CRA Reporting

[Chipmeister]

Afternoon all,

 

I still have 2 defaults showing on my credit reports,

the other 2 have dropped off having passed the 6 years.

I still continue to service these debts and three out of four have been sold on with my knowledge.

 

One of the debts that was sold on is now marked as settled

as presumably the purchaser of the debt made the necessary arrangement to settle it in full (or most likely buy it for peanuts).

This debt appears in the settled section of my credit report with a nil balance, and shows the default date of 31 March 2010.

 

Had the debt not been sold I would have expected it to vanish from my active record after 31 March 2016

but presumably now it will sit on my settled record for a further 6 years from the date of the settlement by the purchaser.

 

The purchasers of this debt now have it on my current active record under their name,

but with identical details (other than their references),

including the balance that would have been due had they not purchased the debt

and the same default date of 31 March 2010.

No other date (i.e. the date they purchased it) shows on the credit report.

 

I have an arrangement to pay this debt off in place but 31 March 2016 will come round

and I will still have 9 further installments to pay to clear the debt completely.

 

Firstly, will the purchased debt still be erased from my current active credit record on 31 March 2016?

 

Secondly, when I finally pay it all off after the 6 years will the record be re-instated to show that settlement has been made of the full amount,

meaning that effectively, although I've paid the debt off in full

the rotten thing will still be staring me in the face for another 6 years?

This concerns me as even though the debt would show as paid potential viewers of my record would still see the initial default on the main part of my record.

 

Not, I hasten to add, that I am in a hurry to ever obtain credit again, but there's a principle here.

 

I really hope this makes sense and isn't too wittery. Any thoughts gratefully received!

 

All the best,

 

Chipmeister

[citizenB]

The new owner of the debt cannot simply change the original Default date and can only update it.

 

So the answer to your question is - that the record should cease on the 6th birthday after default (by the original creditor)

 

We have seen that where someone has entered into an arrangement to pay and this is being recorded on their files, that the recording will continue for far longer. I don't know what the answer to that is and it is very unfair.

[Chipmeister]

Thanks CB. That is re-assuring - and interesting. I have an agreement to pay in this instance and I can see the balance outstanding decrease each month, but I felt that it was somewhat unfair that the agreement isn't shown on the Credit Report and each month passes by with an added DF. That said, I am clearly better off than those who do have their agreement reflected which really is unfair.

 

Many thanks again for coming to my aid!

 

All the best,

 

Chipmeister

Edited October 7, 2014 by Chipmeister
Typo

[citizenB]

[dx100uk]

as long as the debt shows a defaulted date

 

 

it will VANISH from the CRA on defaults 6th birthday

 

 

doesn't mean its fully paid mind

 

 

a debt buyer cannot change the OC's original default date.

 

 

they do not have the permission to do so

nor enter a new default date.

 

 

as for the DF 'markers' they mean nowt as long as

the debt has a default in the summary

[Chipmeister]

Thanks DX. I appreicate your comment re the debt disappearing after the 6 years, but once it is paid in full (which would be 9 months after the default's 6th birthday) would it be reinstated on my credit record to show full payment?

Edited October 9, 2014 by Chipmeister
Missed a bit! ;@)

[dx100uk]

the comment I made is absolute

 

 

dx

[Chipmeister]

Cheers DX :@)

[dx100uk]

the ICO say:

 

 

All references to a defaulted debt must be removed from your credit files after 6 years

has passed from date of default, whether paid off or not.

.

the WHOLE ACCOUNT WILL VANISH, never to return.

.

however, this does not mean the debt itself is not still owed

consider a CCA request.

.

This is so that someone who continues paying something

- even after 6 years from default

- should not be at a disadvantage to someone who pays nothing after default

and ends up with a clean file after 6 years.

[BRIGADIER2JCS]

Cheers DX :@)

Once removed an entry cannot be replaced on CRA files.

[Chipmeister]

Good to know - thank you all :@)

[Chipmeister]

One more question, just out of interest please.

 

 

Once those defaults are gone

 

 

my Credit Report will be left with

my mobile contract,

my bank account,

a low limit AMEX credit card (which I use to buy petrol and pay off in full each month),

utilities and

the mortgage,

 

 

all of which are in good standing.

 

 

According to Noddle who rate 1 to 5, I am currently a 1, being the worst credit risk.

 

 

When those defaults are gone

 

 

how long will it take for my rating to rise?

 

 

Will I ever be a 5 again?!

[dx100uk]

it will be almost instantaneous.

 

 

my neighbour was 1 of 5 oct 12

 

 

during oct/nov/dec 7 defaults dropped off.

 

 

noddle in jan 13 was 5/5.

 

 

he then got the mortgage he was after.

as like you he had other running credits still on the CRA.

 

 

just DONT tell yourmortgage broker/advisor

whtat they cant ssee cant hurt them.

 

 

just remember mind this was before the new 'guidance'

[Chipmeister]

That's interesting! To which new 'guidance' do you refer?

[dx100uk]

mortgages are now harder to get anyway

brig will point to it...FCa I think?

 

 

dx

[ims21]

It is the Mortgage Market Review (MMR)

 

Start here

 

http://www.fca.org.uk/firms/firm-types/mortgage-brokers-and-home-finance-lenders/mortgage-market-review

[Chipmeister]

Ah, the new mortgage application guidance,

 

 

yes, I know about that.

 

 

Luckily I've got a pretty good deal on my mortgage at the moment

but with interest rates due to start rising at some point next year

it would be nice to have the option to shop around.

 

 

Cheers dx.

[dx100uk]

http://www.google.co.uk/cse?cx=partner-pub-0964707606882478:iycnfeikf4h&ie=UTF-8&q=new+mortgage+rules&sa=Search+the+Web#gsc.tab=0&gsc.q=new%20mortgage%20rules&gsc.page=1

[Chipmeister]

And thanks ims21 - our posts crossed.

[ims21]

[dx100uk]

hehe and me..

 

 

dx

[BRIGADIER2JCS]

One more question, just out of interest please.

 

 

Once those defaults are gone

 

 

my Credit Report will be left with

my mobile contract,

my bank account,

a low limit AMEX credit card (which I use to buy petrol and pay off in full each month),

utilities and

the mortgage,

 

 

all of which are in good standing.

 

 

According to Noddle who rate 1 to 5, I am currently a 1, being the worst credit risk.

 

 

When those defaults are gone

 

 

how long will it take for my rating to rise?

 

 

Will I ever be a 5 again?!

 

 

The score should gradually improve over a few months when the defaults go, but remember too little credit also has an adverse effect as potential lenders have little on which to make a judgement, (the score is intended as a "personal" indicator as to how a credit app. may be viewed. All lenders have unique in house methods of " credit scoring".

 

 

That said numerous credit apps in a short period will also affect the score.

 

 

Hope this helps.

[Chipmeister]

Thanks Brig,

that's why I've got the low limit AMEX card,

buy petrol in October,

pay in full in November.

 

 

As petrol is part of my monthly budget I've always got the funds to pay in full,

and hopefully, along with my mortgage payments which have always been in good standing,

this will help in rebuilding my credit file.

[BRIGADIER2JCS]

Thanks Brig, that's why I've got the low limit AMEX card, buy petrol in October, pay in full in November. As petrol is part of my monthly budget I've always got the funds to pay in full, and hopefully, along with my mortgage payments which have always been in good standing, this will help in rebuilding my credit file.

 

 

Good work! Chip!!

[Chipmeister]

Good work! Chip!!

Once bitten, twice shy!