Has my debt vanished?

Brighton_Grouch

Hi all,

In 2000 I took out a HP agreement on a PC with what was then the HFC Bank (I believe it is now Welcome Finance after being Household Bank for a while)

Over the next 4 years I topped it up a few times when I was young and naive until eventually it was quite a considerable sum.

In 2004 I ran into difficulties and stopped paying. In late 2005 the company caught up with me and I paid a one off payment of £90.

Soon after this I began the process of entering an IVA for my numerous debts and got so far as to filing the paperwork with the court. However, before I could start the plan the IVA admin company called me wanting me to up the payments that I would be forking out every month. Already being at my limit in terms of what I could afford I refused and they simply said I had to so I told them I would like to cancel the agreement. They said fine and I heard no more about it.

Over the next couple of years I paid off all my other debts (yay!) and have been left with this one with Welcome which amounts to about £10,000.

However, I recently got my credit reports from Experian and Expedia and this debt is not listed on either. My Experian report has a listing from 2004 with Welcome, stating the debt is settled without any default. I guess this is from when I topped it up and one agreement was settled with them but another was started.

Here come my questions for you experts....

1) If this debt isn't listed on either of my reports and I haven't been chased on it in over 3 years, what do I do? I have about £4,000 saved up to pay it as I was hoping to settle with them for around £6,000. But if it isn't listed on any credit reports, is it likely to pop up at any point or can I consider this just forgotten about? I ask because the £4,000 would be extremely useful in other areas of my life (We want to have a baby next year and will be getting married in December) but on the other hand, I don't want to go chasing it with them and making myself liable again if it has been forgotten, but if it is likely to rear up sometime, I don't want to have spent the £4,000. Does that make any sense?

2) At the time when I first topped up the loan (Dec 2000) I was sold their payment protection which amount to almost the same as the loan payback. A huge amount considering the sum borrowed. They told me that if I didn't take it out and as I was 18, stupid and wanted money for Christmas, I signed up anyway. I have heard that you get cases of these being mis sold and being annulled? If this is the case then I think over the years I will have paid enough to cover the interest and loan amount. I long ago lost any paperwork regarding the deal. Do I have a case at all?

3) Regarding my aborted IVA. On my credit report it still has a section saying I entered into an IVA which at the time I thought was cancelled. If I wrote to the reference agencies and explanined the circumstances, would I have grounds for having this removed from my report? Again, in my previous life as a complete idiot, I neglected to keep any paperwork. I can't even remember the name of the company I made the arrangement with!

Any help with any of the above would be greatly appreciated.

All the best,

Paul

Brighton_Grouch

Just a quick bump to see if anybody would be so kind as to help with this.

Cheers

Paul

rog2

I'm not too sure how undeclared debt is dealt with in an IVA. Certainly in Bankruptcy (the alternative form of Insolvency) that 'debt' would have been included, whether it was declared or not.

I think you would be best advised to have a word with the Insolvency Practitioner who handled your IVA.

Sorry I can't be of more help.

Good Luck.

MrsTinks

Brighton_Grouch wrote: »

Here come my questions for you experts....

1) If this debt isn't listed on either of my reports and I haven't been chased on it in over 3 years, what do I do? I have about £4,000 saved up to pay it as I was hoping to settle with them for around £6,000. But if it isn't listed on any credit reports, is it likely to pop up at any point or can I consider this just forgotten about? I ask because the £4,000 would be extremely useful in other areas of my life (We want to have a baby next year and will be getting married in December) but on the other hand, I don't want to go chasing it with them and making myself liable again if it has been forgotten, but if it is likely to rear up sometime, I don't want to have spent the £4,000. Does that make any sense?

It won't have vanished - and it won't be statute barred either as you have been paying it in the last 6 years (5 in scotland). I would suggest offering them £3000 and see if you can get them to settle for £4000 (gradually don't let them know you have £4000! Tell them you have had to beg steal or borrow the 3k and "scrape" together another couple of hundred in increments!) It might not show on your credit file but that doesn't mean it doesn't exist sadly...

2) At the time when I first topped up the loan (Dec 2000) I was sold their payment protection which amount to almost the same as the loan payback. A huge amount considering the sum borrowed. They told me that if I didn't take it out and as I was 18, stupid and wanted money for Christmas, I signed up anyway. I have heard that you get cases of these being mis sold and being annulled? If this is the case then I think over the years I will have paid enough to cover the interest and loan amount. I long ago lost any paperwork regarding the deal. Do I have a case at all?

Without the paperword? Hmmmm not sure - you're really best of posting that on the loans board - there is a PPI discussion thread there

3) Regarding my aborted IVA. On my credit report it still has a section saying I entered into an IVA which at the time I thought was cancelled. If I wrote to the reference agencies and explanined the circumstances, would I have grounds for having this removed from my report? Again, in my previous life as a complete idiot, I neglected to keep any paperwork. I can't even remember the name of the company I made the arrangement with!

I would write to the defintiely try and have it removed - after all you never signed the IVA contract so it was never actually legally in place.

Any help with any of the above would be greatly appreciated.

All the best,

Paul

Best of luck with the wedding and family

Brighton_Grouch

Thanks Mrs Tine.

On point 1) though, I haven't paid them a penny in 4 years. Would this make any difference to what you have suggested?

Ames

It shouldn't, in fact it could work in your favour as they'll think it's a long shot getting you to pay so they might be more inclined to do a settlement. Before you pay anything though make sure that you get it in writing that it's a full and final settlement, anything else and they can come after you for the rest.

MrsTinks

No - the statute barred limit is 6 (5 in scotland). You can try offering them less but wouldn't hold much hope. Have they been chasing you for payment in the last 4 years? Have you moved house?
Bearing in mind you are hoping to start a family soon I wouldn't want to be looking over my shoulder for the next 2 years hoping they didn't find me and then possibly get a CCJ or even an attachment of earnings...

LilacPixie

Is HFC now welcome finance?? I never knew that!.

Anyway as Mrs Tine says the debt will not have 'disappeared'. I personally would be tempted to send welcome a subject access request enclosing the statutory payment of £10 to get all information they hold on you. This may well include a copy of the loan agreement.

As for the IVA not gotaclue but if papers were loged in court then possibly the entry is correct.