Default Issue - should I pay?

The_Smog_Monster

I've just discovered I've got a couple of defaults on cards from when I moved home a few years ago and didn't notify Barclaycard (forgot I had the card) and Halifax. There was another suprise default from O2, from when I'd had my mobile stolen and they didn't cancel the phone ASAP so I refused to pay the £111.00, although my insurance did eventually, I think I'll be able to get this took off, I was really suprise as this one.

Barclaycard has a balance of £500 (my limit wasn't half that - so I'm guessing thats all charges) and the other the Halifax IS paid off, but I think I can claim back charges as I only acrued them as they lowered my credit limit.

My question, bearing in mind my circumstances, is IS there any point paying off the Barclaycard default, I'm financially able to now, but ifs its going to stay on my report for another 3 years regardless (or worse if I pay it would it be 6 years from NOW??). Basically I want to pay it, but is it just going to make things worse for me?

I was a bit ignorant of finance a few years ago, but Ive now got a decent job were I get paid twice what I was on when I had money problems, and I'm trying to clean up my credit reports.

smithja

that a good question. I know they can only chase a debt for 6 years from the date of last contact, i.e. you communicated with them about it, be it either by letter, phone, in a branch, any form of acknowledge you made of it. I have heard of some people negotiating with them again saying, I will give you your money If you take off the default. But I would see what comes up here first, or ask someone like the CCCS or the CAB for advice. James

Bokkens

Pay them.
Make a clean break ultimately it will improve your credit rating,assist in obtaining future credit and you won't have someone knocking on your door.
As you are aware of the debt and if you now fail to pay it you have commited a theft(as you intend not to repay it)I have read that the big companies sell the debt to debt collection agencies and they then come after you to recovery their money.
It all seems like a lot of hassle to me,pay it and forget about it.

The_Smog_Monster

The thing is Bokkens I want to pay it, I never said I intent not to, don't know where you got that from, I just want to know if I'm going to make things harder for myself by doing so.

If the default stays on my file for 6 years AFTER I pay it, I'm going to be unable to get decent credit for 4-5 years longer then I could now, which seems stupid

smithja - I think I'll give that a crack, bit of a gamble like, but probs best trying to negotiate with them.

Does anyone have any experience of getting a default off like this?

I couldn't find anything on the forums.

ajaxgeezer

Bokkens wrote: »

Pay them.
Make a clean break ultimately it will improve your credit rating,assist in obtaining future credit and you won't have someone knocking on your door.
As you are aware of the debt and if you now fail to pay it you have commited a theft(as you intend not to repay it)I have read that the big companies sell the debt to debt collection agencies and they then come after you to recovery their money.
It all seems like a lot of hassle to me,pay it and forget about it.

... I'd agree. It sounds as though you are now easily financially able to do it, so now is the best time. If you ignore it and they catch up with you in 2 years time, you'll feel hugely frustrated at the lost time and hassle. Seeing that word "Settled" on the credit file will look good. It's likely you won't have to pay all of it, if you contact them to say how you'd genuinely forgot and contacted them as soon as you could but can't afford the full amount , it's likely they'd accept 75% settlement or so.

ajaxgeezer

The_Smog_Monster wrote: »

The thing is Bokkens I want to pay it, I never said I intent not to, don't know where you got that from, I just want to know if I'm going to make things harder for myself by doing so.

If the default stays on my file for 6 years AFTER I pay it, I'm going to be unable to get decent credit for 4-5 years longer then I could now, which seems stupid

smithja - I think I'll give that a crack, bit of a gamble like, but probs best trying to negotiate with them.

Does anyone have any experience of getting a default off like this?

I couldn't find anything on the forums.

.... aha! At our workplace we have an employee helpline, and they give free advice on anything, even a free half hour with a solicitor if necessary. If you have anything similar, these helpline people are excellent in my experience, very knowledgeable.

wyebird

A Default stays on your account for 6 years after it was issued, not 6 years after it was paid. A paid default looks better than an unpaid one in the meantime.

eatmyfish

I've shares in those companys, basically you are proposing to steal from me???Thanks!

The_Smog_Monster

eatmyfish:

Not proposing to steal although 'should I pay? looks bad, but the fact that you say, 'those companies' when I only owe money to one, probably means you didn't actually read the part of the post I said 'I want to pay' either.

As I said, I want to pay, I'm just making sure Im not doing my self in by doing so. Incidently as I said I'd be able to claim almost all of it back in charges, I can't have had more then £50 in the account as I thought Id paid the account off 4 years ago so technically a company you have shares in is trying to get illegal charges out of me. But to be fair, if they remove the default I won't be too upset about the charges.

wyebird:

Cheers thats the answer I wanted, better crack the chequebook open.

Thanks everyone :T