I have an outstanding balance that can't be paid

Little_Lene

Having fallen into a bit of a black hole with my finances and then worked very hard to clear my debts, I recently summoned the courage to check my credit rating on Noodle.com. When I checked I actually discovered that there was still an outstanding balance to a company called New Day. I tried calling to pay off the debt, but because the account has been inactive for so long it has been closed and so they are unable to take payment, but they also can't remove the missed payments from my credit history because there is an outstanding balance. I've also tried contacting Santander who the store card was originally through before New Day bought them out but they can't help either. Is there anything else that I can do? New Day are telling me that all i can do is add a notice of correction to my credit file but I really want to clear the debt.

PaulW922

That is odd - you are offering to pay and they won't take the money?

If the account if defaulted you cannot get rid of that marker by paying - it will stay for six years. If it is just late, then paying it should result in a final, 'up to date' marker although it won't remove the historic late payment data.

If you can afford to pay and you want to do so, you could send a cheque for the outstanding balance (by signed for post). Make it clear in your letter what has previously been said in conversation. If they do not cash your cheque then should this come back to haunt you later you can point to the refusal of the lender to take your money.

Alternatively you could just write and offer to pay if they will confirm the amount outstanding - see what they say.

or you could just leave it.

Remember that if you have made no payment and have not acknowledged the debt for six years it becomes unenforceable in the civil courts anyway - writing and offering to pay would reset that six year clock to day one. In fact that may already have happened when you contacted them.

subgoofy

Why?It's too odd.you should have a touch with them.

solentsusie

PaulW922 is right.

How long ago was the account defaulted? It may be they cannot find record of you as they have sold your debt on to a collections agency.

You really should check your files with Experian and Equifax as well. Sometimes the same debt will show up with a debt collection agency name against it. Your statutory files cost £2 each and are all that you need.

Well done for taking a look at your file. I remember being in that position myself and it can be pretty daunting the first time you do it to see the damage.

If the debt is nearly six years old and you haven't had any contact with the original lender or a debt collection agency in that time it may be worth leaving it to become statute barred. This is up to you. I am sure the moral police will be along to tell you you are a bad person and must pay your dues, but we have all made mistakes in our past, the best thing you can do is learn from them and move on and hopefully not be in the same position again.

Good luck.

Little_Lene

Hi Paul,

I understand that paying won't remove the missed payments from my history, but I want to be able to apply for a mortgage at some point in the future so I want all my debts paid off up to date.

It's all very weird, they have a payment line that can't find any of my details when a call, and they insist that they have no contact number for the credit management department that replied to my letter confirming that the account exists but offering no way to pay it off. It's all very frustrating. I might try sending a check as you suggest but you wouldn't think that people should make things so difficult when your trying to do the right thing.

Little_Lene

It originally defaulted in June 2009. If it becomes statue barred will it dissapear from my credit status history or will it always show as a default?

matttye

Little_Lene wrote: »

It originally defaulted in June 2009. If it becomes statue barred will it dissapear from my credit status history or will it always show as a default?

Defaults and statute barring aren't related.

The account will drop off your credit files in June 2015, 6 years from the default date.