Capital One Default removed....New Cabot letter!

KevD_2

Hi All

Sorry if this has been covered, I searched and found many similar threads but all a little different.

I had an dispute with Capital One re repayments many years ago which ended in a default being recorded on my file on 31/01/2010.

This is the only the only Negative factor on my credit reports from Credit Expert, Experian & Call Credit and my understanding was that this would expire on the 31/01/2016.

As I am attempting to look for a mortgage in the near future I regularly check my Reports and was surprised to see the Capital One default was no longer on my file and I now have an Excellent rating across the agencies.

However, today I received a letter from Capital One stating they had passed the account onto Cabot who will begin reporting on my Credit file in 30 days!

Can they start up a whole new account in this way?

After waiting so long to be in a position to not have to worry about my credit file I feel I am now back at square one and feel like paying up.

Is this simply a threat or can they start reporting this on may account again as a new account?

Thanks for any advice :A

Candyapple

Once a default has been issued and dated, it won't change. Cap One have just sold the debt to Cabot, all they'll do is update the monthly 'D' and send you a couple of threatening letters. Just ignore the letters until your end date is up in a couple of months then if they keep pestering you, tell them the debt is statue barred.

solentsusie

It is quite common for companies to sell of their debts when they are nearing their statute barred date.

I had a debt sold to Cabot that was statute barred and they attempted to take me to court for payment just before the default was due to disappear from my file. I wrote in defence to the court stating it was statute barred. I then got a letter from Cabot saying they were looking into their files then heard no more from them or the court and no CCJ was issued.

From my experience my advice would be to keep an eye on the post they send you, but do not respond to them. If you receive any court correspondence do not ignore it. Once they have a CCJ registered it will sit on your credit file for a further 6 years.

It is easier to dispute the CCJ making a request to them to prove the debt is not statute barred than to contest it after it is issued.

Good luck.

KevD_2

Thanks Guys (sorry been ill and offline!) - a quick bump !

Just a quick look for opinions on this

In order to attempt to bring this to a close my wife and I have decided that, despite me disputing all the debt, we are going to pay. We are looking to buy a property in the near future and simply need this put to bed!

With the current default due to expire shortly, we understand as the debt remains outstanding another default can be applied.

The debt is 500, if this is paid in full and the debt settled this default it will bring an end meaning shortly my rating should be back to an excellent level rather than the current 'fair'

Would I be right in thinking this?

dgtazzman

If you pay the £500, wouldn't this count as acknowledging the debt, resetting the 6 year timer? It would be marked as settled, but it might still sit on your file for 6 years. I'm only spit balling, but it is something I'd want to check before paying up...

fermi

The account would still be removed from their report 6 years from the original default date. Paying it, or NOT, won't stop that happening.

Cabot can only put it back on with the original default date, if they should, which after 31/01/2016 would never show on reports, even if they tried.

Superscrooge

Paying the debt is the sensible thing to do, particularly as you are wanting to buy property.

It prevents any further risk of damage to your credit history.

KevD_2

Thanks all.

At this point, despite me disputing the amount, I feel it needs to be settled so we can move on so we are willing to suck it up.

The negative effect on my credit is greater than the value as far as we are concerned.

My concern was, as hinted at by , that acknowledging the debt would leave a marker on my file going forward.

Would any one know for sure if me settling with Cabot will have ANY further implications for me??

What I would like to happen is to pay this off and come the end off the month be in a position where the debt, the default and adverse effects in my report are removed ��

Thanks

fermi

Cabot can report the account in their name, but they cannot/should not alter the original default date if they do.

That means that after 31/01/2016, the CRAs will simply not show ANYTHING on their reports about this account. Nothing. Not a trace. It will be as if the account never existed.

Settling the account, or not, will not change that fact one jot.

Even if Cabot send data to the CRAs, they do not let that go on your report when the default date is over 6 years old. The CRAs prevent it going on. Cabot have no choice or say in the matter.

Hazzinho

If you don't agree with the debt and is dropping off in less than a month why would you pay it?

chanz4

Hazzinho wrote: »

If you don't agree with the debt and is dropping off in less than a month why would you pay it?

a ccj been possible , some people don't shy from there debts