5 year old default questions

ppksam

Hi Guys,

I have been working on rebuilding my credit profile over the past year after defaulting on two credit cards when I went to study abroad in 2008. I was away for 5 years and had no way of servicing the debt, but that is by the by...

Anyway:

My credit file currently has 3 entries for 2 credit cards

Credit Card from Arrow Global - Default date 10th Jan 2010
Credit Card from MBNA - Default date 1st Oct 2010, status settled as of Jan 2012 (Same account as above)
Bank Default from Capquest Investments - Default date 10th May 2010

I have been paying £20 per month to both cards for the last couple of years to keep the debt collectors away.

I'm looking for a strategy on how best to play this situation from here on in. My questions are:

Once the default notices pass 6 years (2016) will they be wiped from the credit file?

What happens to this debt once the files are wiped, will I still get chased?

Over the last couple of months I have had 4 letters from the debt collectors offering me discounted figures to pay off the cards. Should I play ball or let the default pass it's 6 years?

Should I have 2 defaults for the same account on my credit profile?

Any advice would be greatly appreciated.

Thanks,

Sam.

rogerblack

ppksam wrote: »

I have been paying £20 per month to both cards for the last couple of years to keep the debt collectors away.

I'm looking for a strategy on how best to play this situation from here on in. My questions are:

Once the default notices pass 6 years (2016) will they be wiped from the credit file?

The debt is current as of the last payment, as the clock is reset by payment, so would only expire in around 2020.
Accepting the reduced offer, or paying off are the only realistic options.

fermi

ppksam wrote: »

Once the default notices pass 6 years (2016) will they be wiped from the credit file?

Yes, The default and all trace of the account is removed 6 years from the initial default date. No matter what.

ppksam wrote: »

What happens to this debt once the files are wiped, will I still get chased?

Yes, afraid so.

ppksam wrote: »

Over the last couple of months I have had 4 letters from the debt collectors offering me discounted figures to pay off the cards. Should I play ball or let the default pass it's 6 years?

Your call. If you don't you could - maybe - still be taken to court.

ppksam wrote: »

Should I have 2 defaults for the same account on my credit profile?

If they are both the same default date and the original is marked so it shows they are not different accounts, then it can be OK to have that.

ppksam

The two accounts that remain defaulted have no activity on them since 2010, although I am paying £20 per month on them both. Could you let me know when they disappear?

Also, I'm happy to come to a settlement figure but is it best to do this once they have been removed from my credit file as I would be in a better negotiating position and there would be no way that these partial settlements can appear on my file?

Thanks again,

ppksam

It won't allow me to post images as I'm new I'm afraid!

fermi

ppksam wrote: »

The two accounts that remain defaulted have no activity on them since 2010, although I am paying £20 per month on them both. Could you let me know when they disappear?

Defaulted accounts are removed from your report 6 years from the initial default date that is recorded. Always. No exceptions.

ppksam

fermi wrote: »

If they are both the same default date and the original is marked so it shows they are not different accounts, then it can be OK to have that.

The default dates are different, it's as if I have defaulted on Arrow Global (collectors) in January 2010 and then defaulted on MBNA (the credit card) in October 2010. MBNA have then settled the account in January 2012 when they must have sold it on to the current people who are collecting it, AIC. The Arrow global account is named 'Credit Card from Arrow Global Ltd' even though they don't supply credit cards, they are a debt purchaser.'

Surely I can't default on the same account twice? The first default registered is with ARROW before I have even defaulted on the actual credit card!

Any help is greatly appreciated!

fermi

In that case the Arrow default will drop off sooner. They should both be the same, so could work out better for you actually here.

paugeo

Hi,

Are we saying here that as in my case I have a default posted by Barclaycard in April 2010 and was then sold to a DCA, the DCA cant report another default to go on my credit file if stop paying them in say May 2016?

fermi

If a DCA it to add a default it must clearly be for the same account, and they must use the original default date that Barclaycard did.

That is not to say that they couldn't take you to court if you stopped paying when that has dropped off. A CCJ is a different thing to a default and would be something new in a different section of your report for 6 years,

paugeo

I have a Final Notice letter from MK Rapid recoveries saying they may take legal action if I fail to acknowledge the situation. Does anyone know if they will do this and if I will be given a further notice of court proceedings before I actually receive court papers?
I'm thinking of just sitting it out but not if I know the next thing I get from them are court papers?

I was under the impression they are meant to send a letter along with more information from a legal body like the FCA before court papers can be issued??