Defaulted accounts

Davey_d

Hi can anyone give me some advice would be very grateful i'm trying to deal with money I owe I have round about 4 defaults which I am paying off. There is one however which is now 5 years 3 months old. Should I contact them or leave it till 6 years are up. Or if I do start paying it off after 6 years will it still drop of my credit file. I'm trying to clean up my mistakes unfortunately I have a poor credit rate which is going up slightly eveymonth which is the best credit rating I can hope for with defulted acvount on file. Thank you

[Deleted User]

It will drop off automatically, 6 year from default, whether paid or not.

However, if they get a CCJ, then the 6 years will restart.

You don't have a credit rating- just credit history. Each month that the default moves into the past, the marginally better lenders will view you.

Chappaz

Is the 5 year and 3 month default one where you still owe money? How much is it for?

After 6 years it's likely to become statute barred, so it's unenforceable and they can't chase you for it. However, this statue barred period only counts if you haven't paid or acknowledged the debt in any way. Contacting them about it would reset the 6 years.

Just be very careful, because lenders have a habit of selling off the debt to a collection agency just before the 6 year statute barred period is up to cut their losses and claim something back from it. So this seemingly dormant default may suddenly become active again with a collection agency chasing you and even issuing a CCJ.

Rich7111

Not if they are paying towards them it won't be (Statue Barred). Statue Barred 6 years from last payment, so if they stopped before this they risk further action and a CCJ which could lead to a further 6 years of credit problems. Just keep paying, it won't show after 6 years, but it will be totally worth it knowing it's not going to come back and interfere from your future credit history.

Personally, when you reach the six year mile (and if you are in a position) you could ask for a full and final settlement, this would save you X amount and you wouldn't have to worry about a Partial Payment being recorded

Davey_d

Thanks for uour feed back everyone its w great help ...it's a water bill for 1200 I've since moved from the property a few years ago and never had contact with the provider. I want to pay what I owe but also don't want to mess up a already poor credit history

Davey_d

I never started payment was living with someone and thought they was paying but I accept it's my fault

StopIt

Davey_d wrote: »

Thanks for uour feed back everyone its w great help ...it's a water bill for 1200 I've since moved from the property a few years ago and never had contact with the provider. I want to pay what I owe but also don't want to mess up a already poor credit history

The good news is that you're not going to do any more damage to your credit history as it is basically already as bad as it can get outside of insolvency.


The bad news is that you're in danger of getting a CCJ as the debt has nearly a year before it is statute barred AND you have to use that as a defence against any Court Papers issued otherwise you'll get a CCJ by default even after 6 years, requiring a £255 Set Aside to get it removed.


If you haven't gave the Water company your new address, they can (Not usually them but a DCA they either sell the debt to or get to manage the debt) start court proceedings by sending the papers to your old address, meaning you wont be able to defend yourself.


Remember also a settled default looks better than an unsettled one on your credit history. It basically looks like this:


Settled Default: "This guy didn't pay on time, but sorted the issue out"


Unsettled Default: "This guy didn't pay on time, then legged it"


Unless if you're wanting to wait until the debt is statute barred, off your credit history completely and tell the Water company "Nope, too late bub", I would get in contact with them to sort out a payment plan if you're wanting to settle this debt.