Default Notice issued by Mercers?!?!?

bennymanc

Hi Guys
Hope someone can clear this up.

I have been paying a Barclaycard on and off for a number of years till last year when they failed to submit me with a copy of my CCA. (re-constituted or not). I then advised that due to their failure to comply that I would cease payments.

Anyway moving onto this week, after a sort through of my paperwork, I came across a Default Notice issued in 2007 by Mercers. I have since checked my credit file and the default has been logged on my credit records.

I was under the impression that officially as I had taken the credit card with Barclaycard, the default notice would have to be issued by them and not Mercers? (BTW I am aware that Mercers are an in house collection agent for Barclaycard)

Any advice?

Thanks

Ben:mad:

jonesMUFCforever

Pay it off?

ElkyElky

Just because they failed to send you a copy of your CCA, doesn't mean your entitled to halt payments. They'll continue to report to the CRA's, damaging your report more and more each month until you begin to repay what you owe.

The CCA issue only means they cannot enforce the debt through the courts.

Either pay and try to recover whats left of your credit file, or suffer for the next 6 years.

bennymanc

So, if I agree to back down and start paying Barclaycard on what I can afford to pay each month, will the default simply disappear? Or will they log payments with the credit reference agencies from when I commence repaying the amount owing?
Thanks

ElkyElky

bennymanc wrote: »

So, if I agree to back down and start paying Barclaycard on what I can afford to pay each month, will the default simply disappear? Or will they log payments with the credit reference agencies from when I commence repaying the amount owing?
Thanks

Unfortunately not. The default will remain on your file for 6 years from the date it was placed. However, if you pay off the debt, the defaults status will change to "satisfied"... the status will remain "unsatisfied" if you do not pay it. Obviously a satisfied default is somewhat better than a unsatisfied.

Any default, satisfied or not has a huge impact on your credit worthiness and you'll find it will be extremely difficult to obtain credit for a while.

It was definitely a bad idea to halt payments to them, especially if you had plans on obtaining credit in the near future such as a mortgage or phone contract.

You'll have to weigh up the options about whether to repay the debt or not. If you repay, then this will be reflected on your credit report and other lenders will be able to see you are at least trying to be responsible about your debt... if you don't, you'll be faced with harassing phone calls, threatening letters etc.

bennymanc

Thanks for that,deffo food for thought