There was an overdraft but it was within the agreed limits - or only slightly over. Now the whole overdraft has been withdrawn.

Have you been continuing to use the account and paying in regularly since you signed the trust deed claree? If so then I'm afraid you may still be liable for this debt as it is effectively a post-TD debt.

Hi Kevin,

I have not touched the account since I signed my trust deed as advised by my trust deed guy at the time.

This shouldn't be a problem then Claree_x.

You may wish to ask your trust deed firm to contact them again and ask them to cease making direct contact.

Questions about Default Notices have arisen quite often here in the trust deed forum.

One of my colleagues has been researching the subject with a view to adding an article to the site on this very subject.

Here's some of what we learned (the full article will go online next week):

The Information Commissioner's Office (who oversee the Data Protection Act) have told us:

1 - Default Notices can be issued at any time by a lender, but if they are issued more than a few days after a borrower signs a trust deed they should be backdated to the starting date of the trust deed.

2 - It may not be appropriate for a Default Notice to be marked as being "satisfied" once a trust deed has been completed. This is because the lender had little option other than to accept a reduced sum of less than the original loan balance. They are therefore entitled to reflect this on a credit file using terms like "partially satisfied" or "partially paid".

Hiye,

So when is the credit file totaly cleared and can I start with a 'clean slate'? In other words if I wanted a remorgage for my property how long would I likely have to wait from the start of the TD? Thanks for your answers.

Hi Nora1304.

It's really impossible to say at what point you'll be able to obtain a mortgage; as well as your credit rating it will depend on lending criteria at the time, your income, your commitments, how much you seek to borrow, the size of deposit you can offer, the loan-to-value of the property etc etc.

A "clean slate" may not be quite what it seems either. Any negative credit events (the start of a trust deed, the issue of a default notice etc) will not appear on your credit file around six years after they first appear. That will be very helpful. However your credit rating doesn't just depend on bad events, it also depends on positive use of credit as well. For example, regular on-time payment of a mortgage, mobile phone contract, credit card etc will all demonstrate positive use of credit which will in general enhance your creditworthiness (so long as significant credit balances do not build up).

I apologise that I haven't answered your question directly. In general terms the passage of time, some effort to rebuild some good credit history after a trust deed, ensuring your credit record is accurate, and saving up the biggest deposit that you can, will maximise your chances when the time comes.

Hi-the following is a link to a possible bank account (link removed)

This offers a credit builder service where the monthly fee is 'lent' to you then your repayment of it is registered as a paid loan agreement. only one part of the equation but might help?

Hi Pamjo.

Thank you for helping Nora1304 out with that link. This product has been mentioned a few times in the forum.

It's not a problem, but the link has been removed. We ask members not to post external links in the forum because they tend to become "broken" over the course of time which is frustrating for visitors in the future.

If anyone wants to review Pamjo's suggestion please Google "My Cashplus".