Query re: expired default

rchlwrd

I have a default which expired back in May after 6 years. I was on a payment plan for it but voluntary not CCJ etc. The original default doesn’t show on any of my credit files now. Once this expired it was my understanding I was under no obligation to repay any money as the time frame passed. I checked my account with Lowell Solicitors and it seemed to have disappeared as there was no case anymore…

Today I have received a letter from Overdale Solicitors as Lowell have passed the debt to them for the remaining outstanding balance of £1280.  The debt it from 2015. The default was in 2017. I paid £1640 towards it. 

Am I under obligation to pay this still?? Does the counter restart? We are looking to purchase a house in the coming few months after finally having the credit score to be able to do so, so I don’t want to get into trouble again and screw myself over for another 6 years 😩 the letter is very scary and gives me 30 days to respond or they’ll make a county court claim!! 

Any advice please 🙏🏻 

sourcrates

You are correct in that defaults show on credit files for 6 years, but the rest of your post confirms your knowledge on this subject isn`t all it could be.

You are mixing up defaults with the limitation act, and have ended up making a right mess for yourself.

Essentially the debt remains live and collectable, as you have been paying it on a regular basis, whether it shows on your credit file or not makes no difference to its enforceability whatsoever.

For a debt to be statute barred, which is what you appear to be referring to, there must be 6 years of non payment or written acknowledgement by the debtor, you have been paying the debt, so that does not apply here.

Your actions have now resulted in you receiving an LBA (letter before action) which you must respond too with your offer of payment, or else the mortgage you want, will be much harder and more expensive to obtain, with a CCJ on your credit file.

Which is what will happen if you don`t respond promptly.

fatbelly

You have received the standard pre-action letter and form. How to reply is set out here

https://debtcamel.co.uk/letter-before-claim-ccj/

rchlwrd

sourcrates said:

You are correct in that defaults show on credit files for 6 years, but the rest of your post confirms your knowledge on this subject isn`t all it could be.

You are mixing up defaults with the limitation act, and have ended up making a right mess for yourself.

Essentially the debt remains live and collectable, as you have been paying it on a regular basis, whether it shows on your credit file or not makes no difference to its enforceability whatsoever.

For a debt to be statute barred, which is what you appear to be referring to, there must be 6 years of non payment or written acknowledgement by the debtor, you have been paying the debt, so that does not apply here.

Your actions have now resulted in you receiving an LBA (letter before action) which you must respond too with your offer of payment, or else the mortgage you want, will be much harder and more expensive to obtain, with a CCJ on your credit file.

Which is what will happen if you don`t respond promptly.

Thankyou for your response! I was previously advised to make payment on the account by a debt advise agency… only paid £25 a month to keep them from chasing 🙈

I have the money to pay it off so will do so - I just wanted to check before I did as they could have been trying to pull a fast one. Mortgage is the most important thing to me right now so I don’t want to do *anything* that could risk that. We’ve waited 17 years to be in this position. 

Do I still need to return the form, or just make a payment online to them? 

sourcrates

As fatbelly points out, you must respond via the LBA now it has been sent.

Good luck with it.

rchlwrd

Thanks both. 

Out of interest, should there have been any communication prior to this LBA being sent. I’ve heard nothing in years - either from Lowell or this new company  (Overdale solicitors). Feel it’s a bit harsh to go straight to LBA letter, especially considering I was actually paying every single month. A little nudge to advise I needed to continue might have started our engagement in a better light?

fatbelly

The LBA is the letter they are required to send. They are not supposed to go straight to a court claim

sourcrates

Usually Lowell do send a forest of mail out prior to any LBA.

But occasionally they will just refer individual accounts for litigation, where something has happened causing payments to stop for an extended period of time, or if they are ignored completely, for example.

You are just one of the unlucky few chosen to be contacted by their legal arm (overdales).

Don`t take it personally, they work on a numbers basis to get results, just follow the instructions and you can sort this out.