Advice on a default

coles88

Hi,

I'm looking for some advice on a regrettable issue! I was silly with a credit account in my early 20s and let the account default. I've compounded that silliness in recent years by ignoring it, but am trying to sort it now.

The default is with a debt collector and shows on my credit account from October 2013, but I've not communicated with them in this time.

I understand that a default drops off your credit file after 6 years - but also that if I continue to ignore it, they might apply for a CCJ when the 6 year expiration date approaches (which would be October 2019).

If I get in touch with them and pay it off now, will that effectively re-set the 6 year date so that it stays on my credit file 'til 2024 because I've acknowledged it? And if so, am I better off waiting to see if they do bother with a CCJ next year? I read somewhere that if they did apply for a CCJ last minute and I paid the debt off then, that it wouldn't re-start the 6 year period. Is this true?!

Any advice on my best action to minimise the future impact of the debt would be much appreciated.

Thank you!

glentoran99

you are getting two things confused,


Statute barred clock and time within which they can apply for a CCJ, which would be reset if you paid it now, but a non issue as it will be paid


The default will drop off October 2019 regardless

coles88

Thank you. So if I got in touch with them and settled the debt now, the default would show as settled on my credit file up until Oct 19 and then the whole thing would drop from my record?

[Deleted User]

Correct.

Waiting for a ccj is silly as unless you know what address the account is under you may not receive the CCJ notice.

Plus you would also have a load of fees on top as well

glentoran99

coles88 wrote: »

Thank you. So if I got in touch with them and settled the debt now, the default would show as settled on my credit file up until Oct 19 and then the whole thing would drop from my record?

Yes, that's correct

coles88

Thank you! Very much appreciate you clearing up my confusion and feel much better about getting it sorted now.