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Unpaid defaults dissapearing after 6 years


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Hi Guys,

 

Hope you are all well, and I must say fantastic site, really great contributions! This is my first of hopefully many posts! :)

 

I have 4, unpaid defaults on my credit file that will become 6 years old in the next 12 months. As expected, I have a very low credit score because of this.

 

I was wondering if anyone had personal experience of defaults dissapearing from your credit files once they have reached their 6-year age. Taking my Call Credit file as an example, this shows that Lloyds TSB are reporting a default status every month still, hence "carrying" the default on. It is clear this would probably continue, with them marking it every month, until a time when I settled it.

 

Now, here's the issue: in 2006-2007 I was making some reduced payments to some of these accounts, however I since stopped doing this as was in financial difficulty. To confirm, since 2007 I have made no payments whatsoever towards these defaulted accounts.

 

I have just been declined a mortgage with one provider, and went through the credit file data with the Provider over the phone, and she pointed out that this decline was because of the defaults, no surprise to me really.

 

However, what I am now trying to understand is whether I could expect the defaults to come off my file in around 12 months time, since they will be 6 years old from the point of issue, OR if in fact I am looking at waiting 6 years from 2007, since this is the last time I made a payment to the said defaults. If this is the case, it would suggest I was better off not paying them a penny, since this contribution to the debt has actually extended the amount of time the default was on my credit file and as such significantly lowering my credit score for years further!

 

Has anyone had an unpaid default come off after 6 years? That they have been paying or not paying?

 

Any personal experiences highly appreciated!

 

Thanks! :)

 

Jut

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Jut, your defaults will drop off your file 6 years after default, so you'll have to wait another 12 months or so for it. I would suggest not trying to apply for another mortgage unless you bank with the provider and they can see your salary coming in over the last couple of years. (Your credit file will continue to show the default update, each month until it is removed.)

 

Also, I think you're getting the default and statute barred confused. If you haven't paid anything to a debt and not acknowledged it in 6 years, then the debt becomes statue barred and you cannot be chased for it.

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if they continue to report on the A/C

 

then that info will stay there until the A/C becomes statute barred [6yrs from last financial transaction]

 

the older stuff [as it becomes 6yrs old] will begin to go

but recent reports [within 6yrs] will remain till SB.

 

dx

please don't hit Quote...just type we know what we said earlier..

DCA's view debtors as suckers, marks and mugs

NO DCA has ANY legal powers whatsoever on ANY debt no matter what it's Type

and they

are NOT and can NEVER  be BAILIFFS. even if a debt has been to court..

If everyone stopped blindly paying DCA's Tomorrow, their industry would collapse overnight... 

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if they continue to report on the A/C

 

then that info will stay there until the A/C becomes statute barred [6yrs from last financial transaction]

 

the older stuff [as it becomes 6yrs old] will begin to go

but recent reports [within 6yrs] will remain till SB.

 

dx

 

 

Really? But, as these are reported as 'in default' how would they show up after the default is removed? I thought the whole file gets removed.

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Really? But, as these are reported as 'in default' how would they show up after the default is removed? I thought the whole file gets removed.

 

Thats exactly what I'm getting at - the original default will be 6 years old, however only last month they reported a D status on the account, dated August 2010...so this is a D with August 2010 next to it...

 

Will all of these default payment statuses dissapear when the default reaches 6 years old?

 

Thx

 

Jut

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i think you need to look at experian or an-other cra file to understand it really

credit call are a funny one.

 

i would suspect that the creditor is reporting something like missed or late or under agreed or no payment - markers

this they will do every month.

those that reach 6yrs from the date that they are put on - will 'drop-off' as they reach 6 yrs.

those that are not 6 yrs old will remain until they drop off.

 

ALL markers will go when the A/C reaches SB time which is 6yrs from your last financial transaction. - the account will vanish from you file - totally

 

HTH

 

dx

please don't hit Quote...just type we know what we said earlier..

DCA's view debtors as suckers, marks and mugs

NO DCA has ANY legal powers whatsoever on ANY debt no matter what it's Type

and they

are NOT and can NEVER  be BAILIFFS. even if a debt has been to court..

If everyone stopped blindly paying DCA's Tomorrow, their industry would collapse overnight... 

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  • 2 weeks later...

jut, the defaults will drop off 6 years after the default date regardless. just keep an eye on your file and on the 6 year date on the dot contact the cra and ask for it to be removed. its irrelevant to your credit file if you were to make a payment between now and the six years. all they can do is update the account balance, but it will still drop off 6 years after the account defaulted.

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Starting to agree with that. My crf is buggered because of three defaults, the last of which clears in 2013 - or I do settle them and suffer until 2017 (as Jan 2011 is the earliest I can pay them back). What to do?

 

I am in a stable relationship with my partner who wants to buy a house but even if I settle these accounts I will be blighted for 6 years...so it's darling let's wait until 2013 or 2016.

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hiro, the defaults will still drop off in 2013 even if you pay them off in January next year. trust me, i have settled several accounts a few years after they defaulted and they drop off 6 years after the default date. hopefully you and the god lady will have a mortgage come 2013!

Edited by craigers
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Thanks Craigers - that true then...to be honest this is the only reason I didn't want to settle them.

 

But like I have seen from others posts even when defaults are shown settled, they are still defaults when you go for other credit.

 

So if I contact the guys about the defaults they will let me pay the balances and clear the accounts? Given the one is Cabot and one is Roxburg - I am thinking the minute I say I want to clear the balance, they will shove **** loads of interest? Any takers on a fiver that's what they do?

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hiro, they can't add interest! and yes if you pay them off they will show as settled defaults, in other words its still a default. but they will drop off 6 years after the default date, ie 2013. if you're going to pay them off then may i suggest you offer payment only in return for the defaults being completely removed.

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so why don't they do that with arrangements to pay, that you stick to. if I had let it go to a default I would be in a better position now.

 

this is the thing. its totally wrong. its something i intend to press parliament about.

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  • 2 weeks later...

Can I clarify something? The defaults to not simply 'drop off'. Thewy REMAIN on file and will never be deleted.

 

THew difference is in when the data is accessed, information that becomes time limited will not be displayed to enquirers or appear in any credit reports - BUT will remain on file regardless for 'completeness'. This was explained to me that if the time period for display changes (say, to 10 years) they can imoplement this, and the old data can then magically return.

 

They make their money out of data - they're not going to chuck it away simply because they cannot display it.

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like the grammer and spell check buzby!

 

dx

please don't hit Quote...just type we know what we said earlier..

DCA's view debtors as suckers, marks and mugs

NO DCA has ANY legal powers whatsoever on ANY debt no matter what it's Type

and they

are NOT and can NEVER  be BAILIFFS. even if a debt has been to court..

If everyone stopped blindly paying DCA's Tomorrow, their industry would collapse overnight... 

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well at 3am that really confused me...i thought..urm

 

must be time for bed!

 

dx

please don't hit Quote...just type we know what we said earlier..

DCA's view debtors as suckers, marks and mugs

NO DCA has ANY legal powers whatsoever on ANY debt no matter what it's Type

and they

are NOT and can NEVER  be BAILIFFS. even if a debt has been to court..

If everyone stopped blindly paying DCA's Tomorrow, their industry would collapse overnight... 

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If the legal limit is 6 years, then to hold data for longer breaks the Data Protection Act i.e. the CR agencies would have to declare they retained that data on your file. I can ask them to remove the data if they are not legally obliged to keep it - which I would assume they are not.

 

The only incentive for me to clear these debts is so I can get credit at reasonable rates BUT...if the records remain as defaults - I still won't be able to get any credit so here's the catch:

 

Don't pay - can't get credit until they fall off in 2013

Pay - can't get credit because they still register as a default until they fall in 2013

 

I ask you...what to do in this rather strange predicament?

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If the legal limit is 6 years, then to hold data for longer breaks the Data Protection Act i.e. the CR agencies would have to declare they retained that data on your file. I can ask them to remove the data if they are not legally obliged to keep it - which I would assume they are not.

 

Nope. There's a LOT of information on your file which you will never see. Even with a SAR. The information will always remain, however it is FILTERED to match the prevailing requirements. TheY most certainly do not let it 'drop off' or erase it in any meaningful way. It will not show up in a search with a standard enquiry, however there are several levels of access (all justified regarding fraud prevention etc etc, spottingf trends and the like), can be made to reappear under the correct circumstances.

 

As to the circumstances you detail - I agree, why bother paying? If the 'cleared default' still acts as a blight, where is the incentive? I may be cynical, but you may not be the first to state that as you;ve not been taken to court, you fail to see any benefit in clearing the account if your file will be blighted in this way. If you receive an undertaking to remove the default in its ENTIRETY - which means removal, not updating of the status, you will be minded to clear outstanding amounts. The choice is theirs.

 

The moral argument in that you should pay what you owe is somewhat negated by them playing fast and loose with your data in this way. This, and the fact a default is treated like a CCJ, yet has none of the safeguards attached.

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  • 1 year later...

Hi,

 

Back again...no mortgage for me and my good lady, she has decided to get one with her sister - something about not being able to trust men..! Understandable really.

 

I can confirm that 6 years on, 2 of my accounts have 'disappeared' which leaves me with 3 outstanding. Everyone now and again I will get the odd random letter from a different company and I do feel a little guilty and my heart twangs with sadness. My question is...do these letters impact on the 6 years statute bar? I hope not, but if they do...I am screwed.

 

Hopefully I can make it to 2013 but I have a sense of forboding that in the last 12 months to come, things are going to change.

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well done

 

NO LETTER FROM THEM

can ever eset the SB date

 

the only thing that can is a court claim

 

dx

please don't hit Quote...just type we know what we said earlier..

DCA's view debtors as suckers, marks and mugs

NO DCA has ANY legal powers whatsoever on ANY debt no matter what it's Type

and they

are NOT and can NEVER  be BAILIFFS. even if a debt has been to court..

If everyone stopped blindly paying DCA's Tomorrow, their industry would collapse overnight... 

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Only you acknowledging the debts in writing

or making a payment can restart the 6 year

clock.

Any Letters I Draft are N0T approved by CAG and no personal liability is accepted.

Please Consider making a donation to keep this site running!

Nemo Mortalium Omnibus Horis Sapit: Animo et Fide:

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