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Old Debt - Settlement

StevieJ
StevieJ Posts: 20,174 Forumite
Part of the Furniture 10,000 Posts Combo Breaker
edited 22 November 2023 at 11:47AM in Credit file & ratings
If an old debt does not appear on a credit file, does this mean it was originally defaulted, and dropped off file after six years. The reason I am asking is that friend has been on a DMP since around 2004 paying nominal payments. They now want to settle the debt but the debt company states that the debt will reappear on the file as partially/fully satisfied. Obviously she is confused how paying off a debt fully or partially will damage her current credit record. She can't remember if she originally received a default notice. Grateful for any help.
'Just think for a moment what a prospect that is. A single market without barriers visible or invisible giving you direct and unhindered access to the purchasing power of over 300 million of the worlds wealthiest and most prosperous people' Margaret Thatcher

Comments

  • Nasqueron
    Nasqueron Posts: 10,943 Forumite
    Part of the Furniture 10,000 Posts Photogenic Name Dropper
    If the debt was defaulted more than 6 years ago and has gone from all 3 CRAs, they cannot put it back on the file

    If it is still reported on one or more of the agencies then it would be updated

    Sam Vimes' Boots Theory of Socioeconomic Unfairness: 

    People are rich because they spend less money. A poor man buys $10 boots that last a season or two before he's walking in wet shoes and has to buy another pair. A rich man buys $50 boots that are made better and give him 10 years of dry feet. The poor man has spent $100 over those 10 years and still has wet feet.

  • StevieJ
    StevieJ Posts: 20,174 Forumite
    Part of the Furniture 10,000 Posts Combo Breaker
    I suppose the question is: 'If a debt is not reported by any of the three agencies, does that mean it was definitely defaulted'?
    'Just think for a moment what a prospect that is. A single market without barriers visible or invisible giving you direct and unhindered access to the purchasing power of over 300 million of the worlds wealthiest and most prosperous people' Margaret Thatcher
  • Nasqueron
    Nasqueron Posts: 10,943 Forumite
    Part of the Furniture 10,000 Posts Photogenic Name Dropper
    edited 22 November 2023 at 12:26PM
    If it's not reported it will have been defaulted and removed per the CRA / ICO rules 

    Chances are the lender sold the debt on and marked it as settled and the buyer hasn't marked it since. They cannot put it back on again no assuming it's definitely not on any of them, the original default date in 2004 time cannot be reset to a new one.

    Sam Vimes' Boots Theory of Socioeconomic Unfairness: 

    People are rich because they spend less money. A poor man buys $10 boots that last a season or two before he's walking in wet shoes and has to buy another pair. A rich man buys $50 boots that are made better and give him 10 years of dry feet. The poor man has spent $100 over those 10 years and still has wet feet.

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