Confused and would appeciate advice re: default/DMP/credit/F&F

hanb · 27 April 2015 at 2:22PM

Hi all,

I'm hoping someone can help me. I thought I understood a situation I'm in but now I don't!

About 12 years ago, when I was 16, Halifax gave me £1000 which I happily spent and didn't pay back (oops!). It got the point I was getting charges and interest and I contacted CCCS to arrange a payment plan. I have since been paying £1 a month and had actually just forgotten all about it.

I just decided I should have a look at my credit file and saw that it states I defaulted in October 2010 (which is at least 3 years after I was in trouble). I presume this is the point Halifax passed the debt to Cabot Financial although I don't have any paperwork to hand to check this but the timing seems right. I have continued to pay the agreed £1 a month as a standing order (I really had forgotten about it until recently) and so I thought there shouldn't be a monthly default each month.

I know this will drop off my file next year and that it's only a small amount but I'm worried it will hamper my plans to get a mortgage before then?

I was going to offer a F&F to them to clear this finally but I wanted to know whether it's right to be showing as a default and whether any default causes issues or does it depend on amount etc?

I just don't really understand how it all works when I thought making the agreed payment each month was what mattered.

I'm not sure if any of that makes sense, apologies if not! I think I just want to know if what's showing is right, what affect that has before contacting them to make a F&F offer...

Thanks in advance for any patient people willing to help a stupid person

Jon81 · 27 April 2015 at 3:03PM

Erm, 16? I think you'd have grounds to challenge its entire validity wouldn't you?

sourcrates · 27 April 2015 at 4:29PM

Hi,
Legally you can't have credit at 16 unless an adult stands as a guarantor for you.

It's a bit of a grey area when you reach the age of 18, if you become liable for that debt or not, personally I don't think you do, my advice would be to write to the DCA, stating you were 16 at the time credit was granted, enclose a copy of your birth certificate, if you can, and advise them the debt would be unenforcable, and invite them to prove otherwise.

I suspect the debt will quietly disappear, and you won't hear any more about it.

hanb · 27 April 2015 at 4:40PM

I now have a horrible feeling I was 18 and not 16. I just remember I was still at sixth form and definitely too stupid for it!

I'll go back through my paperwork and double check I'm not telling fibs. I was going to change my current account from HSBC (no overdraft) to Halifax and they said it was standard when switching to allow room for any errors.. I know I was stupid for spending it like it was free money - I definitely learned my lesson and haven't been so stupid again!

If I find out I was 18, where do I stand with the whole default side of things? Is the account in default from the moment I started paying £1 a month until the point it's either paid off in full or drops off my account next year? I'm not sure where I got my understanding of it not defaulting if you were keeping up to date with a payment plan.

sourcrates · 27 April 2015 at 4:45PM

Ok, assuming you were 18, a creditor can default you at any time, after you stop making contractual payments, the "cause of action", the point a creditor could take legal action, for non payment, is not the same as the default date, in your case I think it should of been defaulted earlier, in which case you can complain to the lender, and have the date rectified.

Scottishmummy · 9 January 2016 at 11:48PM

Wrong thread, sorry.

Confused and would appeciate advice re: default/DMP/credit/F&F

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