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Asking for a Credit Agreement

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  • fatbelly
    fatbelly Posts: 22,980 Forumite
    Part of the Furniture 10,000 Posts Name Dropper Cashback Cashier
    Rjhsteel wrote: »
    It already has a default on it. The debt is now with Arrow, a debt purchaser. Someone else said it can't be marked as defaulted again.

    Then it drops off your file six years after that default date
  • Rjhsteel
    Rjhsteel Posts: 244 Forumite
    Part of the Furniture 100 Posts Name Dropper
    So the answer is?

    Is it ok not to pay this debt?
  • fatbelly
    fatbelly Posts: 22,980 Forumite
    Part of the Furniture 10,000 Posts Name Dropper Cashback Cashier
    If you have done a s78 cca request and they have not complied then any court action can be stayed.

    So it would be ok to stop paying the debt for now.
  • Rjhsteel
    Rjhsteel Posts: 244 Forumite
    Part of the Furniture 100 Posts Name Dropper
    fatbelly wrote: »
    If you have done a s78 cca request and they have not complied then any court action can be stayed.

    So it would be ok to stop paying the debt for now.

    And it wouldn't impact my credit rating at all?
  • fatbelly
    fatbelly Posts: 22,980 Forumite
    Part of the Furniture 10,000 Posts Name Dropper Cashback Cashier
    Rjhsteel wrote: »
    And it wouldn't impact my credit rating at all?

    The damage is already done. The only thing that could make it worse would be a ccj and even then, if you pay it within a month it does not show on your file
  • Rjhsteel
    Rjhsteel Posts: 244 Forumite
    Part of the Furniture 100 Posts Name Dropper
    edited 10 July 2019 at 11:45AM
    So, in conclusion, not paying these debts without a credit agreement, will not effect my credit rating. But would paying them off partially, improve it?
  • Rjhsteel
    Rjhsteel Posts: 244 Forumite
    Part of the Furniture 100 Posts Name Dropper
    I'm still a little confused about this.

    Say we decide to not pay, because of a lack of credit agreement.
    Does this debt stay on our record?
    Which will effect our credit rating right?

    What is the best course of action when no agreement is forthcoming?
  • Willing2Learn
    Willing2Learn Posts: 6,294 Forumite
    Part of the Furniture 1,000 Posts Name Dropper Photogenic
    Rjhsteel wrote: »
    Say we decide to not pay, because of a lack of credit agreement.
    Does this debt stay on our record?
    A defaulted account will always be automatically removed six years from the date of default, regardless of whether or not the account is settled.
    Rjhsteel wrote: »
    Which will effect our credit rating right?
    Your credit score is a marketing tool. Lenders neither see nor use you credit score. A lender scores you independently against their criteria and policies using the data held in your credit files, added to the data you submit in an application, added to the data they may already hold on you as an existing or returning customer.
    Rjhsteel wrote: »
    What is the best course of action when no agreement is forthcoming?
    If it were me, I would withhold payment. I would save the normal repayments in a savings account to use for F&F offers...
    I work within the voluntary sector, supporting vulnerable people to rebuild their lives.

    I love my job

    :smiley:
  • sourcrates
    sourcrates Posts: 31,597 Ambassador
    Part of the Furniture 10,000 Posts I've been Money Tipped! Name Dropper
    The lack of a credit agreement just removes the creditors ability to take legal action, nothing else changes.
    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-letter
  • Rjhsteel
    Rjhsteel Posts: 244 Forumite
    Part of the Furniture 100 Posts Name Dropper
    Thanks again for all your help.
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