Can a Defaulted Credit Score Due to Covid-19 Related Circumstances be Removed in the UK?

Question from K, Can a Defaulted Credit Score Due to Covid-19 Related Circumstances be Removed in the UK?

Answer from AI:

In the UK, the law does not specifically provide for the removal of a default from your credit score due to circumstances related to Covid-19. However, there are general guidelines and procedures that may be applicable in your situation.

Understanding Credit Score Defaults

A default on your credit score indicates that you have failed to meet the repayment terms of a credit agreement. This is typically recorded on your credit file for six years, regardless of whether you have subsequently paid off the debt.

Impact of Covid-19

The Financial Conduct Authority (FCA) has provided guidance to firms on how to treat customers impacted by Covid-19. This includes understanding a customer’s situation and considering payment deferrals or reduced payments. However, this guidance does not specifically address the removal of defaults from a credit score.

Steps to Address the Default

1. Contact the Credit Provider: The first step is to contact the provider of the credit (in this case, the SIM card provider) and explain your situation. They may be able to provide a solution, such as backdating a payment deferral.
2. Dispute the Default: If the credit provider is not helpful, you can dispute the default with the credit reference agency. You will need to provide evidence to support your claim, such as proof of your inability to access the SIM card due to Covid-19 restrictions.
3. Seek Professional Advice: If the default is not resolved, you may wish to seek advice from a legal professional or a debt advice service. They can provide guidance based on your specific circumstances.

Legal Advice

While this information provides a general overview, it is important to consult with a legal professional for personalized advice. The law surrounding credit scores and defaults is complex and can vary depending on your specific circumstances. A legal professional can provide advice tailored to your situation and help you understand your rights and options.

Please note that while the FCA has provided guidance to firms during the Covid-19 pandemic, this does not guarantee that a default can be removed from your credit score. The decision ultimately lies with the credit provider and the credit reference agency.