Debt has finally caught up with me

andy26599

Great thanks. It's taken First Direct almost 8 months to default me, but that's also now dropped off my report. Time to start paying the piper now. 

sourcrates

MummyDN said:

This has been an insightful thread. How does defaulting affect you in terms of re-mortgaging?

Re-mortgaging with your existing lender does not normally require a credit check.

If you went with another lender, a good broker would be required, you may not get the best rates, but you should still be able to get a deal of sorts.

fatbelly

MummyDN said:

This has been an insightful thread. How does defaulting affect you in terms of remortgaging?

And in 6 years' time you will have a clean credit file. This would not happen if your file was marked with arrangements to pay

MummyDN

Thank you sourcrates & fatbelly! 

Grumpelstiltskin

CCJs for normal credit debt are rare,  so don't worry about them.

6 year period? What exactly are you meaning? There is the 6 year statute barred where if you haven't paid anything towards the debt for 6 years it becomes statute barred.

If you have problems and worries I suggest you start your own thread then we can give you the best advice.

andy26599

So I'm about a year into my self managed DMP now. I've paid off about £8k of my total so far.

I had 3 updraft loans, one of which was never sent to a debt collection agency, I've been paying the other 2, but I've heard nothing about the other one since I started to not pay in April 2024 so I've just left that one to itself for now.

I have been paying ACI for the 2 updraft ones that were sent to them, however I have received an email from ACI this week to state that Updraft are "no longer instructed by Updraft to manage this account" and that all correspondence should be with them from now on.This is only for one of the two accounts ACI manage?

Any idea what that's about? I've got a direct debit to ACI due out tomorrow so will that still go out? Do I cancel my direct debit and get in touch with Updraft?

andy26599

Also, this 3rd Updraft account has never been reported to any credit agency, the other 2 are marked as "Perch" on my credit file. The third is actually still showing as active on Updraft account (which I've just downloaded for the first time in 2 years, it's never defaulted and it's just seemingly racking up monthly letter charges every month (even though I don't receive them other than in the app which I've not used for 2 years) and the original debt of £7k borrowing has gone up to £18,104.77 😂My credit score shows no missed payments since 2024 when I stopped paying all my debts and defaulted.

Should I engage with Updraft on this matter or just hope they don't do anything for another 4 years and forget about it?

Also, this 3rd Updraft account was (in my opinion) irresponsibly lent, if they do come back at me how do I go about questioning this? I only made 3 payments before it all got too much for me, I had 2 other accounts with them and a number of credit cards and other loans at the time.

ManyWays

With three loans, an affordability complaint about all three sounds like a good idea.
The chance of Updraft letting a loan go statute barred is not good; you should not expect this to happen.

andy26599

https://forums.moneysavingexpert.com/discussion/comment/81901777#Comment_81901777

I'm not, but nor am I going to call them about it and reset the 6 year clock. If/When they do get in contact, surely I can request them to back date the default to when it should've been defaulted right? They've had nothing since April 2024. I don't want them putting a default in myfile 2 years after it should've been?

What does an affordability complaint get me if it's upheld?

RAS

No-one knows exactly as results aren't fully consistent, but they may well deny in the first instance, at which point you go to the Commissioner.

Read up on the process on the Debt Camel website.

In some cases the creditor ceases to report to CRAs. Quite often all interest and charges are returned, or applied to the debt. In some cases where the debt had been paid for years, 4 figure payments were returned to the debtor.