It needs to accurately reflect the behaviour of the account and one mark lasting 6 years is not fair nor just.... and ONLY THE ORIGINAL CREDITOR must have the right to asccess our records, no third party searches to be recorded longer than three months, and any markers lasting for one year rather than 6.

 

Searches must not be used as a way of decreasing your score either..

[BRIGADIER2JCS]

It most certainly does take a good time to rebuild a credit

profile little use of credit facilities does no give any information

to potential lenders on how an individual manages their avaiable

credit.

[JuryMan77]

 

For others who are seeing there default drop off after 6 years, surely your wrong in saying they will see no drastic improvement in their overall credit worthiness as they may of ran their finances perfectly over the 6 years?

 

Quite a bit of scaremongering and/or misinformation being provided on this thread.

 

For what it's worth I will post my pre/post default credit scores on here once it has been removed.

 

I did post them. Minimal change from a default being removed (+/- 40 points on a scale of 0-999 with Experian).

 

Perhaps if you have only one default - maybe better. Most people with a default have more than one I suspect (was 6 myself, down to 3 - still no real impact in my score) - and my last 5 years are PERFECT (never overdrawn, one credit card £200 limit, used to 75% and paid in full every month).

[BRIGADIER2JCS]

Bloomclarts post may be based on what has happened on their credit

files, but overall juryman the case is as you say minimal effect.

Then if the individual conducts their financial dealings properly then

a gradual improvement will be seen to state that one will suddenly have

a good to excellent credit ''rating' is going to result in individulas being

misled and disappointed when the ''miracle'' does not happen!!!

[JuryMan77]

Just to confirm some details with experian.

 

I've now had another default removed from my account 02/08/2012.

 

Previous score: (01/08/2012) with 3 defaults showing 560.

New score: (04/08/2012) with 2 defaults showing 553.

 

Change = -7

 

go figure... Nothing else has changed.

[BRIGADIER2JCS]

Yes this does seem to happen a lot once a default is removed.

I have been given numerous reasons by CRAs for this but my

guess is that it an automatic calculation based on the overall data

available, in particular the amount of credit available and used.

[LaughingGirl]

I don't work in the industry, but I have to say that based on the experiences of those around me people are definitely being knocked back for credit for single, low value defaults. I also have to say that mobile phone service providers seem to be a problem in registering these type of defaults - I know several people who have ended up only finding out that they have had a default placed on file for very low amounts by their ex-mobile provider when they've applied for credit and been told "no". It's very worrying that someone can have their credit ruined for 6 years for missing a £15 payment at the end of their phone contract!

[BRIGADIER2JCS]

I have asked the ICO for a difinitive answer on what amount should be

considered the minimum amount owed before a default is placed.

[LaughingGirl]

I know a few people who would be interested in hearing their response!

 

It's hard to say what the minimum amount should be really - £50? £100? I suppose the counter argument would be that you could then go round running up low value debts for the rest of your life with complete impunity.

[BRIGADIER2JCS]

We will see what evasive answer is put forward when ever they decide to reply.

[Lee Vodafone Company Rep]

I don't work in the industry, but I have to say that based on the experiences of those around me people are definitely being knocked back for credit for single, low value defaults. I also have to say that mobile phone service providers seem to be a problem in registering these type of defaults - I know several people who have ended up only finding out that they have had a default placed on file for very low amounts by their ex-mobile provider when they've applied for credit and been told "no". It's very worrying that someone can have their credit ruined for 6 years for missing a £15 payment at the end of their phone contract!

 

Hi LaughingGirl,

 

I appreciate that discovering adverse information on your credit file can cause concerns.

 

In the event that any of those who you know are former Vodafone customers who'd like their cases looking into they're welcome to email me with their details via the Contact us form here quoting the code WRT135 - CAG Forum in the subject line.

 

Thanks,

 

Lee

 

Web Relations Team

 

Vodafone UK