Unmanaged Debt

Chucky_chan · 29 April 2015 at 6:10PM

Hi All,

I have read through various forums regarding Statute barred debt and F&F settlements and cannot find an answer relevent to my situation, any help in clarifying this would be much appreciated.

My situation is as follows...

I moved back from university in 2008 and rented a flat alone and hadn't accounted for basic things like council tax and water bills and ended up living far beyond my means. During this time I acted irresponsibly by taking out a phone contract that I couldn't afford and using Next directory to furnish the flat. I also took out a payday loan. All of this was between 2008/2010 during which I defaulted on three accounts: Payday loan, mobile contract and Next directory. They have been long passed to DCA's

I have not acknowledged the debts since default around 2010 as some internet research told me that they will drop off of my credit report from the original default date this way (money still owing of course). I have moved address and am not on the electoral role, although I have access to my post from previous address and have had no CCJ's yet. I have since got my finances in order (aside from the above), have a well paid job and my wife has been accepted for a mortgage as a sole applicant so we can soon start a family.

My question is that I have just two years until the defaults drop off of my credit file and effectively become statute barred but I would like to pay the debts once the defaults are gone from my credit as I have no intention of scamming the companies that I took money from. I'm worried that if I make a payment after the 6 years that they will reappear on my credit file, reset the 6 year clock and prevent me from obtaining a joint mortgage/credit in the future. Is this true?

Thank you in advance for taking the time to read this.

Chucky

sourcrates · 29 April 2015 at 6:14PM

Chucky_chan wrote: »

My question is that I have a just two years until the defaults drop off of my credit file and effectively become statute barred but I would like to pay the debts once the defaults are gone from my credit as I have no intention of scamming the companies that I took money from. I'm worried that if I make a payment after the 6 years that they will reappear on my credit file and prevent me from obtaining a joint mortgage/credit in the future.

Thank you in advance for taking the time to read this.

Chucky

Hi,

So why wait until they drop off your file to pay them ?

Can you afford to pay them now, in full ?

If you did so, they would be marked as settled, the accounts would be closed, and they would still drop off your file in 2 years.

Paying the account after the default drops off, does not make sense to me, sorry.

Cant see your problem really !!!

Chucky_chan · 29 April 2015 at 6:40PM

Hi Sourcrates,

Thank you for your response.

This is where I'm confused, different sources give different answers. If the defaults are not reset to six years from today I would happily pay them but I don't want to take that risk until I'm 100% sure, I would also need to wait a few months as we've saved a large sum for our house so cannot dip into that but I could easily cover the debts with one months salary.

I will also add that if it was the case that after they drop off my credit report I was to make a payment they would reappear; although it is against my principles I would rather not pay than spend another six years in a situation where I'm unable to obtain credit and ultimately limit us as a family in terms of housing.

Do you have any links to any official articles that confirm this?

Tixy · 29 April 2015 at 6:46PM

Default dates on your credit file are never allowed to be changed/ reset. The credit account/default wont reappear after it has dropped off your file 6 years after the default date on file.

The only thing that could appear / stay on your file longer is if they take court action against you, obtain a CCJ against you and you don't pay the judgement balance in full within a month of the judgement date (make sure you are getting any post they may send to the previous address in a timely manner).

The 6 year time frame for when a debt becomes statute barred is reset every time you make a payment or acknowledge the debt.

Chucky_chan · 29 April 2015 at 6:50PM

Thanks Tixy, so it seems as though I have been reading innacurate info.

I noticed that a DCA has added a default since the original mobile contract default at a more recent date. If I pay the DCA will it show the original default as settled or the recent DCA one, which I've had no contact with?

Tixy · 29 April 2015 at 6:53PM

Chucky_chan wrote: »

Thanks Tixy, so it seems as though I have been reading innacurate info.

I noticed that a DCA has added a default since the original mobile contract default at a more recent date. If I pay the DCA will it show the original default as settled or the recent DCA one, which I've had no contact with?

You can challenge them on this and insist they correct their entry to the correct date.

Does this contract appear on your credit file twice? If so is the first entry from the phone company marked to show it has been assigned to a CAIS member?

Chucky_chan · 29 April 2015 at 7:20PM

Tixy wrote: »

You can challenge them on this and insist they correct their entry to the correct date.

Does this contract appear on your credit file twice? If so is the first entry from the phone company marked to show it has been assigned to a CAIS member?

I've just logged in to Experian and the original default has now gone and just the DCA entry is there.
It has 2009 as the default date, I'm not sure when it actually was but it was around that time so it doesn't have any further negative impact.

Chucky_chan · 29 April 2015 at 7:42PM

For peace of mind, does anyone have a link to an official source that can confirm the above info or put me in the direction of a person to speak with? I would love to settle these accounts and stop the daily phone calls from various numbers and the general self loathing that accompanies being in debt.

Thanks again for your help.

sourcrates · 29 April 2015 at 7:45PM

Chucky_chan wrote: »

For peace of mind, does anyone have a link to an official source that can confirm the above info or put me in the direction of a person to speak with? I would love to settle these accounts and stop the daily phone calls from various numbers and the general self loathing that accompanies being in debt.

Thanks again for your help.

https://www.nationaldebtline.org

Tixy · 29 April 2015 at 8:42PM

Anything you have read on resetting dates would relate to the limitation act and when a debt becomes statute barred, not to the entries on your credit file (or has written by someone who is confused about the 2).

As sourcrates suggests you could speak to national debtline, or to one of the credit reference agencies if you want further confirmation.

fatbelly · 29 April 2015 at 9:11PM

http://www.experian.co.uk/consumer/questions/credit-and-debt.html

You can 'ask James' a question on that site too

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