To ask your advice on defaulting on payment?

[applesandpears86]

I had a car on a pcp finance deal. It lost a lot of value and therefore I decided to terminate the agreement with the finance company. This was in September.

After the termination was accepted I was told that my account was frozen until my car was collected. I would then be issued with a bill for the outstanding finance due, excess mileage charge and any other charges. I would not make any other direct debit payments.

There were several misunderstandings between the finance company and the car collection and they didn't collect it until mid October. I am still waiting for the final statement.

I just logged to check my Experian report and have seen the finance company reported a default on the outstanding finance (not the other charges). I feel sick about this as I understand it doesn't drop off for six years and I want to move house next year.

Firstly, I have received no correspondence regarding late payment and double checked with the finance company that I need to await the final statement.

Secondly can an account be issued a default with two missed payments? (If I had continued this would be the case). It has been less than 90 days since the agreement ended.

Would really appreciate some help on this as I am worried sick. I will of course call first thing tomorrow to pay any outstanding finance.

The guidance is 3 to 6 months for a default but as it's them who messed up anyway I'd be having stern words with their complaints department and asking them to remove it as your account is still frozen. I wouldn't pay just yet as if they decide to be silly about it you can try bargaining with it.

Definitely try and resolve it with the company so that they remove the defaulted payment from your account and from your credit reports. Speaking from experience it'll make your future financial life much harder if it remains.