Interest query

Deadlycookieshouse

Hi,

Hoping you can help with my query.

I have recently found out that after six years debts are removed from a credit file and you cannot be chased for them - although they still exist. What I'm trying to establish is if after that six years has passed and I then start to pay even a minimal amount to try and start reducing the total amount can interest then be added or will the amount be static and reduce with the payments I make?

I tried numerous attempts to come to payment arrangements but found the debt collection agencies so rude and abusive. I do want to clear the debts though.

Any help or advice is appreciated!

Thank you

happy_bunny_2

You mean they are statute barred?

It's unusual for interest to be added by DCAs.

Tixy

Its not clear from your post whether you understand quite correctly about debts dropping off your credit file and when debts become statute barred. They are 2 different things and are not directly related.

Debts drop off your credit file 6years after the default date shown on your file. That doesn't mean that you can no longer be chased for the debt.

Debts become statute barred (in England & Wales) if there is a 6year period where you have paid nothing towards a debt, haven't written to acknowledge the debt (writing to offer a payment plan would could as acknowledgement) and if the creditor doesn't commence court action in that time.

Once a debt is statute barred if you write to them to state that you believe the debt is statute barred and do not intend to pay then at that point they should stop chasing. However if you don't do that then they are allowed to continue debt collection activities.

sourcrates

Deadlycookieshouse wrote: »

Hi,

Hoping you can help with my query.

I have recently found out that after six years debts are removed from a credit file and you cannot be chased for them - although they still exist. What I'm trying to establish is if after that six years has passed and I then start to pay even a minimal amount to try and start reducing the total amount can interest then be added or will the amount be static and reduce with the payments I make?

I tried numerous attempts to come to payment arrangements but found the debt collection agencies so rude and abusive. I do want to clear the debts though.

Any help or advice is appreciated!

Thank you

Hi,
As has already been said, if you don't acknowledge a debt for a period of six years, then they become statute barred which means the creditor cant get a court judgement against you, just Google "statute barred" there is plenty of info on the www !!!

Deadlycookieshouse

Hi,

Thank you so much for your replies :-)

I tried to come to payment arrangements back in 2007/8 when I first got into debt but after being reduced to tears on numerous occasions by the debt collection agencies I stopped trying - I was having enough problems without their awful comments and accusations when I was trying to pay back the money.

From what I have read I can stop being chased after the six years but it grates on me that I haven't paid them which is why I was going to try and make payments now my personal circumstances have changed (divorced, working etc).

I'm concerned that even ordering a credit report could get the debt companies chasing me again. I think the six years is probably fully covered at the end of this year. I'm wanting to clean up my credit file, wanting to pay off the debts but loathe to make any contact with the debt collection agencies. I wondered if I could just set up a direct debit for a manageable amount without having interest added and without them chasing me.

Apologies if I don't sound that clear about it - it's quite hard to explain how my head is trying to sort it out!!

Thank you :-)

happy_bunny_2

Deadlycookieshouse wrote: »

Hi,

Thank you so much for your replies :-)

I tried to come to payment arrangements back in 2007/8 when I first got into debt but after being reduced to tears on numerous occasions by the debt collection agencies I stopped trying - I was having enough problems without their awful comments and accusations when I was trying to pay back the money.

From what I have read I can stop being chased after the six years but it grates on me that I haven't paid them which is why I was going to try and make payments now my personal circumstances have changed (divorced, working etc).

I'm concerned that even ordering a credit report could get the debt companies chasing me again. I think the six years is probably fully covered at the end of this year. I'm wanting to clean up my credit file, wanting to pay off the debts but loathe to make any contact with the debt collection agencies. I wondered if I could just set up a direct debit for a manageable amount without having interest added and without them chasing me.

Apologies if I don't sound that clear about it - it's quite hard to explain how my head is trying to sort it out!!

Thank you :-)

The accounts fall off after 6 years. Credit file successfully cleaned.

If they treated you like you say, do you think they deserve paying?

They bought your debts for penny in the pound. I wouldn't feel bad.

At least wait until after they are statute barred, as you can likely settle for not a lot.

Good luck

HB

Tixy

Deadlycookieshouse wrote: »

I wondered if I could just set up a direct debit for a manageable amount without having interest added and without them chasing me.

No it cannot work like that. Either you tell them you know the debt is statute barred and do not intend to pay and ask them not to contact your further.

Or you decide to start payments towards the debts, and if you do that then they can continue to chase you. They only cannot chase you if you tell them you do not intend to pay and the debts are covered by the limitation act.

If you do start making payments now, and the debts are not yet quite statute barred, then they won't become statute barred in a few months time. And so the creditors/debt collectors could keep chasing you and could commence court action against you for at least another 6years.