Catalogue Debts, Very, Next, Littlewoods

ChloeEliz1988

Hi, 
A few years ago I was very silly, and I took out many catalogue accounts to pay for basic clothing/household item for myself and my children.  I feel embarrassed about it, but I’m in a better financial position and am much more informed on finances! 

I’m hoping to get a mortgage in the next few years. 

My question is now I have 3 defaulted accounts with; 
Next- £2400
Very- £900 
Littlewoods- £340

I haven't paid anything towards them and haven’t received any letters regarding the debt for years. If I try and log onto my accounts there’s no informations/Statements etc.... it’s like I’ve been wiped away. 

They are showing on my credit file as defaulted but are due to drop off next year as it’s been 6 years. 

Do I wait and pay nothing? 

Do I ring and set up a payment plan? ( I do think it was irresponsible lending as my limit jumped from £150 to £3750 in a few months and I had no income, so will try and challenge some of the interest/late charges if I go down this route)

I really just need some non-judgmental advice. 

Thank you! 

[Deleted User]

It doesn't sound like irresponsible lending. Just that you overspent beyond your ability or desire to repay.

You can ignore them and hope they go statute barred without a CCJ or repay them.  If you choose not to repay make sure they have your current address so you can clear a CCJ within 30 days.

macman

So the default dates are all in 2015?
Any letters will have gone to your last known address-have you moved since 2015, and if so did you inform your creditors? They are not obliged to track you down, they simply use the last address on file, which makes service of any paperwork legally valid.

ChloeEliz1988

Hi, 
No, I haven’t moved so they still have my current address. Just all seems to have gone quiet. 

ChloeEliz1988

Deleted_User said:

It doesn't sound like irresponsible lending. Just that you overspent beyond your ability or desire to repay.

You can ignore them and hope they go statute barred without a CCJ or repay them.  If you choose not to repay make sure they have your current address so you can clear a CCJ within 30 days.

Hi, 

Thanks for reply. What happens if it they go Statuette Barred? 

Do you think I won’t have a case for irresponsible lending even though they increased credit limits when I didn’t have a job, I was studying and was on a placement, I was buying basic items such as school uniforms. I couldn’t make minimum payments, they had gone up to £200 a month, at one point they wanted me to pay £700 a month! 

Thanks 

maxximus75

I would leave them and see what happens?  If they go beyond the 6 years from date of default then they become statute bared as mentioned whereas legally, the can't claim the debt from you and they will fall off your credit reports.

If you hear from them in the mean time, you can deal with it at that point.

[Deleted User]

ChloeEliz1988 said:

Do you think I won’t have a case for irresponsible lending even though they increased credit limits when I didn’t have a job, I was studying and was on a placement, I was buying basic items such as school uniforms. I couldn’t make minimum payments, they had gone up to £200 a month, at one point they wanted me to pay £700 a month! 

As an existing customer, they won't reconfirm employment status with you.

The increases are based on your account conduct with them.  They're optional, so you can decline them if you don't want them and also not you them if you do accept them.

The minimum payments went up because you'd increased your balance so much.

Fighter1986

The debts are considered statute barred six years from the default date or last admission of responsibility for the debts - 

e.g. if you make a payment towards any of the accounts, they'll still drop off your credit file six years from the original default date, but they won't become statute barred until six years have passed from the date you last made a payment towards them.

Once six years have passed since the default date and six years since the last payment was made towards the accounts, they're legally unenforcable - they can't obtain a court order against you for the debt.

Until that date arrives though, they can take you to court and obtain a CCJ to enable further debt collection activities e.g. reposession or salary garnish.

If you're taken to court over the debts before they're statute barred, the court order won't appear on your creidt file so long as it is settled in full within 30 days of the order.

sourcrates

The companies you mention don`t normally hold on to bad debt very long, its likely they may have been sold on pretty quickly after default.

Lowell, Cabot, and Arrow Global are three of the largest buyers of catalogue debts in the UK, now your accounts may have gone to one of them, or another purchaser entirely, however, its very unusual for them not to write to you informing you of the sale, and even more unusual not to have received letters and phone calls demanding payment.

Are the debts still listed under the original creditors on your credit file, or something else ?

fatbelly

The phrase 'let sleeping dogs lie' comes to mind

ChloeEliz1988

sourcrates said:

The companies you mention don`t normally hold on to bad debt very long, its likely they may have been sold on pretty quickly after default.

Lowell, Cabot, and Arrow Global are three of the largest buyers of catalogue debts in the UK, now your accounts may have gone to one of them, or another purchaser entirely, however, its very unusual for them not to write to you informing you of the sale, and even more unusual not to have received letters and phone calls demanding payment.

Are the debts still listed under the original creditors on your credit file, or something else ?

Hi, 
Yes, they are all under the original creditors on my credit file.