Repaying Debts and Credit Score

GP1983

Hello, 

Background:

I defaulted on a credit card and personal loan 7 years ago. Both outstanding amounts were passed to Debt Collection Agencies. 

I have two payment plans in place:

1. Credit Card debt (£6,200) - the debt defaulted on or around 01 May 2015. 
2. Loan (£11,000) - the debt defaulted on or around 01 September 2015. 

I am paying these off at £5 per loan (a total of £10 per month). I have been doing so for the last 3 years. 

Me:

I am British but I live in Europe. I am a Non-Resident.

I have a British bank account, and for admin purposes, I have mail sent to my parent's address in the UK. 

I'd like to clear Loan 1 and Loan 2 and both companies have accepted, in principle, a reduced offer to settle the account.

Question

Both debts defaulted over 6 years ago - do I have to pay these back? Are there any repercussions if I don't pay them back? For example, could the companies pursue me, or could this affect my credit score? 

I've checked my Credit Rating with Equifax, and neither amount appears anywhere on it. 
I've checked with ClearScore and it shows "No accounts in arrears."

Thank you!

MorningcoffeeIV

Yes, they can continue to pursue you. If you stopped paying today, they would have 6 years before it became statute barred. If they get a a CCJ, that will then be on your files for another 6 years.

Credit scores aren't a thing in the UK - it's the debts and the credit files you need to manage.

GP1983

MorningcoffeeIV said:

Yes, they can continue to pursue you. If you stopped paying today, they would have 6 years before it became statute barred. If they get a a CCJ, that will then be on your files for another 6 years.

Credit scores aren't a thing in the UK - it's the debts and the credit files you need to manage.

Thank you, Morningcoffee. 

sourcrates

No, if you live abroad there would be no repercussions whatsoever.

Consumer debt is not chased outside of the UK, it`s theoretically possible they may take legal action, but any CCJ would only affect your UK credit file, the credit accounts have long since dropped off your file and won`t come back.

Your credit file in your country of residence will not be affected at all.

GP1983

sourcrates said:

No, if you live abroad there would be no repercussions whatsoever.

Consumer debt is not chased outside of the UK, it`s theoretically possible they may take legal action, but any CCJ would only affect your UK credit file, the credit accounts have long since dropped off your file and won`t come back.

Your credit file in your country of residence will not be affected at all.

Thank you. I am still concerned about my UK credit file and would like to keep it in good stead. Correct me if I am wrong, but if the accounts have long since dropped off my credit file, they can't do anything that could affect my credit file (like register a default), right? 

Could they still attempt to get a CCJ? 

sourcrates

GP1983 said:

sourcrates said:

No, if you live abroad there would be no repercussions whatsoever.

Consumer debt is not chased outside of the UK, it`s theoretically possible they may take legal action, but any CCJ would only affect your UK credit file, the credit accounts have long since dropped off your file and won`t come back.

Your credit file in your country of residence will not be affected at all.

Thank you. I am still concerned about my UK credit file and would like to keep it in good stead. Correct me if I am wrong, but if the accounts have long since dropped off my credit file, they can't do anything that could affect my credit file (like register a default), right? 

Could they still attempt to get a CCJ? 

Once a default has gone, it`s gone for ever, but yes as I said, one or more of your creditors could take legal action for non-payment, as your debts are still live and payable.

So, if you want to keep a clean UK credit file, go with the settlement offers, as the entire entry has dropped off your file, the settlement won`t show on it.

GP1983

sourcrates said:

GP1983 said:

sourcrates said:

No, if you live abroad there would be no repercussions whatsoever.

Consumer debt is not chased outside of the UK, it`s theoretically possible they may take legal action, but any CCJ would only affect your UK credit file, the credit accounts have long since dropped off your file and won`t come back.

Your credit file in your country of residence will not be affected at all.

Thank you. I am still concerned about my UK credit file and would like to keep it in good stead. Correct me if I am wrong, but if the accounts have long since dropped off my credit file, they can't do anything that could affect my credit file (like register a default), right? 

Could they still attempt to get a CCJ? 

Once a default has gone, it`s gone for ever, but yes as I said, one or more of your creditors could take legal action for non-payment, as your debts are still live and payable.

So, if you want to keep a clean UK credit file, go with the settlement offers, as the entire entry has dropped off your file, the settlement won`t show on it.

Thank you very much for your help!