Credit report questions

[Riz]

Re: Credit report questions

Me!

Taken direct from This Is Money . co.uk - they don't normally get things wrong!

Well, they certainly have this time.

Have you got a direct link please? Was it off their forum?

There isn't any legislation per se last I looked, but simply an agreement between the CRAs, ICO and creditors on how long account data should be processed once a default has been placed.

It is certainly the case that all account data is removed from your report 6 years after an account has a default registered.

Neither Experian, Equifax or CallCredit make it very clear on their websites that this is what happens, but it does.

I've seen many many many sets of defaults and account data simply vanish from peoples reports after the six years, leaving no trace. Even when the debt is still unpaid and payments are ongoing.

[Riz]

Re: Credit report questions

You also have to read between the lines when looking at what the CRAS put on their websites..

For example, Equifax states that:

Type of information: Credit agreements
Expiry date: Six years from the date the account was settled, written off or defaulted – whichever happened first

i.e. all data associated with that credit agreement/account.

Or Experian:

We also keep defaulted accounts for six years from the date of the default.

Not, we keep the default data. But the account.

i.e. again, all account data is removed after the six years.

Admittedly, they rarely spell it out clearly, hence I think why there is a lot of wrong information out their on the "net".

Ask Experain and Equifax yourself if you are still unsure!

They will confirm what I have said.

[jen_br]

Re: Credit report questions

Actually Rizzle is correct, I had a problem once and not being from the UK I asked and they said "If the account is defaulted BEFORE its settled then the 6 years starts from date of default"

[The Debt Star]

Re: Credit report questions

Good thread here guys. The question I have though is what do creditors do to record information about an on-going liability and AP if ALL data relating to a defaulted account is wiped off the CRAs records. It seems almost inconceivable that creditors will let it drop like that. Great news if true, sure. I guess I'll find out in 12 months' time!

BTW, do you have to apply for the Default to come off or do the CRAs automatically remove it when it hits the 6th anniversary date?

[Riz]

Re: Credit report questions

The question I have though is what do creditors do to record information about an on-going liability and AP if ALL data relating to a defaulted account is wiped off the CRAs records.

Nothing.

It seems almost inconceivable that creditors will let it drop like that.

Unless they wish to up the game and go for a CCJ, they have no choice in the matter.

BTW, do you have to apply for the Default to come off or do the CRAs automatically remove it when it hits the 6th anniversary date?

Defaults and the accounts they are associated with SHOULD drop off automatically. May take a week or 2 for the CRA to update and remove it.

Very occasionally, that doesn' t happen. Then you might have to give the CRA(s) a prod with a sharp stick.

[caspar]

Re: Credit report questions

I've seen many many many sets of defaults and account data simply vanish from peoples reports after the six years, leaving no trace. Even when the debt is still unpaid and payments are ongoing.

Hi Rizzle,

No I don't have the exact reference, I could probably look it up again, but DS knows me well enough to know if I say I got it from there, it came from there. I'm always happy to be proved wrong over this sort of thing!

Two questions - most important one first - how do I thank you for your posts, can't see any way of doing it at the moment?

Secondly, and more directly relevant to this issue, if I owe Joe Bloggs Ltd £10000 and I defaulted on it and it was recorded as a default on Jan 3rd 2005. I come to a payment arrangement with them and after 6 years the default drops off along with the previous 6 years. No problem.

However I still owe them £4000 under our payment arrangement which I keep paying as obviously it can't become SB as I'm acknowledging and making payments toward the debt. Are you saying that everything simply disappears from the credit record purely because 6 years has passed from the date of default? Do they have no right at all to record the fact that I still owe £4000 and am in a payment arrangement with them and paying it off?

[Riz]

Re: Credit report questions

Do they have no right at all to record the fact that I still owe £4000 and am in a payment arrangement with them and paying it off?

No right at all.

That is the way it works. I'm not saying it's fair, or even makes any form logical sense.

I'm the first to admit that the way credit account information is reported under the current system is in some cases nonsensical, or just outright absurd. As said, it's part of what sometimes makes it so hard to get your head round, You expect it to be logical and make sense, but it just doesn't much of the time.

By the way, the only source I can find for your quote via Google (or thisismoney's own search facility) is an entry on yahoo answers. A source of information that is renowned for being inaccurate more often than not.

[caspar]

Re: Credit report questions

Found the thanks button!

That does definitely seem strange. I can assure you I did not post from Yahoo answers - someone may have quoted the same bit on there. I'll see if I can find out the exact link for you and post it up.

If it's wrong it is irrelevant anyway, EXCEPT thisismoney is, as I'm sure you'd agree, a pretty reputable site and not known for misinformation. Maybe I've got it wrong, I am human, but I take great care over what I post as I'm well aware of the potential repercussions of posting wrong advice.

[Never-In-Doubt]

Re: Credit report questions

If you read any of the diaries you'll see it's no secret that I stipulate the entry "should" vanish in it's entirety whether paid or not. As rizzle confirms, dint read too much into what people tell you about cra's as a lot of people do talk shyte. A default or more formal action supersedes all other info so the logic is basic at best in that to get defaulted you must be in breach of contract, ie at least one payment late. So they then do the necessary and default you to which you say "sod off" and ignore them. For this example you last paid January 2000 and got defaulted May 2000.

6 years later, all the old payment history would drop off in the May (NOT the january as people believe)! with the default coming off in June. Now, as the default supersedes the late payments, at the point of default the late payment marker stops, being replaced with a red "D". That will always be the last entry. So as you can see, the account info would continue after the 6yr point as it'll continue to the last reference point which is the default in may. So by June the default and ALL account info would have dropped off. That said, presume you made small payments - the fact it's defaulted supersedes the late payment markers meaning they are never mentioned. Point is, once the default has expired nothing about that account can ever be added again as it's run it's default course so it's dead. You can only be defaulted once per account.

Rizzle is spot on, the above is a working example to clarify the fact what we're saying is factual.

[The Debt Star]

Re: Credit report questions

Bloddy interesting and informative info on here guys. well done. this sort of debate and sharing of information is exactly what these forums are all about. thx.

[jadex]

Re: Credit report questions

Secondly, and more directly relevant to this issue, if I owe Joe Bloggs Ltd £10000 and I defaulted on it and it was recorded as a default on Jan 3rd 2005. I come to a payment arrangement with them and after 6 years the default drops off along with the previous 6 years. No problem.

However I still owe them £4000 under our payment arrangement which I keep paying as obviously it can't become SB as I'm acknowledging and making payments toward the debt. Are you saying that everything simply disappears from the credit record purely because 6 years has passed from the date of default? Do they have no right at all to record the fact that I still owe £4000 and am in a payment arrangement with them and paying it off?

If I may add to the discussion, I think the missing point here is credit report has no legal meaning and is simply only a marketing tool.
People are worried too much about what is or is not there - if you are no going to apply for a credit or financial product then why bother?
Dropped default doesn't make one's account SB as payments have been made. So i believe, if you stop paying, lender can still get you to the court and obtain CCJ, Charging Order or make you a bankrupt regardless what your credit report is showing at that time.
Being liable and having it shown on credit report are 2 different (although related) beasts.
At least that's my understanding.

[The Debt Star]

Re: Credit report questions

Employers are starting to look at credit reports.
And landlords.
Soon you won't be able to buy a Mars Bar from Tescos without being credit searched.