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  • FIRST POST
    • jcharlieB770
    • By jcharlieB770 5th Jan 18, 10:32 PM
    • 8Posts
    • 0Thanks
    jcharlieB770
    Is it worth settling a default account, when it expires in 6 months?
    • #1
    • 5th Jan 18, 10:32 PM
    Is it worth settling a default account, when it expires in 6 months? 5th Jan 18 at 10:32 PM
    Hello, after a misspent youth I finally have the means to clear my bad credit after recently selling a London property and downsizing to kent with the misses getting a mortgage on her own (lucky to have a misses with good credit!)
    I would like to be in a position to borrow to help finish the renovations required later this year. and more importantly for a remortgage after our 2 yr fixed.

    I've cleared all immediate debt this month following the sale, and have one last default on my file. Its from Aug 2012 for 597

    My question is, is it worth contacting the company to settle it, when it will drop off after aug this year? It was a payday loan (embarrassed face)

    Presumably I'd get a decent discount, but is it even worth say 300?
    Would it then change to settled? And even settled would it then still drop off all together in aug? i.e is there any long term benefit settling it now, or only benefit until aug.

    Thanks for any advice
Page 1
    • jcharlieB770
    • By jcharlieB770 5th Jan 18, 10:34 PM
    • 8 Posts
    • 0 Thanks
    jcharlieB770
    • #2
    • 5th Jan 18, 10:34 PM
    • #2
    • 5th Jan 18, 10:34 PM
    Also - Is there any danger in contacting the company to ask for a settlement figure? i.e. if I choose to wait, will they then start hassling me/ sell the debt/ somehow extend the date at which it drops off
    • sourcrates
    • By sourcrates 5th Jan 18, 10:47 PM
    • 14,368 Posts
    • 13,554 Thanks
    sourcrates
    • #3
    • 5th Jan 18, 10:47 PM
    • #3
    • 5th Jan 18, 10:47 PM
    Have you not been contacted about this debt ?

    If you have not paid or acknowledged it in writing for a period of 6 years, it will become statute barred.

    Don!!!8217;t do anything to acknowledge this, wait and see what happens.
    I'm a Board Guide on the Debt-Free Wannabe, Credit File And Ratings, and
    Bankruptcy And Living With It, boards. "I volunteer to help get your forum questions answered and keep the forum running smoothly".
    Board guides are not moderators and don't read every post. If you spot an abusive or illegal post then please report it to forumteam@moneysavingexpert.com. Any views are mine and not the official line of MoneySavingExpert.com.

    For free debt advice, contact either : Stepchange, National Debtline, or, CAB.
    For Free Legal advice see : http://legalbeagles.info/
    • Gary_Dexter
    • By Gary_Dexter 5th Jan 18, 11:46 PM
    • 1,332 Posts
    • 774 Thanks
    Gary_Dexter
    • #4
    • 5th Jan 18, 11:46 PM
    • #4
    • 5th Jan 18, 11:46 PM
    7 months technically

    Depends as above - making a settlement offer means you're acknowledging the debt and they could then slap you with a CCJ...
    • redux
    • By redux 6th Jan 18, 2:18 AM
    • 18,242 Posts
    • 24,133 Thanks
    redux
    • #5
    • 6th Jan 18, 2:18 AM
    • #5
    • 6th Jan 18, 2:18 AM
    Does the company know your new address? Once in a while, someone posts here to ask advice when a CCJ has been recently obtained against them at an old address, so they may have not been able to respond in time. Are the new owners at your old place forwarding all the post?

    Whether you settle it or don't, it drops off credit files at 6 years anyway. Unless a CCJ happens before that, and lasts another 6.

    In your situation, if you're not confident about redirected mail, and for that fairly modest amount, I'd be tempted to contact them to settle it anyway. An offer of 33 or 40% might work.
    Last edited by redux; 06-01-2018 at 2:32 AM.
    • luvsmoothies
    • By luvsmoothies 6th Jan 18, 9:46 AM
    • 528 Posts
    • 349 Thanks
    luvsmoothies
    • #6
    • 6th Jan 18, 9:46 AM
    • #6
    • 6th Jan 18, 9:46 AM
    my motto has always been, 'If they're not bothering you, don't bother them'. Leave it be.
    • nic_c
    • By nic_c 6th Jan 18, 2:37 PM
    • 1,531 Posts
    • 840 Thanks
    nic_c
    • #7
    • 6th Jan 18, 2:37 PM
    • #7
    • 6th Jan 18, 2:37 PM
    my motto has always been, 'If they're not bothering you, don't bother them'. Leave it be.
    Originally posted by luvsmoothies
    But CCJ's can be served to the last known address, so that isn't always the best policy. Companies can buy almost stat barred debt for pennies, send letters and then start legal proceedings. It depends how confident the OP has of being aware of any letters getting sent to previous addresses.

    Is the debt still on CRA report as original creditor or has it been purchased and registered under a DCA?
    • nic_c
    • By nic_c 6th Jan 18, 3:10 PM
    • 1,531 Posts
    • 840 Thanks
    nic_c
    • #8
    • 6th Jan 18, 3:10 PM
    • #8
    • 6th Jan 18, 3:10 PM
    Also - Is there any danger in contacting the company to ask for a settlement figure? i.e. if I choose to wait, will they then start hassling me/ sell the debt/ somehow extend the date at which it drops off
    Originally posted by jcharlieB770
    If you ask for a settlement figure, then that can be seen as an admission of debt, so resets the 6-years for terms of statute barred. It will drop off whether you admit the debt or they sell the debt etc. The question is whether six years passes since you last paid anything or contacted them regarding it so whether they can demand you pay or take legal action.

    If you are in a position to pay then doing so removes the potential CCJ, as said above, they won't suddenly apply for a CCJ without giving you time to pay/respond. They have to send you a Letter of Claim (what used to be called Letter Before Action) and even if they sent that to an old address if you update your address with them they should send another to your new address (this is different if a claims form has been sent to the old address as legal proceedings have started). As to the discount it all depends on the company. You could get a settlement figure of 150 if paying straight away, but it depends on the company.
    Last edited by nic_c; 06-01-2018 at 3:19 PM. Reason: cross post
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