Debt help ! Dro?? Statute barred??

callyh26 · 19 March 2012 at 1:50PM

Basically i need some help. After finally facing up to my debt which amounts to around 11,000. After getting all the debt letters i had together i had 16 different creditors, I have then checked my Experian credit file and now find myself at 27! Do companies use someone other than Experian? As only 14 of these accounts are on my experian report, but some big one's such as a Lloyd's TSB Overdraft aren't!? About 3 of the ones on my credit report say the balance is satisfied yet still say the account is in default? After speaking to one of them (Halifax credit card) they say this is because the debt has been sold on? I know i haven't payed anything on these debts in about 4 years, I understand i can have these written off after 6 (statute barred?) but as im at least 2 years off this with many of them i am considering a Debt Relief Order. With 27 different debts and little income as a single mum i think this is my best way forward. As being harassed every day is driving me insane and has basically got to where i dont answer my mobile or open the dreaded debt letters!! Has anyone had experience of a DRO? I know it will affect my credit rating for 6 years but once the debts are wiped in 12 mths time it should start rebuilding? And as my current credit score is 380 i cant see it making it worse?? Any help welcome!! Thanks

MusicalLawyer · 19 March 2012 at 2:06PM

Firstly you really need to check all three credit reports - Experian, Equifax and Call Credit. Different companies use different credit reference agencies.

Regarding your satisfied / defaulted accounts - When you default on an account, it remains as a 'default' for 6 years from the date of the default, even though the account is satisfied/settled. On your credit file the account will say "defaulted on x date" - 6 years from that date will it come off your credit file.

You say you have 27 debts - are you sure that some of these aren't overlapping and you're counting them twice. For example you may be counting the Halifax debt, and then the Debt Collection Agency for Halifax as another debt - even though they're the same thing?

Tixy · 19 March 2012 at 2:09PM

Do companies use someone other than Experian?
Yes - there are 3 credit reference agencies, experian, equifax and callcredit (aka noddle). Each of your creditors could report to 1, 2 or all of them, or none of them.

i had 16 different creditors, I have then checked my Experian credit file and now find myself at 27
When your creditor sells a debt on what should happen is either the creditor carries on reporting, or they stop reporting and the debt collector puts on the same entry and the creditor removes theirs altogether. But sometimes this doesn't happen, check that none of the debts are duplicates (ie same account opening date, same default amount etc)

ones on my credit report say the balance is satisfied yet still say the account is in default? After speaking to one of them (Halifax credit card) they say this is because the debt has been sold on?
If a creditor sells on the debt (and the reporting responsibility) then they could mark your debt as satisfied - if the debt collector its been sold to does not report to this particular credit reference agency they the creditors entry will remain until the 6th year anniversary of the default date.

know i haven't payed anything on these debts in about 4 years, I understand i can have these written off after 6 (statute barred?)
Not written off after 6 years - the debts would still exist, but you do not need to repay them after a 6year period with no payments. or written acknowledgement from you and assuming none have obtained CCJs against you before that 6year period is up

am considering a Debt Relief Order
You will need to be certain that your debts are less than £15k at current balances. Speak to one of the debt advice charities about DROs and whether you would be eligible.

I know it will affect my credit rating for 6 years but once the debts are wiped in 12 mths time it should start rebuilding? And as my current credit score is 380 i cant see it making it worse??
Don't focus on the score - after your DRO is finished in 12 months time then you will at first find it near impossible to get any new credit. After a few years you should be able to get something like a subprime credit card that you can use to start gradually rebuilding your credit history. In 6years time if you've had 1 or 2 subprime items that you've managed well (no missed payments etc) then at that point you should find that you can obtain mainstream credit again.

callyh26 · 19 March 2012 at 2:10PM

Hi, No i have checked them all there all different debts, believe me i have checked Lol

fatbelly · 19 March 2012 at 8:42PM

A DRO is a good option for those that qualify. No visit to court, advice as part of the process, your bank and employer not routinely informed, car protected if worth less than 1k, no payment from income, low fee payable in instalments at the Post Office..

There's a separate board for IVAs/DROs. You may want to post there. You also might want to run your situation past someone from CAB, CCCS or National Debtline - you will need to link with an Approved Intermediary.

Have you read National Debtline's guide

Factsheet Debt relief orders

and the official guide?

Debt Relief Orders

Debt help ! Dro?? Statute barred??

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