Pursuing Debts after 6 years.

[Deleted User]

Regardless the debt wont be removed from the credit files until 6 years from default

PixelPound

If you have made contact for one, they probably will pursue for the other. It may have been possible that they just let it lapse, but it's a risk - a claims form requesting payment within 14 days or a CCJ won't help your mortgage hopes.

If you catch it at pre-action-protocol stage then they cannot refuse an offer of payment, even £1 per month, so if its a case of not been able to save deposit and pay, then a low payment plan is one option. The statute barred letter is a good start but there are plenty of other options (partial settlements start with asking 90% off and then work upwards) so long as you get the timing right.

GMac14

So, I can write to them by e mail quoting the reference number for the £950 debt and update them with my address. I will then be contacted and worst case scenario aware of impending CCJ, but also have still not acknowledged other debt so retain and outside/slim chance of the larger debt becoming statute barred.

It looks like they have only just purchased the large debt from Hillesden, so in paying off the £950 over next 4 months I guess Im showing willing and they might not go straight to a CCJ on the other debt.

I can also speak to them and see if I can come to an agreement, perhaps a lower amount in exchange for setting up DD for maybe £300 per month? I think ZX said there is not much difference on credit file between fully settled part settled? or was it satisfied/part settled?

PixelPound

GMac14 wrote: »

I can also speak to them and see if I c It may an come to an agreement, perhaps a lower amount in exchange for setting up DD for maybe. £300 per month? I think ZX said there is not much difference on credit file between fully settled part settled? or was it satisfied/part settled?

I believe it was more the face that the default is due to fall off in a matter of months and so the impact of the default been partially satisfied verses fully would be limited. It may be different if the default was from say 2017.

GMac14

Understood and thank you. My understanding, from what I have read on here, is that if you discuss a settlement figure, the expectation is to pay that off in one go, so Im assuming I dont have much chance of (once I have paid of the £950 debt with Cabot), speaking to Cabot and saying I cant afford to pay off £5,800, but I could pay off £3,800 and if thats agreeable then I will set up DD for £317 per month and pay it off over 12 months?

Yes, I fully expect the standard answer would be, ring them and try, but was looking for anyone who has been aware of this happening previously or if its def a no go and would want a one off payment.

GMac14

nic_c, just re read your message:

"If you catch it at pre-action-protocol stage then they cannot refuse an offer of payment, even £1 per month, so if its a case of not been able to save deposit and pay, then a low payment plan is one option. The statute barred letter is a good start but there are plenty of other options (partial settlements start with asking 90% off and then work upwards) so long as you get the timing right."

So, thinking this through, the debt is frozen at this figure, so I am not charged interest, so once I have paid the £950 debt off, I could make an offer of £1 per month on the £5,800 debt, which you say they cannot refuse, I could then try to save £350 to £400 per month and just but this into my ISA or savings account, so in 18 months time (4 months to pay off £950 and 14 months saving circa £400 per month) when it comes time to apply for a mortgage, I could pay off the full amount.

Or even better, if I pay £1 per month in the interim, once I have saved maybe 6 to 8 months (£2,400/£3,200) I can make an offer of payment for that amount as full and final/part settlement.

It would seem this would be a more sensible course of action that betting on the slim chance of this become statute barred and running the risk of a CCJ, again, advice on this being a sensible course of action much appreciated.

ciderboy2009

GMac14 wrote: »

nic_c, just re read your message:

"If you catch it at pre-action-protocol stage then they cannot refuse an offer of payment, even £1 per month"

This is missing a critical word - it's actually a reasonable offer of payment.

So, if you offered £1 per month yet your income & expenditure showed you could afford £100 per month then they could refuse it.

PixelPound

ciderboy2009 wrote: »

This is missing a critical word - it's actually a reasonable offer of payment.

So, if you offered £1 per month yet your income & expenditure showed you could afford £100 per month then they could refuse it.

True you just ensure your income & expenditure showed that you are offering your full disposable income

You will be speaking to someone in a call centre who just needs to justify how much they are asking you for. It's a case of doing a budget before hand and seeing what you can afford to pay it off at without extracting the urine or skinting you. I wouldn't suggest offering just £1 if you feel you can afford more, but its a case of don't feel you have to plough everything into paying the debt off in a couple of months, so long as its paid off 6 months before your mortgage application (in case you need to provide bank statements to mortgage co)