Debts will not be pursued… meaning?

Cheesephetamine

Can someone explain to me as if I was dumb the following?

I have two loans with NatWest that were both defaulted one in January 2020 and the other in June 2020. Both amount to nearly £15k. I was paying them via DMP. 

I wrote to NatWest to request them to consider writing them off due to health issues and today I got an email that says:

“ After careful consideration and in view of the documentation supplied, the Bank will no longer pursue the balances held on your NatWest accounts in your lifetime”

What happens to those two loans now? When will they disappear from my credit file if ever? Will they continue to affect me even if I don’t have to pay them? I assume I will never be welcomed as a costumer in NatWest…

Thanks 

sourcrates

Exactly what it says on the tin, it appears your request to have the debts written off was successful, the debts will not be pursued, and usually in these circumstances its likely the balances will be written off and the whole credit entry will be removed from your file, so they won`t affect you at all, and if that doesn't happen, then 6 years after the default date, they will fall off your credit file anyway.

Public information is held for 6 years, after which its deleted in the majority of cases, there is no such thing as a credit blacklist.

Cheesephetamine

Thanks. So it won’t be sold forward to a debt collector down the line I hope? I can forget about those two loans now?

Martico

Happy New Year 

Cheesephetamine

Martico said:

Happy New Year 

A very good finish to a horrendous 2022 for me. Happy new year to you too

SusieT

Cheesephetamine said:

Thanks. So it won’t be sold forward to a debt collector down the line I hope? I can forget about those two loans now?

Just make sure you keep that letter very very safely, and go forwards to 2023 without that millstone round your neck

Cheesephetamine

I am absolutely printing that email and starring it

sourcrates

Cheesephetamine said:

Thanks. So it won’t be sold forward to a debt collector down the line I hope? I can forget about those two loans now?

Well the bank has chosen quite unusual and specific wording -

"The Bank will no longer pursue the balances held on your NatWest accounts in your lifetime"

It doesn't actually say they won`t sell them on, but then again, it doesn't say they will either, so slightly ambiguous wording, but to my mind it has been written by someone who is not used to writing formal letters, and is unsure of the correct terminology to use.

I think you will be OK with this one, but as advised, keep the email very safe, just in case.

Cheesephetamine

The person who wrote the mail is par of the specialised support team. I don’t think they are the one that took the decision to not pursue the debt. It would be a bit… unfair imo to tell me this and go on to sell the debt as I have been “pardoned” due to poor health. I would understand if they wanted to sell if it was a financial decision only, but it wasn’t. I hope you know what I mean?

the email is starred AND printed

sourcrates

Cheesephetamine said:

The person who wrote the mail is par of the specialised support team. I don’t think they are the one that took the decision to not pursue the debt. It would be a bit… unfair imo to tell me this and go on to sell the debt as I have been “pardoned” due to poor health. I would understand if they wanted to sell if it was a financial decision only, but it wasn’t. I hope you know what I mean?

the email is starred AND printed

Completely understand where you are coming from, I have had similar success in getting debts written off on behalf of my brother, who for various reasons no longer retains capacity to make decisions on his own.

These days Banks usually stick to the banking code and FCA guidelines quite well, although it hasn`t always been the case.

Well done to you, I like to see the underdog win occasionally.

Cheesephetamine

Thank you so much. I have used this win as leverage to ask my last two debtors (EE and vanquis) to write off my last £3000. I don’t count on it and I am very grateful to start 2023 with “just” £3k in debts compared to where I started (£38k in 2019) so even if they say no, I still fell 200% lighter than I felt 2 days ago. Tbh since the beginning NatWest have been amazing dealing with me and my issues so I am eternally grateful to them.