Default is almost 6 years old

SDavies84

Hi,

I'm not sure if I've made a mistake! I am trying to sort out my debts and when logging on to Experian I saw there was a debt from NatWest credit card for £1400 that will be defaulted for 5 years in August. They haven't tried to recover the debt and I haven't heard from debt collectors or anything. I even forgot I had it as I heard nothing. I was feeling all sensible and grown up and called them to speak to them to try and arrange a payment plan (not set up yet) and now I'm wondering if I should have just kept quiet as it might drop off my credit file next year? Can anyone confirm if this is the case?! If I set up a payment plan for monthly installments, will this cause it to remain on my credit report?

PRAISETHESUN

There are two seperate 6 year clocks ticking down here - the 6 years the default is visible on your credit files, and the 6 year "statute barred" enforcement timer. The default will drop off your credit  files 6 years after the default date regardless of what you do. Just because it is not visible on your file doesn't mean the debt no longer exists, or that it cannot be enforced.

If you want the debt to be unenforceable it needs to become "statute barred". If you don't "acknowledge" it for 6 years, and there is no enforcement action (ie. the creditor going to court to get a CCJ) then that will happen. After it becomes statute barred then any attempt to enforce the debt in court will always fail, so although the debt still exists there is no way for the creditor to get their money back without you deciding to pay them. Talking to someone on the phone is fine, but if you acknowledge it in writing or make any payment towards it then you will reset the 6 year statute barred clock.

It's up to you if you start paying off the debt, or if you decide to wait and see what happens and hope that they don't start enforcement action.

SDavies84

PRAISETHESUN said:

There are two seperate 6 year clocks ticking down here - the 6 years the default is visible on your credit files, and the 6 year "statute barred" enforcement timer. The default will drop off your credit  files 6 years after the default date regardless of what you do. Just because it is not visible on your file doesn't mean the debt no longer exists, or that it cannot be enforced.

If you want the debt to be unenforceable it needs to become "statute barred". If you don't "acknowledge" it for 6 years, and there is no enforcement action (ie. the creditor going to court to get a CCJ) then that will happen. After it becomes statute barred then any attempt to enforce the debt in court will always fail, so although the debt still exists there is no way for the creditor to get their money back without you deciding to pay them. Talking to someone on the phone is fine, but if you acknowledge it in writing or make any payment towards it then you will reset the 6 year statute barred clock.

It's up to you if you start paying off the debt, or if you decide to wait and see what happens and hope that they don't start enforcement action.

Thank you for this, that's really helpful.

I feel like I've shot myself in the foot a bit by making contact!

Batesy1976

SDavies84 said:

PRAISETHESUN said:

There are two seperate 6 year clocks ticking down here - the 6 years the default is visible on your credit files, and the 6 year "statute barred" enforcement timer. The default will drop off your credit  files 6 years after the default date regardless of what you do. Just because it is not visible on your file doesn't mean the debt no longer exists, or that it cannot be enforced.

If you want the debt to be unenforceable it needs to become "statute barred". If you don't "acknowledge" it for 6 years, and there is no enforcement action (ie. the creditor going to court to get a CCJ) then that will happen. After it becomes statute barred then any attempt to enforce the debt in court will always fail, so although the debt still exists there is no way for the creditor to get their money back without you deciding to pay them. Talking to someone on the phone is fine, but if you acknowledge it in writing or make any payment towards it then you will reset the 6 year statute barred clock.

It's up to you if you start paying off the debt, or if you decide to wait and see what happens and hope that they don't start enforcement action.

Thank you for this, that's really helpful.

I feel like I've shot myself in the foot a bit by making contact!

You need to acknowledge the debt in writing to reset the clock.  A phone call won't do it.

But as you're intending on repaying it, it doesn't really matter.

sleepyjones

You need to acknowledge the debt in writing to reset the clock.  A phone call won't do it.

 Does that still apply if they have a recording of the call?, it's obviously "you" on the call because you'll have passed all the security checks.

sourcrates

sleepyjones said:

You need to acknowledge the debt in writing to reset the clock.  A phone call won't do it.

 Does that still apply if they have a recording of the call?, it's obviously "you" on the call because you'll have passed all the security checks.

The limitation act specifically states "written communication or a payment".

You can say what you like on the phone, it makes no difference.

goldieandblackie

After 5 years they will accept a greatly reduced payment if you want to pay it off in full or just wait another year before the CCJ becomes satisfied.

goldieandblackie

Sorry should have said after one more year it will become "statute barred".