Goodwill Letter To Remove Charge Off Template for England and Wales

A Goodwill Letter to Remove Charge Off is your formal request to creditors asking them to voluntarily remove a charge-off entry from your credit file. While creditors have the right to report accurate information to credit reference agencies under England and Wales law, they may choose to remove negative entries as a gesture of goodwill when you demonstrate improved financial responsibility.

When do you need this document?

You need this letter when you have a charge-off on your credit report that you want removed after settling the debt. This is particularly useful if you've maintained good financial standing for several months or years following the charge-off, have experienced genuine hardship that led to the original default, or are applying for important credit such as a mortgage where the charge-off significantly impacts your application. The letter is most effective when you can demonstrate a clear pattern of improved financial behaviour and have a legitimate reason for the original financial difficulties.

Key legal considerations

Under the Consumer Credit Act 1974, creditors must report accurate information to credit reference agencies, but they retain discretion over goodwill removals. Your letter must be truthful and not request removal of accurate information under false pretences, as this could constitute fraud. The Data Protection Act 2018 and UK GDPR govern how your personal financial information is handled during this process. Include specific account details, payment history, and circumstances leading to the charge-off. Be prepared that creditors are not obligated to grant your request, and multiple attempts may be necessary. Consider the Limitation Act 1980 timeframes, as very old debts may have different considerations for removal.

Legal requirements in England and Wales

Your goodwill letter must comply with FCA regulations under CONC rules, particularly regarding fair treatment of customers in financial difficulty. Include your full personal information, complete account details including account numbers and original creditor information, and accurate payment history both before and after the charge-off. Provide a clear explanation of the hardship circumstances that led to the original default, evidence of your improved financial position, and a specific request for charge-off removal. Ensure all information is accurate and verifiable, as false statements could have legal consequences. Send the letter to both the original creditor and any debt collection agencies involved, keeping copies of all correspondence for your records.