Repayment advice

imanewbie_2

Dear All,

I defaulted multiple times on a Lloyds loan in 2002, didn't pay it and it was on my credit file, Lloyds passed it onto a company called Aktiv Kapital in 2004 and I am repaying them £30 a month (since 2004). Llyods default information had been removed from my credit file in 2009.

Question is, as the default was nearly 11 years ago, and I no longer have this on my credit file, could I stop paying Aktiv Kapital or do I still need to repay it until I paid it in full... just not sure where I stand on this...

Any advice would be greatly appreciated.

madhatter90

You would need to keep paying it, as any new non-payment would become a new default on your account. Statute-barred only applies 6 years from the last acknowledgement of your debt (which in your case would be the last payment). Something you might want to try is a "Full and Final Settlement" - I've linked to the National debtline webpage on the issue. The debt company might consider taking a discounted amount of the debt as long as you pay it in a lump sum.

imanewbie_2

Thank you madhatter90, the Aktiv Kapital monthly repayments doesn't even show on my credit file (I regularly check mine online), if that's the case how would the default appear on my credit file if I decide not to pay?

I'm sure there's a perfectly sensibly answer to this, but I'm just curious in finding out.

TheMoney

The amount you owe is still a debt, and as you are currently paying it you aren't getting any closer to the 6 year limit. As mentioned previously, a full and final settlement will be your best option. The best advice I could give would be that if it seems to good to be true, it is! Just because it doesn't show your monthly payments, doesn't mean it's that easy to just ignore the debt exists. Good luck repaying, hope it all works out for you

busterkeye

madhatter90 wrote: »

You would need to keep paying it, as any new non-payment would become a new default on your account. Statute-barred only applies 6 years from the last acknowledgement of your debt (which in your case would be the last payment). Something you might want to try is a "Full and Final Settlement" - I've linked to the National debtline webpage on the issue. The debt company might consider taking a discounted amount of the debt as long as you pay it in a lump sum.

im very close to paying my debts off (£1200) and I have a default on my records from about 4.5 years ago so another 18 months to go (im just going to start a thread asking for advice on defaults and away of removing them) the thing is our circumstances have changed and we are now in potion to pay it off, I have asked the 3 companies for a full and final settlement offer and im happy with the offer apart from Ive been told that a 'Partial payment' record will be on my credit history and it wont look too good, so im thinking of letting it run its course the debts will be paid of in jan anyway as im paying £300 a month to stepchange
Experian told me its not a very bad thing to have the 'Partial payment' on your records but its better not to have it, so my advice would be if your thinking of getting credit in the future or a mortgage then dont do the full and final settlement because your default notice may have gone but as im aware the 'partial payment' will be on your records from the day you pay... I maybe wrong

matttye

madhatter90 wrote: »

You would need to keep paying it, as any new non-payment would become a new default on your account.

This is incorrect. You can only be defaulted once for a debt. Even if it's sold on to a new company, if the original creditor or a previous debt collection agency has defaulted you for it, the new DCA cannot default you for it as well.

They only get one bite of the cherry.

They could, however, obtain a CCJ, which will of course stay on the credit file for six years from the date it's made by the court.

imanewbie_2

Thanks everyone, as it's not shown on my credit file, if I make a final payment I assume the (P) - partial payment wouldn't show up on my credit file either, is this correct?

matttye

imanewbie wrote: »

Thanks everyone, as it's not shown on my credit file, if I make a final payment I assume the (P) - partial payment wouldn't show up on my credit file either, is this correct?

Correct. If it does appear on your file for any reason, you can demand it be removed as it's more than 6 years since they added the default.

dutchhutch

Hi there, sorry to jump in your thread but i posted my own and nobody has replied.

I have a default from a credit card from 3 years ago. This debt shows up on my Equifax but not on my Experian. I moved house and so totally forgot about it till i recieved this letter and checked my files. I have recieved a letter from a debt collection agency and I intend to pay this off. My question is this, since the original account never showed up on my Experian, just my equifax, what are the chance of this debt company reporting it to Experian and it showing up as a new default?

Also how does it work on your file when a default is bought by a DCA? Does it appear as a new line of credit with the monthly repayments showing up or as an extension of the original debt?

Any info would be much appreciated..

dutchhutch

Any info watsoever would be very much appreciated

thequant

imanewbie wrote: »

Dear All,

I defaulted multiple times on a Lloyds loan in 2002, didn't pay it and it was on my credit file, Lloyds passed it onto a company called Aktiv Kapital in 2004 and I am repaying them £30 a month (since 2004). Llyods default information had been removed from my credit file in 2009.

Question is, as the default was nearly 11 years ago, and I no longer have this on my credit file, could I stop paying Aktiv Kapital or do I still need to repay it until I paid it in full... just not sure where I stand on this...

Any advice would be greatly appreciated.

If this was before Nov 2004, then it is likely your debt was bought by "Olympia Capital ASA". At this time Olympia (which was bought by AK) didn't hold a Consumer Credit Licence and were trading illegally in this coutry and you have been the victim of a criminal offence.

I would investigate this further, it is likely that not only is your debt not enforceable, but you are also entitled to refund to all of the monies you have paid them.

I say this because I recently took legal action against Aktiv Kapital and have had it ruled that my debt does not exist and I am entitled to all the money back I have paid to these fraudsters.