Can credit reports be wrong?

MrJames1980

Or can you still be pursued for 'settled' debts?

Long story short I got into problems a few years ago, I lost my home and I didn't pay the shortfall. (Yes, I know, I'm bad.)

Every so often the collection arm of the bank writes to me and invites me to pay them money, or to set up a direct debit. I haven't.
I checked my credit report earlier this year, and it said the outstanding debt for the mortgage and subsequent loans was settled in 2009.

But now I've had another letter saying that if I do not set up a direct debit straightaway, within three days baliffs will be sent to my current address.

So I was wondering, perhaps once a debt has been 'settled' with one company, can it be sold onto another?

MrJames1980

For a long time they threatened me with court action, which I almost welcomed since it would bring everything to a close. But they never went through with it, it was always 'We will start court proceedings within five working days unless you begin payments.'
But they never did.

Cycrow

it doesn't really matter how its marked on your credit file, you can still be pursed for your debts.

you can be paying for defaulted debts long after they have been removed from your credit file

MrJames1980

Thanks, this is the information I want. So legally they still have the right to pursue me? Is there a time limit on that, or can I expect it for the rest of my life? :eek:

Cycrow

legeally you can pursue for as long as it takes.

however, if you have not acknowledged the debt in 6 years, it becomes statue barred which means they can no longer enforce the debt though the courts.

which means at this time you can simply refuse and theres nothing they can really do about it.

every time you acknowledge the debt, ie through writing, or making payments, this 6 years resets

MrJames1980

That's what I thought. I've never acknowledged the debt or made a payment because of that, but recently I was told by a self confessed expert that the 6 years is reset whenever they send a correspondence, whether I reply to it or not! So, that's incorrect?

Also, when does the 6 year statute begin? Is that the date I stopped paying, or when equifax declared it as settled? If it's the former, then I have only a few months left.

MrJames1980

Also I just want to say I don't make a habit of not paying what I owe. All of my other outstanding debts I've managed to pay (and it was not always easy) and finally I'm starting to get back into good credit. Not paying this debt is not something I'm proud of, but it's such a large amount I felt I would never finish paying it if I started.

fermi

Statute of limitations on mortgage shortfall capital is usually 12 years rather than 6.

See this link for info ---> Mortgage shortfalls

matttye

MrJames1980 wrote: »

That's what I thought. I've never acknowledged the debt or made a payment because of that, but recently I was told by a self confessed expert that the 6 years is reset whenever they send a correspondence, whether I reply to it or not! So, that's incorrect?

Also, when does the 6 year statute begin? Is that the date I stopped paying, or when equifax declared it as settled? If it's the former, then I have only a few months left.

The timer starts from the 'cause of action' (i.e. when the lender first had a right to sue you), so this would be from when you missed a payment.

Like fermi said it's 12 years though in your case. Well, the interest is still statute barred after 6 years, but the rest of the debt is 12 years.