Nobody wants my money...

kiddsky

Hi sorry for somewhat absurd title, but that genuinely is the case.

As a teenager with a lot of credit cards, loans and overdrafts if anyone was willing to give I was willing to take. Then things happened and I've ended up in a lot of debt.

Now that I've grown up its time to start paying it back.

I had a £1200 overdraft with Lloyds that I defaulted on in 2012. The good thing is I've been trying to pay it back for the last year.

The problem is nobody wants the money. I've rang Lloyds on multiple occasions saying that I want to pay it off and they keep telling me that they've sold the debt to a debt collection agency, when I phoned the debt collection agency a few times they said that they did own the debt but since I refused to engage with them they have "archived" the debt and no longer want any payments towards it. I can discuss it with Lloyds if I want to.

Basically it went round and round in circles... So you would think it's a good thing no one is chasing me for it etc.

The problem is Lloyds keep reporting monthly to credit report people that I've made £0 towards the payment of account.

It's affecting me like crazy because when I got a car loan (all up to date) they were questioning me and wouldn't believe me when I was telling them about it.

What can I do to get it removed from my credit file or start paying it off because £1200 debt on credit file ain't pretty.


Also if anyone has got this far to stop me making another thread, now that I've started paying my debts back some debt collection agencies are getting in touch offering partial final settlements. Some up to 50%. Will it look bad on my credit file and affect my credit score if I accept them?

Thanks and sorry for long post

stevenhp1987

It sounds like you have several defaults?

Most lenders will see a default as that and not lend to you regardless of whether it was paid off!

Partial Settlement is slightly worse than full settlement, but the default will still stay on your credit file for the full 6 years.

If I were you, I'd pay back what you can (partial settlements on accounts willing to take it) as your file is shot anyways. Keep money for the £1,200 aside incase they finally come looking.

In 2018, it will drop off the credit file and become unenforceable as you wouldn't have paid for 6 years.

rtho782

Paying it is pointless, it's still a default, no matter if it is unsettled, part settled, or fully settled.

You won't be getting the car finance you want until it drops off in 2018

d70cw6

why try to pay it off now? seems little point.

also: i'll take your money.

Stevie_Palimo

d70cw6 wrote: »

why try to pay it off now? seems little point.

also: i'll take your money.

Some people have morals and decide that if they take something it should be given back, Well done OP for breaking the I expect everything given to me for free mentality and paying back your dues.

d70cw6

i'd prefer money over morals any day of the week!

oh wait...

PeterLWilson

You could try contacting the debt agency and offer them a settlement sum as stevenhp1987 suggested.

Even if they would not allow you pay the last time you called, there is a good chance that if you ask to speak to a manager, and then make the offer to them you will get somewhere, this will change the credit report to a settlement agreement, which is much better than a plain old default.