How to settle debt

2

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  • National_Debtline
    National_Debtline Posts: 7,998
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    edited 15 March 2017 at 1:57PM
    izzibear wrote: »
    I hadn't realised that checking their enforceability was an option - I would have thought that since I've acknowledged the debts and am paying them, that means they remain enforceable and stops the 6-year limitation period from starting to run?

    Although I think I've read something about debts not being enforceable if the creditor can't produce a copy of the original credit agreement, so maybe that's worth checking.

    Keezing was talking about requesting the CCA credit agreement. If a copy can’t be supplied with the correct terms and conditions the debt is unenforceable, as you say.

    This factsheet goes into more detail on requesting credit agreements:
    www.nationaldebtline.org/EW/factsheets/Pages/getting-information/credit-agreement-advice.aspx

    James
    @natdebtline
    We work as money advisers for National Debtline and have specific permission from MSE to post to try to help those in debt. Read more information on National Debtline in MSE's Debt Problems: What to do and where to get help guide. If you find you're struggling with debt and need further help try our online advice tool My Money Steps
  • izzibear
    izzibear Posts: 12 Forumite
    So if they can't provide the credit agreement I just stop paying and ignore their letters? Seems harsh after they've all been so reasonable with me.

    Also will a request for the credit agreement put them on their guard and make them less inclined to agree to a settlement? Or maybe I'm making the whole thing too personal!
  • izzibear
    izzibear Posts: 12 Forumite
    Also, if they can't produce the agreements and I stop paying, would they have to take the debt off my credit record?
  • Keezing
    Keezing Posts: 322
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    edited 15 March 2017 at 3:45PM
    izzibear wrote: »
    Also, if they can't produce the agreements and I stop paying, would they have to take the debt off my credit record?

    No, it just means they can't [STRIKE]take you to[/STRIKE] enforce the debt at court, which means they can't send bailiffs etc.The debt will still be on your credit file for 6 years post-default and they'll still ask you to pay, they just have no way to make you.
  • National_Debtline
    National_Debtline Posts: 7,998
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    If they can’t provide a copy of the credit agreement with the correct terms and conditions it’s ultimately up to you whether you continue paying or not. If you want to repay the money that you owe then that’s fine. The point is that if the debt is unenforceable you have a lot more leverage when it comes to negotiating, especially if you want to make the settlement offers discussed earlier in the thread.

    James
    @natdebtline
    We work as money advisers for National Debtline and have specific permission from MSE to post to try to help those in debt. Read more information on National Debtline in MSE's Debt Problems: What to do and where to get help guide. If you find you're struggling with debt and need further help try our online advice tool My Money Steps
  • izzibear
    izzibear Posts: 12 Forumite
    "The debt will still be on your credit file for 6 years post-default and they'll still ask you to pay, they just have no way to make you."

    Is this 6 years from the first default or the last? ie if I settle will it be from the date of settlement or will it drop off my credit file 6 years from when I first defaulted?
  • National_Debtline
    National_Debtline Posts: 7,998
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    izzibear wrote: »
    "The debt will still be on your credit file for 6 years post-default and they'll still ask you to pay, they just have no way to make you."

    Is this 6 years from the first default or the last? ie if I settle will it be from the date of settlement or will it drop off my credit file 6 years from when I first defaulted?

    It will drop off 6 years after the first default date.

    James
    @natdebtline
    We work as money advisers for National Debtline and have specific permission from MSE to post to try to help those in debt. Read more information on National Debtline in MSE's Debt Problems: What to do and where to get help guide. If you find you're struggling with debt and need further help try our online advice tool My Money Steps
  • Keezing
    Keezing Posts: 322
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    izzibear wrote: »
    Is this 6 years from the first default or the last? ie if I settle will it be from the date of settlement or will it drop off my credit file 6 years from when I first defaulted?

    It's 6 years from the date that the original lender defaulted (i.e. terminated/cancelled/closed) the account.

    It's not 6-years from your first missed payment, which confusingly can also be referred to as a default.
  • izzibear
    izzibear Posts: 12 Forumite
    Thanks for all your advice on this a few weeks ago.

    I've now written to them all and asked for copies of the credit agreements. Only a couple of the creditors (out of a total 8) have sent them and the rest have said they are not the creditor but will ask their client for the agreement.

    They're all now well past the statutory time for responding but I don't feel I can stop paying and disclaim the debts as I've been making reduced payments for years now. So I've written to them in terms that I understand the debt is now unenforceable etc etc but that I am nevertheless in a position to make a reduced settlement offer (just to let them know that I know I'm in a stronger bargaining position).

    A couple of them have sent the dreaded income and expenditure forms for me to fill in, which I will do, but they've said they will only note my credit file as partially settled with a zero balance outstanding, and not as settled or satisfied.

    Should I accept that, or stick out for them updating my credit file with the debt as settled? I don't want this to drag on forever, but neither do I want to end up no better off in terms of my credit score.

    I'm assuming that their standard policy is only to offer settlement on those terms, so am I wasting my time arguing with them for a full settlement to be noted on my credit file?
  • sourcrates
    sourcrates Posts: 28,711
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    Don't do anything until you have had a response, and they have supplied compliant paperwork.
    I’m a Forum Ambassador and I support the Forum Team on the Debt free wannabe, Credit file and ratings, and Bankruptcy and living with it boards. If you need any help on these boards, do let me know. Please note that Ambassadors are not moderators. Any posts you spot in breach of the Forum Rules should be reported via the report button, or by emailing forumteam@moneysavingexpert.com. All views are my own and not the official line of MoneySavingExpert.For free non-judgemental debt advice, contact either Stepchange, National Debtline, or CitizensAdviceBureaux.Link to SOA Calculator- https://www.stoozing.com/soa.php The "provit letter" is here-https://forums.moneysavingexpert.com/discussion/2607247/letter-when-you-know-nothing-about-about-the-debt-aka-prove-it-letter
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