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  • When will my default be removed?

    I've done a lot of reading but can't quite get my head around when a default on my file will be removed.

    I dealt with my debt problems some years ago (thankfully) - the default in question was for a student loan (current) account with the Halifax that I was disputing (bank charges) with them. I hit a brick wall (they refused to refund £600 in charges) and ended up settling the account as you can see from my credit file.


    edit: I'm not even 100% sure that the following IS a 'default'? There is nothing listed against 'default date' so I'm not sure if this is just the way it is displaying within equifax.


    As you can see the original default date was July 2007,and I entered repayments over the years following (from £10 to £80 pounds per month, taking the total from around £1600 to about £600 which I paid off in a lump sum) but I settled the account (in full) in August 2010 after months of sending letters to the bank and getting no-where (lost the will for the fight and gained a pathological hatred for banks).

    Will this be removed from my account 6 years after the initial date I defaulted - or the date the account was settled. If the former then I can deal with waiting another 6 years (July 2007 / July 2013) - but the later would be a real nightmare for me as this is the only thing preventing me from having a good credit history, and I'd have to wait another 3 years!

    If the later then I don't hold out much hope getting them to remove it - but would probably attempt to anyway. Should I try to appeal to emotion or go straight into a legal route (asking for written confirmation of the original default documentation)?

    Any advice appreciated. While I have been able to get some forms of credit, I can never apply with confidence and have just been rejected for two loans in a row, and figure I'd like to sort this out if possible.

    Thanks
    Last edited by brodiebrah; 2 December 2012, 15:01. Reason: change months to years typo

  • #2
    Re: When will my default be removed?

    Hi

    The above is not a default, it is settled and it is basic account conduct history and will remain for a 6 year rolling period.... so easiest way to describe it, this will stay on your credit file until August 2016 (+6 years from Settled date).

    However the history itself won't cause that much harm, based on the fact it's settled and the entries are at least 2 years old. In July 2013, once the most recent late payment is 3 years old, you'll then be fine as most lenders disregard payment info that is 3+ years old (think about all those lenders that ask for address history for the last 3 years....)

    If you're getting declined a lot, consider the volume of searches and/or other factors such as available credit and/or existing credit.

    Make sense..?
    I'm the forum administrator and I look after the theme & features, our volunteers & users and also look after any complaints or Data Protection queries that pass through the forum or main website. I am extremely busy so if you do contact me or need a reply to a forum post then use the email or PM features offered because I do miss things and get tied up for days at a time!

    If you spot any spammers, AE's, abusive or libellous posts or anything else that just doesn't feel right then please report them to me as soon as you spot them at: webmaster@all-about-debt.co.uk

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    • #3
      Re: When will my default be removed?

      Thanks.

      Well - I've just been declined for a zopa loan, AND a sainsburys loan - before even being offered a quotation (so declined immediately). And Equifax flag this aspect of my credit history with a red box marked 'WARNING' - which made me think it was a default...



      In terms of existing credit I have a small mortgage and two credit cards (£2300 and £1200 limits - of which I only ever use about 200 p/m (pay off immediately - fuel)). One of the cards I've never even used. I appreciate that having a large amount of unused available credit is not always desirable - but in comparison to the loan I've been trying to secure (15k), I didn't think it would be significant.

      In terms of volume of attempts - I'm unsure of the difference between 'credit search' and other types of search...



      I'm guessing that maybe these loan companies are only offering credit to people with flawless credit histories which obviously I don't have - but I don't think it's too bad really. What really made me mad was that after rejection - Sainsbury finance passed my details onto a subprime lender who phoned me the day after the application to try and sell me a loan (I'm considering complaining but it's probably buried in their t's & c's that they can do this)

      Is there anywhere where I can gauge which type of lender I should apply to next? I don't want to ruin my credit history by applying for loans that I'm unlikely to get (those with the very lowest interest rates). But I'm not going to get into the trap of taking a loan from a subprime lender.

      To illustrate the difference - Zopa at ~6.8% APR I'd pay about £1300 over the course of the three year loan, Freedom Finance ~18% APR ~£4000 over the course of the loan

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      • #4
        Re: When will my default be removed?

        The above suggests only one search to O2. That's good.

        As I say, you need to wait till after July (+3 years from last late payment)... then you should be fine.
        I'm the forum administrator and I look after the theme & features, our volunteers & users and also look after any complaints or Data Protection queries that pass through the forum or main website. I am extremely busy so if you do contact me or need a reply to a forum post then use the email or PM features offered because I do miss things and get tied up for days at a time!

        If you spot any spammers, AE's, abusive or libellous posts or anything else that just doesn't feel right then please report them to me as soon as you spot them at: webmaster@all-about-debt.co.uk

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        • #5
          Re: When will my default be removed?

          Thanks for your help. Having read alot of threads on the rest of the forum I can see that this thread is now slightly off topic given the main point here is to STOP people getting into more debt and helping people with severe financial hardship rather than encouraging them to get into more, so I'll leave it at that.

          Looks like you are doing a wonderful job though in helping people out. Kudos.

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          • #6
            Re: When will my default be removed?

            Haha - it's fine, we also help people get back onto the credit ladder AFTER debt or for the first time...

            We just specialise in the reverse, but we have a lot of knowledge so cover various elements. You'll be fine after July, most lenders only search 3 years.
            I'm the forum administrator and I look after the theme & features, our volunteers & users and also look after any complaints or Data Protection queries that pass through the forum or main website. I am extremely busy so if you do contact me or need a reply to a forum post then use the email or PM features offered because I do miss things and get tied up for days at a time!

            If you spot any spammers, AE's, abusive or libellous posts or anything else that just doesn't feel right then please report them to me as soon as you spot them at: webmaster@all-about-debt.co.uk

            Comment

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