Old Default

Starzy

Hi all,

Just wondering if anyone can give me some advice regarding an old default I have.

I defaulted on a credit card back in Jan 2012, this CC has been with a few different debt companies since it defaulted.

It's currently with Arrow now who are terrible to deal with, the original debt is around £2,700. Back at the start of this year they sent me some letters to try and settle the debt which I was willing to do. I was speaking to them daily and offered different settlement figures and each time they were not willing to accept any of them.

I then offered them another settlement figure and they then suddenly just went away and I haven't heard from them since. The default is due to clear off my file in January 2018.

I understand the debt still needs to be paid but can anyone give me some advice on how I should proceed? Come January time can they send me a CCJ and demand for me to pay the debt in full, or would they already have done this by now?

National_Debtline

Hi Starzy,


Once the default comes off your file the only other thing they can add after that is a CCJ. They have 6 years to take county court action from when the 'debt fell due' under the limitations act. The 6 year clock starts from when the first payment was due and missed or from when the last payment was made or from when the last written acknowledgement was made - whichever is the later. Every time a payment or written acknowledgement of the debt is made, it restarts the 6 year clock.


So, if the conversations earlier this year were all on the phone, this may not have affected the limitations act, but unfortunately, there is no way to know whether a creditor will follow through with court action. Please be aware that claim forms only need to be sent to your last known UK address, so if you have moved and don't tell them you can miss paperwork and it can be costly to try and challenge a CCJ (if you can) after it has been made.


I would suggest speaking to one of the free debt charities to talk about the options in more details, but you could reconsider your settlement offer to this debt (if you are still in a financial position to do so), or, if you have other debts, there could be other options (such as monthly negotiations or a Debt Relief Order). Good luck,


Laura
@natdebtline