store card debt

bla111

Hi all, have a store card from a few years ago (edge card) with no more than £400 on it. Recently been chased for the debt by a collections agency......they say they will have the debt for a lump sum payment or for every £100 i pay they deduct another £100 from the account, i know it equates to the same. Just looking for advice on what to do? do i pay the half or try to negociate with them further?

never-in-doubt

When did you last pay? Have they defaulted you? Are you in arrears, i.e. why is a DCA chasing you? Tell us more and we can help you more......

bla111

yes its been defaulted. stopped paying maybee 2 years ago when i lost my job and never restarted the payments. never heard anything about the debt untill recently.

never-in-doubt

bla111 wrote: »

yes its been defaulted. stopped paying maybee 2 years ago when i lost my job and never restarted the payments. never heard anything about the debt untill recently.

Can you confirm (from your credit file)

Date of last payment?
Date of default?

You have a couple of choices really, you can pay or make an offer to pay which would still leave the default outstanding meaning you will struggle to get credit for 6 years from default date.

OR

You can ignore them and not do anything in which case 6 years after last payment or default date (whichever occurs 1st) the debt would become Statute Barred meaning it is gone - forever - but the key there is you cannot pay anything or acknowledge the debt.

If you wish to make an offer, and see if they will remove the default as part of the deal then you send a letter like this: 8. Default Removal - Offer of F&F Settlement

In doing so though, you rule out Statute Barred meaning 6 years would start from the day you send the letter (acknowledged the debt).

Really, it all depends what dates are on your credit file. A good example is this:

I got a card in 2000, last paid into in Feb 2004 but got a default in July 2007. If I ignore the debt then in February 2010 it will become statute barred. If I pay, then the default will remain until July 2013.

In the above example, it is clear that avoiding repayment would be the best option as the default would go in 2 months (Feb 2010) as opposed to 3 years (July 2013)

Does that make sense to you? Hope so!

bla111

i've also got a more recent debt through a contract mobile phone. I had a bit of a despute over a bill with them, broke the sim up and changed to prepay. long story short i owe £157 + £500 on the contract, they say if i pay the £157 they will reduce the £500 drasticly. Could i convince them to call it a day if i pay the £157?

bla111

yes that makes sense to me! thanks i will check my credit file asap! and update on that.

never-in-doubt

You seem to have issues mate! You need to read this to understand how credit agencies work, cos you'll ruin your credit file!

See here: Credit Reference Agencies

bla111

the issue is that i have just over £1000 of debt in total and trying to find the cheapest option to clear it (hence why i registered here) its too easy to just forget about (as i have with the store card) and it only gets worse i know. i have never been in debt and dont really know how to deal with these companys thus why i am seeking advice on the issues. Thank you for the advice with the store card btw!

never-in-doubt

Ok, regards to the mobile - can you speak to them and sort it out? If they have defaulted you then don't agree to anything - just post back here.

Ideally you should get your credit files before doing anything because you need to see what they say!

See here for addresses (just read down the page a bit) - simply send £2 and your last 6 years addresses and they will send your credit file to you. http://www.ico.gov.uk/for_the_public/topic_specific_guides/credit.aspx

bla111

ok thanks for the link and info. Will send that info away today and update as soon as i get the report! thank you

never-in-doubt

bla111 wrote: »

ok thanks for the link and info. Will send that info away today and update as soon as i get the report! thank you

For the moment do the main 2, Experian & Equifax. Don't worry about CallCredit as they are quite small....