Statute barred and other debt questions

SD18

Hi all,

New here and could do with some advice.

So firstly, my tale is similar to many, many people who have posted on here. I was young, uneducated and naive. My debt issues have stalked me for years and even now cause me stress.

The background -
Various payday loans from the following in 2011/12:
Myjar
Valour
Instant Cash/PayDay
Lending Stream

Two credit cards from:
Natwest
Capital One

One satisfied CCJ

Firstly. The CCJ. It was paid in full and the date of judgement was 8/8/12. So am I right in saying that this will fall off my credit report this August? (6 years, give or take a few weeks for report to update).

Secondly. My pay day loans. I took them out to help pay other loans. The ones I have listed are all defaulted at various dates through 2012. I haven't paid anything back to any of them. I haven't replied to any letter or correspondence. I wasn't able to. They remain defaulted and unsatisfied.
Why is it on my credit report the balance says £0 when I haven't paid anything back to them?
Am I right in saying that the date they come off the credit report is different to the 6 years to become statue barred?
In my instance, as I literally paid nothing and acknowledged nothing from the date of the default, does that mark the date for the 6 years for it to become statue barred?
By the end of August, in theory they will all drop off my credit report as August 2012 was the last default date. If they will also become statue barred at this point then am I wise to sit tight?

Also, on the one from INSTANT CASH LOANS LTD T/A PAYDAY UK it says Default Satisfaction Date in 2016, but I haven't paid anything or spoken to them? Will this effect the statue barred date?

If I was to start paying an amount per month to these, would they still come of my report this year? (6 years from default date). Or do they get "reset".

My main worry is getting a new CCJ. I've moved twice since these loans were taken out but my credit reports both show my current address as I am on the electoral roll. Will the debt companies send them to the address from 2012 or attempt to send them to my new address? I'm just worried about not knowing and the first I see of it is on my credit file, when it's too late to pay and get it removed. However if I write to the debt companies updating them with my new address, will that count as correspondence and reset the 6 years for the statue barred?

Finally, on my credit cards. I defaulted on both. I have paid both of them back. Again both due to drop off this year but they are still listed as defaulted on my experian report and not as satisfied? Is this a mistake I need to get corrected? On my equfiax report, they both say satisfied.

Thank you in advance.

System

1) Yes.

2) They've most likely been sold on and yes they disappear after 6 years as well.

3) The Instant Cash Loans will only affect the statute barred if it was one of the ones included in point 2 but only for that company, not all of them. It gets reset.

Basically the easiest way to think about it is that with the statute of limitations no entry over 6 years old will appear on your credit file. So tomorrow everything up to 6 years ago today (28/5/2012) will disappear, on Wednesday everything up to 6 years ago tomorrow (29/5/12) will disappear etc. So an updated "Default Satisfaction Date" of 2016 will disappear in 2022.

Will the debt companies send them to the address from 2012 or attempt to send them to my new address?

They are only legally required to send them to the last address they have on file for you. If you've not given them your new address they're only legally required to send them to the old one.

Finally, on my credit cards. I defaulted on both. I have paid both of them back. Again both due to drop off this year but they are still listed as defaulted on my experian report and not as satisfied? Is this a mistake I need to get corrected?

Yes that is an error and they need to get marked as satisfied however if they're due to drop off in the next couple of months I'd probably not bother as it'll take you longer to get it done than that time.

SD18

Tarambor wrote: »

1) They are only legally required to send them to the last address they have on file for you. If you've not given them your new address they're only legally required to send them to the old one.

Thank you for your advice.
On this point, do you think it's worth sending them a letter with my up to date address on. Would this constitute acknowledgement and thus "reset" the 6 years for statue barred?
Can I add onto the letter that I don't adknowledge any debt, just updating my address for your records?
I really want to avoid a CCJ appearing on my credit report in the run up to these becoming statue barred. As by the time I'd see them pop up, I'm sure the 30 days to pay in full and have it removed would be gone.

And if I did say pay £10 a month to all of them, would they still drop off my report from the original default date (and thus fall off this year?)

sourcrates

Most likely scenario is that your payday loans have been sold on to a debt purchaser such as Lowell or Cabot, that normally happens just before they become statute barred, so you may get some letters shortly, any threats of legal action I would take seriously.

Post back if you need further advice on how to deal with this issue.

fatbelly

I was wondering how to post on this, then Sourcrates posted. I think he is right. Lowell or Cabot are the most likely purchasers and they will be able to see your present address from your updated credit file.

The credit file entry drops off 6 years after it is defaulted or settled. It is as simple as that. Any debt purchaser must use the date of the initial default.

If an organisation wants to commence court action they must now send a formal pre-action protocol letter, with a reply form

https://debtcamel.co.uk/letter-before-claim-ccj/

If you do get one, post again.

SD18

Thank you both for your advice.

So I am right in saying that for the pay day loans, the date they become statue barred would be the date of the default plus 6 years and a day? As I didn't pay anything to any of them nor replied to any letters, emails or phone calls thus not acknowledging the debt?

I'm not proud of all this. I was in a payday cycle at the time and I guess probably may have a case via the affordability criteria but I didn't dare want to "awaken" them so they could start hounding me again.

So best to sit tight and wait to see if a letter comes through? I've had the usual "we may do this, last chance to pay a discounted payment" letter but what I'm looking for is an actual pre-action letter for a CCJ. If one does turn up, then I'll 100% deal with it.

But if not then do I need to write to the agencies saying this debt is now statue barred or just leave it?

sourcrates

When you are sure a debt is statute barred, and you are contacted about it, you then respond with the statute barred letter.

fatbelly

If you've never made a contractual payment then the 'cause of action' would be the first missed payment, and the debt becomes statute barred 6 years after that.

The default should be registered after 3-6 missed payments. However, to avoid unnecessary legal arguments with dodgy debt buyers, wait until 6 years after the default date before sending the statute barred letter.

SD18

fatbelly wrote: »

If you've never made a contractual payment then the 'cause of action' would be the first missed payment, and the debt becomes statute barred 6 years after that.

The default should be registered after 3-6 missed payments. However, to avoid unnecessary legal arguments with dodgy debt buyers, wait until 6 years after the default date before sending the statute barred letter.

In theory, I believe that would actually make them all statue barred now then. I will indeed wait until the default dates have passed.

Thank you all so far for your advice. I want to stress, I have learned from this and now manage my money/credit responsibly. It does nag at me that I owe money. If I could clear it, I would but I've not been in a place to pay these back until more recently but I don't want to risk putting myself into a worse situation again, especially with my mental health. I don't think now I should have been loaned the money based on recent cases of affordability checks etc but it takes two to tango and I am as much to blame as the people who lent me the money.

SD18

Hi all,

Me again. Went through some old documents and discovered the letter of claim from Prac/BW Legal for the isntant cash loan/payday debt.

This was sent to my current address on 24/10/17 with a reply needed by 28/11/17. I foolishly put this in with the other few letters I have received over the months which I assumed were bog standard debt letters.

Where do I stand? I havent heard anything since. Nothing from the court. Nothing on my credit file and its 6-7 months past the deadline set by the letter?

fatbelly

SD18 wrote: »

Hi all,

Me again. Went through some old documents and discovered the letter of claim from Prac/BW Legal for the isntant cash loan/payday debt.

This was sent to my current address on 24/10/17 with a reply needed by 28/11/17. I foolishly put this in with the other few letters I have received over the months which I assumed were bog standard debt letters.

Where do I stand? I havent heard anything since. Nothing from the court. Nothing on my credit file and its 6-7 months past the deadline set by the letter?

So that was the pre-action protocol letter I linked about earlier.

They are not obliged to take court action following a lack of response from you, but that hurdle is out of the way for them.

If you now get an actual court claim you just deal with it in the same way as we used to before the pre-action protocol came in, which in our case is to refer you over to legalbeagles in most cases.

It could be that they were trying to scare you into action before the debt went statute barred. A court claim costs money whereas a pre-action protocol letter costs the price of a stamp. If they cannot be sure whether you would ever pay them anything they may well have taken a commercial decision to drop it, or try to sell it onwards.