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Default date vs Settlement date


Intrigued
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Hi,

 

Can anyone confirm this is correct or incorrect?.

 

Default on credit file dated 01/04/2004 - This would be removed 01/04/2010.

 

BUT

 

If the default was settled on say 01/05/2009 - The default would stay on the file until 01/05/2015.

 

 

If this is how it works, why bother to try and settle the account?, you may as well carry on paying a token amount until it drops off your credit file on 01/04/2010. :confused::confused:

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Intigues, where did u get the above info from regarding default and settlement date, I noticed there were quite a few people on here stating there default never dropped off their CRF after 6 years, but rather it dropped off 6 years after the account was settled.... however, if you look at my thread in this forum titled statement from equifax regarding credit filees, they state otherwise....

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From what I've been told by checkmyfile, if you default it's 6 years from that date. If you don't default but fall behind on payments then later close or settle the account it's 6 years from the closure date.

 

Completely nonsensical practice in my opinion!

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It is confusing and totally unfair.

 

This is how it works.

 

My Example:

 

In 2003 I lost my job and fell behind with mortgage payments, 6 in total came to an arrangement and got up to date. I closed the account (new provider) in 2005. If I look at my credit score it reads…1 account in serious arrears… And this relates to those late payments back in 2003. This wont be removed until 2011 6 years after the account was closed. Which means the data is visible for 8 years in my case.

 

When I questioned the wording on my file, they told me that 1 account was in serious on my file regardless of when.

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This was the reply:

 

Hi xxxxx

 

Thanks for your message.

 

The account history of an account does go back 6 years, so for example information for an account closed in 2005 would go back to 1999. However a settled account remains on a report for 6 years so feasibly there could be information going back up to 11 years on your file. Whether a lender takes information this old this into account is entirely at their discretion but it will be picked up on any automated search.

 

The reason it is 6 years is because this is what lenders agreed the time limit should be when they first came together to share information with the credit reporting agencies.

 

Regards

 

xxx

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Very similar to the message I got. Several expletives best described my reaction to that! And it is completely unfair, they are punishing you (and me) more than someone who just defaulted on their account!

 

I fell behind on a few mobile phone payments, but because I didn't know how the system worked, I switched companies a few years later and am now stuck with that bad credit history for a lot longer than 6 years!

 

Is there no law or regulations that governs any of this?

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What you must remember is that the credit reference agency, works together with companies that supply credit, if your score is low they can charge you more for the credit they give, so if you have a good history now, however if you have a lower score due to something that happened 11years ago, they get more for the credit, even when the true risk is lower..

 

Then who do you complain to? The FOS, Pointless by the time they get round to even looking at the case. You will have served the 6 years!!!!!!

 

The Information Commissionaire, You would have more chance of finding an Honest BANKER.

 

Do I sound a little cynical?

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I feel what u guys are going through I take it you simply had late payments on your account and not defaults, I currently have 4 defaults which will drop off after 6 years, however, I have accounts which I have no defaults registered with yet have late payments upto 6 months with 11 creditors....... so im in the same boat, whereby the accounts with no default will be available for everyone to see upto 6 years after I settle these accounts!

 

Who said having a default is ALL bad!

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Thanks all for the information.

 

It very much sounds to me that if you have any accounts with a previous less than pefect record, you would be wise to keep the account open with a £0 balance until the newer data forces the poor data off the end of the record, then close it.

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