How to Get a Default Removed From Your Record

Stop Debt Collectors How to Get a Default Removed From Your Record

How to Get a Default Removed From Your Credit File

Your credit file is an important piece of information for any company that wants to provide you with financial products, such as loans and mortgages. If you have defaulted on a debt, your creditworthiness becomes a bigger risk for these companies. It is important to understand how to get a default removed from your credit file in order to get your financial file back in good standing.

Navigating the details of your credit file and how companies perceive the information can be complicated. That is why DoNotPay is here to help when you want to work with any debt defaults that you may have.

What Happens When You Don't Pay Your Debt?

If you have failed to pay a debt, the first step that takes place is that the company that you had a payment agreement with will mark the debt as a default after you have missed a specific number of payments. Once you have a defaulted debt on your record, it can stay on your record for up to six years, unless you choose to take action to correct the situation and get the default removed.

Other consequences of letting a debt go into default include:

  • A lower credit rating
  • You could be less likely to receive loans and other financial products in the future
  • Interest rates for borrowing may be higher

How Long Can Default Account Appear on Your Credit File?

If you take no action to dispute a default or to pay the remainder of the agreed amount, a debt default will remain on your credit file for as long as six years. You may be able to work with creditors to get a default removed earlier due to:

  • Being unaware of the debt
  • The debt is small and can be forgiven
  • The debt comes from a predatory loan

How to Get a Debt Default Removed From Your Credit File  

A debt default is placed on your credit file when you have a debt that you have failed to make payments on. However, there are certain circumstances where you can work to get the default removed from your credit file.

Debt Verification

  1. The first step to take in getting a debt default removed from your file is to make sure the debt belongs to you and that you and the creditor are on the same page.
  2. You can request a debt verification letter from the creditor to get the details of the debt, including the date of initial default, who the debt belongs to, and for what specific account.

Contacting Your Creditor

  1. After you have verified that a debt is yours, your best option is to contact the creditor to see if a deal can be reached.
  2. Inform the creditor of either: your good standing with your payments, or that you do not hold an account with that creditor
  3. Depending on the size of the debt, the length of time since the last payment was made, and whether the loan should have even been given in the first place, you can have options for default removal.
  4. If the creditor is unwilling to work with you and your situation, you can work out an alternative payment plan to continue paying the debt at a more affordable monthly rate.

Reporting Mistakes

  1. If you find that a defaulted debt appears on your credit file in error, there are steps you can take to have that default removed from your file so it will not impact your financial future.
  2. If the creditor does not consider the default an error, contact the credit reporting agencies to file the error

Get Help With Your Debt Defaults From DoNotPay

Having a debt in default can seriously impact your financial future. That is why it is important to take steps to resolve the default as soon as possible. If the debt is listed as yours and is a mistake, you can request a debt verification, or you can report the debt collector if the communication has risen to the level of unlawful action.

DoNotPay can help you get started taking care of your debt default in just a few simple steps:

  1. Search "debt collection" on DoNotPay.

     

  2. Answer a series of questions about the debt collectors, including when you were contacted and how you were contacted, so we can determine if they have violated any debt collection laws.

     

  3. Decide which course of action you want to take based on our guidance, such as filing a debt verification request, demanding for the collectors to stop contacting you, or reporting them to a professional trade association.

     

DoNotPay Can Help With Many Major Creditors

Having a financial default on your credit file can impact the way you can use your credit for up to six years. That is why getting help with defaults can make a difference when you need a better credit snapshot for loans, mortgages, and other financial products. DoNotPay can assist with getting defaults taken care of from companies such as

Moorcroft Debt RecoveryDWP Debt ManagementAdvantis Debt Collection
Provident LoansMarston Group HoldingsLowell Financial
Amigo Loans

What Else Can DoNotPay Do?

When it comes to your finances, having everything in order is essential. With DoNotPay, you can get help with everyday financial tasks such as

These are just a few of the tasks that DoNotPay can help with so you can get your finances in order and save money.

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