Debt Collection and a new mortgage.

SarahJ1973 · 14 August 2018 at 6:48PM

I have just been granted a formal mortgage offer. I thought I was debt free now. Many years ago, I feel sure it is more than six I did have some credit card debt which I thought was all paid off. So I was thrilled to get a mortgage offer.
However, today I received a letter from Cabot Financial telling me I owe £54.00 for Tesco Personal Finance and now I am terrified this will scupper my mortgage last minute. Do I phone them and pay this and hope it doesn't appear on my credit report (at the moment my report is clean), tell them the debt is statute barred or ignore it til my mortgage is all completed?

If anyone has any advice I would be really grateful

Willing2Learn · 14 August 2018 at 6:55PM

Hi,

If you are not sure if you owe the money, then you should ask for the evidence of the debt. You can find a template 'prove it' letter at the following thread:
https://forums.moneysavingexpert.com/showthread.php?t=2607247

If you have the debt, then it should be on your credit file with one the main three Credit Reference Agencies (CRAs). Have you looked at all three CRAs or only the one? With regard to your mortgage, only if it is on one of your credit files will you need to worry.

Craig1981 · 14 August 2018 at 6:57PM

quite possibly been written off/forgotton by tesco and sold on to Cabot.
i wouldnt ignore it. call them and make sure you agree with the debt first and foremost, and if so, pay it off.
£54 in the scheme of things isnt much to sort out

SarahJ1973 · 14 August 2018 at 7:04PM

I've only checked Equifax and there is no sign of it on there.
I am happy to pay it off, if I do owe it, I'm just worried if I acknowledge it then it will flag up if the mortgage provider do another search before my mortgage completes and it gets pulled out from under me. I honestly had no idea I still owed anyone any money.

Willing2Learn · 14 August 2018 at 7:10PM

Hello again,

You can check your Experian credit report for free via MSE Credit Club.
And you can check your CallCredit report for free via Noddle

Craig1981 · 14 August 2018 at 7:19PM

to give you some more peace of mind (again, this is my opinion only):
when i went onto an IVA, about 12 months in, the high street lender etc sold my debt, whilst under an IVA, to debt purchasing companies. took a couple of month to show on my reports, and then took a while to default

so i believe that this debt was recently purchased - confirm this with the company. this would mean a new debt - like taking out a new credit finance agreement. if ignored, then it could default.

i would defo speak to them direct - they are a legit debt purchasing company.
ask them:
1) when debt was purchased
2) what debt is for and how old
3) has this been defaulted as yet

hope this helps - someone will either confirm or correct my opinion

SarahJ1973 · 14 August 2018 at 7:41PM

Thank you for your replies everyone. I took the advice and phoned them. It was 7 years old so statute barred but I paid it anyway just to make it go away. The lady on the phone assured me that will be the end of the matter and it won't be flagging up on any searches on my credit file. I hope that's right!
Appreciate you all taking the time to give me advice.

[Deleted User] · 14 August 2018 at 7:53PM

It won!!!8217;t be on your files anyway if it!!!8217;s statute barred and over 6 years old

Debt Collection and a new mortgage.

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