If you are very worried about your debts, you may be wondering how easy it would be to disappear and leave them all behind. perhaps you have already gone, leaving Britain because of Brexit.
Will your old records be linked with new ones on your credit records? Can your creditors find you if move, go abroad, change your name?
Some of these sorts of ideas aren’t very sensible – and there may be much better options! But let’s see what the problems are.
“I could move and not tell my creditors”
You could try to live “under the radar” of the credit reference agencies by not opening a new bank account or taking out any credit, including mobile contracts or paying for your car insurance in monthly installments. This is becoming harder to do:
- more types of payments are being included in credit records. It’s now common for utility bills to be included.
- you may find it hard to rent anywhere privately if you don’t appear to have a credit record;
- to get any form of benefits, you are likely to need an account they can be paid into and it can be tricky to open any account without proof of identity and address;
- if you change jobs, employers often need to see identity documentation. If you want to be paid cash in hand by an employer who doesn’t make identity checks, you may well end up being paid less than the minimum wage, not getting proper holiday or sick pay etc – you are setting yourself up to be exploited.
The other option is to live a more normal life, acquire a new credit record at your new address and hope that the credit reference agency systems never manage to link up your old record with your new one.
This may well not work. It’s common for people to think they have got away with it because they haven’t heard anything for years, only to get a letter from a debt collection agency just before the six-year limit is reached.
“If it’s over six years, am I safe?”
If it is more than six years since you made a payment to a debt and you haven’t acknowledged it in writing, it is possible the debt is statute-barred. Ifn this case you will be “safe” as although the debt still exists, the creditor can’t enforce it in court. Read Common questions about Statute-Barred Debt for more details about this as it is more complicated than just not having paid anything for 6 years.
But if your creditor has already gone to court for a CCJ, the debt will not become statute-barred. One of the problems about trying to hide from your creditors is that a creditor may get a CCJ (or even make you bankrupt!) and you don’t realise until years later. To find out if you have a CCJs without looking at your credit record you can use the Trust Online system.
“Would it help to change my name?”
You can call yourself anything you want in Britain. But if you want your name changed on your passport or driving licence, you usually need to use a deed poll. Banks normally require some official document such a marriage licence or a deed poll.
Changing your name does not mean that you can ignore debts taken out in your previous name – they are still “yours” no matter what you call yourself.
One of the main purposes of credit reference agencies is to check credit applications for fraud. Credit Reference Agencies have access to a wide variety of information. GAIN is a database of information about debtors who appear to have “gone away” without informing creditors of their new address. With so much detailed data, it is becoming easier to “find” people, even if they have changed their names.
If you see adverts for an e-book that explains how to set up a brand new credit identity, unlinked to your old one, don’t waste your money on it! The only person that will be smiling at the end is the author who is pocketing your money.
The better alternatives if you are in Britain
Trying to hide won’t be easy and may not work. The world is becoming increasingly connected – across borders and across different areas of life in Britain (employment, housing, finances). This is making it is much harder to run away from your debts.
If you are discovered after a few years, you then have to face up to the debt situation, interest may have been added and your credit record will probably have got worse. This will have delayed the endpoint at which you are actually debt-free and may have removed some of your “easier” options.
Find out what your alternatives are at the moment by reading What is my best debt solution? Even if your debts are completely unmanageable and you can’t make any payments to them, a Debt Relief Order or bankruptcy could give you a clean start. You can also talk in confidence to good debt advisers.
“Will my creditors find me abroad?”
Leaving the country does make it harder to be traced. And in 2019 credit reference agencies in different countries don’t share data:
- a bad credit rating here, even bankruptcy, doesn’t normally show up on credit records outside the UK;
- new credit records you establish outside the UK won’t be linked back to your old debts.
This may change in the future. Linking systems across borders will probably become easier; the biggest obstacle may be dealing with different countries information-sharing legislation.
A creditor you owe a lot of money to however may be able to trace which country you have gone to and use a local investigator to find you there. This is obviously more likely to happen for a £35,000 mortgage shortfall than a £500 catalogue debt.
Tackle problems before you leave the UK?
There are two good reasons to try to resolve your debts before leaving the country:
- in many countries it is surprisingly difficult to open new bank accounts and get a credit card if you are not a national of that country. The easiest way may be to go to a sister bank of a bank you use in the UK, rather than try for a “clean break”.
- the option of going bankrupt in England only applies for three years after you have emigrated.
But if you don’t know what you will be earning or what your expenses will be, it is hard to make payment arrangements in advance that you know you can afford.
Are you going home and will never return to Britain?
If you may return to Britain after a few years, ignoring your debts while you are abroad may mean you come back to a much more difficult situation.
But if you aren’t British and can’t see why you even return to Britain, then you may not care at all about your British debts and credit record unless you can be traced abroad and your creditors can take effective action against you if they do find you. But a lot depends on whether you will be well paid and have assets when you are back home.
Getting debt advice from abroad
If you have already left Britain, National Debtline has a factsheet on debt options if you live abroad. They also have a telephone number for use from outside the UK: 0044 121 410 6200.
Sarah clarke says
I’ve got debt problems but can’t afford to pay. I’m unemployed and only get jobseekers allowance
Sara (Debt Camel) says
Are you likely to get a job soon? How large are your debts? Are you renting?
Caroline says
I want to know what happens when the debt is in an old name ? I changed my surname and altered the spelling of my first name for personal reasons but the bailiff still refuses to acknowledge my name change and come back with the paperwork in the correct name saying the debt was in court under my old name so it’s still valid???!!
Sara (Debt Camel) says
Changing your name doesn’t make any difference – the bailiff is right – you still owe the debt and the CCJ or Liability order is still valid.
Andrew says
For over 15 years iv been runing away from my debts. Im now 41 years old and fed up with hiding and now wish to face my debts. My problem is i don’t know how much i owe or to how i owe it. How do i sourt this out
Sara (Debt Camel) says
Have you paid any money to any of the debts in the last 6 years?
Con says
Hi,
A man owed me £4000 and he left without per say. He has a daughter in France and my update is he might be in Spain. His group also thinks he’s got a property in New York.
I have his passport number and his photos. Could I used these to track him down?
Any suggestion would be appreciated.
Sara (Debt Camel) says
You would need to employ a private detective I think. This could cost more than you are owed.
Kelly says
Hi Sara, I’ve got a ccj on a previous address, does that mean that until the ccj reaches it’s 6 year birthday I could still be contacted by my creditors about the debt? The ccj is 5 year and three months old.
Sara (Debt Camel) says
Yes. If you are contacted after the six year point I suggest you talk to national debtline on 0808 808 4000.
patricia says
I was going through a divorce, but my husband being difficult threw the towel in. The court awarded me £7,000 of the initial £11,000 I paid to my lawyer. My husband has never paid me anything. It has been over 5 years and he has now run off and purchased a property in France. What can I do ? I did have an inhibition on a property that (he) purchased inside our marriage, but my lawyer didn’t tell me that it had an expiry time and has lapsed. What can I do to at least recoup some of my combined total £40,000-£50,000 loss ? Any advice would be appreciated.
Sara (Debt Camel) says
I’m sorry but you need to talk to a solicitor about your options.
chris says
If I was to leave the UK for Ireland, would I be able to open a new bank account without creditors in the UK knowing. I know this is against your advice but its becoming increasingly clear to me that many in my generation 25 – 40 will likely never free themselves from debt or even a house, running away doesnt seem any more likely to result in a negative outcome than not. So if I was to move are HMRC and all these loan companies likely to be able to link my new details to my old, I’m assuming some of this information (my UK details) would be needed to be provided when opening a new account or renting etc.
Sara (Debt Camel) says
I can’t guess what information you would need to provide in Ireland for opening a bank account or renting. I have no idea if you can get a good job there or if you would want to return to the UK at some point. Debts owed to HMRC, in particular, are unlikely to ever become stature barred. I suggest you take some debt advice in the UK before deciding that running away is a better option :)
Zoltan says
HI!
Can the debt collectors find me if I change my address by my bank?
Sara (Debt Camel) says
Are you asking what happens if you move and give your bank your new address? Or are you thinking of telling your bank you have moved to somewhere else when you haven’t?
Zoltan says
HI
Yes, I meant if I change my address and update it in my bank. Can the creditors find me and come to my new address?
thanks
Sara (Debt Camel) says
The Credit Reference Agencies and debt collectors have got pretty good at working out if you, living here, are the same person as used to live over there. It may not happen, but you are quite likely to start getting letters from debt collectors at some point.
Chris says
Hi
I left the UK 4 years ago with some small amount credit cards and mobile phone debits(probably around 2000 pounds in total). But now I’ve had to return and start again. Will the creditors come chasing me if I open up a bank account and get a place to rent?
Will they be after the debit plus interest?
Sara (Debt Camel) says
Yes they probably will find you at some point. With the credit cards, interest has probably stopped being added at some point but it’s hard to guess.
Ziko says
Hello Sara,
I got a personal unsecured loan back in 2013 to start my own business under the Start Up Loans; a government-backed scheme. I paid the monthly debts regularly. However I was not able to renew my UK business visa after 2 years and was forced to leave UK in April 2015 to my country Bangladesh (which is in Asia). I have no assets or savings as I entered UK as an international student. I have been emailed by a collections agency 6 months after that and I explained to them about my situation where I had no choice but to leave UK. And that is the reason why I am unable to pay off the remaining debts. Also that I might not travel to UK in the next 3-5 years. Then they went quiet however after like 1.5 years some random agency contacted me again. So my question is what can the collection agency do now in my case? Why after such a long hush some random agency emailed me?
Sara (Debt Camel) says
They are hoping you now have some more money and can start to repay the debt.
ZIKO17 says
HI,
I had my Bank account 1(Overdraft limit 500) and credit card(1800) from the same bank, Bank account 2 (500 overdraft) and one vanquish credit card (1000) limit and store credit of 1200 pounds. In total i had around 4300 GBP credit. I was never late on monthly payment for 2 years but then had to move from UK and didnt pay since 2015 April.
I do not have any letters sent to my old address and the landlord threw every letter away on my name and returned to senders address. can anyone please tell me if i have a criminal record or can the lenders come after me. if im back and open a current bank account? I have no idea on letters or the situation?
Thanks
Sara (Debt Camel) says
No you can’t have a criminal record.
It is possible (but not likely) that you have been taken to court by one of your creditors for a CCJ. This is not a criminal conviction, you can’t get sent to prison.
You can find out if you have a CCJ by checking your credit record (see https://debtcamel.co.uk/best-way-to-check-credit-score/) or the Trust Online site (see https://debtcamel.co.uk/do-you-have-ccjs/). If you do, you may find it hard to get a tenancy.
But it has been 2 years which isn’t long, so CCJs aren’t that likely yet.
If you return, you can open a basic bank account with any bank (see https://debtcamel.co.uk/bank-accounts-after-bankruptcy/).
When you ar eback, your creditors are likely to find you at some point and want you to start repaying your debts.
ZIKO17 says
Thank you very much for your reply, my sister just checked on trust online on my old address agains my name and report came Not Registered.Thats a good thing right? Means no ccj’s? I’ve been back for an year already and have basic bank account, got a phone contract also. please could you tell me if not registered on trust online means its clean?
Sara (Debt Camel) says
A CCJ in your name at tidy orevious address would have showed. Bug as I said 2 years isn’t long – most debt collectors will wait longer to go for a CCJ. Your debt problem hadn’t gone away.
ZIKO17 says
Thank you sara.. In that case do you have a clue how can i get in touch with them? I have idea about who the Creditors are and who to contact for a payment plan? Letters have stopped coming to the address and previous letters have been all returned to the sender by landlord.
Robert says
i have £43,000 of debt, no house, no car, no job. I do however have £15,000 in the bank. Can I do a deal with my lenders before moving to another country?
Sara (Debt Camel) says
Have you defaulted on your debts? Where are you moving, and will you need money to set up there?
Christina says
Hi I’ve left Greece 10 years ago and still owed money on credit cards,I left because I got divorced all my credit cards are under my maiden name but I’m getting married soon and thinking of going to Greece for my honeymoon but my sirname will be different,will they catch me in Greece
Sara (Debt Camel) says
I’m sorry I have no idea about debt liability or collection in Greece.
Mitch says
Hello,
I have received a letter regarding a debt that is now 9 years old. A re payment was never made. I have moved around quite alot but have been at my address for 4 years and my previous address for 2 years and never got a letter or reminder. Would this be statue-barred?
Thanks
Sara (Debt Camel) says
It depends on the type of debt and whether the creditor has already gone to court for a CCJ – see https://debtcamel.co.uk/statute-barred-debt/ for details.
Mitch says
I believe they were all linked to my file. And no ccj’s I checked credit file yesterday it’s clean.
Credit card debt it’s for £200. I am sending a letter today challenging the statute barred rule
Sara (Debt Camel) says
Ok, make sure you don’t acknowledge the debt in your letter, see template here https://debtcamel.co.uk/statute-barred-debt/.
Mitch says
Thank you, for this my letter is very similar.
Worst case scenario the debt isn’t statue barred what would be the reply? Would I have to pay in full or can I offer them what I would like to pay?
That is again
Sara (Debt Camel) says
Well it depends why the debt isn’t statute barred. If they got a CCJ more than 6 years ago, which is possible but unlikely, then the CCJ would have disappeared from your credit record but the debt would never become statute barred. However a creditor has to go back to court for permission to enforce a CCJ over 6 years old, and that is unlikely to be granted.
If there was no CCJ but they can prove you made a payment (check your own bank records to confirm this) then you could ask them to produce the CCA agreement for the debt, if they can’t do this the debt is unenforceable in court. See https://www.nationaldebtline.org/EW/factsheets/Pages/getting-information/credit-agreement-advice.aspx for more about this, including a template letter and note that you have to pay £1.
Mitch says
So checking I have this correct,
The possibility of having a ccj in quite slim, as I reviewed my report and nothing showing, unless before 6 years they got one.
Can they collect on the debt as it is 9 years old. I definitely have not played anything back on this card and have not acknowledged the debt since I took it out.
Is it common for agency’s to try and collect barred debts?
Appreciate your help with this.
KLP1964 says
I have a CC debt of £4000 almost and it is in my old name (been divorced 3 years) its also listed at my old address (not lived there for 2 years) I had forgotten about it until the letter came through my door with a warrant! what are my options?
Sara (Debt Camel) says
A warrant? Can you say exactly what you have received?
KLP1964 says
It is a hand delivered letter asking for a payment plan option before the 25th or go to court!
Sara (Debt Camel) says
Does it look as though it is the letter (and attachments) described here: https://debtcamel.co.uk/letter-before-claim-ccj/ ?
Does this debt show on your credit record? Do you remember when you opened the credit card account very roughly?
KLP1964 says
it is a form that says “the simple payment plan” on the top and stamped by the sheriff. I live in Scotland.
Roughly 2013 it was opened
Sara (Debt Camel) says
As you live in Scotland, I suggest you call National Debtline https://www.nationaldebtline.org/S/Pages/default.aspx – they have Scottish experts. I’m not familiar with the Scottish legal system and can’t say anything useful.
Mitch says
Hi Sara,
Just to update, received reply to my statute barred letter today from DCA, advising a reduction of 70% of full amount they have asked me to contact them by phone to make an agreement. What would you suggest I’d do?
Regards
Sara (Debt Camel) says
So they haven’t replied to your assertion that the debt is statute barred?
Michael Hopkins says
I’m guessing not as looking at the letter its dated two days after mine was sent. The offer of the reduction does look tempting as they have given me 3 months to pay it off which is affordable and would get them off my back. Would accepting leave me vulnerable to anything?
Thank
Sara (Debt Camel) says
The FCA rules say (https://www.handbook.fca.org.uk/handbook/CONC/7/15.html?date=2015-10-26) that firm shouldn’t try to collect a debt which they know to be statute barred if there has been no contact in the last 6 years, a firm shouldn’t try to mislead you about your rights and they must not continue to demand payment if you state that you won’t be paying the debt because it is statute barred.
It’s up to you if you want to accept the offer. If you feel unsure about rejecting it, you could talk to National Debtline https://www.nationaldebtline.org/ about your situation.
If you do accept the offer, they shouldn’t be able to come back to you for the rest, but you should make sure they confirm in writing that they won’t sell the remainder of the debt on to another debt collector.
Michael Hopkins says
Thanks, would it be an idea to to give them callcand request in writing that they will not sell the balance on to third party? I’m not great with letters.
Michael Hopkins says
Received the reply today. According to the compliance manager they are investigating my Statute barred query.
Alison Jones says
My son has had his flat repossessed and is in 40k of debt. He can’t afford to pay this and is currently homeless.I am worried sick and am not sleeping over this, what would be his best option please.
Sara (Debt Camel) says
His priority at the moment has to be to find somewhere to live. When that is sorted, he can think about his debts.
After a repossession and large debts, it is often sensible to look at bankruptcy. Sometimes people put this off, then rebuild their finances but in a few years the old debts re-appear, so it isn’t good to postpone the problem too long.
Colin Macfarquhar says
Can a debt be recovered from a different house to the one where the debt actually is from, also what can they do if they don’t know the name of who the debtor actually is
Sara (Debt Camel) says
A debt belongs to a person not a house. if the person moves, they still owe the money.
Not sure why a creditor wouldn’t know the name of the person who owes the money?
Jon says
Sara, I have a default for Lowell on my credit file under an old address, it is coming up to the 6 year point and I am frightened of getting a backdoor CCJ, I have never contacted them and as I say there has been no communication for over 5 years ref this. How can I go about updating my address so they cant get a CCJ at my old address? Thanks
jon says
I have been with payplan since 2005 and still owe about 20k. I have had no contact from my creditors in years. I have moved a few times over the years and no debts or defaults show on my credit file infact I have very good credit.
if I stopped paying could they still trace me
Sara (Debt Camel) says
From your email address you do have a very common name… but it’s not safe to assume your creditors couldn’t trace you.
These debts will never become statute barred as you have been paying them. It is however possible with very old loans and credit card debts that the current debt collector won’t be able to produce the correct Consumer Credit Act documentation – see https://www.nationaldebtline.org/EW/factsheets/Pages/getting-information/credit-agreement-advice.aspx. So if you decided to stop paying them and one did get in contact, you could ask them to produce that. Or you could offer them an amount in partial settlement of the debt?
but if you are just paying a token amount each month, you could decide it’s simpler to carry on doing this?
Charlotte says
Hello,
I was wondering if you could point me into the right direction. My partner and I are wanting to move out but he checked his credit score and doesn’t have one.
Basically he lived in a flat and didn’t pay the last months rent and moved in with me (his name isn’t registered here though) he also had a bank account that he owed around £1000 on and they took some money and closed his account. Because he has moved in with me without anyone knowing so his post would go to the old house and he has no access to it. How would he find out how much debt he owes and who too?
Thanks in advance,
Charlotte
Sara (Debt Camel) says
The landlord probably took his deposit to pay the last month’s rent? If he wants to be sure, he can search on Trust Online for his name and his old address – that will show if there is a CCJ.
Has he got a bank account at the moment using your address?
Candice says
I have 2 debts which I took out for a now ex partner they promised to pay it off but they have not! One is 9900 on a credit card and the other is 10 thousand on 2 year finance plan, I can’t afford to pay them nor do I want to! If I was to sell up and leave to go travelling with the poss of working somewhere like oz in the future, could they find me? Can they find out which bank account (I have 3 including a business one) my house profits went into? And if I didn’t come back for 6 years or more would it be statue barred and therefore written off in effect?
Sara (Debt Camel) says
what are these house profits? are you planning to sell a house? leave any money in this country?
GK says
Hi, I am American living in UK. I have a personal loan through Barclays with a £10,000 balance left. I am going to move to southern Italy and am thinking of skipping out on the loan. I have no plans of ever returning to the UK, have no reason to and no ties in England. Would Barclays likely pursue me in Italy for a personal loan of this amount?
Sara (Debt Camel) says
Barclays may or may not, or they could sell the debt to a debt collector that will. I can’t guess at the chance of this happening.
Chazza says
Hi Sara,
I have some debt from back in 2015,
When they said I had debt I faced it head on as I did not agree with what they said I owed. I have all the evidence still. I challenged this at the time but got no where. They stopped contacting me now out of the blue I have just got a letter at a new address. I don’t know what to do.
Sara (Debt Camel) says
I suggest you write to them again with your evidence. Ask for them to confimr in writing that you don’t owe any money (or not as much as they said).
Mayaats says
Hi, I have just been through a year with a solicitors who were chasing my creditors to see if they could come up with the original paperwork i.e are they enforceable? Some could – so I have started a payment plan with them – some couldn’t so I don’t legally have to pay them. Some never got back to the solicitor within the last year and now I have moved house. Do I have to tell them where I have moved to? These debts are all from around 2008-2011 and most are not on any of my credit files. Is it worth contacting them? They are mostly old payday loans for a couple of hundred pounds each. Not saying I won’t pay them but what is the likelihood they would apply for a CCJ at this late stage or even lodge a default? They have been asked to come up with the original paperwork and have not. However, I had 2 CCJs which have nearly run their course and really don’t want another 6 years on my file.
Sara (Debt Camel) says
The obvious question is what does your solicitor say? After all they know all the details. The vital question is when did you last make a payment to these debts?
Emma says
I have moved in with my partner and am keeping my old address as my official address ( i still rent it for my son) so that my bad debts don’t affect my partner. I do need something like my driving licence registered here so i can join the local doctors surgery etc. Can you tell me what i can have that wont be used by creditors to find me?
Sara (Debt Camel) says
There are a LOT of possible complications with what you are hoping to do.
“I still rent it for my son” can I ask if this is privately rented? Because if it is council or housing association property you are very likely to be breaking the terms of your tenancy.
“so that my bad debts don’t affect my partner!” your bad debts will not affect your partner unless you have a joint account, there is no need to worry about this.
If either you, your partner or your son is claiming any benefits, you cannot pretend to still be living at your old address. And your partner cannot claim a 25% single person discount on their council tax because they aren’t single anymore.
You are legally obliged to tell DVLC where you live or you could be fined. Also you need to tell your car insurance where the car is now being kept overnight if that has changed.
SHARON says
i am paying £5 a month each to 3 seperate debt collection agencies(9500 in total) got into debt due to ill health in 2013 and had to give up my job ,My health has got worse and have recently moved into my partners (14 years) home 1. wasnt coping in my house and his is easier to get around & financialas i was spending more on bills than what was coming in My son is still in my property (mortgaged) he has took over the bills and sends me the mortgage money every month so the letters can still go to my old address Benefits have been informed so took a drop in benefit& have to pay towards my keep and still paying the £15 per month to debt collectors Do i have to inform them of change address or just leave it as it is and if they contact me dont say anything
Sara (Debt Camel) says
Are you getting any disability benefits?
Your house, is there a lot of equity in it? Is the mortgage repayment or interest only, and when does it end?
SHARON cook says
I get contributary esa and pip my mortgage is repayment it wont sell at the moment that is y my son has continued to live there at the moment and he has taken over the bills and paying mortgage payment as there is a lot of work to be done there is about 13 years to go I have still carried on paying the £5 per month to the debt collection agencies
Sara (Debt Camel) says
Contributions-based ESA only lasts for a year so at some point it will stop.
I think you should go to your local Citizens Advice and talk about both your debt and benefits situation, as you need to know what all your options are.
CK says
Hi,
A friend of mine was looking for new accommodation, because of what he said was a damp problem at his current address.
So i asked my landlady to offer him the ground floor flat below me. Its been two years now, and i found out he moved due to creditors chasing him, and that he ordered products and credit at his old address with the intention of not paying. He is now doing the same thing at this address,
ordering stuff from magazines and obtaining goods on credit, with the intention of not paying again. The guy is no longer my friend, and is now an alcoholic cokehead. Will this affect the address (as its not classed as separate flats) or make it hard for anyone else living here to obtain goods or services at this address ? And is there a way i can tell creditors where he lives, so they come looking for him, and he moves out. I don’t want him running up credit for the next 5 years at this address. I don’t know which companies/catalogues he is ripping off, but its many. The landlady is no help, as she is only interested in his rent. Any ideas ?
Many Thanks.
CK
Sara (Debt Camel) says
It won’t affect you or anyone else at the address – unless you are unlucky enough to have the same name!
CK says
And what about the second part of my query…?
Sara (Debt Camel) says
There is no way to do this.
CK says
Ok, thanks for taking the time to reply.
Have a great summer (If it ever gets here lol)
Kind regards
CK
Caterina says
Hiya – please can you advise me what I should do ?
I have been paying LLOYDS collections dept £80 a month for about ten years now for a bank loan which was later agreed interest to be stopped due to our severe joint ( now ex hubby )’ financial difficulties !
My eldest son and his family have recently moved into s new house and have just received s letter saying that this company have taken over my loan due to missed payments ( I haven’t missed any but due to chronic health problems s few may have been a couple of days late )
My son is obviously really unhappy about this as I am too as to why they have sent s letter addressed to me at their new address !
Sara (Debt Camel) says
Who was the letter from?
Caterina says
Sorry- it was from Lowell
Sara (Debt Camel) says
It looks as though you have three problems.
1) the annoyance of the data breach – clearly your son should not have been sent this letter! It’s not clear where the fault lies here – were Lowell given the correct details by Lloyds or not? I suggest you should write to Lowell and complain to them and ask for compensation for this mistake – no doubt they will tell you if your son’s address was the one given to them by Lloyds. I also suggest that you check your credit records with all three credit reference agencies (see https://debtcamel.co.uk/best-way-to-check-credit-score/ for how to do this for free) just to make sure there is nothing odd on there that could have caused this problem.
2) the question of whether your debt should have been sold as you say your payment history was ok but not perfect. Here Lloyds actually are allowed to sell your debt even if you had made every payment on time and I doubt you will get anywhere complaining about this. Also it’s often easier to deal with a debt collector such as Lowell – they are usually more prepared to accept a full and final settlement offer.
3) the big question about how much debt remains. You have been paying this for a very long time! Do you have other problems debts? Could you afford to make a settlement offer on this, see https://debtcamel.co.uk/debt-options/less-common/full-final/.
Caterina says
Hiya Sara – many thanks for your very helpful and informative reply and I will be writing to Lowell’s to ask them where they got my sons address from !
I have checked on the three credit agencies and there is nothing untoward on there !
Sadly I can’t afford to offer them a settlement as I am reliant on benefits as I am registered disabled with MS chronic fatigue and a list as long as your arm ! ☹️
Also I have two special needs children who are also registered disabled , so my situation is unlikely to change unless I win the lotto!
I have no credit cards or payday loans etc .
I am just about keeping on top of my monthly payments for everything else so have no real debt anywhere else luckily but would still not be able to increase the payment that I have been making!
Also as I’ve still been making payments to Lloyd’s collections dept – would these still be coming off my debt if they’ve transferred it to Lowell’s? As reading a copy of the letter they sent to my Son , they say they’d written to me there once before ? Though my son says this is the only letter they’ve received with my name at their address !
Thank you Sara
Sara (Debt Camel) says
Yes the payments you have made to Lloyds should come off your balance. Ask Lowell for a statement of your account and check they have been credited.
robert hopes says
Hello, I have a Question, I fell on very hard times in the past 2 years and accumulated 15k in Unsecured Credit Card debt in the UK, I have No property or No Assets in My name.I have Since Emigrated to the EU. I have since found a job abroad in the EU and I have moved there and have an Apartment and a Bank account. I have no intention of ever returning to the UK to Live. My question is, Will the credit card company / Debt collectors get a European Enforcement Order against Me,? And does anybody Know how much the debt has to be before they decide to track me down in Europe?
Sara (Debt Camel) says
It is a shame you didn’t go bankrupt before leaving England. The smaller the debts the less likely it is that a debt collector will try to track you down, but I can’t say that it’s impossible.
Apm says
Hi,
I lived in the uk for 10 years. When I left I had approx 9k of debt (balance transfers, credit cards) I have moved to another eu country and been successful in renting and opening a bank account. I am struggling with the repayments. If I stop making payments, is it likely I will be followed for these debts. I want to apply for a mortgage in my new country but if these old debts will affect my chances of obtaining a mortgage I will find some way to repay them. Thanks in advance.
Sara (Debt Camel) says
It doesn’t sound that likely but it’s not impossible. It probably depends on who the creditors are and, if the debts later get sold to a debt collector, who that debt collector is. I can’t say anything about how having these debts would affect a mortgage application in some other country.
Shaheen Jahan says
Hi Sara I had a loan some 2 years ago but due personal circumstances I could not pay that loan coz I was abroad for two years. Now i have returned to uk again. I’m job less and have no money in my account,in fact I don’t have place to live in. Recently my friend told me that i can live with her till I sort out myself. My question is ” If I apply for JSA while living in my friend’s house and give her address as my temporarily address to JSA people,will JSA people pass my temporarily address to debt collectors or will my creditors be able to get my temporarily address from JSA people.
Sara (Debt Camel) says
No, that isn’t something you need to worry about.
Sandra White says
Hi there great job you are doing. I just need a bit of advice. Had about 8 defaults on my credit file 6 of which have now left my credit report cos it still past 6 years now (I am currently with a debt management company) and all d debts are with DCA.
2 of those companies (DCA) have now contacted me offering me 60% off and will mark it as partially settled (these are no longer on my credit report)
Can they still get a CCJ if I don’t pay? Also the remaining 2 also leave in 3 months so does my credit report go back to normal?
At what stage can I apply for a bank account again? Can I add my name to the electoral roll now too or not yet? Look forward to hearing from you.
Sara (Debt Camel) says
“2 of those companies (DCA) have now contacted me offering me 60% off and will mark it as partially settled (these are no longer on my credit report)” what sort of debts are these? And when were the accounts opened?
“Can they still get a CCJ if I don’t pay?” Yes – see https://debtcamel.co.uk/debt-not-on-my-credit-file/. But if you carry on making the monthly DMP payments it isn’t likely.
“Also the remaining 2 also leave in 3 months so does my credit report go back to normal? ” yes, unless you get a CCJ, when it is wrecked for another 6 years.
“At what stage can I apply for a bank account again?” Now! See https://debtcamel.co.uk/bank-accounts-after-bankruptcy/
“Can I add my name to the electoral roll now too or not yet?” of course, why not? Are you hoping your creditors can’t find you? That isn’t very likely, you are still paying them!
Sandra White says
They are old credit cards which were passed to debt collectors. So it’s the debt collector ie CABOT FINANCIAL offering me the 60% off 2 of the accounts. So not sure if to stick to the DMP or accept the offer for those maybe I’ll get more offers for the rest.
I’m guessing this is just to pay off the debts and nothing to do with my credit report since they re no longer there
Can I apply for the bank account even with the old creditors that have left the report or just wait till some months.
Sara (Debt Camel) says
Well 60% off is quite a lot, if you have the money that is surely a good idea? the debt will not reappear on your credit record because you settle it.
BUT you may want to try this to see if it works first… Ask Cabot to produce the CCA agreement for each debt. This factsheet explains how to do this (NB you have to send £1 with each request). If Cabot can’t find the CCA agreement, they can’t take you to court unless they can later find it (which is very unusual). So you could simply stop paying.
Is there a particular reason you want a specific bank account? It’s always going to be best to apply to someone you haven’t defaulted to, your credit record doesn’t matter, they can see their old internal records.
Sandra White says
Okay I will request the information you said. I hope this doesn’t affect the offer of settlement they made me though cos like you said it’s a great offer.
I will apply for an account to others I don’t have history with as suggested.
I don’t have the money for the settlement figure just thought I could get family to help me since it was a big chunk off the debt. I would love to try the option u gave me first if that will help me stop completely.
Can I send it to all 8 creditors even though only Cabot sent me an offer
What’s the link please?
Sara (Debt Camel) says
Sorry, the link: https://www.nationaldebtline.org/EW/factsheets/Pages/getting-information/credit-agreement-advice.aspx
I can’t guarantee it won’t affect the offer, but I would be surprised if it does. Yes you can send it to other creditors – it only works for credit cards, catalogues, loans – not overdrafts or other debts.
Sara says
UPDATE:
Finally sent settlement letters from the guide to 3 of them and one just replied giving me £87 discount off a debt of £1800. should i just ignore them and keep making my normal payments using the DMP cos i think its a joke offering me that kind of discount. the others are yet to respond though.
Sara (Debt Camel) says
So these are offers to creditors who you have asked for CCAs and who have produced them?
Sandra White says
No I didn’t ask for the CCA yet. Can I still do that cos I thought it was for people who are going the statute barred route. I have been paying through DMP for a long time now
manish says
hello sara..!
i leave in Canada now..its been 2 years now,i lived in UK for 6 years,when i left UK i have 20000£ Barclay bank credit card and loan of 15000£ from Barclay too.i paid around 5000£ back in loan and left UK and came here in Canada.
yesterday i checked my email randomly i got email in which i was using in UK .i changed my email also..LOWELL says please contact our team for personal matter..it seems like they chasing me now..do u think they can create problem here ? as i bought new house and i have job also,am married now..i dont want any problem and dont want to pay them also…do you think they share data with UK and canada ?.my credit history is good here ….waiting for your answer ..thanks alot
Sara (Debt Camel) says
I don’t know. The problem is these debts will not be statute barred for 4 more years. So Lowell have 4 years to find you and even if it’s not easy to trace you know, who can tell what may change in 4 years, the world is getting smaller and better connected all the time. Also the debts are so large Lowell may decide it’s worth paying to get a CCJ after 3.5 years even if they haven’t found you and then there is another 6 years…
Best suggestion is for you to start serious saving now. If you are never contacted, you then have a good chunk to pay off your mortgage/ If you are, then you may have enough to make a full & final settlement offer.
manish says
thanks for your quick reply..
do u think there share data for pending debts overseas..if they do i might not have good credit score here now…someone advise me not to worry as it cost them more than i owe to chase me overseas…and do you think i should stop login that email now as if they can trace my IP address or something ..and also can they trace me with my social media as Facebook or Instagram ?
Sara (Debt Camel) says
I think tracing for the purpose of debt recovery will come a long while before data sharing for credit records, but that’s just my view.
I also think you owe one creditor a lot of money so you can’t assume you will remain safe over the next few years.
But no, they can’t trace the IP of someone reading an email (though the police might be able to with a warrant – but that isnt going to happen for debt recovery). Social media – who knows?
Sam says
Good morning Sara,
First, thank you very much for your help and time.
I had debt ( credit card and loans) in Sept 2007 which I was not able to pay and i still can not pay them therefore No any payment or any communication since 2007 until now.
I changed addresses few times, travelled abroad for nearly 9 years, now I am back to settle in the UK. I checked my record for the past 6 years and it’s shown clean, I also checked the courts record if there is a CCJ and it’s shown no.
One of my debt was with HSBC which my account was closed by the HSBC in 2008.
In April 2018 One of my housing benefit payment went to my HSBC old account by an acknowledged official error from the council. Which they managed to have the money back from HSBC and re-issue the payment to the correct my Bank.
In July 2018 I received a letter from MKDP LLP saying the debt has been sold to HPH 2 limited on 26/10/2015. And I will soon receive a notice of assignment from HPH 2 limited.
Is my debt statues barred?
Is the Council official error payment will put me in disadvantage?
I am thinking to travel again should I ignor the HOH 2 limited letters and not communicate with them? I did not so far.
Can HPH 2 get a CCJ against me? Even if they will not have my new address abroad?
Please what is the best course of action for me to take.
Many thanks for your help.
Sam
Sara (Debt Camel) says
“In July 2018 I received a letter from MKDP LLP saying the debt has been sold to HPH 2 limited on 26/10/2015.” what debt is this?
Sam says
Good morning Sara,
Many thanks for your prompt response. The debt is for a personal loan or a credit card I am not sure.
One more question please:
Can HPH 2 limited include a statue barred debt (2007) in my credit file in 2018?
Thank you,
Sam
Sara (Debt Camel) says
There is no connection between whether a debt is statute barred and whether it appears on your credit file. To get the debt removed from your credit record you need to ask the lender to add a default date of more than 6 years ago. To do this you need to be CERTAIN that the debt is statute barred.
I suggest you talk to National Debtline on 0808 808 4000 about your options.
Sam says
Thank you. Any help regarding my first post
Sara (Debt Camel) says
My suggestion to talk to National Debtline covers all the questions you were asking.
Nick Jonson says
Hello,
I want to ask for a friend who made a big mistake to take a loan and to go abroad.
Now he understands his mistake and wants to come back but does not know what the consequences are.
he took a loan-15000 plus credit cards about 8000 a period of 1 year has passed,now if I come back I do not know what can happen.
to whom to turn to talk,his bank account is closed ,and may not be able to open a new one.
there is no address and I do not want to register it at my address so they do not knock on my door and keep my rating.
I do not know how to help him ,work can immediately find it for good money but without bank account and address and this credit history be hard .Really he want to fix this .Any advice how to help him .Thank you
Sara (Debt Camel) says
I am sorry but your friend really needs to ask about his own situation. If someone stays with you who has a bad credit record, it will not affect yours. there is no blacklisting of addresses.
Nick Jonson says
Thank you ,just i am afraid if i get him someone can to come in my home and take my tv , laptops …
Hamza says
Hi Sara I need some advise, I have a credit in debt over £9000 with Barclays Bank and I can’t pay it. I was managing fine with my payments till I lost my baby and had to go on the sick and then I lost my job
I have moved to a different country in EU now
I got an email from Lowell so I’m guessing Barclays have sold my debt over to them
My question is can they find me since I’ve moved to a different country? I still don’t have a job or else I would have paid them back
I’m not looking to return back to England but if I do go back for a visit will they stop me at the airport?
Sara (Debt Camel) says
I can’t guarantee they won’t find you, but it may not be easy. And if they do and you have no job or assets then so what, you still can’t pay.
This is a civil matter – there is no way you would be stopped at an airport for a debt.
Emmiboo says
Hi,
I have ignored my debts for 8+ years. Not on purpose at first, I am mentally ill, but later I intentionally ignored them. I don’t even know how much I owe and to whom now. I’ve moved 4 times since I last paid anything. I didn’t hear from any of the debtors in this time but recently have received a letter and a knock at the door from debt collectors asking for me (by my maiden name). I panicked, said that person doesn’t live here and they thanked me and left. I don’t know why I panicked. I am in a position to now face my debts but I don’t know what to do.
Sara (Debt Camel) says
The first thing you could do is have a look at your credit record. But there may be little on it, as defaulted debts drop off after 6 years. Does your bank have your current address? If not, that is the first thing to do to get back onto a normal footing. You do want to have to try to hide for the rest of yourlife.
Unless a creditor has gone to court for a CCJ, most of your old debts (except possibly overdrafts) are now likely to be “statute barred” – your creditors have left it too late to try to find you and take action against you and you do not have to pay the debt. Read https://debtcamel.co.uk/statute-barred-debt/.
If you are contacted by a debt collector for a debt that you think is statute barred, send them the letter in that article. You may also want to add a sentence about your mental health.
Good luck, after 8 years it may not be as bad as you are dreading.
Emmiboo says
My credit score is excellent, 988 out of 999 and says I have no CCJs. My bank has my current address.
lisa says
hi there
I had a credit card in england and moved to canada, I lost my business, so lost the ability to keep paying, I have income now
do they have the right to contact me in canada, say they find me, and is it likely they will do a CCJ for 8000 pounds, I think thats a lot and I’m very concerned I cant sleep, such a mess , I went into default only recently
Sara (Debt Camel) says
You owe them money so they have the right to contact you. Whether they will trace you in Canada I can’t tell. You could always contact them and offer £1 a month until your finances improve.
lisa says
ok thanks didnt know I could do that, I wonder if they accept such low payment or they will refuse, do you now if debt collectors have the right to chase you in another country
this site is a godsend by the way
stuart says
hi there how much in debt do you have to be for them to issue a ccj thanks stuart
Sara (Debt Camel) says
private parking companies will go for a CCJ for one parking ticket… there isn’t really a minimum amount. What are you worried about?
stuart says
I have a total of 17000 pounds debt with 9 different creditors they have been sold on to Moorcroft debt recoveries I am worried about receiving a ccj before they become barred thanks stuart
Sara (Debt Camel) says
How long until they become statute barred?
stuart says
4 and a half years
Sara (Debt Camel) says
You have 9 different debts that defaulted 18 months ago and they have all ended up with Moorcroft? What other debts do you have apart from these? Any assets?
stuart says
I have no assets everything is in my gf name and yes most of the debtors have sold my debt to Moorcroft the biggest debts anyway they are all unsecured debts
Olu says
Hello pls help.I live in London briefly and for some months before moving back to West midland.I used the address for corresponding address.Now I got a letter from debt collectors that i owed Thame water £341.I didn’t have account with them.The debt collectors send a letter to my new address in Westmidland.
Sara (Debt Camel) says
When you were living in London, who was paying the water bill?
Dee says
is this legal? I owe a well known wine company £ 106.32 from i wrote to them in October stating that i couldn’t pay and that i wanted to make a payment plan, they didn’t reply. I have recently reverted back to my maiden name and moved house. The card they had on file was a cancelled card and in my old name and registered to my old address. This morning the money has been taken out of my account. I called the bank and they said that despite this Visa can pass on the details of my new card. Is this correct? I appreciate its not a lot of money but to me it is and now I’m in a bit situation with regard to bills for the rest of the month. Any advice would be appreciated.
Sara (Debt Camel) says
If you didn’t cancel the continuous payment authority with the credit card, yes this is legal. The change of name is irrelevant.
dee says
Hi thanks, even though the card used had been cancelled by the bank?
Sara (Debt Camel) says
I assume it was just the card that was cancelled, not your account?
dee says
Yes just the card not the associated bank account.
dee says
Yes just the card not the associated bank account.
Stuart says
Hello
I have a credit solution company asking for payment for utility bills from an old address. I believe these debts to be statute barred. I have never made a payment while at the address, never took responsibility for the debt and I believe it was over 6 years ago. I sent them a letter asking for proof that the debt is not statute barred and telling them I do not take responsibility for the debt. They have now contacted me asking me to confirm I lived at the old address and I do not believe I should do this? Should I just yet again ask for proof that the debt isn’t statute barred and confirm nothing?
Thanks
Sara (Debt Camel) says
“a credit solution company” who is this? what sort of utility bills? when did you leave your old address?
Stuart says
Sorry for the late reply. It is for gas and electricity. The company is pastdue credit solutions. I’m unsure of the exact date but I believe it to be over 6 years ago that’s why I am asking for confirmation from the company. Although I do not know if it is wise to confirm the address
Sara (Debt Camel) says
From what you have said there is very likely to be some debts owed by you from this time. They will be statute barred if the date on the bill is more than 6 years old. So what date did you leave the property?
Stuart says
I am unsure of the date unfortunately. Should I confirm I was at the address or not?
Dave says
Hi Sarah. I am 65 and had to sell my flat which had a short lease and sold for less than market value. I now have a £25,000 shortfall. I have been told by Birmingham midshires that the debt has been sold and passed onto moorcroft agency. At present my wife and i are in a non eu country looking after my mother in law who is 83 and ill. We have no property or assets in uk and we paid all bills when we left. We may stay here to live. I only have a work and old age pension total about £1200 a month. We give my mother in law £400 a month for bills and buy our own food. This doesnt leave us with a lot to live on. Ive sent emails to moorcroft explaining my situation but they havent contacted me yet. Ive heard bad things about this company and they only have my email address as i dont want to be harrased by them. Should i just wait for them to contact me? Do you think if i offered them £200 a month they would accept. Ive no idea what to do. I read they buy debts for very little. Have i many options to ease things. Regards. Dave.
Sara (Debt Camel) says
I think they would be very happy to get £200 a month! But can you really afford that? For the next 10 years?
I think you should seriously consider going bankrupt as soon as possible and getting a clean start – no more worries, no problem if you return to the UK. See https://debtcamel.co.uk/bankrupt-england-from-abroad/. This can be done in a non EU country for three years after you emigrated, so don’t delay too long. The bankruptcy fees are high but if you can save up anything like £200 a month it won’t take long.
Don’t be panicked into starting an arrangement to pay this. You have no assets and little income and are in a different country – there is little any debt collector can do.
I always suggest people take debt advice before going bankrupt. In this case National Debtline would be good people to talk to – here is how to contact them from outside the UK https://www.nationaldebtline.org/EW/information/abroad/Pages/living-outside-the-uk.aspx
Dave says
Hi Sarah.
I hope you are well. Moorcroft have just sent me a letter via email. Should I give them the details they require? Here below is the text taken from their letter. Many thanks. Dave.
Dear sir.
Thank you for the recent correspondence. Re the above account.
We note you have provided us with your email address as a method of contact. However for data protection purpose, we would ask that you confirm by return
Your full name
Your date of birth
Your full address
If the email address is private and secure.
Without the above information we are unable to correspond any further with you by email. In addition we hope that you appreciate that where communication appears not to be maintained by you via this method of contact. It may be necessary for us to revert back to an alternative option.
Yours sincerely.
Its re the shortfall i had that birmingham midshires passed on to moorcroft. I sent you mail the other night. I now live in non eu country on a pension and no assets. My wife and i live with my mother in law who is 83 and ill.
You suggested i go bankrupt but am worried that my bank account would be frozen as our only income is my pension. The shortfall is £25,000. Dave.
Sara (Debt Camel) says
In that case I think you should tell them the details they have asked for. Hiding is not a practical way forward. unless you have a large balance in your bank account there shouldn’t be a problem with it being frozen for more than a few days if you go bankrupt. Have you talked to National Debtline about this?
Dave says
Hi Sarah.
I’ve heard from Moorcroft and they say they will accept £120 a month to start paying off the shortfall. They also included an income and expenses form. I’ve not replied yet or if I do I will say iam taking debt advice. The reason is I’ve been looking at bankruptcy as an option. My main concern is will my bank account be frozen and how long for? I only have £ 4000 in savings and need this to return to uk for a CT scan and review twice a year as I’ve had chemo and radiotherapy. As I’ve no assets in uk and only have pension as an income maybe Moorcroft will be happy to accept anything? The shortfall £25,500 is the only debt I have. Do you think I will get bankruptcy to enable me to get a fresh start? Iam finding this all very stressful and just don’t know which way to turn. Regards. Dave.
Sara (Debt Camel) says
Well £120 a month is better than the £200 you were originally thinking of offering. But that is still £1500 in a year and that sounds like a lot to me given what you have said.
I’m sorry but you can’t go bankrupt and retain 4k in a savings account, no matter what you need it for. If it is essential you keep that money, then you have to rule out bankruptcy as a possibility.
I think you should have a go at filling in the I&E form and see what that says you have “left” each month. Don’t forget things you don’t spend money on each month such as clothes, presents, car costs. If you aren’t sure, National Debtline can talk to you about that as well.
Barry says
I have just applied for my credit file from experian. And it’s shocking. I had an old debt from 2012 at an old address, but I moved away and forgot about it to be honest. A CCJ was registered 2 years ago in 2017. But i have never made any payments or given any aknowledgement to it since 2012 as i moved.So where do I stand? I’m now married and have a child. I live in my wife’s house. But don’t have any assets or savings. I have a decent job but that’s it. Are bailiffs going to come to my wife’s house now? Do I have to pay the debt? Should I wait to be contacted? So many questions. If I pay it in full will it be remove from my credit file straight away?
Sara (Debt Camel) says
“But i have never made any payments or given any aknowledgement to it since 2012 as i moved.” That doesn’t sound relevant – there would have had to be a period of more than 6 years before the CCJ was made with no payments or acknowledgement for the debt to have been statute barred.
Now there is a CCJ the debt will never become statute barred. But if the debt collector doesn’t take action to enforce it within 6 years, they have to ask for the court permission to do this and it is very rarely given. That point is 4 years away though, the debt collector may well contact you in that time – you addresses are obviously lined on your credit records and the debt collector can see that.
If you pay it in full it will remain on your credit record for a further 4 years – but obviously you won’t have to worry about bailiffs any more. And other creditors may be more prepared to lend to you if your CCJ has been settled.
Bailiffs collecting CCJs have no right of entry to your house. You may still find it unpleasant to deal with them if they are instructed. In theory the debt collector could also apply to the court for an attachement of earnings so payments come directly from your wages. How large the debt is matters – if it is small, you may decide they won’t put a lot of effort into trying to find you.
Michael says
I have an AMEX debt of £15k and I had to move home to Australia last minute as my mum is very ill. I have been home for 6 months but as I am looking after my mum I can’t afford the repayments on my part time job. Are they likely to chase me if I stop paying?
I also owe HMRC around £6k… I’m worried they will chase me down
Sara (Debt Camel) says
No guarantees on whether a lender can locate you. AMEX operate in your current country. Logic suggest they would try harder with a 15k debt debt than a 2k but as a matter of practicality what can they do if they find you? You haven’t run away in order to stop paying, you don’t have enough money to pay…
So your options are:
– continue paying and experience hardship
– stop paying and deal with any issues if you are contacted which may never happen
– make an arrangement to pay that you can afford and ask for interest to be frozen. See https://debtcamel.co.uk/arrangement-to-pay/
– decide to sort your debts out by going bankrupt. This can be done from abroad, see https://debtcamel.co.uk/bankrupt-england-from-abroad/
The HMRC debt is actually more important than the AMEX debt.
The underlying question is whether you are likely to return to the UK or not. And when that might be.
National Debtline has advice for people living abroad here https://www.nationaldebtline.org/EW/information/abroad/Pages/living-outside-the-uk.aspx and they have a phone number you can contact from outside the UK.
Michael says
The way things are i am not expecting to go back to the UK. Will all this affect my credit records here in Australia? I’ve got no assets either here or in UK either. I’m worried this will all come crashing down on me
Sara (Debt Camel) says
Not so far as I know but that may change over the years. I can’t say anything specific. But what is the worst that can happen when you have no spare income or assets? I suggest you talk to National Debtline.
Nina says
Hello Sara
such a helpful website this is… Now I’ve got a dilemma. My ex accrued overdraft of £2,100 in our joint account before he moved to EU last year. First I was patient (he needed time to move direct debits to another account – never happened), then understanding as he lost his job. Now the account is going into default in a few weeks as he’s not been repaying. Should I
1 – cut my losses and repay in full and have it finally over (I can (very grudgingly) afford it but he turned out to be a horrible person so why would I do that?)
2 – accept the default and be affected for another 6 years but hope that bank will continue to try to trace him? They confirmed they started to already but who knows
3 – involve a private debt collector?
Thanks so much
Sara (Debt Camel) says
1. I am afraid this is probably the most practical alternative :( Unless you don’t intend to apply for any credit over the next 6 years so you don’t care about your credit rating. Or you may not intend to stay in this country yourself.
2. It seems unlikely the bank will put much effort into this. And even if they do find him, he may not have the money to repay it.
3. no private debt collector will be interested in this.
The only other option is one that is not very likley to work but you may feel it’s worth a try, which is to offer the bank half the money to remove your name from the debt, so they can chase him for the other half. i would be surprised if they agree – legally you are liable for the full amount.
Have you actually got all spending stopped including DDs on the account?
Dave says
Thank you Sarah.
Liam says
Hi Sara,
I recently moved back to Ireland from the UK where I had been living for three years but then lost my job and fell on difficult times. I now find myself back in Dublin with £8000 of debt in overdrafts and credit cards. I have no income and no way to pay this back. I don’t know how to move forward. In my head I want to just forget about it and hope it doesn’t follow me to Ireland but equally I don’t want to be looking over my shoulder waiting for someone to knock at my door forever. But aged 37 and back living with my parents I feel desperate. What would your advice be on the best way to deal with this situation?
Sara (Debt Camel) says
Ireland isn’t very far away and you may want to return to the UK at some point?
That depends on how likely your situation is to improve. If you get a job and are living with parents you can presumably start to pay off the debts pretty fast?
If you are unable to work for some reason and you left England less than 3 months ago, you could consider bankruptcy. See https://debtcamel.co.uk/bankrupt-england-from-abroad/. For only 8k that feels a bit like overkill if your situation will improve but at the moment this is strictly time-limited, you can’t go bankrupt after the 3 months point. So you may need to make a fast decision. Sorry I don’t know how Brexit will affect this.
Unless you want to cross your fingers and hope you are never contacted OR you are going to go bankrupt asap, you should think about contacting your creditors, telling them where you are and asking them to freeze interest and charges. Otherwise your debts will be increasing.
Nigel says
Hi Sara, Our home was repossessed about 8 years ago and we had to go into emergency accommodation. We now owe about 80k. I have been doing annual income/expenditure statements with the bank since the repossession and am repaying them all of our disposable income. Our lives have become unbearable as a result as we feel imprisoned. This strain is affecting our marriage, our relationships with our children as well as my health and my job. Two years ago I applied for a credit card which to my amazement actually went through. I was given 1k credit. We have had to use this money to buy a new washing machine and a laptop for my son who is at varsity. It is now time to do my annual income/expenditure report with the bank. I did not tell them about the credit card and my repayments last year when I did my review, as I wanted this flexibility. I am paying considerably more in repayments to the credit card company then I am paying in debt to the bank. I am just worried that If I now divulge this information, they will want to know why I didn’t tell them about it at last yeas review. They will think that I have been dishonest in my income and expenditure. Do I tell them about the credit card now at this review, or If I choose to exclude this information again, can the bank actually find out this information?
Sara (Debt Camel) says
How much are you repaying the bank a month at the moment? And how much do you owe on the credit card? Are you renting or buying?
Nigel says
Hi Sara,
I am renting. I am paying £60 pm on the credit card and £30 pm to the debt repayment.
I owe 80k to the bank and about 2k to the credit card.
Sara (Debt Camel) says
OK, first to answer your question. The bank can find out about this credit card if it chooses to look at your credit record. If they did, they would not be very happy that you are paying more to a creditor you owe a lot less to. Lenders accept that when someone has financial problems, they should divide up the money they have for repayments “pro rata” between all their creditors. So from your £90 being paid at the moment, about £88 should go to the bank and £2 to the credit card…
But you are never ever going to repay this debt. Can I ask how old you both are? Do you have any health problems? I think you should ask the bank to write off the remainder of the debt because it is impossible for you to repay. And if they refuse you should go bankrupt.
Nigel says
Hi Sara
Our situation went downhill about 15 years ago when my daughter was diagnosed with Cerabral Palsy. My wife decided to leave work to look after her. One of us had to. I struggled on my income to support a family of 4. Over time we sunk deeper & deeper into debt. Our health is affected. We are sick with fear. I have severe depression as does my wife. It is having an impact on my ability to do my job. I worry about the future.
What do you mean by asking them to write off the debt. Should I be dealing with my creditors over the phone or should I be responding to them in writing only. I fear ringing them as I feel pressured and intimidated when I do.
Sara (Debt Camel) says
I am sorry to hear about your daughter. Is she still living with you?
Do you just have the two creditors – the bank and the new credit card?
This is what I mean by asking for a write off: https://debtcamel.co.uk/debt-options/less-common/write-off/. I think a letter should describe what you have said here, about how your family finances were badly impacted by your daughter’s condition, leading to the repossession of your house. If you and your wife are being treated for depression, a letter from your doctor about would help.
You should certainly not be pressured or intimidated by the bank. Who is it? Do they know about your daughter and about you and your wife’s depression? They will probably have a team that deals with vulnerable customers, and you can ask to be transferred to that.
Nigel says
Yes my daughter still lives with us. The 80k debt is with N Rock, paying £30 per month. I have a CCJ for an outstanding amount of 14k with Natwest which was a personal loan. I have been paying £30 per month for the past 13 years. I have the one credit card with Ocean, paying £60 per month.
I have told N Rock about my daughter and the situation we were in and how we have struggled. I have not had a significant pay increase at work for years. My hourly rate has gone up from £8.50 to £10.00 over a 16 year period. I have not told them about our depression or any of our health problems.
Sara (Debt Camel) says
I think you should get some help to ask for the 80k debt and 14k CCJ to be written off. Could you or your wife go to your local Citizens Advice to see if they could write the letters for you?
If the creditors refuse, then I think you should stop paying them anything and go bankrupt. That will mean saving up the bankruptcy fees which are very high, but if you can save the £120 a month you are currently paying to the debts, you will get there.
Nigel says
Hi Sara
I am in the process of getting the DMHEF forms completed but I have been asked by the doctor for the consent form, as required in the DMHEF form in step 3.
Where can I get this from?
King regards
Nigel
Sara (Debt Camel) says
It’s here: http://www.moneyadvicetrust.org/creditors/Documents/DMHEF/DMHEF%20Version%204.pdf
Nigel says
Thank you so much for your help Sara. I will certainly take your advice.
Regards
N
Bob says
I had a business that closed 2 years ago , it was in rented property , i have just got an email from a company we used saying i owe £2000 in unpaid postal fees , if i dont pay they say they will take me to court , iam pretty sure they will have no idea where i live , can they still take me to court ?
Sara (Debt Camel) says
Yes, they don’t need to know your current address to get a CCJ.
I suggest you talk to Business Debtline about this alleged debt and your options: https://www.businessdebtline.org/
Zelly says
Hi Sara, I’ve got an £1,500 overdraft with Lloyds that has been difficult to clear since I got in 2007, it was 5 year interest free student planned overdraft and I have been paying £20-80 per month since 2012 when I could; when I had regular employment I would make regular payments. I’ve been charged daily bank fees & monthly fees over the years since 2013 and struggling to clear it as pretty much making payments on interest. I stopped making payments since 17th January 2019 and received a letter from bank saying they “will” close my account on 2nd April and “may” seek to recover debt. By using “May” does this mean it’s not guaranteed? I can’t face paying them continuously, I’ve paid so much over the years and it’s made no dent; especially as I’ve asked over the phone to lower the overdraft limited as I pay but they wanted that in writing which I won’t give. My income fluctuates a lot as I’m largely self employed with a temp job here and there and other house hold bills eat away at finances. What would my options be going forward ? How quickly do debts get chased after an account is closed?
Sara (Debt Camel) says
Do you have other debts as well? Are you still using this bank account?