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  • FIRST POST
    • brendon22uk
    • By brendon22uk 20th Mar 17, 10:57 PM
    • 11Posts
    • 0Thanks
    brendon22uk
    1st credit debt collector
    • #1
    • 20th Mar 17, 10:57 PM
    1st credit debt collector 20th Mar 17 at 10:57 PM
    Hi all,

    I just received a letter this morning from 1st credit regarding a payday loan i took out back in Feb 2012. Question is do I even bother contacting them to clear the £230 balance?

    Looking on my credit file it shows as settled/closed at £0 and due to drop off Feb 2018.

    What are the likely chances the debt collector will leave a default on this account if i dont pay?

    If they do, then what date is likely to be registered as default, Feb 2012? or a future date i.e. April 2017?

    If the latter then i will pay them tomorrow, if not, then ill take the default if i get one then wait when it drops off in 2018.

    Help will be appreciated, many thanks

    p.s. cant believe its taken them 5 years to chase me.
    p.s (2) looking to get a mortgage next year
Page 1
    • Arleen
    • By Arleen 21st Mar 17, 12:03 AM
    • 927 Posts
    • 684 Thanks
    Arleen
    • #2
    • 21st Mar 17, 12:03 AM
    • #2
    • 21st Mar 17, 12:03 AM
    Pay them. You clearly can afford it and you owe the money.

    If you need more practical reasons to repay what you owe, they are likely to take you to court next, and then not only you will have to pay a whole lot more, but also get to enjoy shiny CCJ entry on your credit file for 6 years.
    • nic_c
    • By nic_c 21st Mar 17, 9:24 AM
    • 845 Posts
    • 521 Thanks
    nic_c
    • #3
    • 21st Mar 17, 9:24 AM
    • #3
    • 21st Mar 17, 9:24 AM
    So the debt has most likely been sold on. If you get a default it is likely to be this year, and once on will stay - the defence of having the money won't remove it and whilst many people have used willing to pay in full if the default gets removed, usually it isn't.

    You are aiming to get a mortgage and you have the funds to pay, so it depends on whether you want to gamble and it cost you more in the long run due to the potential default been registered, rather than pay now.

    Yes its taken 5 years, and essentially you've had an extension on your loan for that time. You don't say if you have moved since you took out the PDL, but if you have and the CRA's register links between the two addresses (e.g. utilities, banks, etc that you updated the address with when you moved) 1st credit are probably confident its you. If the apply for a CCJ at you last known address, you may not know about it until you see it on your credit report and may be 30 days old before you realise and try to take action.

    Personally I wouldn't risk it because on the mortgage impact. It is one thing gambling because you can't afford to pay, but if you can, and doing so will cause less financial headaches in future, then not sure why you are still pondering.
    • sourcrates
    • By sourcrates 21st Mar 17, 12:15 PM
    • 11,604 Posts
    • 11,172 Thanks
    sourcrates
    • #4
    • 21st Mar 17, 12:15 PM
    • #4
    • 21st Mar 17, 12:15 PM
    1st credit are notorious for taking legal action on nearly statute barred debts.

    If your looking to get a mortgage, I would not risk it for 200 odd quid.
    I'm a Board Guide on the Debt-Free Wannabe, Credit File And Ratings, and
    Bankruptcy And Living With It, boards. I'm a volunteer to help the boards run smoothly, and I can move and merge posts there.
    Board guides are not moderators and don't read every post. If you spot an abusive or illegal post then please report it to forumteam@moneysavingexpert.com. Any views are mine and not the official line of MoneySavingExpert.com.

    For free debt advice, contact either : Stepchange, National Debtline, or, CAB.
    For Legal advice see : http://legalbeagles.info/
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