Old Debt and Credit File?

Briarman

A Credit Card was defaulted (i.e. I started to offer less than the statutory payment) back in 2014. I have made regular payments since then directly to the Credit Card company. They have now sold it on to a DCA. 

I am happy to shift the payments to the DCA or make an offer to settle, but, as I am concerned that they may register it as a new debt? I understand that they cannot register it as a new default though as it was defaulted 9 years ago, and I have yet to make a payment to the DCA so its impossible for them to claim I have defaulted with them.

Shall I just contact them and make payments to them without fear of anything appearing on my credit files, as there is nothing there now?

Hope that makes sense?

MorningcoffeeIV

It won't be registered as a new debt and if it was, you would simply dispute it.

Briarman

MorningcoffeeIV said:

It won't be registered as a new debt and if it was, you would simply dispute it.

Thank you, so before I decide whether to make a settlement offer, I would be confident to just assent to them wanting me to make payments to them? 

sourcrates

I`d make a CCA request first, make them work for their ounce of flesh.

As its a 9+ year old account, there is a good chance they won`t be able to comply. 

Then you`d get a cracking deal wouldn`t you.

Briarman

I think they would, as its only recently been passed to them from the Credit Card company. I am trying to establish if anything will appear on my current credit file if I do contact them to arrange to pay either by instalments or to offer a settlement? Thank you. 

sourcrates

It should not re-appear on credit files, if it did, you would ask for it to be removed due to data limitation expiry.

No paperwork changes hands on the sale of a debt you know, if it still exists, it is always retained by the original creditor, every debt sold in the UK is done so on the understanding it may very well be unenforceable due to lack of statutory paperwork.

It`s all one big gamble, they play a numbers game so that hopefully the ones that are enforceable pay for those that are not.

Briarman

sourcrates said:

It should not re-appear on credit files, if it did, you would ask for it to be removed due to data limitation expiry.

Thank you, though would that still apply given that I have made consistently regular payments from the inception f the Default? I know it won't be Statute Barred, but I suspect there is a limitation of some description given the 'Default' was nearly 10 years ago, and it dropped off my Credit Files in 2019.  

MorningcoffeeIV

You'd still owe the debt but it won't reappear on your files.

What is this 'limitation' you're thinking of?

sourcrates

You are confusing yourself with snippets of incorrect information.

Defaulted debts stay on your credit file for 6 years, regardless of what else happens in the meantime, and are then automatically removed.

Nothing you or anyone else can do will bring that account back again.

If a balance is still owing, and you were still making payments, then it will still be collectable, but nothing will show on your credit file any longer, with regard to that account.

You can`t describe a default as having a limitation period, its more of a statutory timeframe of 6 years.

The Limitation act is only applicable if there have been 6 years without payment or written acknowledgement, and the only thing that binds defaults and the limitation act together, is the fact the date of default is currently deemed to be the cause of action date for court claims, the date the clock starts ticking on the limitation period, this is different to the 6 years a default will show on file, one has nothing to do with the other except what has already been stated.

Briarman

sourcrates said:

Defaulted debts stay on your credit file for 6 years, regardless of what else happens in the meantime, and are then automatically removed.

Nothing you or anyone else can do will bring that account back again.

If a balance is still owing, and you were still making payments, then it will still be collectable, but nothing will show on your credit file any longer, with regard to that account.

Perfect....thats what I was after - thanks!