Information to help you deal with your CRF's

Moderators: TalbotWoods, JaneClack

By tombazro
#471453 Hello,

I am new here so if you could bare with me!

I have 5 defaults, all with fairly small balances of around £400 or so, mostly made up of charges applied from missed payments etc.

My question being, is there any point in paying these defaults off in full or partial and if so, will the default not supercede this settlement meaning it will be like throwing money away?

I'm not planning on applying for any credit inc. Mortgages, loans or credit cards until the defaults have fallen off my file (all within the next 2 years). I'm just trying to plan for the future when it is time to apply for a mortgage.

Hope you can help, many thanks.

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By JaneClack
#471456 Hello - whether or not you repay the debts, the defaults will remain on your credit file for 6 years from the date they were put there.

If they are paid off in full this will also be clear from the credit file but the default remains. Also many creditors will put down partial settlement if one does not pay back the full amount.
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By TalbotWoods
#471458 The entry will fall off 6 years from the default date, so irrespective of if fully satisfied or partially satisfied, that account would off in total.

However, one thing to bear in mind if you were to go for anything other than a full repayment, the creditor may sell off the outstanding balance on the account. Then the new debt buy may well try and place a new default (illegally but some debt buyers are doing this quire routinely now), and you will have to chase them to remove it!

And the final aspect of not dealing with an account is if a creditor sells the account off, before the six year point, the new buy may go for a CCJ, which would then sit in the public information on your CRF for six years from the date of issue, irrespective of the account status.