Debt statute barred but won't leave my file for another year?

JessePinkman26

I contacted Hoist portfolio recently with regards to the default on my credit file from them. they said they need to allocate my account to their partners Robinson Way so I could set up a payment plan. Few days later Hoist called me to say that the debt is infact statute barred (5 years in Scotland) and will drop off my credit file next year along with the default. I thought I'd basically acknowledged this debt by getting in touch with them asking to set up a repayment plan so this would reset, unless it was already statute barred before I got in touch with them I guess?
This has kinda annoyed me as I'm working towards a mortgage and it's adding unnecessary time. I had planned to be looking at houses by the end of the year, but now i'll need to wait another full year until this default drops off before I can get a mortgage? Surely not? Can I not just pay them back the full amount so any mortgage lenders can see the debt is settled?

[Deleted User]

Surely not indeed.

The default will drop off after 6 years. If you settle the default, it will show as settled, which is to your obvious advantage.

JessePinkman26

Deleted_User said:

Surely not indeed.

The default will drop off after 6 years. If you settle the default, it will show as settled, which is to your obvious advantage.

Okay, so if the debt was already statute barred before I got in touch with them, am I still able to pay them, so I can get this marked as settled?

JessePinkman26

15/04/2015 is the default date on my file. I contacted them in June this year so that would make sense that it's already statute barred. So by end of April next year it'll drop off then. I guess another 4 months isn't the end of the world and I'll be able to save a bit more for a deposit.

Sandtree

JessePinkman26 said:

Deleted_User said:

Surely not indeed.

The default will drop off after 6 years. If you settle the default, it will show as settled, which is to your obvious advantage.

Okay, so if the debt was already statute barred before I got in touch with them, am I still able to pay them, so I can get this marked as settled?

You can still pay them, the debt doesn’t actually go because it’s statute barred just any way to make you pay disappears. Remember credit files can take a couple of months to update so if it’s worth paying it off when your no longer legally required is your decision 

sourcrates

Sandtree said:

JessePinkman26 said:

Deleted_User said:

Surely not indeed.

The default will drop off after 6 years. If you settle the default, it will show as settled, which is to your obvious advantage.

Okay, so if the debt was already statute barred before I got in touch with them, am I still able to pay them, so I can get this marked as settled?

You can still pay them, the debt doesn’t actually go because it’s statute barred just any way to make you pay disappears. Remember credit files can take a couple of months to update so if it’s worth paying it off when your no longer legally required is your decision 

Yes it does in Scotland, as the law is different, under the prescriptions and limitations act (Scotland)1973, the debt is extinguished in law, and no longer exist’s.
If you paid this debt, then Hoist could be forced to refund the money to you.

JessePinkman26

sourcrates said:

Sandtree said:

JessePinkman26 said:

Deleted_User said:

Surely not indeed.

The default will drop off after 6 years. If you settle the default, it will show as settled, which is to your obvious advantage.

Okay, so if the debt was already statute barred before I got in touch with them, am I still able to pay them, so I can get this marked as settled?

You can still pay them, the debt doesn’t actually go because it’s statute barred just any way to make you pay disappears. Remember credit files can take a couple of months to update so if it’s worth paying it off when your no longer legally required is your decision 

Yes it does in Scotland, as the law is different, under the prescriptions and limitations act (Scotland)1973, the debt is extinguished in law, and no longer exist’s.
If you paid this debt, then Hoist could be forced to refund the money to you.

Okay thanks. So if the debt no longer exists, in that case can Hoist not remove the default?

sourcrates

JessePinkman26 said:

sourcrates said:

Sandtree said:

JessePinkman26 said:

Deleted_User said:

Surely not indeed.

The default will drop off after 6 years. If you settle the default, it will show as settled, which is to your obvious advantage.

Okay, so if the debt was already statute barred before I got in touch with them, am I still able to pay them, so I can get this marked as settled?

You can still pay them, the debt doesn’t actually go because it’s statute barred just any way to make you pay disappears. Remember credit files can take a couple of months to update so if it’s worth paying it off when your no longer legally required is your decision 

Yes it does in Scotland, as the law is different, under the prescriptions and limitations act (Scotland)1973, the debt is extinguished in law, and no longer exist’s.
If you paid this debt, then Hoist could be forced to refund the money to you.

Okay thanks. So if the debt no longer exists, in that case can Hoist not remove the default?

Theoretically yes and no, under statute it should show for a period of 6 years, however, a gesture of goodwill on the part of Hoist could remove it, but what is in it for them ?

You could offer to pay the debt, in exchange for default removal, but under Scottish law it no longer exists, so putting them in a quandry, you can by all means try, its your money you`d be wasting.

maxximus75

If you paid the default, it would still show on your credit report as a default but paid.  The account payment history would also remain until the 6 year mark.

It will still cause you problems obtaining a mortgage.  You would probbly need to use a broker who deals with adverse credit and expect to not get as good rate.

Personally, I would wait until next year, if possible and apply with a clean slate.

Good luck!

JessePinkman26

I offered Hoist to pay the debt in exchange for removal of the default and they declined so it looks like I have to wait.