Defaults, what happens at 6 years.

[cashins]

I should know the answer to this but don't

 

I have a number of defaulted accounts which will time out next year. Out of all of them, only one turned out to be enforceable, a fixed term, being paid by arrangement which now has a balnce left of around £1k.

 

Am I right in thinking that although the default entry itself should disappear - the account will still continue to show with the CRA's, (as it is still being paid) and will still reflect that it is being paid by arrangement?

 

David

[brokebutnotbeatn]

Yes I believe so

[citizenB]

might be worth trying to track down car2403.. he should know the answer to that one

[cashins]

Thanks all, I will try car.

 

David

[car2403]

Yes. Watch they don't try to renew the Default, though.Have the unenforceable ones been removed, then?

[cashins]

Yes. Watch they don't try to renew the Default, though.Have the unenforceable ones been removed, then?[/QUOTE]

 

Hi Car, I took action through the ICO on 2 of them because (Barclaycard) had posted default dates 2 years after the correct date and these have now fallen off.

 

Not bothered to fight the others as I couldn't do much about the enforceable one and they all drop of early next year. Reason for the original question is that as the balance on the account in question is quite low it may well be worth me doing a deal to save it running on as an arrangement, (provide of course I get it cast iron in writing that it will be marked satisfied).

 

Thanks

 

David

[straftat]

make sure they dont get a dodgy DCA like Muk Hall to put an OUTSTANDING DEBT search on table 1 of your credit file , effectively extending the 6 years to 8

[cashins]

make sure they dont get a dodgy DCA like Muk Hall to put an OUTSTANDING DEBT search on table 1 of your credit file , effectively extending the 6 years to 8

 

Good point. The particular bunch of aerosoles, (The OC) are known to be vindictive but as at that point they will be the only one left - if they want a scrap, they can have one.

 

David

[Duffers Mum]

So, if you have a default and are paying it off the default will continue to show after 6 years and if you are not paying them the default and account will fall off your credit file? Is that correct?

[creditcardmug]

I wouldnt try to do a deal with them, they will take your money, then pass the balance on to the next cretin down the slimey pole who will probably try to add on collection charges??

[car2403]

So, if you have a default and are paying it off the default will continue to show after 6 years and if you are not paying them the default and account will fall off your credit file? Is that correct?

 

The Default (uppercase 'd') is valid for 6 years from the date it's entered - after this, most CRA's remove them automatically. (Although sometimes need a nudge in the right direction)

 

If there's still a balance left, the default (lowercase 'd') persists and the Account will likely continue to show as being in arrears.

 

One thing to watch out for is some CRA's displaying Defaults after the 6 years as they determine Account overdue by a specific amount (let's say 6 months) as in Default, even if no Default has been entered.

 

This malarky isn't easy to get your head around, but just answering questions asked and hoping not to confuse further in the process.

[cashins]

The Default (uppercase 'd') is valid for 6 years from the date it's entered - after this, most CRA's remove them automatically. (Although sometimes need a nudge in the right direction)

 

If there's still a balance left, the default (lowercase 'd') persists and the Account will likely continue to show as being in arrears.

 

One thing to watch out for is some CRA's displaying Defaults after the 6 years as they determine Account overdue by a specific amount (let's say 6 months) as in Default, even if no Default has been entered.

 

This malarky isn't easy to get your head around, but just answering questions asked and hoping not to confuse further in the process.

 

True, but your thoughts are appreciated.

 

Found the ICO helpfull (but slow) on the 2 Barclaycard ones previously mentioned. These accounts had been payed on an arragement for 2 years before I found CAG and discovered their agreements were junk. BC argued that the default should run from when the arrangement finished, (ignoring the fact they had issued mickey mouse Mercers defaults 2 years earlier). The ICO ruled on a fairly simple priciple, the question being, was I placed 'in a worse position by trying to pay these debts' than making no attempt to do so. The answer was yes and they had them removed.

 

Think they may well back me up again if this other lot try playing silly burgers on this one.

 

David

[Duffers Mum]

oh I presumed that after 6 years they just dropped off whether you'd paid them off or not, looks like my credit file will be wrecked forever and a day then

[cashins]

oh I presumed that after 6 years they just dropped off whether you'd paid them off or not, looks like my credit file will be wrecked forever and a day then

 

Not as I see it.

 

In my case the arranged payment could go on but where doe's that leave me when I have made an attempt to pay the debt.

 

David

Edited May 22, 2011 by cashins
typo

[Muffintop]

Yes. Watch they don't try to renew the Default, though.Have the unenforceable ones been removed, then?

 

I thought that once default lodged on credit file it lasted 6 years... tell me it cant continue after that until debt paid, thought it was barred by statue after 6 years, this has been only thing keeping me going thinking there would be an end to my defaults following my cca requests in 08

[car2403]

I thought that once default lodged on credit file it lasted 6 years... tell me it cant continue after that until debt paid, thought it was barred by statue after 6 years, this has been only thing keeping me going thinking there would be an end to my defaults following my cca requests in 08

 

If no payments have been made in that time, then yes it's SB and no Default should appear. The issue here being that payment arrangements, by their nature, mean the debt is being acknowledged each month when payments are made, with restarts the SB period over and over again.

[craigers]

when the six years from default date is up, the account should drop off the crf regardless of the balance. if the dca attempts to keep the account on the crf, be it as payments up to date etc, then thats a no no. there is no ambiguity.

[car2403]

when the six years from default date is up, the account should drop off the crf regardless of the balance. if the dca attempts to keep the account on the crf, be it as payments up to date etc, then thats a no no. there is no ambiguity.

 

Yes, but then, what they SHOULD do and what they WILL do are different things. Can't imagine the hassle of getting an aged account removed if they don't play ball

[craigers]

i don't think you'll have too much hassle. just contact the cra and they will do it. cras believe they are above the law but they aren't that stupid that they'd allow the account to continue to show. i've contacted all three cras about defaulted accounts with an outstanding balance showing beyond six years and they have removed said accounts.

[Duffers Mum]

Ok...humour me here, because i'm not afriad to say i'm dopey

 

So, say there is an account with £6K balance, default showing as (for example) 20.12.05, no payments have been made. On 21.12.11 that whole entry will disappear completely from a credit file? Is that right?

 

I guess running accounts like credit cards and mortgages continue to show because they are still live and payments are still being made?

[craigers]

It should disappear. It probably won't because the cra don't seem to trawl every day. But if you contact them then they would remove it.

 

It doesn't matter what type of account it is, it should disappear.

[car2403]

Ok...humour me here, because i'm not afriad to say i'm dopey

 

So, say there is an account with £6K balance, default showing as (for example) 20.12.05, no payments have been made. On 21.12.11 that whole entry will disappear completely from a credit file? Is that right?

 

I guess running accounts like credit cards and mortgages continue to show because they are still live and payments are still being made?

 

Yes, that's right, dopey

[Duffers Mum]

Yes, that's right, dopey

 

[count orlok]

So, I have (had) an loan that should have finished at the end of 2008, but I go into trouble and missed the last 3 or 4 payments, I am paying it off (or will be untill my ICB is stopped), but it was never defaulted as the agreement is now finished. The OC has it back after being sent to the usual suspects despite continued payments. Despite paying for 3 years the balance is double what it was when I started paying (I will stop payments when the original balance is paid in 2018, if as below). If it was not defaulted merely in arrears when will it disapear from my CRF?

 

All as far as I can remeber all the others have been defaulted and are getting token payments (again until my ICB is stopped), so I guess they will all disapear in 6 years. Although if the government decides not to stop payments to the sick and disabled I could be paying this for the next five hundred years, so could they appear forever?

Edited May 23, 2011 by count orlok

[Duffers Mum]

Oh and another question...what about if the DCA are adding interest to said defaulted debt? Will it still drop off after 6 years as the balance is increasing?