Why don’t the default dates on my accounts match my insolvency?

If you enter insolvency, it’s normal for all accounts included in it to remain on your credit report. Your report will show the actual status of each account, as reported by your lenders to the credit reference agencies. What normally happens is they’re marked as defaulted in line with the date your insolvency started, and will stay on your credit report for six years from the date of default.

Although lenders will often default your accounts within a month of being included in your insolvency, we see many instances where this process takes significantly longer. It’s entirely up to the discretion of the lenders as to when your accounts go into default, irrespective of your insolvency. But the lender does have an obligation to make sure that what they are reporting to the credit reference agencies is accurate and reflective of the actual status of the account.

It’s important to remember that the accounts and the insolvency are treated as separate entries for the entirety of their reporting periods. So, if you believe an account’s default date is incorrect, you’ll still need to speak to the lender to request that they change it. This isn’t something that you’d be able to sort with your insolvency practitioner.

If a lender accepts that the default date should be amended to match the insolvency start date, they should agree to update the credit reference agencies. And that will usually filter through to your credit report within 4-6 weeks.