Defaults Disappeared

guygabiour

Hi all,


I have been managing four defaulted debts for many years. The 6 years anniversary of all debts has gone and all have disappeared from my credit file.


I continue to pay the amounts I have agreed with the original creditors but now these debts are being sold on and sold on.


My question is this, what is my legal responsibility? If I don't have the debt on my credit file do I need to worry, I assume I cant default on a defaulted debt ?


Do I need to deal with these new collection agencies ?


Any help advice legal or moral steer would be appreciated.

happy_bunny_2

They should not reappear, but sometimes DCAs change the date to get you to contact them. If they do, written complaint telling them to remove it.

They can take you to court. That would likely get you a CCJ for another 6 years.

If taken out before April 2007 (not for overdrafts) send the new companies a CCA request. No signed original agreement with correct contents, no CCJ if defended. They will still chase you but they can't make you pay.

guygabiour

Thanks Bunny, I don't profess to know all the jargon in your post but reading between the lines I get it.


Thanks for your reply.


My defaults were after 2007, I think 2008.

happy_bunny_2

Basically, if they have their house in order and you refuse to pay, they can take you to court, get a county court judgement and screw your credit file for 6 more years.

It's not the default date that's important, it's the year you took out the account. In the past, companies have been max at keeping agreements or even making sure they got a signed one. They are also often not compliant with what they legally should have in them.

If they fail to do this, you can defend court action and avoid a CCJ.

A lot depends on what you can afford to pay.

Not meant to be jargon, ask if you need it explaining

HB

guygabiour

Thanks HB that's helpful, I will make contact and make sure they have all relevant paperwork and agree a monthly payment.

The_Boss

I guess what you're really asking is "Now the defaults have dropped off my credit file, can I weasel out of paying off what I owe?"

swampduck

The_Boss wrote: »

I guess what you're really asking is "Now the defaults have dropped off my credit file, can I weasel out of paying off what I owe?"

In my position - yep!! I have no problem paying the debt to the original creditor - but having endured the DCA shuffle numerous times has been so annoying. I don't owe these people even if they have bought the debt!! I have a few defaulted debts that will drop off over the next year or so and would love to see these disappear.
In fact I took a call from one DCA yesterday - the usual 6 monthly update etc. The lad was such a pain in the posterior that after 30 mins on the phone during which I really gave him the runaround - I offered a full and final of £80 quid on a debt of £1080 he said he couldn't put it to his manager without financial details which I maintained was unnecessary. He insisted that he was there to help me - so much so that I knocked 39quid off my usual monthly payment and knocked it down to £1 per month. At the end of the phone call I even told him that he has shot himself in the foot cos I had been ok with paying £40!! I was laughing my head off!!
After some discussion with my husband - we figured that once these defaulted debts have dropped off our credit files that we would just pay £1 per to each debt - we would be paying this debt for 70 years and if we were taken to court we would be able to prove that we had made regular payments!
Let's face it - if the DCA's have a million debts and each of those debtors pays a pound a week that's a million quid they are getting!! They wont go bust that's for sure!!




Swampy

Thrugelmir

swampduck wrote: »

Let's face it - if the DCA's have a million debts and each of those debtors pays a pound a week that's a million quid they are getting!! They wont go bust that's for sure!!

From the original creditors point of view it's far cheaper to sell the debt on and never have to trade with the customer again. Rather than go through the hassle of trying to collect the debt.

Works both ways.....

happy_bunny_2

guygabiour wrote: »

Thanks HB that's helpful, I will make contact and make sure they have all relevant paperwork and agree a monthly payment.

Make sure they have the paperwork before agreeing the figure, or stop paying if they fail to respond you your request. When you pay, they often can't be bothered to get you the copy of the agreement to which you are entitled.

Tixy

swampduck wrote: »

After some discussion with my husband - we figured that once these defaulted debts have dropped off our credit files that we would just pay £1 per to each debt - we would be paying this debt for 70 years and if we were taken to court we would be able to prove that we had made regular payments!

Reducing your payments down to token payment, when you had previously offered more does increase the chance of them taking court action against you.

And whilst you could prove to the court that you had been making £1 payments that wouldn't stop the court granting the CCJ (assuming correct paperwork held) and deciding you could afford a higher monthly repayment.
And if the court did believe you could only afford £1 a month that would mean it would take 70years to pay off then they may well consider a forthwith judgement.