clearing credit cards

gudda96

Hi Guys

3/4 years ago, I did a "part settlement" for my daughter, as she had been conned into debt on 4 credit cards by a lousy boyfriends.

I agreed a % amount with all companies and cannot remember what her legal and debt obligations are after me doing this.

I heard something about a 6 year period, but need to know more.

Would welcome guidance on same.

Willing2Learn

Hi,

What is your question? You want guidance on what exactly?

[Deleted User]

The 6 year period can refer to a debt being statute barred and therefore unenforceable if no acknowledgement has been made.

Alternatively, you may be referring to the 6 years CRA retention period.

gudda96

Willing2Learn wrote: »

Hi,

What is your question? You want guidance on what exactly?

Hi Guys

I am a bit vague on dates at the moment, but a rough picture is...

My daughter was conned by a boyfriend who "persuaded" her to borrow on several credit cards, and take out a joint load with AA, the total amount being £25K.

Needless to say, he never paid anything on the "joint" loan, and nothing to the card companies that were in her name.

It was all done approximately 10 years ago, and she starting paying back as she was working. I eventually found out, and contacted Step Change and others similar and received good help, and started paying the £1 per month as suggested.

About 4 years ago, I negotiated a % settlement which I believe is called a "part settlement" naturally, so my question is, once 6 years has passed since I settled, will her record be clear.

Willing2Learn

Assuming that all of the accounts were defaulted at some point in time, then each defaulted account will be automatically removed from your daughters credit file, six years from the date of default. She can check her three credit files for free to confirm if the accounts are still showing.

gudda96

What do you mean by Defaulted account please?

Willing2Learn

A default occurs when the original credit agreement is broken and the relationship between the creditor and borrower has been terminated. An account is typically recorded as having defaulted once it is 3-6 month in arrears of the original agreement.

gudda96

If it helps, my daughter was never in arrears, as she was repaying £1 until I did the settlement, so I will ask you this, after 6 years have passed since I made the AGREED % part settlement, will she still have a bad credit score

[Deleted User]

Your daughter would have been heavily in arrears, if she was only paying £1 a month. £1 wouldn't have met the minimum payments on any of her accounts.

Her credit score is irrelevant. What matters is what is visible on her credit files. That is what lenders will judge her on.

Willing2Learn

gudda96 wrote: »

… after 6 years have passed since I made the AGREED % part settlement, will she still have a bad credit score

Have you checked your daughter's three credit files? You need to check them to see how (and if) these accounts have been recorded. Only then will you know if there is any negative indicators recorded on her three credit files.

gudda96

Willing2Learn wrote: »

Have you checked your daughter's three credit files? You need to check them to see how (and if) these accounts have been recorded. Only then will you know if there is any negative indicators recorded on her three credit files.

Excuse my ignorance, how do i do that, will it be Experian and others?