Debt-write off/ unenforceability

drizzlydays

After reading another thread on here re debt write-off I just wanted to double check something:

If a credit agreement is deemed unenforceable, this doesn't affect whatsoever the fact that a card company will still continue to issue default notices against your name? I take it this situation would just continue indefinitely in that case? So the only reason to have an agreement rendered unenforceable is if you don't want to pay the debt but you don't mind your credit rating being screwed forever more?

Is this right?

podperson

That is it in a nutshell
Most people would only consider unenforceability as a last resort if they were really unable to pay the debt off and already had a poor credit rating due to this.
Basically all the unenforceability means is that they are extremely unlikely to take you to court for the debt as they will struggle to legally prove you really owe it without a valid cca. However both you and they know that you did borrow the money so they aren't going to just forget about it. They will still chase you for it, still pass to dcas and still put defaults on your credit record.

PNPSUKNET

you said it

drizzlydays

is there any expiry date on this - for example the statute barred rule of 6 years would that still apply or does it start again from each default/ reminder letter etc

needtofightback

Is it forever more? I thought i'd read on here that all defaults drop off credit reports after 7 yrs.

mr.ton

Well if they kept on issuing default notices & destroying your credit file after having no CCA - i would report their sorry asses to every authority i could think of.
They will only get away with it if you let them.

drizzlydays

I have already missed payments with my creditors so already have a series of defaults against my name. I'm already looking at 6 years of no credit. So is it worth going for unenforceability (all my debt is credit cards and all before apr 2007) or will they just keep issuing defaults forever therefore preventing me from improving my rating?

mr. ton who would I complain to if they did that as I thought given recent 'test' cases the courts said this was completely fine for creditors to do?

can anyone clarify?

DarkConvict

In a nutshell as they said above it is correct.

In addition.

They can only place 1 default by law, but can however continue to mark late payments every month.

When the default falls off most of the damage is over.

When a debt has not been acknowledged or payment made, it comes statute barred. Its more stronger than lack of a CCA, as once statute barred it is again unenforceable but it also becomes illegal for them to demand payment and in turn there letters are unlawful harassment after those 6 years.

So in affect, if you stop paying the day you default, the after 6 years it goes statute barred. At which point they must stop chasing you, given Late payment history lasts 3 years it will take a further 3 years to recover given the last payment marker would be placed on the day they can last hassle you about it. 9 Years total recovery time if you intend on not paying.

There is however the problem if they do find an enforceable agreement! Or if without realising you sign a new agreement for that account, its been known to happen. They only have to present the last copy of an agreement that you signed, and these are redone from time to time.

landsker

I have had a DCA letter - two actually - one purporting to be from the original lender saying that the debt had been assigned to a DCA in 2004, and the other from the same address, offering a big discount for settlement, from the DCA concerned.
The last payment on the debt would have been in late 2000, so is it reasonable to assume that the debt is time barred - or does the 6 years date from the date of assignment to the DCA?
Advice from forum members to pay is not appropriate as I am well over 70 years old and living on less than £10,000 pa, all from pensions and have no real savings.

drizzlydays

9 years wow think i'll pursue the reduced settlement route. thanks

saltnvinegar

drizzlydays wrote: »

9 years wow think i'll pursue the reduced settlement route. thanks

Hi Drizzlydays

Yes its a long time, personally I have used the unenforceability route not to wriggle out of paying the debt but to give myself some breathing space to sort out my finances and also to fight back against the 'We will take you to court and take your home, apply for an attachment of earnings etc etc'.

Once unenforceability is established your creditors only fall back is to issue the default and mark your credit file and hassle you on the phone (unless you stop them with them by reporting them for harrassment).

As correctly stated, there is nothing to stop them though at any time producing a valid and enforceable CCA. This is why I look at it from the temporary solution point of view.

In the meantime however if you have demonstrated a willingness to pay in line with what you can afford this will only work in your favour the majority of the time.

If you are in a financial position to come to a Full & Final Settlement then do it

SnV