Old debt rears its ugly head.

Majestic

An old debt from 2006 landed on my doormat this morning. A mistake I made 5 ago years catching up with me.

It's pretty disheartening, as after a lot of hard work (these last few years) my credit file 'was' beginining to look fairly respectable.

But nonetheless I do recall this debt and regardless of its age, it's up to me to have to deal with it via Debt Collectors. Capquest in fact.

I've sent off for a copy of the original Credit Agreement, (they're asking for £1,400, for a £900 debt) which I sent by recorded delivery. But i'm a bit patchy on my knowledge of the debt expiry.

The original debt clears 6 years after the date of default, (which would be the start of 2012), I know that - But what is the procedure should they threaten me with a CCJ? Would that extended the longevity of the 'punishment' to another 6 years?

I'm was intailly thinking of a settlement, but i'm confused regarding court action.

Thanks for any advice.

nottoolate

a ccj would wreck your credit file for an extra 6 years

KingElvis

I would agree, if they get a CCJ you can kiss ta ta to your new shiny credit history.

saltnvinegar

Ok, so its caught up with you now, nothing you can do about that. Is there a default on your credit file for this debt?

What is this debt for? Credit Card/Loan?

As you've sent off a CCA request see what Capquest come back with. The good news is that if its gone to Capquest, who are one of the bottom feeders of the DCA world, and infamous for buying Statute Barred, Unenforceable debt, this may speak volumes.

So see what they come back with CCA wise. If you have not been defaulted already, they could still do this, unenforceable agreement or not.

If they don't have a CCA, then the chances of them taking you to court before the debt becomes statute barred is pretty much zero. However it depends on what the debt is for and you didn't mention this, so it may not be subject to the CCA anyway.

Its also important at the moment that you do not acknowledge this debt in writing or make, or offer, any payment towards it if you have any chance of getting this to be statute barred
Best

SnV

Majestic

Thankyou very much indeed for the replies. I've messaged you personally SnV. Sorry for the delayed follow up post, work and all that!

saltnvinegar wrote: »

Ok, so its caught up with you now, nothing you can do about that. Is there a default on your credit file for this debt?

It would seem after checking last night, that they have indeed flagged this up with Experian and it is down as a default. But not with Equifax. Arggh!

wrote:

What is this debt for? Credit Card/Loan?

I'm not entirely sure what they are chasing me up for, as I had two defaults with Yorkshire bank, a Loan and a Credit Card (I know, I know. This is embarrassing!). And is the reason i've sent off for a copy of the original CCA.

I am actually paying one of the old debts back with another DCA, from a few years ago which is nearly paid off (a blemish which will also soon enough drop off my credit file) but cannot recall if it was for the Loan or Card.

Apologies for the sketchiness, I just coughed up what I owed and forgot about it.

As you've sent off a CCA request see what Capquest come back with. The good news is that if its gone to Capquest, who are one of the bottom feeders of the DCA world, and infamous for buying Statute Barred, Unenforceable debt, this may speak volumes.

Time will tell, i'll post on here when I receive the reply, I sent it by recorded delivery last tuesday (7 days ago).

It's a bit of a bugg*r that they've come chasing me 5years after the date of default. But I suppose this is what happens when you sweep things under the carpet.

My Experian credit score has taking a pounding as a consquence of CapQuests Default Flag-up.

Majestic

To add, can anyone tell me if a debt is enforcable in court after a 'lifespan' of 6 years. ie; Could I still end up with a CCJ after the debt has rolled off my credit file?

Cheers.

fermi

It it goes for a 6 years period in which you haven't made a payment or acknowledged the debt in writing, then the debt would become statute barred.

That would bar them taking any successful court action.

Tixy

It depends on the other history of the account not the default date.

A creditor has 6years to take you to court from the date you last paid the debt or acknowledged in writing that you owed the money. After that time the debt becomes statute barred - which means if they did try to take you to court after that time then you could defend as the debt was statute barred.

So it could be you last paid a few months before the default was registered - in which case it would become SB a few months before the default falls off your credit file. Or it could be that a default was registered and then a couple of years later you started paying a debt collector for a month or 2, in that case it wouldn't be statute barred until a couple of years after it fell off your credit file.

Hope that makes sense?
Also there is info on SB debts here - Statute barred debts and the Limitation Acts
(all the above assumes you are in england or wales - say if you are in Scotland as the law is different)

Edit - or fermi's response it much more succinct!!

Majestic

Thanks for the explanations, Tixy and fermi.

That's made it a little clearer. Although, could anyone clear up for me that the default on a credit file will drop off after 6 years, regardless of the fact that a DCA has picked up the debt.

I understand that the debt becomes 'live' again if you confirm that you are the debtor, which in turn would allow them to persue you and maybe even issue a CCJ - yet this does not affect the fact that any record on your file over 6years, paid or not, will fall off after 6 years.

I'm assuming the only problem you'd have is that should you decide to ignore the DCA there is a possibilty that the issue could end up in court, thus extending your profile of being a poor repayer of credit.

The reason I ask, is that last year I began to repay (and have nearly cleared) an old debt which caught up with me, and i'm desperate to know that this won't in some way refresh the date of the original default.

I'm so nearly in the clear, after 6years of defaults being on my credit file. Surely i've learn't my lesson!

fermi

The default and all details of the account come off your credit files 6 years after the default. That is regardless of whether you have been paying it recently or not. They are not allowed to "refresh" the default.

As you say, the only way it could end up on your credit file again is via a CCJ

Majestic

Many thanks again, fermi.

I suppose my next course of action is to await correspondence of the CCA request.