How do debts work

palmk002

So my friend has about £5000 worth of debt. He was in IVAs twice but as he was on benefits could not sustain the repayments at £100 a month for 5 years.

One of the debts has disappeared off of his file, for £1648 which was with Lowell and the others with the same company are still showing.

Hes received no contact from Lowell for over a year not even an annual statement, but wants to look at getting this debt off his neck, and I am wondering whether they will offer a discount if he pays so much?

Ive checked many different credit report and this large sum isnt on any of them but is still showing the others with that company. When you log into Lowell directly it is however showing there.

The debt was originally with vodaphone whom claimed he used millions of gb of data (almost impossible in my opinion) back in 2012/13 when he hadnt and they refused to wipe the debt and so therefore it never got repaid. I believe theres a certain time period and then they can no longer chase a debt? The fact its dropped off his credit file suggests we might have hit that? So my question is do i offer to pay the other debts which are from a similar time period 2012/13/14 or do we leave it?

He is still on full rate benefits due to long term ill health.

[Deleted User]

palmk002 said:

 I believe theres a certain time period and then they can no longer chase a debt? The fact its dropped off his credit file suggests we might have hit that? 

You're confusing enforceability with credit file reporting.

It will be unenforceable if he hasn't acknowledged it in 6 years (5 in Scotland). Accounts fall off CRA files 6 years from default, but that in itself has no bearing on its enforceability.

PixelPound

If he made any payments towards the IVA, then assuming the debts were included then Lowell would have got some payment, even if pence, so the age of the debt does not matter, its the date the last payment made or the debt acknowledged.

palmk002

Thanks. I'll ring to see if they will offer a discount on a reasonable amount available at this point. Otherwise its a no go. 

[Deleted User]

Who advised your friend to enter into an IVA twice for such a low amount of debt and when he’s on a low income? On the face of it an IVA seems like a completely inappropriate debt solution for your friend’s circumstances. I recommend that your friend contacts a debt charity for advice before you go doing anything. The debt charities are CAP UK, National Debtline and Step Change. 

Alex9384

If I get it right, it means if you take out a loan in 2020 and don't pay back anything at all, after 2026 your credit files will look like you've never had any loan?