Advice on clearing default

AliceBanned

Hello

I wondered whether someone could please advise - I have a default with Abbey (credit card) from July 2005 for £1600. This has been passed on to numerous debt collectors and I receive a letter about twice a year with the usual threats etc, but no action has been taken. I would like to make an offer of perhaps £500 to clear this debt - wondered whether this would put me back to square one in terms of my credit file; ie because I have made contact with them, they could start the date of default from now if I don't pay what they request? I know it sounds crazy but I'm scared to contact them if it is going to stir things up, so I have stayed silent, but preferably would rather settle this, but only for a portion of the debt as I paid a lot in interest and charges. Thanks if anyone can help!

Tixy

Hi Alice

A debt can only be defaulted once, at whatever the old date was. So if it was originally defaulted in July 2005 that default will stay on your record for 6years, disappearing in July 2011 (irrespective if whether its been paid).

If you contact them and offer a full & final settlement they may well agree, see here on offering a settlement http://www.nationaldebtline.co.uk/england_wales/factsheet.php?page=24_full_and_final_settlement_offers

So they can't make that default worse, the only danger is that in theory they could apply for a CCJ, that seems unlikely in view of the level of debt - and the fact that some of the charges were probably under the old regime (i.e more than £12)

Alternatively you could try to do credit card charge reclaim to reduce the balance down and then agree to a settlement but that will take longer.

AliceBanned

Hi Tixy

Thanks again! Yes I'd be surprised if they applied for a CCJ; as it is a debt collector who probably bought the debt for next to nothing, I am hoping they will be glad to just receive something for it! I could probably get away with paying nothing and wait for it to be removed from my file, but have a feeling that credit score-wise, settling it would be marginally better. yes the fees were about £30 each, plus interest, ; it spiralled badly at the time.

Thanks for your help, I may give them a call ; will post a note on here if I get a good deal..

brians_daughter

AliceBanned wrote: »

I may give them a call ; will post a note on here if I get a good deal..

Please, please, please DO NOT CALL. It must be done in writting. Never speak to DCA on phone re settlements etc, you need to write to them and await written response back- much safer

AliceBanned

Thanks Brian's daughter. Haven't done anything yet though.

WRINKLES

sit tight dont phone them dont write to them dont answer if they phone and in just over a year it will be statute barred and will fall of your credit fille