Advice Required Re Defaults & Settled Accounts

mikaop100

Hi All,

I'm posting this as I have seen lots of conflicting information regarding defaults and settled accounts.

I'll use this example:

A mobile phone debt defaulted 01/01/2007
Settled 01/01/2010

Does the default drop off the credit file 6 years from the default date or 6 years from the settled date?

I.e. 01/01/2013 - Original default date or 01/01/2016 date settled?

I've seen some posts (not necessarily here) where people have said that the default will remain on file for 6 years from the date settled whilst others have said the opposite...

This lnsolvency helpline states '...this should mean that even if you settle a debt nearly 6 years after a default, the debt will be removed from your file 6 years from the date you defaulted.'Which is correct? I ask as I have a mobile phone default resurface with Lowell 4 years after the default and I want to know whether to struggle and pay it in full now (and get the next 6 years over asap) or pay monthly (which I could better afford) and not worry about the default clock ticking again?

Thanks for your time guys! :j

Culex

mikaop100 wrote: »

Does the default drop off the credit file 6 years from the default date?

Yes.

I've seen some posts (not necessarily here) where people have said that the default will remain on file for 6 years from the date settled

As the French say, "Certaines personnes parlent en dessous de leur nombril".

I ask as I have a mobile phone default resurface with Lowell 4 years after the default and I want to know whether to struggle and pay it in full now (and get the next 6 years over asap) or pay monthly (which I could better afford) and not worry about the default clock ticking again?

When did you last make any payment towards that debt, or acknowledge it in writing?

Where in the UK do you live?

mikaop100

Hi Culex,

Thanks alot for the reply I really appreciate it...

I have just checked my bank statements etc and I last made a payment/acknowledged it in January 2008 so its just over 3 years rather then 4 and I live in England...

I can arrange a repayment plan but I was worried that the default will hang around until 6 years after its settled... I'm guessing this is wrong so the most affordable thing for me is to pay monthly and not worry about the settled date?

Sorry for my ramblings... and thanks again!

Culex

mikaop100 wrote: »

I can arrange a repayment plan but I was worried that the default will hang around until 6 years after its settled... I'm guessing this is wrong so the most affordable thing for me is to pay monthly and not worry about the settled date?

Yes.

It wouldn't become statute barred for another three years. If someone were to take you to court in that time, they'd probably win and, unless you satisfied the judgement (including costs) within a month, there'd be a CCJ sitting on your file for another six years.

mikaop100

Ahhhh I see thanks again Culex.

Good to know that it doesn't matter if I pay it all off at once or over a few payments, the default will still drop off 6 years from the original date. Right I'm off to make a payment plan...