Anyone successfully got a default removed from their credit file?

[PosiePumblechook]

DH had a huge overdraft, he avoided paying it for 8 months because the bank wouldn't send him a written settlement figure and we were going through financial difficulty. (Also because he's a complete ostrich and muppet about consequence)

We have found our dream home and do not wish to borrow any more from the mortgage company, just port the mortgage. But when we were asking for more they refused on his experian file, the only bad thing is the default.

There's surely no such thing as a written settlement figure on an overdraft? As it isn't like a loan where you can't see the outstanding amount, or get a rebate for repaying early, so his bank statement showing the current overdraft facility in use would be the same as a settlement figure. I have to say, I doubt very much if he can appeal it, he defaulted, his credit file is marked as such. He could apply to put on a notice of correction (I think it's called this) so that when he applies for credit it shows a comment on why he defaulted, it's then up to the individual lender to decide if they feel he is credit worthy.

Would a guarantor make any difference? If you want to risk applying to another lender (leaves a record on your credit file if you're refused) then you could try London and Country mortgage brokers, I've heard they're quite good in situations like this. Might be worth a phonecall..

Thanks, and there is a settlement figure when paying off any debt in full you just have to ask.

Failing that, get the overdraft paid off asap (do you have family who would lend it to you short term), correct the Experian file and try again? Have you got buyers for your current property? (ie are you up against the wall to make the move)?

Why would you offer a settlement figure tho on money that you have actually spent ? no wonder the banks are in such a mess, So if I go into my 500 pound overdraft and have a bad few weeks I can offer a bit less to settle it ? Hmmm. Sorry to be harsh but he needs to learn that if you have to borrow you have to repay.

Posie - I have actually been to the cheese rolling!!

Fakeblondie - I think it's over simplistic to say 'that's why the banks are in a mess', and dare I say it, a bit Daily Mail? My interpretation was that it was the crash of the American housing market and banks/companies over leveraging sub prime 'predatory' loans that started the bank crisis - not one person with a small overdraft issue.

It is very easy to get yourself into a situation like this, charges multiply and before you know if the amount you owe seems insurmountable. Couple this with the fact that, the bank were your best friends when you were in the black, however when in the red, they don't budge an inch and can be very unhelpful. A settlement figure is a good way for the bank to get a large proportion of the money that is in default, back immediately, rather than it being paid back in very small amounts over a long period of time. It's their way of risk managing the debt, and the likelyhood of it being paid off.

I am not defending us people that have debt, and I think that it is wrong to borrow money and not really have the intention of paying it off , but I doubt with many people this is the case. These are hard times, people are having to take lower paid jobs, they get made redundant - many things can lead to missing payments.

In every aspect of life, things screw up occasionally - money can be just one of them.

We wanted a settlement figure to pay the whole thing off, which would prevent the bank selling on the debt at a lesser value anyway.

What happened is that my DH was earning X and went to work the week after our fourth child was born to be illegally demoted, this meant a paycut of 60%....this wage went on for 24 months whilst he built up his income again. The huge overdraft was over spending and greed, but we had planned to pay it off before Christmas (DH was earning big commissions and bonuses) but with the pay cut it was impossible. We were in danger of losing everything.

But I do agree, and have learnt a hard lesson, that spending more than you can afford and borrowing is pretty childish.

Click this link to sign the petition:
petition.parliament.uk/petitions/120003/sponsors/mZRLh9mKmRTrot8NmHju

My petition:

Make Companies not regulated by the Consumer Credit Act send Default notices

Companies that are not regulated by the consumer Credit Act are able to report 'defaults' to credit reference agencies without any prior notice to the customer. 'defaults' remain on a credit file for 6 years often without the customer knowing, severely damaging ability to obtain credit.

Companies that are regulated by consumer Credit Act are required to send a Default Notice, giving the customer the opportunity to resolve the problem before sharing Default data with credit reference agencies. Companies not regulated by the consumer Credit Act such as mobile phone providers, internet providers are not required to send default notices before reporting defaults to credit reference agencies.