Advice about a defaulted account on credit file

Unicorn78 · 3 December 2012 at 8:51PM

I have a defaulted credit card account dating back to 08/11/2007, that is now with C L Finance. I have been paying £15 monthly for approx 3 years and the balance is at £2305. My understanding is defaulted accounts are removed from your credit file after 6 years meaning in Nov 2013 it should be removed from my file? If this is correct my question is: are CL Finance likely to approach me shortly and demand full payment as the time approaches for it to be removed from my file? to make one last attempt to get the debt repaid in full? As I don't have that amount of cash to pay in full but really do not want to end up in court as I've tried so hard to improve my credit rating over recent years. Is it wise to approach them at this point to make a full and final offer at a reduced rate to avoid court? Any advice would be gratefully received. Thank you

CAB_Swansea_Bay_representative · 5 December 2012 at 11:59AM

Hi Unicorn78, thank you for your query regarding defaulted account
The creditor can ask you for an update on your financial situation but they cannot make you pay it in full if you are unable to just because it is an old debt but the fact that it is about to fall off your credit report does not mean that you no longer owe the money and the creditor could still take you to court to recovery the debt if they choose. I would suggest you just keep making the payments and if they ask for a review then you should submit a detailed income and expenditure with an offer of repayment. You can find out more information about negotiating with creditors and template letters etc at www.adviceguide.org.uk
Hope this is of assistance

Advice about a defaulted account on credit file

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