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Defaulted after…. 5 YEARS?

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Hi, really odd one. 

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. 

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!








Comments

  • fatbelly
    fatbelly Posts: 22,865 Forumite
    Part of the Furniture 10,000 Posts Name Dropper Cashback Cashier
    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 March
  • retiredbanker1
    retiredbanker1 Posts: 695 Forumite
    500 Posts First Anniversary Name Dropper
    Isn't he a bit late for that - agreed a payment plan - suggests he acknowledged the debt.
  • fatbelly
    fatbelly Posts: 22,865 Forumite
    Part of the Furniture 10,000 Posts Name Dropper Cashback Cashier
    edited 5 July at 9:36PM
    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 questions
  • Keep_pedalling
    Keep_pedalling Posts: 20,621 Forumite
    Tenth Anniversary 10,000 Posts Name Dropper Photogenic
    What part of the UK are you in? If Scotland it is already statute barred. 
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