Removing a default marker? old Barclays Loan

[billy_79]

My partner had a loan with Barclays years ago.

 

It went into default in March 2008 (after we tried and failed to negotiate a payment plan with them).

 

Default balance was just over £2000,

 

and we agreed and paid a full and final settlement amount of £1000 in August 2008.

 

This was on the grounds that they marked the loan as fully satisfied against her credit records, which it appears to have been.

 

But the default marker from March 2008 still remains on there.

 

It hasn't been an issue, until now - we are starting to apply for mortgages

and rechecking her credit history flags this default as a serious issue.

 

It's due to hit the 6 year expiry next March,

so presumably it'll be irrelevant after then,

but is there anything we can do about it in the meantime?

[dx100uk]

not really no.

 

this is the problem with not demanding ALL negative data is removed.

they short settled because there prob PENALY charges &/or PPI on it to reclaim.

 

did you ever get all the statements?

 

dx

[slick132]

Hi Billy,

 

If you have your old statements, you must check to see how much of the a/c balance was penalty charges. If you don't have the statements, send the bank a SAR now.

 

If you make a reclaim for penalty charges and include compound restitutionary interest, the bank may (reasonably) say they will use the refund to set off against the amount that was written off. You would still be entitled to any refund in excess of the amount written off.

 

However, if you are stubborn and focused, you have a chance of arguing successfully that the Default Notice balance included unlawful penalties, and it should therefore be removed.

 

This is more likely to succeed if you take court action for the refund of penalties.

 

On a general note, you can take various steps to improve your credit rating, eg using your credit card for purchases and clearing the balance each month.