2 queries from a newbie

getting_better_2

Hi all,

A few years ago I got myself into a world of debt.

I am really pleased to say that although I'm not debt free yet, I will be at the end of this year!

I have got really into budgeting and trying to 'get everything straight'.

My main ambition is to finish 2010 debt free, then by the end of 2012, have a deposit for a house.

I have 2 concerns though

1) I had a CCJ - issued in Oct 2005 and settled in Oct 2007. I know this stays on my file for 6years but is this 6years from issue or settlement - i.e. will this be gone in Oct 2011 or Oct 2013? Obviously I'm hoping for 2011 as I'm hoping to be looking for a mortgage in early 2013

2) I had a default on a Barclaycard credit card in Aug 2005 - this had been disputed before then and I have never paid anything towards it. There has been no contact since Aug2005 from Barclaycard or me. My question is, will this be cleared from my credit record in Aug 2011 (after 6 years). I know that I shouldn't have to pay this (long story but not really relevant) - however I just want to be debt free and able to get a mortgage so will pay it if it means it will go from my record, however if I pay now, I assume I will then have a settled default on my record for 6years from today - i.e until 2016! If I continue to ignore it, my thinking is that it will be gone by Aug2011 - am I right?

Please no judgements on point 2... I know I got in a mess and had my head buried for a long time however I've almost repaid everything and just want to be normal and debt free.

Any advice appreciated

Thanks

Rico6.9

I'm unsure about CCJ's but the default should be off next year. (I'd imagine the same for a CCJ). Barclaycard may clear the default if you pay them what you owe but you should certainly get that in writing before paying them anything. A settled default is just as bad as a default because the computer search bounces back from any default (including settled and satisfied) with "No".
I've also heard rumblings that the 6 year rule may be reduced to 3 years this summer when we come more into line with the rest of Europe. Your MP may be able to clarify this for you. Perhaps you'll be able to get your house sooner than you think.
Good luck.

Tixy

Yes the CCJ will come off 6years from the date of the CCJ not the date you paid.

A default would be the same, it will come off 6years after the original date of default regardless of when/whether it is paid.

You do need to watch out for the creditor or a DCA going after a CCJ on the second debt before the 6years is up, should that happend then obviously that will screw up your file for another 6years. So do keep an eye out for court papers (if barclaycard don't have your current address a CCJ could happen without your knowledge).

getting_better_2

Thank you for the replies.

So the CCJ dissappears in Oct 2011 - brilliant.

The Barclaycard default: If I were to contact them and pay in full now, this wouldn't 'start a new 6yr clock'? I thought it was 6years from the last acknowlegement of the debt? Obviously the last thing I want is to get to 5yrs 11mths and suddenly get a CCJ which will take another 6years to clear. I don't particularly want to repay this as it is unjustified but I would rather pay (it's approx £600) and know that it's gone. I just want to be 100% sure that the act of settling isn't going to have the same effect as getting a CCJ in which case I would rather take the chance

getting_better_2

PS - good news on 3yrs - I'll be keeping my fingers crossed on that one! I know there are arguments for both sides (and it would work against me on my Barclaycard) but defaults staying on record for a shorter period (3yrs?) after settlement seems like a better idea than 6yrs from default date regardless of settlement... surely the idea of a credit file is to give lending companies an idea of the likelihood of you honouring your obligations? (I do see the irony of my situation - in my defence, I don't believe I should owe Barclaycard anything and to be honest I would now do just about anything to get a clean file)

Rico6.9

If the default from Barclaycard shouldn't be there, you could try a small claim for £5000. They have damaged your credit reputation. This should at least get the default removed.

Tixy

The '6year clock' thing relates to statute barred debts (if you acknowledge a debt it restarts the 6years they have to chase you). It doesn't apply to the default appearing on your credit file.

Considering the situation with barclaycard you may want to obtain a copy of the default notice they sent you to see if it legally compliant - if it isn't that would be one way to get the default removed. You could also consider lookin at and possibly challenging the enforceability of the credit agreement - if you might want to do either of these look here - http://forums.moneysavingexpert.com/showthread.html?t=2305463 and seek advice from never-in-doubt on that thread. He may be able to help you.