We’d like to remind Forumites to please avoid political debate on the Forum.
This is to keep it a safe and useful space for MoneySaving discussions. Threads that are – or become – political in nature may be removed in line with the Forum’s rules. Thank you for your understanding.
📨 Have you signed up to the Forum's new Email Digest yet? Get a selection of trending threads sent straight to your inbox daily, weekly or monthly!
Settling on an old

velli100
Posts: 34 Forumite
(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.
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.
0
Comments
-
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.I’m a Forum Ambassador and I support the Forum Team on the Debt free wannabe, Credit file and ratings, and Bankruptcy and living with it boards. If you need any help on these boards, do let me know. Please note that Ambassadors are not moderators. Any posts you spot in breach of the Forum Rules should be reported via the report button, or by emailing forumteam@moneysavingexpert.com. All views are my own and not the official line of MoneySavingExpert.For free non-judgemental debt advice, contact either Stepchange, National Debtline, or CitizensAdviceBureaux.Link to SOA Calculator- https://www.stoozing.com/soa.php The "provit letter" is here-https://forums.moneysavingexpert.com/discussion/2607247/letter-when-you-know-nothing-about-about-the-debt-aka-prove-it-letter0 -
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.0 -
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 ?I’m a Forum Ambassador and I support the Forum Team on the Debt free wannabe, Credit file and ratings, and Bankruptcy and living with it boards. If you need any help on these boards, do let me know. Please note that Ambassadors are not moderators. Any posts you spot in breach of the Forum Rules should be reported via the report button, or by emailing forumteam@moneysavingexpert.com. All views are my own and not the official line of MoneySavingExpert.For free non-judgemental debt advice, contact either Stepchange, National Debtline, or CitizensAdviceBureaux.Link to SOA Calculator- https://www.stoozing.com/soa.php The "provit letter" is here-https://forums.moneysavingexpert.com/discussion/2607247/letter-when-you-know-nothing-about-about-the-debt-aka-prove-it-letter0 -
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).0 -
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.aspxI’m a Forum Ambassador and I support the Forum Team on the Debt free wannabe, Credit file and ratings, and Bankruptcy and living with it boards. If you need any help on these boards, do let me know. Please note that Ambassadors are not moderators. Any posts you spot in breach of the Forum Rules should be reported via the report button, or by emailing forumteam@moneysavingexpert.com. All views are my own and not the official line of MoneySavingExpert.For free non-judgemental debt advice, contact either Stepchange, National Debtline, or CitizensAdviceBureaux.Link to SOA Calculator- https://www.stoozing.com/soa.php The "provit letter" is here-https://forums.moneysavingexpert.com/discussion/2607247/letter-when-you-know-nothing-about-about-the-debt-aka-prove-it-letter0
This discussion has been closed.
Confirm your email address to Create Threads and Reply

Categories
- All Categories
- 351.7K Banking & Borrowing
- 253.4K Reduce Debt & Boost Income
- 454K Spending & Discounts
- 244.7K Work, Benefits & Business
- 600.1K Mortgages, Homes & Bills
- 177.3K Life & Family
- 258.4K Travel & Transport
- 1.5M Hobbies & Leisure
- 16.2K Discuss & Feedback
- 37.6K Read-Only Boards