help understand my credit file

amberspy

hi all
call me thick but can you help me understand my credit file pls
ive a old debt on it which started on file 2004 ,is it dispute over payments when was ill no payments have been maded for 3 yr ,says on file just late payments no default?
thing is the creditor has sold debt to management company
but file is still geting updated monthly saying late payment
does this mean it be on file forever due to it geting updated monthly?
or will it fall of after 6 yrs?
it from from old address ,ive been at present address 4 yr now
any advice would be good and i hope ive made sense lol:o

amberspy

any1? got advice pls

amberspy

bump anyone

PNPSUKNET

unless it has a default, it will still register as late payment so can go on until they decide to issue a default notice. Best thing todo is pay it.

GeorgeUK

If there is no default on the account, then it may stay on your file indefinately. They cannot however take you to court without issuing a default. The default date would need to be within 6 months of the initial breach and the account would drop off your file 6 years after the default date.

If the debt has been sold on, then i would assume that they would have had to close the account. The DCA may be acting on behalf of the creditor rather than own the debt.

6 years after an account is closed, it will fall off the account, but if the account is not closed then it will not fall off your file.

Is there a default against this account?

amberspy

GeorgeUK wrote: »

If there is no default on the account, then it may stay on your file indefinately. They cannot however take you to court without issuing a default. The default date would need to be within 6 months of the initial breach and the account would drop off your file 6 years after the default date.

If the debt has been sold on, then i would assume that they would have had to close the account. The DCA may be acting on behalf of the creditor rather than own the debt.

6 years after an account is closed, it will fall off the account, but if the account is not closed then it will not fall off your file.

Is there a default against this account?

thanks for replying
nope no default just says late payments been saying that for over 3 yrs
we were in dispute with them over payments when i was ill which insurance paid for i had 13 payments left they said 24 left even money advice advicer said it was 13 months but they werent buding so nothing happen
i have wrote letter but no reply our credit file is in good nick apart from this debt it hasnt stoped us from having good bank management with the bank as we resently go up graded for current acc with od and cgc

GeorgeUK

Sorry, was looking at another forum for a bit.

If there is no default, then you would need to check to see if the account had been closed. If it hasn't then the account will remain on your file for 6 years after it is closed. What type of account was it?

If you are wanting to get rid of this debt, the first thing i would do is save up a bit of money. Can you afford to pay off the entire amount in one go if you needed to?

After saving some money, i would contact them again stating that the account was in dispute and requesting a breakdown of all payments and charges made and their explanation as to why 24 payments were left rather than 13.

Was the account a loan which you had PPI on and they refused to make payment on the PPI when you tried to claim?

It sounds like the debt will not be statute barred for 3 years so they may still try to take court action (depending on the amount owed). They should not do this while the account is in dispute but it is possible, although court action cannot be taken if there is no default.

What i think you should do is to save up so that you can deal with this without ruining your credit file. If you were to contact them and they issued a default, this would remain on your file for 6 years from the default dats (probably 3 years), then the account would fall off your credit file. The late payments if no default is put against the account will impact your rating for up to 2 years, the effect on your rating constantly reducing until then. The account would stay on your credit file though even though it shouldn't have much impact.

I guess the way forward depends on whether you have funds available to deal with the debt and how badly you want the account off your credit file. You may be able to make a reduced settlement offer - full and final, not partial or short settlement. You could also argue about the disputed balance and see if they were willing to reduce the balance. You could wait 3 years for the debt to becomes statute barred, or you could pay off the full amount due.

It's a slightly tough call, but if you contact them with regards the disputed balance, this may restart the SB clock. You would be acknowledging that a debt was owed even if there was a dispute about the amount owed. They can't take you to court without defaulting the account - if they defaulted the account then they might not take you to court, but the account would fall off your file after 3 years. If you made an agreement to settle the debt, the late payment entries would impact your rating for 2 years.

If you were to call the creditor to ask about the status of the account, they may then start to pursue you for payment (which was why i asked about how much you had saved up). You could inform them that the debt is still in dispute, but if you do any of this in writing, it could restart the SB clock. If you did it over the phone - it wouldn't. I just don't know if you are in a position where you are ready to tackle them over this again.