Old Debts

jod1982

When I was younger I was very stupid with my money, and got loans credit cards, mobile phones etc, and although I started off good, I defaulted on alot of payments.

As a result I received a few CCJ's to my knowledge, and until now have made no attempt to pay these.

Some of this debts might be from 2000. But as I am now older and alot more responable I want to clear up all the mistakes from the past.

I am in a situation to clear most of them as they where little debts about £15,000 max in total I think.

I am unable to get a credit report online as unforunently I just have a savings account and no UK, debt card as I been living abroard and they where not a problem then.

How do I make all this good, and start improving my credit rating straight away.

Tixy

You can get a statutory postal credit report for £2 using a cheque or postal order. You need to get reports from both Experian and Equifax at least.

Before you start offering to pay the debts if you have any debt (without a CCJ) that you have not made a payment to for 6years and have not acknowleged the debt in writing during that time then the debt is classed as statute barred and there is no need for you to pay the debt. It will also not show on your credit report anymore (well it shouldn't- if it does it needs removing). (The timescale is 5years if you are in Scotland).

If your CCJs have not been paid for 6 years then the creditor would need the permission of the court to chase you for these debts again (but you would still owe this money legally).

RAS

Hi

If you have not paid towards any debt for 6 years or more (E&W) or 5 years in Scotland, the debt is statue barred.

This means that it should not be showing up on your credit record and that the creditor is no longer entitled to collect it, although they can legally ask you if you would like to pay it. However, the common practice is to send a letter threatening all sorts of dire consequennces if you do not pay immediately. The OFT has started to clamp down on these comapnies but it still happens.

Com e here isf it starts.

With respect to the CCJs, they are never statute barred but if the creditor has not made a reasonable attempt to collect the debt in the last 6 years, they have to get court permission to pursue the debt.

jod1982

I sort of do not want to get out of paying what I owe, but if it reduces it, I will be happy, the good thing by the sounds is that my credit could be in a better place than I once thought.

Tixy

http://www.nationaldebtline.co.uk/england_wales/factsheet.php?page=25_liability_for_debts_and_the_limitation_act
This factsheet explains the law on statute barred debts.

RAS

Just bear in mind that any company buying debt that is statute barred (rather than original creditors) will have paid pennies in the pound - it has been suggested as little as £60 for a £1000 debt.

So £940 is pure profit if you pay them off and none of that goes to the original creditor.

You could certainly make arrangments for a full and final payment (starting about 15%). Last year some people were offered as low as 5%.

Alternatively pay the equivalent amount of money to a charity of your choice.