Paying Moorcroft Debt Recovery

Beardy123

Hello all,
I defaulted on some credit cards and a loan because the minimum payments became unaffordable. I’ve chosen to manage the situation myself and don’t wish to engage with StepChange or similar organisations. My aim is simply for each default to drop off my credit report after six years and not have any repayment plans lingering on it until debts are clear.

I’ve now received my first letter from Moorcroft Debt Recovery in relation to a Tesco credit card. This default is already showing on my credit report.

I called Moorcroft, and they told me they haven’t bought the debt; they’re just managing it on behalf of Tesco. The person I spoke with asked for income details etc, which I politely declined to provide. I explained that I’d worked out what I could afford and would be making payments of £5 per month.

I took down the account number, sort code and reference to start these payments. She said that she had noted this plan and that payments would be made monthly after payday, by the 7th of each month. If not received then I would be contacted.

My question is: have I now unintentionally entered into a formal repayment plan?

I don’t want this to linger on my credit file beyond the standard six years from the default date; I just want it to drop off with nothing else showing.

I genuinely thought I was doing the right thing. Any advice would be much appreciated.

RAS

If the default has been issued, the debt is removed from your credit record in 6 years, even if you never pay another penny.

This isn't a formal payment plan and the Moorcroft staffer was making it up. You'll be setting up a SO and can reduce or increase the amount as you wish. 

No guarantee that Moorcroft won't write if you don't pay sometime, none that they won't write asking for more either.

The regular payments mean the debt doesn't become statute barred.

allystar

I have a Tesco CC, defaulted a few months ago (I have letter of default and it shows defaulted in my Credit file). I haven’t paid anything to it since November, so holding off to see if it gets passed over or sold, then I’ll consider paying a very small amount.

im in Scotland, so the debt will fall off after 5 years (I think), so biding my time on this and a couple others that I still need to hear from .

sourcrates

allystar said:

I have a Tesco CC, defaulted a few months ago (I have letter of default and it shows defaulted in my Credit file). I haven’t paid anything to it since November, so holding off to see if it gets passed over or sold, then I’ll consider paying a very small amount.

im in Scotland, so the debt will fall off after 5 years (I think), so biding my time on this and a couple others that I still need to hear from .

No, its 6 years it`ll be on your credit file.

The 5 years refers to the limitation period in Scotland, not the length of time an account will show on your file for.

allystar

So, is the 5 years the point they can no longer pursue the debt? 

ManyWays

If you are making payments such as your proposed £5 a month, the debt will never become statute barred, in Scotland or in England. 

sourcrates

Only debts have have not been paid or acknowledged in writing will go statute barred in England and Wales after 6 years, or become prescribed in Scotland after 5 years.