Dealing with unenforceable debt

catgotmytongue

I have an unenforceable debt with Cabot that was originally with Aqua. In 2017 I entered into a DMP. Now I have had confirmation that the debt is unenforceable do I just stop paying it or make a low offer? The account was defaulted in 2017. Thanks.

Willing2Learn

Just checking you are accurate.    What makes you think the account is unenforceable?  (You can withhold payment for any unenforceable account.)

catgotmytongue

I did a CCA request and they wrote back saying they did not have the paperwork, the debt was unenforceable, however I should continue paying as it would adversely affect my credit rating otherwise. The account has been defaulted for 3 years.

Willing2Learn

The 'toxic' account will be automatically removed from your three credit files sometime during 2023.  You can either withhold any further payments or you could use the unenforceable angle as leverage to get an ultra low F&F offer.

Whether or not you pay is up to you.  Either way, it would not make any difference to your credit file, as the 'toxic' account will continue to be recorded for a few more years.

The DCA is telling you porkies!!!

catgotmytongue

Brilliant thanks. Can I also ask, I have an Argos account on my DMP, not defaulted, with a missed payment marker. It’s low enough for me to now pay this in full. Do I close the account or is it better to keep it open? I’ve read that it’s better to keep an account open for your credit file but the AP and missed payment markers would still show.

Willing2Learn

You do not want the Argos account to be marked with an 'AP', as the 'toxicity' will remain on your files for years longer than necessary.  I recommend you make a written complaint to Argos, stating that they should follow guidance and default the account once it was 3-6 months in arrears.  Maybe you could also use that as leverage to get the account defaulted as part of the terms of your account settlement.  Any offer you make should be in writing, clearly stating the terms of settlement.

catgotmytongue

I tried to get the account defaulted as you suggest but they refused. I will write to them and say that I will pay them in full if they do a backdated default but is there anything I can do if they refuse again?

Willing2Learn

Yes.  You escalate as a formal complaint.  If it is still not corrected then you would be within your rights to escalate to the ICO.

Like I said, I would make the marking of a backdated default, as part of the written offer you make...You could add your request on to the letter template linked below:
https://www.nationaldebtline.org/EW/sampleletters/Pages/Full-and-final-settlement-offers-%28sole-name%29.aspx

mbrealey

Any advice welcome, I am in a similar situation, with Cabot, they wrote to me saying debt is unenforceable back in February this year, but has since called and written in April requesting payment, do I respond stay they have fulfilled my request for a copy of CCA or just ignore it.
I also have 2 other debt totalling around £8500 with stepchange DMP which at  my current rate will take about 9 years to clear, what is the best way of me writing this off I have requested CCA and they have been proved, I have paid nearly 45% of the original debt off
 

Willing2Learn

For both you:
Although an account becomes unenforceable without a 'true copy' of your agreement, it does not stop you being liable.  Just means the creditor cannot seek enforcement through the courts.  A DCA is within their rights to send you an six-monthly or annual statement requesting payment.  This would obviously be ignored. 

catgotmytongue

I'll get onto it today thanks.