Cab

enfield_freddy

referring to this online doc.


https://www.citizensadvice.org.uk/scotland/debt-and-money/help-with-debt/how-to-dispute-a-credit-debt/time-limits-for-recovering-debt-in-court/


however the CAB states
"A statute barred debt doesn’t disappear. But if a debt is statute barred the creditor can’t get a court to force you to pay. The debt could affect your credit rating, making it harder for you to get credit or a loan in future."

how can a statute barred old debt affect your credit rating in the future? , I thought this disappeared from your file ,

if what the CAB are saying is fact , how long and by whom can your old statute barred debts be seen by ?

molerat

Typical confusing CAB advice. It is a Scottish page and states

A statute barred debt doesn’t disappear.

which, although true in E&W, is not the case in Scotland. After 5 years the debt is extinguished meaning it no longer exists.

The only thing CAB are any use for is helping to claim benefits.

enfield_freddy

right , so different end rules between E+W and scootland ?

molerat

enfield_freddy wrote: »

right , so different end rules between E+W and scootland ?

Yes, but the advice given on that page is incorrect so how much of what they state can you trust ? The debt will fall off credit files after 6 years but the creditor can hold on to the information themselves.

enfield_freddy

the reason I asked the question was there statement "making it harder for you to get credit or a loan in future."


I was wondering who had the ability to ruin your credit after say 7 or 8 yrs , and if you could not see it at a CRA , how could a mortgage Co, etc ?

molerat

Lenders should not be able to get that information from the CRAs unless they are wrongly showing recycled passed on debts, which does sometimes happen. Lenders could of course be holding internal or group debt information quite legitimately. I think again their information is incorrect.

enfield_freddy

good job we trust the CAB then!


thanks for your answers ,

enfield_freddy

English version https://www.citizensadvice.org.uk/debt-and-money/help-with-debt/how-to-dispute-a-credit-debt/time-limits-for-recovering-debt-in-court/


still stating that a time statute barred thing can affect your future credit,


I thought the CAB were supposed to know the law and advise accordingly ?

Tixy

A debt could be statute barred and still appear and affect your credit file for some time after.

A debt falls off your credit file 6 years after the default date recorded on file (nothing to do with the statute barred date)

Typically a lender may not issue a default until 6 months after a debtor ceases paying, so a debt could well be on your file for 6 months after the date it becomes statute barred. (And where lenders issue late defaults could be on for longer, although it should be possible to challenge this).

Though that said I agree it is not a very well written / clear document from CAB.

binerds81

AFter 6 years any old entries do disappear from your credit files but (and not sure that I am right) I think they way in which is can affect you further than 6 years if if you applied for credit to the same business or groups of businessed and they can see you've gold old outstanding debt with them - so if you applied with halifax, but the debt was with Lloyds or Bank of Scotland you may be declined as they are all one group of companies and so share their information across their systems which is internal info and held as long as they require, not the 6 years like on a credit file.