Will payment add to, and negatively affect, to credit file?

ehyouwhat

Hello,

Having spent the majority of my 20's in debt, I eventually started to sort myself out. It's been a long struggle but I've paid most things off, have a climbing credit score, and have been obtaining and managing a modest amount of credit since then (mobile phone, car loan, credit card).

My Experian credit file is clear of missed payments, CCJs or defaults. I checked Equifax a little while ago and it too was clear.

Recently a company wrote to me and demanded payment of an old debt (it must be from 6-10 years ago). It didn't give an amount and, fearing acknowledging a debt, I ignored it. Another letter arrived, was ignored and then finally at the weekend I received a notice from Aktiva Kapital speaking of an £1,100 debt. The letter mentions that they "may" make arrangements for a doorstep agent to visit, etc. The letter goes on to say that I can settle the debt in full, by today, for £225.

Now I don't have an objection to paying this at all. However, I'm worried that by paying it, I am acknowledging a debt that will then appear on my credit file, and muck up the work I've been doing over the past 6 years.

Should I ignore it (not the moral thing to do) or should I pay the settlement, and hope it doesn't suddenly appear on my credit reports and lower my scores?

Tixy

This debt should not reappear on your file. Worth ensuring you keeping a saved copy showing it is not on (just in case they incorrectly and unfairly did add anything to your files in relation to this debt).

Before you pay them anything consider if the debt may be statute barred - how long since you last made a payment towards this debt or wrote to the creditor/debt collector to acknowledge that the debt was owed?
As far as you know did the creditor ever take court action against you?

If the debt is statute barred then you can just send the statute barred template - Statute barred debts and the Limitation Acts

If you don't know what debt the letter relates to, if they have not specified, then you may want to send the hybrid letter from the thread above.