Surprise Defaults. Next Move?

topcatistop · 9 October 2014 at 9:43PM

Hi Everyone,

I'm a complete newbie to credit ratings, defaults and frankly to internet forums too, so apologies for any stupid/naive remarks.

I've recently found out that I have 2 defaults against me and I'm wondering what to do next. Firstly, my scenario is this:

A few months ago I tried to get my first credit card, and was declined. I wanted to know why so I signed up with Experian and got a credit report. I found out that I have 2 defaults against my name, both from British Gas. One is for £161 and the default start date is 08/11/2008, and the other is for £187 and the start date is 09/12/2009.

Looking back I'm pretty sure this has come from a time when I was at university living with many other people, moving every year and not very good at keeping up with all my paperwork. Unfortunately the bills were in my name for a year or two, and I seem to have forgotten to settle one of the accounts before leaving. Since uni I've moved about an awful lot, and haven't heard anything about these debts or defaults until now. So I assume this means that I've not acknowledged the debts. Here are my questions, (again sorry for anything that seems obvious).

After the 6 years has passed will the defaults simply disappear?
If I decide to acknowledge and pay these debts, what do I do? Just ring British Gas and tell them that I have an unpaid debt?
If I settle the debts will the default be removed from my record?
Is there any way of finding out how much of the debt is made up of actual energy costs, and how much is additional fees and admin costs?

Thanks in advance for any help! I'm starting to wish I'd never got this credit report. I would have remained blissfully ignorant of these debs and they may have eventually disappeared without any worry or cost to me.

T

Maestro. · 9 October 2014 at 9:50PM

It won't be long before the debts become statute barred. You've probably gotten away without hearing anything about them for this long because they're small. If they were bigger they'd probably have tried a lot harder to find you.

If you acknowledge the debts now you will have to pay, a little while longer and they become legally unenforceable, and drop off your credit history. it's not necessarily the most morally correct thing to do, but for the sake of 300 odd quid I am not sure I'd bother given you are so close to being clean of them. As far as I am aware, a default is a default once there so paying now wouldn't make that default go away, the fact being that you "defaulted" on the debt. I could be wrong though, I've not had my financial hat on for some time.

topcatistop · 9 October 2014 at 10:15PM

Thanks Maestro. As I've only got 1 month to go till the 6 year period ends on the first default, I think I'll wait and see what happens with that one. Then decide what to do with the second default.

I don't need a credit card or mortgage at the moment, so hopefully there won't be too many negative impacts. I see what you're saying about the moral issues, but since it's a bill that should really be split 6 ways between my other ex-house mates I feel less inclined to pay the bills for moral reasons. Also I'm sure my old house mates would not appreciate me getting in touch out of the blue with news of unpaid bills.