6 year debt rule?

Mancunian

how does a default show on a credit report?

fermi

McKneff wrote: »

See the BOLD, this is incorrect, as Ferni and I said, it it 6 years and (maybe) 1 month since the default was registered

Well no, as actually john1965 was closer to the mark, as default dates on your credit report have nothing to do with when the 6 years start for statute barred debts.

However, the OP here didn't ask about statute barred debts, so not sure why everyone is going on about them.

The question was about defaults on credit reports and how long they stay for.

fermi

Mancunian wrote: »

how does a default show on a credit report?

The account will say "Defaulted". With a defaulted on date, and a "8" or a "D" status marker denoting the default status from that point onwards.

Mancunian

so debts wont ever go away really its an urban myth.

thanks all! nice people!

fermi

They will be removed from your credit file 6 years after a default.

They may become unenforceable via the courts if no legal action is taken within 6 years and you do not pay or acknowledge them.

But no, debts to not entirely "go away".

jon1965

fermi wrote: »

Well no, as actually john1965 was closer to the mark, as default dates on your credit report have nothing to do with when the 6 years start for statute barred debts.

However, the OP here didn't ask about statute barred debts, so not sure why everyone is going on about them.

The question was about defaults on credit reports and how long they stay for.

Thanks Fermi
I was just trying to cover all bases. As the OP had mentioned non acknowledgement I assumed he had got defaults and statute barred mixed up.

And you beat me to it in explaining why they don't go away

lilydoodle

The original question was about SB as well.

For this, the OP needs to Google the Statute of Limitations which is the legislation governing this, and explains it clearly.

The debt never goes away, but it cannot be pursued through the courts, so although many view it as morally wrong, if you choose not to pay it, nothing can be done. DCA's may ask you to pay it, but if you point out it is SB, they should leave you alone.

MrsTinks

Well no it can't be pursued in court... UNLESS the creditor can prove the debtor intentionally avoided the debt by moving once tracked down and that letters were sent etc etc etc - it gets frightfully complicated but a judge could in an extreme case grant a CCJ after the 6 year limit...

Also even if SB should the debtor have another account with the same creditor again I think they can still use the rule of off setting... provided they still own the debt. Someone might be able to correct me here...

lilydoodle

I can correct you, and there's no easy way to say you're wrong! :beer: Once SB it stays SB for good. No right f offset, no deliberate avoidance, if it's SB it's SB. It's not complicated at all, just read the Statute of Limitations.:D

fermi

MrsTine wrote: »

Well no it can't be pursued in court... UNLESS the creditor can prove the debtor intentionally avoided the debt by moving once tracked down and that letters were sent etc etc etc - it gets frightfully complicated but a judge could in an extreme case grant a CCJ after the 6 year limit...

Nope.

The Money Advice trust say in their training under 'deliberate concealment':

'It is for claimants to prove that they could not reasonably have discovered the facts concealed by the defendant (Paragon Finance v Thakerar 1999). The mere fact that a defendant cannot be traced, with the result that the claimant does not commence proceedings, does not prevent (a cause of action from accruing and) time from running. Even where a person is deliberately hiding from a claimant the 'concealment' provisions relate only to concealment of the cause of action and not to cases where debtors conceal themselves from the claimant (Lowsley v Forbes 1999) '

In other words, just avoiding the creditor does not stop the debt becoming statute barred.

You would have to in some way conceal that fact that the creditor had a right to take court action in the first place.

Not somnething you are going to be able to do for a consumer debt, without doing something rather mad like hacking into the creditors systems.