Not sure what this default means

Chappaz

Hi folks.

I've been looking at my Noddle report, and all my payments have been made on time apart from a £14 per month mobile phone contract which defaulted twice back at the start of 2012 (young, stupid, stubborn, I know).

Here's how it looks:



It is what it is, and it should fall off in the next couple of years. However, I'm a bit worried about whether this debt could come back to bite me, so I'd like some clarification.

February shows the account as defaulted, and then March shows a default but with SF, which means "satisfied". The account is also stated as closed in Noddle (in the closed accounts section), and this is the main header:



Now I can't remember whether I paid this off, but unless I'm mistaken, it looks to me as though it has been and everything is settled, is that correct?

I really don't want to contact the company because I've heard that there's a number of years before a debt becomes statute barred, but if I contact them and acknowledge the debt, then this becomes reset (correct me if I'm wrong).

Can anyone give me some insight or suggestions? I'd really appreciate it.

DCFC79

Its 6 years so i reckon next year is when it will fall off.

Thats right, if you were to start to acknowledge it it would be 6 years from when you acknowledge it.

Chappaz

Thank you. This is what I thought too.

But what I'm worried about is that I've heard everything can go quiet for a long time and then suddenly, near the end of the statute barred limit, a debt collection agency could get in touch and cause problems again.

And what's worrying is that this closed account has my previous address on file, so if they did start sending anything, it's unlikely I'd know.

So I feel a bit stuck, unless I can be assured that what's shown above means that it's certain that the default was settled and there's no further action to be taken. I don't want to be relying on the statute barred limit and keeping my fingers crossed. I'd just like to know if it's all done and dusted.

Considering the amount, I'd have no qualms with paying that even now, but I'd be worried that any contact might open this again and result in another default or worse.

[Deleted User]

You won't get a second default.

Chappaz

Is there no possibility that the reason the account is considered settled is because a debt collection agency has purchased the debt and they could apply a default of their own, or worse?

That's what I'm worried about really. Does settled and closed mean I've paid it and owe no more, or can it appear that way because an agency bought the debt.

MrsTinks

Even if they apply a default of their own the date will have to be the same so will drop off at the same point as this one. They can't restart the clock on the default. They CAN seek a CCJ which yes would end up on your credit file.

Yes it's possible a debt collection agency has bought the debt so check all 3 of your credit files for any details.

If you're on the electoral register though then you're not hard to find and they probably would have tracked you down by now... only way to find out is digging.

Chappaz

Thanks for the info!

Yes, it's a CCJ which worries me. My only concern with warning letters etc is if the new tenants don't bother doing anything so the collection agency assumes I'm still there and I'm just ignoring it.

I can't see any information about the debt being passed on in any of the credit files. If this has happened, is there likely to be a notification in one of the files?

So basically, if they can't add a new default or reset the clock, then I presume there's no risk in me calling them to ask, is that right?

The only worry is the statute barred time period, as if I acknowledge the debt, it resets. However, I'm not really bothered about this as it's only £14. I'd pay it tomorrow if it meant I didn't have to worry about it ever again.

There's been not a word from the company or any agencies since the 2012 default. My concern is that I've heard agencies can suddenly appear close to the statute barred period to get in before that closes the door. I think I'd rather find out sooner rather than later and settle if required, presuming there's no risk of fanning the flames by getting in touch.

The credit report file does say debt satisfied, but the question is whether it's satisfied because I paid, or satisfied because an agency bought the debt. Does anyone know if there's a less intrusive way to tell?

Chappaz

Okay, just a quick update.

I decided to take the plunge and call. After speaking to the company, they've stated that the debt hasn't been passed on and no money is owed, which is great.

Maybe I'm just paranoid but I'm not sure I trust that 100%. The chap at the Indian call centre seemed a tad confused as to what I was asking. I may try calling again to confirm as I don't want even the slightest risk of a new default or anything else being marked on and undoing 6 years of waiting for this default to clear.

The ease and speed with which that can happen does make you feel very uneasy.

But on a positive note, Aqua increased my credit limit from £600 to £1350 today after I sent a request. Not a bad bump considering I've only had the card for less than 5 months.

Nasqueron

Chappaz wrote: »

Okay, just a quick update.

I decided to take the plunge and call. After speaking to the company, they've stated that the debt hasn't been passed on and no money is owed, which is great.

Maybe I'm just paranoid but I'm not sure I trust that 100%. The chap at the Indian call centre seemed a tad confused as to what I was asking. I may try calling again to confirm as I don't want even the slightest risk of a new default or anything else being marked on and undoing 6 years of waiting for this default to clear.

The ease and speed with which that can happen does make you feel very uneasy.

But on a positive note, Aqua increased my credit limit from £600 to £1350 today after I sent a request. Not a bad bump considering I've only had the card for less than 5 months.

Just to reiterate what has been said on here twice -

You CANNOT get a new default
If a debt firm buys the debt it CANNOT set a new default date*
If the debt firm chases you inside the 6 years they CAN get a CCJ but it won't appear on your file if you pay within the time period (30 days I think?)
This debt will drop off all your records and be invisible to new lenders 6 years after the default (though the original firm may choose not to deal with you again)


*They might do it but you can force the CRA to correct it


Credit card limits are meh, unless you need to use that much it's pretty much pointless. I have £7500 over 2 cards and a £5500 BT card - I lowered the balances to increase the chance of getting a better BT card total for a big purchase I wanted to pay off over 3 years, prior to that I had £8850 on one card and £4000 on another. I never spent more than about £1500 and usually about £500 a month on both and paid off in full. Having so much credit wasn't of any use or of any benefit. I had a Nectar Amex which gave me over £13000 alongside the £8850 bank one

Chappaz

Great advice. Thank you.

I'm just particularly worried considering that I've changed my address since, so there's always the fear of getting letters which I won't see. Although my records show the address change so I assume they'd check this. I hope so, anyway.

Regarding credit limits, the only reason I'm trying to push it up is to improve my credit file as it's poor at the moment (this default doesn't help, but it's amplified by the fact I have very little credit history for them to go on).

And I do know that many lenders can look at low credit limits as a sign of risk (i.e. if other lenders haven't trusted this guy with much, perhaps we shouldn't either).

It helps me with my credit utilisation ratio as well. I'm trying to keep it fairly low but that's difficult to do with a £600 limit. Previously I've had to try and find something smaller to pay with the card otherwise I'd use 50%+ quite quickly.