Pursuing Debts after 6 years.
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Regardless the debt wont be removed from the credit files until 6 years from default0
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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.0 -
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?0 -
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 2017.0 -
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.0 -
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.0 -
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.0 -
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.
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)0
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