When will the defaults disappear?

[Francogirl]

Hi

 

sorry if this is in the wrong place.

 

I’ve researched but have read 2 different options and was wondering if someone knows definitely. 
 

I defaulted on my credit cards in 2017. I paid into an IVA in 2019 but after loosing my job the IVA was cancelled and i contacted the debtors myself and paid £5 a month to each of them. Fast forward to 6 months ago I got some advice did TONS of research and managed to get all the debts written off for various reasons. 
 

my question is will these defaults come off my file after 6 years or will it be from the last time I contacted them. 
 

Thanks for reading

[Andyorch]

Welcome to the forum.

 

Last acknowledgment in writing referring to the debt or last payment + 3 months the statute of limitations will run.

 

.

[dx100uk]

the registered defaulted date +6yrs. 

....that is if your original creditor did issued you with a default notice under sec 87/8 of the consumer credit act.

 

if not then... all your debts in the IVA must be defaulted upon the start date of the IVA or the OC DN date...whichever is the earlier

 

dx

 

[London1971]

If they were defaulted in 2017'  they will drop off your Credit File at some point this year. It's worth noting that those defaults are so old they will likely have no effect on your eligibility for credit or a mortgage, even before they have dropped off.

[Francogirl]

Thank you so much for your guys help. 
This is the issue I’m having that many websites say it’s either 6years from the default date or when I last contacted them. 
 

It’s frustrating because I’m now in a really good place financially, I don’t owe anymore money to anyone. But yet my credit file is shocking because of these defaults. 
 

My hope was by next year I could start building my credit rating up again once these defaults had gone but this may not be the case

[BankFodder]

There are different views about this issue.

In terms of the legal enforceability of a debt, the claim against you must be brought within six years of your default. Historically the default refers to the last time that you missed a payment. Not the last time that you made a payment. In other words, the six years begins from the first breach of your contract.
Alternatively, if you have acknowledged the debt during the six year period then the six years begins again from that acknowledgement. Acknowledgement of the debt means that you accept that you are indebted.
If you simply refer to a debt in some oblique way but clearly don't accept the debt then that is not enough to trigger a new six-year period. 

"Default" in respect of the marking of your credit file is where a lot of confusion exists.
The date of default in respect of your credit file used to be the date of the breach of contract – in other words the date of your first missed payment – or else the last date that you acknowledged the payment. In other words, the same definition as above.

However, in recent years creditors have started to say that your six year default. Insofar as your credit file is concerned begins on the date that the default was entered against you on your credit file.
Of course this is extremely unfair because this means that a creditor could simply not enter a default for years and then one day suddenly enter the default to begin the six year clock ticking.

On this basis, you can still be suffering in respect of a debt which was accrued 10, or 15, or 20 years ago!

 

This is effectively a manipulation of the six year limitation period which needs to be addressed in a court case – but it hasn't been dealt with yet.

I'm quite certain that a judge would not allow this definition to become law.

I'm quite sure that if the issue was tested in court, that the judges would confirm that the six year limitation period begins from the date of the actual breach and that the entry of a default on your credit file is simply a recording of that breach and has no legal status.

[London1971]

1 hour ago, Francogirl said:

My hope was by next year I could start building my credit rating up again once these defaults had gone but this may not be the case

Your credit rating is nothing to do with these defaults.  

[Francogirl]

Really?? 

[London1971]

No Lender or mortgage provider is going to take a near 6 year old default into account, in their decision making. Providing you don't have any newer one's of course.  You will be very surprised that in a few months when they have all fallen off your Credit Score won't budge.

 

If you want to improve you're credit Score, the best thing you can do is take out a credit card with a low limit, use it regularly and pay it back every month, so it doesn't accrue any interest.

 

Watch your score tick upwards over the next 12 months.

 

Source.. That happened to me

[Francogirl]

this is what I’m thinking.

 

Getting a credit card and using it for something little like fuel.

Paying it off each month and seeing if my score increases.

I don’t actually have anything of credit the moment except a phone contract 

[London1971]

That is the best way, and you sound like you are disciplined enough to keep on top of it ,

 

 Slowly your credit score will rise. your mobile phone contract is probably helping also, otherwise it would be even lower. As for the defaults, once they have dropped off your file, no lender or anyone else can see them ever again anyway.  

 

I remember when I applied for my mortgage, I still had a few 5 year old defaults and a CCJ visible, that was 4 years old, the broker said not to worry about any of that, and he was right.

 

 

[dx100uk]

1 hour ago, BankFodder said:

I'm quite certain that a judge would not allow this definition to become law

 

Doyle v PRA Group (UK) Ltd [2019]..... they did DN date + 14 days = Statute Barred.

 

 

[dx100uk]

@Francogirl

 

do the debts have a registered defaulted date against them in the debt summary?

 

i'e defaulted date = xxxxxx

 

[BankFodder]

14 minutes ago, dx100uk said:

 

Doyle v PRA Group (UK) Ltd [2019]..... they did DN date + 14 days = Statute Barred.

 

 

 

I hadn't realised that this is a Court of Appeal case. I think it is a very bad decision

[Francogirl]

23 minutes ago, dx100uk said:

@Francogirl

 

do the debts have a registered defaulted date against them in the debt summary?

 

i'e defaulted date = xxxxxx

 

Yes they do

[dx100uk]

then regardless to whatever you do

each debt will be removed from your file as that date meets it's 6th B'day, never to return.

doesn't mean the debt is statue barred mind,

 

thats down to if you paid or used the 'credit' after that date, or YOU wrote and SIGNED a letter to the debt owner stating i owe you this debt.

 

as for taking out credit to 'repair your score' etc ....old wives tale!! latterly purported by the credit reference agencies themselves because they were  allowed to 'recommend' credit to you as they are paid by the banks and debt collectors selling commission!!

 

  

[London1971]

I agree with DX in that credit score has been very commercialised by the likes of Experian, Credit Karma etc, just look  at all the YouTube and TV ads. , and of course Credit Karma etc make loads of commission on pushing loans and credit.

 

However, that doesn't change the fact that in the last month suddenly I've been using my credit card for the first time in months to buy building materials for fixing up my garden, and paying it back a few days later. I've been getting pings left right and centre about how my credit score is going up all of a sudden.  Things like 'wow your on a repayment streak your score has gone up 'x points'

 

Cynical credit agencies trying to make money? Probably.  However, my score has gone up with all agencies, as a result.  Also, how important is your credit score to you? I'd say, not very if you aren't planning to buy a house or move to another rented property.

 

If it's important to you then it's a low risk way of raising your score slowly, even if nothing happens.  Whether you think I'm right or wrong on the credit card, I'd re iterate that those defaults are having next to zero effect on your credit.