Default will be 6 years in April.

discojam

Company name:
LOWELL PORTFOLIO I LTD
Account type:
Loan
Started:
29/01/2003
Default Balance:
£10,377
Current Balance:
£5,840


Defaulted On:
30/04/2004
File Updated for the Period to:
02/08/2009
Status history:

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I defaulted on this account in April 2004 which will be 6 years this April, can someone explain what the best course of action will be as I hadnt realised it will be 6 years this April. If the default goes past the 6 year mark and I havnt paid the debt in full or partial settlement will the amount that I still owe still stay on my credit report and affect my credit rating negatively?

Sorry if this has been asked a million times before I'm just a little bit confused and want to manage this in the best way possible! thank you for any help
xx

debtstressed

Hi.

Look up this thread in this forum. I think you'll find your answer there. "Default and the 6 year rule".

Sorry, am new so it am not yet alowed to post links.

discojam

Company name:ROBINSON WAY
Account type:Credit card / Store card
Started:01/08/2000
Default Balance:£179
Current Balance:Satisfied
Defaulted On:27/07/2005
File Updated for the Period to:15/02/2009


Company name:CAPITAL ONE
Account type:Credit card / Store card
Special Instruction Indicator:Partial Settlement
Start Date:01/12/2006
Started:09/12/2004
Default Balance:£386
Current Balance:Satisfied
Defaulted On:05/10/2005
File Updated for the Period to:16/03/2008



Company name:BARCLAYS BANK PLC (WOOLWICH)
Account type:Bank
Default Balance:£431
Current Balance:Satisfied
Defaulted On:27/05/2004
File Updated for the Period to:06/02/2005


So Ive got two of these defaults which started in 2005 and one which defaulted in 2004 in May so does this mean it will come off my credit report in May this year? Does that mean it just doesnt show AT ALL or its still there in some way?

Thank you!!

discojam

debtstressed wrote: »

Hi.

Look up this thread in this forum. I think you'll find your answer there. "Default and the 6 year rule".

Sorry, am new so it am not yet alowed to post links.

thanks debtstressed Ill have a look now, am getting my brain all in a scramble I think! Organising a move and loads of other things going on at the moment so its all a bit of a pickle! thanks again!

debtstressed

Hi.

The way I understand it, a default comes off your credit file 6 years after the date you got it irregardless of wether you have paid the debt of or not. All account information goes. It is all gone, clean slate.

That makes it 27/07/2011, 05/10/2011 and 27/05/2010 respectively.

That's my understanding.After 05/10/2011 there should be no trace of any default or any defaulted account.

Hope it helps.

discojam

debtstressed wrote: »

Hi.

The way I understand it, a default comes off your credit file 6 years after the date you got it irregardless of wether you have paid the debt of or not. All account information goes. It is all gone, clean slate.

That makes it 27/07/2011, 05/10/2011 and 27/05/2010 respectively.

That's my understanding.After 05/10/2011 there should be no trace of any default or any defaulted account.

Hope it helps.

Thank you debtstressed!
My friend told that its only if there has been no contact to or from the debt company, I'm still a little bit confused but am *hoping* that what you say is correct.
Still not sure if it means they cant pursue the debt further or not but will try reading up some more once Im at home later as work is absolutely manic!
Thanks again

rugbymum

discojam wrote: »

Thank you debtstressed!
My friend told that its only if there has been no contact to or from the debt company, I'm still a little bit confused but am *hoping* that what you say is correct.
Still not sure if it means they cant pursue the debt further or not but will try reading up some more once Im at home later as work is absolutely manic!
Thanks again

Hang on!
A default and STATUTE BARRED are two different things!
A default is entered on your credit file 3-6 months after you stop paying an account, it will drop off your credit file.
Statute Barred (which is what I think you're talking about), means that if you have not paid or made written acknowledgement of the debt for six years, the creditor cannot chase you for payment.

discojam

rugbymum wrote: »

Hang on!
A default and STATUTE BARRED are two different things!
A default is entered on your credit file 3-6 months after you stop paying an account, it will drop off your credit file.
Statute Barred (which is what I think you're talking about), means that if you have not paid or made written acknowledgement of the debt for six years, the creditor cannot chase you for payment.

Thanks Rugbymum, he was talking about a different thing then as I was talking about defaults not statute barred!
Thanks for clearing that up is it really true though? That in April the debt will disappear from my credit report as its 6 years? Really?? I'm surprised for some reason and kind of feeling like there must be some sort of repercussion somewherE?
Thank you for your reply!

tygar2

discojam wrote: »

Thanks Rugbymum, he was talking about a different thing then as I was talking about defaults not statute barred!
Thanks for clearing that up is it really true though? That in April the debt will disappear from my credit report as its 6 years? Really?? I'm surprised for some reason and kind of feeling like there must be some sort of repercussion somewherE?
Thank you for your reply!

Hi

Check out this thread. http://forums.moneysavingexpert.com/showthread.html?t=2354759

Should answer your questions regarding defaults, statuate barred and what can happen if you stop paying back your debt after it comes off your credit file.

discojam

If when the 6 years is up what happens then? Has anyone had any experience of a debt being defaulted and the 6 years being up and what happens next? The thing I am worried about is the 5840 that is on there owing to Lowell, the 6 years will be up end of April next month.
After this point will the outstanding balance still affect my credit report?
Will it be completely gone from my credit report?
Does the date of last payment affect this at all?
And should I still send them a letter now asking for a copy of the signed credit agreement?

I'm just wondering because the debt that I recently reached full and final settlement with (different creditor) Ive now realised the default is 6 years old in August. Obviously Ive paid the money now so thats done but does this mean that I could have actually left it till August not paid and the end result would have still been the same? Or is it actually better to make a full and final settlement before the default is due to drop off?

I dont quite understand how all evidence of the account, debt and default can drop off after 6 years of the default date? Surely they still have a legal right to come after me for the money even after then?

Sorry for all the questions, I've been searching on the internet and there just seems to be a wealth of conflicting information so anyone who could clarify these points for me it would be much appreciated, it just seems so confusing

discojam

tygar2 wrote: »

Hi

Check out this thread. http://forums.moneysavingexpert.com/showthread.html?t=2354759

Should answer your questions regarding defaults, statuate barred and what can happen if you stop paying back your debt after it comes off your credit file.

ooh thanks tygar (nice name btw!) we cross posted, I shall have a read now