We'd like to remind Forumites to please avoid political debate on the Forum... Read More »
We're aware that some users are experiencing technical issues which the team are working to resolve. See the Community Noticeboard for more info. Thank you for your patience.
📨 Have you signed up to the Forum's new Email Digest yet? Get a selection of trending threads sent straight to your inbox daily, weekly or monthly!
Defaulted after…. 5 YEARS?
Options

DisneyDarling
Posts: 1 Newbie

Applied for a mortgage through a broker, all going well until I’m told we have a payment which is in ‘unknown’ status on our file (this didn’t show up on 2 out of 3 reference agencies so we weren’t aware).
I contact the company to find it’s a debt of over £6K from 2020.
I know what it is (finance car, voluntarily ended) but company stated we were still liable for £6K despite returning.
I know what it is (finance car, voluntarily ended) but company stated we were still liable for £6K despite returning.
5 years have pass, we never heard a thing back from them. Assumed our complaint was successful and they closed the agreement.
Mortgage lender asked us to confirm the status of the loan so I called them this week. They confirmed the account was with ‘recoveries’ but it hadn’t defaulted etc. I agree a payment plan to pay it off, no worries.
Today I receive this letter in the post….
Is this allowed? Applying a default in retrospect for 5 years ago?
thanks!
thanks!
0
Comments
-
i think yes. It would be a problem if they reported a default with today's date but they are backdating it to March 2020 so it will drop off in March 2026.
I wouldn't be in a rush to repay it because if you haven't acknowledged the debt by payment or in writing since that date then it also becomes statute barred next March0 -
Isn't he a bit late for that - agreed a payment plan - suggests he acknowledged the debt.1
-
Depends. Was it done in writing? Was a payment made? You can't acknowledge verbally.
The op's grammar is more vague than yours - I agree a payment plan - so I don't know the answers to those questions0 -
What part of the UK are you in? If Scotland it is already statute barred.0
-
I wouldn't be in a rush to repay it because if you haven't acknowledged the debt by payment or in writing since that date then it also becomes statute barred next March0
Confirm your email address to Create Threads and Reply

Categories
- All Categories
- 351K Banking & Borrowing
- 253.1K Reduce Debt & Boost Income
- 453.6K Spending & Discounts
- 244K Work, Benefits & Business
- 598.9K Mortgages, Homes & Bills
- 176.9K Life & Family
- 257.3K Travel & Transport
- 1.5M Hobbies & Leisure
- 16.1K Discuss & Feedback
- 37.6K Read-Only Boards