Default - Partial settlement worth paying off???

Lioness_Twinkletoes

Ruby_Gold wrote: »

Hi Twinkletoes.....I can afford to pay it off but will that make my credit history look better and therefore make a mortgage application have more chance of been accepted?

Does it matter? You've had the money and spent it. Are you now saying you will only pay it if there is something in it for you?

teffers

Anthorn wrote: »

6 years from the default date the debt is deleted from from CRA file. But don't be too bolshy about it. It can be a bit late in being removed. But the debt still exists. However the default date can never be changed.

If over the last 6 years you have never made a payment off a debt, you have never admitted the debt in writing and you have never been taken to court to recover the debt then under the terms of the Limitations Act 1980 the debt cannot be enforced and therefore you don't have to pay it. But the debt still exists and if the government ever changed the Act to make old debts enforceable you could then be chased for it.

It is extremely unlikely that any new legislation (or indeed amendment of an existing Act) would introduce an increase in the time-frame an un-acknowledged debt can be legally enforced, and apply this retroactively to exisiting debts.

Enacting legislation that functions on the premise of retroactive application is extremely rare and is usually reserved for far more serious scenarios than common personal debt.

In partial answer to Ruby's question however, I would pay the amount off in full if I could afford it. It may well not have an impact but then again it may. The stakes are high and the amount is relatively low (in relation to your current finances mentioned above).

Ruby_Gold

Anthorn wrote: »

If you pay off the remaining balance then it can only be "settled". The account in the CRA file will however still have a default date and the history of the account will still show the defaults. Whether that will impact a mortgage or other credit application depends on the lender. However you can ask Barclaycard to remove the account but they are not obliged to do so.

Thanks Anthorn

Ruby_Gold

crystal_pixie wrote: »

Ruby_Gold - may I suggest going to a bank that will not use your credit history to make decisions?

Handelsbanken take details of your present circumstances and make decisions based on the information you give them and your future income rather than a credit file.

I am in a similar situation to yourself - a high earner with savings but with defaults. Even with financial disassociation and payment of debts my credit file is still damaged for 6 years.

I went to my local Handelsbanken branch and explained my circumstances - they gave me a current account and my partner and I are looking to go for a joint mortgage soon.

It may be worth a try.

Thank you. I have a branch near me and will make an appointment to see them. It seems they have the personal touch which will give me and my husband a chance to explain our situation.