A default is a formal record placed on a person's credit file when a lender considers a debt to be in serious arrears. In the United Kingdom, defaults are reported to credit reference agencies and remain visible for a fixed period, regardless of whether the underlying debt is later paid.
This article explains how the default system works, the legal framework that governs it, and the key rules around timing, removal, and disputes.
Quick Answer (Read This First)
- The Golden Rule: A default stays on your credit file for 6 years from the date of default.
- Paying It Off: Paying the debt does not remove the default early. It just marks it as "Satisfied". The 6-year timer does not stop or reset.
- Automatic Removal: After 6 years, the default vanishes automatically. You usually do not need to ask.
IMPORTANT
Default Date vs Missed Payment Date: The 6-year clock starts from the "Default Date" (when the lender formally defaulted the account), which is often 3-6 months after your first missed payment.
How the System Works
The Process
- Missed Payments: You miss payments for 3-6 months.
- Default Notice: Ideally, the lender sends a statutory notice giving you 14 days to pay (under the Consumer Credit Act 1974).
- Registration: If unpaid, the default is registered with CRAs (Experian, Equifax, TransUnion).
- Retention: It sits on your file for 6 years.
Satisfaction vs Removal
- Satisfied: You paid the debt in full. Better for mortgage applications, but the default is still visible.
- Partially Settled: You made a deal to pay less than the full amount.
- Unpaid: You paid nothing.
All three statuses disappear at the same time: 6 years from the start date.
Key Rules, Thresholds, and Timelines
The 6-Year Rule
This applies across all three agencies and all four UK nations.
- Example: Default registered Jan 1, 2020.
- Removed: Jan 1, 2026.
- It does not matter if you pay it off in 2025; it still vanishes in 2026.
Statute Barred vs Credit File
These are two separate clocks:
- Credit File: Visible for 6 years.
- Statute Barred (Legal): In England/Wales, a debt becomes unenforceable after 6 years of no contact/payment. In Scotland, it is 5 years.
- Note: Even if a debt becomes "Statute Barred", the default might still arguably be on your file for a few more months if the default date was registered late.
Common Points of Confusion
"Can I get it removed early?"
Generally, no. Unless there was a genuine error (e.g., you never owed the money, or they sent the Default Notice to the wrong address), the 6-year rule is strict.
"Re-aging" or "Re-registering"
A debt collector buying your debt cannot restart the 6-year clock. They must use the original default date from the original lender. If you see a new date, you should Dispute the Incorrect Marker.
"Partial Settlement"
Paying 50% to clear the debt marks it "Partially Settled". While the balance hits £0, some lenders view "Partial" settlement negatively compared to "Full" satisfaction. However, both are better than "Unpaid".
Important Exceptions
- Scottish Prescription: In Scotland, debts are extinguished after 5 years. However, the credit file entry typically follows the UK-wide 6-year rule.
- Notice of Correction: If you defaulted due to illness or redundancy, you can add a 200-word note explaining this. Human underwriters (e.g., for mortgages) may view this sympathetically.
What This Means in Practice
- Check Your Dates: Look at your Statutory Credit Report to find the exact "Default Date".
- Don't Wake Sleeping Dogs: If a default is 5 years and 11 months old, paying it now updates the status to "Satisfied" but it will fall off in 1 month anyway.
- Mortgages: High street lenders often reject applicants with active defaults. Specialist lenders may accept "Satisfied" defaults over 2 years old. (See: How Long After a Default Can You Get a Mortgage).
FAQ
Does paying remove the default?
No. It changes the status to "Satisfied", but the entry remains until the 6-year anniversary. (See: Why Score Didn't Improve).
When does the 6 years start?
From the date the lender formally registered the default (usually 3-6 months after arrears began).
Can a debt collector restart the clock?
No. They must respect the original default date.
What if the date is wrong?
You can raise a dispute with the CRA or lender to have the date corrected to when the default actually occurred.
Moving on? Learn how to Rebuild Your Credit File after the 6 years expire.
