Statute barred debts - so confused!!

gilhug83

Hi there

I have read loads of questions and responses with regards to this and yet am still no clearer on what the situation is! I am being pretty thick here but can anyone give me some totally dumbed down advice re the following??

I knew I had debts outstanding from when I was younger and stupider but didn't know to whom or for how much etc. I set up an account with Noddle to view my credit history and it shows two separate debts to Lloyds TSB (one for a credit card and one an overdraft). I intended to try contacting Lloyds regarding paying these off in small installments as I desperately want to improve my credit rating.

However, then I stumbled across some stuff about statute barred debts which made me think twice about doing this. The status of both of these debts is shown as 'default' and the first defaulted payments were in September and October 2006. I was abroad for a while working and have had a few addresses in the UK since returning so I have never received any letters from Lloyds regarding these although I am quite sure they will have sent some somewhere.

Basically what I want to know is:

1. If I just do nothing will these unpaid debts fall off my credit report in the next year anyway?
2. From what I understand the statute barred thing relates to whether the debt is enforceable so that's fine but if my main priority is bettering my credit rating rather than just avoiding making payments - am I better to go ahead and contact them to start paying this off voluntarily? There's not much point avoiding them if they'll always be showing on my report anyway and preventing me from obtaining credit.

I know the honest course of action would be to pay them off but I would feel a but stupid if I contacted them voluntarily right before they were about to be wiped off anyway, if that is the case.

Can anyone help?
Thanks!

gilhug83

ps I'm in Scotland, not sure if that's relevant but some things I've read say in Scotland they are statute barred after 5 years rather than 6 as in England and Wales...again, I could be totally wrong about that!

RAS

The issue is not when they defaulted but when you last made any payment to these accounts or made a written acknowledgement?

The defaults will fall off your credit record this September and October, whether you pay the debt or not.

And in Scotland, the debt is wiped out after 5 years rather the English rule were they become unenforceable after 6 years.

The legal system depends on where the debt was taken out not where you now live.

gilhug83

Thanks very much for replying RAS.

The default date would be the last time there was any contact, I'm not proud of it but I was 22 and just moved abroad and ignored all payments due and I've never corresponded with them since. It's been hanging over me for years that the debt was still there and I would love to know it was gone so I can't quite believe that if I just don't take any action it will go away on it's own whereas if I contact them now I would have to repay it and the 5 year period would start from scratch wouldn't it?

The debts were taken out in Scotland too, so should they not have disappeared last year then?

nottoolate

1. yes

2. wont improve things. & as you are in scotland the debts are extinguished anyway

RAS

gilhug83 wrote: »

The debts were taken out in Scotland too, so should they not have disappeared last year then?

No

They are extinguished after 5 years as nottolate says
but they remain on your credit record for 6 years.

So they will drop off in a few months.

Sometime people keep paying after the default date, sometimes the default date is well after the last payment.

gilhug83

I will keep an eye on it later on this year then and not contact them in the meantime.

Thanks again to both of you for replying