Annoying Default

[Biggreygoose]

I'm after a bit of advice here. Have generally had a decent credit rating, not perfect but pretty good with no issues getting credit. Have two credit cards with relatively high limits and using less than 50% on each. No mortgage or student loan.

I haven't had to apply for credit for years as the limits on my cards have been raised steadily for the last few years, but I went to buy a sofa at the weekend and take advantage of a 0% offer I was refused. Having checked my credit report (a salutory lesson here to check regularly) I have discovered an account has been put into default which has absolutely tanked my score.

Now this account relates to a disputed sum with an energy company arising from the final bill at my last house. I have paid what I believe I owe and there is £200 still outstanding. Energy company know I have moved as they sent correspondence to my new address. I can't remember having a notice of default sent, though in fairness the last couple of years have been topsy turvy with health issues etc so they may well have done.

Now my conundrum; the 6 years on the account is up in just over 2 years and the amount is small. Do I :

A) swallow my desire to be right and just pay? Although I understand this will have little affect on my score until the account falls off my record. I understand this also means that they cant raise a CCJ for the amount just before the 6 years is up.

B) not pay and save myself £200 which I never owed anyway. (Discrepancy arose from a meter reading they took which they couldn't have done and was wrong anyway. I have been trying to prove this for years and everything had gone quiet). Given the small amount how likely is a CCJ?

C) can they drop the default of I push hard enough on the original complaint?

D) contact them for a partial settlement. Although I understand this may not be viewed very well by creditors compared to a full settlement.

Nothing is really hanging on this, no mortgage applications in the near future or anything like that. The only potential risk is of a CCJ on the future. I recognise that the boat has probably already sailed on repairing my score quickly.

The internet has various opinions on what to do and I wondered if anyone here had any direct advice.

When was the last time you had contact with the energy company?

Try asking this question on moneysavingexpert if you don’t get any replies here.

About 3/4 years ago.

I have posted on there as well, but this site is a little busier.

I would have thought it was unlikely that they would pursue a CCJ for £200 as their costs would probably make this uneconomic. Particularly if they have noted that it's a disputed debt.

Have you thought about submitting a Notice of Correction to the credit reference agencies? This is statement of no more than 200 words which you can use to expand upon the information they hold. A Notice of Correction can also be used if you disagree with the information held. The credit reference agencies may well amend information that is seriously disputed.

From doing a bit of reading notices of correction don't seem to help very much? Does seem like an easier route to go down though.