Removing defaults from your credit file

This seems to be a big issue that many people get confused over. It is quite dif
ficult to have a default removed from your credit file (CF), though not impossib
le. So far I have had 6 defaults removed by DCA's (Debt Collection Agencies) and
1 removed by an Original Creditor (OC).
It can be very time consuming, involve a lot of letter writing and there is no g
uarantee of success.
*** Please note *** This is not legal advice and is solely based on my own exper
ience. There is NO guarantee that you will be successful
So lets get started.
What is a default? - A default is a marker placed on your credit file by an orig
inal creditor OC after you have missed between 3-6 (approx) payments and you hav
e defaulted on your credit agreement.
Normally before they place a default marker on your credit file, the OC would
ite to you, informing you that your account is in arrears, telling you how to
ing your account up to date and giving you a certain amount of days to do so.
ey will also inform you that if you fail to do so, they will report a default
your CF to the Credit Reference Agencies (CRA).

wr
br
Th
on

Once a default is placed on your CF, it will remain on your CF FOR A PERIOD OF 6
YEARS - A default is just as bad as a County Court Judgment (CCJ) and will make
it very hard to get further credit for the period that the default exists.
Who can remove a default from your
CRA can remove defaults from your
can remove the defaults are;
a) The Original Creditor
b) The Debt Collection Agency - if
c) The OC/DCA/CRA if instructed by
d) A judge - if you decide to take

credit file? - Lots of people assume that the

credit file - They can't. The only people who
they have bought the debt
the Information Commissioner's Office (ICO)
the OC/DCA to court.

Why can't the CRA remove the default? - The CRA have a legal obligation to conta
ct the OC/DCA on your behalf if you decide to contest anything on your CF.
The CRA will contact the OC/DCA and ask if the information they have supplied on
your CF is correct. If the OC/DCA reply and inform the CRA that he information
is correct, the CRA will write back to you and inform you that the OC/DCA has co
nfirmed the information is correct and the default can't be removed from your CF
. The CRA will also inform you that they have fulfilled their legal obligation a
s per the rules of the ICO. Within Schedule 1, part II (Interpretation of the Da
ta Protection Principles) of the Data Protection Act 1988 it is explained that a
s a credit reference agency, we are not considered to have breached the act by q
uerying the disputed information and adding a NOTICE of Dispute statement. - As
a credit reference agency, we are not obliged to provide any documentation or ev
idence to substantiate that an entry on a credit report is correct. As long as t
he company with whom there is a dispute confirms that the data is accurate we ha
ve fulfilled our legislative obligations.
If the OC/DCA fail to respond to the CRA within 28 days, any negative marks on y
our CF will be removed from your CF until such time that the OC/DCA do reply to
the CRA. - this is why some of you may have noticed that defaults disappear from
your CR for a period of time and then reappear again later!
If you fail to get the default removed from your CF you are entitled to put a NO

TICE OF CORRECTION on your CF. A NOTICE OF CORRECTION is a notice that you can p
ut against any disputed information on your CF. It must not be longer than 200 w
ords. However, Section 159 of the Consumer Credit Act 1974 states that credit re
ference agencies can refuse to add a Notice of Correction on the basis that it a
ppears to be improper for publication because it is incorrect or defames any per
son, or is frivolous or scandalous, or is for any other reason unsuitable. If th
is is the case, the CRA will seek clarification from the ICO before either accep
ting or declining your Notice of Correction.
Below is a NOTICE OF CORRECTION that Experian would find acceptable (Remember ju
st keep to facts)
I, Mr (add name), state that this defaulted account is inaccurate and reported i
llegally. I dispute the right of the data provider to report this information an
d have yet to receive a true signed copy of a credit agreement, a novation agree
ment, a deed of assignment or a default notice. I have also not received a respo
nse to my section 10 request that I have sent the data provider. I am not satisf
ied that any evidence has been provided to substantiate the accuracy of this inf
ormation and I would like it to be known that the account/s have been closed by
the data provider
So what can I do to remove any default from my CF? - this is my step by step gui
de which I have used ...
1) Apply for a copy of your CF from the CRA's - Their are 3 main CRA's and I sug
gest that you get a copy from all 3. There is a free service supplied by NOODLE,
but in my experience, they don't always hold all the information and are slow i
n updating your CF - Further Info on CRA ... [Link]?f=97&t=64864
2) Once you have established which account has the DEFAULT/S against it. If it w
as the OC who defaulted you and they are still own the account, the chances of r
emoving the default are very very slim. You will have to look through your credi
t agreement and read what the exact terms and conditions are. If the debt has be
en sold to a DCA you have a much better chance of getting a default removed. Aga
in look and study the terms and conditions of any credit agreement. Virtually al
l of my credit agreements failed to insert a clause that allowed the debt to be
sold. In the cases that it was sold, there was no mention that the new owner cou
ld process my personal data - SO READ YOUR CREDIT AGREEMENTS VERY CAREFULLY!!!!
What I do now is to write to the OC/DCA asking for copies of the default notice
or notice to default; and normally add this;
I feel that these default entries were added unlawfully and without merit. Doing
so has put you liable to a breach of the Consumers Credit Act 1974, in particul
ar s.87(1) of said Act; Section 87(1) of the 1974 Act allows the creditor to sen
d you a default notice giving you fourteen days from the date you receive it to
pay the arrears. The default notice must contain all of the necessary informatio
n under the Consumer Credit (Enforcement, Default and Termination Notices) Regul
ations 1983 ('the 1983 Regulations') which includes;
1.a statement saying the notice is a default notice served under section 87(1)
of the CCA1974
2.a description of the agreement
[Link] name and address of both the debtor and the creditor
[Link] of the breach (i.e. late payment) and, if the breach can be remedied,
the date by which it must be remedied or, if the breach is not capable of remedy
, the amount required to be paid after the expiry of the specified date;
As is clearly evident from all previous communication between us regards to thes
e accounts listed, I never received any such notices and as a result I contest t
he accuracy of the defaults and until such time you can provide proof that you c

omplied with the above Act, you must remove all derogatory data from the files o
f any credit reference agency.
I am more than happy to issue you a Subject Access Request which should include
a copy of the documents I request, which I am hopeful will include a copy of sai
d termination and default notices which, if they are missing, will leave me no a
lternative but to seek legal enforcement via CPR31.16. Without sight of said def
ault notices, I cannot argue their authenticity, enforceability or execution and
therefore will use this as my claim if I am forced into taking legal action, al
l costs will also be claimed.
It would, however, be in both our interests if you simply agree to remove the de
faults, being there are so many inconsistencies with the alleged default notice,
the execution, the enforceability and the legal compliance that you must surely
have no other alternative but to remove it, least of all as a gesture of goodwi
ll?
As I was never in receipt of any of the statutory documents (Notice of Terminati
on of Contract; Notice of Assignment or Default Notices) then the actual default
notices that are shown on my credit file are unlawful and should be immediately
removed. I do not want to take this through the courts but I will enforce remov
al by judgement if necessary, at the end of the day you have acted unlawfully by
not issuing fully compliant and correctly executed legal documents.
I must insist that the following requests be carried out;
a) The Default Notice will be removed
b) The Status of the account will change from Defaulted to Settled
c) The Current Balance will appear as 0.00
d) The Default / Delinquent Balance will be set to 0.00
e) There will be no date in the Defaulted Date field (as it will be removed)
f) There will be no date in the Date Last Delinquent field on the report
g) This will apply to all 3 Credit Reference Agencies, namely Experian, Equifax
& Call
Credit.
I am requesting a signed true and certified copy of the original default notices
under the Consumer Protection From Unfair Trading Regulations (CPUTR) 2008, The
Consumer Credit (Enforcement, Default and Termination Notices) Regulations 1983
, The Consumer Credit (Enforcement, Default and Ternmination Notices) Amendment
Regulations 2006 and also The Consumer Credit Act 1974 (c.39)
s.87 & s.88 Guidan
ce, and The Consumer Credit Act 2006 (Amendments)
3) The OC/DCA will often write back and tell you that they have no obligation to
supply you this and/or in some cases will inform you that they don't keep any r
ecords of this. - If they do this then in my experience they haven't followed th
e rules and it would be worth considering making a Subject Access Request (SAR)
with them - for further info on making a SAR [Link]
um/v ... =5&t=64871
4) If they are still refusing to remove the default?, I would write to them agai
n and ask for the following:
You are hereby requested to send me the following information regarding account
number: 123456
a)
r,
b)
c)

The Original Credit Agreement, signed by both myself and the original credito
(You have never sent me this)
The Novation Agreement between the OC, DCA and myself,
The Deed of Assignment Please don't write back to me telling me I am not enti

tled to see the Deed of Assignment because we both know that this is the only wa
y to actually prove the debt was bought by you and what type of Assignment right
s were given,
d) The Fair Processing Notice and requisite permission which you claim to have,
which also shows my agreement,
e) The Notice of Assignment which you claim to have sent me,
f) A true and certified copy of the original Default Notice under the The Consum
er Protection from Unfair Trading Regulations (CPUTR) 2008, The Consumer Credit
(Enforcement, Default and Termination Notices) Regulations 1983, The Consumer Cr
edit (Enforcement, Default and Termination Notices) Amendment Regulations 2006,
and also The Consumer Credit Act 1974 (c.39)
s87 & s.88 Guidance and The Consume
r Credit Act 2006 (Amendments)
g) Written and signed proof that you are entitled to process my data.
Please note that this letter is not a complaint and should not be dealt with as
a complaint. It is a NOTICE BEFORE ACTION. You have been dealing with this since
the (add date) and have had more than enough time to provide evidence. You have
12+2 days to reply. If you reply that my complaint is being looked into, I will
start immediate action against your company.
Failure to reply or remove the default from the account 123456 or provide eviden
ce that you are allowed to process my data on the same account will lead me to t
aking further action with immediate effect on the 14th day of this dated letter.
No further dialogue will be entered into with your company.
Please remember that you must answer all questions and answer them truthfully. I
f you do not have any of the items that I am requesting then you must inform me
of such under The Consumer Protection from Unfair Trading Regulations (CPUTR) 20
08.
Further action will include reporting your company to the Financial Ombudsman Se
rvices, The Information Commissioner's Office, The Office of Fair Trading, and a
fter that legal action. (NOTE - The Financial Conduct Authority replaces the OFT
from 1 April 2014)
5) They are still refusing to remove the defaults! - I normally write to them ag
ain, adding the following;
As for your failure to remove the default, as you claim to be the data controlle
r for my information, you should have all information available to you before ma
king any decisions. The Technical Guidance Note
Filing defaults with credit refe
rence agencies as set out by the Information Commissioner's Office clearly state
s that Section 87 of the Consumer Credit Act 1974. Where lenders are not require
d to issue these notices, they can send an intention to file a default through a
final demand, letter, which should make clear not only the intention to file bu
t also the date of the intended default. The date should allow the customer enou
gh time to respond properly. Lenders who have to provide a notice of intention t
o file a default under a relevant code of practice should be aware that not comp
lying with the code may be taken into account in any assessment of the fairness
of their processing.
Please forward me this notice by return. If you are not in possession of this not
ice of intention to file a default you must inform me of such. Again, if needed,
I shall make a Subject Access Request to both yourself and the original creditor
if I feel the need to take further action. As you are fully aware, CPR pre-acti
on protocols state you have to provide this.
I feel that I have now gone as far as can with you and my only alternative now i
s to take legal action to right the wrongs of your company against me. I think I
have addressed every issue in my numerous letters to you and therefore have ful

filled all CPR pre-action protocols before commencing legal action.

However, I am giving you one last chance to do the right thing and remove the de
fault notice as you have failed to provide any evidence. Failure to do so will r
esult in me taking further action against (add DCA) through the small claims cou
rt, for my outstanding Bills, plus damages for breaches of my data protection. I
also reserve the right to refer the many different breaches of rules and guidel
ines to the OFT, FOS, ICO, CSA, DBSG, FCA and Trading Standards.
6) The DCA are still refusing and saying that I should contact the OC for the de
fault notices - Again I would write to them;
As you claim to be the owner of this account, may I bring it to your attention t
hat under s.189 of the Consumer Credit Act 1974, you are now the creditor as def
ined by s.189 of the Act, and are responsible for both rights and duties. Theref
ore, it is your responsibility to to have all the documents related to this acco
unt and it is not my responsibility to make a SAR with the original creditor for
documents that you should have in your possession.
It is quite clear that you do not have the documents that prove that the intenti
on to default notice was ever sent to me from the original creditor, nor do you
have the default notice, as per the Technical Guidance Note, issued by the ICO.
I now request that the default issued against the account be removed from my cre
dit file with immediate effect, as under s.189 of the Consumer Credit Act 1974,
you are classed as the creditor. Your attention is drawn to s.5(2), 3(b), 6 and
7 of the Consumer Protection from Unfair Trading Regulations 2008 (CPUTR)
Below are some of the parts of my letter
10. I now demand that you stop processing my data as in line with my SECTION 10
NOTICE that I sent you previously. If you continue to process my data, I shall c
ontact the Information Commissioner's Office in the first instance and make an o
fficial complaint. I also reserve the right to take further actions through the
courts to stop you processing my data.
11. I intend to make a formal complaint to the FCA for various offences under th
e OFT guidelines.
12. I also intend to make a formal complaint to the FOS.
13. I also intend to make a formal complaint to the CSA for various offences und
er the CSA/OFT guidelines.
14. I also intend to make a formal complaint to the Trading Standards for variou
s offence under the Consumer Protection from Unfair Trading Regulations 2008 (CP
UTR)
15. Please find enclosed my latest bill for Un-rebutted agreement via tacit and
estoppel.
As you have already closed this account, and as a gesture of my goodwill, I am p
repared to write off any outstanding bills and default charges (including intere
st) against you, on the understanding that you remove the default from my credit
file with immediate effect. I understand that there should be no delay in doing
this and that you can apply a Rapid Update with the Credit Reference Agencies.
On agreeing to remove the default from my credit file, I shall drop any action/s
against you, which are listed above, in sections 10, 11, 12, 13 and 14.
As already stated, your failure to respond to his letter within 10 days (+2), wi

ll result in me believing that you are not prepared to remove the default and th
at your letter of (add date) was in fact your final response.
If I do not hear from you by the (ad date), I shall commence making formal compl
aints against you with immediate effect and no further correspondence will be en
tered into with you.
7) What now? - If the OC/DCA are still refusing to remove the default it is time
to make an official complaint to the ICO, also the FCA.
If this fails and they have still not provided evidence that the default was iss
ued correctly or that they can process your data, you should consider taking leg
al action - I'm at this stage now with 1 DCA
The information is a brief description that I threw together this morning to try
and give you some insight in to how to deal with a default on your credit file.
As time goes by, I shall try and modify this post to make it easier to understa
nd. I wasn't planning to make this post yet, but because of the large amount of
pm's and questions I receive, I thought that this may help for the time being.
So remember to learn what you are asking for and even though it is very tedious
and time consuming, give the OC/DCA plenty of opportunity to provide the evidenc
e you request. Their failure to do so and your continued requests will help you
in any court case that may happen.
One last thing .... here is a quick timeline of events of my letters to a DCA th
at have resulted in 6 defaults being removed and 1 that I'm still fighting with
them.
03/09/13 - Letter to DCA requesting further information and asking for default t
o be removed
20/09/13 - Letter to DCA reminding the DCA of my previous letter
03/10/13 - Letter to DCA again reminding the DCA of my previous letter
08/09/13 - Letter from DCA refusing
10/09/13 - Letter from DCA informing me that my complaint has been passed to com
plaints department!
21/10/13 - Letter from DCA informing me that my complaint has been passed to com
plaints department again!!!!!
27/10/13 - Letter from DCA informing me that they are still investigating my com
plaint!!!
31/10/13 - Letter to DCA requesting that they send me the information previously
requested
22/11/13 - Letter from DCA informing me that they are still investigating my com
plaint!!!
15/01/14 - Letter from DCA informing me that they can't find the information and
have removed 6 of 7 defaults
23/01/14 - Letter to DCA requesting further information regarding last default
14/02/14 - Letter from DCA refusing to remove last default and it's their final
answer
25/02/14 - Letter to DCA demanding final default should be removed
07/03/14 - Letter from DCA refusing to remove last default and it's their final
answer for the 2nd time
11/03/14 - Letter to DCA Demand default removed - threat of legal action
17/03/14 - Letter from DCA refusing to remove last default and it's their final
answer for the 3rd time
22/03/14 - letter to DCA giving them one last chance before taking it up with IC
O, FCA and potential court action
So you can see it takes a lot of letter writing to achieve your goal.

I've had 6 defaults removed by one DCA. The secret is to refuse to accept their
decision. Pick holes in their paperwork, reply within 24 hours of their letters,
ask lots of questions under CPUTR (2008). Stick to facts and don't deviate. For
get about any notice of assignment, it's pointless.
I've also had 1 default removed by an OC - the default had already been settled
a few years back. I went through the same process and they eventually removed th
e default.
So don't give up and keep at it ;)
More updates will follow in time
Here is a template to use to write to an OC/DCA regarding removing a default - A
s with all templates, edit to suit your personal circumstances.
Mr Debt Free
21 Freedom House
Debt Free Street
Debtfreeland
AA1 1AA

31 March 2014
Re: Scummy Debt Collections Ltd Ref: 294782762
Dear Mr Scummy
I am writing to Scummy Debt Collections Ltd in regards to a default that is regi
stered on my credit file, to which Scummy Debt Collections Ltd are the data prov
ider.
As the default, which was registered on (add date) is now being processed by Scu
mmy Debt Collections Ltd. I,(add your name) demand that you remove the default f
rom my credit file with immediate effect, as Scummy Debt Collections Ltd have fa
iled to provide any evidence to substantiate the continued processing of my pers
onal data.
If Scummy Debt Collections Ltd are unable to remove the default from my credit f
ile, I,(add your name) demand that you send me the following information;
A true and certified copy of the original Default Notice under the The Consumer
Protection from Unfair Trading Regulations (CPUTR) 2008, The Consumer Credit (En
forcement, Default and Termination Notices) Regulations 1983, The Consumer Credi
t (Enforcement, Default and Termination Notices) Amendment Regulations 2006, and
also The Consumer Credit Act 1974 (c.39)
s87 & s.88 Guidance and The Consumer C
redit Act 2006 (Amendments)
I feel that these default entries were added unlawfully and without merit. Doing
so has put you liable to a breach of the Consumers Credit Act 1974, in particul
ar s.87(1) of said Act; Section 87(1) of the 1974 Act allows the creditor to sen
d you a default notice giving you fourteen days from the date you receive it to
pay the arrears. The default notice must contain all of the necessary informatio
n under the Consumer Credit (Enforcement, Default and Termination Notices) Regul
ations 1983 ('the 1983 Regulations') which includes;
1.a statement saying the notice is a default notice served under section 87(1) o
f the CCA1974

2.a description of the agreement

[Link] name and address of both the debtor and the creditor
[Link] of the breach (i.e. late payment) and, if the breach can be remedied,
the date by which it must be remedied or, if the breach is not capable of remedy
, the amount required to be paid after the expiry of the specified date;
As for your failure to remove the default, as you claim to be the data controlle
r for my information, you should have all information available to you before ma
king any decisions. The Technical Guidance Note
Filing defaults with credit refe
rence agencies as set out by the Information Commissioner's Office clearly state
s that Section 87 of the Consumer Credit Act 1974. Where lenders are not require
d to issue these notices, they can send an intention to file a default through a
final demand, letter, which should make clear not only the intention to file bu
t also the date of the intended default. The date should allow the customer enou
gh time to respond properly. Lenders who have to provide a notice of intention t
o file a default under a relevant code of practice should be aware that not comp
lying with the code may be taken into account in any assessment of the fairness
of their processing.
Please forward me this notice by return. If you are not in possession of this not
ice of intention to file a default you must inform me of such. Please don't infor
m me that I should contact the original creditor for this information, as you cl
aim to be the owner of this account, may I bring it to your attention that under
s.189 of the Consumer Credit Act 1974, you are now the creditor as defined by s
.189 of the Act, and are responsible for both rights and duties. Therefore, it i
s your responsibility to to have all the documents related to this account and i
t is not my responsibility to contact the original creditor for documents that y
ou should have in your possession.
As I was never in receipt of any of the statutory documents (Notice of Terminati
on of Contract; Notice of Assignment or Default Notices) then the actual default
notices that are shown on my credit file are unlawful and should be immediately
removed. I do not want to take this through the courts but I will enforce remov
al by judgement if necessary, at the end of the day you have acted unlawfully by
not issuing fully compliant and correctly executed legal documents.
I must insist that the following requests be carried out;
a) The Default Notice will be removed
b) The Status of the account will change from Defaulted to Settled
c) The Current Balance will appear as 0.00
d) The Default / Delinquent Balance will be set to 0.00
e) There will be no date in the Defaulted Date field (as it will be removed)
f) There will be no date in the Date Last Delinquent field on the report
g) This will apply to all 3 Credit Reference Agencies, namely Experian, Equifax
& Call Credit.
If it becomes clear that you do not have the documents that prove that the inten
tion to default notice was ever sent to me from the original creditor, nor do yo
u have the default notice, as per the Technical Guidance Note, issued by the ICO
. I request that the default issued against the account be removed from my credi
t file with immediate effect, as under s.189 of the Consumer Credit Act 1974, yo
u are classed as the creditor. Your attention is drawn to s.5(2), 3(b), 6 and 7
of the Consumer Protection from Unfair Trading Regulations 2008 (CPUTR).
As it is clearly evident from all previous communication between us regards to t
hese accounts listed, I never received any such notices and as a result I contes
t the accuracy of the defaults and until such time you can provide proof that yo
u complied with the above Acts, you must remove all derogatory data from the fil
es of any credit reference agency.

I am more than happy to issue Scummy Debt Collections Ltd a Subject Access Reque
st which should include a copy of the documents I request, which I am hopeful wi
ll include a copy of said termination and default notices which, if they are mis
sing, will leave me no alternative but to seek legal enforcement via CPR31.16. W
ithout sight of said default notices, I cannot argue their authenticity, enforce
ability or execution and therefore will use this as my claim if I am forced into
taking legal action, all costs will also be claimed.
It would, however, be in both our interests if you simply agree to remove the de
faults, being there are so many inconsistencies with the alleged default notice,
the execution, the enforceability and the legal compliance that you must surely
have no other alternative but to remove it, least of all as a gesture of goodwi
ll?
Please remember that you must answer all questions and answer them truthfully. I
f you do not have any of the items that I am requesting then you must inform me
of such under The Consumer Protection from Unfair Trading Regulations (CPUTR) 20
08.
Yours sincerely
Mr Debt Free