Unenforceable debt - no default so what happens
megandz
Posts: 11 Forumite
Hi, I have an IDEM Servicing account for an old MBNA credit card. They have written to advise the debt is currently unenforceable as they dont have the CCA. What happens now? There is no default on the account but there is 10,000 of arrears on a balance of 10100. (They didnt issue default due to extenuating circumstances involving a suicide) . I cant afford to pay more than the 15 I pay every month. My father may pay 1000 to clear it but I doubt they would accept it. But would not having the CCA force their hand?
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Comments
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Hi,
If they have no valid credit agreement then the debt cannot be enforced through the courts, so if you wish, you don't have to pay them anything and can just walk away.
In time the debt will become statute barred.I’m a Forum Ambassador and I support the Forum Team on the Debt free wannabe, Credit file and ratings, and Bankruptcy and living with it boards. If you need any help on these boards, do let me know. Please note that Ambassadors are not moderators. Any posts you spot in breach of the Forum Rules should be reported via the report button, or by emailing forumteam@moneysavingexpert.com. All views are my own and not the official line of MoneySavingExpert.For free non-judgemental debt advice, contact either Stepchange, National Debtline, or CitizensAdviceBureaux.Link to SOA Calculator- https://www.stoozing.com/soa.php The "provit letter" is here-https://forums.moneysavingexpert.com/discussion/2607247/letter-when-you-know-nothing-about-about-the-debt-aka-prove-it-letter0 -
It'll stay on your credit file but as there is no default, should not make much impact.
Obviously keep that letter safe as there is the possibility they will sell the debt to a debt buyer, who will try to collect on it.0 -
Thank you both for your help :-)
its shows on the credit file as an arrangement to pay with over six months arrears which, while not as bad as a default, is bad. If I had a lump sum to do a full and final - assuming they took it, would it then go away?
I dont think it can become statue barred as I have been paying 15 per month for years.
I really want rid of this debt as its the only one hanging over since those dark days. The other two put a default in place and then took F&F so the debts have gone.
Any ideas would be great, thank you0 -
It wouldn't go away, it would just show as satisfied.
It would become statute barred after 6 years of non payment (Limitations act 1980).
You could make a small offer to settle it if your credit report is important to you.
Most people just leave unenforceable debts alone and ignore them until time removes them from there file.I’m a Forum Ambassador and I support the Forum Team on the Debt free wannabe, Credit file and ratings, and Bankruptcy and living with it boards. If you need any help on these boards, do let me know. Please note that Ambassadors are not moderators. Any posts you spot in breach of the Forum Rules should be reported via the report button, or by emailing forumteam@moneysavingexpert.com. All views are my own and not the official line of MoneySavingExpert.For free non-judgemental debt advice, contact either Stepchange, National Debtline, or CitizensAdviceBureaux.Link to SOA Calculator- https://www.stoozing.com/soa.php The "provit letter" is here-https://forums.moneysavingexpert.com/discussion/2607247/letter-when-you-know-nothing-about-about-the-debt-aka-prove-it-letter0 -
But Sourcrates if it has an AP marker on does that not stay on your file until 6 years after the debt is settled? Meaning it will never disappear from the file?£2 Savers Club for 2022 #120
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StokieBecks wrote: »But Sourcrates if it has an AP marker on does that not stay on your file until 6 years after the debt is settled? Meaning it will never disappear from the file?
Indeed.
If the account isn't closed, it wont fall off the files until 6 years post closure.
Write to IDEM/MBNA asking for a Default to be backdated to when the problems started. It may have looked like a good idea at the time, but avoiding a default has caused you more troubles really as the debt would be off your credit file by now had it been marked as a defaulted account.
In debt and looking for help? Look here for the MSE Debt Help Guide.
Also, If you need any free and impartial debt advice, the National Debtline, Stepchange, and the CAB can help.0 -
StokieBecks wrote: »But Sourcrates if it has an AP marker on does that not stay on your file until 6 years after the debt is settled? Meaning it will never disappear from the file?
Well its a 10k debt, rarely are things clear cut, the Op must choose which is more important to them, having a cleaner credit file, or not having to pay out 10k.
If its the former, then follow "stop its" advice, and get the default, other options are to live with it and walk away from the debt, or make an offer to settle.I’m a Forum Ambassador and I support the Forum Team on the Debt free wannabe, Credit file and ratings, and Bankruptcy and living with it boards. If you need any help on these boards, do let me know. Please note that Ambassadors are not moderators. Any posts you spot in breach of the Forum Rules should be reported via the report button, or by emailing forumteam@moneysavingexpert.com. All views are my own and not the official line of MoneySavingExpert.For free non-judgemental debt advice, contact either Stepchange, National Debtline, or CitizensAdviceBureaux.Link to SOA Calculator- https://www.stoozing.com/soa.php The "provit letter" is here-https://forums.moneysavingexpert.com/discussion/2607247/letter-when-you-know-nothing-about-about-the-debt-aka-prove-it-letter0 -
Idem were one of mine that didn't mark it as AP and when I settled it was marked settled not satisfied, the only history showing on the whole account was good, the MBNA period was wiped0
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sourcrates wrote: »Well its a 10k debt, rarely are things clear cut, the Op must choose which is more important to them, having a cleaner credit file, or not having to pay out 10k.
If its the former, then follow "stop its" advice, and get the default, other options are to live with it and walk away from the debt, or make an offer to settle.
The OP can do both. Get them to backdate a default, and because it is now unenforceable they'll clean their credit file and not have to pay or settle on the cheap. Of course IDEM or MBNA may not play ball but if you don't ask, you don't get.
In debt and looking for help? Look here for the MSE Debt Help Guide.
Also, If you need any free and impartial debt advice, the National Debtline, Stepchange, and the CAB can help.0 -
Thank you everyone. MBNA won't issue default as they said the agreement never broke down - I agreed a reduced payment and kept to it. The FOS agreed with MBNA.
I asked IDEM why they didnt default it - they said it wasnt their practice to default an account if suicide was an issue (my child tried to commit suicide resulting in my having to give up work and thus starting to pay 1 per month.). They have the account on an AR with arrears which looks awful. But then I have a 10k debt which I havent repaid so it's my fault too.
I think I will try writing to them and asking for the default to be marked on the account as it is much better than an AR with arrears. I will also offer the payment to clear it and see what they say.
Thank you everyone :-)0
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