Defaults after 6 years - what happens?

[kevlo]

Good Evening all and happy new year (little late i know)

 

I have recently posted a thread and received the reply below which has raised a few doubts in my mind. First of all though i'm not finger pointing at the person who said the reply, i thank them for taking the time to reply and answer my other questions but i just wanted to take this particular point out of previous thread so it didnt get confusing and to clarify things.

 

Oh, what about the other Defaults, as there's nothing stopping those creditors renewing them if there is still an outstanding balance on the accounts?

 

The statement has worried me slightly. Myself and my fiance have a few defaults on our credit files all of them at least 3 years old. Therefore how i understand it if we keep our noses clean for the next 3 years and only build good credit i.e i have a vanquis credit card that i religiously spend £500 every month and pay it off in plenty of time every month. This will result in a credit file that doesnt show any defaults and a healthy ability to maintain credit accounts. Am i correct in thinking this as the above reply seems to suggest that the creditors have the rights to renew the defaults and ruin my credit history again.

 

just to be clear, of the defaults only 2 of them havent been settled both of which are being paid through a CCCS dmp and may even get settled in the next 3 years.

 

I really appreciate anyones help as we have a 3 year plan to hopefully finance a self build project and its all pointless if we arent able to get a mortgage to help finance it.

[rebel11]

Hi kevlo

 

If you are referring to what happens to your credit file 6 years after a default has been applied in the UK, then the simple answer is the default is removed.

All references applied to your credit file are automatically removed after 6 years, including defaults and CCJ's .

It's best to imagine your credit file is a rolling log of the previous 6 years of your credit history.

[kevlo]

thanks for your quick reply. so there is no way they can come back and bite me in the bum.

 

1)for example my partner has a loan with an outstanding balance of £7600. It defaulted in june 2007. We are now paying this through a debt management plan at £100 a month so in 3 years the default will have been removed but the balance will still be approx £4000. How will this show on my credit file. Will it show as a good credit account in all green with an outstanding balance of £4000 and no default. Or will it disapear completely from my credit file?

 

2) The original quote that raised this doubt was from a member of the site team so it was a respected member and he mentioned them reapplying. Whether rightly or wrongly, is this something that happens and is it easily challenged?

 

please help as i'm getting excited about our plans but it will all be to no avail if we are unable to get a mortgage.

[rebel11]

Hi kevlo

 

We've got a Representative from Experian on this site If you send him a link to this thread, then he should be able to give you full chapter and verse.

 

http://www.consumeractiongroup.co.uk/forum/member.php?317310-Simon-Experian-Rep

 

That should give you peace of mind for your future plans.

[Simon - Experian Rep]

Hello Kevlo, I'm afraid I can't PM you as my post count is too low. In answer to your query - Rebel11 is correct. Defaulted accounts are automatically removed six years after the date of the default - this is true regardless of any outstanding amount. They cannot be 'renewed' as this would involve the company that records the information entering an incorrect default date.

 

Kind regards

Simon

[rebel11]

Thanks Simon.

[kevlo]

Hello Kevlo, I'm afraid I can't PM you as my post count is too low. In answer to your query - Rebel11 is correct. Defaulted accounts are automatically removed six years after the date of the default - this is true regardless of any outstanding amount. They cannot be 'renewed' as this would involve the company that records the information entering an incorrect default date.

 

Kind regards

Simon

 

thanks simon, so will the accounts not show on my file whatsoever? even if im still paying them off? or is it just the default that is removed and the account will still show but in green?

[royalscot]

Your credit file after the six years will show no trace of this account , your credit rating will increase

 

 

regards

 

rs

[kevlo]

Your credit file after the six years will show no trace of this account , your credit rating will increase

 

 

regards

 

rs

thanks for confirming that. its great news

[Dotty50]

Hi kevlo

 

If you are referring to what happens to your credit file 6 years after a default has been applied in the UK, then the simple answer is the default is removed.

All references applied to your credit file are automatically removed after 6 years, including defaults and CCJ's .

It's best to imagine your credit file is a rolling log of the previous 6 years of your credit history.

 

I thought a CCJ remained until paid/satisfied? Although I am happy to be corrected!

[maroondevo52]

A CCJ if not paid within 14 days of judgement will remain on your Credit File for 6 years.

[Dotty50]

Thanks for confirming that maroonedevo

[Dauntless]

Sorry to jump on the back of this thread but its the closest one I could find to what I am after, without submitting a duplicate, as it is already answering some of my questions.

 

Can anyone advise what happens to that 6 years if:

 

1)the applied default date that is registered on the credit file is incorrect,

 

and

 

2) no default notice was given?

[royalscot]

If points 1 and 2 are the case then the default is invalid and should therefore be removed immeadiatelly

 

regards

 

rs

[Dauntless]

Thanks Royal.

 

I'm not sure if I did recieve the notice but that I will find out.

 

My main concern is point 1.

I took out a credit card on 13/10/08 and had trouble with the company setting up the direct debit so I have never made a payment from that date, my fault and I don't dispute the reason for the default but the default was not registered onto my records until 31/05/2010.

This is why I believe its the wrong date - It would adversly affect my credit for say 7 1/2 years instead of the 6 this thread suggests as I defaulted from day 1 and not a year and a half later.

 

Can anyone advise me of their opinon to this?

 

Thank you.

[247orbital]

I have an incorrect default on my file from HFO who purchased the account from Barclaycard and yet they refuse to remove it even though I have written confirmation from Barclaycard of the correct defualt date. The CRA just informed me to contact HFO something I will not do.

[royalscot]

Thanks Royal.

 

I'm not sure if I did recieve the notice but that I will find out.

 

My main concern is point 1.

I took out a credit card on 13/10/08 and had trouble with the company setting up the direct debit so I have never made a payment from that date, my fault and I don't dispute the reason for the default but the default was not registered onto my records until 31/05/2010.

This is why I believe its the wrong date - It would adversly affect my credit for say 7 1/2 years instead of the 6 this thread suggests as I defaulted from day 1 and not a year and a half later.

 

Can anyone advise me of their opinon to this?

 

Thank you.

Hi Dauntless

 

I think the best thing to do in your case would be to determine if they did indeed send you a Default Notice

 

I would send them a Subject Access Request

 

To receive a DN you must have missed payments over a six month period , this would show in red numerical numbers fron 1 - 6 on your credit file , after that you get 14 days to make good on the Default Notice .

 

It is then sent to the CRA which takes 28 ( plus 2-3 days processing )

 

So the Default shown on your Credit File should be dated at least 42 days after the original DN was issued and not the year and a half that you stated

 

regards

 

rs

[royalscot]

I have an incorrect default on my file from HFO who purchased the account from Barclaycard and yet they refuse to remove it even though I have written confirmation from Barclaycard of the correct defualt date. The CRA just informed me to contact HFO something I will not do.

Hi 247

 

I would contact HFO asap and explain the situation ( by letter ) and let them know in no uncertain terms

 

that you will contact the information Commissioner Office if they do not remove the Default

 

If you think its incorrect and you have written proof backing that up then im sure they will relent

 

Im afraid you WILL have to speak to HFC at some stage though

 

regards

 

rs

[Dauntless]

Thanks Royal, once again you've been a great help.

[sevenhorsestakes]

The part that I have never quite had explained is: Is the default date the date from which none payment was made - ie: Say the last payment was made August 2004, but the default listed on the credit file says March 2005. As far as I can see from the Limitiations Act the date is the original default date and not that applied to the credit file. Is this true?

[247orbital]

I will speak to HFO as soon as the debt becomes SB, which is not to long now. I would imagine I will get the usual phantom payment repsonse from them. I will give them the 28 days to remove the listing from my credit file then if that fails I'll go straight to the letter before action, county court etc. At the same time I will contact the CRA and instruct them to remove the listing and provide evidence of the correct defualt date.

[royalscot]

The part that I have never quite had explained is: Is the default date the date from which none payment was made - ie: Say the last payment was made August 2004, but the default listed on the credit file says March 2005. As far as I can see from the Limitiations Act the date is the original default date and not that applied to the credit file. Is this true?

 

Hi Seven , i think post 17# answers this

 

regards

 

rs

[sevenhorsestakes]

Now I feel very confused! From what I have understand from other sources it's 6 years from the month you defaulted. So if the last payment was made Sept 04 then the default month is Oct 04. The information on the CSA file from the DCA is May 05.

 

Point 1 - I didn't receive a DN as I wasn't there - do they send that by recorded/registered - which ever way I never received one.

 

If the default date is Oct 04, then the DN notice would be April 05/May 05 + 42 days which would be June/July. Which still doesn't tie in with the CSA date.

 

So are you saying that the date on the Credit File is the correct date of default or (Forgive me for being stupid) Is the default date the month of the original default. Which do I apply my mail to in terms of an s.5?

 

Advice to ease this confusion please?

[royalscot]

You need to find out the date you Defaulted on ...to do that you have to send a Subject Access Report to the Original Creditor .

 

Do you have your credit file from a Credit Reference Agency ? if so that would tell you the date you Defaulted on , add six years to that date ...Thats when it falls off

 

The Default Notice Should have been sent to you recorded delivery

 

You say you never received it and if you want to contest it it will take a wee while to do this

 

Is there any monies still owed to this account ?

 

As i said you need proof of Default Date ....you need to SAR the OC

 

RS

[sevenhorsestakes]

Thank you for that reply. the default date on the CRA is as listed by Cabot not the original Lender who has sold the debt to Cabot. So I assumed that Cabot have placed this on my file at the time of purchase. But the original default was 6 months earlier. There is monies attributed to this account. Nothing has been paid into this account since Sept 04. So as Cabot own the debt. Do I still send a notification SAR to the OC or them? All other sources have suggested that the date of default is the date payment ceased or the month following.