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  • FIRST POST
    • megandz
    • By megandz 14th Sep 17, 9:49 PM
    • 11Posts
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    megandz
    Unenforceable debt - no default so what happens
    • #1
    • 14th Sep 17, 9:49 PM
    Unenforceable debt - no default so what happens 14th Sep 17 at 9:49 PM
    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?
Page 1
    • sourcrates
    • By sourcrates 14th Sep 17, 10:59 PM
    • 11,959 Posts
    • 11,445 Thanks
    sourcrates
    • #2
    • 14th Sep 17, 10:59 PM
    • #2
    • 14th Sep 17, 10:59 PM
    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 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/
    • fatbelly
    • By fatbelly 15th Sep 17, 7:28 AM
    • 11,232 Posts
    • 8,398 Thanks
    fatbelly
    • #3
    • 15th Sep 17, 7:28 AM
    • #3
    • 15th Sep 17, 7:28 AM
    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.
    • megandz
    • By megandz 15th Sep 17, 8:32 AM
    • 11 Posts
    • 3 Thanks
    megandz
    • #4
    • 15th Sep 17, 8:32 AM
    • #4
    • 15th Sep 17, 8:32 AM
    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 you
    • sourcrates
    • By sourcrates 15th Sep 17, 9:21 AM
    • 11,959 Posts
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    sourcrates
    • #5
    • 15th Sep 17, 9:21 AM
    • #5
    • 15th Sep 17, 9:21 AM
    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 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/
    • StokieBecks
    • By StokieBecks 15th Sep 17, 9:24 AM
    • 4,264 Posts
    • 24,934 Thanks
    StokieBecks
    • #6
    • 15th Sep 17, 9:24 AM
    • #6
    • 15th Sep 17, 9:24 AM
    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?
    • StopIt
    • By StopIt 15th Sep 17, 10:15 AM
    • 880 Posts
    • 811 Thanks
    StopIt
    • #7
    • 15th Sep 17, 10:15 AM
    • #7
    • 15th Sep 17, 10:15 AM
    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?
    Originally posted by StokieBecks

    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.
    • sourcrates
    • By sourcrates 15th Sep 17, 11:42 AM
    • 11,959 Posts
    • 11,445 Thanks
    sourcrates
    • #8
    • 15th Sep 17, 11:42 AM
    • #8
    • 15th Sep 17, 11:42 AM
    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?
    Originally posted by StokieBecks
    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.
    Last edited by sourcrates; 15-09-2017 at 11:45 AM.
    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/
    • glentoran99
    • By glentoran99 15th Sep 17, 12:02 PM
    • 4,601 Posts
    • 3,601 Thanks
    glentoran99
    • #9
    • 15th Sep 17, 12:02 PM
    • #9
    • 15th Sep 17, 12:02 PM
    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 wiped
    • StopIt
    • By StopIt 15th Sep 17, 12:22 PM
    • 880 Posts
    • 811 Thanks
    StopIt
    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.
    Originally posted by sourcrates

    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.
    • megandz
    • By megandz 15th Sep 17, 7:12 PM
    • 11 Posts
    • 3 Thanks
    megandz
    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 :-)
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