an old debt

Chris_J

Hi, I hope someone can be of help, I ran up a debt with a pawn brokers going back to 2015 which I forgot about and it hasn't shown up on my credit file as a default up to now, I contacted this company a few weeks ago to arrange making payments, I have already made a first payment to them and since then I have read online that after 6 years it would be removed from my file.  Does anyone think that I would have been better to leave this debt to just run over the 6 year time period or by contacting them and making a payment have I reinstated the debt for another 6 years?

Thank you, Chris

[Deleted User]

If doesn't change the default date and therefore the removal from your files should it ever appear, but it has reset the enforceability.

sourcrates

Did the pawnbroker not take some kind of collatarol from you ?

Isn`t that how it usually works ?

Yes you have re-set the statute barred clock by making a payment, i don`t think pawn brokers report to credit files anyway, in days gone by an arrangment with a pawn broker was known as a "gentlemens agreement" or "private buisness" not for all and sundry to know about.

Chris_J

Hi again and thank you for responding to my query.   There was no collateral given they advertised that they also do loans, what would the implications be if I discontinued the payments now after already making the first one?

Chris

molerat

If you stopped paying now they could go for legal enforcement of the debt for up to 6 years from your last payment. If you had not paid anything then they would not have been able to enforce after 6 years from the last payment / default date, so likely would have been statute barred sometime in 2021, but that is now around 2026.

Chris_J

Thanks for your reply, the debt is £1025 would you have just let the 6 years run out and let it get statue barred or would you have paid it? I just dont want to feel I have threw £1025 away I'd like to think I'm benefiting in some way by paying it.

[Deleted User]

You're benefiting by not having to run and hide for another 6 years and by avoiding having anything applied to your credit files.

That's pretty good value for a grand.