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?
Daniel C says
Hi Sara,
Firstly thank you for all of your advice and articles. They’ve been incredibly useful.
I am currently paying some old debts that defaulted in 2008 and have been paying a nominal amount for the last 8 years. The debts are not with the original lenders as they were sold on. I’m now looking to get a mortgage and have put a lot of effort into clearing all current debt from my credit file and building my credit score. Will the old debts affect me getting a mortgage as I’m still paying them and is there anything that I can do? Can you help me at all please?
Thanks in advance
Dan
Sara (Debt Camel) says
Will the old debts affect me getting a mortgage as I’m still paying them
Yes! The lender you apply to will see them on your bank statements. You won’t be able to get a mortgage from a high street lender at an OK rate with outstanding defaulted debts – it doesn’t make any difference that they are no longer on your credit record.
is there anything that I can do?
You can settle them. In full or with a partial settlement, see https://debtcamel.co.uk/debt-options/less-common/full-final/
The only alternative that may work for some of them, especially as they are so old and they have been sold to debt collectors, is to ask the debt collector for a copy of the CCA agreement. If they can’t produce one, then the debt isn’t enforceable and you can simply stop paying. See https://debtcamel.co.uk/ask-cca-agreement-for-debt/. This takes time and after you have stopped paying you will need to wait 6 months before applying for a mortgage, as most mortgage lenders ask for 6 months worth of bank statements.
Raj says
Hi. I am receiving a couple of letters from DCAs about some debts owed more than 10 years ago. I have recently got a joint mortgage and I was thinking may be I should start paying them slowly. Would this cause unnecessary issue? If I don’t pay can they get a CCJ now?
Thank you very much.
Sara (Debt Camel) says
what sort of debts were they? What did you last make a payment to them?
Miles says
Hi, I think you may have already answered similar situations in the past but I am not sure.
I owe £700 to EE who have sent the debt to Moorgate who are a debt collecting company. They was chasing me for the money but I have not heard from them for a while. The debt is not recorded on my credit report when I have checked in the 3 main places Equifax, Experian and TransUnion.
The debt start in 2019.
Do I still need to pay it? Will it ever get recorded on my credit file? Will it look affect me negatively later on this year when looking for a mortgage?
Sara (Debt Camel) says
Did you dispute you owed the debt? Or did you just stop paying?
Miles says
I just stopped paying. I haven’t disputed it as I assumed there was no point because I owed them.
Sara (Debt Camel) says
Well some people do dispute bills because they thought they were wrong – it’s always good to be clear if that applied to you as the suggestions are rather different in that case.
I am surprised this debt does not show on your credit record – it normally would. This makes it hard to know what to suggest.
If you ignore it, it could pop up on your credit records at any point, eg if your debt is sold to a debt collector. Which would be bad news if you are in the middle of a mortgage application.
But if you pay it now, it could also suddenly appear on your credit record if the error in their systems corrects itself. or if a paying it now makes a human being look at your account and spot the error. A £700 default paid now will still cause problems for a mortgage application in the next year.
You could phone up and offer to pay if they agree not to add the record to your credit reports… You would think this is a great deal offer for you and EE… but debt collectors and mobile companies are not the easiest people to reason with. And making this sort of request will definitely alert them to the credit record issue.
Miles says
ok I understand. Thanks
James Burry says
I believe there is some fraud on old paper work from welcome finance. Cabot who have the debt now they are refusing this. As well f. O. S. And the insolvency practitioner. Who do I take to court this urgent I can’t afford solicitor.
Sara (Debt Camel) says
If Cabot has said this debt is unenforceable (as you previously said), I am not sure why this is a problem for you?
If Cabot are saying a debt of 16k is enforceable then you may be able to find a solicitor that will take on this case on a no win no fee basis.
Luke S says
Hi,
Im after some advice On quite an old debt (Its a little complicated)
Its regarding a Student Loan Grant Overpayment.
Basically, I dropped out of Uni after my first year in 2010. I received a loan and a Maintenance grant.
I Have paid off the “Conventional” Part of the student loan via the normal way, Salary Deductions. However I have today been notified that I owe the £1900 For an Overpayment of a grant because I Dropped out of my course early. I have never acknowledged this grant over payment or ever made any payments against it, Its essentially an 11 year old debt that I have ignored. They sent me letters years ago but I have never acknowledged them. Could this Grant Overpayment Debt be Statute Barred by now, Do I have to pay it?
Sara (Debt Camel) says
That is unusual. I suggest you talk to National Debtline on 0808 808 4000 about this one.
Halim says
I have a question.I am paying debt collector monthly payment plan.My default going to 6 years by this month on 26th February.I called the debt agency for partiall settlement which is 25% of total amount but they reject it.
My question is after 26th February the default notice will removed from my credit file .After 26th Februuary if i do not pay them any more money what would be happen??Can they take court action to recover money or can they send recoveiries to collect money or they obly can just keep calling and sending letter??The original creditors is Santander credit card!
What would be the outcome or what can i do after default notice dissappear??
Sara (Debt Camel) says
There is no reason why they have to take a lower offer after the debt goes from your credit record.
If you stop paying them, they will very likely take you to court for a CCJ…
Can I ask if the current monthly payments are affordable for you – or would they need to be reduced because your energy bills, food, petrol and everything else are all going up? This changes what your options are.
Halim says
So what is my option to settle the debt.I had 9 creditors debt all 8 off them accept my offer even santander overdruft they accept 10% of total amount but santander credit card they are not accepting.However my mental health getting worst.Santander overdruft was with moorcroft debt agency but samtander credit card with original santander credit card department.What is your advice.
Yes my all bills are up to date
Sara (Debt Camel) says
How large is this debt? And how much are you paying to it a month?
Halim says
£3321 and I am paying them £3.I did settlement offer for £700 including my mental health but they declined and they did not mentioned anything how much is there offer to settle this account
I have one more question.I had a limited company and the company was closed 6 years ago with heavy loss and there was outstanding balance of 10k.I was the director of that company.In last 6 years i have checked all 3 credit agency but there is nothing about the outstanding balance.I have contacted with them they said as it is limited compny and closed i am not liable to pay the money.Is it true??
Sara (Debt Camel) says
Then I suggest you carry on paying them £3 a month.
“I have contacted with them they said as it is limited company and closed i am not liable to pay the money”
who said this?
Halim says
Barclays business
Sara (Debt Camel) says
and that is who the 10k was owed to? Then they should be right.
If you would like some reassurance, talk to Business Debtline https://www.businessdebtline.org/.
Halim says
Barclays business will get 10k from but company was closed and it was limited company.
Nothing appear on credit file and they never send letter or called me.I called them they said a as limited company shut down i am not liable to pay oitstanding balance
Sara (Debt Camel) says
ok, but you are not comfortable with this which is why you asked me? That was the reason I suggest you talk to Budiness Debtline, so they can explain what had happened.
Halim says
Hi
if I settled the outstanding balance with partial settlement and if i continue to use same bank account and keep money do you think the bank will take money or not after settle ??
Sara (Debt Camel) says
This is an outstanding balance on your bank account? A bank will not normally accept a partial settlement on an open account.
Halim says
The bank is closed but i want to reapply .I already settled the account and default notice also removed from credit file for that account.
If i apply for an account what would be the outcome??
Sara (Debt Camel) says
Go to a different bank! Why would you go back to one that has all the details of your previous problems in its records?
Halim says
Hi
I have quetsion.I had outstanding balance i Tesco credit card £569.I called them today to pay them in full.They made a default notice in my credit file last month.I was advised if i pay them full my default notice will not dropped next 6 years.So i paid them £284 as a partially settlement and they shut the account and inform me default notice will appear next six years.My question if I pay them full why default notice would not dropped from credit file.
Sara (Debt Camel) says
I don’t know, this doesn’t seem to make much sense.
Mary Jane says
I have almost paid off 3 old debts. 2 to Lowell 1 to Cabot. They are not reporting these on any of the credit reporting sights. Will they report the final payment and therefore the original defaults to the credit agencies? I have no defaults on my file and want to apply for a mortgage towards the end of the year?
Sara (Debt Camel) says
No they won’t report the final payment. these debts will not reappear.
But it’s a good idea to clear these debts at least 6 months before a mortgage application, otherwise a mortgage lender will be able to see the old debts from the payments to debt collectors showing on your bank statements.
Mary Jane says
Thank you so much. This has been worrying me. I am going to pay in full in the next month. Do appreciate your advice.
Paul says
Hi Sara
I hope you can help.
Back in 2004 I had a credit card with some debt on it. Unfortunately I lost my job and couldn’t afford to pay the debt. In 2005 I was offered a job abroad, and before I left I called the card company to offer a settlement, which was rejected. I left the country and never had contact with them again.
Now, after almost 3 years back in the uk I have just received a letter saying I owe money and offering a settlement to pay 20% of the total value. (which I can afford to pay).
After reading some comments here I have a few questions.
Would the debt be statute barred now? I wasn’t in the country so have no idea what letters were sent or if a ccj was submitted.
Since coming back to the uk, I have a good credit rating and am looking to buy a house (my provisional online mortgage application was accepted) . Personally I think it was this application that triggered the debt collector to find my new address.
Would paying the 1/5 settlement show badly on my credit score? If it doesn’t, it may be better for my stress levels/karma just to pay it and try to forget about it all.
Thanks for your help.
Sara (Debt Camel) says
A debt never becomes statute barred if there was a CCJ. But if there was, then the CCJ becomes much harder to enforce after more than 6 years.
I suggest you talk to National Debtline on 0808 808 4000 (or their webchat is good – https://www.nationaldebtline.org/) – they have a template letter about statute barred debt you can use. If the creditor then comes back with proof of a CCJ, National Debtline can help you respond to that.
David says
Hi Sara
I recently had three defaults. The first I paid a settlement and it has subsequently now passed six years and has been removed from my credit file. I have another which has been paid in full and will come off in about 11 months. Finally the last one was six years old last week and has now come off my credit file. I haven’t paid anything towards this debt and it will now be statute barred. Would there be any benefit to me paying a settlement for this ? Morally I should, but would it be seen anywhere if I didn’t pay it ? All three debts were transferred to Cabot who have also confirmed that the last one I mentioned is indeed statute barred. I will shortly be trying to get a mortgage and whilst the only default now showing on my credit file was paid in full about four years ago, I wouldn’t want to stumble into problems that could be avoided.
Sara (Debt Camel) says
It won’t be seen except by the creditor who can see their own records…
I would say don’t pay it if you are sure the debt is statute barred. But not all debts that drop off your credit record are… read https://debtcamel.co.uk/statute-barred-debt/ and phone National Debtline – they have a “statute barred” letter you can send if they think this is likely.
Carly says
Hi Sara,
Thanks for this blog it really helps in what is a very confusing field!
2 years ago I applied (successfully) for a mortgage with my partner. During the process my mortgage broker found a CCJ in my maiden name, at a very old address from a date when I no longer lived there. This does not show on any of my credit reports. As that is the case my mortgage broker suggested it was highly likely to be fraud in my name. She said I could get it set aside for peace of mind but otherwise it would disappear in 2 years (it was dated Feb 2015). As I say this didn’t effect my mortgage application.
With the house move and various big life events I never filled in the paperwork to get it set aside.
This week I’ve been contacted over text by a debt collection agency. I initially thought it was a scam so deleted the text (as I’d never heard of the agency before and didn’t think they collected by text!) but since searched the name of the company and now I’m worrying about what it was- presuming it is the fraudulent claim.
What should I do?
Sara (Debt Camel) says
So you didn’t recognise the debt which the mortgage adviser found?
Carly says
No as it didn’t appear to be attached to my credit history, and the mortgage broker said it would have gone in two years
Sara (Debt Camel) says
Has the debt collector said who the original creditor was?
Carly says
No I have no idea what it’s from. The search the mortgage broker did just said date and value. The recent text just said we’re trying to contact you.
Sara (Debt Camel) says
Then reply asking why they want to contact you as you are not aware that you owe any debts.
Carly says
Hi Sara,
The debt collection agency have identified the debt as an old store card I believed to have cleared 9 years ago and haven’t used since. According to their records the last payment on the account was in 2019? So I’m very confused as I wasn’t aware there was any balance on the account, and the payment wasn’t me.
I’m annoyed at a younger me for not keeping my details up to date with this account, as I cleared it and just left it, as I’d been told an inactive account would close after 3 months. But obviously somethings gone awry here.
Should I just pay the amount as it’s in my name after all? And I don’t want any debts kicking about, or do I try and prove it’s fraudulent activity?
Sara (Debt Camel) says
I suggest you go back, saying what you have said – that that card was cleared 9 years, you haven’t used the card since – any card usage is fraudulent and neither have you made a payment to it in 2019.
Carly says
Hi Sara,
So I did this, had no response, wrote again stating the same a month later asking for a response/further clarification. Still no response. Then fast forward to about a fortnight ago they offer me a reduction (so only ask to pay just under £80 opposed to the full amount).
What’s the best course of action now? To continue opposing it and explain I have cleared the debt and it’s fraudulent still or just pay it and be done with the whole debacle. Just they’re not particularly easy to communicate with when they’re ignoring my responses- but I really don’t want to open up phone communication I’d prefer to keep everything written.
Sara (Debt Camel) says
Why would you pay £80 a month to a debt that you don’t think you owe?
Either you cleared it , in which case you don’t owe it and there is some error.
Or it is statute barred, as you never made any payment to it in 2019 and that is some error.
Or someone else was fraudulently using your account and making payments which you have no knowledge of as you have never received any communication from the original lender.
I suggest you send the debt collector (who is it?) a formal complaint – they should have an email address you can use, making these points and saying that you have not yet had a response to you email of dd/mm/yy and dd/mm/yy asking them to explain what is happening. Point out that the regulator says:
“CONC 7.5.3 A firm must not ignore or disregard a customer’s claim that a debt has been settled or is disputed and must not continue to make demands for payment without providing clear justification and/or evidence as to why the customer’s claim is not valid.”
Carly says
Ok will send that. The £80 is just the one payment to clear the whole thing- not a reoccurring payment! And the debt agency is Hoist.
Thanks again
Carly says
Ok will do, thank you
Carollyn says
I have a debt in my credit file that is in a Dmp with step change. It’s been on since 2016 and I’m still paying it, can I have it removed from my credit it file as I’m struggling to rent a house as it’s lowed my credit score, my current landlord is selling propert so wants me out in a few mouths. I’m very worried I can’t get any where due to this on my file.
Sara (Debt Camel) says
who was the original lender for this debt? what sort of debt was this? what is the current balance?
do you have other debts in the DMP which have now dropped off your credit record/
Micky says
Morning Sara,
Around 7/8 years ago I was taken to court for a old Credit card debt that was in default. This debt at the time was showing on my credit file and the judgement order a forthwith payment to be made. As I was unable to facilitate this I made arrangement to repay at £ 2 per month and have continued since. The CCJ has never been logged and default long since removed.
I am uncertain how best to address this debt moving forward. (However, may look into affordability / F + F due to health as I have ongoing health conditions ).
I understand that the debt will not qualify for SB. However I have had no contact what so ever in all the years from PRA group so I have no idea what the balance is etc etc.
Are they able to pursue this debt if payments are stopped and if so what would be the best way to address this, for example should I make contact with them or wait for them to contact me? Can the CCJ be enforced / added to my file / court action applied?
Am I able to have any redress with respect to no contact, can they apply added costs or even enforce collection ?
Essentially, I have cancelled the DD for payment today and am uncertain how to manage this moving forward. Any advice you can give would be greatly appreciated.
Best wishes and thankyou for your support- your site and information provided is a godsend to so many.
Sara (Debt Camel) says
Can I ask about the rest of your current financial situation – do you have other problem debts? Do you still have health problems, would you mind saying what they are?
MA says
Hi
I have some old debts 15years that I am paying small amounts and have never missed any payments.These debts are not on my credit file. If I part settle them will they return and affect my credit file. Especially as I may want a mortgage or business loan.
Sara (Debt Camel) says
No they won’t. They will have dropped off 6 years after the default date and they will never return.
But think about this before you make a settlement offer https://debtcamel.co.uk/settlements-old-debts-cca/
Steve says
Hi Sara.
There are 2 debts I have that I am hoping can be statute barred, but doesn’t make any claims for it unless I am 100% certain. Firstly is a Vantage card that I had 10 years ago but the very last statement and correspondence I had from them was Nov 1st 2016. I had defaulted and still owed £400 but they stopped asking for money from that date, so no correspondence at all.
The other is more complicated. It’s a debt from 2006 to Citibank. I haven’t paid them anything since 2015, which was only token payments through Capquest, who acted as a debt collection agency. For years I have corresponded with Capquest and have not spoken tothemfor 12months, but basically have asked them to write the debt off. Is it still enforceable?
Sara (Debt Camel) says
See https://debtcamel.co.uk/statute-barred-debt/
For that second debt it will depend on what you have said in written communications with the over the year.
Angela says
Hi I have debts that are not on my credit report with experien, they are over 10 yrs old and I haven’t paid anything off them for well over 6 years .They do write to me but I don’t reply or answer them . Because they’re over 6 years since I’ve paid are they written off now and classed as statute barred
Sara (Debt Camel) says
A debt that is statute barred is not written off, but a creditor cannot enforce it in court.
Read https://debtcamel.co.uk/statute-barred-debt/. If you phone National Debtline next time you get one of these letters, they can talk to you about what you should do – they have a template letter you send to a creditor if it seems likely the debt is statute barred.
Usman khan says
Hi Sarah
Quick question, I am planing to apply for a mortgage application. I have looked at my Experian file and there is no outstanding debt. However in linked address section of report there is hard search which date back to Cabot. I may had a small debt at that time but it would have cleared as since 2016 I mananging my finances perfect and also cleared any bad debts at that time.
Do you think this search will make any negative impact on my application, my credit scores are excellent and on maximum score limit for last 6 years. My payments to any existing credit companies are immaculate since 2014.
Sara (Debt Camel) says
I think you should be fine. Are you going through a broker? I always recommend that even with a perfect credit record.
Usman khan says
Thank you Sarah I will be going through the broker not a bank. Your advice was very helpful.
phillip says
Can anyone please help?
I have old credit card debts that no longer show on my credit file, I am however still paying small amounts.
I’ve been contacted by 2 of the creditors offering full and final settlements at a reduced amount.
If I pay the partial payment, will this debt re-appear on my credit file as a partial payment?
Sara (Debt Camel) says
no it won’t. See https://debtcamel.co.uk/ff-credit-record/
Ram says
Hi Sara,
I have a Co Operative Career Development Loan which defaulted in January 2016. The Co operative did not report the debt to the Credit Agencies but passed the debt onto Wescot. Link Financial Services purchased the debt from the Co Operative in 2022 but the debt is still with Wescot.
I want to now clear the amount outstanding to Wescot by partial settlement. Is this likely to appear on my credit file if I make a partial settlement? Even though it has not appeared on my credit file as a default over the last six years.
Thank you for your advise on this.
Ramesh
Sara (Debt Camel) says
so Link haven’t reported the debt?
Westcot have told you they are collecting on behalf of Link?
how long ago was this loan taken out?
Ram says
Thank you for the response.
Link haven’t reported the debt.
Wescot are collecting for Link as they were previously for the Co operative.
The loan was taken out in September 2010.
Thank you for your advise.
Sara (Debt Camel) says
it is always hard when a debt is not being reported to guess if there is a good reason for this or if it is an error.
If it is an error, almost anything could result in the error being spotted and the debt reported to the CRAs – except here there may be a good case to say that there should originally have been a default added back in 2016 or 2017, in which case it would drop off.
So if you make a partial settlement offer or settle it in full it may be reported. But equally Link could suddenly wake up and report it if you just carry on making payments.
But it is possible that these Career Development Loans should never be reported – I don’t know. If that is the case, then nothing you do will cause it to appear.
Do you have any of the original paperwork relating to this loan?
Ram says
Thank you for the feedback, Sara.
As this debt defaulted originally in December 2015 when it was with the Co Operative can Link still record it on my credit file if partially settled? The six year window has disappeared and the debt would have fallen off the system.
When the Co Operative passed the debt to Wescot they said that they wouldn’t report it to the CRA’s. Wescot have said that if I partially resettle then Link should not inform the CRA’s either.
At worst how much would a partial settlement affect my credit file?
Unfortunately, I don’t have the original documents.
Sara (Debt Camel) says
“When the Co Operative passed the debt to Wescot they said that they wouldn’t report it to the CRA’s. Wescot have said that if I partially resettle then Link should not inform the CRA’s either.”
that is good.
“At worst how much would a partial settlement affect my credit file?”
A partial settlement on what – if they add this debt back to your credit record,, will there be a default date added, if so what will the default date be? or a string of paymewnt arrangements? It isn’t the partical settlement itself that will be the problem, it is making visible the debt with a default or the payment arrangements.
If they add the debt but include a default back when they should, it would immediatley drop off and the record, including the partrial settlement marker, will not be visible at all.
One option is to go for a partial settlement. thien if the debt reappears, first complain that you were told it would not and second say a default date back in 2016 or 2017 should be added.
If you make a full settlement it is equally possible that you will run into these problems – it isnt the partial settlelement that does the damage.
Ram says
Hi Sara,
Thank you for all your help. It is much appreciated. I will keep you in touch with how I get on.
Kirsty says
I have a question, I had 1 default with a credit card which dropped off my credit report 3 months ago. I haven’t made payment to the debt purchaser for 2 years because they have deemed the debt unenforceable.
I am in the middle of a mortgage application, broker has for the AIP from a lender. Pra group have sent me a letter saying they could settle the debt for 30% of the balance. Which is the figure I initially asked for months ago on a full and final.
Now the debt isn’t on my credit report, and I don’t know whether it’s a good idea to pay this now as this will show on my bank statements? Should I just leave it and hope the offer stands after I have completed on the mortgage?
I didn’t tell my broker about it as it’s a debt I don’t class as relevant as it’s unenforceable. I only want to settle it partially so they stop sending letters.
Sara (Debt Camel) says
if the debt is unenforceable, why would you want to pay them 30% of it? how often are they sending you letters?
Kirsty says
Thanks for your reply, the letters probably come once a month or so, just kind of want to draw a line under it. I could wait for it to drop further but not sure it will. Also don’t want the debt to be sold on and the new collector searching my credit file and that could affect future remortgages or anything like that
Sara (Debt Camel) says
Any search would be soft as you are not applying for creditor so it would not be visible to anyone else.
You can talk to your mortgage broker about this but personally I would not want to do anything before completion of the mortgage.
Sasha says
Hello, is there any service on the market like evaluation of debt situation or something where professionals would be getting the access to individual’s credit report and give some valuable realistic advice what are the best scenarios of managing debt etc? Something like PayPlan but more simple in access?
Sara (Debt Camel) says
Are you having problems paying the debts? Or are you ok, you just want to know which debt to tackle first and some budgeting tips?
Andy says
Hello,
I had some debts with a payday lender.
I submitted a claim against them for being mid sold to me, my claim was upheld.
The debts all but got wiped but a few hundred pounds and was removed from all credit reports.
I simply forgot to settle the small remaining balance, was a lot going on trying to tie up a lot of debt I got myself involved in. Anyway the company hasn’t chased me once, sent me any letters or emails.
The debt is back from 2017/2018.
Anyway a debt recovery company has surfaced who must have purchased the debt chasing me.
I don’t mind paying it but they have just this month now started reporting a default on my credit report, which is more frustrating than having to pay the money – is this correct?
I had all adverse remarks removed after my claim was upheld by the ombudsman.
Any help would be great before I take the next step,
Sara (Debt Camel) says
You could try offering to repay it if they remove the default. Attach a copy of the decision in your favour. They may be happy enough to get the money and not want to waste effort on arguing this through the Ombudsman…
I don’t know what FOS would decide here. I think if the lender had been sending you reminders and you had ignored them, you would have lost… but as you haven’t had anything…
Andrew MacTaggart says
Can they legally record a fresh default?
When they bought the debt?
No reminder or warning ?
Sara (Debt Camel) says
Normally not but there are no actual rules about what should happen when after an affordability complaint no arrangement to pay is set up. You can argue that you haven’t been treated fairly by not being informed
Kevin says
Hi
I have old debts that i have been paying every month most have been sold on various times and all are over 6 years old and no longer on credit file.
If i offer full or partial settlements to clear these and they are accepted will this information then re appear on credit file.
Thanks in advance.
Sara (Debt Camel) says
No they cannot reappear if they are settled, partially or in full.
You may want to read this first https://debtcamel.co.uk/settlements-old-debts-cca/
Jon says
Hello Sara,
I have an old CCJ on my credit report from an unpaid student overdraft in 2017, with defaulted payments showing for the months of February, May, June, July & August of 2017. I was not living in the country at the time and unfortunately the debt snowballed into a CCJ. From September 2017-present day, my credit report shows no missed payments, etc and remains clean.
I have made no payments and not acknowledged the debt.
I am looking to apply for a mortgage in 2024. So was wondering will this affect my mortgage application? Should these missed payments/the CCJ be removed from my file this year as it is now 6 years ago? Will potential mortgage lenders be able to see these defaults after 6 six years?
Once it drops off my file should I apply for it to be set aside or leave it be?
Thank you for all the help and good work you do.
Jon
Sara (Debt Camel) says
what is the date of the CCJ?
J says
Hi Sara
If I made a partial settlement of an debt incurred in 2009 and sold to multiple debt agencies (now with CARs) and now dropped off credit file, would it flag as a new payment/account on my credit file?
Sara (Debt Camel) says
No, it will not reappear.
What sort of debt was this originally? No CCJ?
J says
No CCJ, it was unsecured with welcome finance
Sara (Debt Camel) says
It is possible that if you ask for a copy of the CCA agreement the current creditor will not be able to produce it. In which case the debt is unenforceable in court and you could decide to simply stop paying, not offer a partial settlement. See https://debtcamel.co.uk/ask-cca-agreement-for-debt/
Helen says
Hi Sarah I have an Excellent credit score, but I have just made a settlement to a debt collection agency for credit card with Lloyd’s bank which disappeared off my file 4 years ago. They are saying that they will inform credit agency’s of partial settlement. Can they do this and ruin my credit score.
Sara (Debt Camel) says
No this won’t happen. See https://debtcamel.co.uk/ff-credit-record/
Daniel G says
Hello
I have some credit card debts and an overdraft dating back to 2008. 3 credit cards and an overdraft. All were being managed by Lowell then they sold the debts to who later took me to court and CCJs were issued. I stopped making payments in the first 3months of the CCJ’s being issued back in 2016. I last received letters from capquest sometime in 2019. So the CCJ’s dropped off my credit file last year 2022.
A month ago I started getting emails from Lowell asking me to get in touch to agree a payment plan.
I know that the debts cannot be statute barred but can Lowell legally chase these debts now that they have purchased them back from capquest?
Do I have any ground in asking for a CCA?
Sara (Debt Camel) says
After a CCJ the creditor is not obliged to produce the CCA if you ask for it – that is a route that will not help you.
Why did you stop making payments to the CCJ?
What are your current financial circumstances?
Daniel G says
I stopped the payments when I fell on hard times through family illness and because I was not chased after I stopped I just kind of didn’t bother.
My current situation is not great but it’s improving after being hard hit during the Covid pandemic. I’m self employed so didn’t work at all during the pandemic.
Sara (Debt Camel) says
OK , I suggest you talk to Business Debtline https://businessdebtline.org/ about this and say you would like an Income & Expenditure sheet you can show Lowell as you think you can afford little or nothing and you want to ask lowell to write off the debt.
Yash says
Hi Sara,
I had a loan of £10k way back in 2010 and it was defaulted in 2015 due to my personal circumstances then. Later on I was paying £20 to Moorcroft who were collecting on behalf of HSBC. But, they didn’t own the account. HSBC still owned the account. HSBC moved my default date to 2016 and I complained to Ombudsment with your help and It was duely removed. The defaulted account was removed from my credit file. I lost my Job during pandemic and I am unemployed from 2 years. So, my direct debit to Moorcroft bounced in June 2022. I called Moorcroft and explained the situation that I can’t afford even that £20 and give me some time of 6 months or so, hoping I would secure an employment and requested them to call back after 6 months to which they agreed. I didn’t hear back from Moorcroft. Amidst all this stress of unemployment and a new born child and expenses, even I didn’t remember about this thing. Today I recieved a letter from Lowell along with a letter from HSBC in the same envelope that the account was sold to Lowell. I am not in a position to pay any money at all as I am living on benefits and my balance at the month is zero or negative. Can Lowell take me to court and apply a CCJ on this debt ? Can I ask them to write it off as I can’t afford it or offer £500 to close it? Current Balance on their letter is £5884.14
Many Thanks,
Yash
Sara (Debt Camel) says
do you have other debts as well? Old debts or new debts or arrears on bills?
Yash says
I have a couple of credit cards now, which I am using and never missed a payment. Payment history is on track since 2016. There are no arrears at all.
Sara (Debt Camel) says
Thye may be reluctant to write it off if you are making payments to other debts.
One thing you could do, that may or may not work, is ask Lowell to produce the CCA agreement for the loan. See https://debtcamel.co.uk/ask-cca-agreement-for-debt/. If they can’t (and can’t get it from HSBC) then the debt is unenforceable and you can simply stop paying.
But if you think you have no spare money at all, another option is to talk to a debt adviser about a debt relief order. Which could clear not just this old debt but your credit cards as well. Phone National Debtline on 0808 808 4000. They can talk about all your options, including asking for the CCA agreement.
Yash says
I have to pay for the current credit cards else I would go back to a situation that I was in 8 years back, defaults on my accounts and no credit score etc.
Lowell sent a letter from HSBC on their letter head saying they sold the account to Lowell. Does that mean, HSBC might have CCA?
Confused.
Can’t go to the route of bankruptsy as I have my wife’s visa dependent on me
Sara (Debt Camel) says
Does that mean, HSBC might have CCA?
Sometimes debts are sold with the CCA.
Sometimes debts are sold with the right to go back and ask the lender for the CCA.
Sometimes debt are sold without the right to ask the lender for the CCA.
There is only one way to find out, which is to ask.
If they can produce the CCA, then you can ask for a write off or offer a low £1 a month.
Yash says
Thanks again, Sara.
Is there format of a letter asking for CCA? can you kindly guide me, please?
Sara (Debt Camel) says
Yes, in that link I posted.
Major says
Hi Sara,
I recently checked my credit score and noticed I had a default registered by Cabot on 10 Dec 2018 and that it will be removed 10 Dec 2024. I rang to find out what it was for, and a few weeks later they got back to me with a letter and bank statements from an overdrawn HSBC account, which I had forgot to close when I left the country in Jan 2018 and came back in Jan 2020 to new address. Cabot purchased the account on 29 Jan 2019 but the default was registered by them in 10 Dec 2018, how is that possible? Secondly, since there’s only just over a year left till the default is dropped and i haven’t made any payments yet, should I ride it out till it drops off, and is it enforceable. The Debt is £497 credit score is 544 on transunion. Im potentially looking to get a mortgage next year.
Sara (Debt Camel) says
but the default was registered by them in 10 Dec 2018, how is that possible?
Does this matter? It works in your favour as the debt will drop off your credit record sooner
should I ride it out till it drops off, and is it enforceable.
I think there is very little chance of this happening – Cabot is likely to go to court for a CCJ of you will not make a payment arrangement. If you want a mortgage next year, I suggest you make an offer to settle this debt.
Claire says
Hi, both myself and my husband have debts that have been sold onto various debt collectors since 2018/2019. The debt originates from credit cards and store cards. We have mostly token payments in place and minimum payments in place with each collector: we are under the assumption that the debt will drop off our credit files this year and some next year (6 years). Do we still have to continue to pay the debt collectors after the 6 year period? Lowell have contacted my husband just recently about a defaulted debt from 2019. They are threatening to sell the debt to another collector if a payment plan is not set-up asap. What should he do? Should he set-up the plan now 5years into the default or will this restart the clock on this debt?
Sara (Debt Camel) says
Yes the debts will drop off. But as the article above explains, you do still have to keep paying them, or the debt collector can go to court for a CCJ which wrecks your credit score for another 6 years.
Setting up a payment plan will restart the statute barred clock. But it isn’t likely that this debt will become statute barred as Lowell or another debt collector will go to court for a CCJ before that.
How large are your total debts? Because they will never be cleared with token payment plans…
Claire says
Our debts are approx. £35K in total. A bulk of this is due to hefty added interest amounts. Do we need a reason to ask for a CCA from each debt collector? Some of these accounts date back to 2009-2012.
Sara (Debt Camel) says
It is your legal right to ask for the CCA agreement. You do Not need a specific reason
Daan says
Hello I took an Aqua credit card out in 2015 and it has come up to £3500 at the moment. I stopped paying at the end of 2016 because I couldn’t afford it. November 2023 cabott sent me a 6 month statement and requested a call back. I haven’t gotten in touch with them yet. And it doesn’t show on my credit file at the moment.
What should I do ?
Sara (Debt Camel) says
what credit report are you looking at?
daan says
Transunion,equifax and experian.
Sara (Debt Camel) says
Sorry I missed your reply.
This sounds as though Aqua added a default when you stopped paying – defaults drop off your credit record after 6 years.
If this is the case, then it is almost certainly statute barred – too old to be enforceable in court. Talk to National Debtline on 0808 808 4000 about this – if they agree then they have a template letter you can send to Caboot that saying this.