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  • FIRST POST
    • vv1
    • By vv1 14th Apr 18, 11:57 AM
    • 4Posts
    • 0Thanks
    vv1
    Debt Repayment on Credit File
    • #1
    • 14th Apr 18, 11:57 AM
    Debt Repayment on Credit File 14th Apr 18 at 11:57 AM
    Hello Everyone.

    I was a sole trader in 2005 running a small business and at the time, I had opened a commercial business account with Bank of Scotland.
    In 2008, I had to close the business down and could not pay the overdraft that was still left outstanding. As I owe them and I still owe them, I have been paying them 40 a month.
    Over the time, the account was transferred to Hillesden Securities, known as Cabot Financial. Cabot Financial writes me letters informing of my up-to-date account statement etc. I have been still paying them and we will clear this debt soon.

    This account never showed up on any of my Credit reports with mostly all known credit referencing agencies.

    However, I received a letter from Cabot financial state that they decided to deal with my account directly and will show as Cabot financial instead of Hillesden securities, etc. The bottom right pane of the letter states: "This account may be shown on your credit file and may be hard to obtain credit from other lenders".

    I have been paying them since, and never missed any payments in my arrangement and I don't want to write this debt off as it is my debt and I truly am responsible for it as I used the overdraft for the business.

    Although I have never seen this marked on my credit file since 2005, can they still mark this account now?

    I thought accounts such as this one, are dropped off from Credit reports after 6 years whether or not payments are posted to the account, or whether or not you have acknowledged the debt.

    Thanks
    Please classify.
Page 1
    • worried jim
    • By worried jim 14th Apr 18, 11:58 AM
    • 9,506 Posts
    • 14,633 Thanks
    worried jim
    • #2
    • 14th Apr 18, 11:58 AM
    • #2
    • 14th Apr 18, 11:58 AM
    You are fine, it's a generic letter hence "may" and not "will".
    "Only two things are infinite-the universe and human stupidity, and I'm not so sure about the universe"
    Albert Einstein
    • vv1
    • By vv1 14th Apr 18, 12:31 PM
    • 4 Posts
    • 0 Thanks
    vv1
    • #3
    • 14th Apr 18, 12:31 PM
    • #3
    • 14th Apr 18, 12:31 PM
    Thanks for your reply. Yes, it is generic.

    However, are they allowed post updates or even, post the whole account entry to CRAs now or later in the future, perhaps when the account has been settled in full?

    OR, is it just too late?
    • sourcrates
    • By sourcrates 14th Apr 18, 12:46 PM
    • 15,237 Posts
    • 14,334 Thanks
    sourcrates
    • #4
    • 14th Apr 18, 12:46 PM
    • #4
    • 14th Apr 18, 12:46 PM
    If the account defaulted as long ago as 2005 and defaulted debts only show on you file for 6 years, then it will of dropped off a long time ago, and cannot come back again.

    However if it never defaulted, then Cabot could, potentially add a default, if they choose to do so, but if that were the case, due to the passage of time, you would have grounds to get this back dated, and most likely removed from your file.

    Best advice is keep a close eye on the post (for a default notice) and your credit file.

    I would say as long as your repaying the debt, they wont escalate things.
    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/
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