Welcome Finance - Do I pay them back?

chrismcginn

Hello All,

I've followed this forum for the last few years as i've been rebuilding my credit, and have now successfully secured a mortgage thanks to a lot of things I've read on here. I do have one little thing hanging over me which i'd like shot of one way or another...

About 8 years ago I took out a loan with Welcome financial services (Gulp). I still owe about £500 to them, which I'm paying through a DMP and is the only outstanding debt I have. My question is:

As it has disappeared off my credit file as its over 6 years old, am I entitled to tell them to whistle for the remaining £500, or will that affect my credit?

Its a personal gripe to be honest - I've paid them a lot back over the years, so id like to refrain from giving them more (and could do with the extra £60 a month i'm paying them back)

My theory is that it can't affect my credit file, as the original agreement has disappeared, and no new agreement has been signed, so it wouldn't appear on my credit file.

ghostfinder

think the stat barred rule only applies to debt that hasn't been paid for 6 years or were no debt has been acknowledged.

is it worth trashing your credit file for £500?

DevCoder

Since you are still paying then statute of limitations does not apply, therefore why wouldn't they go for a CCJ? In fact, if it had been more than £750 then theoretically they could also petition for your bankruptcy.

If you have funds available now, then why not repay what you borrowed? There is a cost to the lender for extending a line of credit as well, its not just free for them.

chrismcginn

Thanks for taking the time to reply.

Two things - I don't know what a Stat barred/statute of limitations is (I'll look it up though)

Secondly, I don't have the funds to pay in a lump sum (apart from on a credit card, which I don't want to use until completion of my house)

So am I right in thinking the best suggestion is to continue paying through the DMP as the interest is still frozen?

ghostfinder

have a read of this.

http://moneyaware.co.uk/2013/10/statute-barred-debt/

it might be best to keep on paying it, especially if your interest is frozen

i understand the personal gripe - when its paid off you will feel better im sure

Thrugelmir

chrismcginn wrote: »

As it has disappeared off my credit file as its over 6 years old, am I entitled to tell them to whistle for the remaining £500,

That's totally irrelevant. Legally (or anyone thy sell the debt onto) can pursue you for the remaining balance.

Even though the debt doesn't appear on your CRA file you would need to declare the debt on any application form which requires you to do so. Failure to declare is in effect application fraud. Which will result in a whole raft of issues in the future.

Best approach is take the lesson learnt on the chin, settle the debt and move forward.