getting rid of defaults?

thomsmyth

hello,
I have a four defaults which went on to my credit report 5 1/2 years ago. they are not fully paid off. approx £6000 left. Would it be unethical of me to write and ask them to send out my credit agreement just in case they didn't have it so i could get them written off? not that i really care to be honest!! I have been paying them after all which means i fully accept i was the stupid one for getting them. alot of it is charges though. also when they do come off after 6 years. does your credit rating get better? (its fair at mo according to creditexpert) and after 6 years - statute barred? if i stop paying them do i get another default?? don't really understand this bit. If i have to pay them i have to. my debt. These defaults are with dca- tessera. can't complain bout them really to be honest. I pay 160 a month and if im broke one month they let me have a break.

cheers
thom

LilacPixie

the defaults will fall off naturally after 6 years anyway. I think its 6 years to the day the default was registered that it disappears from your file.

Just because the default is not on your file it doesn't mean that the debt no longer exists or is statue barred. Debts are statued barred 6 years (5 in Scotland) since last payment or acknowledgment of the debt in writing.

As far as I know they cannot redefault you but they may be able to seek a CCJ if the court agrees.

YOu could pop over to the bank charges board, read some of the information there and then consider reclaiming some of the charges on your defaults.

GeorgeUK

You have a legal right to request copies of the CCA at any time. Even if you just found you didn't have a copy for your own records.

The defaults should fall off your credit report after 6 years. As far as i am aware, you can only have 1 default per account although i'm not sure what happens after the 6 year point. I'd argue that there was already a default on the account but it is too old to be seen on your credit report if they try to put another default on. Keep a copy of your credit report showing the default information.

A debt becomes statute barred if you have not made payments towards a debt for 6 years, or acknowedged the debt in writing. As you have been making payments, the debt isn't statute barred.

Here's some details on requesting a copy of the CCA.
Details: http://forums.moneysavingexpert.com/showthread.html?t=578486
Template: http://forums.moneysavingexpert.com/showthread.html?p=11636295#post11636295

thomsmyth

thanks,

I always knew that i had to pay them. and am 'happy' to do so. I know that they'll accept a lower payment but hard to save up the money when youre already paying it off. But i might try the cca route and see if they can give me a copy

Thanks again.

thom

fermi

Yep. Only one default should ever be recorded on your credit reference files for n account.

Plus I think it is normally considered unfair practice by the ICO for a creditor or DCA to register a default if the cause of the default occurred more than 6 months previously.

thomsmyth

So if i get the cca and it is unenforcable
can i use it as a tool to pay off say 10-whatever percentage as a final payment?
I heard they buy the debt for about 10%
So ive already paid well over that assuming i offer 20% with an unenforcable debt should they accept?

thanks
thom

fermi

They may be more likely to do a deal.

http://www.moneysavingexpert.com/loans/debt-help-plan

Is your credit agreement challengeable?

Any credit agreement, for example credit cards, loans and catalogue agreements signed before 6 April 2007 have to adhere to a strict format set by the Consumer Credit Act. If this format is not followed you can challenge the enforceability of the agreement with your lender. Examples of errors include signatures and contact details missing from the paperwork and incorrect APR calculations.

Therefore if you are stuck in a high rate, unjust deal, you could consider challenging the agreement for legitimacy. A challenge could result in getting you a better deal, such as freezing or wiping off interest and charges or your lender accepting a ‘full and final settlement' to pay off the loan.

GeorgeUK

You could make the offer, but as the debt is unenforcable, 12 working days after the request if they haven't provided the CCA - you can stop paying.

You could make the 20% offer in Full and final settlement as a gesture of good will, but make sure you get confirmation in writing and that it is full and final - not partial settlement.

thomsmyth

another person on here said because i was paying 160 a month that the dca would be unlikely to accept a smaller full and final payment?
if they do have the ccas what do you reckon i could do?
will it just be a haggling match?

thom

GeorgeUK

They have a choice. If the debt is unenforcable, they could get £0 or they could accept your offer. Even if they do have a copy of the CCA with all the prescribed terms, you could make an offer and see what they say. Some would prefer to get a lump sum of money now rather than wait for it.

thomsmyth

thanks george,
i think i'll get the forms all ready today and send them to see how they get on. Only thing i need is the 20%. ha. which is a valid point actually because i would need to have it first before i send for the ccas. so maybe i wont send them off today. what do you reckon?

thom