Default removal

[Steve1212]

Good afternoon, I have done quite a lot of reading but am still a little confused of what steps to take with regards my issue.
Im seeking some advice on the possible removal of some default issues from my credit file.

My situation is as follows:
16 mounth ago i entered in to a DMP when all apart from 2 of my creditors agreed to a reduced monthly payment, 6 months later i revised my offer and all my creditors agreed to the payment, since then 3 of the creditors has issed defaults on my credit file two of whom have sold the debt on to a recovery agency who have also issued me with defualts.

I am now in the position where i would be able to settle all of my debts in full (as explained to the crediters it was a temporary financial issue).
So i suppose my question is, If i settle all my debts in full is there much chance of of getting the defaults removed? if not would i be better to settle the debts through the DMP as the defaults would remain anyways?

Thanks for your hlp
Steve

[swanfan]

Re: Default removal

Whether you settle the accounts or not the defaults will remain for 6 years from the default date.

[Steve1212]

Re: Default removal

Thanks for the response, after reading various forums i thought that might be the case just wasnt sure if there was any room for negotions with creditors.
Oh well only another 5 years to go
Cheers
Steve

[SXGuy]

Re: Default removal

you say you have been defaulted a few times for the same account? did you ever pay the arrears before the date on the default notices at any of those times?

As far as i understand it, you can only default once, but defaulting i mean, not repaying the arrears before the date specified.

If this is the case, check your Credit file, and see which default has been listed, i would argue that they correct the error to reflect the first original default date, and then it will be off your credit report sooner.

[Riz]

Re: Default removal

Assuming the defaults are correctly registered, then:

You can try to negotiate, but 99 times out of 100 (or more) you will be flat refused.

There is a slightly increased chance if the debt and credit file entry has been passed over/sold to a debt collector, but even then agreement to remove the default if it was originally correct is exceptionally rare.

[Steve1212]

Re: Default removal

The original default was put on there by MBNA, they then sold the debt to Paragon in january this year (i had an agrrement with MBNA which as carried over to paragon).
The default with MBNA is showing as satisfied and the balance is now showing on paragons default never the less there are 2 defaults for one agreement, the date for both these defaults are the same.

Does anyone know if there is a template available to offer to pay the balance for the removal.. it is still quite a substantial amount.

Cheers Guys

[Deepie]

Re: Default removal

The original default was put on there by MBNA, they then sold the debt to Paragon in january this year (i had an agrrement with MBNA which as carried over to paragon).
The default with MBNA is showing as satisfied and the balance is now showing on paragons default never the less there are 2 defaults for one agreement, the date for both these defaults are the same.

Does anyone know if there is a template available to offer to pay the balance for the removal.. it is still quite a substantial amount.

Cheers Guys

Try this-------> F&F Offer in Exchange for Default Removal Template

[Steve1212]

Re: Default removal

Thanks for your help ill let you know ow i get on.

just one more query, im a little confused as to the debt that was sold to the debt agency, this is now showing as a satisfied default with MBNA and a current defualt with paragon in theory 2 defaults for one debt, if i did agree to settle with paragon is there anything i can do with the default that is still showing with MBNA?

Steve

[swanfan]

Re: Default removal

just one more query, im a little confused as to the debt that was sold to the debt agency, this is now showing as a satisfied default with MBNA and a current defualt with paragon in theory 2 defaults for one debt, if i did agree to settle with paragon is there anything i can do with the default that is still showing with MBNA?

Steve

That's cos the dca has taken over the account replacing their name as the owner with mbna. The original default date should remain the same, there can only be 1 default per account.

[Steve1212]

Re: Default removal

Thanks i will get in touch with experian i register the error as at the moment it is showing as two entries.

Ill let you know the outcome.

Regards
Steve

[SXGuy]

Re: Default removal

Just dont add any comments to your credit file if experian refuse to do anything, comments will hinder any credit acceptance upon search.

experian will likely advise you to contact the creditor who placed the default.

[Steve1212]

Re: Default removal

Well i contacted experian and was surprised at there fast respose, as the auto reply said it could take upto 2 weeks.
Anyway this was my reply.

Thank you for your email, which we received on 21 March 2012.

YOUR QUERY:

- Default Accounts

SUMMARY:

The entry recorded by MBNA shows the name of the company that the debt was originally owed to. The second entries recorded by IDEM and Moorgate shows that the debt has now been sold to another company to collect.

Although the debt is now being recorded twice, only the entry recorded by the debt collection agency will have an effect on your credit rating.

Both entries will be retained on your credit report for six years from the default date.

Kind regards

Sreekala Rajamma
Customer Service Representative
Customer Support Centre
Experian

not sure this is correct as i spoke to IDEM and even they where saying the MBNA default should have just been replaced.

[swanfan]

Re: Default removal

While it's a pita but you already have other defaults on your file. Pointless attempting to get this particular one removed as 3 defaults would be viewed the same as 1 iyswim?

[Never-In-Doubt]

Re: Default removal

The entry recorded by MBNA shows the name of the company that the debt was originally owed to. The second entries recorded by IDEM and Moorgate shows that the debt has now been sold to another company to collect.

Although the debt is now being recorded twice, only the entry recorded by the debt collection agency will have an effect on your credit rating.

Both entries will be retained on your credit report for six years from the default date.

Utter bollocks - can you confirm is the first entry marked settled then (ie the original creditor) with the default sitting on the DCA entry?

Is the default date the same?

Come back to me, then i'll sort you a response.... ideally, screen print both entries and email agreements@all-about-debt.co.uk and let me take a peek.....

Thanks

[Never-In-Doubt]

Re: Default removal

Pointless attempting to get this particular one removed as 3 defaults would be viewed the same as 1 iyswim?

correct......