We’d like to remind Forumites to please avoid political debate on the Forum.

This is to keep it a safe and useful space for MoneySaving discussions. Threads that are – or become – political in nature may be removed in line with the Forum’s rules. Thank you for your understanding.

📨 Have you signed up to the Forum's new Email Digest yet? Get a selection of trending threads sent straight to your inbox daily, weekly or monthly!

Do I need to be honest about debt that's more than 6 years old?

My debts (which I paid off) are due to fall off of my credit history next month because it's now 6 years since I paid them off/original default date.

Do I need to be honest about them with the banks if applying for any loans/mortgages etc? Or can I in good conscience ignore the question of any previous bad debts?

Thanks in advance
«1

Comments

  • jonesMUFCforever
    jonesMUFCforever Posts: 28,898 Forumite
    Part of the Furniture 10,000 Posts Name Dropper
    Surely it depends on the questions asked on any application for credit.

    If it asks have you EVER defaulted or had late payments on a credit agreement you would need to declare it BUT I don't know how they would find out if it has dropped off your credit files, unless the companies are linked/part of the same financial group.

    As long as you are honest you need have no fear but be aware telling porkies on any application is fraud.
  • Robert_Sterling
    Robert_Sterling Posts: 2,207 Forumite
    Do lenders have to be honest?

    Can they, when checking a potential customers file, make a note of what it says about the potential customer and keep it for ever. In this way they could steer clear of anyone who had ever gone bankrupt even though more than six years had passed.
    ..
  • jonesMUFCforever
    jonesMUFCforever Posts: 28,898 Forumite
    Part of the Furniture 10,000 Posts Name Dropper
    Do lenders have to be honest?

    Can they, when checking a potential customers file, make a note of what it says about the potential customer and keep it for ever. In this way they could steer clear of anyone who had ever gone bankrupt even though more than six years had passed.
    Yes they can if they want to - I'm not talking about what is reported to the CRA's here butif they want to keep internal notes they are allowed to do so and often do.
  • Robert_Sterling
    Robert_Sterling Posts: 2,207 Forumite
    Do I need to be honest about them with the banks if applying for any loans/mortgages etc?

    Only as a last resort. ;)
    ..
  • Wouldn't keeping notes for more than 6 years put them in breach of data protection?
  • jonesMUFCforever
    jonesMUFCforever Posts: 28,898 Forumite
    Part of the Furniture 10,000 Posts Name Dropper
    Wouldn't keeping notes for more than 6 years put them in breach of data protection?
    Why??
    Where in the Data protection Act does it limit the timescale you are allowed to keep information?
  • Just here - on a government website

    Q: How long should organisations keep data for?
    The Data Protection Act says that information should be kept for no longer than is necessary. The Act does not specify what a ‘necessary’ period should be for particular information. Each case would be considered on its own merits. If an organisation is obliged to retain data for a given length of time under any other laws, this should be taken into consideration.

    For example, financial institutes may have to keep some information for up to six years in accordance with the Financial Services Authority regulations. A sole trader, however, may not need to keep information for longer than a month.

    Its on i c o . gov.uk
  • Also - I'm aware of the moral implication. Given the banking industries behaviour in the last few years, I'm also concerned about the immoral application of rules.
  • worried_jim
    worried_jim Posts: 11,631 Forumite
    10,000 Posts Combo Breaker
    when applying for credit most institutions would only ask for 3 years history, also your debt is paid off why worry about it.
  • I'm concerned because it's about to drop off my of my credit reports (next month) WOO! If I do the credit worthiness calculator on the money savings expert site, it asks if I've ever had any bad debt...obviously I have, but I'm not clear whether I'm obligated to report it from June 1st!
This discussion has been closed.
Meet your Ambassadors

🚀 Getting Started

Hi new member!

Our Getting Started Guide will help you get the most out of the Forum

Categories

  • All Categories
  • 352K Banking & Borrowing
  • 253.5K Reduce Debt & Boost Income
  • 454.2K Spending & Discounts
  • 245K Work, Benefits & Business
  • 600.6K Mortgages, Homes & Bills
  • 177.4K Life & Family
  • 258.8K Travel & Transport
  • 1.5M Hobbies & Leisure
  • 16.2K Discuss & Feedback
  • 37.6K Read-Only Boards

Is this how you want to be seen?

We see you are using a default avatar. It takes only a few seconds to pick a picture.