Cabot new entry on credit file

Wheeley991

Hello!

I have recently been contacted by Cabot Financial who are chasing an old loan that had defaulted almost 6 years ago. The 6 year cool off is set to expire in a few months. They were sending letters and immediately calling me every single day so I contacted them to ask them to prove the debt just to get them off my back for the short term and I did not acknowledge the debt. 

I checked my credit file this week and there is a new entry in the file for a debt owed to Cabot. The one with the original lender is still on there but shows as defaulted, unlike the new one with Cabot.

As the original lender told me years ago that they wouldn't chase further, I had mostly forgetting about this and lately I had hoped that this would be removed for good later this year as I am approaching the 6yr cut off. I've been working really hard in the last 2 years to improve my credit worthiness since I've been planning to get a mortgage in the near future..

Are Cabot allowed to add a new ongoing loan into my credit file like this even though it had already defaulted years ago? And in any case, would it stick on my file for another 6 years if I acknowledge and repay the debt? Alternatively what are the implications for my credit file if I were to ignore them and not pay it?

If anyone could share some advice or similar experiences it would be much appreciated

Thanks

fatbelly

They can put an entry on your file but the default date should be carried over to the new entry.

How long is it to the 6-year point of the default?

Have you ever acknowledged the debt by payment or in writing since the default?

It is going to be an easier argument if you are past the 6-year point and you can answer no to that second question

Wheeley991

fatbelly said:

They can put an entry on your file but the default date should be carried over to the new entry.

How long is it to the 6-year point of the default?

Have you ever acknowledged the debt by payment or in writing since the default?

It should be in June this year and no nothing was acknowledged. It still feels like a lengthy time to hold out. Of course I can ignore calls and letters but I have no idea how long it would take for them to apply for court proceedings for a CCJ

fatbelly said:

It is going to be an easier argument if you are past the 6-year point and you can answer no to that second question

So you're saying both entries should be removed from the file in June if it is fully paid off?

fatbelly

No I'm saying both entries should be removed in June whether you pay or not if it is six years past the default. If the new one isn't then you point them at the guidance and tell Cabot to remove it.

As a separate matter, the debt is due to become statute barred in June. Before they start a court claim they would have to send a preaction letter with 30-day reply time and standard form.

If you receive one of those you do have to respond. They don't take everyone through the court process, you know.