Unenforceable debt and a mortgage application

summerb64

Hello, 

Hoping someone will be able to give me the answer, I am back in the process of applying for a mortgage, the house I was trying to purchase a few months back was taken off the market. 

I had a debt from a credit card with something around £4000 remaining, it was sold to Pra debt purchasers, I done the cca request a year ago and they said the debt is unenforceable. I haven’t made any payment to this debt for 18 months. Last time I applied for a mortgage I just made sure to avoid the original lender (Barclaycard). 

I still occasionally get letters asking for payment but they cannot enforce it so I just ignore them. Should I have to declare this to a broker? Last time I didn’t tell the broker but just told him to avoid Barclays. But I am using another broker and it just crossed my mind whether there is a point telling him/her about this or whether it just confuses things for no reason?

Keep_pedalling

If you made a payment 18 months ago it would not be time barred so are you sure it’s not enforceable?

summerb64

Keep_pedalling said:

If you made a payment 18 months ago it would not be time barred so are you sure it’s not enforceable?

Hello, I think you’re mixing up statue barred and unenforceable agreements due to lack of cca 

dunstonh

Should I have to declare this to a broker? Last time I didn’t tell the broker but just told him to avoid Barclays

Unenforceable debts that are not repaid due to a CCA issue are actually a stronger red flag to lenders.  It can show manipulation of the system has been used to get out of paying a debt.    Not the sort of character that a lender is looking for.

Just because the debt is unenforceable, does not mean the debt has gone away.  It should still appear on their credit searches and it should show that is it in arrears or defaulted.

chanz4

Can see it been hard to get a mortgage with that debt showing defaulted on your report, agree with the above your high risk

summerb64

dunstonh said:

Should I have to declare this to a broker? Last time I didn’t tell the broker but just told him to avoid Barclays

Unenforceable debts that are not repaid due to a CCA issue are actually a stronger red flag to lenders.  It can show manipulation of the system has been used to get out of paying a debt.    Not the sort of character that a lender is looking for.

Just because the debt is unenforceable, does not mean the debt has gone away.  It should still appear on their credit searches and it should show that is it in arrears or defaulted.

chanz4 said:

Can see it been hard to get a mortgage with that debt showing defaulted on your report, agree with the above your high risk

Hi,

I think you both don’t understand… the account no longer shows on any credit reports as the 6 years for a default have elapsed. So nothing shows on searches, otherwise credit reference agencies wouldn’t be adhering to the data protection act 😃…

unless it was with the original provider who the default was with via their own internal records - which obviously I wouldn’t apply to. 

chanz4

summerb64 said:

dunstonh said:

Should I have to declare this to a broker? Last time I didn’t tell the broker but just told him to avoid Barclays

Unenforceable debts that are not repaid due to a CCA issue are actually a stronger red flag to lenders.  It can show manipulation of the system has been used to get out of paying a debt.    Not the sort of character that a lender is looking for.

Just because the debt is unenforceable, does not mean the debt has gone away.  It should still appear on their credit searches and it should show that is it in arrears or defaulted.

chanz4 said:

Can see it been hard to get a mortgage with that debt showing defaulted on your report, agree with the above your high risk

Hi,

I think you both don’t understand… the account no longer shows on any credit reports as the 6 years for a default have elapsed. So nothing shows on searches, otherwise credit reference agencies wouldn’t be adhering to the data protection act 😃…

unless it was with the original provider who the default was with via their own internal records - which obviously I wouldn’t apply to. 

be easier then, but if you get asked have you ever defaulted on an agreement the answer would be yes

Annisele

summerb64 said:

Should I have to declare this to a broker? Last time I didn’t tell the broker but just told him to avoid Barclays. But I am using another broker and it just crossed my mind whether there is a point telling him/her about this or whether it just confuses things for no reason?

I don't see any point at all in avoiding disclosing information to a broker. The broker isn't the lender, and it's the broker's job to choose the best lender for your circumstances. It's hard for them to do that if they don't have all the information.

If you just tell them "avoid Barclays", then they won't know if that's because you have an irrational hatred of Barclays' CEO, if you know that the property you're buying falls foul of Barclays' lending criteria, or if there's some other reason. I see no reason to make the poor broker work with their hands behind their back!

JMA74

Comment above is correct.  Disclose to the broker who can then avoid a declined application. 

If you answer the 'have you ever....' question dishonestly then you can find yourself blacklisted if they find out and suspect intentional misrepresentation 

We get told all sorts and it's our job to use that information to match you to the right lender.

summerb64

Annisele said:

summerb64 said:

Should I have to declare this to a broker? Last time I didn’t tell the broker but just told him to avoid Barclays. But I am using another broker and it just crossed my mind whether there is a point telling him/her about this or whether it just confuses things for no reason?

I don't see any point at all in avoiding disclosing information to a broker. The broker isn't the lender, and it's the broker's job to choose the best lender for your circumstances. It's hard for them to do that if they don't have all the information.

If you just tell them "avoid Barclays", then they won't know if that's because you have an irrational hatred of Barclays' CEO, if you know that the property you're buying falls foul of Barclays' lending criteria, or if there's some other reason. I see no reason to make the poor broker work with their hands behind their back!

JMA74 said:

Comment above is correct.  Disclose to the broker who can then avoid a declined application. 

If you answer the 'have you ever....' question dishonestly then you can find yourself blacklisted if they find out and suspect intentional misrepresentation 

We get told all sorts and it's our job to use that information to match you to the right lender.

Didn’t think of it this way, thank you both for the insight. I suppose I was trying to avoid an awkward situation because it’s a friend of the family but that’s not worth jeprodisring the mortgage. 

Do you get many people who have had defaults in the past over 6 years ago who disclose them and those that don’t? 

fatbelly

summerb64 said:

Hello, 

Hoping someone will be able to give me the answer, I am back in the process of applying for a mortgage, the house I was trying to purchase a few months back was taken off the market. 

I had a debt from a credit card with something around £4000 remaining, it was sold to Pra debt purchasers, I done the cca request a year ago and they said the debt is unenforceable. I haven’t made any payment to this debt for 18 months. Last time I applied for a mortgage I just made sure to avoid the original lender (Barclaycard). 

I still occasionally get letters asking for payment but they cannot enforce it so I just ignore them. Should I have to declare this to a broker? Last time I didn’t tell the broker but just told him to avoid Barclays. But I am using another broker and it just crossed my mind whether there is a point telling him/her about this or whether it just confuses things for no reason?

Provided it's over six years since the default it won't be on any credit record. As PRA have agreed it's unenforceable, that one is gone.

The only people who might still have a record of it are pra and the original lender- who probably has it marked as settled