Regarding Credit File and Debt Management Default/Repayments

autoaftermart14

Dear All

"Happy New Year"

I hope this finds you well. I am writing to seek clarification regarding my credit file and the current status of two credit accounts that were defaulted and subsequently transferred to debt recovery agencies. Below are the details for your reference:

1. Barclaycard Credit Card (now with CABOT CREDIT MANAGEMENT GROUP LTD)

   • Default Date: 29/08/2019

2. Barclaycard Credit Card (now with PRA GROUP (UK) LIMITED)

   • Default Date: 29/08/2019

I have been making minimal payments to the debt recovery agencies for both accounts. However, 

I have the following questions regarding these debts:

1. Credit File Reporting Duration:
   How long will the names of the debt recovery agencies (CABOT CREDIT MANAGEMENT GROUP LTD and PRA GROUP (UK) LIMITED) remain on my credit file? The default date is over five years ago, and I would like to understand when this information will be removed.

2. Payment Obligation:
   As I continue to make minimal payments, which I estimate will take another three years to clear the debt, am I obligated to keep making these payments for the entire period even though the default may no longer appear on my credit file?

3. Next Steps or Alternatives:
   Are there any other options available to address or expedite the resolution of these debts, such as lump sum settlements or other arrangements?

I would appreciate it if you could provide guidance on these matters or direct me to the appropriate department or resources. Please let me know if you need any additional information to address my questions.

Thank you for your time and assistance. I look forward to your reply.

retiredbanker1

Assuming you are NOT living in Scotland.
1. Debts will show on your credit file for 6 years from date of default.

2. The debts are still showing on your credit files - there is nothing stopping you from not paying - it all depends on what you want the outcome to be in the future. Do you want to be able to get a mortgage, Loan Credit cards or even a phone contract? Having unsettled debts will hinder this.

3. Alternatives - you could ask the debt company if they will take a % of what is owed now in return for a full and final settlement - sometimes they will do this to get you off the books.

Nasqueron

2 - if you stop paying, they will happily take you to court for a CCJ if they feel it's worth it - the debt might disappear from your records in August next year but the debt is not barred as it's being acknowledged - a CCJ would then be on your record for another 6.

I'd simply keep paying and in August there will be no trace of the default ever existing per 6 year rule though the debt would still need to be disclosed to any lenders e.g. for a mortgage due to affordability reasons.

You could settle the debt which would mark it as settled, or offer a full and final payment to clear something, they may or may not agree - even if it's shown as partially settled it's only another 8 months