MBNA Default still showing despite partial payment to DCA. Hillesden

[brando69]

Hello I hope someone can help please.

i am trying to help a friend of the family who is not well.

basically he has applied for. Remortgage but turned down, on both Experian & Equifax credit files is an entry from Hillesden Securities

default date 30/09/2011
default balance £19313
updated 07/10/2013
Current Status : Default
MBNA Debt assigned to CAIS member
start date 01/12/2011

he told me he settled full & final with Hillesden for £3,000 but he doesn't have an written paperwork, the trouble is the data on both CRA's does not show settled, partial settlement, part satisfied/satisfied, what ever the correct wording should be.

is there something that can be done to get Hillesden to change the entry (assuming it's them and not MBNA? To improve the situation?

if so what would be the best way to try and get this entry changed as it must have affected the mortgage lenders decision, although the Experian credit score is 999,not sure of Equifax score.

obviously the default will drop off 09/2017 but he wants to remortgage now before the existing mortgage expires later this year.

is it better to ask the CRA's to approach Hillesden/MBNA?

thanks in advance.

Brando

[Never-In-Doubt]

Re: MBNA Default still showing despite partial payment to DCA. Hillesden

Hi

Sadly your mate should have agreed the DN removal prior to settling. You can't get rid of a settled default - certainly not now.

Bummer.

Any default will prohibit a mortgage end of. Your mate must wait 6yrs from default date (Oct 2017)

[brando69]

Re: MBNA Default still showing despite partial payment to DCA. Hillesden

Thanks Niddy but understand cannot get rid of the default but if he has made a settlement can't the status be updated to show account status partial settlement or even settled and sum default sum to 0 ? Was hoping he could get Hillesden to change the status as a minimum!

[Never-In-Doubt]

Re: MBNA Default still showing despite partial payment to DCA. Hillesden

Settled won't matter. The status of a D has no effect. The fact a "D" shows is affecting your mate.

If if it still shows as owing tell your mate to contact the creditor to correct it as satisfied (not settled) but that won't help them obtain a mortgage sadly.

The default sum can't change. They did default at that amount / all you can do is ask for it to read settled with balance owing as £0

[IF]

Re: MBNA Default still showing despite partial payment to DCA. Hillesden

brando69, I've moved your thread to the Defaults Section

Best wishes
IF

[brando69]

Re: MBNA Default still showing despite partial payment to DCA. Hillesden

If they make contact with MBNA or Hillesden, are they in danger of not letting sleeping dogs lie? Just wondering the default drops off their file in 2017 so not long to go, if they contact them can they cause an activation of this debt again or is that unlikely? Thoughts please Sir!

[Never-In-Doubt]

Re: MBNA Default still showing despite partial payment to DCA. Hillesden

No. The debt is now settled. It cannot come back to life as its paid off / settled / closed.

[brando69]

Re: MBNA Default still showing despite partial payment to DCA. Hillesden

My only worry is they said they sent £2500 in settlement but they had no written confirmation from MBNA or Hillesden, on the credit file it just shows as a payment then numbers going up each month until default. This was in 2011 though and since then they said they have heard nothing further from MBNA or Hillesden , so that was my concern, if they make contact and just ask if the status can be changed to partial settlement, could it result in them coming after for the balance saying that the payment was just towards the debt and they have no records of any agreement that the £2500 was in full & final settlement. Also the amount seems low for a full & final for a debt of £19k?

[Pixie]

Re: MBNA Default still showing despite partial payment to DCA. Hillesden

It does seem very low for a debt of £19K. It seems to me like they've taken it as a payment rather than a settlement and without any paperwork your friend would find it difficult to prove otherwise.

[brando69]

Re: MBNA Default still showing despite partial payment to DCA. Hillesden

That's my thinking and if they rang them up it could open the whole can up again but there again neither MBNA or Hillesden have been in touch with them for years.

I guess if they wanted to be difficult they could still come after the debt if my friend calls them up just to try and get them to change the status to partially settled, they could just say no and btw thanks for calling you actually owe us £XXXX. Was thinking just to tell them to wait until the default drops off for good !

[cymruambyth]

Re: MBNA Default still showing despite partial payment to DCA. Hillesden

I would recommend your friend keeps quiet, though they should be prepared for a flurry of activity in the year before it becomes statute barred.

[Undercover Elsa]

Re: MBNA Default still showing despite partial payment to DCA. Hillesden

I agree. As Niddy says, showing it as settled won't make much difference while the default still shows. I would let sleeping dogs lie.

Elsa x

[PlanB]

Re: MBNA Default still showing despite partial payment to DCA. Hillesden

i am trying to help a friend of the family who is not well.

basically he has applied for. Remortgage but turned down

. . . . he wants to remortgage now before the existing mortgage expires later this year.

You say your friend has been turned down for a remortgage. What reason was given for the rejection? If the application was being dealt with by a broker then normally the underwriters would give a full and frank reason and sometimes reconsider if the problem can be tidied up.

Are you speculating that the default on the CRA file is the reason or could it be anything to do with your friend's current financial situation? Since the MMR was introduced it has been difficult to obtain a mortgage or a remortgage. Is your friend in work despite their illness?

You say that their current mortgage is due to expire this year. It may be possible to ask for an extension to the mortgage term with the current lender (to keep the existing loan up-and-running until the default drops off in 2017) but I'd need to know more details before I can suggest options for them to consider.

Plan B x