Advice please... credit rating

stupid_3

In 1998 I took out a loan and made the monthly repayments until I went on holiday and stayed for 2 years (very bad not to pay the outstanding amount back, I know!).

I came back into the country in 2001, have lived in a different area and never thought anything about the loan. An agency has caught up with me. I am embarrassed to say that I have lied to them and told them that I’ve only been in the country since 2001 and therefore can not possibly have taken out the loan. They now want proof of my arrival date, either by means of a stamp on my passport, or a utility bill. I feel sick to my stomach for this lie and am resolved on paying back the £1,091 that I owe, however I need to get a mortgage this year and don’t want it to affect my credit rating – at this time, my credit rating is fine.

Does anybody know what impact this will have on my credit rating? I have 1 week to find evidence of my never having lived here pre-2001.

ftbworried

:eek: dont lie, that's FRAUD and you can forget your credit rating for a mortgage- you'll have a criminal comviction for fraud and that will outshadow any credit rating!

Infact, I don't know whether you will already be considered as having committed fraud since you have already lied to avoid payment.

Sutty

I'd definately go for honesty on this one. This is just my opinion but I would ring them and say "Very sorry, i completely forgot i owed this money but I accept it is my debt and am prepared to pay it. Ask them if they are prepared to accept a settlement figure and see what they offer"

We tried this with an ageny chasing us for £660 and they settled for £330.

Also, not sure about this but, if they haven't raised an adverse entry on your credit report yet then if you settle the debt the chances are they won't at all ( this can be negotiated). If you keep denying its your debt you will eventually end up with a CCJ or something.

Give it a try, hope it gets sorted.
Sutty

stupid_3

Thanks to both of you. I know what I have to do now and will do just that. Hard lesson to learn:(

thesaint

While I agree that you should not have lied and need to pay the money back, It is not for you to prove your date of entry to the U.k. or otherwise.
If theypursue you, they have to prove it's you, and show the original loan agreement to you, DO NOT
acknowledge it until this point.

CLAPTON

if you have paid nothing on this debt for 6 years and have not acknowledged it in any way in writing, then the debt is statute barred i.e. they can't enforce the debt.


see this excellent site : (scroll down to the bottom and use their suggested letter to write back to them)

http://www.nationaldebtline.co.uk/england_wales/factsheet.php?page=25_liability_for_debts_and_the_limitation_act

as far as your lies are concerned, i would suggest you simply ignore that issue and send the letter (obviously by recorded post and keeping a copy).

if your feel obliged to explain anything at all, simply say you were a little muddled after all this time and upon more careful consideration of your situation you find the dates your formally quoted were wrong. In any event as the debt is statute barred its all a bit irrelevant. say you can only deal with any further matters in writing....don't dig yourself into any more holes so no long conversations on the phone. keep it simple ..statute barred ..write to me only ..goodbye