Credit card application with a company I defaulted with

Jojo9786

Hi,
This post will make me sound incredibly stupid!
15 Years ago, I had got myself in debt with credit cards. Long story short, never repaid some and was advised at the time that after 6 years they would be statue barred and I could start to rebuild my credit. Which I have been doing for the past 15 years. Yesterday, I applied for a credit card with MBNA, but after submitting the application, I realised that i had defaulted with them nearly 15 years ago. They have accepted my application, however I want to cancel it.
Can they now chase me for the default 15 years ago? Will it be more damaging if i cancel the card?
I know this is incredibly stupid to forget who i defaulted with, but i did and now i am worried i have opened a can of worms.
Would they have records of my default? Help! I'm frazzled and have tried for many years to get myself in a better position and i feel i have ruined everything! 

magpies79

Well to definitely put your mind at ease credit file wise it’s long gone and will be with a debt collecting agency and not MBNA assuming you didn’t pay it off and if you haven’t made any payment in I believe it’s 6 years will be statute barred.

there is always talk of banks holding internal records of previous history on customers bad debt for how long and what it’s used for is anyone’s guess worst case for you is you’ll just get declined for the card you’ve applied for.

i can only talk on my personal experience I had a default and then a CCJ with a Halifax bank from a credit card and I’ve just opened a 0% for 27 months with Halifax and also have another credit card with them for my monthly spend so seems to be on with them 

JonVarnas

You're worrying about nothing IMO. I had a DRO a few years back where I had Capital One as a creditor. Just 3 years later they accepted me for a new credit card with them. I seriously doubt that MBNA will have records going back 15 years anyway, it seems overkill.

Nasqueron

They cannot just reactivate a statute barred debt.

They can keep their own internal blacklist as long as they want (and can justify within GDPR)

retiredbanker1

Fact; they will not be able to legally recover the debt from you after this time.

HOWEVER; The debt may not show up on your credit files but the lender may have its own list of people that they do not want as customers (and after 15 years I stress MAY not) and if so not only will they refuse you a new card but you will also have wasted a hard search.

maxximus75

TBH, I think you'll be fine. 

They certanly can't go after you for the old debt.

ladyV

I defaulted on a capital one credit card about 14 years ago and was scared to apply for another one in case they had retained these details.
I was pre-approved on one of the CRAs so thought this was the kind of thing they would pick up on and decline my application.
I got it with no problem. 

DullGreyGuy

maxximus75 said:

TBH, I think you'll be fine. 

They certanly can't go after you for the old debt.

Statuted barred simply means you can no longer to be taken to court for the matter, it doesn't legally expunge the debt like a bankruptcy would. 

It would naturally come down to the T&Cs but plenty of banks do have terms that say they can take money from other accounts you hold with them to settle debts you have with them. IF Cap1 had similar clauses why couldn't they divert monies the OP pays to repay the prior debt? 

Not saying they're going to but in principle.