Advice with past debt-issues

reload

I defaulted on a Lloyds TSB credit card when I was a student (year 2002), this default was passed onto a debt collection company in 2005, ever since then I pay the debt collection agency a monthly fee to clear the deficit.

I currently have around £3,000 outstanding to pay off, all this information was showing on my credit file up until last year, but this debt history is no longer visible on my credit file.

I would like to know, do I need to continue paying off the debt collector, or as it's over 10 years old case and doesn't exist on my credit file, could I simply decline to make further monthly payments?

Any advice would be truly appreciated - thank you.

McKneff

Debts are usually statute barred after 6 years.

If this is not on your credit file, I would simply stop paying it if you wish, legally you still owe the debt but they cant enforce it.

If they come back to you demaning payment, come back on here for a statute barred letter template.

Good luck.

fermi

Err.... no. If they have been paying something every month since 2002/5 (with no 6 year gap), then it can't be statute barred.

reload

McKneff wrote: »

If they come back to you demaning payment, come back on here for a statute barred letter template.

Good luck.

Thank you, appreciate your quick response, I'll do just that.

Moneymash

Bump!

OP come back and read what Fermi says. If you have been paying the debt each month, you are acknowledging you still owe the money, so you can't stop paying without consequences. It's dropped off you credit file becuase you defaulted and they drop off after 6 years whether you have finished paying the debt or not, but you do still owe the money.

McKneff

fermi wrote: »

Err.... no. If they have been paying something every month since 2002/5 (with no 6 year gap), then it can't be statute barred.

But if it isnt on his file, surely (yes, I know he still owes it) but if it isnt on his file is it not then unenforecable.
(as statute barred ones are)

I'm quite happy to be corrected.

fermi

McKneff wrote: »

But if it isnt on his file, surely (yes, I know he still owes it) but if it isnt on his file is it not then unenforecable.
(as statute barred ones are)

I'm quite happy to be corrected.

I'm afraid it doesn't work that way.

Whether a debt is on your credit file or not has nothing to do whether it is enforceable or not.

A debt will be statute barred after 6 years of no payments or acknowledgement, but each time you pay before the 6 years is up, you reset that 6 year period back to the beginning. You "renew" the cause of action.

So this debt would have never at any point become statute barred.

It may not be on the OP's credit files, and it is true that no-one should be able to place another default on them for it.

However, if the OP was to stop paying the DCA/creditor would not be barred from taking court action, which if a CCJ was granted would be a bigger blacker mark on the file than any default ever was, and would last for 6 years more.

reload

Please tell me that i can save £50 a month!!:j

McKneff

Sorry reload, Fermi knows much much more about this than I do and she has taught me something too,

Apologies Fermi and thanks.

Moneymash

Only if you want to risk getting a CCJ and ruin your credit file for years to come.

If you've been paying £50 each month then you've budgeted for it, why not keep paying it. Altenatively, if you can raise 20-30% of the remaining sum maybe you could offer them a full and final offer to clear the debt outright. You may have more chance of them accepting this since the debt is no longer on your file.

PS Am I the only one that can see Fermi's signature?

reload

Thanks everyone

I will keep paying its better to be safe.