A reader asked if she has to pay a debt that she can’t see on her credit record.
Many people think that checking their credit record is a good way to get a complete list of their debts. And they look forward to a defaulted debt disappearing after 6 years because then they don’t owe the money anymore.
These are myths – and although they sometimes are right, they often aren’t.
Contents
What debts show on a credit file?
You may think your credit record shows the detail of your borrowing and repayments over the last six years.
But they aren’t always a complete list of your debts – they only show records from some lenders.
Almost all commercial lenders such as banks and credit cards report data. But there are three Credit Reference Agencies in Britain – Experian, Equifax and TransUnion – and many lenders only report to one of the CRAs, not all three.
And they often don’t show old information. Lenders want these records to make decisions about future lending and they care much more about recent problems than old history. So they have all agreed that they don’t want to see data about defaults more than six years ago and the CRAs delete this data.
If you are paying a debt normally, it stays until you have repaid it fully leaving a zero balance then it drops off after six years.
When a default has been recorded the debt disappears after six years. But this debt still legally exists – it has only gone because the problem was so long ago that future lenders don’t want to know about it anymore.
So what debts do you have to pay that aren’t on your credit report?
There are three common reasons why you have to pay a debt that’s not on your credit report.
Debts which are reported to a different credit reference agency
If you check your Credit Karma credit report, you will debts which are reported to TransUnion. But if you owe money to a lender who only reports to Experian and Equifax, that debt isn’t going to appear.
So the report from one of the CRAs that you are looking at is not a complete list of your debts.
If you get reports from all three CRAs (see The best way to check your credit records for how to do this) that gives you more information but there may still be debts that you owe which aren’t on any of them.
Debts defaulted over 6 years ago but where you have made payments within 6 years
These debts will have dropped off your credit reports because the default was over 6 years ago.
If you hadn’t made a payment for more than 6 years, the debts may be unenforceable because they are statute-barred. See Questions about statute-barred debt for details and talk to National Debtline about your situation if you think one of your debts may be statute-barred.
But if you have made a payment within the last 6 years, the debt is not statute-barred and the creditor can still take you to court for a CCJ … so you need to pay them.
This often happens if you are in a long debt management plan. If you stop making payments to these debts or don’t talk to a debt collector who contacts you about the debt, you may get a CCJ which will reappear on your credit record and also bailiffs or other enforcement problems. In 2019 more than a million CCJs were registered.
However as the debts are old, you may be able to get a full and final settlement agreed.
And if the debts are very old, the debt collector may not be able to produce the right documentation. Read Ask a creditor to produce the CCA agreement for details about why this is important and when to ask for this.
You also can’t assume that a mortgage lender won’t be able to see debts that have dropped off your credit record. Mortgage lenders have other sources of information they can use.
Some creditors don’t report to the credit reference agency
Some sorts of debt never show on any credit records: council tax arrears, magistrates court fines, benefit overpayments, what you owe a builder, nursery school fees, a subscription etc.
These are all legal debts even though they don’t show on your credit report.
What if you can’t afford to pay those debts?
If you get a letter about a debt that isn’t on your credit record you can’t assume that you can ignore it.
When you know the debt isn’t yours, because you have never taken out a payday loan or had a mobile from that provider say, then you should ask the debt collector to Prove It! as they have got the wrong person!
It isn’t safe to ignore a debt because you can’t pay it. You can either try to come to an arrangement with the creditor or get advice on your full financial situation. The more debts that you have, or if you have any priority debts, the more important it is to get proper advice.
There is a range of good places that can help, depending on the sorts of debts and whether you would like phone or face to face advice.
Get added to partner’s credit card?
Are you a victim of identity theft?
What should the default date be for a debt?
Shell says
Hi I have several accounts which defaulted in 2010 and sent on to debt collectors (which I have been paying £10 a month to) these were all showing on my credit report, but I have just noticed suddenly one has disappeared? The others are going to be 6 years over the next couple of months… Will they likely disappear? If so what do I do? Do I cancel the £10 per month payments? Or will I get chased for the balance? The total debt was around £8,000 but showing as £4,000 now on my file?
Sara (Debt Camel) says
You still need to keep paying debts, even if they aren’t on your credit file. As this article explains, you could still be taken to court for a CCJ if you don’t.
If you could find any money for a full and final settlement, this would be a good option for you – after so long the creditor may be prepared to accept a low offer.
Carl says
I have huge debts amounting around 18k with multiple lenders from around 2000 to 2006 that are not in my credit reports and I haven’t heard from the creditors for around 8 years. Do I need to pay these debts as I owe that much to so many companies I wouldn’t know where to start as ive forgotten who I owe and how much?
Sara (Debt Camel) says
It sounds as though these debts are likely to be statute barred UNLESS one of your creditors has obtained a CCJ that you don’t know about because it used an old address.
See https://debtcamel.co.uk/statute-barred-debt/ for information about statute barred debt and https://debtcamel.co.uk/do-you-have-ccjs/ for how to find out if you have CCJs.
Dave says
I have a debt default from Santander which is about to drop off my file in exactly 4 weeks from yesterday. However I think this should be statute barred by now through the limitation act though it’s on default. Would this be the case?
Sara (Debt Camel) says
It’s possible. A debt can be statute barred and still show on your credit file. Or a debt can not show on your credit file and not be statute barred. Or any other permutations… It depends when he default date was added and when you last made a payment to the debt. Does it matter to you if it is statute barred right now? When did you last make a payment to the debt?
Dave says
Payment was certainly before the default date. It matters as if it drops off then the big chunk of the debt owed is gone. There is one last debt of £4,000 that needs to drop off January 2017 but I want to remortgage and my credit report is Fair. I reckon it should improve once the debt drops off in 4 weeks
Amanda says
I have 2 debts outstanding with credit card lenders (for about £1600 each) that dropped off my credit file recently, but I’ve been paying token payments on both – are these debts enforceable?
Both debts have been sold onto a third party who keep chasing me for money.
As my credit score is now excellent, should I assume that my debts are statute barred and therefore I don’t need to pay them off? Even though I’m paying £1 a month as a token payment? If they’re not statute barred, should I stop paying £1 and then 6 years from then, they will be?
If I’d stop paying even this small amount, could they take me to court or now that these debts don’t feature on my file, I shouldn’t worry?
Thanks a lot
Sara (Debt Camel) says
The debts are NOT statute barred and it is dangerous to stop paying them, see https://debtcamel.co.uk/paying-old-debt/ for more details.
Nobby says
I have a default in April 2013 for a current account overdraft for about 9K. I am paying £100 per month . I understand the default will drop off in April 2019. Will the creidtor still be able to record information on the account once the six years has passed. ie , will I be able to stop payng the £100 per month without fear of poor data being recorded?
Sara (Debt Camel) says
You can’t stop paying an old debts just because it has dropped off your credit record – if you do the creditor may get a CCJ which will ruin your credit record for another 6 years! See https://debtcamel.co.uk/paying-old-debt/ for more details.
Nobby says
Ah C’est la vie. I have offered 30% in F&F which was refused. So I guess I just keep on with the £100 a month.
Thanks for the response , I didnt think about the CCJ !
Dave says
Lowell and Powell are chasing me for a capital one credit card however it’s not 6 years and it’s not on my credit file they can’t prove it’s on my credit file they tried by making an excel spreadsheet and highlighting it in red none of this debt is on any of my credit files I have told them to go away politely and it has gone to BPO I’ve told them to go away too and they seem to be offering smaller settlements each time I don’t think they can enforce this debt as they haven’t got sufficient information that the debt exists anyway .
Sara (Debt Camel) says
You could try asking them to supply the CCA agreement for the debt, see https://www.nationaldebtline.org/EW/factsheets/Pages/getting-information/credit-agreement-advice.aspx
Dave says
They have left me alone now again I think I don’t think there is sufficient paperwork to do anything they said they can see my debt on Experian which they can’t as they don’t use Experian?!! I have that in writing they are lying to me .
Alex says
I have an old debt that defaulted before 2010, I’m paying off around £20 a month and looking to get a mortgage (I now have a good credit history). Will the mortgage company look into the direct debit I pay? I may try to pay off a lump sum now.
Also, I pay £10 a month to H O Collection and have been since 2011, I can’t find any of their contact details or company information online, do you know who they may be? It’s been so long that I have forgotten the details..
Thanks
Sara (Debt Camel) says
The mortgage comapany will look at your bank statements and may well spot the payments to these old debts. Make a full and final settlement on the one you know about is a good idea. I can’t find who H O Collections is. You could try stopping paying them and wait and see who gets in contact with you?
Alex says
Hi, Thank you so much for your reply. If I stop HO Collections could I then receive a default or worse? Ive moved house since I set up the standing order so they wouldn’t be able to contact me… I’m not sure what the next best step would be!
Sara (Debt Camel) says
If the debt isn’t appearing on your credit record (I am assuming you have checked that with all three credit referenece agencies? If no it would be a good idea! See https://debtcamel.co.uk/best-way-to-check-credit-score/ for how to check all three) then the logical assumption is that it was defaulted and has dropped off after 6 years. In that case it can’t appear on your credit record again UNLESS the creditor goes for a CCJ. But if they do that they have to make contact and you can repay the debt. If you repy a CCJ within 30 days it won’t appear on your credit record.
Yes this all sounds risky. But you can’t apply for a mortgage making a payment every month to a debt collector for a debt you can’t identify either… so somehow you have to sort this out.
Alex says
It’s not showing with Equifax or Experian… I’ve tried with Noddle / Call credit and they say they can’t find enough information to produce a credit report .
Sara (Debt Camel) says
Well one plausible explanation is that it was defaulted and has dropped off. If it suddenly gets added, you can ask for the default date to be back-dated, see https://debtcamel.co.uk/debt-default-date/.
Shazzy says
Hi
I have a quick question regarding a default on my account. I had a loan with HSPF. I set up a DMP and starting paying them in Aug 2012. On my credit file, it states date of default as 24 Sept 2012, but the status history only goes as far back as Jan 2015 which shows as a default. Is this correct? Do I need to contact Lowell (new owners of debt) to amend anything?
Thnaks
Sara (Debt Camel) says
It sounds as though the debt may have been sold to lowells in Jan 2015 – does that sound right? If it does, provided the lowell debt entry is showing the original default date of Sept 12, that should be OK. The debt will then drop off your credit file in Spt 2018.
Shazzy says
Thanks for your reply Sara. It was sold to them around that time. It’s a relief to know that it will drop off!
Thanks
Shazzy says
Another question please Sara
If I sent letters to all the creditors offering token payments in July 2012 – when, realistically should the default date be? I have one creditor who defaulted the account in Sept as above and another two who defaulted the account in May 2013. Is this correct?
Thanks
Sara (Debt Camel) says
If Jul 12 was the first time you missed the usual payment, then the creditors should have defaulted it bewteen Oct 12 and Jan 13. So the May13 dates are a bit late – here is how to ask for them to be corrected https://debtcamel.co.uk/debt-default-date/ .
Shazzy says
Thanks for the prompt reply.
So should I state they should amend it to Jan 13 or the earlier date of Oct 12?
Sara (Debt Camel) says
oh you may as well ask for Oct – but if they change it to Jan, it’s not worth trying to complain to the ICO.
Susan says
I am on a dmp and I have been for sometime I still owe quite a bit and I am now due for a review. I will be offering a f&f to clear off the debt hopefully this will be accepted.
None of my debts show on my credit file, if the offer is accepted will this change ?
Sara (Debt Camel) says
It sounds as though the debts were defaulted more than 6 years ago. If you want to be sure, you need to check your credit record with all 3 credit reference agencies, see https://debtcamel.co.uk/best-way-to-check-credit-score/, as they don’t all show the same debts.
If they aren’t there, then a F&f won’t bring them back.
You might want to read https://debtcamel.co.uk/debt-collector-income-expenditure/.
Sue says
Thank you Sara
Sarah says
I am in this exact situation. The two debts in question are not showing on any any of the reference agencies. I am just about to settle one and pay the other in full. But am dragging my heals. All at the time I’m applying for a morgage! I’m slightly concerned that by paying them they will end up back on my credit file as settled! I am not sure that they were ever on there in the first place because it was over 10 years ago and the debt has changed hands several times. Can you please advise how to proceed to not make my mortgage application suffer.
Sara (Debt Camel) says
An old debt which has dropped off should not reappear if it is settled, either partially or fully.
Sarah says
That’s what I thought. Thanks so much for the prompt response x
Faye Ashton says
Hi
I am on a DMP through Stepchange for debts of around 21k and my defaults were applied in 2015.
I know that these defaults will drop off after 6 years and know the debt will remain enforceable. But can I ask, after these 6 years are up and I make a new arrangement with these creditors, will it then re appear on my credit file as a new arrangement?
How do you pay an enforceable debt if it’s dropped off? Surely you wouldn’t want the fear of it reappearing on the file again? Hope that makes sense & hope you can help me! Thanks
Sara (Debt Camel) says
Once a debt has dropped off your file, it will not reappear if you change your debt repayment arrangement or stop for a while then make a new one.
But if you are on a DMP, thet will just continue after the 6 years, that makes no difference to the DMP.
Can I ask if you have looked at your other options, see https://debtcamel.co.uk/how-good-dmp/
Karot says
Hi,
I have two defaults from catalogues showing dates of Jan 2012 and May 2013. I currently make token payments to them each month for £5 and £1 and have done so for several years. I have not had any correspondence from them for years now since setting those up.
My question is should I offer a full and final settlement now and wait for the 6 years to end or do I wait for the 6 years to end and the debts to leave my credit file before offering a full and final settlement? I know even after the 6 years I’ll have to keep paying them because I’ve been making these token payments.
Will it matter when I offer full and final payment figure in terms of when they stop showing on my file?
Apologies if these seem like completely obvious answers I just feel a bit confused about what’s best to do. Many thanks.
Sara (Debt Camel) says
The debt will drop off your file in Jan 2018 and May 2019 whatever you do. If you agree a F&F now, they will still drop off then. If you wait until afterwards and agree a F&F the debts will not reappear.
The advantage of settling the debts now is that they are out of the way and sorted. Your credit file will start to recover a bit. There is no chance of the creditors contacting you, asking you to pay maore.
Bizi says
Hello, I was defaulted in 2009 was paying some lenders till 2010
Then I went off grid n ignored all correspondence for 6/7 years. Setup clearscore n noddle accounts nothing visible since start of 2016 started building history again got approved for o2/ three contracts n a new day credit card
On both sites score gradually increasing and went from very poor to average just bit lower than local average
Now everything seems to be working out but barclays DCA all of sudden started sending me letters and on my credit file barclays account showing as active
Does its still enforceable or timebard
Many thanks
Sara (Debt Camel) says
It can be tricky to know when an overdraft is time barred, see https://debtcamel.co.uk/statute-barred-debt/ and as that says, talk to National Debtline.
ASH says
I HAVE A CCJ THAT IS OVER 6 YEARS OLD WHEN I WAS YOUNG OVER TEN YEARS AGO. HOW WOULD I PAY IT IF I CANT REMEMBER WHO IT WAS TO AND WHAT IS THE LIKELYNESS OF THEM CONTACTING ME.
Sara (Debt Camel) says
I’m not sur if you are saying the CCJ was over 6 years ago? Or over 10?
fara says
I have 2 defaults on my account one is from Natwest Credit Card which was defaulted in 10.10.13 and it shows a zero balance. There is also a Cabot Debt management which is showing a balance of £1000. I have been refused a job within a financial institute due to this. i’ve been told that if I can sort this out then the decision will be overturned and the vacancy offer can be reinstated.
if I pay this debt off (although its not mine) will cabot update the debt as settled or will it still come up and defaulted.
Sara (Debt Camel) says
What do you mean by the debt isn’t yours?
Fara says
I dont know who cabot are bit right now i just want to get it sorted as i want the job offer reinstated..
If i pay off the debt will they cabot be able to remove the defaults off my credit file
Sara (Debt Camel) says
Paying a debt will not get a default removed – that will stay there for 6 years from the default date.
You need to talk to Cabot and find out what this debt is. If it isn’t your debt then that is a good reason why the whole thing should be deleted!
Fara says
Can they delete the entire thing off?
Sara (Debt Camel) says
See my previous reply.
Sonya says
Hi,
My husband owns 2 properties jointly with his brother and sister. About 15-20 years ago, his sister took out a loan in all their names, secured against one of the properties. This was her loan for her own purposes. We have now found out that she stopped paying in 2013, and what was around £4500 arrears is now £35,000 and increasing at a rate of £500 a month. She has no intention of paying this money. My husband and I are trying to get a remortgage to get out the equity in the 2 properties in order to repay this money and buy a place of our own. The loan is not showing up on any of my husband’s credit reports. The loan company has said that the loan is in all their names. My question is, will this loan show up on a mortgage company’s search? Our mortgage advisor thought that it would, and said it would be a waste of money to pay the application fee if it would show up (causing us to be immediately rejected). However, as the loan is not showing up, he has then come back and questioned whether it might not appear and thus, we would be able to proceed with the mortgage application. Also, is there a way to run a credit report for my husband based on the property that the loan is secured against? It does show up as a linked address on his report. Any help would be much appreciated.
Sara (Debt Camel) says
Did your husband and his brother sign this loan agreement?
Sonya says
Yes they did
Sara (Debt Camel) says
My guess is that it isn’t showing on your husband’s credit record because the loan was taken out so long ago that a clause about data sharing with the credit reference agencies wasn’t included in the T&Cs.
But this is still a legal loan. You may well be asked to list loans on your mortgage application and this means all of them, not just ones showing on your credit record. If the bank’s underwriters find out about the loan then your mortgage application is going to be turned down even if you were given an initial Approval In Principle from the bank. I am not sure you are getting good advice from your mortgage broker.
“is there a way to run a credit report for my husband based on the property that the loan is secured against? It does show up as a linked address on his report.” a credit report isn’t based on a property, it is on an individual.
Sonya says
Thanks for that. So, it’s not worth submitting the application then, considering we have to pay £325 to do so?
Mike Thomas says
Hi, I have diligently been on a DMP paying debts from credit cards in the late 90s. Are these debts likely to have enforcable CCA’s from that long ago ?
Sara (Debt Camel) says
Some may but most probably won’t – it’s well worth asking them to produce the CCAs.
Kiki says
Thanks for all this great advice. I have a closed credit card debt. I tried this afternoon to call the bank to find out how much the debt is with the ambition to reach a settlement but was told it is closed their end and was passed to an agent. The debt was closed 2014 (defaulted 2009), they gave me the number for the collection agents who would be able to provide me with the amount (my guess is around £2,5- 3k). So, the reason I am trying to pay this debt is twofold. I applied for a business credit card and was refused following a credit check – they said there was no way I could access it ‘because the credit card’ – which I took to mean the one defaulted in 2009. I have recently signed up to see my credit file and have near perfect credit but for 23 points…which is because I have no ‘settled’ credits… I was hoping to offer the credit company an amount to create a settled debt on my file? The credit card debts do not show on my credit report anyway so may be I am jumping the gun? Also, I am reluctant to call the company in case they begin pursuing me or re-open the debt. (I will be seeking a mortgage in the short to medium term, hence the desire to get my credit on point). I hope you can help.
Sara (Debt Camel) says
When did you last make a payment to this defaulted debt – in 2009?
Were you applying for a business account with the same bank this defaulted card was with?
Kiki says
Yes the last payment would have been some time 2008/2009. No this was a business account with a different bank, I got the business account with them, but they turned me down for a business credit card :(
Keith says
Hi, I gave up my property for repossession, to GE money, in early 2007. There was a second mortgage on the property, with Kensington Mortgages. GE sold the house so cheaply, and slapped such extravagant costs onto the repossession, that there was nothing left from which to repay Kensington. I have had no contact with either company since early 2007. I have just noticed that the Kensington debt is registered with a credit reference agency. The balance, every month since April 2011, is recorded as being £37,495. There is no default registered and, under ‘Status’, it says ‘Up to date’!
Is this normal practice? In what sense is it up to date, given that I have had no contact with the lender since repossession in early 2007? I vaguely recall that back then Statute of Limitations was 12 years with mortgages. Is this still the case today?
Thanks
Keith
Sara (Debt Camel) says
Yes, 12 years is correct but mortgage repossession debts are complicated. I suggest you talk to National Debtline 0808 808 4000 about this debt – if it isn’t statute barred it may be better to ignore the entry on your credit record until you are sure that it is, at which point you can ask for a default to be added.
Keith says
Cheers Sara for the advice and phone number
Keith
Natalie says
Hi,
I have an old debt with Egg/Barclaycard that I stopped making payments to in 2013. On my Noddle file it shows that a default was added in early May 2011, so I’m expecting that to drop off next month sometime. On my Experian file, the debt isn’t recorded at all. But on my Clearscore file, it shows the debt, without a default and says it was last updated by the creditor in 2013. What can I do about this? How long will it continue to show on my clearscore file? And should I be querying why the default is not showing on this one? I want to apply for a mortgage soon and don’t want my clearscore file to mess things up. How would lenders view an outstanding debt if the creditor hasn’t updated it for 3 years?
Sara (Debt Camel) says
What it comes down to is that if you want a mortgage, you need to pay this debt. the debt on your Equifax record (which is what you can see on Clearscore) should have a default added to it back in 2011, this will make it drop off your credit record. But asking for this will wake up the creditor who seems to have gone to sleep… and they will want paying.
Natalie says
Thanks very much for replying. I realised that the Clearscore report is not an accurate reflection of what’s on my full Equifax file. I managed to get my full report from Equifax and the default is showing on there along with some other things that were missing from the Clearscore version.
I hope you don’t mind but I have another quick question. I have a debt that I paid in full last July, which had a default against it. I paid the money to the DCA, default is from the original lender. However the original lender hasn’t updated my credit file to show balance is paid. DCA have confirmed that account is closed. I have complained to the lender, 8 weeks and they hadn’t resolved so I sent to FOS who are looking into it but no idea of timescales. I’ve also reported lender to ICO for reporting inaccurate data about me. Also, I’ve managed to get Experian to add a notice of dispute but that’s not really worth much. Is there anything else you think I can do to get this resolved quickly? The lender continues to report monthly that the balance is still outstanding.
Sara (Debt Camel) says
That’s interesting. There were a lot of reports that Clearscore can be inaccurate in its early days, but I was hoping they had resolved those problems :(
re this other problem, it sounds as though you have done everything sensible at this stage. These sort of cases don’t usually take to long to resolve at the FOS, so fingers crossed it will get sorted rapidly. Come back if you have problems?
Natalie says
Ok will do, thanks very much!
Nikki says
Dear Debt Camel
I have read some interesting bits on old debts. My ex husband had a ltd company loan in 2007 for his company from lloyds, he and I seperated in 2009 and I left our home, the company folded and the house was repossessed as there was a guarantee for the business loan, but lloyds then also went to court in 2010 seeking a money judgement, which I always thought was not granted. I knew nothing of these court cases at the time and received nothing from the courts before or after, but did hear from debt collectors and a solicitor on behalf of lloyds in about 2011, I disputed the debt with all and did a subject access request, received nothing, went direct to lloyds for SAR, nothing, went to ombudsman about miss selling etc, eventually received only info on me which was nearly nil, they said they lost my file and was entitled to nothing on business and that they had passed debt to third party. Still hoping for my day in court as they never said ccj was awarded, got some advice recently and the solicitor said I had a ccj in 2010!, went to the court and they said a judgement was made in 2010 that was not to be enforced without leave of the court but was never registered against me, I asked her to clarify and why had I received nothing, she asked me to phone and basically said the same over the phone, when I said why did I never receive what and how to pay etc she said because it wasn’t registered!!, can I get this set aside??? Sorry to waffle and many thanks if you can help, great website………sooooo helpful!
Sara (Debt Camel) says
That sounds a rather odd story.
If there was a CCJ in 2010 then it is more than six years old and can’t be enforced without going back to the court. It sounds as though this was what “the” solicitor told you? But was this “your” solicitor? If it was, did the solicitor tell you, therefore, you didn’t need to pay the debt?
If you have only just found there was a CCJ you could apply for a set-aside, but then the creditor could simply restart the case. If they can’t produce CCA agreement, that is a good defence, but I am not sure whether it is worth going through this hassle if there is no prospect of the debt being enforced.
If you don’t feel confident about following the advice from your solicitor, you could discuss the case with National Debtline https://www.nationaldebtline.org/.
Nikki says
Thanks for replying!. It was an independent solicitor, I felt she leant very much to the creditors as she chases the debtors!, yes she did say that they would have to go back to enforce but there was no time limit them on them doing this and depending on the judge they may be allowed, this scared me, she said they may be waiting for me to have an asset! So when I get one maybe they will pounce and this could be 1 yr or 5 yrs!! I would like to move on, I need a line in the sand more than this think!.
She never mentioned getting it set aside as an option! and as they have lost my file and never told me of it, if I can get it set aside and they start again maybe they won’t be able to get another ccj as time barred now, is this right maybe? What is a cca agreement? Also when I mentioned to her about bankruptcy she said they may not accept my application as no one is chasing me at the minute!? Many thanks again!
Hari says
Hi Sara
I have approx £30k worth of debt with 3 Credit card companies (Egg, HSBC, LLoyds) which are about to fall off my credit file next month. I am aware I will still be liable for these debts. I am currently paying £15/mth directly and not with DMP. I have suffered with depression and anxiety because of these debts for many years. All the debts are pre April 2007.
Questions:
1) Should I be requesting CCA from all three? I am anxious they may chase me more aggressively and look to get CCJ which would put me back another 6 yrs.
2) I am aware that they must provide “prescribed terms”, are they like to have these? What are my chances?
3) If they do provide CCA, what should I do? I don’t have the funds negotiate f/f but will do in couple of years. Do I set up DMP to stop the calls and letters and stop them applying for CCJ? Or pay them directly but risk getting CCJ?
I am feeling very confused with what action/strategy to take and my anxiety is not helping. I am hoping you could give me more clearer picture.
Many thanks in advance.
Hari says
Morning Sara
I would be very grateful if you can advise me on above questions pls?
Thanks in advance.
Sara (Debt Camel) says
I think it’s sensible to ask for CCA agreements for all pre 2007 debts. Template letter is here https://www.nationaldebtline.org/EW/factsheets/Pages/getting-information/credit-agreement-advice.aspx and National Debtline are good to talk to if you get something back claiming to be a CCA agreement but you aren’t sure if it is complete.
Don’t stop paying them when you ask for the CCA. And if they produce it, you just carry on paying them.
Doing this may make a creditor look at your case. They may then ask you to provide a new Income & Expenditure sheet – if that shows all you can afford is £15 a month and that is what you are paying, it is unlikely that they will take you to court for a CCJ.
Your other option is to continue paying the money to the debts until you have funds to make a settlement offer, and ask for the CCA agreement at that point. But that means continuing to pay out and worry about all three debts in the meanwhile, which may be unnecessary!
You have a self managed DMP at the moment. Setting up a DMP though StepChange or any other DMP company doesn’t change the chance that you could be taken to court for a CCJ.
Are you buying or renting?
Hari says
Many thanks for your reply Sara.
Are you buying or renting? – Not sure what you’re referring to but if it’s my house than I am living with parents.
As the debt is pre April 2007, what are the chance of them having the prescribed terms? Forgot to mention that the debts were bought by Cabot and Robinson Way. They have made settlement offers on two of the debts at around 30% of the debt which may indicate that they don’t have the agreements, pls advise.
I am currently unemployed and may set up a business but my income & expenditure would show for next couple of years that I am not able to pay more than £15/mth. If I am able to show that that’s all I can afford, are they still likely to take me for CCJ? My biggest concern is getting CCJ as my credit file will be totally clean after next month.
Am I correct in saying DMP through a company would only stop the calls, texts and letters? Are the chances of CCJ lower with a DMP company?
Apologies for asking again, my anxiety doesn’t help my situation.
Thanks
Sara (Debt Camel) says
“As the debt is pre April 2007, what are the chance of them having the prescribed terms? Forgot to mention that the debts were bought by Cabot and Robinson Way. They have made settlement offers on two of the debts at around 30% of the debt which may indicate that they don’t have the agreements. ” There is a reasonable chance that they can’t produce the CCA agreements – it is well worth asking in my opinion. If you are unsure, why not call National Debtline and talk to them about this?
“I am currently unemployed and may set up a business but my income & expenditure would show for next couple of years that I am not able to pay more than £15/mth. If I am able to show that that’s all I can afford, are they still likely to take me for CCJ?” No it’s not likely. It is a possibility though. Of course if they can’t produce the CCA they won’t be able to get a CCJ.
“Am I correct in saying DMP through a company would only stop the calls, texts and letters? Are the chances of CCJ lower with a DMP company?” using a DMP company is much the same as doing it yourself. If you are very anxious, you may prefer to have the DMP company in between you and the creditors. But the chance of a CCJ is probably about the same.
Hari says
Many thanks Sara for your help, it’s appreciated.
CCA has been sent for all 3 agreements.
Michaela says
I have a defaulted account with virgin mobile I have tried ringing them numerous times to pay it but they can never find me on the system. I haven’t received a letter from them in years but it is still on my credit report what do I do? They are telling me I don’t have account with them and I don’t owe them any money.
Sara (Debt Camel) says
So annoying! I suggest you put in a written complaint to Virgin Mobile’s Data Controller. Say you have been told numerous times that you don’t owe them any money so you want the record removed from your credit record.
rachael says
Hi
I need to look into this more with exact details, but I still liven the house which I jointly own with my ex partner ( he left 6 years ago) when we were together , he took a loan out with santander for £25,000 in both our names ( think this was about 2006 ) he stopped paying the payments at least two years before he left leaving a remaining balance of £17,000 they told us they took out a charging order against the property , we never went anywhere near the court or received any paperwork from the court though we did receive something from land registry , I have always believed once the property is sold they will automatically get their 17k. My ex partner ignores the letters from all his debris so i have them on the phone about once a year asking me to enter into an agreement which i decline as they openly admitted to me once i start the agreement they will pursue me for the entire debt ( plus i really can’t afford to pay them more than £50 a month at a push) and i’ve always said you will gt your money eventually once we sell the house and this is the fairest option as its a joint debt. Reading into things I’m not sure I have even got a charging order and none of this appears on my credit history. So how do I find out if I have anything against my house ? and also because nothing has been paid on this loan in the last 6 years can i send a letter not acknowledging the loan and state its statute barred ?
Sara (Debt Camel) says
You can check on the land registry (https://www.gov.uk/search-property-information-land-registry) if there is a charge against the house.
There shouldn’t have been a charge unless there was either a CCJ or the original loan was a secured loan.
If there was a CCJ more than 8 years ago then it would have dropped off your credit record 6 years after the judgment date, so more than 2 years ago.
If there was a CCJ, then the debt will never become statute barred.
Karen says
I have had a dmp for a few years now 3 months ago they wrote to me telling me they were ceasing trading with immediate effect and to find alternative DMP I emailed them and asked them to send me a full list of creditors and balances and reference numbers etc so I could approach a different DMP … I’ve heard nothing back. I am now really worried I don’t know what to do.
Sara (Debt Camel) says
Hi Karen,
who is the DMP firm? That is very poor behaviour by them… I suggesting phoning them.
I have written about your options where your DMP firm closes here: https://debtcamel.co.uk/dmp-firm-shut/.
You can probably create a list of your creditors from your credit records – see https://debtcamel.co.uk/best-way-to-check-credit-score/ for how to check all three credit reference agencies for free. It would probably be a good idea to do that anyway to cross-check the list your DMP firm should have sent.
I know this is really worrying, but it is a situation where your creditors will be understanding. they are as fed up as you are that your DMP has been disrupted. They aren’t going to rush to court, they will give you time to get sorted.
Karen says
Hi.
Initially they were called money freedom. Then name changed to laurence Charlton ( if I remember rightly ) I just used to pay my monthly direct debit and fill in my 6 monthly review etc until I had this letter saying we are now ceasing trading as of now !!
I’m apprehensive about approaching a different DMP company as I was paying £103 per month but this company had £30 of that for their fees . I did try last year to clear the small amounts on my plan they did give me the details of the small amounts ( ie £300 & £100 ) at the time and I paid those off but since they said they’ve stopped trading I’ve heard nothing.
Sara (Debt Camel) says
Lawrence Charlton are part of a larger group called Fairpoint who are definitely still going. I suggest calling them up and being persistent – you are entitled to this information about your debts.
At least all this hassle will have the benefit of you moving to a better DMP firm that doesn’t charge you anything! Both StepChange and Payplan are both used to getting calls from people in your situation and will try to make it as painless as possible. See that link I mentioned about what to do if your DMP firm closes.
Karen says
Yes fair point I remember seeing that name too in the past. I sent emails with my refrence number on etc asking for the information to be sent yo me asap but nothing. .. not even had any creditors sending letters which I also find strange… I will email them again today. Thank you. I’ll also check your link you sent.
debbie says
Hi Sara, I’m looking for advice with regards to an old debt with Lloyds TSB. I had a current account with them in 2004 which they without telling increased the overdraft limit from £400 in the January to over £2700 by the December. They increased it from £400 to £1688 in the September and to £2712 in November and down to £2558 in December all to cover charges they were applying to the account. They wouldn’t accept my offer of payment and eventually the debt was sold to Lowell in 2006 who I have been paying £10 to ever since. It wasn’t until this March when I found your site that I realised I could have made a complaint which is what I have done and it’s now with and adjudicator.
The thing is that Lloyds are saying they will not give permission for this complaint to be considered unless the the Ombudsman believes that the delay was as a result of exceptional circumstances. I’m not sure what is meant by ‘exceptional circumstances’. Any advice would be welcome.
Sara (Debt Camel) says
See http://www.moneysavingexpert.com/reclaim/bank-charges#step2. I would be very surprised if the Ombudsman would consider a complaint about something pre 2006. You can send it to the ombudsman and explain you were unaware you could make this sort of complaint but keep your expectations very low.
You seem to have a very large number of complaints about a variety of different sorts of debt. Can I ask how much you currently owe overall? Are you buying or renting?
debbie says
The total debt is about £30k and my husband is the only one on the mortgage. Until I found this site I was burying my head in the sand, I have arrangements with most of the PDL, credit etc but would like to try and sort everything out and be clear. I have put in complaints and am getting responses back now. Have a couple of complaints upheld in part but have disagreed with the adjudicators findings so they have been passed to the ombudsman.
Sara (Debt Camel) says
Well when you get to the end of your complaints, you need to review your full situation.
Josh says
Hey there,
Firstly thanks for all the help on here, it’s great!
I have a debt of just under £1000 to Lowell LTD from the Three network, they haven’t contacted me and the only way i found out was via Noodle. Was wondering on what i should do? Is it worth just leaving it (the debt is now 3 years old) and waiting another 3 years for it to go OR should i start to pay up in small payments until debt is gone.
I’m keen not to make contact as don’t want to ignite something.
Thanks!
Sara (Debt Camel) says
This article covers your situation I think: https://debtcamel.co.uk/no-calls-or-letters-about-debt/
Archie says
Hi,
Many thanks for creating such a resourceful site, please could you advise I initially had a debt with HSBC on a credit card which I defaulted not sure about dates but would think about 2008-2009. It use to show on my credit file then – Which is no more there now.
It was eventually sold off to Arrow Global and have been making regular payment on the debt to arrow due to change in circumstances , however I noticed that arrow Global put in a new default in 2015 when debt was sold to them can the do this. I have emailed HSBC to give me exact date debt went into default.
Please could you advise.
Sara (Debt Camel) says
Arrow should have used the same default date that HSBC used. There must have been a default date on the HSBC debt, otherwise it would still be showing on your credit file, as defaulted debts are kept for 6 years from the date they are closed. So when you get this date from HSBC< put in a complaint to Arrow and ask them to correct the default date.
Lionel says
I am on a DMP and none of my debts show up on my credit report. If I repay all off my debts with a lump sum will they show on my report again? Will I need to declare my DMP to a mortgage lender if it’s not on my file and is paid off fully?
Sara (Debt Camel) says
If you settle your debts now, either in full or with a partial settlement, they will NOT reappear on your credit record. There is no need to declare the old, settled debts on a mortgage application.
BUT you will want to wait at least 3 months before applying so the DMP payments don’t show on your recent bank statements. Also if you are applying to Halifax, say, for a mortgage and you had a Halifax/Lloyds debt in your DMP they will be able to see that from their own records even if your credit record is clean.
Gemma says
Hi
I have a debt with hmrc. It is for self assesment fines. I believe my employer at the time who was proven to have not paid any employees tax and Ni has registered me as self employed to cover his back, his wife was my best friend and so had all relevent info. I only found out when I called a year later to registered and wasvtold I was already registered and had fines. I told them I was not and had never been until the date i was calling to register myself.
I have never been able to submit my self assesments because they have rejected my start date. I have been told to just submit the form and say i earned nothing but i was claiming maternity allowance for over half that year.
So basically i am left with almost 7k debt in fines (i didnt earn enough to pay tax).
Is there anything i can do to contest this as its all falling on deaf ears with hmrc?
Sara (Debt Camel) says
Did you have payslips from this employer?
Gemma says
I did but when I looked thsy had no company number on them and the company has since been liquidated.
Sara (Debt Camel) says
That is some proof that you thought you were employed, not self employed. I suggest you talk to Tax Aid http://taxaid.org.uk/ and see if they can help.
Daisy hoves says
Hi,
I wondered if someone could help/give some advice.
I received a letter early last year to say I had a CCJ from 2006 for a £400 02 phone bill. That was the first I heard of it and the last.
I am looking to rent and knew credit checks where going to be made to I signed up to clear score to check mine and the CCJ was on there. But it doesn’t show it from 2006 it says it’s from january 2017 this year!! I don’t understand how that is possible when it was 11years ago.
My reference and credit checks are going to be checked this week, if I made the CCJ payment will be showed as paid and I will still be in a chance of renting this property?
Any help or advice would be much appreciated
Sara (Debt Camel) says
Paying the CCJ will probably not improve your chance of renting a property. First because it takes several weeks for the CCJ to be marked as satisfied on your credit record. And second because landlords that care about CCJs will usually not accept you even if it is paid.
Have you looked at Trust Online https://debtcamel.co.uk/do-you-have-ccjs/ to see if the CCJ shows there? If it does, you need to contact the court and ask when the CCJ was.
Danni says
Hi iv had a ccj disappear off my credit report before the 6 years it just disappeared about 2 years into it can you tell me why this happened or do you know of any reason why this would happen as the company is still chasing me for payment of the ccj but it no longer exists on my credit file and my credit score is going up
Sara (Debt Camel) says
I can’t think of a good reason for this!
Nigel says
With regard to DCAs – if original lender sells debt on and marks as ‘settled – £0 balance’ and the DCA doesn’t have adequate proof of the CCA, can the DCA still add the debt to credit report in their name and later make it delinquent if unpaid?
Sara (Debt Camel) says
Yes. The debt still exists and if the DCA manages to find the CCA then it may then be enforceable.
Jeremy says
Hello, I was issued with a default notice on a credit card debt by MBNA in 2011, which then changed to Arrow Global without any notification. T
The last payment was made around November or December 2010. I had a dispute over the amount owed and stupidly took the advice of a company that told me that MBNA had broken the terms of the agreement and that i shouldn’t pay them. (Worst mistake I ever made).
he default dropped off of my credit file in July this year but since August I have been hounded by a company called CIC who appear to have purchased the debt. They have offered me a lower settlement than the original amount, which i’m temped to take up but my question is will this be recorded on my credit file? They tell me that if i pay the offered settlement amount they will mark my file saying it was partially settled. As I will be applying for a mortgage in 2018, I would like to keep a clean credit file if possible so I’m not sure if this is a good idea or not.
I would be grateful for any advice.
Thanks
Sara (Debt Camel) says
It sounds as though the debt may be “statute barred” – see https://debtcamel.co.uk/statute-barred-debt/ and talk to National Debtline as that article suggests. In this situation you could offer them a really low amount in settlement, like 5 or 10%.
If you do make a partial settlement (also called a full & final settlement) then this will not reappear on your credit record, see https://debtcamel.co.uk/ff-credit-record/ for details.
Jeremy says
OK thanks very much for you advice. Much appreciated.
Jeremy
Lee says
Hi. I had a payday loan in 2012 which i eventually defaulted and set up a payment plan. After a while I stopped paying altogether and heard nothing for a few years. I recently received a letter from a dca asking for the money and offering me a 60% discount. I purchased a £1 credit report from Experian however there is no sign of this debt or default, it’s not there. I asked the DCA for proof and they sent a copy on the automatically generated contract created during the application which is about 10 pages. There are no transfer of ownership documents or deeds supplied. They have given me 30 days to accept the offer before it expires and they say that they may pass it on to a solicitors for collections through the courts. The offer is tempting but I’m worried about the partially satisfied on my report. Since there is no sign of this debt on my Experian report I’m worried that paying will actually make my report worse since there is no sign of a default. At the same time I’m worried that I’ll miss the opportunity to get a discount or that I will have to go through the lengthy process of defending a ccj. Please help
Sara (Debt Camel) says
Have you looked at your Noddle report? Not many payday lenders report to Experian. You need to know what that says and what default date is showing if any.
Who is the DCA? Who was the payday lender? Did you have other loans with them before this last defaulted one? Other loans with other payday lenders?
Adel says
Hi Sara,
I have 3 outstanding debts none of which show on my credit file. I requested the credit agreement for each debt at the beginning of Jan and all 3 acknowledged my request but none have provided the information. I made the requests thinking that it might make it easier for me to reach a F&F settlement with them. They all turned down my previous offer. What is the best way to proceed now? I need to get this situation sorted out so that I can make a mortgage application next year. I don’t want to continue making payments since they will show on my bank statement.
Thanks in advance
Adel says
Further to my first post. I’ve had a letter today from the company that holds two of the debts saying that they cannot find either CA and that they acknowledge the agreement cannot be enforced. They say they will still continue to pursue the debt.
Do you think they will be likely to accept a F&F settlement now? Last time I offered 40%.
Sara (Debt Camel) says
I think they should bite your hand off to get 40% if they can’t find the CCA. I would suggest offering 10%. Or just ignore them as they don’t show on your credit record! Paying these debts will NOT improve your credit score at all.
Katarzyna Maria says
I sent letters to my creditors “Time has run out to recover a debt” and they answered that time hasn’t run out but they didn’t send a proof of that. So what should I do please?
Sara (Debt Camel) says
What are your debts? when did you last make a payment to each of them? do you live in England?
Katarzyna Maria says
Credit cards, over 6 years ago and yes, I live in England.
Sara (Debt Camel) says
Are your creditors chasing you for the debts?
ds says
Hi,
I am currently in a DMP with Stepchange and have been for many years, my defaults have come off my credit file last year, so no “bad” debts are showing, and they are all with DCAs.
I have written to all the DCAs asking for my CCA and they have written back saying that they do not have one, probably because i took these agreements out around 1992
I have tried a couple of early settlement offers just to get rid of the situation but they have all been rejected, apart from obviously paying the debts off in full, could i just stop making all payments to the DCAs, hoping that this would make them try to settle?
If i went down this road what is the worst they could do to me, without in the meantime them finding the CCA.
Could they re-default my credit file as i have stopped paying them? And would i better off leaving Stepchange to do this.
Thanking you in advance for your advice!
Sara (Debt Camel) says
Whilst you are still making payments there isn’t much incentive for the lenders to settle. The lenders can’t add another default.
This factsheet covers CCA agreements: https://www.nationaldebtline.org/EW/factsheets/Pages/getting-information/credit-agreement-advice.aspx. I understand its scary stopping payments – I suggest you talk to National Debtline on 0808 808 4000 about your situation and the replies you have as I think that may reassure you.
Emma says
Hi, if I sign up to Clearscore to check my credit score & credit history can previous debtors see that I am checking this?
Emma
Sara (Debt Camel) says
No.
Ashley says
Hi i have a letter form lowell solicitors saying Im going to be taken to court about a debt with a mobile phone company from 2010 debt sold to them in 2014 letter says. I have never made a payment or spoken to them about the debt it’s not on my credit report do I owe the money or is it statue barred
Sara (Debt Camel) says
Is this a Letter Before Action/Claim? See https://debtcamel.co.uk/letter-before-claim-ccj/ which describes what one looks like.
Ashley says
I believe it might be yes
I have checked all 3 credit agencies and the debt is not on any of those what are my next steps
Sara (Debt Camel) says
If it is a letter Before Claim, you need to complete and return the Reply Form as that article says.
This article looks at whether it may be statute barred: https://debtcamel.co.uk/statute-barred-debt/ – talk to national Debtline – this is not something you want to get wrong and you can’t assume it is statute barred just because it doesn’t show on your credit record.
Danielle says
Hi, I have a loan with Buddy Loans which I have been paying faithfully over 4 years. It’s due to finish in 2019 but I have just noticed it doesn’t appear on my credit file. I use checkmyfile so get to see all three. Is this allow??
Thanks
Sara (Debt Camel) says
Check My File does not give you data from Experian, only the credit score. So I suggest you check Experian using MSE’s Credit Credit Club which is free.
See https://debtcamel.co.uk/best-way-to-check-credit-score/ for details about credit score checking. I dislike the way Check My File buries the facts about its data sources in the small print. I think a lot of people are being ripped off thinking it’s worth paying for this. It’s a lot of money, it would be better to use the £180 a year to pay off the also very expensive Buddy loan. I suggest you cancel it and use the free checkers.
Andrew says
I have just received a letter from my bank suggesting that I owe money and the debt has been passed onto a debt collector (Mortcroft debt collectors)
I received a letter from the collectors exactly 2 days later.
I have no idea what this is for and having just been agreed a mortgage and all my credit checks have come back spot on. My credit score is good and I’ve also done 2 credit checks using 2 of the mentioned ways and yet nothing had flagged up.
It wouldn’t have been wise for me to lie about any outstanding debt while trying to buy a house.
Everything I’ve had had been delt with and or completed.
Could this be a scam or is it worth some more digging??
Sara (Debt Camel) says
It’s not a deliberate scam, but it could be an error or it you may be possible for you to challenge it. You need to find out what it is. I suggest you email Moorcorft saying you don’t know what this alleged debt is, you have no memory of it, and ask for details about it: what the debt is (loan, credit card, overdraft?), when the account was opened, and a statement of the account showing your last payment to it. Put the word “alleged” before the word “debt” every time you use it, so you aren’t acknowledging the debt.
Andrew says
Ok thanks for that. Is it also worth contacting my bank aswell as I’ve heard nothing from them either about any outstanding money etc. I don’t use another bank even though i do have an account else where that’s empty.
Sara (Debt Camel) says
Moorcroft are collecting on behalf of the bank. If Moorcroft don’t provide clear answers, ask the bank.
Louise says
Hi Sara,
I have been paying a debt management plan via CCCS since 2005. I had approximately 6 creditors. Only 1 has remained on my credit report (I checked Noddle and Equifax). There is no default date. Can I ask the creditor to add a default date longer than 6 years ago? Are they obliged to do this? Would it disappear straight away if they agree? The account on Noddle shows ‘open’. I would’ve thought it would show as ‘closed’.
Also, I want to apply for a mortgage. The collective debts still left to pay on the DMP come to £13,500. Is it worth asking for full and final settlements as I believe these can’t reappear on my credit report?
Louise
Sara (Debt Camel) says
Yes you can ask for a default to be added. See https://debtcamel.co.uk/debt-default-date/. This is a good idea.
BUT this won’t help you get a mortgage, it’s not your credit record that is the problem here, it’s the fact you still owe 13,500 on a DMP the lender won’t like, and they will be able to see that from your bank statements.
Can I ask what sort of debts these are? Credit cards, loans, or overdrafts? Because their may be another option for you.
Louise says
Thanks Sara, I have spoken to Idem today regarding the only debt that shows on the credit file and they confirmed there is no default whatsoever. Can I still ask them or the creditor (MBNA) to add a new default going back longer than 6 years ago? I also asked them if I paid their debt now in full which is £316, would this drop off the file straight away. That said yes but from what I’ve been reading, this would take 6 years as it currently shows ‘in arrears’. Can you confirm please.
My debts are a mix of credit cards, loans and overdrafts.
louise says
Hi Sara, did you see my last reply? I have spoken to Idem and they are going to contact MBNA (original creditor) to see whether a defalt can be added to the credit report. MBNA confirmed the default was issued in Sep 2012 but this hasnt been added to my credit file. Thanks
Sara (Debt Camel) says
No, I missed it. Getting MBNA to add a default in 2012 is a good solution.
Caroline says
I have recently come in to a little money and thought it would be put to best use to pay off some of my old (10 years) debts that I’ve been paying just £1 a month but when I check my credit report there is no sign of any of them even though my report on noddle says my rating is 2/5 (557). If these debts are no longer showing on my file, and I’ve been paying regularly, although be it a measerly amount, why is my rating still so bad.
If I pay these debts off now in completion, will my rating get better or is there another way to get my rating back up to at least something a bit more respectable?
Thanks.
Sarah phillips says
It’ll make no difference as they’re not showing. They’re too old to show or be having an impact on your score. If you’re paying through a dmp then pay extra to them and they’ll divide it up x
Sara (Debt Camel) says
Paying these old debts will NOT improve your credit score. You need to look in detail at your credit record and find out why it is so low, because these old debts are not the problem.
Caroline says
Thank you both for replying. I will do some more investigation but still pay some off to give me some peace of mind.
Thanks again.
Sara (Debt Camel) says
Oh it’s good to settle the old debts, but just don’t expect your credit score to improve! See https://debtcamel.co.uk/debt-options/less-common/full-final/ for how to make a full & final settlement offer to clear out as much of the old debts as possible.
Fiona Chadwick says
2 years ago I received a letter from Cabot Financial advising I owe TSB over £300 (looks like they bought the debt off them). I called to advise that I have had no dealings with TSB since 2008 and said I wanted to dispute the debt. They said the disputes team would call me back. I heard nothing so assumed that this was a scam. A year later I received another letter. Again I called and asked to speak to the disputes team as I have no knowledge of the debt. They said they would call me back as their systems were down. I received no communication from them. Recently I applied for a mortgage to find I have a default on my account. I have Experian, Equifax and Clearscore and none of these registered the default otherwise I would have chased it. The mortgage broker advised me to pay off the debt to mark it as cleared on my report. However surely this should so called debt would be Statute Barred? In urgent need of advise on what my next steps are. Should I have paid this off?
Sara (Debt Camel) says
No you shouldn’t have paid it, but you should not have let the matter drop, especially the second time! And it would have been sensible to have checked your credit record well before applying for a mortgage.
What default date is showing on your credit record? Have you put in a formal complaint to Cabot about why they have no got back to you about this disputed debt?
The problem is if you pay it now, there will still be a lot of mortgage lenders that will not consider you for a mortgage. Unless your broker can guarantee that he knows a lender that will give you a mortgage at a good rate…
Fiona Chadwick says
At the time the first letter came I had a 2 month old baby and unfortunately PND and seriously believed they would call me back. obviously when the 2nd letter came around I assumed it was all a scam to get money out of me as I had no knowledge that TSB had been trying to get in touch me with since 2008 as I had no correspondence or calls. We did check our credit scores prior to the application and the default wasn’t on any of the credit report sites I use. Our mortgage broker even checked to see if we were missing anything but he couldn’t find anything either. We don’t know anything about this default expect that its from TSB and like I said I’ve not had dealings with them since 2008. I’ve chased Cabot and they haven’t got back to me as yet.
Sara (Debt Camel) says
Right, so what credit reports did you check – Experian, Equifax and Call Credit? If there is one of those you didn’t check you need to look now – see https://debtcamel.co.uk/best-way-to-check-credit-score/ for how to do this for free. You need to know which shows this default and what the date of the default is. Also what type of debt this was – credit card, overdraft or loan?
Chasing Cabot – was this on the phone? You need to start following up any phone call with an email “As I have just discussed on the phone with xxxx, I want to complain etc etc”. Phone is good if you want something done in a hurry, but you need things confirmed in writing.
Fiona Chadwick says
I’ve had Equifax for years and it didn’t list it on there. The mortgage broker advised us to use clear score and experian. so we did this and the default wasn’t listed. I will use Call credit to see if thats different. I think it was from an over draft as in 2008 I asked Halifax to handle all the transfer all my DD and money from TSB. can only assume that during this time a DD came out before they transferred it and it went into the overdraft. I haven’t called cabot I sent them a email through their systems and waiting on someone calling me back. I will make sure that back myself up on everything they say over the phone. thank you for your assistance so far on this matter
Karin says
Hi,
Note sure if this is relevant to this topic, but my question is – who is responsible for removing old loans from my credit file. The CRA or the lender?
I know CRAs only show what lenders have reported to them, but do they also have to ask the CRA to remove the entry in the end of the 6 years or this done somehow automatically by the CRA?
I have a loan that was settled 6 years ago (with no default) so it should no longer be on my credit file but it still is. So I was just wondering if the CRA automatically removes such information or will they do it only after the lender has asked them to do it? Should I complain to my lender for not removing it in 6 years from when it was settled or should I complain to the CRA.
Thanks!
Sara (Debt Camel) says
When was the settlement date on this loan according to the CRA?
Karin says
Hi Sara
It was May 2012. Is the CRA responsible for deleting the information?
Thanks
Sara (Debt Camel) says
I want to double check. You can see on the CRA record that is has a settlement date of May 12, with a zero balance showing – is that correct?
I am not asking when you settled it, I am asking what the CRA record shows, because it may be wrong.
Karin says
Yes, the credit file shows as settled in May 2012.
Gareth says
Around 10 years ago we got into problems and ended up defaulting on 5 loans and credit cards for approx £50k. At the time we negotiated a payment plan with them all and have religiously paid every month ever since, which has reduced the debt to around £25k which is what we could afford. It was amicably agreed and no CCJ’s were issued.
I now want to clear them off completely and am attempting to negotiate settlement figures with them all. Am I correct in thinking that because more than 6 years has passed then nothing will appear on my credit report (which is 999 with Experian)? I really want to avoid doing anything to lower the score but finally want to get them paid off once and for all.
I also want to take on the liability of my current mortgage (which has never missed a payment) as my partner and I have separated. They want to get a fresh mortgage and me take this one on – which I can fully afford. Would settling these old debts effect us both in any way?
They have all been sold on at various times along the years, is it worth going down the CCA route as well?
Sara (Debt Camel) says
“because more than 6 years has passed then nothing will appear on my credit report (which is 999 with Experian)? I really want to avoid doing anything to lower the score but finally want to get them paid off once and for all.” if they have already dropped off your credit record, they will not return. the only thing that could harm your credit record from here is a CCJ.
“They have all been sold on at various times along the years, is it worth going down the CCA route as well?” Yes it is. After 10 years there may well be at least one of the debts where the creditor cannot produce the CCA. The risk with this is that if they can find the CCA then you have to make a sensible offer to settle, but I assume you are going to do that? What sort of offers are you planning on making?
“I also want to take on the liability of my current mortgage (which has never missed a payment) as my partner and I have separated. They want to get a fresh mortgage and me take this one on – which I can fully afford. Would settling these old debts effect us both in any way?” Well you both have to get the DMP debts settled before you try to do this. preferably at least 6 months before, so that you can produce bank statements with no DMP payments showing. Your mortgage lender is going to view this pretty much like a new mortgage application, so you obviously need to pass the affordability test.
Gareth says
Thanks Sara,
I’ll explore the CCA option, I’ve made an offer at 15% to get the ball rolling but they all outright rejected this a few months ago. If I can get them down to 50% that would be great. Would this possibly be something they would accept, with or without the CCA’s?
The payments I make at the moment for all the debts come from my personal bank account only (I have taken then all on myself to pay them off). The ex-partner has been living elsewhere for a while now and will not have any payments showing on her own statements. The issue is that with her on the existing mortgage she can’t get a new mortgage with her new partner, and with the payments on my statements then its looking like possibly 6 months before I can get a mortgage?
It’s not a formal DMP as such, at the time of defaulting on everything we contacted them all and they accepted the payments proposed which have been ongoing for 10 years.
Sara (Debt Camel) says
See https://debtcamel.co.uk/full-final-settlement-rejected/ which looks at what lenders may accept and why they may reject an offer. If they cant find the CCA they will probably take less than 15%!
“with the payments on my statements then its looking like possibly 6 months before I can get a mortgage?” yes
Karin says
Hi Sara,
Any updates or ideas about the above? I guess it would make more sense for the CRA to be responsible for removing the default after 6 years has passed. Then again, maybe the lender should’ve somehow alerted the CRA of the need to remove the default now….
Sara (Debt Camel) says
I have sent you an email.
Pete says
Hi,
I have a debt that originally with ulster bank. It was for £2250. (A £750 arranged overdraft and £1500 unarranged overdraft) this was a result of the system issues with Ulster bank a number of years ago, where i took my wages from my account twice.
i stopped using the account and I didn’t hear anything from them for a couple years. then a 3rd party company began to send me letters about the debt to which i never responded. I actually got a phone call just a couple weeks ago and i said id never heard of *My Name*.
There has never been anything on my noddle report or clear score report that suggest i owe money to ulster bank or the 3rd party.
The problem is, i don’t know when the default was recorded, so i don’t know when the debt is stature barred.
I am applying for a mortgage next year and don’t want this to come out of the woodwork. Is there any way for me to check when the debt becomes stature barred without having to admit liability to the 3rd party and end up having to pay the debt.
Sara (Debt Camel) says
You could check your Experian record as well, as the article above says you need to check all three CRAs.
When did you stop using the account?