default query after 6 years ?

kingfone786

Hello,
Hope you are OK, have a technical question

Got into debt approx 7 years ago, cleared 99% of the debts but have one which the default date was 1st oct 2004 whioch will fall off the credit file next month. The only thing is the debt has not been paid off and is owned by a debt purchasing company.

The question I need answered is once the debt is cleared on the file i.e ( 6 years defaults get wiped) , will it then reappear under a different guise as it is still owed or will it simply stay off the credit file ?

Regards

thechippy

When was the last time you acknowleged the debt or made a payment to it?

fermi

Once the default comes off in October, no company should be able to put anything more on you credit files about it.

(apart from if they took out a CCJ, which is unlikely)

However, some debt collectors do falsely record new info when they shouldn't, so you should keep an eye on things. Not hugely likely, but happens enough to watch out for it.

Make sure you keep some records showing the details of the old default on your report, so that if someone tries to put new info on you can prove that they are in the wrong.

kingfone786

hi,
token payments have been made and are currently being made at £10 pcm since 2006.

I have acknowledged the debt because I do owe it. I have tried a full and final but they want 90%, can get 50% at a push from parents but they are having none of it so have decided to keep on paying the money.

My credit file will be clean as a whistle by next April 2011 but do not wish to have this on my file as a hire purchase agreement. The debt company is not recording the monthly payments but simply has the info from the original credit card company but has the debt company who owns the debt listed

fermi

kingfone786 wrote: »

The debt company is not recording the monthly payments but simply has the info from the original credit card company but has the debt company who owns the debt listed

That is OK. Once you are defaulted they no longer have to report monthly payments/status codes.

They just have to make sure the outstanding balance is updated regularly to reflect what is being paid off.

kingfone786

thanks... does this mean that after 6 years it will be wiped off completely with no record that the money is outstanding ?

thechippy

As you are making token payments, the debt will not be statute barred after 6 years. It will remain on the file and outstanding until you have made the last payment and cleared it.

fermi

kingfone786 wrote: »

thanks... does this mean that after 6 years it will be wiped off completely with no record that the money is outstanding ?

Yep. A default and info regarding an account should be removed from your credit report 6 years from the default date, even if the debt has still not been settled.

From: Technical Guidance Note - Filing defaults with credit reference agencies

The ‘sale’ or assignment of debts on defaulted accounts

52 When the rights to a debt are sold to a third party, the lender has to make sure the records with the credit reference agency are accurate, up to date and adequate. If they want information about the debts to continue on the credit reference file they will need to come to an agreement with the purchaser about who is to be responsible for this.

53 If the purchaser agrees to take control of the record, the customer should be informed that the debt has been sold or assigned and to whom. The credit reference agency file should be changed to show the name of the purchaser and that the rights to the debt have been sold or assigned.

The purchaser should then make sure the record is kept up to date including changes to the amount still owed. The purchase should not affect how long the record is kept. It should be removed six years after the default.

fermi

thechippy wrote: »

It will remain on the file and outstanding until you have made the last payment and cleared it.

No. It will be removed from the file six years after the default, regardless of whether it has been paid off or not.

And I don't think kingfone786 was asking any questions about it being statute barred? This is a question about records on credit files.

thechippy

...Interesing, I wasn't aware of that.

kingfone786

thanks for this. I will keep on paying till I can agree a deal with them.

I was was concerned that it will stay on for a further 6 years !!

A quick query... it says on the above post if an agreement is reached... is this with my permission or the original c c company ?