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The 12 year black mark on your credit file
property.advert
Posts: 4,086 Forumite
So you default on 01/01/2002 and you think 01/01/2008 it falls off your record. Not so in many cases.
Your debt bounces around from creditor to creditor but you never acknowledge the debt. Then around 2007 some creditor who has likely paid pennies in the pound for your near statute barred debt goes and registers a CCJ. Bang, 01/01/2008 goes out of the window and in comes 01/01/2014 (or just before).
Thus, your 6 years black mark extends out to 12 years (actual dates will be less than 12 years but that is the theoretical maximum).
Perhaps something for those battling and staying just on the good side of default to think about.
Your debt bounces around from creditor to creditor but you never acknowledge the debt. Then around 2007 some creditor who has likely paid pennies in the pound for your near statute barred debt goes and registers a CCJ. Bang, 01/01/2008 goes out of the window and in comes 01/01/2014 (or just before).
Thus, your 6 years black mark extends out to 12 years (actual dates will be less than 12 years but that is the theoretical maximum).
Perhaps something for those battling and staying just on the good side of default to think about.
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Comments
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property.advert wrote: »So you default on 01/01/2002 and you think 01/01/2008 it falls off your record. Not so in many cases.
Your debt bounces around from creditor to creditor but you never acknowledge the debt. Then around 2007 some creditor who has likely paid pennies in the pound for your near statute barred debt goes and registers a CCJ. Bang, 01/01/2008 goes out of the window and in comes 01/01/2014 (or just before).
Thus, your 6 years black mark extends out to 12 years (actual dates will be less than 12 years but that is the theoretical maximum).
Perhaps something for those battling and staying just on the good side of default to think about.
Hi
Has this happened to you? I have a default which I am scared to acknowledge because I fear even that might put me back to square one in terms of being noted on my credit file. Defaulted 2005 and am thinking of making an offer - can they really slam on a CCJ after all this time? I have been getting letters occasionally; recent one says "regular reviews into your financial circumstances will be conducted to assess your suitability for litigation action". I am in a better position to repay than I was but still struggling. Not sure which would be best option for me. The debt is £1200. A lot of this was due to interest and charges. Abbey would not agree any manageable repayments for me at the time so I did nothing as I couldn't do anything. Thanks for any advice.0 -
AliceBanned wrote: »Hi
Has this happened to you? I have a default which I am scared to acknowledge because I fear even that might put me back to square one in terms of being noted on my credit file. Defaulted 2005 and am thinking of making an offer - can they really slam on a CCJ after all this time? I have been getting letters occasionally; recent one says "regular reviews into your financial circumstances will be conducted to assess your suitability for litigation action". I am in a better position to repay than I was but still struggling. Not sure which would be best option for me. The debt is £1200. A lot of this was due to interest and charges. Abbey would not agree any manageable repayments for me at the time so I did nothing as I couldn't do anything. Thanks for any advice.
You're so nearly there with your statute barred. I think the best thing you could do is to save up the money but don't pay them anything. Then if a CCJ is registered, you can pay it in full and have it set aside. It then won't appear on your credit record at all.Sealed Pot Challenge #239
Virtual Sealed Pot #131
Save 12k in 2014 #98 £3690/£60000 -
You're so nearly there with your statute barred. I think the best thing you could do is to save up the money but don't pay them anything. Then if a CCJ is registered, you can pay it in full and have it set aside. It then won't appear on your credit record at all.
Hi, thanks Amiehall. I spoke to someone at a credit union I am a member of and he suggested offering about half the amount as full and final settlement. I am going to contact the CAB about it as well. I would hate another six years' punishment for the same debt! My worry is that costs might be added and interest, if they go for a CCJ which would be too much for me to repay. I think that would be very unfair considering the amount of interest and charges they have added on at the time which made the repayments impossible for me as I was a part time student and part time working and really struggling, partly due to my own ignorance about finances but also the easy lending culture we were in then.0 -
I know exactly what you mean.
I had this discussion in Pm with someone before.
Late payments in credit history, affects you for 3 years.
Then you get the biggie, a default which last 6 years.
Obviously during this time you could well make regular or one off payments, meaning it doesn't even go statute barred when the default comes off.
You get a CCJ, another 6 years (although a creditor can reapply for it to be added after 6 years if still unsettled). or alternatively a CO is applied for so extending the deadline yet again.
A single debt can affect you for along time, and whilst many feel it is unfair for it to last for so long (and i do agree for settled/disputed debts), its also unfair to the creditor to be owed money on a defaulted agreement. Sure people have personal circumstances that causes problems but these are out of the control of the creditor.Although no trees were harmed during the creation of this post, a large number of electrons were greatly inconvenienced.
There are two ways of constructing a software design: One way is to make it so simple that there are obviously no deficiencies, and the other way is to make it so complicated that there are no obvious deficiencies0 -
Yeah but the creditors effectively make the money on screen and balance up bad debts for tax relief so dont do so bad. That old theory that good debtors pay for bad ones is rubbish imo. Creditors are rarely innocent in the bad debtors situation as most have had hiked interest and lots of charges against them.
Its not like the ccj will just appear either. Your gonna get notification then chance to defend etc.
Alice I would relax. If things happen then deal with it, i'm a strong believer in letting life find its own route.0 -
BigCraigJohn wrote: »Yeah but the creditors effectively make the money on screen and balance up bad debts for tax relief so dont do so bad. That old theory that good debtors pay for bad ones is rubbish imo. Creditors are rarely innocent in the bad debtors situation as most have had hiked interest and lots of charges against them.
Its not like the ccj will just appear either. Your gonna get notification then chance to defend etc.
Alice I would relax. If things happen then deal with it, i'm a strong believer in letting life find its own route.
If they're lucky, this didn't happen to me, the court papers were only sent to me by the solicitors over a month after they had gone to court. So by the time i received notification the judgement had already been made and i was unable to enter a defence. I haven't even acknowledged the debt and don't believe that i owe anything. But i concede that mine is not the way it normally happens.0 -
DarkConvict wrote: »I know exactly what you mean.
I had this discussion in Pm with someone before.
Late payments in credit history, affects you for 3 years.
Then you get the biggie, a default which last 6 years.
Obviously during this time you could well make regular or one off payments, meaning it doesn't even go statute barred when the default comes off.
You get a CCJ, another 6 years (although a creditor can reapply for it to be added after 6 years if still unsettled). or alternatively a CO is applied for so extending the deadline yet again.
A single debt can affect you for along time, and whilst many feel it is unfair for it to last for so long (and i do agree for settled/disputed debts), its also unfair to the creditor to be owed money on a defaulted agreement. Sure people have personal circumstances that causes problems but these are out of the control of the creditor.
My fear is that even by beginning to communicate with them I an extending the deadline. This is hardly an incentive for me to try to resolve it as I may be stirring up more trouble for myself. Is this what you mean by "you could well make regular or one off payments, meaning it doesn't even go statute barred when the default comes off"? I'm so confused as even if I offer a reasonable partial settlement, if they turn it down then I'm stuck with another six years' default I think. ? Thanks0 -
If they're lucky, this didn't happen to me, the court papers were only sent to me by the solicitors over a month after they had gone to court. So by the time i received notification the judgement had already been made and i was unable to enter a defence. I haven't even acknowledged the debt and don't believe that i owe anything. But i concede that mine is not the way it normally happens.
Thanks Pipsi. Surely they have to send legal documents by registered post and if for some reason the person doesn't receive them, they can be allowed more time. I'm sure you must have some right to have this removed or to be given the time to repay. Otherwise everyone could just have ccj's slammed on them for no reason? Have you asked the CAB?0 -
AliceBanned wrote: »My fear is that even by beginning to communicate with them I an extending the deadline. This is hardly an incentive for me to try to resolve it as I may be stirring up more trouble for myself. Is this what you mean by "you could well make regular or one off payments, meaning it doesn't even go statute barred when the default comes off"? I'm so confused as even if I offer a reasonable partial settlement, if they turn it down then I'm stuck with another six years' default I think. ? Thanks
Whilst F&F letters often include "Without Prejudice" meaning they cannot present it in court to fight against a defence of statute barred, it is still an acknowledgement of a debt so is grey area.
The default once applied, can only be applied once and the default placed date cannot change. Making payments to a debt either one off or even settlements will not extend nor shorten how long a default stays on your credit file. it will come off 6 years after the day it was placed.
What i referred to in my post was as following.
01/01/2000 - Make Payment (SB = 01/01/2006)
01/03/2000 - Get a default (SB = 01/01/2006)
01/01/2003 - Get letter from DCA asking for payment (SB = 01/01/2006)
01/02/2003 - Make a single payment (SB = 01/02/2009)
01/03/2006 - Default falls off the credit file (SB = 01/03/2009)
01/06/2009 - Creditor applies for CCJ, you can enter SB as a defence
In the above example if the creditor applied for a default at say 01/01/2009. Then its not SB, and a CCJ would be on your file until 01/01/2015.Although no trees were harmed during the creation of this post, a large number of electrons were greatly inconvenienced.
There are two ways of constructing a software design: One way is to make it so simple that there are obviously no deficiencies, and the other way is to make it so complicated that there are no obvious deficiencies0 -
DarkConvict wrote: »Whilst F&F letters often include "Without Prejudice" meaning they cannot present it in court to fight against a defence of statute barred, it is still an acknowledgement of a debt so is grey area.
The default once applied, can only be applied once and the default placed date cannot change. Making payments to a debt either one off or even settlements will not extend nor shorten how long a default stays on your credit file. it will come off 6 years after the day it was placed.
What i referred to in my post was as following.
01/01/2000 - Make Payment (SB = 01/01/2006)
01/03/2000 - Get a default (SB = 01/01/2006)
01/01/2003 - Get letter from DCA asking for payment (SB = 01/01/2006)
01/02/2003 - Make a single payment (SB = 01/02/2009)
01/03/2006 - Default falls off the credit file (SB = 01/03/2009)
01/06/2009 - Creditor applies for CCJ, you can enter SB as a defence
In the above example if the creditor applied for a default at say 01/01/2009. Then its not SB, and a CCJ would be on your file until 01/01/2015.
Thanks Dark Convict, however I don't understand. You say that the default date cannot change; how can the SB date change then? Due to making a payment? If so this is totally a disincentive for anyone to pay, surely? thanks0
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