Prac/bw legal help

mly15

Hi all,

I wonder if anyone can help. I've spent the last few years repairing my credit, and also through the great advice on this forum have had a few defaults removed. One that just dropped off was from Payday UK for £75, which was regaistered as a default on my credit account in June 2011. This has now dropped off. However I just received a letter from PRAC amd BW Legal in same envelope sneding me a default notice - however with all the old details on, so not a new one from them (however the letter is purposefully not that clear) saying that they purchased the debt in Dec 2016 and for good order are issuing the default notice again. It then goes onto say that they will not make any amendments to my credit file default date and the one registered on my credit file will remain unchanged. it says they have issued me with the default notice to allow additional time to pay my balance prior to considering further action..I am confused to say the least. Are they just trying it on to scare me?? I shoudl also mentioned i have not paid anything to Payday or acknowledged the loan during the 6 year period aside from to challenge the default.

Also, Payday UK listed this as debt assigned prior to it dropping off my report and it was my understanding going off some very useful info off this forum that “We've sought clarification from the Information Commissioner's Office on this and they have confirmed our view that a credit agreement can normally only be recorded as defaulted once on a credit report for a period of six years. If the debt is sold on within this time the original default entry is marked with a 'debt assigned' or 'debt assigned to CAIS member' flag (Experian terminology). The latter is used when the new company is also a data sharer and it can then register a record of the default, same date and amount, in its own name. The flag on the original entry makes sure the default is only counted once in credit rating calculations and other assessments. But, importantly, once the six year period expires the account cannot be registered as a new default again in the future, either by the original lender or a new company. '

As it's such a small amount I am tempted to just pay as this default just dropped off my file and don't want another one for the same thing..However not willing to give someone money for no reason! Any help appreciated! Thanks!

Sarastro

If I read your post correctly, the default notice has expired because it's 6 years old, but you still owe the money because you took the loan but have not paid it back. If that's right, and you can afford it, you should pay it otherwise you risk getting the default for the 'new' debt.

[Deleted User]

mly15 wrote: »

However not willing to give someone money for no reason!

It wouldn't be for no reason. It would be to pay back what you owe.

tastyhog

Sarastro wrote: »

If I read your post correctly, the default notice has expired because it's 6 years old, but you still owe the money because you took the loan but have not paid it back. If that's right, and you can afford it, you should pay it otherwise you risk getting the default for the 'new' debt.

nonsense, there is no 'new debt' only the old debt that has been sold on.

any default must be with the initial default date, no new default can be placed on their credit file.

providing no payment or acknowledgement of the debt has been made then it will be statute barred as it's been over 6 years.

PixelPound

Assuming when you challenge the default, there was no written acknowledgement, then issue a stat barred letter. Do bear in mind that they may have bought it for pennies, especially if it is close to the 6 year limit (e.g you made a payment after the default date) they may simply issue a Letter before Claim and start legal proceedings.

StopIt

If the default was in June 2011 and you haven't paid or made any acknowledgement of the debt, as nic_c states, send a letter stating that the debt is Statute Barred.


https://www.nationaldebtline.org/EW/sampleletters/Pages/Time-has-run-out-to-recover-the-debt-(sole-name).aspx


Is a good template.


When a company buys a debt, they become the holder of all rights of the debt, including the responsibility to report any defaults to the CRA systems. However, it'll only be a re-registration of the original default and if it's off your credit files, it wont re-appear.


However, you must send this letter saying the debt is statute barred otherwise the DCA will still threaten legal action etc. Once you issue this, they will legally be unable to chase you for the debt, so long as it is statute barred.

sourcrates

Agreed, sounds like its statute barred to me.

Send the letter in the link in post #6# above.