Help with paying CCJ's and Defaults?

Renrahs · 20 June 2016 at 10:44PM

Hi all,

First post so here goes.

I am desperately trying to improve my credit file and finally become debt free.
I was aware that I had a few defaults dating back to 2010/2011. Through poor choices I chose to ignore them and hope that within 6 years they would drop off of my credit file.....
Bad choice! As now that I am older and wiser, a few of these have come back to haunt me. Upon checking my credit file for the first time recently I was surprised to see that some of these defaults have turned to CCJ's! Gutted as I have not received a single letter from the DCA or County Court and there was less than a year for the defaults to drop off!

Anyways I would like to pay them all but have a few questions:

In total I have 3 CCJ's and 3 defaults. (Each default has less than a year before the 6 years is up)

My credit file shows both the defaults and the CCJ for the same debt. Should it be one or the other? So if I pay the CCJ will it show as settled/satisfied and the default removed? Should the default even be there as it has turned into a CCJ?

Also can someone explain the full and final settlement? If it is worth making an offer, however I would like it to show as satisfied and not partial?

Is there any point paying off the 3 defaults as they have less than a year left to expire? Is this risky? I do not want them turning into CCJ's also!

Does anyone have any other advice? Here is a breakdown of the debts and dates:
CCJ's
08/02/2016 £422 County Court Business Centre
27/08/2014 £1,505 County Court Business Centre
05/03/2014 £1,436 Northampton

Defaults
16/10/2010 £285
04/05/2011 £582
31/03/2011 £1084

What would you do in my situation? Any advice is greatly appreciated! Thanks in advance!

National_Debtline · 21 June 2016 at 9:48AM

Hi

A debt which you stopped paying and which then went to the stage of CCJ should show both the default and the CCJ on your credit reference file. The default is a reflection of your payment history, whereas the CCJ shows a CCJ was obtained. If you pay the debt off in full both the default and the CCJ will remain on your credit file until they drop off after 6 years of being on there. They should both be marked as satisfied if you pay them off in full.

A full and final settlement is where you’re asking the creditor to accept a reduced amount but consider the debt to be fully settled and not pursue you for further payment. This will show as partially settled on your credit reference file as it was not actually paid in full. Your credit reference file should show accurate information.

It’s difficult to say whether the old defaulted debts you have will get to the stage of a CCJ as it’s up the creditor or debt collection agency. It is possible a claim could be made against you so the safest bet is to pay them off, or make full and final settlements if you can. On the other hand, you should be contacted prior to any court action so you could wait and make payment offers if that happens. One issue could be if the creditors have an old address for you as they would just send any correspondence or a court claim to the last known address.

James
@natdebtline

Renrahs · 21 June 2016 at 8:53PM

Thanks James.

Do you know whether it's possible to offer a full and final settlement for approximately 80% of the debt and ask for it to be marked as settled rather than a partial? Is there room for negotiations? I hope that makes sense. Thanks

National_Debtline · 22 June 2016 at 5:30PM

Hi Renrahs,

James isn't available at the moment so I thought I would jump in. You can approach the creditors and make an offer of 80% and ask them to mark it as settled but it is at the creditors discretion. They are obligated to report accurate data to the credit reference agencies, so in all probability, if you offer/ pay less than 100% it will be marked as a partially settled account.

If you can pay them in full and want them to show as fully settled then you should write to each debt, confirm the balance owing and then send a payment for that amount (assuming there are no discrepancies). Keeps copies of everything for 6 years and then keep an eye on your credit file to make sure it is all updated correctly. Good luck,

Laura
@natdebtline

Help with paying CCJ's and Defaults?

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