Hi Greggy.

To clarify:

1 - Do you mean the date that a formal default notice will be marked as "satisfied" or "partially satisfied"?

2 - Or do you mean the date at which the lender is saying that the balance owed was cleared?

As I understood it, the date of default would be the date of the Trust Deed being signed, but the debt is not settled/satisfied until the Trust Deed is successfully completed.

However, I may well be wrong!

I have a very similar scenario with the same company listed in another thread on here

I don't see the difference between the default date and settlement date, else everyone would have to wait 12 years to get the credit file cleared ?

A trust deed raised on 31-08-08 with creditors paid 31-08-14 would allow them to keep negative info on you until 31-08-20 as that is when late payment info would drop off ?

The main issue I experienced was the complete lack of knowledge at that bank about the rules, they think IVA is same as trust deed, they think they can declare dates months late as they haven't bothered to move your papers between your departments, its not true you deal with the bank if they delay passing info between departments that is their problem not yours retail banking is no different to you and me from their collections department its still the same bank.

I can vouch this late payment info does affect credit, I was refused a credit card last week and its the only negative info on my file.

May be worth the site getting a formal ruling on this topic ? you cant be expected to serve a 12 year sentence surely ?

Hi outofdeed.

We definitely will not be setting out a definitive ruling, but we will share what we learn and hope that it's found to be useful.

In terms of credit reporting, I don't think it makes any difference whether we're talking about a protected trust deed or an IVA.

We've also got to bear in mind that the purpose of a trust deed isn't to afford an opportunity to have a clear credit rating at a fixed point down the road. The purpose is really only to tackle a level of debt that cannot otherwise be properly serviced or repaid.

It's also worth remembering that recent reporting on your credit report is generally much more influential to a lending decision than the older stuff.

I'm not criticising your views or desire to fix your credit rating by the way. I'd feel the same. I'm just trying to set out that this may be seen in different ways by different people and organisations.

Thanks TDA, yes I think that is the key point here because I would respectfully disagree with your view of the purpose of the trust deed versus a full bankruptcy.

It has to be a 2 way street to allow you an informed decision at the outset, the fact you pay 3 years, then serve another 3 years is the cornerstone of what a trust deed is for the person receiving it for me.

Surely it is already cast in stone when the bank will get paid, and the basis percentage is clearly laid out to a formula and they get the full chance to challenge this basis in the 5 weeks of the Edinburgh Gazette entry.

So for the bank to then state 1 year later that the amount "is being schedule for payments" is not correct, the schedule is agreed and is statute.

I also would repeat again why I challenge your assertion that older info isn't so influencial, I fit every criteria mobile phone contract, capital one credit card, bank account I have revolving credit and am on the electoral roll in full time employment earn over 80k per year, all positive factors as far as I understand credit rating.

I have one single thing that is negative which is there "6 months+ behind payments" data, so I think its a fair guess, although not 100% sure that this is the reason I got turned down for a card, which I plan to appeal against once the info is corrected.

I would say if it was 12 ears known at outset I would have been more inclined to go down bankruptcy although I know that doesn't suit everyone.

Its key point for clarity who the trust deed is meant to be for, and for me its for both parties, and the timeline is clearly and absolutely set at 6 years at the outset for you to be clear.

Would be very interested in the views on this.

Hi outofdeed.

I can see why that is what a trust deed's purpose is to you. I don't think that's the purpose from a creditor viewpoint, an insolvency practitioner viewpoint or in terms of the legislation.

I think another area where we differ is your assertion that it's set in stone what will happen. It isn't really. It's set in stone what's expected to happen, what people have promised to make happen, but it hasn't actually yet happened.

There might be a comparison with debt management plans. A creditor will often voluntarily consent to a reduced payment being made. However their reporting to the credit reference agencies will continue to confirm that the originally agreed contractual repayment isn't being made. The CRA report is on the basis of the contract in this instance, not on what has occurred subsequently.

Another interesting point is the technical wording used regarding trust deeds which is always that they're run "for the benefit of creditors". Sure... there are benefits to all parties normally and a trustee should treat all parties fairly. The purpose however is to recover as much as is reasonably affordable of what is owed.

I too am interested to hear what other people think about this. It will also be interesting to get a view from the ICO next week. They may well agree with you.

Hi TDA and others,

Just a few more details from my particular question, it seems the other lenders that I wrote to with photocopies etc... have all updated their files with the last default date being the time when I entered the TD, how-ever the BOS have my last default date as the date of when I informed them that I had finished the TD ( June 2014). Although this subject seems a little complicated, I do feel as outofdeed has already stated that if the BOS are allowed to put their satisfied date as the date when I exited my TD then instead of having a poor credit file for 6 years, it will now be extended for a further 6 years, to 12 in total?? Surely this in incorrect? One more point to add, the actual confirmation letter from BOS (sent from England may I add) states
" The entry will remain registered on file for a period of six years from the date of default line with the consumer credit act 1974"

Cheers again

Oh no. I must have been sleeping with OutofDeed's posting and Greggy's. I have only just realised the implication of this.

I (perhaps wrongly) assumed that the Trust Deed and all related accounts would 'fall off' 6 years after the date of default on the credit reference report and so I worked to get the date as close to date of signing the TD as possible.

I did see the RED DF notice against each monthly payment but truly did think it was just a monthly record until they received their money and it was reported Satisfied or Partially Satisfied.

I believed the topline information (default date) would be the date to focus on and from which the 6 year timeline would be taken.

If they use the last monthly Red Default record that would be horrendous and there would be seemingly no end to it all since it would continue for 6 years from the last DF notice shown - in my case it only shows PS on the red payment circles in August 2013 (late discharge due to PPI).

I had no idea this would be the case and I only focussed on the Default Date in the topline information.

So, in effect, could this mean the Trust Deed drops off 6 years after date of signing (in my case Aug 2015), but all the accounts remain as defaulted for 6 years after the settlement date (in my case Aug 2019)???????

I would hope that the clarification TDA is looking for tells us that it is the first date the account goes into default and not the last date the red circle DF appears [:(]

This is not just about credit rating - this is about job and career prospects and potential damage.

Sorry, I have completely missed the meaning in this part of the discussion until this morning. It is only 11am and I need wine! (and I rarely drink)

To be fair to the bank they did eventually see what I was saying but your average person in there does not know the legislation its quite clear.

Its not the default date I am challenging, they have reported that correct, its the date of settlement.

I will certainly feedback if the bank follow through on their promise to update the credit file and the response I get from ICO.

Cant believe you get punished for 12 years but respect TDA had a different view.

Oh... I'm not saying its fair or right.

I'm just putting the other side of the coin forwards.

It'll be interesting to see what we learn next week.

Hi
If your accounts have a default date on or around the time you started your TD then they will fall off your credit report 6 years after that ,as mine did. I too had the same concerns as all my accounts were showing as still open and being reported as defaulting every month with an outstanding balance long after they had received their dividends and I was discharged from my TD. Like a lot of people on here I tried in vane to have the banks change them as I thought they would stay with me for a further 6 years. Turns out it was a waste of time and effort as the time starts from the first time the account was defaulted. It matters not when or if it is recorded as being satisfied. I now have a completely clear credit file with all 3 major credit reference agencies which happened very nearly 6years to the day after starting my TD.

Thanks for that, scotland28. That is how I understood it too - the trust deed entry disappears 6 years after entry. The date of settlement of any particular debt is a positive entry anyway and won't adversely affect credit rating.

It's all very confusing really and what I have written above probably wrong, but as it happens am meeting a guy from Experian tomorrow so will see if I can find some answers

absolutely but the 6 months plus in arrears is a negative in any language surely and that is how they are reported it some 1 year after date of trust deed, hence it takes one year more than trust deed for that to drop off

We've submitted an email enquiry to the Information Commissioner's Office summarising the questions that we, collectively, appear to be unclear about.

Once we have a response we'll add an article to the site and signpost it from this thread.

It will be very interesting to hear from Kevin following his meeting with a member of the team at Experian. If we can understand the credit reference agency and data protection angles on this we should be quite close to finding a useful answer.