Defaults

Moneycraver05

Please could somebody help with my situation?

I had a loan with Lloyds TSB -now Lloyds bank in 2006, which them defaulted in 2010. I made the odd payment in the beginning but have generally ignored them for years. The default got sold on to 1st Credit who have also placed a default on my credit file: so 2 defaults for the same loan, wonderful!
Anyway- I have been settling all my debts and trying to clear my credit for the last few months.
This loan is the last one, for £3106.
In February, 1st Credit offered me a settlement of £1050. I did not have the money at the time so ignored it. Lately, I had a small inheritance and so I contacted 1st Credit with a settlement offer of £1000. They replied saying this is not acceptable and they would like £2550 to settle.
I replied stating that I would not be paying this as it would leave me and my child without food and with unpaid bills for the coming months.
They replied saying to get back to them by late June with an up to date financial indicator.

My question is:

Will the default fall off next year(6 years) even though I have made contact but not paid?

And,

Given that the default will fall off in October next year, should I just make a monthly offer of peanuts until then and just ignore them after that?

OR,

Should I just ignore them altogether?

If they put a CCJ on me before October 2016, will that take another 6 years to fall off or will it just fall off with the default?

I contacted them demanding to know how and why they were able to offer a settlement of £1050 in February yet want £2550 now. I am yet to hear a reply. Until last week, i banked with Lloyds, I have now moved to Nationwide, will this help?
I fear they have also looked at my credit file and noticed i have a credit card with a high limit and are hoping I use this. Problem is my credit card is a credit building one with HIGH interest and I really don't want to use it for anything more than £50 at a time really.

chanz4

By offering you have most likely acknowledged the debt, this will reset the clock depending on wording. Any payments will reset, also need to add company's don't have to offer lower settlements

cifpower

You shouldn't have two defaults for the same debt. The Lloyds one should have been replaced with the 1st Credit one. Contact Experian/Equifax/Noddle and request one to be removed.

fermi

Moneycraver05 wrote: »

Will the default fall off next year(6 years) even though I have made contact but not paid?

Yes.

And,

Given that the default will fall off in October next year, should I just make a monthly offer of peanuts until then and just ignore them after that?

OR,

Should I just ignore them altogether?

Ignoring at any point could lead to a CCJ, before or after the default has dropped.

If they put a CCJ on me before October 2016, will that take another 6 years to fall off or will it just fall off with the default?

6 years from CCJ date if not settled within one month.

Answers in red.

fermi

cifpower wrote: »

You shouldn't have two defaults for the same debt. The Lloyds one should have been replaced with the 1st Credit one. Contact Experian/Equifax/Noddle and request one to be removed.

Not nowadays.

ICO and CRA position is now that:

CRA Defaults - Recording of defaults relating to debts that have been sold.

The practice of selling/buying debts is widely used. As long as the information is correctly recorded on a credit file by the lender selling the debt and the lender buying the debt, then two entries relating to one account would not be considered to be a breach of the Data Protection Act provided that:-

• both recorded entries are shown as being in relation to the same account/debt;
• the original debt entry should be shown on the credit file as being either ‘settled' or ‘zero' balance and should show that the debt has been ‘re-assigned’;
• the new DC who shows the debt in their name should maintain the original default date and the correct balances;
• the retention period for maintaining the information on a credit file should be based on the original default date regardless of who is responsible for the entry/debt.