Old debt

Ally2345

Hi everyone

I racked up a quite a lot of debt 5-6 years ago when I had just finished university and was unemployed for a while. Unfortunately I then just buried my head in the sand and made the situation worse resulting in 5 defaults. After getting my life together I have now paid off 2 accounts in full and am on monthly payments for another two with DCAs which will be completed in a little over a year. However, there is still one debt outstanding at RBS for £3000 (my old current account) which I haven't yet addressed. I checked my credit file and it is still listed as RBS but I am sure it must have moved on by now. So I guess my question is how do I deal with this?

My main concern is that I am unable to pay the debt in full at the moment but would like to set up come kind of repayment plan like I have with the DCAs. Do you think they will be amenable to this? It is due to drop off my credit file in little over a year so I did consider waiting it out but tbh the idea of getting a CCJ when I am so close to this all being over is too nervewracking. And in fairness I do owe the money. However, I am also worried that by contacting them 5 years later may open up a can of worms

Has anyone been in a similar situation? How did you solve it?

Many thanks

sourcrates

Hi,

Welcome to MSE.

The thing with old bank accounts is that its very difficult to work out a default date, as no regular payments are required to a current account, has it actually been defaulted yet, and if so what date does it state on your credit file ?

National_Debtline

Hi

There’s nothing stopping you from contacting a creditor to make an affordable payment offer if that's what you want to do. It’s best to make payment offers in writing. Make sure it’s affordable by completing a statement of affairs first, which you can send to the creditor. There’s a template here:

www.stoozing.com/calculator/soa.php

In your situation you could just wait to see whether you’re contacted, if the creditor has your current address. They should contact you prior to starting any court proceedings to attempt a payment plan.

If 6 years pass with no payments, written acknowledgement or CCJ the debt becomes statute barred. That means it would then be unenforceable in court and you wouldn’t legally have to repay it, or at least if you wanted to repay it you would be in a strong negotiating position.

James
@natdebtline

Ally2345

Hi thanks for your reply.

It defaulted December 2011.

Ally2345

Regarding the other reply - they don't have my current address although I am listed on the electoral roll here. This means I am a little wary of something being registered at an old address without me knowing about it.

Ally2345

I have checked my current credit report though and so far have no CCJs listed. So really want to prevent this happening when am a year away from everything dropping off!

sourcrates

Ally2345 wrote: »

Hi thanks for your reply.

It defaulted December 2011.

Right so just over a year till it becomes statute barred.

If your paying off other debts, would you struggle to include this one too ?
If I were you, and i was not actively been chased for it, i would wait until they contact you, you should have ample warning of any impending court action (they must notify you in writing beforehand) you can always make payment arrangements should you need to.

If you can comfortably pay something towards it, then do as ND advise above.

EDIT ; Just seen your previous post, you do risk a CCJ by default if they do not have your current address.

Ally2345

Yep - that's what worries me and by giving them my new address I automatically start the clock again anyway.

So shall I just call RBS and get them to tell me what the current situation is and if they still have the debt? I presume that is quite unlikely though as been so many years.

National_Debtline

Ally2345 wrote: »

Yep - that's what worries me and by giving them my new address I automatically start the clock again anyway.

So shall I just call RBS and get them to tell me what the current situation is and if they still have the debt? I presume that is quite unlikely though as been so many years.

I would normally expect any new debt collection agency to show on your credit file if the debt has been sold on, so it might still be with RBS.

You could test the water by contacting RBS to see what their attitude is. You might find a free debt management plan with Stepchange a good solution if you have any difficulty with RBS accepting your offer.

James
@natdebtline

Ally2345

OK will give them a call.

Are you aware of any cases where contacting them after so long has actually resulted in a CCJ or are they likely to just accept my offer? I can maybe afford £50-£100 a month now my other 2 accounts are closed.

sourcrates

If you do it over the phone, then you wont re-start the clock.

In order to do that, any contact must be in writing, or in the form of a payment.