Default nearly at 6 year point - Advice needed

TheChar

I am in a bit of a predicament with my credit file. I had a default registered for a loan I had about six years ago. I moved and haven't made any payment at all since the default. Recently I have received a letter from Scotcall asking me to contact them. They haven't said its about this but as it's the only outstanding debt I have I assume it refers to this.

Anyhow, I am looking to get a mortgage when the default drops off my file as everything else it fine on there. I am willing to start to pay this amount but I am worried if I start to do this it may not fall off my credit file.

Can anyone give me advice as to whether it would be better to wait for the debt to fall off my credit file before I contact them about payment or if I could start making payment? I am worried if I do start making payment this will mean the debt stays on there.

Hope someone can help.

ValHaller

The default will (should) drop off your file at 6 years after the default. So no damage there from paying. But if you start to pay at any time before 6 years are up, the debt will not become Statute Barred. You risk being sued and getting a CCJ at any time up to the 6 years. This in turn will trash your credit record. If you pay anything, you restart the clock and give another 6 years in which you can be sued. So if you are not able to pay the debt in full, it might be better to let sleeping dogs lie.

As Scotcall have not said what this is about, I see no reason to contact them.

TheChar

Thank you. It is literally 2 months until it will fall off my credit file so I am hoping things will stay quiet until then.

Am I right in thinking that a CCJ could still be registered after the six year point when it has dropped off my file? I have been advised to send a statute barred letter after this point but I was thinking I would pay it off in case that caused issues.

With regards to Scotcall, their contact just gives a reference number and says call us about your account. I am just a bit worried that the contact from them has just started. I'm worried they may be starting proceedings to issue a CCJ?

ValHaller

If you have paid nothing and not acknowledged the debt in writing for 6 years, then Scotcall are out of time to seek a CCJ. At that point, you can claim that the debt is Statute Barred as a complete defence.

If you have paid anything in the mean time, then the 6 years clock is restarted at that point.

Scotcall might start proceedings. I will leave others with more experience of them to answer that point. But they might not. There is no point in contacting them until and unless they do start proceedings - at this point you will recieve court papers and have an opportunity to defend or even negotiate a settlement.

jamesd

You can't get a CCJ for a statute barred debt if the court knows it's statute barred. A CCJ comes after a court decision against you and statute barred is the defence that prevents the CCJ from being granted. But you must tell the court that it's statute barred in your defence. If you don't do that the court might grant the CCJ anyway, then you'd have to try to get it set aside, which should be successful.

What they are probably doing is one last round of letters in the faint hope that they might get a response. Any response at this point would give them cause to try to move rapidly to county court action because they will also be aware of the statute barring time limit. Dropping any slight hint that you have money to pay increases the chance of them doing that.

Ignore them at least until it is statute barred and you are settled in whatever place you buy with a mortgage. Actually moved in and settled, not just mortgage approved. After that, if you want to make their day with no financial benefit for you, you can contact them and offer to pay them something. No financial benefit but maybe moral benefit, which you might consider worthwhile.

fatbelly

I agree with VH 100%. There are two reasons not to contact Scotcall.

1. If it's the account you think it is, it is about to go statute barred and so they have (on what you have said so far) two months in which to start court action.

A debt becomes statute barred if there has been a six-year period when you have not acknowledged the debt by payment or in writing. It's nothing to do with contact by them and it's not directly linked to the issuing of a default notice. It's just that in this case you said the two events (you stopping payment and them issuing a default) happened at the same time.

2. They have not even stated what this is about. Scotcall tend to be sub-contracted by some of the least reputable debt collectors and debt buyers so truthfully this could be anything. Not only may it not be the account you think it is, it may not even be your debt. Until they state explicitly what it is (and in the vanishingly small chance of the debt owner commencing court action they would need to do this in their particulars of claim) I would not make contact.

Edit: also agree with James. Payment is your choice. Just don't shoot yourself in the foot. I suspect there is a debt buyer behind this who probably paid 3p in the £ for the account (if it is this one)

TheChar

Thanks guys. I have not paid or acknowledged the debt at all for almost six years. I think the best option is for me to wait out these next two months so it's off my file and statute barred.

Good point about the mortgage. I will wait until I am settled into my new home before I make any contact. I have heard bad things about Scotcall in any case. Someone said they send out mass letters and txt messages in the hope that they get a response. Think the best bet is to ignore them.

Thanks again guys!

[Deleted User]

you can easily stall them for two months; writing return to sender on the unopened envelope a couple times should give you the two months you need.

eyeopener2

If it's nearly 6 years since default then it could already be statute barred. Defaults tend to happen a few months after the problems start. Just a thought.

I'd play it cool for now and wait for scottcall to actually confirm what they are after. Don't contact them, they will start sending out theatogramms soon enough.

E2

TheChar

Thanks I was thinking I'd try to stall them.

When I have checked this properly on my credit file it says the default was applied 10/11/07. Does anyone know if this will fall off exactly on 11 November this year of if it will just fall off at the beginning of November?