5 months left until 6 year cut-off, should I pay?

rollupyoursleeves

First post, hi all!

Six years ago I was a mess. Now I've cleaned up. 2 years into a permanent job I've got 1k savings, no more CC debt, 1 year into a credit card for poor credit scorers (much thanks to MSE.com and the forum posts here!), and this year after a recent promotion I want to start seriously saving to get a mortgage in 2016.

To the problem at hand... I have a small debt of £180 from 2009 that according to Equifax will stop being reported on in May this year (2015). My question is, I'm now in a fortunate enough position to be able to pay this off, but I'm worried that if I contact the debt collection agency my 6 years will simply refresh from the date I pay off the debt... I have read the sticky that points out that it's the default date that matters (being the earliest date) but I'm just concerned that by reaching out to the agency I could make matters worse as I'm aware there's some discussion around whether I may still be liable to pay it anyway, and could get a CCJ which would add another 6 years!

There is the option of waiting, as it's not long and the agency hasn't contacted me in over a year -but who knows, maybe they'll surprise me with a CCJ before then! And also it's good to have a clear conscience...

So if anyone has any help or advice on what they think is best, please let me know!

Many thanks again,

Rollupyoursleeves

McKneff

I don't think it would make matters any worse. If you want to pay it off, its entirely up to you. It will fall off your credit report in May no matter what. It is the default date ie 6 years that is of any significance.


If you want peace of mind, just contact them, ask them how much they would take to settle the debt, pay it and then forget it. Check your credit file June end or July, just to make sure. And get everything in writing.


or


Keep your head down....

JKSandy

Although it will fall off after 6 years and they can't take you to court they can hound you for years more if the want. It's only a small amount, I would pay it off.

PaulW922

Paying the debt will definitely NOT reset the default date. The only thing that can really go wrong here is if they successfully obtain a CCJ and you don't pay - but that seems unlikely.

TBH - you can probably get away with this one but if you want to do the right thing I agree McKneff - call and offer them a reduced amount.

rollupyoursleeves

Apologies for my seriously late reply, thanks so much for your advice (which I didn't take) :mad:

With only 3 days left to go until the 6 year period I got a call from the debt collection agency, asking if this was Mr rollupyoursleeves, at my old old address (I hung up).

Now what's frustrating me (and kept me up last night sick with worry) is that they'll get a CCJ in the next few days (or have already got one, who knows!? Because they don't have my current address!). Despite the fact that it's not until 3 days that the date will be six years on, checkmyfile actually stopped reporting on the debt from May 1 (I checked at midnight, haha!)

Now I'm wondering what the best course of action is. I really really really want to just pay this debt off. But I'm trying to pick the best option and I'm really struggling. Should I call them and give them my new address, should I log into their online portal and do it that way? (they txted details) Also should do it before the actual 6 year date, or wait until the day after in case in some weird way it makes any CCJ they have on me valid because I acknowledged the debt before the time was up?

Seriously my heart actually hurts with the stress of this. Going to the doctors this morning on something completely unrelated -he'll probably admit me to hospital when he reads my pulse!!!

chanz4

Its not 6 years from default, its 6 years from last acknowledgement

rollupyoursleeves

Yeah, so that's something I only realised with a bit of digging yesterday, which is why I'm wondering if it's worth leaving this three days until that period has elapsed (I have never acknowledged the debt so would presume it's the same 6 year period as the default).

I guess what I'm scared of is that by contacting them and giving them my details I'm opening myself up to something that I'm currently avoiding by not responding... But then I suppose as people have said they can always continue to hound me, and I suppose they will -so I would like to pay it up. And again I suppose that I'll never know about a CCJ being issued because I have no contact with the people at my old address, so it may make sense to give them my new address and speak to them so I can actually find out what the situation is.

I guess I'm also just trying to anticipate their actions. The reason they've got in touch via telephone (they never have before) is likely that it's so close to this 6 year period elapsing. So I'm wondering if they also go for a CCJ in this period if they get no response. Which I'd like to avoid. So I suppose calling and paying is the best option.

MisterBaxter

My own view on this for what it's worth is that if they were going down the CCJ route they would have already done it. They are chasing now because it is coming close to the 6 year cut-off and they know that if you don't acknowledge the debt now they have no real chance of recovery. What they are hoping for is that you acknowledge and pay it; if you don't pay they at least have another six years to chase you even though the default comes off your credit history. Why wait a whole six years only to get a CCJ at the eleventh hour.

My understanding is that if they obtain a CCJ and you pay it off within a month it is treated as though the CCJ didn't exist, but I could be wrong on that.

Whether you decide to pay is entirely up to you; it won't do you any harm paying it and it will perhaps ease you conscience; it will also ease your worries about any potential CCJ.

Once the six years have passed they can try and harass you but you can just send them the statute barred letter and from then on ignore them.

Tixy

rollupyoursleeves wrote: »

(I have never acknowledged the debt so would presume it's the same 6 year period as the default).

You say you have never acknowledged the debt? have you ever made any payment towards this account? what sort of account was the debt?
The 6 year period runs from the date that they could first have taken court action against you (unless re-set by you making further payments or acknowledging in writing).

It may well be the case that this debt is already statute barred.

I'd wait to see if they write to you at all. If your credit file shows your old and new address, and the default then they could find out your new address to write to you.

skintpaul

I would pay it off. Feel good. Fresh start.

The_Boss

skintpaul wrote: »

I would pay it off. Feel good. Fresh start.

Exactly. Plus the feeling it will give you of taking responsibility for your past actions rather than running away from them and also simply paying what you rightly owe.