5 year old default...worth paying?

crazy_chick_573

even though you don't actually have the card did you cancel/close the account?

ratttyo

yes the account is closed! Was closed on Sep 7th 2001. but looking at this credit report its reporting monthly to all the credit agencies as a default? Ive never spoke to these people?

Have not got the original paper work for the capital 1 account as Ive tried contacting them but they cant identify me because of the data protection act?

jamesd

ratttyo, since they are recording new defaults now your situation is different. You will benefit from paying the money off sooner if you can readily afford to do so. If you can't afford to do it, you could wait for the legal limit to bar collection. Once that happens it'll be on your credit report for another six years as a defaulted debt.

Since the limit is not yet ended they could seek a CCJ against you and enforce that. This won't go away at the current six year mark.

If you do choose to pay it, you might try offering 25% of the outstanding amount. They may accept 50%. If you have substantially more money, don't give them indication of it or they will be encouraged to pursue the CCJ route, believing correctly that you can afford to pay their costs as well as the debt. Expect them to send you a form to fill in asking for details of income and savings and such as their initial response. You can decline to do so and say that you'll arrange to have the money available if they accept the offer.

Do note that the six years is (roughly) from the last time you paid or agreed that you owed the money. The moment you offer to settle the debt you're committed to paying off all or part of it.

ratttyo

you could wait for the legal limit to bar collection. Once that happens it'll be on your credit report for another six years as a defaulted debt

I dont quite understand what you mean by this ? Do you mean this debt is not going to fall of my credit reports in Sep 2007. They have threatened with CCJ action.

This account was defaulted in Sep 2001 on the credit file...they started reporting defaults again in OCT 2006. so they have been doing it for 6 moths now. AS a result Barclaycard have lowered my credit limit.

This is the only problem on my credit file. Yes I can afford to pay it .

Jamesd Thx for your post very helpful

RayWolfe

This board is becoming a crooks charter. You owe money, you have the money to repay it, so repay it!
Why on earth the rest of us should pay your debts when you are in a position to do so, I cannot understand.