Any advice, knowledge or experience of a loan application triggering an old credit card debt?

timetosortthings

I am self-employed and due to the lockdown situation everyone is experiencing/facing at the moment the only help applicable to me seems to be via the bounce back loan scheme. On exploring this avenue I’d only be entitled and need the minimum amount available £2k with the aim then being in paying it back within 12 months to avoid interest being incurred.  (As I’m really done with the whole debt thing)

However, I’m cautious of even applying through my business bank because the business bank and a Credit Card debt I have, are, although different entities, they are with the same banking group.

Credit Card Debt: I have a long-term 10K credit card debt which should be becoming statute-barred either within the next 2/3 months if going from the last time I made a payment (in 2014) against the debt, or 15 months if having to use the date when the credit card company wrongly allocated my £1 for a CCA request against the debt on the credit card, which at the time I did complain about but the credit card ignored the matter by never getting back to me.

My question is:

Does anyone have any advice, knowledge or experience in knowing if it is feasible or possible that if I applied for a bounce-back loan through the business bank and was or wasn’t successful, that this would somehow rekindle the credit cards company’s interest (being part of the same banking group) in now actively pursuing the credit card debt, despite me not hearing anything from them for well over 5-years (nearly 6-years), other than receiving monthly credit card statements.

Although my aim would be to clear the loan back within 12-months, for the continuance of improvement to my credit file (as all defaults have cleared a number of years back). I wouldn’t wish that in doing this, it somehow signals to either the Credit Card Company or Banking Group that I can now make payments against the credit debt because I couldn’t.

Any advice, knowledge or experience greatly appreciated.

 

Best Regards

ryanm8655

Not sure about an application triggering an old debt but I’d have thought if they wanted to find you they could quite easily.

Hopefully others will be able to help
more but here is a reply taken from a similar thread:

sourcrates said:

No they can’t, and you should have lodged an official written complaint, and pursued it to the financial ombudsman if necessary, it’s too late now, you only have 6 months, however, your debt is now unenforceable as they never responded to you.

Fatsdom

Just popping into say Sourcrats specialises in this area, and should be along with advice soon.

Good luck in your debt free journey 

sourcrates

Hi,

Bounce back loans are available from a number of different lenders, and its their decision wether to lend to you or not, even though the loan is backed 100% by the UK Governement, so maybe you could try a different lender ?.

You may find that although these companies are a part of the same banking group, they do not always talk to each other, or have systems that raise a red flag within that group, if certain clients re-apply for credit, especially as most folk are currently still working from home, i think what you are saying is a posibility, but is unlikely to happen.

timetosortthings

Hi
Just a quick post to thank you for your help and assistance