Default on file - advice/feedback please

T0502

I defaulted on an unsecured loan in Jan 2020 & it was sold out to a debt collection company called 'Interum' in Feb 2020. Since then, I've been paying as much as I can afford each month, alongside extra amounts as & when I can afford to. The default's due to come off my file in Jan 2026 and we're expecting to have the balance settled in Jan 2029 at the current rate we're paying (I understand it'll still come off my file in 2026 & we'll in effect continue paying 'behind the scenes' if you will')

A couple of Qs...

1. Does anyone have any experience with/of 'Interum' - without jinxing anything, they've so far given me no hassle whatsoever; they've never even asked for proof of income or monthly budget. I set my monthly amounts/change them whenever I like and they don't add any interest or charges. Is this true of debt collection companies who have bought out a default? It seems too good to be true, am I in for a shock later down the line?

2. What are the chances of them registering a CCJ against our house? How likely/unlikely is it? Is there a time when it's likely to kick them into action; I'm wondering around yr6 if there's still a hefty outstanding balance?

3. We have a mortgage and a Help to Buy loan ('H2B'). We've been unable to move provider or remortgage to include the H2B ever since I defaulted; as we expected. The issue now is that our mortgage broker is being told by lenders that I'll only be considered/have other options 6 years AFTER the default has ended (So Jan 2026 + 6 years = Jan 2032?!) I've always been under the impression my lendability would change after year 6 when the default drops off my file (So Jan 2026). Which is correct?

Any feedback and/or clarification is appreciated

T x

[Deleted User]

1. Pretty standard. You're making regular payments and they can't add interest.

2.Unlikely, for the above reason.

3. Neither. You'll have options as the default gets older, even before it drops off. Think of it as a continual journey of improvement. Just use a decent broker. The default dropping off will have a big impact, but settling it will be major improvement.

GentleGiant01

Depending on circumstances, there are lenders who will take you with a 2 year old default, depending on equity ETC. i would speak to a whole of market broker who specialises in adverse credit. It may cost you in interest rates but I assume you’re being hammered with SVR anyway! 

[Deleted User]

If it's truly an independent debt collector they would have bought the debt for pennies in the pound so they will make a profit so long as you keep paying

A CCJ would only need to be used if they felt you would stop paying but given you have acknowledged the debt they have plenty of time

sourcrates

Intrum are a European debt purchasing company, with there base in Stockholm.

They pride themselves on their ethics, apparently.

They cannot charge you interest or any other fee, as your debt has defaulted, and the agreement you signed won`t allow charges of any kind, once that happens.

CCJ `s are registered against an individual, or a company, never an address, and as long as you continue making payments, there is no reason for the matter to escalate.

As for the Mortgage, as others have pointed out, using a good broker is how most people manage to get what they are after.

T0502

Thanks everyone for the replies, it’s put my mind at ease. 

Our brokers come back to us with some more info today & thankfully a few options are available now so we’re going to weigh everything up & see what’s best. 

Thanks for your help!