What happens after Default expires?

CReynolds

Hey all,

I am new to this site and just looking for some insight & knowledge here!

In a nutshell, I left the UK 3 years ago and along with it $3,000 in credit card debt spread across 2 credit card accounts. It was irresponsible but i am now in a situation to start paying back. Defaults were set in 2012 and will expire in 2018.

My question is, what happens to the balance (whether partially/full satisfied or simply unpaid) once the defaults expire? I know the default drops off your credit report but what about the balance?

Thanks in advance!

Chris,

fermi

The account is removed from your report in it's entirety. Someone checking your report would see no trace. No evidence the account ever existed.

CReynolds

Hey, thanks for the quick response. So the balance as well correct? It just seems to strange they would do that. I am going to start making payments regardless as i feel guilty (as i should) and it is hanging over me. If i make payments, will it help my credit rating when it defaults or is it irrelevant?

When it expires, will my credit report be equivalent to say a 16 year old starting out (zero history) or will contain other credit history from other accounts?

Thank you so much!

fermi

CReynolds wrote: »

Hey, thanks for the quick response. So the balance as well correct? It just seems to strange they would do that.

Yes, everything. It's the CRAs that remove it, so the creditor has no choice in the matter.

Paying will make little or no difference.

Can't say what other account may be on there. Depends what you have or had.

mwarby

no the balance still exists, although after 6 years of no contact it may become statue barred(unenforceable).

CReynolds

Oh ok, really appreciate the response. I have made all the phone calls and the final one is to contact the payment plan dept. at the bank. They sold the debt but then it was brought back to them and now they have it until the default expiration it seems. I read somewhere that after the default expires (6 years) the bank can sell the debt again and the new collector can re-introduce another 6 year default but not sure about that.

Thanks again,

Olly

CReynolds

Thanks! There has been contact, just no payment.

mwarby

Just to clarify - The balance is still due, but the account won't be on your credit file.

The debt not being on your credit file doesn't make it go away, but does limit who can see it(the lender and other companies in lenders group eg RBS and natwest)

mwarby

CReynolds wrote: »

. I read somewhere that after the default expires (6 years) the bank can sell the debt again and the new collector can re-introduce another 6 year default but not sure about that.

Thanks again,

Olly

no you can only be defaulted for a debt once. The six year thing won't stop the debt being sold, or the holders of debt trying to enforce(although they have less leverage, so debt will be worth less)

One option is to make an offer to collector for full and final settlement. They may have only paid 1p in the £ for debt so an offer of 10p £ may be attractive(eg £100 debt settled for £10)