Account In Arrears But....

CarlS1990

Hello guys Injust need to ask a couple of questions I have regarding my credit report which I have really decided to try and clean up recently. About 6 years ago I had a couple of loans tied into a car and needless to say defaulted on one of them as I lost my job. The one I defaulted on is due to come off my credit report this Oct, however the other is still marked as in arrears a d 6 payments late and has not defaulted, which I believe is a bad thing as it would have been due to be removed inline with the October date like the ofher one.

My question is this, do I let this default now and take the hit stRting my six year countdown from now, or do I try and pay it off in the full amount and then wait for the six years to start ticking from there? It really is confusing me and I cannot see the benefits of struggling to pY this bill on if it is not going to inprove my credit rating and give me some incentive?

Thanks in advance.

happy_bunny_2

Who is the loan with?

They should have defaulted the account 3-6 months after you stopped paying.

You need to complain to get the default backdated.

Be aware that if you don't pay or acknowledge in writing for 6 years, a debt becomes statute barred. They can hassle you, but can't take court action to recover the debt. Worth keeping in mind if close to the 6 year point.

CarlS1990

Thanks for your reply. The loan was obe part of a two company loan which where taken out at the same time for car finance. Does this still stand even if i had a dmp in progress, although I did have one on the other half of the loan which did default.

chanz4

sounds like hp, with a topup loan

CarlS1990

Sounds about right. If I had not paid the original sum since 0ct 09 on either and one has defaulted and one has not, surly the other should have also even If i now have significantly reduced dpms arranged on both.

-taff

If your dmp is in progress and includes the loans they won't be statute barred, so forget the 6 year thing.
Ask on the debt free wannabe board for more advice

CarlS1990

The first one is on a dmp but is still due to come off October this year according to Equifax?