Advice on my defaults please - 6 year rule?

BroodingSea

Hi all. Would appreciate some advice on three debts please.
I have been a current account customer with Barclays since I was 16.
I took out a career development loan in 2004 with them (4k) to fund a course. My credit record on Noddle says I defaulted on this in June 2009. I think they have written to me once in this time. I have not responded or acknowledged it. My question with this is: 6 years are coming up (this June 2015). Will this debt/default drop off my credit file? Even though i have a current account with Barclays?

There is another one (small amount) of £200 being chased by a DCA. The date of default is again June 2009. No acknowledgement of this at all.

Will these two defaults/debts remove from my credit file this year?
What is the best course of action to follow?

Quimoi

The defaults and account data will disappear six years after the default date recorded with the CRA's so yes, a June 2009 default date will mean you have a clean credit file by July 2015.

The debts are still enforceable (even if they have dropped off your credit file) for a period of six years from the last date that you made a payment towards them or acknowledged the debt. At the six year point they become statute barred and this is an absolute defence in case of the creditor taking you to court at a later date. Sounds like this is also imminent with your two.

Do the two creditors both have your correct address so that you'll know if they start proceedings against you?

Morally you should pay the two debts back but I think the majority of people (including myself) would keep quiet for another six months and let them disappear... your choice.

BroodingSea

Thanks for your reply. In terms of correct addresses - I believe so, yes. I haven't heard anything from Barclays for a few years now and have not paid toward the debt for 7 years (at least - perhaps 8).

Quimoi

If it's more than six years then the debt is statute barred and unenforceable so good news

That doesn't stop some (unscrupulous) companies from still trying to get a judgement against you though hence why it's important that they have the correct address so you will see any claim forms and not end up with a default judgement. Not the end of the world if that happened but a bit of a pain in the backside to get the judgement set aside.

BroodingSea

Quimoi wrote: »

If it's more than six years then the debt is statute barred and unenforceable so good news

That doesn't stop some (unscrupulous) companies from still trying to get a judgement against you though hence why it's important that they have the correct address so you will see any claim forms and not end up with a default judgement. Not the end of the world if that happened but a bit of a pain in the backside to get the judgement set aside.

Super. OK I think I will wait it out a few more months until its 6+years past default date and if it hasn't dropped off I'll write to the bank/dca or just the credit agency?

Quimoi

I haven't experienced it myself but I believe that the CRA's are actually quite reliable at removing the entries when they reach six years old. From memory I recall reading that one of them (probably Call Credit) can take up to a month to reflect it but the others are midnight on the six year anniversary. Someone else on here may be able to confirm this with certainty?!

If for any reason your files aren't updated query it with the CRA only. It's an admin thing for them, no reason for the creditor to be involved and no point in prompting them to look at the account.

JKSandy

Is it wise to have an account with a company you owe money to?

They may have the right to set off the debt from your current account.

DCFC79

JKSandy wrote: »

Is it wise to have an account with a company you owe money to?

They may have the right to set off the debt from your current account.

Yes should try and open another bank who isn't of the same group.

Yes they could do as you say.

BroodingSea

JKSandy wrote: »

Is it wise to have an account with a company you owe money to?

They may have the right to set off the debt from your current account.

Thats just it - my postgrad education crippled me. 2,5k OD and my salary is 2.1k a month - i break even on pay day and go back into my OD from there. Its an awful position to be in.

JKSandy

BroodingSea wrote: »

Thats just it - my postgrad education crippled me. 2,5k OD and my salary is 2.1k a month - i break even on pay day and go back into my OD from there. Its an awful position to be in.

You should have a look at the debt free threads. The will have plenty of ideas on how to reduce your OD.

BroodingSea

Thanks - I will do