Credit File and Money Advice

GP1983

Hello,

After 3 years of turmoil, I'm trying to get my credit rating sorted out and my life back on track.

I've made some progress but I've got a long way to go.

Current situation:

Loan with Tesco (defaulted, now with Robinson Way) - being paid off on a monthly basis.

Loan with Virgin (defaulted, now with MDRL) - being paid off on a monthly basis.

Debts with O2 (now with Lowell) - being paid off on a monthly basis

Loan with Barclay Card - I haven't got a clue what is happening with this but it must have defaulted. It has been over a year since I've had any communication with Barclay Card about this.

Yorkshire Water - There is debt with them. I don't know how much.
NPower - There is debt with them. I don't know how much.

I moved from Leeds, 1 year ago. Any written communication regarding the BarclayCard, Yorkshire Water and NPower debts will have gone there as I have not updated my address.

I need to sort this but I'm not sure where to start / who to speak to. I've paid off £10,000 in the last year but need to get the rest sorted.

Regarding BarclayCard - should I contact them directly? Or speak to the collection agency on their behalf?

Regarding NPower and YorkshireWater - what should I do here?

My credit rating is currently 238.

According to ClearScore

"You have had at least one account in Default or Repossession (LOWELL PORTFOLIO 1 LTD, ARROW GLOBAL LTD and 3 more)
You have no active credit card accounts."

Can someone point me in the right direction please?

Realistically, will I ever be able to get a mortgage / loan again?

Thank you in advance.

[Deleted User]

I would leave any mortgage application until you have at least repaid the defaulted accounts and built at least some food history

GeoffSpar8

Get a view of your credit files from ALL agencies so you know where you stand and when defaults will fall off (6 years from default date).

Weigh up whether it is worth settling the outstanding debts vs waiting 6 years. You gain little in the way of credit file points for a default that is settled vs a default that hasn't been settled.

Of course you can get a mortgage again but it is likely you will need to wait until the defaults have gone or are at least they become old (3+ years).

GP1983

How do you mean, all agencies? As in other credit check companies?

In terms of defaulted loans; if I decide it's just not worth paying them back, what happens? Would they bankrupt me?

GeoffSpar8

All agencies - Experian, Callcredit (free from Noddle), and Equifax (free from Clearscore).

Defaulted loans - depends on the policy of the lender. A lot of unsecured lenders simply sell the debt to a DCA who then try and collect. Some DCAs will proceed with court action if they feel there is realistic chance you can pay and they can win. Some will do a stat demand and try and bankrupt you.

In my experience, ignoring DCA letters from the very beginning (and often sending them back undelivered) resulted in the DCAs giving up.

YMMV

fatbelly

GP1983 wrote: »

In terms of defaulted loans; if I decide it's just not worth paying them back, what happens? Would they bankrupt me?

It's very unlikely they would issue a statutory demand.

It's possible they would start a court claim, which they can do at the last known address. You would get a ccj by default because you would not be able to respond.

It's more likely that they would sell the debts to someone like Arrow or Lowell, and you already have experience of this.

GP1983

Thanks for the information. I'll check other credit agencies to see what they say.