£433 old debt from bank loan 8+ years still showing as default

sourcrates

CRA - credit reference agency.

The limitations period in Scotland is 5 years, so the debt is statute barred now, and under Scottish law, no longer exists.

The default period is the same as the rest of the UK, and will continue to show till the 6 years are up regardless of what you do.

Engineer1975

Excellent thank you.

So it would be feasible to call this debt collection company and state that this debt no longer exists?

thanks sourcrates

Is that a Bill and Ted reference ?:rotfl:

sourcrates

Engineer1975 wrote: »

thanks sourcrates

Is that a Bill and Ted reference ?:rotfl:

“All we are is dust in the wind,” dude.

PaulW922

I think that technically the debt *does* still exist - it is just unenforceable. If you write to the debt company and point out to them that you do not acknowledge the debt, that it is in any event unenforceable and you would like them to stop writing to you, then they should. However you may decide just to leave it - eventually they will stop.

I presume they are not threatening court action against you? that would be different.

Unless you have an urgent need to get rid of that default now, I would suggest you just wait for it to automatically drop off.

sourcrates

PaulW922 wrote: »

I think that technically the debt *does* still exist - it is just unenforceable. If you write to the debt company and point out to them that you do not acknowledge the debt, that it is in any event unenforceable and you would like them to stop writing to you, then they should. However you may decide just to leave it - eventually they will stop.

I presume they are not threatening court action against you? that would be different.

Unless you have an urgent need to get rid of that default now, I would suggest you just wait for it to automatically drop off.

Hi,


The law in scotland differs slightly from the rest of the UK.


In Scotland, after 5 years, a debt becomes extinguised under the Prescription and Limitation (Scotland) Act 1973, it no longer exists.

If you have started to make payments on a debt after the five year limitation period has run out, your payments will not have revived the debt. The debt is still ‘extinguished’ and legally no longer exists. You could even argue that the creditor should pay back the money that you have paid because there was no debt to be paid off.


https://www.nationaldebtline.org/S/factsheets/Pages/statute-barred-debt-scotland/time-limits-for-recovering-debts.aspx

Engineer1975

"Unless you have an urgent need to get rid of that default now, I would suggest you just wait for it to automatically drop off."
Originally posted by PaulW922

It would be beneficial to me if i could remove this default urgently.

I will possibly have to start applying for some serious loans/grants etc. in the next few months.
I'm not sure if business loans would apply to my personal credit.
Thanks Paul.

Engineer1975

PaulW922 wrote: »

I think that technically the debt *does* still exist - it is just unenforceable. If you write to the debt company and point out to them that you do not acknowledge the debt, that it is in any event unenforceable and you would like them to stop writing to you, then they should. However you may decide just to leave it - eventually they will stop.

I presume they are not threatening court action against you? that would be different.

Unless you have an urgent need to get rid of that default now, I would suggest you just wait for it to automatically drop off.

Yeah no court action being threatened, the last letter i received from them was Nov 2018.
I'm guessing this was their last attempt to recover this debt before the 5yr mark

Engineer1975

OK i have found some more info on this debt.
The last missed payment on this loan was on 11/06/2012. Payments were kept up until the balance of the loan was paid off (Sept 2013)
assuming the bank logged the defaulted payment using ICO Guidance 3-6 months after this date which would be mid December 2012 if you use the full 6 months.

According to the website Debtcamel, any debt sold to a debt collector must use the original creditors default date. (cant post links as i a newb member).

"Debt sold to a debt collector
If a debt is sold to a debt collector, then the new creditor should use the same default date as the original creditor did. If the original creditor didn’t add a default, you can ask the original creditor to add one, then the debt collector will have to use that.

If the original creditor didn’t report to a credit reference agency at all (this is unusual) then the debt collector should apply the same ICO rule that the original creditor would have used."

above quote from debtcamel website.

Will this be reasonable grounds to have this default removed as its 6+ years from the original default date?

[Deleted User]

You need to contact the DCA and ask them to use the correct and original default date