Debt to creditors

Steviev

Hi all,

Me and my wife are currently not financially joint as she is paying a token payment to creditors (she owes around 15k) and we need my credit file to look good for our mortgage etc. Shes had these debts now for over 10 years and when she started to get into trouble she had pay plan handle the payments. A couple years ago pay plan dropped her due to how long she was with them so she had to contact and handle the creditors herself which is very stressful for her. She keeps getting offers to write her debt off by the creditors of around 65% reduction which is great but we dont have the money to hand to pay these off at the reduced offer.

I recently checked her credit file and it's clear of the defaults that were put on when she had initial problems with paying for them and shes in a position now to start building her credit file back up but still has these creditors to pay off which wont go away for a very long time.

Were currently living in a shared ownership house buy are desperate to move. Shes now in a good job and together we can afford to move to our forever home but dont want to risk being tied financially unless we know we can get a good mortgage. So we are wanting to sort these creditors out so no more nasties are waiting around the corner to hinder either of our credit files.

I currently have 10k on credit cards that were comfortably working to pay off together.

Combined we bring in about 42k/year.

Is there anything we can do with the creditors? Are they sending these offers because they know were in a situation where we can do something?

Any advice would be very appreciated.

Thanks.

RecentPost

How old are the debts?
When was the last payment?

Steviev

The debts are easily over 10 years old. My wife makes token payments of about £5 a month to each creditor. Think about 4/5 different debts/ creditors in total ranging from a few 100 to about 7k.

Willing2Learn

Given the age of the accounts, I suggest submitting a CCA request for all accounts (but not for an overdraft). It is possible that your creditors are sending your wife these 'great offers', as they do not have compliant paperwork. To explain what I mean, I suggest you have a read of the following article:
Debts - why, how & when to ask for the CCA agreement

A letter template is linked below:
https://www.nationaldebtline.org/EW/sampleletters/Pages/Information-about-your-agreement-under-the-Consumer-Credit-Act-(sole-name).aspx

Steviev

That's great thankyou. If they do not have the paperwork then are they still able to default/report on her credit file? As shes only now got a clean file again. Could they still make a mark on her file if the original default has gone?

MovingForwards

No, they cant put another default on if one has already been added and dropped off. If they do complain and they have to remove it. I assume you have evidence to show the defaults were added previously eg a letter confirm one is being added or a copy of her credit history showing it.

Steviev

Thanks so much for the advice.

Were a bit afraid to ask for a cca from the creditors incase it would open up a Hornets nest, if they were to have a cca would they be inclined to throw the book at us an end up with a ccj?

Also if my wife was to get a credit card just to rebuild her credit score or if we were to get a joint mortgage would it not go down well with the creditors? Would they be able to see it on her credit file?

sourcrates

Steviev wrote: »

Thanks so much for the advice.

Were a bit afraid to ask for a cca from the creditors incase it would open up a Hornets nest, if they were to have a cca would they be inclined to throw the book at us an end up with a ccj?

Also if my wife was to get a credit card just to rebuild her credit score or if we were to get a joint mortgage would it not go down well with the creditors? Would they be able to see it on her credit file?

I think your seriously overthinking this, asking for information about your credit agreement is your statutory right under the consumer credit act, there can be no detriment to you for this, and it has no bearing whatsoever on weather a creditor takes legal action or not.

Your creditors do not have any interest, care in the slightest, or is it any of their business, what your wife does.

MovingForwards

Steviev I am self managing a DMP, with my historic debts and got a sub-prime CC last year and now a regular CC this year with my own bank.

I'm waiting on responses to CCA requests and building up some money to do f&f settlements when they respond. Makes no odds if it settles for £10 or £1k as it doesn't show on the report.

My view is clearing the old ones/historic debts not
showing on my credit report (aside from the CCJ from four years ago which is getting paid), whilst building up a new credit history and showing I am responsible with credit. My aim is to also buy a house this year.

So it can be done, just needs to be done carefully so not to create new bad debts!

Just to give you advice from a personal perspective.

Karonher

My only concern would be that they may not offer the discount again - they could say that the timescale had run out. As you cannot take advantage of it, it would not be a problem.

Steviev

We have a copy of my wifes credit file when the defaults were on it so that's covered. Ita good to know it can be sorted out one way or another and that we've got something to fire back at the creditors. Its just been such a stressful topic for my wife. The debts that shes carrying were caused by an ex and he left her high and dry. She doesn't deserve to carry these debts and the sooner we can clear them the better but we dont want to end up having to make larger payments. We just want to be careful that no more negatives end up on her file for another 6 years.

So asking for a cca wont provoke them to take it further? If they have it they just send it out and that's that?

Thanks again for sharing your advice. It helps having other people in a similar boat to talk to.