Credit score and debts

Forest657

Hi

I am trying to solve some problems with a lot of debt that I have, and was wondering if you can help with general information.

I have over 20k of debt, going back years and am trying to pay off what I can, in the order that costs me the least, and have quite a lot of interest frozen. Most of the debts I am paying £1 a month.

I was working on an old credit report which lists debts as £26,000 in total.
However, I just did a new credit report with noddle and it isn't showing most of them (I think because it was registered over 6 years ago).

My query now is, what happens to the debt? Does it still have to be repaid, do I keep paying the £1 that I have been paying and what will happen if I stop?

Thank you in advance

Willing2Learn

Hi,

Even though six years have passed and the accounts have been removed from your credit file, you are still liable for the debts as you have been making regular payments. Your debts are still enforceable. You have been acknowledging the debts because of your £1/month repayments


It is up to you what you do. But if it were me, I would consider making full and final settlement offers to all your creditors.

I would also check your credit report with the other two CRAs, to confirm which accounts are still being reported on your credit files.


Edit: I forgot to mention. Before you make any full and final settlement offers, it would best to make CCA requests for each debt account. This would ensure that your creditors have the correct paperwork. If they cannot provide you with a reconstituted copy of your original agreements, then it may be that one or more of the debts are no longer enforceable.

Forest657

Thank you for your replies.

I certainly won't be able to make full repayments, on most of the debt, but I am working with creditors to make partial resettlements.

It just threw me when I saw they had been taken off my credit report and was unsure what it meant.

I will continue dialogue with the companies concerned.

Thank you

Forest657

Sorry one more question...

I have made a partial resettlement on one debt and it will stay on my credit record for 6 years as partially settled, I understand that.

But what happens with debts that have been taken off because the 6 years is up? If I now partially resettle, does it get readded for 6 years?

Thank you

[Deleted User]

No. Accounts are removed 6 years from default (not settlement) and will stay off, unless they get a CCJ. Settling doesn't bring them back.

Forest657

Thank you!

PixelPound

Are all these £1 per month individual agreements with creditors or part of an IVA etc. You also don't say what types of debt, credit debt (e.g. cards, loans, overdrafts) or other types (CCA only applies to credit agreements)

When people talk "full and final" they mean settlement offers, that is you only pay a percentage and then it gets marked as partially satisfied. If the default date is 6 years or more then whilst they have to tell you it will be marked as partially satisfied, it's 6 years from the default date not the settlement date.

Forest657

They are a combination of overdrafts and loans. All single companies and I have agreed £1 a month by phoning individually each company (after advice from step change).

All were given to me at a bad point in my life and I should never have been allowed them. For instance, I was invited into the bank for a check-up, I said I didn't need one but they insisted they could help.
I gave them details showing what I earned was less than my outgoings and still walked out of the bank with £10,000 in my account from a loan, not needing to pay anything for 6 months then jumping to £300 a month, even though I told them I couldn't pay. Shocking really looking back at it but when you are in financial trouble, you take any way out you can get.

Now I am in a better shape financially I am trying to get stuff paid off, have paid a couple off at 10% resettlement.

The others I am ok paying, I actively sought the credit and totally my fault, the £10,000 loan I am more bitter about tbh, it was forced on me at a dire time.

[Deleted User]

You would have had to sign and agree to a credit agreement for the loan - no one made you do that but yourself