Defaults nearing 6 years expiration

big_tobacco

Hello,

I have 4 defaults nearing the 6 years expiration date (I was at University when these 4 agreements defaulted, but since has really cleaned up my finances!)

Now, I know that after 6 years defaults should 'drop' off, however I have for about 1 year been making payment to one defaulted agreement (a HFC Loan now under the management of Connaught Collections for the sum of £2900), but this default is one of the 4 that is due to expire.

Should I 'bother' to keep making payment or will it still show on my credit file beyond 6 years and/or will Connaught chase me? I'm quite keen to clean up my file but feel that making payment to something that won't 'appear' on my file is possibly a waste of time (and money!) I know it's not the right attitude, however I'm sure I'm not the only person how is going through the same dilemma.

natlai

Hi,

I'm not 100% sure but think that although the default notice will be removed that they will still chase you for the outstanding balance and if you don't pay it could lead to another default notice.

Hopefully someone will be able to give you a 100% answer.

Natasha

fermi

The default will still disappear, and no, continuing payment would not show on your credit files.

However, if you stopped payment then for £2,900 the creditor may well decide to go to court for a CCJ. If they did that, then that would be a fresh mark on your credit file that is worse than a default and lasts for another full 6 years.

fermi

natlai wrote: »

I'm not 100% sure but think that although the default notice will be removed that they will still chase you for the outstanding balance and if you don't pay it could lead to another default notice.

They can't record another default, but as said, could go for a CCJ that would arguably be worse.

Tixy

The debt & default won't show on your credit file after the 6 years (and they cannot enter another default) but you are still liable to pay the debt and they will still continue to chase you for it and could decide to take you to court. If they did then you would then have a CCJ on file for another 6years.

big_tobacco

Thank you for the information!

I will continue to pay them in that case, but might reduce the repayments by 20%, obviously it will take me longer to pay but at least they can't say I'm not paying them!

Great result, thank you once again!