Defaulted account + credit rating + statute of limitations?

~moneysavingnovice~

My OH and I checked his credit file last night- everything is fine except from one account showing as defaulted. We knew about this and he arranged a payment plan with the debt collection agency it had been passed to earlier this year. The credit file shows that he defaulted in 2005- does this mean that next year it will 'fall off' his credit report, or will it stay there until the full balance has been paid?

Also, he is paying off ~£100pm and the total debt is around £8.5k so obviously this is going to take a very long time to clear (though they have frozen the interest). Does the statute of limitations apply here, or is it best just to keep paying until the debt is cleared? We can't really afford to pay it off any faster than my OH is at the mo, but I don't want the bailiffs round!

Tixy

Hi

The default will fall off after 6years from the date of default, so yes next year.

As he has been paying off the debt the limitation act would not be relevant, there has to be a 6year period (5 in scotland) where he makes no payments at all or acknowledges that he owes the money - and assuming they don't take him to court in that 6year period.

Baliffs can only be appointed if there is a CCJ on this debt. It sounds like he has an arrangement to pay £100 to the DCA and at the moment they are accepting that payment so it sounds like it hasn#t been to court.

They could, if they chose, decide to go for a CCJ at any point. But hopefully they will realise that he is offering what he can afford so there is little point going to court. If he stopped paying they might well go for a CCJ.