Default Dated - 18/11/11

Orlando_Virgin

Hi All,

First of all I know I should endeavour to pay all debts back, but just a common sense question really. I've worked really hard the last 6 years to finally relieve myself of all debts, I'm now down to just an overdraft of £500 that should be done this month and one defaulted credit card account from November. This balance is still outstanding, but having read about defaults being cleared, am I correct in assuming that the default will be removed in November of this year anyway? I would rather save the £1000 and put it towards a mortgage I am finally going to get rather than paying a default off that I should nearly 6 years old, that ironically I am actually going to gain nothing from, if that makes sense?

Any advice welcomed.

Westminster

It depends on the finer details - specifically when you last officially 'acknowledged' the debt (typically this is when you last made any payment towards it) which will dictate when the debt becomes statute barred.

The reason being, that the account will be removed on the 6th anniversary of its default - however this doesn't mean that you don't owe the money.

As long as it is within 6 years from when you last acknowledged the debt, then the creditor can still apply for a CCJ (regardless of whether the default is still visible - it is only the 6 year acknowledgement that counts) and if they are successful in gaining a CCJ and you don't pay it off (you have something like 28 days to settle a CCJ) then bang - the debt is right back on your credit files for another 6 years.

You need to be very certain that the creditor knows your current address - as if you haven't updated them and have moved, they are within their rights to issue CCJ court papers to your last known address, which means you are unlikely to know about it until it appears on your CRA file and it is much more difficult to then get it removed.

ashp_2

The default will be removed in November as you say. Worst case scenario they could get a CCJ prior to this. You would then have a CCJ on your report for another 6 years.

Orlando_Virgin

Ok, thank you. If I make being completely honest I know they have my address and I have paid some of the debt but not all of it. It has been passed to a collection agency from Santander but I'm not sure which.

Am I best to contact them and find out the current status then aim to pay before November?

ashp_2

It's probably better to pay it off. I'm sure you would be pretty gutted if you needed up stuck with a CCJ for 6 years!