What makes a Credit File Default

[NeilP]

I have just got a copy of my credit file and i have noticed a Default on my file.

 

The default appears on a Credit Agreement that i have (which for some reason is split into two loans, and therefore two defaults appear) which i missed payments, and they took me to court (CCJ) and a payment plan was agreed.

 

That is by the by, my original question is:-

 

What makes a 'default' a 'default' on a credit account?

 

Thanks

 

Neil.

[fatima]

The Information Commissioner has produced guidance notes on defaults - The term ‘default’ is used to refer to the situation when the account relationship between the lender and borrower has broken down such that the lender would not wish to continue this account relationship. In many cases this may denote the onset of legal action.

[dave]

Perhaps I should do the same to Abbey.

 

I have no wish to do business with them either ;-)

[jonni2bad]

A defaulted account is where you have not kept to a credit agreement regulated by the Consumer Credit Act 1974. The Default notice would have been served under the Act, and registered on your credit file. This file will show the date that you broke the relevant term of the credit agreement, the amount owed at the time the term was broken (the default) and the amount still owed to that account.

 

These defaults can have a damaging effect on your ability to obtain credit. Unlike CCJs, which if settled within 28 days of the judgment are removed from your credit file, defaults cannot be removed and will sit on your file for six years since you broke the credit agreement. Very unfair, to say the least....

 

As I understand it, the default issuer does not have to have ANY form of licence or qualification in order to issue these - yet another disgrace....

[NeilP]

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