What to do about Default?

manny89

I have a default from Barclays showing on my credit report for 354 pounds. It first showed up as a default in May 2015.

Is it true that if I pay it now, the 6-year clock restarts, so will show on my report for the next 6 years?

Would I be better just not paying it and letting it disappear?

The bank have never ever contacted me or sent any letters about this debt. Never heard anything from any sort of debt collection agencies or anything...

Kentish_Dave

No, the clock will not be reset, and yes, you are better paying it.

It’s also the right thing to do.

Willing2Learn

manny89 wrote: »

Is it true that if I pay it now, the 6-year clock restarts, so will show on my report for the next 6 years?

This is not true. The account will be automatically removed from your credit file six years from the date of the default, regardless of whether or not you settle the account.

A defaulted account that is settled or satisfied will probably be viewed more positively when and if your file is checked by lenders.

manny89

Thanks. I guess now the problem is just finding out who to pay it to and how guess I will start by contacting Barclays.

[Deleted User]

If you pay it in full then it’s will be removed 6 years from the date of default still.

If you pay in instalments this counts as acknowledging the debt and will reset the 6 year statute barred clock, but the default will still drop off 6 years from the date it was added.

PixelPound

I suppose it depends on whether you can afford to pay it, without incurring new debt or not.

If you can and acknowledge it is your debt, the right thing is to pay it off. The default will fall off six years after it was put on, your credit file only reflects last six years of your financial history. This happens whether you pay in full, pay in installments, or don't pay anything.

Have you moved addresses from when you opened the Barclays account? Just because you have not received communications, does not mean they have not been sent, civil procedure rules state it is your responsibility to update creditors with address changes.

Is there a specific reason you are wanting to avoid paying - a dispute or insufficient disposable income to pay or simply wanting to avoid paying if you can get away with it?

You have 20 months before it falls off and things can change in regards to attempts to collect the debt, so what's the reason for your opening post, what's changed now for you to consider this 4 year old debt?