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Debt Repayment on Credit File
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vv1
Posts: 4 Newbie
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.
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.
0
Comments
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You are fine, it's a generic letter hence "may" and not "will".0
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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?0 -
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 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-letter0
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