Wescot Token Payments

Maggio

Hi All,

Just after a bit of advice. I have an old credit card with Barclaycard which had a balance of £14,000 on. I have defaulted on this for 3 years now. In the beginning, I spoke to Barclays about it and over time, Wescot have taken over to manage on behalf of Barclays.

In fairness to Wescot, the have never hassled me and set up a £1 token payment in the beginning which I have paid each month. I’ve pretty much been paying this every month for around 2 years now and I never hear anything from anyone about it.

The debt has defaulted on my credit account for 3 years now and I just wondered what the likely scenario is going forward? Will it stay on my credit account forever as long as I keep paying the £1 each month? There’s no interest being accumulated as that was frozen in the beginning.

sourcrates

Hi,

It will vanish from your credit file on or around the 6th anniversary of the default date, the debt however, will still be owed, and as your making only token payments, won`t be going away, or become statute barred, anytime soon.

Going forward, Barclays may decide they will never re-coup this debt and write it off, they may sell it to another company, they may just continue accepting token payments, its anyones guess.

Should the debt be sold, which is the most likely senario, can you try to save up a lump sum to offer in full and final settlement ?

Maggio

Thanks for the response. I am trying that and currently have around £1,500 but with COVID it’s unlikely I’ll get much more in the near future.

sourcrates

Is that your only debt ?

Do you rent or are you a homeowner, would you say you were on a low wage ?

Maggio

No it’s not my only debt. I have another similar debt with PRA which has been deemed unenforceable and I’ve not paid anything towards that for 3 years now.

I also have another card with £4,000 on. Wage is probably average. Not bad but not great. I’m a homeowner so have bills associated to that which, thankfully, are up to date.

sourcrates

Maggio said:

No it’s not my only debt. I have another similar debt with PRA which has been deemed unenforceable and I’ve not paid anything towards that for 3 years now.

I also have another card with £4,000 on. Wage is probably average. Not bad but not great. I’m a homeowner so have bills associated to that which, thankfully, are up to date.

Ok, then the token route and possible future settlement option looks like its your only stratagy at present.

The older a debt gets the more keen creditors will be to do settlement deals.