Removal of a Default

[Chrisdickson87]

Hi, this has probably been asked a hundred time before but i just need clarification.

 

I know that i defualt drops of your credit file after 6years but is that 6 years from the defualt date or 6 years from last payment.

 

For instance i have a thing on my credit file that stopped getting payments in early 2006 but it says date of default 2007. So when should this drop of my file.

 

Thanks

Chris

[silverfox1961]

Hi

Technically it should fall off 6 years after the default was placed NOT from last payment

[Guest]

a default on cra should be re the actual date of the default, and not the date of posting it up with a cra.

Edited February 11, 2012 by Ford

[BRIGADIER2JCS]

I've not seen many that are not the actual

default date, but I have seen confusion caused

by misreading the entry when a file has been

updated by a DCA when they aquire an account.

[DBY]

Hi, this has probably been asked a hundred time before but i just need clarification.

 

I know that i defualt drops of your credit file after 6years but is that 6 years from the defualt date or 6 years from last payment.

 

For instance i have a thing on my credit file that stopped getting payments in early 2006 but it says date of default 2007. So when should this drop of my file.

 

Thanks

Chris

 

Hi Chris - I asked the same question some tine ago following 2 defaults issued against me in 2008 for debts I hadnt paid since 2005.

The answer I believe, is that the default remains on your account for 6 years from the date of issue. However creditors and DCA's sometimes work outside of what is considered fair (as in my case) and may report a default quite some time after you made you last payment.

If this is the case then this is what I would recommend doing.

 

1. SAR the original creditor and establish the last payment date in order to calculate the SB date.

2. When the debt is SB'd fire off a SB's letter to the OC/ DCA.

3. When the OC/ DCA confirms debt SB'd write back and request all data in relation to this debt is removed from your CRF, cc in CRA.

4. If they refuse then you can threaten them with Court Action and certainly report them to the ICO.

[BRIGADIER2JCS]

The Guidance states that the placing of

a default entry should be ''timely'' and

usually within six months of the cause

of action.

If the ''life ''of the default runs on after

rhge SB date the default entry can remain

for the rest of the six years, some dcas or

creditors may agree to remove the entry

earlier but theey are no obliged to do so.

[DBY]

The Guidance states that the placing of

a default entry should be ''timely'' and

usually within six months of the cause

of action.

If the ''life ''of the default runs on after

rhge SB date the default entry can remain

for the rest of the six years, some dcas or

creditors may agree to remove the entry

earlier but theey are no obliged to do so.

 

so youre saying then that a DCA can register a default 5 years and 10 months after you stopped paying, and that default can remin on your CRF for a further 6 years causing you all sorts of issues, even though the Debt is SB'd and the DCA does not have to do anything about it?

I was under the impression that once a debt becomes SB'd you can request all information on that debt to be removed from your CRF.

[BRIGADIER2JCS]

Being sensible about this if any creditor

attempted to register a default in that

way it would under the guidance be unfair.

The point I am making is that if for example

a defaulted debt becomes SB 2-4 months

before the default entry date the entry can

and very often does.

Always remember that a debt that is SB is

not completely extinguished it still exists

in England and Wales and can be subject

to collection activity until the debtor informs

the creditor that the debt is stat barred and

they will not be paying.

Many debtors who do not regularly check

their CRA files are caught out and end up

paying for an SB debt, which is just giving

the creditor a nice little earner that the debtor

can not get back.

[DBY]

Being sensible about this if any creditor

attempted to register a default in that

way it would under the guidance be unfair.

The point I am making is that if for example

a defaulted debt becomes SB 2-4 months

before the default entry date the entry can

and very often does.

Always remember that a debt that is SB is

not completely extinguished it still exists

in England and Wales and can be subject

to collection activity until the debtor informs

the creditor that the debt is stat barred and

they will not be paying.

Many debtors who do not regularly check

their CRA files are caught out and end up

paying for an SB debt, which is just giving

the creditor a nice little earner that the debtor

can not get back.

 

So in the case where a DCA or OC defaults after a year+ since the last payment, would that be deemed fair and what action could you take once its SB's but the default remains on your CRF file?

[BRIGADIER2JCS]

Often defaults are placed later thhan 6 months

by some creditors they have a live account on

their books then for business reasons they will

default and sell or assign the account.

SB makes no difference to the life of the deafult

some companies will take the view that the default

stays others if approached may agree to remove the entry

as said they have no obligation to do so.

[DBY]

Often defaults are placed later thhan 6 months

by some creditors they have a live account on

their books then for business reasons they will

default and sell or assign the account.

SB makes no difference to the life of the deafult

some companies will take the view that the default

stays others if approached may agree to remove the entry

as said they have no obligation to do so.

 

so in my case, a creditor decided to default after 4 and 5 years respectively - I now have to live with a default on my CRF 4 and 5 years after the debt became SB'd, and the creditor is not obliged to remove them. So nothing I can do?

[silverfox1961]

What should happen is that the creditor should default within 6 months of the first missed/token payment. If they fail to do so you have grounds for complaint

[BRIGADIER2JCS]

Correct SF, you can complain of unfaireness

but there is no legislation relevant only ''Guidance''.

[DBY]

Ok so even if the debt is SB's that has zero relevance? Seems a bit one sided - so you can complain but what does that mean in reality?

[silverfox1961]

Correct SF, you can complain of unfaireness

but there is no legislation relevant only ''Guidance''.

 

Totally agree. I do wonder if the ICO (on whose guidance we use) care very much what happens

[BRIGADIER2JCS]

As said before the path is to make a complaint

stating that the debt is SB and request that

the entry is removed.

You can report it to the OFT,they will file it away

for future reference.

On wonders why your creditors have waited so

long to default, and what type of accounts these

are.

If these debts are SB have you informed the creditors

as said above.

[BRIGADIER2JCS]

It means if you don't complain and request

removal you will stay exactly where you are

with anSB debt still showing as defaulted.

[Guest]

.

but there is no legislation relevant only ''Guidance''.

 

the bankers Lending Code refers to the use of the ico 'guidance' re default practice. so, they should follow the guidance. if the guidance has not been followed, then worthy of a complaint. they are more likely to follow the guide than not. the more they don't follow their own codes, the more chance there is of further statutory regulation. which they don't want. and the ico has legislative power under s159 cca for eg to make an order re incorrect default info. non compliance of which is an offence.

Edited February 14, 2012 by Ford