Debts over 6 years old

[Deleted User]

Hello

We have several credit card debts over six years old we have been servicing through a DMP. cards which were defaulted ages ago and do not appear on credit file.
One mortgage shortfall debt from 2012 which will disappear from credit file in 2018 (june)

Must point out these cards were perfectly manageable on our budget till redundancy hit in 2009 when we started to experience financial issues.

Was considering bankruptcy but now looking at offering small token payments of a few hundred pounds to settle with F&F (have got the letters downloaded) The credit card debts are a few thousand each (but we barely have enough to get by as it is so these are the best payments we can afford)

As we have been servicing these debts we know they are still live debts, even though they arent on the credit file anymore. The mortgage shortfall is marked as satisfied as we paid a higher lending charge in the event of default (we handed the keys back and the property was sold at much lower than the market value)

The credit card debts are all with well known DCA mentioned on here frequently and we've never heard anything from them at all in over six years except the odd letter offering a payoff deal.

Please can anyone offer advice, obviously the standard letter of marking the credit file as satisfied doesnt relate in this case as it isnt on there anyway

sourcrates

Hi,

You dont say what, specifically, you want advice on.

Just one thing though, If you owe mortgage capital :

Mortgage capital is the money you originally borrowed. For this part of a mortgage shortfall debt, the lender has 12 years to use court action to make you pay. This is under section 20 (1) of the Limitation Act.

If you owe interest :

Mortgage interest is the interest you were charged to borrow the money. Your lender may also charge interest after your home is sold. For this part of a mortgage shortfall debt, the lender has six years to use court action to make you pay. This is under section 20 (5) of the Limitation Act.

Also would you mind just keeping to this new thread, instead of asking the same question in different threads, just serves to confuse everyone, thanks.

[Deleted User]

Hi and thanks for replying.

I just wanted to know what to expect really if anyone had a similar situation. Should I be requesting credit agreements from the DCAs?
I don't wanna upset the apple cart, just wanna try and settle.

Am aware that the mortgage lender can still pursue the mortgage capital which is why I thought it would be a good idea to get it in writing then they would no longer pursue us for the debt. They don't seem interested in pursuing us, we just assumed they would. They asked us to let them know when we would be going bankrupt when the house sold, in 2012

We want to get a mortgage in about 2 years for the house we are currently renting, as the payments would be almost the same as we are paying in rent.

Is it unusual that the lender would mark it satisfied ? I suppose it was, in some terms, as the higher lending charge was paid off.

Bit confused really.

sourcrates

Yes, you can ask for settlement deals by all means, most DCA`s will do a deal, especially on old debts.

CCA is a good start, to all relevant accounts, then make your offers to the ones who produce the correct paperwork.

National Debtline website is the place to find template letters for both "CCA requests", and "full and final settlements".

Make sure you do everything in writing, and any deals agreed, are also in writing.

[Deleted User]

Thankyou. What if they don't produce the paperwork ? As we've been making payments on these accounts they are acknowledged, even though not on the credit files.

Is the request for CCA to render the debt unenforceable ?

sourcrates

barmcakebird wrote: »

Thankyou. What if they don't produce the paperwork ? As we've been making payments on these accounts they are acknowledged, even though not on the credit files.

Is the request for CCA to render the debt unenforceable ?

Its not about acknowledging the debt, you can ask for a copy of your credit agreement, at any time, as long as a balance is still outstanding on the account, that is your statutory right under the relevant section of the act, makes no difference what has gone on before.

The creditor can send you either, the original copy agreement that you signed, or, they can send a reconstituted version, made up from information they hold on you in there files.

If they dont hold such information, they cannot just make it up, so if they dont hold sufficient info on you or the account in question, then they cannot fulfill your request, therefore the account would become unenforceable in court, until such time they can comply, which may be never.

That is it in a nutshell, it can be a bit more complex than that, and ultimately only a court can decide the enforcability of a debt once and for all, but normally no paperwork, after a bit of letter tennis, would mean the debt would not be pursued.

[Deleted User]

Thankyou.

Is there any point to asking for the CCA though if they can just make a rehash of it from old details

sourcrates

barmcakebird wrote: »

Thankyou.

Is there any point to asking for the CCA though if they can just make a rehash of it from old details

When old debts are sold on, and have been through various DCA`s, none of those DCA`s will of seen any relevant paperwork pertaining to these debts, the paperwork always stays with the original creditor.

Now creditors are only obliged to keep records for 6 years, although some keep them longer, so the chances are all evidence of your debts may of been wiped from their systems by now, so its always worth doing, as i said before, they cant just make it up if they dont have it.

fatbelly

barmcakebird wrote: »

.

Am aware that the mortgage lender can still pursue the mortgage capital which is why I thought it would be a good idea to get it in writing then they would no longer pursue us for the debt. They don't seem interested in pursuing us, we just assumed they would. They asked us to let them know when we would be going bankrupt when the house sold, in 2012

I would leave it alone.

Mainstream lenders follow MCOB and CML guidance that they should not pursue a shortfall debt if over 6 years since the property sold.

It's a case of 'don't poke it with a stick'

[Deleted User]

What will happen after the six years - or if we want to get another mortgage in a year or so though ?

fatbelly

barmcakebird wrote: »

What will happen after the six years - or if we want to get another mortgage in a year or so though ?

You said in post #1 that the entry is due to disappear in June 2018. You said you would be looking for another mortgage in 2 years. That should be OK, provided your file is otherwise clear. Just don't expect to get a mortgage from the same lender