5 year old default...worth paying?

mr_darrin

Hi,
I have recently been looking at my credit rating and I have a default on a credit card when I was an irresponsible student from Nov 2002. As far as I know this should come off the report in Nov 2008. Is it still worth getting in touch with cradit card company and paying it off? Or will this then state setteled and stay on for another 6 years and make things worse?

Hope all that makes sense. Only £323 left on the card so I could pay it off it it would help.

Thanks

Darrin

xgingerx

Hi regardless of if you pay it or not, the default will come off exactly the 6th Year to the date of the default.
Should u pay if off ? good question , I suppose u spent it so u should pay it if you are wanting to take the moral highground

But if you dont it will come off anyway in a years time, your report would be looked on more favourably in this last year if it showed you have satisfied the dafault. Depends if you need credit or not to how important this is to you.

with the amount so low (under £500) the chances are it will have already been written off. Just a word of warning though, I know for a fact on CCJ's that when the 6 years is nearly up and the ccj has not been paid they are beginning to start the process from scratch and potentially get another ccj to mess your rating up for another 6 years and they can and will if the amount is worth the trouble. Defaults I dont know if they would do this, although I did owe about 500 pound from 1997 and a collection agency contacted me and I still paid a settlement figure to clear it even though it was not on my file anymore they could still then take me to court and issue a ccj for it, this 6 years time bared is a myth as if they can prove the debt is your and for whatever reason you have tried to avoid paying it you dont have a leg to stand on. But this is complecated subject and I know there is a lot of discussion about it.

For 300 quid, Id be tempted to call them, and make a full and final settlement to clear it but thats just me

If you pay it, it WILL still come off in 2008, 100% sure.

RayWolfe

Pay it. Make a fresh start. Feel good about yourself.

southernscouser

Even when the default does drop off the report you will still owe the money! And there is nothing to stop the company applying for a CCJ after that date which will then knacker your report for another 6 years!

To be honest I'm surprised you haven't been issued with a CCJ having made no payments towards it!

Have you received any correspodence from them at all or perhaps moved house?

ratttyo

I thought a company couldnt chase you legally after 6 years for a debt as long as no written contact or payments have been made within that time? they cant apply for a CCJ after that.

xgingerx

yes they can chase u for as long as it takes, there are ways around it, ie you moved address but didnt tell them is a good one !! they could argue u r trying to avoid the debt
Beleive me my sister in law has a ccj come off last year and in the post about 2 weeks later was a fresh CCJ to go to court !!! She made a full and final settlement there and then to avoid it going to court..

I had one debt from 1997 which they caught up with me after working abroad after 10 years !!! I paid it as they could get a ccj raised.

Today they will fight for what you owe and if its not the original company, the debt agency they sold the debt onto definately will.

At the end of the day in my case I spent the money so its time to pay and had no problem with this.

ps if only it was that easy to get debts written off and cleared from your life for ever in ony six years !! Wow what a world that would be

CLAPTON

i would council caution and awaking the dead may cause lots of problems.

the views expressed in other posts are, in my view unreliable and i would suggest you contact nationaldebtline / cccs /payplan /cab to seek there views

jonnyb

according to the FAQ section on Experian's website regarding credit reports, the data is stored for 6 years from the date of default, then it "falls off" and will no longer be visible to lenders.

paying the debt off will not mean it stays on any longer, and it will make you look more responsible while the settled or reducing debt is visible to other lenders.

ratttyo

I disagree. 6 years is ample time to get in touch with a debter. If a company has not been in touch within that time they cant take you to court. Get them produce documentary evidence of the correct value of the outstanding balance, including the input of tax relief for the original creditor. Laws are in place to stop companies being able to chase debters for life. If there as been zero wiritten contact and no payments made withinn 6 years by law theres nothing that can be done! Debt collection agencies yes will pursue debts in the hope that intimidating a debter will result in them coughing up but if you never answer the door, what can they do. I'm speaking from personal experience. Theres no prison for debters!

xgingerx

rattyo -

THIS IS A FACT:

If they can prove that you have tried to avoid the debt, ie by moving address and not telling them they can chase the debt for more than 6 years.

If it was as easy as taking out credit and not paying it back, i would have taken out 25,000 quid, and then not pay anything back , move house , not link my old address to my new address, and then in 6 years I would not owe a penny, come on, this is not going to happen.

He owes £300, he spent it why not pay it ? If we all decided not to pay our debts then what would become of the world.

southernscouser

ratttyo wrote: »

Theres no prison for debters!

Thats not strictly true.

You can be imprisoned for not paying Crown debts or whatever it is called, eg council tax.