Settling on an old

velli100

(Apologies for the title - No way to go back and edit)

Hi there,

A couple years back I took out a loan with 118 which I later was unable to pay and ignored the subsequent letters and calls. The account was defaulted on 08/06/16 and was recently passed to Lowell on 12/12/2018. I would like to approach lowell to settle to bring this matter to a resolution finally but was wondering if I were to 'acknowledge the debt' or make a full/partial settlement offer/payment would the 6 years clocks reset? Ie would I have to wait 6 years from the settlement date or 6 years from the defaulted date for the loan to drop off my file?

What would be the best approach you would take in this situations. Thank you very much as your advice is greatly appreciated.

sourcrates

Six years from the date of default the debt will be gone from your files regardless of what you may or may not do.


So 08/06/2022 it will be gone.

velli100

sourcrates wrote: »

Six years from the date of default the debt will be gone from your files regardless of what you may or may not do.


So 08/06/2022 it will be gone.

Thanks Sourcrates, however having read through a lot of threads lately I notice that there is a consensus that if you 'acknowledge a debt' or make payment towards it that would reset the time for it to drop off your account. Is this false? And just lastly can you point me towards anything that can be of help in dealing with/negotiating with debt collectors? Once again thank you very much.

sourcrates

velli100 wrote: »

Thanks Sourcrates, however having read through a lot of threads lately I notice that there is a consensus that if you 'acknowledge a debt' or make payment towards it that would reset the time for it to drop off your account. Is this false? And just lastly can you point me towards anything that can be of help in dealing with/negotiating with debt collectors? Once again thank you very much.

Never take notice of anything that has the sentence "consensus of opinion" written within it, it invariably turns out to be incorrect.

You are confusing the Limitations act 1980, with the default process, two separate things altogether.

If you acknowledge a debt, it re-starts the statute barred clock, thus extending the time it takes for a debt to become statute barred.

Defaults are completely separate things, once an account defaults, it stays that way for 6 years, as said previously, then drops off your file, makes no difference if you pay it or not, nothing can extend or reduce this period of time.


What do you want to say to, or know about, the debt collector ?

velli100

sourcrates wrote: »

Never take notice of anything that has the sentence "consensus of opinion" written within it, it invariably turns out to be incorrect.

You are confusing the Limitations act 1980, with the default process, two separate things altogether.

If you acknowledge a debt, it re-starts the statute barred clock, thus extending the time it takes for a debt to become statute barred.

Defaults are completely separate things, once an account defaults, it stays that way for 6 years, as said previously, then drops off your file, makes no difference if you pay it or not, nothing can extend or reduce this period of time.


What do you want to say to, or know about, the debt collector ?

Id like to make an offer to partially settle the defaulted debt. Is there a plan of action I should follow? I seem to read that you should never contact them by phone and have everything agreed in writing. Is there drafted template letters I can send since my writing skills are not the best? (with all the legal jargon).

sourcrates

velli100 wrote: »

Id like to make an offer to partially settle the defaulted debt. Is there a plan of action I should follow? I seem to read that you should never contact them by phone and have everything agreed in writing. Is there drafted template letters I can send since my writing skills are not the best? (with all the legal jargon).

National Debtline do a good sample letter here :

https://www.nationaldebtline.org/EW/sampleletters/Pages/Full-and-final-settlement-offers-%28sole-name%29.aspx