MSE News: High Court 'closes debt write-off loophole'

holbea

Thank you, is this still something that is worth doing? I did have a look at the thread but you talk about if they have already defaulted it is worth sending for. Currently everything is being paid but only just so I don't believe anyone is in default. I am a little confused by the latest reports of "closing the loophole" and don't want to make things worse.

never-in-doubt

Well put it this way, when they fail to send the CCA you should cease repayment but if you want to keep your credit file intact then i'd suggest not CCAing them.

It is usually a last resort for people who cannot pay and will end up defaulting anyway - it's not there just to see if you can get away with debts, under a technicality.

Ames

The problem with doing a CCA request and then stopping paying if they don't comply is that it ruins your credit rating, which is why most people who do it only do it because they've defaulted already and have nothing to lose. If you don't mind losing your credit rating then that's fine. If you're getting close to defaulting (missing payments) then it sounds like you've got a few money problems and need to look at other solutions as well.

It's not a magic fix, but it's a tool in the box.

Ames

Sorry NiD, cross posted.

holbea

Thank you! We do fall into the category of being likely to default if we can't do something soon. We've had a few late payments etc already and need to tackle this head on this year.

thanks again

never-in-doubt

holbea wrote: »

Thank you! We do fall into the category of being likely to default if we can't do something soon. We've had a few late payments etc already and need to tackle this head on this year.

thanks again

Well then if you think you'll end up defaulting in 6 months it is better to default today cos the time startes from the last payment! So in essence, to make it easy for you; lets assume the following:

You stop paying tomorrow - they default you next June, you'd have a default on your credit file until June 2016.

HOWEVER the debt would be statute barred in January 2016 - so the time saved instead of paying, could be beneficial to you.

As I say, its not a quick fix but can help people buy time etc - especially those with nothing to lose. You will ruin your credit file though, so long as you are aware of that.

It will remain ruined for 6 years, but you could start to get sub-prime credit after 3 years so it does mean no credit for a while.... but also means you're debt free, so to speak (forget the moral argument)...

Up to you what you do but if you're likely to struggle in a few months then best to start action and CCA them sooner than later to assist the SB date. :rolleyes:

Ames

Is it always 6 months, I'm sure I've read on here about people getting default notices and credit rating marks a lot earlier than that.

never-in-doubt

Ames wrote: »

Is it always 6 months, I'm sure I've read on here about people getting default notices and credit rating marks a lot earlier than that.

what?

why are you quoting 6 months?

I was using a hypothetical scenario.... lol. You can be defaulted any time after the 14 day Notice of Intended Action has been delivered. This can be after one late payment if the lender choses to do so.

I am confused as to why you quote me as saying a default comes after 6 months - I never! I used a scenario that it was June, just cos it was a date lol. Want me to say Feb or March if its easier lol

Ames

Ah sorry, just me being thick then. It was when you saying if they stop paying tomorrow then get defaulted in June, I thought that meant they were supposed to wait 6 months. I just misread it.

never-in-doubt

Ames wrote: »

Ah sorry, just me being thick then. It was when you saying if they stop paying tomorrow then get defaulted in June, I thought that meant they were supposed to wait 6 months. I just misread it.

lol, sorry - noooooo was just the first month I thought of lol - nothing significant in it (other than the Queens birthday, if you classify that as significant lol) :rotfl: :rotfl: