Multiple Defaults Need Advice

stupidmistakess

Hi all, 
I am a long time reader and first time poster in need of some advice desperately.
When I was young and a student I made some pretty stupid mistakes and ended up burying my head in the sand rather than try to deal with the problem.

Recently I have been trying to sort my problems out as I do want to get a mortgage eventually and I have 4 loans on my account (3 of which are defaulted).

1) First one is a Barclaycard Credit Card for circa £5k which defaulted in Jan 2017 (for some weird reason it is showing as Jan 18 in Credit Kama/Noodle whereas Experian and Equifax are showing Jan 2017) and the last payment I made towards it was around July 2015. I have not acknowledged the loan in any way so I believe it is statute barred but however I recently received a letter from Barclaycard regarding that they made errors in raising my credit limit when they shouldn't have and they offered a £75 inconvenience fee and sent a form which i signed and sent back.
Does that mean the loan is not statute barred anymore?
 On the letter itself there was no mention of the recognition of the loan, just my bank details for the inconvenience payment.

2) Barclays Career Development Loan for circa £8k which defaulted in Jan 2018. The last payment I made towards that or made any recognition of it was around November 2016. 

3) Future Finance Loan for circa £12k which defaulted in Jan 2019. This loan has been causing me the most issue as until recently I did not know it was in default as I had come to an agreement with the debt management company the loan was given to for a payment of around £25 per month.
The debt recently went back to Future Finance who got in touch with me to redo an I&E form before the debt gets sold to another debt management company and I am suffering from severe anxiety and sleepless nights over this issue. 
Should I continue to make the payments or stop as the debt will never get statute barred if I keep making the payments? 

4)  Lloyds loan of £10k originally most of which is paid off now with only £2k left and 2 late payments in 2018.
This loan will be paid off in full in 9 months. 

For info if applicable, I work in Investment Banking with a salary of around £35k and I got this job before I defaulted on any of my loans. I am scared to go for another higher paying role even internally as my adverse credit conditions might be found out due to a background check and will end up jobless due to my bad credit history hence any IVA or Debt Management Plans are out of the question.

My question is, will I ever be able to get a mortgage with such a terrible credit history? 
I have no CCJ's on my file but what are the chances of any of these loan providers applying for a CCJ against me ?
If it comes to it, I can borrow money from family to pay off my loans but this is not really a route I want to go down.
I am stuck and banging my head against the wall and have no idea what to do. 

[Deleted User]

Are you in Scotland? If not, the debt won't be statute barred until 6 years from the last payment, so a little time to go yet on the first one. Accepting the compensation won't change that either way.

For the sums involved, if you stop paying, I would expect CCJs to follow.  They will be on your files for a further 6 years. I'd try to avoid those if you can.

DCFC79

Is any mention of the BC card on your 3 credit files ?
Re 3 if you stop the payments FF could send you letters wanting payment etc. 

You will be able to get a mortgage but in time.

stupidmistakess

Deleted_User said:

Are you in Scotland? If not, the debt won't be statute barred until 6 years from the last payment, so a little time to go yet on the first one. Accepting the compensation won't change that either way.

For the sums involved, if you stop paying, I would expect CCJs to follow.  They will be on your files for a further 6 years. I'd try to avoid those if you can.

Thanks.
And are CCJ's extremely likely?
I can try save up for a bit to circumvent the CCJ's if they do come and offer a full & final settlement or maybe borrow money from my family.
If a notice for a CCJ arrives, can you settle it with the company before going to court?

 

stupidmistakess

DCFC79 said:

Is any mention of the BC card on your 3 credit files ?
Re 3 if you stop the payments FF could send you letters wanting payment etc. 

You will be able to get a mortgage but in time.

Yes the BC card is on all 3 credit files, but FF is not on Experian.
But the BC has an incorrect default date of Jan 2018 on Credit Karma/Noodle which I believe get their data from Transunion
For FF, if I keep making the payments of £25 they will resell it to another debt management company unless I fill out an I&E form with them

sourcrates

Can i just point out for clarity, that they are not "Debt Management Companies", they are "Debt Purchasing Companies", there is a big difference in what each one does.

Its pretty common practice for bad debts to be sold on, as the original creditor has neither the time nor the resources to manage such accounts, a payment deemed insufficiant by the original creditor will be gladly accepted by the DPC, they are much more flexible in there approach to collections than the OC was.

With regard to court action, that is decided on a case by case basis, and will not normally happen at all if you have an agreed payment plan in place, its usually a last resort, not a first responce.

There is also a pre-action legal process to go through before court action can be taken, this is referred to as the "pre-action protocol- civil procedure rules" so you would have plenty of time and opportunity to stop the matter ever progressing as far as a court room.

stupidmistakess

sourcrates said:

Can i just point out for clarity, that they are not "Debt Management Companies", they are "Debt Purchasing Companies", there is a big difference in what each one does.

Its pretty common practice for bad debts to be sold on, as the original creditor has neither the time nor the resources to manage such accounts, a payment deemed insufficiant by the original creditor will be gladly accepted by the DPC, they are much more flexible in there approach to collections than the OC was.

With regard to court action, that is decided on a case by case basis, and will not normally happen at all if you have an agreed payment plan in place, its usually a last resort, not a first responce.

There is also a pre-action legal process to go through before court action can be taken, this is referred to as the "pre-action protocol- civil procedure rules" so you would have plenty of time and opportunity to stop the matter ever progressing as far as a court room.

Thank you for this, it is a big help and thanks for the clarification between Debt Management Companies vs Debt Purchasing Companies.
In the meantime, what would you advise in terms of doing to minimise the impact on my credit report so I can maybe get a mortgage in 2 years time?

sourcrates

You would need a good broker in order to obtain a mortgage, but you would also struggle with so much debt still showing on your file, you would also need to ask yourself if a mortgage was truly affordable to you, the repercussions at worst, for defaulting on a loan, is a CCJ.

If you default on your mortgage, then your out on the street, so careful thought and planning will be required here.

stupidmistakess

sourcrates said:

You would need a good broker in order to obtain a mortgage, but you would also struggle with so much debt still showing on your file, you would also need to ask yourself if a mortgage was truly affordable to you, the repercussions at worst, for defaulting on a loan, is a CCJ.

If you default on your mortgage, then your out on the street, so careful thought and planning will be required here.

Thanks for the advice, will definitely have a think about it

Yahoo_Mail

Nobody seems to be mentioning your job, which is frankly the most important aspect of all this.

I'd be getting out my contract of employment and or/employee handbook pronto.  They'll almost certainly be allowed to credit check you at any time (not just for a role change) and there are likely to be obligations to report this sort of adverse account conduct to them.  You might get away with ignoring it, but if they find out and you've kept it quiet, I suspect you can kiss goodbye to your job.

At the very least I'd be looking to make repayment arrangements on these debts rather than crossing my fingers for them to go statute-barred.  At least then if they find out you can show you've been trying to do the right thing.  Right now your conduct reflects rather poorly on you.

DCFC79

stupidmistakess said:

sourcrates said:

Can i just point out for clarity, that they are not "Debt Management Companies", they are "Debt Purchasing Companies", there is a big difference in what each one does.

Its pretty common practice for bad debts to be sold on, as the original creditor has neither the time nor the resources to manage such accounts, a payment deemed insufficiant by the original creditor will be gladly accepted by the DPC, they are much more flexible in there approach to collections than the OC was.

With regard to court action, that is decided on a case by case basis, and will not normally happen at all if you have an agreed payment plan in place, its usually a last resort, not a first responce.

There is also a pre-action legal process to go through before court action can be taken, this is referred to as the "pre-action protocol- civil procedure rules" so you would have plenty of time and opportunity to stop the matter ever progressing as far as a court room.

Thank you for this, it is a big help and thanks for the clarification between Debt Management Companies vs Debt Purchasing Companies.
In the meantime, what would you advise in terms of doing to minimise the impact on my credit report so I can maybe get a mortgage in 2 years time?

Why a mortgage in 2 years time ?
The BC should fall off July next year, Id be putting as much as you can towards FF and CDL, the less there is on the debts the more favourable you look to mortgage lenders.