I was wondering if anyone could help me with a situation that is giving me a lot of trouble at the minute?

Back in 2011, I took a credit card with Vanquis Bank. Being young and silly, I didn't really care much and ended up getting a default.

After this default was applied, I then spoke to Vanquis and agreed a settlment for 85% of the outstanding balance and the result was that they would close the account and that was the last I would hear of it. (I am now fully aware that it stays on my report for 6 years)

I have been to the Ombudsman to try and get the default off my report but as the bank sent all the paperwork etc and have copies, it cannot be removed.

I have now come to accept that this is on my report for another couple of years. However, when I look at my report through Noddle. The account is under the 'open' accounts and each month that my report is updated, it is showing as defaulted, it has been doing this, since the date that I settled the account in 2011.

This, (I believe it is this as there is nothing else I have on there that I believe would be causing problems, more defaults etc..) is playing havoc with my credit rating, and I cannot get credit for anything (I would like to try and get a mortgage)

My real question is, should this be showing as an open account that is defaulting each month. Or should it be closed and showing as settled?

I would really appreciate some help on this.


  • 3
    When you agreed to the 85% settlement with the bank, have you actually paid them this money yet? Did you get this agreement in writing?
    – Ben Miller
    Commented Jul 26, 2015 at 11:23
  • The 85% has been paid to the bank. I have a document from the bank saying that the account is closed and in credit of £0.00. Does that help? Commented Jul 26, 2015 at 11:29
  • It should show as settled -- but it should still show on you credit history as evidence that you were irresponsible. If you want a mortgage, you're going to have to go through the process of gradually rebuilding your reputation, starting with small and "guaranteed" amounts (Cards that have you basically borrowing from money you have deposited) and building it up as you show you can be trusted. Expect it to take multiple years, unless you can find a program specifically for people in your position. Sorry, but it's up to you to prove trustworthiness.
    – keshlam
    Commented Jul 26, 2015 at 14:38

1 Answer 1


Edit this applies to the US, but it looks like you are not. I will leave my answer for reference to US credit:

You can challenge the "open" status if you like , but your score is only going to improve if the item is removed all-together. In the US the negative will stay on the credit report for 7 years from your date of last payment or date of settlement.

If you've not sent any disputes with this trade line it's worth a try, since you have a legitimate reason to dispute.

Dispute with each of the credit reporting agencies: " Hello, the following trade line on my credit report shows as open, even though this account was paid and closed. Please update or remove this item from my report. Vanquis account number: 12345678"

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