Do I pay or not?

Dimmented_2

Ok quite an interesting one I think.

I had better set it up first. I got into debt troubles about 8 years ago and got with CCCS to help sort it out. I had paid a fair chunk of it off and felt that I could handle it all on my own and so left CCCS. Anyway it went a bit wrong, about 4 years ago I went to New Zealand to travel for a bit, I had a job working offshore and they assured me that it was ok to go but then changed thier mind and I had to leave the job to go. I had 4 credit debts left at this point but went to New Zealand anyway and stopped paying all of them. I got back about 2 years ago got a good job and have since paid off 2 of the credit debts.

Here is my dilema. All the time away I was getting demand letters that I didn't see until I got back. It read like a comedy with them all threatening but not actually doing anything. After I got a job when I got back I saved and paid off 2 of the debts that were pestering me the most. The other 2 debts haven't contacted me in years. I look at my credit file quite often and they just say that they defaulted in 2008. The 2 credit debts add up to about £3000 and I can afford to pay them but I'm wondering if there is any point?

I'm lucky enough to rent privately from my partners parents and have a lovely house and this is very secure. I am relatively well off as I work offshore and eventually I want to buy a few houses for investment. I can just save up for these and pay cash if need be so don't really need a mortgage. I know it is petty and that I should pay the debts but I'm wondering if there is any point as the defaults will still be on my credit file. Also by paying them off will that make the 6 years before they fall of my file start from the date that I settle them and not the date that I first defaulted? If I leave them will they fall off my file in 2 years as that will be 6 years since the first default or do they need to be settled first? what to do, what to do!

Happytogetdebtfree

I would say yes to paying them off on principle that you can, they can still pursue you as if your last acknowledgement was 2008 it's nowhere near statutory barred. You may be able to get them at a reduced full and final settlement. Hopefully someone with abit more information will be along soon :-)

fatbelly

They will drop off your credit file in 2 years time regardless of what you do.

You dont say clearly when you stopped paying them. They have six years from then (not the registered default date) to commence court action. After that they're statute barred.

If they're not pursuing you I'd leave them alone.

If they do get in touch, bear in mind that they are probably now owned by a third party debt collector who bought them for 10p in the pound.

Dimmented_2

Thanks for the advice so far guys.

According to my credit file at creditexpert I defaulted in 2009 (I got that bit wrong sorry!), I think the last payment I sent was around October 2008.

The barclaycard that I had is now down on the file as being debted to Cabot financial so that one definately got sold. The other one is still Lloydstsb and so it doesn't look like it has. The 2 values are 1282 and 1375 respectively so not massive amounts and that is probably why they have not pursued them.

The last communication I had from either of them was probably over a year ago now. The strange thing is that according to creditexpert I have a 'Good' credit rating, a value of 923 and I have a credit card already with my bank, only for 500 pounds but I don't need any more.

Obviously it would be nice to get rid of the debt but if the black mark stays on my file even if I do then I don't see the point. What do you think?

Vikipollard

I think you 'do' pay because you can.

Yes, the black mark sits on your file for another two years, but as settled.

Realistically, no one is totally secure any more and you have no way of knowing if you will ever need financial services from either of these two creditors (forget the DCAs) in the future. Remember that many are linked to other organisations, so the implications in the longer term may be more than you think.

HTH

cutestkids

You ran up the debt you can now afford to pay it so do so,

Dimmented_2

Thanks for that Cutestkids but the thing is the amount they charged, way way over the top when I defaulted, plus the charges before that when I was struggling to pay everything before the debt management program probably comes to about what I owe! LLoydstsb especially so with whom I had 3 accounts, credit, loan and normal account (with overdraft). They are all crooked, we know that, so if someone has a chance to diddle them a little shouldn't we do it? Look at the PPI and the bank charges that they have charged unsuspecting people over time, these boards are full of people who they have done it to. I am in completely two minds about whether to pay it or not. Yes morally I should but then the money will be better off in my pocket than the banks!

Happytogetdebtfree

I don't know how safe it is not to pay do you want to have it bite you in the !!! later? I suppose you could make full and final settlement offers? That way you both win win?

QueenB.

I think if you can afford to pay then do so. Yes we know all these institutions are untrustworthy and in many ways heartless however we all know this when we take out the credit and we all know the consequences so we can't then complain when they act in a way we know they will. Don't pay them and how are you better than them? Plus as others have said you never know how it will affect you in the future.The best way to rise above them and get your own back is to learn how to play their game and win such as the CC stooshers do.

Dimmented_2

Thanks for that Queen and Happy. I have read other threads on here and have decided that I may try to play the game. I'm thinking that I may contact them and offer 20-30% full and final settlement and see what they say. With that in mind my next question would be: by contacting them and offering a settlement amount (be it a lot less than the actual amount!) does that make me more liable to have to pay since I have admitted the debt? What happens if they do not agree to the full and final settlement amounts, would I have to pay the full amounts? Would they start chasing and sending demand letters again? Because of all the C&@p they gave me when I was struggling to pay I would feel that I lost if I had to pay the whole amount back, wheras at the moment I am sort of winning! I wouldn't mind paying up to 50% but that is all.

Tixy

A full & final settlement does sound like a sensible way forward. I'd imagine you should get fairly low offers accepted (always start lower than you are prepared to pay so that you have negotiating room).

Making an F&F offer doesn't make you more liable, but its likely that it would count as acknowledging the debts - and so would mean that (if they don't accept or you don't pay) they'll then have 6years from the offer to commence court action, rather than 6years from your last payment. As a debt becomes statute barred 6years from the latest payment or written acknowledgement of the debt, if they haven't commenced court action before that date.