If you have an old loan that was written off, it will stay on your CIBIL report for at least 7 years. To remove it, you can get in touch with the lender and pay off the dues. You can then request them to close the loan account. This is the only way to remove a written off status from your CIBIL report.
One way to get it removed is to pay the debt off. Another way is to use debt consolidation or debt settlement. And another way is to agree to pay a lessor amount from a settlement letter. It still will take time for the debt to fall off your report.
Paying it off won't erase this history, but it will change the debt's status to "paid" or "settled," which is generally seen more favorably than leaving it unpaid. Another reason to consider paying written-off debt is to stop ongoing collection efforts.
If you have delinquent debt that's been sent to collections, there might be options. In some cases, you may still be able to negotiate repayment directly with your lender. Working with your original creditor instead of a debt collector can be beneficial. However, this approach won't work for everyone.
The most straightforward method is to settle the outstanding debt. TransUnion, one of South Africa's prominent credit bureaus, suggests that paying off the debt usually results in your name being removed from the blacklist within 7 to 20 days.
This occurs when the creditor has given up on collecting the money owed and has decided to categorize the debt as bad debt, meaning it is a loss for the company. This does not mean you are off the hook for paying the remaining debt.
The truth is that there's no way to remove accurate information from your credit reports ahead of schedule. Whether it's missed payments or charge-offs, they'll stay on your credit reports for seven years. Fortunately, settling debt does not mean your credit will be in the gutter during those seven years.
A written-off status indicates that a lender has given up on recovering the outstanding amount from you due to non-payment of your loan or credit card dues. This negative remark can significantly impact your credit score and future borrowing prospects.
There are other items that cannot be disputed or removed due to their systemic importance. For example, your correct legal name, current and former mailing addresses, and date of birth are usually not up for dispute and won't be removed from your credit reports.
Most negative items should automatically fall off your credit reports seven years from the date of your first missed payment, at which point your credit score may start rising. But if you are otherwise using credit responsibly, your score may rebound to its starting point within three months to six years.
You must pay back the entire outstanding loan amount to remove the 'Written Off' status from your credit report. Further, you need to request a 'No Due Certificate' from the lender and submit it to the CIBIL bureau. To totally delete the status from the credit record, it will take between 7 to 15 working days.
The severity of the issue, the credit reference agency, and the reported information can determine how long you are blacklisted. Negative information on your credit record normally stays for six years before being deleted.
The simplest way to clear your name from the credit bureau is to pay off the debt. According to TransUnion, one of South Africa' biggest credit bureaus, this will usually result in your name being removed from the blacklist within 7 – 20 days.
Are debt collectors persistently trying to get you to pay what you owe them? Use this 11-word phrase to stop debt collectors: “Please cease and desist all calls and contact with me immediately.” You can use this phrase over the phone, in an email or letter, or both.
4) 623 credit dispute letter
A business uses a 623 credit dispute letter when all other attempts to remove dispute information have failed.
A 609 dispute letter is a formal way to request more information about the accounts on your credit report. Sending a 609 dispute letter may help you remove errors from your credit report. Legitimate accounts should stay on your credit report even if you send a dispute letter.
Most states or jurisdictions have statutes of limitations between three and six years for debts, but some may be longer. This may also vary depending, for instance, on the: Type of debt. State where you live.
If you cannot pay off your debt
You can apply for a Debt Relief Order or Bankruptcy Order if you cannot pay your debts because you do not have enough money or assets you can sell. If you cannot pay off your debts, you can be made bankrupt.