default in to a CCJ after nearly 6 years

bayston1

I have a default which expires in April 2011. I have been paying an agreed amount to LloydsTSB. I have just had a letter from Debt Manager LTD asking for full payment. I contacted Lloyds TSB.
They informed me that I had not paid since April. I checked and it seems that when i set up a standing order I put it to start next year, my mistake as I am not keen on internet banking.

However I have spoken to them on a number of times since April and they have not said I was in arrears. I got a letter in Aug saying that I was 1 month in arrears.
This issue is it is now with the debt collector, I am calling them on Friday to go through my financial position, which they are asking for information about my wife, child tax credit etc. My wife has just finished Uni is now paying her own debt off.

If I tell them all the information and they come to an agreement which is higher than I can really afford, can then then turn this nearly expired default in to either a new default or even a CCJ.
Thanks

BorassicLint

Hi Bayston1,

I can't really give you any specific advice except to say, do not deal with these people over the phone. Put everything in writing and send it by recorded delivery and make sure you keep copies of everything. They can trick you and bully you into agreeing things over the phone that you can't really afford to do. Also, make sure that you do not sign any letters but type your name as they have been known to use copy & paste for signatures.

I'm sure someone with more knowledge will be along soon.

fermi

bayston1 wrote: »

If I tell them all the information and they come to an agreement which is higher than I can really afford, can then then turn this nearly expired default in to either a new default or even a CCJ.

The can't register a new default.

They could go for a CCJ if they are not happy with what you could pay. Normally not much point though, as you can usually get payments (eventually) set at an affordable level by them. It's usually more useful as as threat to scare people than as a practice way of a creditor getting their money.

bayston1

Thanks for the advice so far.

What would happen if I still owe and are paying of the debt when the default reaches its 6 years birthday.
1) Will it fall of my credit score if I am still paying it, or will it remain on there.
2) Do I still officially owe them the money. I understand the Statue Barred situation but because I have been paying during the 6 year what will or could happen.

I still owe £2900, I was offered a settlement payment today of £2200. Whilst still dealing with LloydsTBS, the settlement ranged from £1600 up to £2750, strange how they can range so much!!

I am looking to get a mortgage with my wife in the next couple of years and this could proove a real problem.

Once again thanks to all who both view and those who reply. I have had this over me for nearly 6 years a do not want it to go on for another 6!

fermi

1. The default and ALL details of the account/payments will be removed after the 6 years whether it is paid off or not, and they are not allowed to register another or record anything else.

2. You would still owe the money.

bayston1

Thanks for that.

However are they able to issue a ccj for the debt even if the default has been removed or expired?

HappyMJ

No, you must be in default. A creditor must issue a default notice before taking any legal action.

fermi

bayston1 wrote: »

Thanks for that.

However are they able to issue a ccj for the debt even if the default has been removed or expired?

Yes. Nothing at all to stop them.

HappyMJ wrote: »

No, you must be in default. A creditor must issue a default notice before taking any legal action.

The account here has already been defaulted a long long time ago. The creditor is can take legal action now if they wish. The default falling of the credit files doesn't stop that.

HappyMJ

Really? Are you sure? According to the Consumer Credit Act 2006 it appears that the creditor has not been issuing default notices and has no right to recover the sums due under the agreement.

http://www.legislation.gov.uk/ukpga/2006/14/contents

GeorgeUK

Before a creditor takes you to court, a default must be issued. This gives the creditor the option of pursuing the debt in court.

After a default is issued, (the default date must be within 6 months of the original default/missed payment), it stays on your file for 6 years. If you are still paying after 10 years, the default will not show on your credit file, but the creditor retains the right to take you to court. Just because it is not on your credit file does not mean that the default no longer exists - it just means it will no longer impact your credit rating.

Only a court can demand details of bank balances or tax credits. The DCA can request that you supply those details, but you are not under any obligation to supply them. I would write to the DCA stating that you are prepared to continue making the payments that were being made to Lloyds before the banking error. I wouldn't give them all those things they are asking for and definately not any information about your wife if this is not her DMP.

DVardysShadow

I might be wrong here - but it seems to me that a default notice can be issued at any reasonable time after a default and there is no 6 month time limit - otherwise, if a creditor did not issue within 6 months, he could not take the debt to court and the matter would effectively become statute barred at 6 months.

The 6 month time limit relates to the date of a default being recorded on a credit file. I don't think there is a limit to when a notice can be placed on a credit file - except for 6 years obviously - but the effective date must be within 6 months of the actual default so that the default falls off within 6 years and 6 months of the deafult arising