Credit file after 6 years - conflicting info
d_rok69
Posts: 63 Forumite
Can anyone shed some light on this as everything i thought i knew about credit seems to be untrue. (and because i know laws can be different i will state i live in Scotland)
So i had a Capital One card and through a series of troubles in my personal life and leaving an abusive relationship the card went into default and i was unable to pay. In March this default had been on my credit record for 6 years and it dropped off my file.
A few weeks ago someone talked to me about PPI and how they got a lot of money back on missold PPI so i thought what the hell i will give it a bash i dont know much about it but no harm in finding out (i know i was deffo missold when i was younger companies such as RBS would just add this into products)
Capital One came back to me and said they didnt think i was missold but i was due money back on commission they made from selling PPI which was £110 and they have applied it to my account.
I called Capital One and said what do you mean you applied it to my account the account was closed, defaulted and the debt sold to a collection agency and its now dropped off my file. They lady said the account wasn't closed and the money has been applied to my account.
I called the financial ombudsman who explained the account maybe open not that its an active account i can spend but open in the sense that the company have an outstanding debt and they have to recover this money.
Again i said the account was closed and the debt sold and she told me that just because its dropped off my credit record the company still want to try and recover the money and could still pursue me for the out standing balance.
This about the PPI the money was only £110 but my understanding was after 6 years the debt was wiped so im a bit confused and worried.
So i had a Capital One card and through a series of troubles in my personal life and leaving an abusive relationship the card went into default and i was unable to pay. In March this default had been on my credit record for 6 years and it dropped off my file.
A few weeks ago someone talked to me about PPI and how they got a lot of money back on missold PPI so i thought what the hell i will give it a bash i dont know much about it but no harm in finding out (i know i was deffo missold when i was younger companies such as RBS would just add this into products)
Capital One came back to me and said they didnt think i was missold but i was due money back on commission they made from selling PPI which was £110 and they have applied it to my account.
I called Capital One and said what do you mean you applied it to my account the account was closed, defaulted and the debt sold to a collection agency and its now dropped off my file. They lady said the account wasn't closed and the money has been applied to my account.
I called the financial ombudsman who explained the account maybe open not that its an active account i can spend but open in the sense that the company have an outstanding debt and they have to recover this money.
Again i said the account was closed and the debt sold and she told me that just because its dropped off my credit record the company still want to try and recover the money and could still pursue me for the out standing balance.
This about the PPI the money was only £110 but my understanding was after 6 years the debt was wiped so im a bit confused and worried.
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Comments
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my understanding was after 6 years the debt was wiped so im a bit confused and worried.
Only if this is the time you have not acknowledged the debt in.
If you have been paying it you have acknowledged it.
Yes the default falls off after 6 years but they can apply for a CCJ as the debt is not dead.
You are getting you 6 years mixed up.0 -
No I hadn't paid or acknowledged the debt in 6 years.
So they could still apply for a CCJ against me?0 -
After 6 years of not acknowledging or paying the debt it becomes statute barred.
This means that the company cannot enforce the debt by means of getting a CCJ - it doesn't mean you no longer owe the money.
You can however write to them and tell them it's statute barred and to stop harassing you were they to start chasing again.0 -
Ahh just seen the Scotland thing!
So it would be 5 years and the debt is non existant.
The difference being in the England even if it is statute barred you still owe the money and as such they will take PPI towards the debt until it is payed off.
In Scotland since the debt is written off they cannot do this. Did you tell whoever you spoke to you were in Scotland and the implications of this. Even a Scottish call centre would probably assume you were not. espeicially if taking about 6 years.
You are probably good to claim it then but you will probably have a fight to get them to understand.0 -
No I hadn't paid or acknowledged the debt in 6 years.
So they could still apply for a CCJ against me?
The 6 years thing is about THEM chasing YOU about it. However, YOU contacted THEM in this case, so they have done nothing wrong and they can take the proceeds of your PPI claim to pay down the debt you owe them. What could be more worrying is if this contact about PPI is interpreted as you acknowledging the debt still exists, as you have made a payment towards it within the last six years now.(Although I could be wrong, I often am.)0 -
The 6 years thing is about THEM chasing YOU about it. However, YOU contacted THEM in this case, so they have done nothing wrong and they can take the proceeds of your PPI claim to pay down the debt you owe them. What could be more worrying is if this contact about PPI is interpreted as you acknowledging the debt still exists, as you have made a payment towards it within the last six years now.
As I said the second time, not in Scotland. 5 years and the debt is no more.
Assuming OP lived in Scotland at the time the debt was taken out too.0 -
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