Credit file after being discharged
My husband was discharged on 01/08/23 and received his form 5 , having been given great advice before on here I was just wanting to ask how long roughly does anyone know for his debts to change from default to satisfied ? It’s now 2 months since discharge but is this too soon to expect them to be changed ?
I did look at other forum posts but just thought I would ask but I did notice some of his debts default dates are 6 months later from when the trust deed became protected ie the td was protected on 14/06/19 and defaults on some of them are saying December 2019 and January 2020 does this make any difference ?
He’s hoping to get a new car on finance just after Xmas but wants to have the greatest chance of getting this and we want to make sure everything is right before he try’s.
Hi. The delay may be due to the difference between your husband's discharge and the trustee's discharge - I suspect many creditors only update the credit file info once the Trust deed is fully closed and the Trustee is discharged, which is usually several months later.
However, the fact is that your husband is now no longer liable for those debts and the various creditor have a duty to reflect this on his credit file. It may take a bit of extra effort but if he contacts the various lenders involved then he should be able to hurry the process along. There are certainly other forum members that have successfully done this.
The original date of default is relevant in that the debts should disappear altogether off his file 6 years after the default date. The date should align with the date he entered into the Trust Deed so if any are later then the lenders should amend this if he gets in touch with them about it. Again, bit of a hassle probably but he might feel it is worth it in order to get his credit rating cleared up at the earliest opportunity.
Hi there Kevin
Thanks for your speedy reply and advice we managed to chat to someone on the trustees chat section this morning they are telling him that it can take up to 6 months to finally close the trust deed down and the creditors maybe change the debts to satisfied then once they are notified of the trustee discharging themselves.
They did say it’s not their responsibility for the creditors to update the situation regarding my husbands credit file etc.
I will get him to contact the creditors that still have default as the status and the ones that have the dates incorrect as two of them are saying January 2020 which is 6 months out.
Thanks again for all your advice.
To help speed up the process, it would be an idea to send copies of your partner's Form 5, so that the companies have a date of when he was discharged. I'm not sure if Form 5 gives the date of starting the Trust Deed, but if you have some paperwork to prove this, I would send that too. If the companies don't change the information, I would take it to the Ombudsman. We did Insolvency, and still had incorrect information recorded, the Companies (banks etc) blamed it on the Credit Reference Agency for not recording the correct information, and Credit Reference Agency said they could only record what they were given from the Companies, so we contacted Ombudsman, and their findings were that Credit Reference Agency 'normally' records the information that is given to them from the banks, Credit Card companies etc, so my complaint was upheld, and the information was rectified within a few days after involving the Ombudsman, but that is your last resort. Hope this helps. Good luck.
@tigh thanks for your advice , I started this yesterday and working my way through his creditors and hopefully that will get it all sorted out.
I just find it strange that at the end of the trust deed /insolvency you are just left to get on with it yourself ie check your credit file and having to chase things up this is the negative part at the end which is supposed to be positive , but I think his trustee isn’t the best with communication so that hasn’t helped.
@jellytot75 i had to send form 5 to the creditors to have this reflected on my crefit file but it didnt change my score, only with sensible credit utilization and my TD being removed after the 6yrs did my credit score improve. I was "poor" for the 4 years in the TD then moved to "fair" once I sent form 5 about. My credit rating is now "excellent" since the TD was removed 6yrs later. Good luck. It is all a headache.
@jellytot75 I found the quickest way to sort it was to make a complaint to the individual company's CEO. I had posted the following before re correcting default dates but it's easily adaptable to get them to mark satisfied/part satisfied as yet. May seem heavy handed but to be honest, I have little sympathy for banks. Most companies are petrified of GDPR breaches, so it does tend to get things sorted quicker. Give me a shout if you need any more help;
If you make a GDPR complaint and send it to the CEO of the company, they tend to sort fairly quickly. There is a site where you can get email addresses for the CEO of most companies. Just Google CEO email and you will find it. Then email me them something like this;
A default can be registered for debts which the lender has also tried to recover through a
CCJ or decree.
In normal circumstances lenders will be notified when the debt that is owed to them is to be
included in an insolvency e.g. bankruptcy, IVA or similar and should be marked as included
in that by filing a default as soon as is practical.
The default date must be consistent with that of the CCJ/bankruptcy or IVA; therefore a
default should be filed as being no later than the date of the insolvency order. In
circumstances where the lender is not immediately aware, the default can be filed at that
point in time. If evidence of the insolvency date is provided, the default date recorded at the
CRA will be aligned.
@cif and others thanks for your replies on this matter it really helps us and I guess others browsing on this site I am so glad I found this site it’s been most helpful .
First creditor gave me the runaround for nearly 2 hours on the phone and they don’t really have staff in a insolvency department but I have a email to send his form 5 too and this creditor is one of the ones that has the default on the wrong year nearly 8 months after the deed was protected but I will try the ceo route if we don’t get anywhere.
Some excellent information on this thread - thanks everyone for sharing.
I'm afraid I had to remove a link from your post, CIF. For security reasons we have to ask members not to add hyperlinks to the forum. Is the information referred to available by searching via the ICO website?
@kevin-mapstone Hi Kevin, it took a bit of finding to be honest. I think it was on another debt forum where I first found it.
Hi all thanks for your advice on this thread. I also have a question, after being discharged in February 2023, I have a few debts that are still showing as outstanding and defaulted. Should the amount of debt change to 0 now I have been released from a trust deed? It's still showing over £8000 made up of a couple of different things (it was £42k so some stuff has disappeared)
The company name the debt is now under has also changed, for example, I think one was barclays but is now link financial. Is it Link financial I need to send a copy of the form to?
Apologies for all the questions, I'm keen to move forward and save for a mortgage so anything I can do until everything drops off next November would be amazing (not sure if I could get a motgage beforehand)
Hi. Yes, any debts that were from prior to you signing your Trust Deed should now be showing as settled/satisfied and the outstanding amount showing as nil. It sounds like it is just probably a result of the debts being sold on that this hasn't happened as the purchasers are presumably unaware. If you contact them with a copy of your Form 5 discharge then they should update your credit file.
hi there following my post on this subject we have been working through my husbands creditors and a few were sold into companies and one was link financial , we called them yesterday and them with the other companies weren’t aware that my husband was discharged at the start of august so basically I had to email them his form 5 and they said his credit file will be updated within a couple of weeks.
So I am guessing that’s what’s happened with yourself , the debt has been sold on/transferred and they aren’t aware that you have been discharged . I will post back here and let you know how we get on and how long it takes .
A few of his creditors just went onto the trust deed register to search for my husband and that was proof he was discharged which was great but link financial wanted proof.
hope this helps
This morning my husbands credit file has now updated and the link financial one is now closed and says satisfied .
This only took 2 days to change once we notified them about him being discharged we were told a reference number and emailed them that with the form 5 and it’s took one working day to sort out so hopefully you will get the same result.
One creditor a well known building society are not being helpful they said my husbands account was closed on 23/10/23 and they are saying that they can’t change his credit file and we need to let the credit agencies know it’s closed ? I informed them that legally he doesn’t owe that money any more and it shouldn’t be updated to say satisified and balance zero they won’t let us speak to anyone about it or let us email them proof they just keep saying account is closed and they can’t action anything or update his file ?
I told them if they don’t then we will go to financial ombudsman is this the correct action we will need to take going forward?
I think you should be making a complaint through their own complaints process first - hopefully that will do the trick. If not then it may be FOS or potentially a complaint to the ICO.