What happens after six years from default?

[Johnp]

Well my credit file was totally wrecked by the banks in 2009/2010 after my wife was made redundant. We started a dmp but we got about eight defaults with various banks between us with a total balance of 25000.

I believe the debt falls off the credit file after six years but the banks will still be after continued payments for the money we owe. I believe all of the debts are enforceable so our plan is to keep paying £100 a month off these debts.

My question is what is the point of doing a f&f settlement if we have been defaulted anyway? If I did a f&f settlement tomorrow my understanding is that this will show on my credit file for a further six years!!

Surely we are better to leave doing a f&f till the debts drop off our credit file so they can't fuck up our credit rating any further!! By then most of the debts will be sold on so we can negotiate a bit.

[Never-In-Doubt]

Re: What happens after six years from default?

You got it. Why bother?

The defaults will drop off after 6yrs and they cannot then report against that same account again (as the default takes precedence over repayment AP markers)...

Just make sure you were defaulted and not left with many years of AP markers (due to paying £100pm)...

[SA Gold]

Re: What happens after six years from default?

Hi John,
Welcome to AAD!
As you say, the credit file is washed every six years; good and bad credit in your name is no longer present and therefore searchable when you apply for credit.
You say you believe your current agreements are enforceable - have you had this checked out mate? Have you asked for a copy of the agreement?
Enforceable, unenforceable, either way you are in safe hands here.
Cheers
Missy

[Never-In-Doubt]

Re: What happens after six years from default?

ps if you did a F&F tomorrow no. It'd not add another 6 years. I'm presuming you have already been defaulted? If so then no other marker can appear now. If you made a f&f the status would show satisfied/settled but the actual D (default) will stay until the end if the 6 year anniversary that it was added. Then it'll drop off forever.

If there's a balance at this point or not - it doesn't matter. There cannot be a new CRA entry created.

[Johnp]

Re: What happens after six years from default?

Thanks for the welcome guys really appreciate it and love the site - we are going to fight the b£stard banks all the way with a 10% f&f offer once the defaults fall off! Can they apply for a ccj on the debt after the six years is up or must they apply for a ccj within six years of the default? I assume they could apply for a ccj even if the debt has dropped off my credit file otherwise everyone would just stop paying them once the default drops off!

Thanks for your point re: ap markers. One of the accounts is with little woods with a £75 balance so ill see if I can come to some arrangement with them to settle it sooner rather than later otherwise it will continue to cause us problems. I am going to challenge one of the default dates with m and s money - it was put on my credit file about a year later than it should have been ( looks like they did it when they sold the debts on). My tactic is to fight this one as they didn't default me until 2011

[Never-In-Doubt]

Re: What happens after six years from default?

You need to differentiate a default in line with s.87/88 CCA - which can lead to a CCJ and a simple entry on a credit agency.

They're totally different. You can be taken to court at any point there's a debt outstanding. Forget the CRA at this point. It's separate and unlinked.

If you're paying they won't necessarily sell it. You might be best stopping payments then do a F&F after it goes to a dca that's not being paid £100pm by you. Just a thought like. If you want rid once and for all.

[Johnp]

Re: What happens after six years from default?

Gotcha but I was concerned doing a F&F settlement now would mean the six year wait before credit is repaired would start from today but it appears from your post I'm wrong! Some of the debts have been sold on so I might try them first with a ridiculously low offer an see what they do. I'll keep you all updated as to how I get on.

[Never-In-Doubt]

Re: What happens after six years from default?

Have a read at my stickies (top posts) here --> Credit Reference Agencies - allaboutFORUMS

Specifically this --> All About Credit Reference Agencies CIFAS - allaboutFORUMS

[Johnp]

Re: What happens after six years from default?

Well m and s credit card are at least going to look into their dodgy default date which was applied at least a year later than it should have been. Fingers crossed but if it was done incorrectly I will ask them to remove it or report them to the information commissioner. These banks are a bunch of sh@tehawkes!

[Never-In-Doubt]

Re: What happens after six years from default?

Doubt you'll get anywhere as there is only guidance on issuing defaults with CRA's. that means its not legislative; it's ONLY guidance. Most banks ignore it. HSBC added mine after 5 years. FOS found in their favour

It stinks

[Johnp]

Re: What happens after six years from default?

Well I think I've got half a chance as my wife's m and s card was defaulted a year earlier despite the lender being treated exactly the same as we jointly entered the dmp at the same time. Am sure FOS must have a fairness test - why should I be penalised more than my wife plus I am sure we weren't issued with the default notice. Unlucky about HSBC these bankers are f@ckwits!!

[helmsman]

Re: What happens after six years from default?

Well I think I've got half a chance as my wife's m and s card was defaulted a year earlier despite the lender being treated exactly the same as we jointly entered the dmp at the same time. Am sure FOS must have a fairness test - why should I be penalised more than my wife plus I am sure we weren't issued with the default notice. Unlucky about HSBC these bankers are f@ckwits!!

So are the FOS.

[Johnp]

Re: What happens after six years from default?

Haha true I will let you know how I get on - I am hoping they will accept I have a point about them being consistent and fair with me compared to my wife..... But what do I know!

[Johnp]

Re: What happens after six years from default?

Well the journey well and truly begins. M&S accept receipt of my letter re:default date being incorrect. Ive also written to a store card company who didnt default the account and have instead hit me with a load of AP markers. I want this nightmare to be all over in 2015 rather than six years from the date the AP marker finishes. Just offered them F&F settlement of the full £74.00 balance otherwise I will pay them £5 a month for the next year and a bit!

Todays motto is 'IF YOU DONT ASK YOU DONT GET!!'

[Never-In-Doubt]

Re: What happens after six years from default?

They cannot add AP markers if there was no formal agreement in place. The ICO would take them to task for that so argue this and ask them for the piece of legislation they rely on because its news to you (and the ICO) that allows a firm to add a totally irrelevant marker against a data subjects credit report.

You'll find they'll add a default after 6 months (allowing status 1-6) or they'll add late payment marker [1]'s to the record (which you can also argue to the ICO).

So write back and argue the AP's is incorrect and not factual. Unless of course you DID have a monthly agreement ??