Debt Camel

Answers to questions about debts and credit ratings - in plain English!

No calls or letters about a debt for years?

If its been four or five years since you stopped making payments to a debt and you haven’t had any phone calls or letters for a long while, you may be hoping your debt has got lost or the debt collector has forgotten about it.

This article looks at what is likely to happen as in 2018 debt collectors are taking more people to court for CCJs than they used to.

If you have been making payments, even very small ones, to an old debt this article isn’t relevant for you – instead read Should I keep paying an old debt?

Deserted phone box - no calls about old debts for years?

Here is a typical situation. Mr H wrote:

I stopped paying a loan in 2013 when I lost my job.  I have a Default on my credit file for June 2013. The bank sold it to a debt collector after a couple of years.  But I was never contacted by the debt collector. I know in 2019 it will fall off my credit history altogether.

Do you think there is a chance after 5 years of a Debt Collector contacting me this year or next year? What is the best thing for me to do?

Becoming “statute barred”

When a debt is statute barred, the creditor won’t be able to get a County Court Judgment (CCJ) for the debt. In general a debt becomes statute barred six years after you missed a payment if the creditor had the right to start court action at that point. But if you made any payments during that six year period, the 6 years would start again. I’ve written another post that looks in details at questions people ask about statute barred debt because it can be complicated for different types of debt.

Mt H hasn’t been making any payments. But if a debt collector gets in contact with him before this six-year period is up, they could take hime to court for the debt and he would get a CCJ.

It’s natural for Mr H to think that after five years he has probably been forgotten. But it’s common for people to be contacted by a debt collector with only a few months left before that statute barred point.

If you are contacted, can you ignore the letters?

Another reader wrote

I have just received a letter threatening court action. My debt will be statute barred in December, only 6 weeks away, surely I can tough it out until then? It must take a few weeks to get a CCJ?

It does take a few weeks to get a CCJ – it will be months if you defend the case – but all the debt collector has to do is start court action before the statute barred point, not complete the case before then.

Also you have to be absolutely sure your debt will be statute barred – this is especially important in 2019 as a recent court case has made it more difficult for some loans and credit cards to become statute barred.

If you ignore the letters there is a chance the debt collector won’t go to court. This probably depends on how certain the debt collector is that you are the debtor.  But in many cases they will.

In the first quarter of 2018, there were more than 100,000 CCJs per month – a lot more than there were a few years ago. Debt collectors are taking more people to court about unpaid debts than they used to.

So ignoring letters isn’t a good idea because you could end up with a CCJ.

In particular, if you get one headed Letter Before Action (or sometimes Letter Before Claim or Letter Before Court), then this is your last chance to make a monthly agreement to pay the debt and not get a CCJ.

It is also the point at which you can ask for more information about the debt as sometimes the debt collector doesn’t have the right documentation to get a CCJ.  Read How to reply to a letter before action which suggests how to complete the Reply Form that you have been sent.

What happens to your credit file

When a default date has been added to a debt on your credit file, the whole debt will disappear after six years. This is going to happen whatever you – or a debt collector – does.

If the debt collector suddenly springs into life you are likely to see them add the debt to your credit record under their name with the same default date as the original record does. If the debt collector “makes a mistake” with this and uses a later date, you should get the default date corrected.

But if you get a CCJ, this is then added to your credit record and will remain for another six years. A CCJ is worse for your credit score than a default is.

So what is the best thing to do?

That depends on your financial situation. Here are a few cases:

Much improved, hoping to get a mortgage

This old debt needs to be sorted, the last thing you want if you are making a mortgage application is the possibility of getting a CCJ. If you want to get a mortgage soon, whilst the old default is still on your file, I suggest you contact the debt collector yourself and pay the debt in full. If you won’t be applying until afterwards, then have a go at getting a Full and Final Settlement offer.

OK, could start clearing this debt

I suggest you work out how much you could pay each month and start saving this amount up in a separate account, where you won’t be tempted to dip into it. If the debt collector contacts you, you then have an amount you could offer in a full and final settlement. If time goes on, the debt drops off your credit file and you are sure it is well over six years since you made a payment, then read up about statute barring. At some point you will feel comfortable to use the little nest egg you have saved for something else.

Not good, could only afford a token monthly payment

In this case there isn’t anything sensible you can do now except wait. If the debt collector does contact you, don’t ignore the letter but offer a token payment and give details of your income and expenditure, showing why you can’t afford any more.

Dreadful, lots of other problem debts as well

You need to look at your whole situation, not just firefight individual debts. Although this particular old debt could potentially disappear, you should probably assume that it won’t. Have a look at the range of possible debt options then consider talking to StepChange about your options.

More Debt Camel articles:
17 ways to check your credit score - find the best!

17 ways to check credit scores – find the best

How to ask for a payday loan refund

How to ask for a payday loan refund

How much will my credit score change if…

Comments

  1. I switched bank accounts when the simple switch process including direct debits switching came into effect in 2013. I moved from Halifax with a outstanding overdraft off aprox £1,300, to Santander. I’m in a dmp and myself and step change have tried to contact Halifax to pay the outstanding overdraft balance with no luck they just tell me the account doesn’t exist. I’m worried this will cause problems when I’m in a position to apply for a morgage. What can I do?

    Reply

    • Hi Gill, I think the sensible thing in this situation is to concentrate on paying off the DMP and when that is done, having the £1,300 put aside in case this overdraft debt resurfaces.

      Reply

  2. Hi
    Great site. I had an account that was defaulted in 2010. Sold on to a debt collector but the address is wrong. It is an address that I have never lived at and have no connection with. The debt collector have now fathomed out that it is the wrong address and have contacted me at my address asking me to confirm that I do not live at the wrong address.
    The default shows on my credit file as a linked address but also in the account information.
    Should I ask them to remove it or just leave well alone until it falls off?

    Reply

    • Hi George, I am afraid the debt collector appears to have found you. As it says in this article, the chance of them going away if you ignore the letters isn’t good. The record will fall off your file 6 years after the default date whatever happens, but the real problem is that the debt collector may take you to court for a CCJ, which would then be back on your file for another 6 years.

      Reply

      • Hi thanks for the reply.
        The letter they have sent isn’t asking for money. In summary they ask me to contact them if I am the person who lives at the address they have on their files which is the wrong address. They go on to advise that if I’m not the individual who lives at that address to do nothing.
        As I’ve never lived at that address and I have no business with them I think I’ll stay away from any correspondence with them. I don’t really wish to help them correct their mistake.

        If they start threatening court of course then I will have to defend myself.

        Reply

  3. Hello, I have today received a County Court Claim form for a debt that defaulted in June 2011 for £1,225. I know that if I ignore this letter it could result in a CCJ.

    I am happy to pay them back in installments as I’ve stated on the form (I won’t be sending the form back until I have had some advice).

    My intention was to ignore these debts (there are more defaults) so that they “drop off” after 6 years. Annoyingly with 1 year to go they have issued me with this claim form. My question is .. Will the 6 years start again when I start to make payments? Also.. The debt they are referring to is no longer showing on my Credit File so could I just ignore this seeing as the debt isn’t on my credit file anyway? Or will it re-appear as a CCJ and add another 6 years?

    I’m really trying to sort my credit out and if paying this one in installments makes it go away altogether then I’m willing to do so.

    Will the other creditors for my other 3 defaults which supposedly drop off next year be made aware that this particular company have had successful payments from me via this route and start sending me Court claim forms for their debts too?

    Reply

    • Hi Dina, National Debtline would be good people to talk to. It’s their busy time of the year but if you persist the phone will be answered.

      Ignoring this debt wasn’t a good idea – getting taken to court for a CCJ is what normally happens in the last year before a debt becomes statute barred.

      A CCJ will appear on your credit file and will be there for 6 more years. And even when it goes, the debt doesn’t, as once there is a CCJ it will never become statue barred.

      A CCJ is going to mess up your credit file for 6 years, but there’s not much that can be done about that at this point unless you can either pay the debt in full or offer a large enough amount now so that the creditor will accept a full & final settlement and withdraw the CCJ.

      Your other creditors will be able to see the CCJ on your credit record. They probably were going to be contacting you anyway, this year or next… it’s what normally happens.

      Reply

  4. Hi,
    I checked my credit file and I have an open credit account in which I defaulted on since 04/02/2010. I only checked my file a week ago and was planning on paying off the debt next week in full as that’s when I get paid. I’m now having second thoughts about paying the debt.
    Basically i’ve read that if i’m to settle the debt, on my credit file against the debt I have, it will read ‘settled/satisfied’ and that will then stay on my file for 6 years from the date my debt was ‘settled/satisfied’. As it stands i’m one month away from the default being removed from my credit file, so i’m in a dilemma about what to do.

    Reply

  5. Hi.
    I have various defaults between 4-6 years olds. Over the next few months 3 defaults totalling £4000 is about to pass 6 years and will fall off my credit report. I will then be left with 4 defaults but all totalling just under £1000 that will be there for the next few years.
    I am currently looking to start a small business and want to apply for a small loan. I was going to wait until the large defaults have gone from my credit report but wasnt sure if my credit score will improve enough with some small defaults. I was wondering if age of defaults and amount effect my credit report or if I should consider trying to pay off the small defaults.

    Reply

    • Hi Simon, I really suggest trying to get all the defaults showing as settled if you want to try to get a business loan.

      You also need to worry about getting a CCJ as that could be a big problem for your future plans.

      Reply

  6. Hi
    I’ve got one default on my account which I had noticed yesterday for just over £1000. And it was defaulted in April 2011. I’ve had no ccj’s or any communication with the people. I also haven’t moved so they know my address. Should I try and pay it off or wait until April next year because then it would be taken off my report. Me and my misses are looking for a Morgage and I have fair credit and she has excellent what’s the chances on getting accepted as this was years ago and I haven’t had a money problem in 5 years. I’ve got car finance and a mobile contract which I’ve never missed payments either. Thanks

    Reply

  7. My 6 years are up 25/3/16 i got aletter yesterday 14//3/16 is a week long enough to do anything before i get statue barred . And i dont know how they would of found my address after all this time . Its an old debt with an ex . Should i respond as the letter starts of with we confim we have you at this address ? Can you advise i dont have the money to pay as my job is up in June . But i am due some supa at this time as im 55 could they take yhat of ?

    Thanks for your help

    M

    Reply

    • You say your six years are up on 25/3/16. Does this mean you last made a payment on 25/3/10? The 6 year period for statute barring starts from when you have missed payments, so this would usually be a month later :(

      i think you need some urgent, detailed advice on the status of this debt. Call National Debtline on 0808 808 4000 and discuss the debt, the letter and your options with them.

      Reply

  8. Firstly, what a fantastic site, I just wish I’d found it sooner having very foolishly landed in debt sever years ago which left me completely overwhelmed by calls, letters, etc. Thankfully I’ve managed to satisfy several accounts and am now just waiting for the defaults to drop off.

    My specific question is regarding a defaulted credit card debt.

    The credit card defaulted in Aug 2010 and I’ve not made a payment since. I’ve had various letters saying the debt has been passed around every few years but I’m now getting close to the six year mark and am left to wonder what to do. I have some savings (not much) but I trying to figure out what to do given the following options: I could try and pay it off / reach a settlement / cross my fingers and hope I cross the six year mark. I definitely don’t want a CCJ. One of the factors is that I’m not entirely sure of the actual debt amount as my credit report (via Noddle) seems some what confusing as it lists the following amounts: Opening Balance £ 8,400, Default Balance £4,000 but then records a separate ‘balance’ as just £327.

    Also I’m worried that if I contact them to enquire / negotiate I run the risk of activating the account simply by corresponding.

    Reply

    • Yes you do risk waking the creditor up by contacting them, so the best thing may be to save up money so you can make a F&F offer if they contact you before the six year mark.

      Reply

      • Thank you for that.

        I just have one question re: the CCJ process.

        Do CCJ’s arrive as a completed piece of work (i.e. open letter to a full CCJ) or are debt collectors required to issue you with a notice period whereby they notify you that they are going down that road and you have a specified period of time to act (pay) to prevent it.

        Just trying to get a complete understanding of my options.

        Thanks again.

        – T

        Reply

  9. Hi I just received a letter from a debt collector saying there going to give me a default from a cash genie account 5 years ago. If I ignore it. Wil the default be the date 5 years ago? Or now?

    Reply

    • Hi Callum, the default should be dated 5 years ago. That doesn’t mean it’s a good idea to ignore it as there is always the possibility that the creditor will try for a CCJ.

      If you used payday loans a lot at that time, have you read up about whether you can ask for a refund of interest? See https://debtcamel.co.uk/payday-loan-refunds/

      Reply

  10. Year 2009/10 was the worst ever in my life:(. My long term partner leave me.UK in my country where I born. I’m starting getting into drugs depression, getting loans, pay day short term loans. I’m feeling a shame of that period what I have done with my life.I’m clear 3years and have part time job.I never contact any debt agency to sort out my debts. One my loan with Santander was 10k 11 Nov 2011 I took when I was on drugs badly.:(, I got almost 30k in total to pay.My life now starting better.I found new partner.But cos of debts I’m soo worried. I’m 40 years old and vision of not getting chance pay this off and not have an chance get mortgage make me weak:(

    Reply

    • The best thing you can do is get some good debt advice on your options. The longer you leave it, the longer it will take to tackle them… People do get mortgages after debt management or insolvency. I suggest you call StepChange and talk through your options with them and find which is right for you, see https://www.stepchange.org/.

      Reply

  11. Hi I had a overdraft I’ve closed my account and moved to another bank I’ve had no contact with the creditors and its been six years and its gone off my credit report what does this mean

    Reply

    • Debts drop off your credit file six years after the default date.

      This debt may now be statute barred – this isn’t straightforward for an overdraft, but if a default was added to your credit record and you haven’t had any contact with the bank or any debt collector then it probably is statute barred. I suggest you read https://debtcamel.co.uk/statute-barred-debt/ and then perhaps talk to National Debtline about your old overdraft and what (if anything) you should do.

      Reply

  12. HI there

    I’ve only just signed up to check my credit report on Noddle and have only seen the Natwest debt – the default was added on 31.12.2010 it was an old student account which I had trouble making payments then became homeless in 2010. I couldn’t afford to pay this overdraft…Nat west told me to wait until the collectors contacts me…it’s been over 5 years now but I want to settle this to improve my credit report. They sold my debt but have no details as to who they sold it to and how I can make payments

    Reply

    • Normally I am keen on people trying to settle their debts, but there are limits to how much trouble you should have to go to find out who to pay!

      This debt will drop off your credit record on 31/12/16. If the debt collector gets in touch before then, then you are ready and waiting to offer to settle it. If they don’t, well it is gone from your credit record already and it may well be statute barred at that point.

      With only a few months left, it seems best just to wait and keep a look out for letters from debt collectors.

      Reply

  13. Hi there
    I had a default on my account since 5 years and recently I recieved a county court claim form from the solicitor of lowell to pay the debt of 634.
    I contacted them n they agreed to accept monthly installment of 5 pound per mongh due to my financial situation and they also agreed that they will not take me to court.
    So my question is that will my account be clear from default once 6 years period has been completed (remember it has already been 5 years since I got a default) ?
    Or will 6 years period start from the time I contacted them(which is just a week ago) and they agreed to accept installments?
    Many thanks I will appreciate your help.

    Reply

  14. Hi Sara

    I’d be really grateful for some advice:-

    After experiencing financial problems throughout the period 2006/07, I had my house repossessed in June 2008 (although the actual default would have been a lot sooner) leaving a shortfall debt of circa £40k.

    Six years later (in 2014), the mortgage account completely disappeared from my credit file. Although I know the lender can pursue me for up to 12 years for the shortfall, I was surprised to find the account reappear on my credit file a couple of months after it was initially removed.

    My queries are as follows:-

    1. To any prospective lender the “new” entry to my credit file looks like a “new” and “live” mortgage with ongoing defaults. Is the lender entitled to reapply this information to my credit file, even though the mortgage no longer exists (despite a shortfall debt)? I’ve spoken with both National Debtline and the ICO on the telephone for advice, but neither have been able to assist. Surely I can’t be the only person in this position?

    2. I appreciate different rules apply to shortfall debts, but I understand the protocol is that a mortgage shortfall debt is only recoverable if a lender notifies you of their intention to pursue the debt within six years. How would this be defined? For example – would ad-hoc written communication every couple of years reminding you of the debt satisfy this requirement, or should they have commenced legal proceedings within that timescale?

    I’d be grateful for your thoughts.

    Thanks in advance.

    Gareth

    Reply

    • First it is huge pity that you did not go bankrupt back in 2006/7 – all this would now be ancient history.

      1. I think the correct way to tackle this would be to put in a written complaint to the Lender that the debt on your credit record is now showing with an incorrect default date and ask for the default date to be corrected to the date your house was repossessed. If this doesn’t resolve the problem, I suggest taking your complaint to the Financial Ombudsman as sometimes the ICO makes some odd decision regarding secured loans. BUT DO YOU WANT TO DO THIS?

      2. It is my understanding that the “ad hoc written communication” within 6 years is sufficient so the debt is still recoverable. If the lender tries to take any legal action, it will be worth looking into this in detail then. As a result, you may decide you would rather not contact the lender to try to get the default resolved, preferring to just try to stay quiet until 12 years has passed.

      Reply

      • Sara –

        Many thanks for your prompt response; it’s very much appreciated.

        One final question, as a follow-on from the advice provided:-

        I have never acknowledged the debt, and I’m frightened of “resetting the clock” after 8 years. Would complaining to the lender jeopardise my position? I’m assuming I’d have to acknowledge the debt? If so, is there a way you can suggest that would mitigate the risk?

        Thanks again.

        Reply

        • In your situation I think I would feel concerned that complaining to the lender about the default date would make someone look at my file and decide to take action to recover the debt now. With 4 years to run until the twelve year point that is the major worry, not what happens after 12 years.

          Reply

  15. Firstly I am guilty as charged over a debt to MBNA for a credit card taken out in 2006 and which I made my last arrangement payment back in October 2010. Arrow Global had chased me for the debt but I knowingly ignored it and decided to run the 6 years and then try to repair my credit status. I am not encouraging others to do this. Equifax show the account as being closed with a ‘D’ appearing in December 2010, however Callcredit still shows it as being open with the first defaulted date showing in February 2012. How can two credit score providers have a massive difference in defaulted dates? Recently Arrow moved or assigned my debt to Drydensfairfax Solicitors and sent four letters over a 3 month period trying to recover the debt. The last letter received gave me a final chance to contact them to make arrangements by 21-10-16 else they would try to impose a CCJ order on me. I have decided to take a gamble and to see them in Court as I know the 6 year period would have expired by the time I am due in court and I will also dispute the defaulted date held by two credit reference agencies. Can I represent myself or do you think I need a legal help in hand when I appear in court? I will have the means to pay it on the date if I am proved in the wrong but can I get the CCJ removed if this is the case that I agree to settle the debt on the day of the court hearing?

    Reply

  16. Hi, you are doing a wonderful job. I have quite a many defaults on my file. I have been paying them since a year now, most of the defaults will reach 6 years by end of 2017. My question is, is there a chance that they will apply for CCJ at some point now even though I have been making payments as agreed. If I keep making payments as agreed, I will be debt free by 2019.

    Reply

    • Well there is a chance, but it seems pretty unlikely as the debts are now being paid off at a reasonable rate. If you were only maing low payments and it could take another 8 years, there is more of of a chance they may go for a CCJ.

      Reply

  17. Hello, New to this site so sorry if this is question is on the wrong article and sorry if its long winded.

    I had a payday loan back in 2011 (Payday express) and after numerous months of paying them off in full and then re taking out another loan i ended up defaulting on the loan and tried to agree a repayment plan with them. After numerous letters and e-mails to them (all saved) we never got an agreed plan arranged as they would not accept any offer or send any standing order details so i thought i would until they passed this to a debt collector but as off now i still haven’t had any correspondence from anyone and this debt is not showing on my noddle credit report which shows all other creditors.

    Should i contact payday express as I don’t want them to suddenly say yes you do owe us such an such when this might be stat barred???

    Thank You

    Reply

    • If the loan was in 2011, it can’t yet be statute barred – see https://debtcamel.co.uk/statute-barred-debt/.

      You could wait until it is statute barred and then ask for a refund? But if you only had 2 loans and defaulted on the last, any refund on the first would be set off against the balance on the last one so it may not be worth the bother. Do you know what interest you paid on the first loan? Or what you still owe on the second?

      You could just do nothing and if you are contacted by a debt collector at that point put in an affordability complaint?

      Reply

  18. Hi Sara,

    Im 21 and have three defaults on my name – a phone bill, loan and bank for about 2500 all together. I got them three years ago when in a bad relationship. I havent started paying them back yet and i know after six years they disappear but my credit score is stupidly low. Im not looking to get into any credit now but will my credit rating improve in time after the six years?

    What would be the best course of action

    Reply

    • Your credit score will improve when they drop off UNLESS the creditor has gone to court for a CCJ in which case it will get worse for another 6 years. See “So what is the best thing to do?” in the article above for your options.

      Reply

  19. Hi, I have 4 defaults on my credit report all in 2013 and 1 ccj default which has been paid somehow? I do not receive debt letters from anybody now, am i in luck that they will all be removed in 2019?

    On my report it, for instance it says default date 02-01-2013…. but on the same card it says last updated 05-03-2015…. which date would i have to wait until my defaults are removed?I haven’t a clue!! Thanks

    Reply

    • A debt with a first default date of 02-01-2013 – will disappear on 02-01-2019. But as the article above says you can’t assume you won’t be contacted about this debt before then. If the creditor goes for a CCJ that would be on your credit record for another 6 years.

      Reply

    • They can apply for a CCJ at your the last address they have. Eventually this tend to end up on your credit record :(

      Reply

  21. Hi Sara,
    As a lot of comments have mentioned….this is a very imformative web page, so thank you.
    I have a question of my current situation, I have recently applied for a mortgage after trying very hard to relieve all my debts etc…..and currently only have a credit card debt of £750.
    I am self employed and in 2010 I lost in the region of £60k as a sole trader, which left me with a lot if debt to pay. Long story short I owed a bank just over a thousand pounds (overdraft) and did not have the funds to pay back. This eventually got to just over £2,000 which consisted in nearly £1,000 of charges. At the time I didnt want to declare bankruptcy and took as much of the payments I could.
    Now applying for a mortgage this default has arisen, I havent had any correspondance of this debt for many years and it hadn’t appeared on my Experian report. After checking Equifax it shows the debt to be clearing in October this year. If I settled the debt now would this make a mortgage possible with either the same lender, or another?
    Thanks, T

    Reply

    • If you settle the debt now and its default date was October 2011, it will disappear completely in October this year. After that point you can apply for a mortgage with a lender that does know about it – that means not the bank you defaulted to and not the lender you have currently applied to who has uncovered this default. I suggest going through a broker who should be able to advise you on who to apply to.

      Reply

  22. Hi there when I was 18(now25) I got into debt with lloyds and became overdrawn by £333 stupidly at the age of 18 I cut my card up and forgot about it well last week I received a letter from drysden fair fax saying they were taking me to court for the debt (which by now I had totally forgotten about) the next day I receive a letter from the courts ordering a ccj I have until Tuesday (3 days) to either pay the debt in full or be taken to court the debt has now gone up to £418.08 I have the money to pay it just about but I’ve been reading lots online and not to sure if I have to or not?? Any help would be hugely appreciated thank you.

    Reply

    • Are you wondering if this debt is too old? The legal term is statute barred. Statute barred is a good defence to a Claim in court, but for overdrafts it’s not easy because there is no monthly payment so it’s hard to identify the point you “defaulted” on the account which would have given the bank a “cause for action”.

      As time is so short, the best thing you can do is talk to National Debtline about this – whether you have a strong enough case to defend, how you do that, or should you just pay. If you defend and lose, if you pay the CCJ within 30 days it is removed from your credit record, so it’s not a disaster to defend and lose.

      Reply

      • Thank you ever so much for your quick and helpful reply I think I am just going to pay it now so it’s off my back and don’t have it hanging over my head as i start university in September and don’t want a ccj hanging over my head or the worry of it. Thank you again.

        Reply

  23. Hi,
    Just hope someone can give me the correct action that I would need to take in my situation please. I had a payday loan from ‘MyJar’ in 02/08/2010 and at that time I was having financial difficulties and could not pay it back. Now I’m trying to sort my credit file as hoping to get a mortgage next year and I can see ‘MyJar’ has put AR markers on the account since 11/2014 and still showing as AR to this date. I haven’t had any payment arrangements with them . Should this account has been defaulted in 2010 itself when I didn’t make any payments at all? And what would be the best action to take at this point to minimize the impact this would cause? (I was entered into an IVA in 2010 but it failed and the record disappear in 2016. I’m not sure weather I included this ‘MyJar’ debt in IVA) Even If I settled it now it would show a further 6 years from the settlement date I think. I heard from somewhere AP/AR records disappear after 3 years(experience) and 5 years(equifax) is that true? I would really appreciate if someone could give me some advice on this please?
    Thanks

    Reply

      • Hi Sara,
        Thank you for the reply. It was with Grant Thornton and We informed them in writing that we are no longer able to keep the agreed payments on 07/12/12. But We never received their official failed letter from them so I don’t know the exact date. But the record came off from my credit files in 12/2016 after 6 years.
        Thanks

        Reply

  24. Hi, My partner has had a default for just over £200 show up on her credit file for a payday loan company called myjar. Now she never used myjar and is certain she never received any money from them. Now this was away back in 2013 and she never had contact from them. She disputed this on her credit file and now myjar contacted her (on an old email address) saying the payment of £389 was now due.

    Any advice on how to move forward with this situation?

    Thanks

    Reply

    • She needs to send them a version of a Prove It! letter – this can go by email to generalcomplaints@myjar.com.

      See https://debtcamel.co.uk/prove-it/. Her letter needs to say that she has never had a payday loan from MyJar, they have sent an email to an old address of hers asking for payments and they have incorrectly added this debt to her credit record (attach a screen shot of her credit record to show this). She should ask for them to confirm she doesn’t owe them any money and to delete the record from her credit file.

      If this doesn’t resolve it, she needs to ask them to send her a copy of the Consumer Credit Act agreement for the alleged debt. When she knows when the debt was taken out, she may need to get her back bank statement for that month to show she never received the money. But hopefully this can be sorted without that hassle.

      Reply

      • In the email it did mention that they had acquired it from another company called txtloan which my partner still says she doesn’t believe is correct. If this is an agreement would it not have been chased up by the bank? Would they not just take the money by direct debit again and again?

        Just can’t understand how this would lie since 2011 as it says on the credit file but the date they give is 2013. Baffled

        Reply

  25. Yes she did have payday loans but never from myjar. That she is 100% certain. All the ones listed on her credit file were paid off and settled. Now the my jar one has dissapered off her credit file. Really confused now. But the my jar one is a mystery to her anyway. How could txtloan, and I quote, transfer the debt to myjar? Thats the terminology they used in the email.

    Thanks For the help.

    Reply

    • Txtloan was a different brand name used by MyJar. I think she should read https://debtcamel.co.uk/payday-loan-refunds/ and consider putting in affordability complaints against ALL the payday lenders she used. Well unless she just took 1 small loan from a lender – then probably not worth bothering with.

      Where there is a balance owing (and obviously MyJar haven’t produced any proof there is as yet) if the affordability complaint is upheld, the interest is removed from the balance.

      If she complains to MyJar, she should say she has no knowledge of this loan final loan not being repaid – she would like a full statement of account for all her borrowing from them – but she would like to make an affordabilty complaint about any loans which were repaid including the last one which they allege isn’t.

      Putting in an affordability complaint will also stop them taking any court action until the complaint is resolved.

      Reply

  26. Hi Back in 2009 my partner left me in a lot of debt and as a single parent I was unable to pay the debts £10000 loan with lloyds bank, £2000 credit card with Lloyds. I opened a new bank account with Barclays and stopped making payements. I then occurred charges on an overdraft I had with Lloyds which totalled £1500. Over the years the debts have been sold on to different collection agencies and I have only recently started paying off the £1500 overdraft debt £10 a week. During the last few years I have rebuilt my credit score and none of the above shows on my credit file. In 2018 I would like to look at applying for a mortgage and my question is would the above debts effect my chances of being approved and do I have to declare them? I have never admitted I owe the above debts apart from overdraft debt. I have requested the agencies provide me with data to prove the debts are mine but they have not been able to.

    Reply

    • If you haven’t made any payments to the loan or credit card since 2009 those debts may now be statute barred, see https://debtcamel.co.uk/statute-barred-debt/ and you wouldn’t need to mention them on a mortgage application.
      And the creditor may be unable to produce the CCA agreements for the debts, see https://debtcamel.co.uk/ask-cca-agreement-for-debt/.

      You would however have to mention any debt which you have been repaying in the last few months, as a mortgage lender will be able to see that from your bank statements, even if it isn’t on your credit record. The best thing in this situation would probably be to make the debt collector an offer to settle the debt – they may be prepared to accept say £1000. The sooner this is done the better, even if it slows down the rate at which you are saving up a deposit.

      Also make sure that you do not apply for a mortgage to any lender that is associated with Lloyds such as the Halifax, as they may still be able to see your old debts from their internal records.

      Reply

      • Hi Sara.

        I know this is a old post but I’ve just received a mortgage offer of promise from Halifax. I had advised my mortgage advisor that years ago I had defaulted on a loan with Lloyd bank but he didn’t think this would be a problem as they only look at last 3 years or 6 years if there’s anything untowards showing. I’ve just had an offer on an house accepted and I’m really worried that when they come to do the full application this will come up. Should I ask my MA to look at another provider? Thanks Gabby

        Reply

          • The default date was over 6 years old and none is showing on my credit file I can’t remember the exact date maybe 2010. The debts was passed onto debt collectors and 2 were statue barred the only one I paid was the overdraft debt but this was through a debt collections agency.

          • Sorry, I didn’t realise you had already given the details about your debts in previous comments.

            My thoughts are exactly the same as they were in 2017. These debts are now probably statute barred and it is unlikely the CCA agreements could be found for them. If they aren’t on your credit record and your bank statements don’t show any payments to them in the last 6 months, a mortgage lender will not know about them unless you have applied to someone in the same group… which you have.

            I don’t know whether Halifax will now go back and check the Lloyds records. I don’t know if Lloyds will still have those records. And I don’t know whether Halifax will care if they do find out. Your broker may be right. I’m not sure what else I can say.

    • Thank you for your reply.

      Yes I’ve not made any payments since 2009. I will contact them and see if they will accept a one off payment of £1000 to settle the account.

      Reply

  27. HI Sara
    I know the period to enforce debt through CCJ by debt collection agency is 6 years . When does this 6 years count. Is it from 1st missed payment or from the date the account has gone into default, which shows on credit file.

    Reply

  28. Hi I have been contacted today from a collection agency about a debt on a mobile phone contract that defaulted on the 22/4/2009 I have had no contact with the original company I had the debt with since that year now nearly nine years later I’m told I owe £450 where do I stand? I’m not in a position to pay this with being sole occupant and income for my house any advice would be greatly appreciated thank you in advance

    Reply

  29. Hi I have/had an outstanding debt which was a personal loan. The last payment was probably 2007/2008 and last contact 2008/2009 by phone. No attempt of any contact on their behalf. Will this now be statue barred? How would I be able to get it removed from my credit report? I am in Scotland.

    Reply

  30. Hi
    I had a overdraft with my bank, of 5000 no idea how they gave me so much when I only got around 1500 a month. Anyway it states on my file that the default date was 30/4/2014 I live in Scotland so is it correct thathe it could become statued barred or expired after 5years ? I haven’t heard from them in around 2years and my credit file says last updated in 2015.
    Thank you Fiona

    Reply

  31. Hi i need some advice great website ive had a capital one card from 2002 to 2014 made payments and then stopped in 2014 lowell financial took over i haven’t made a payment since 2012 with capital one but lowell purchased the debt and 21/03/2018 they send me a CCJ is this debt statue barred ?

    Reply

    • No it can’t be statute barred as you have made payments within the last 6 years. Are they just starting to get a CCJ or do you now have one?

      Reply

  32. Hi, I am grateful for any advice, I had my home repossessed around 19 years ago, and after the Building Society sold my house they wrote advising I still owed around £18k. I have not paid anything since or acknowledged the debt, and after many years and many different debt companies writing to me, around 4 years ago it went quiet, and and I have heard nothing more. I have recently made a will, and have a few thousand pounds savings, can they claim on my estate when I die? Many thanks…

    Reply

  33. Hi

    I have 2 CCJ’s on my credit file one on the 19th April 2016 and another on the 21st Jan 2016

    I have never recieved any paperwork etc since the CCJs were enforced and nobody has chased me for this – Ive not moved house or changed any details etc.

    What would you advise?

    Reply

    • so you knew you were being taken to court for the CCJs? can you afford to make any payments to them? do you have other debts as well as these?

      Reply

    • Yes – I did get a letter, I have a bit of bad debt and im slowly working my way out of it.

      Nobody has contacted me asking for payments or anything etc. no not really im maxed out paying off other debt

      Reply

      • I suggest you contact National Debtline on 0808 808 4000 who can help you look at your whole situation including these two CCJs.

        Reply

  34. Hi Sara

    I have recently finished paying off all my creditors on a DMP. Woohoo.
    Unfortunately I have found out that my husband has an overdraft debt which defaulted in March 2013 that we were unaware about. The debt was with Barclays and my husband also has a Barclaycard so they would have had our address, but have never been chased. Barclays have not contacted him about the debt, but having recently moved and registering on the electoral roll I’m afraid of being contacted by a DCA. Does he try and contact Barclays to try and sort out a payment plan or wait a few months so it drops off his credit file?

    Reply

    • That’s a hard call. It will drop off his credit record even if he sets up a payment plan, but of course you may be hoping the old debt will just be forgotten.

      Reply

        • Statute barred for overdraft debt is tricky, but having a default on your credit record is a good indicator assuming he didn’t make any payments into the account after that? You could discuss his options with National Debtline on 0808 808 4000.

          Reply

  35. I there I have had a similar issue.

    I had an old student account I had being making sporadic payments too due to mounting debt a moving multiple times I struggled. I tried to set up a payment plan with them HSBC which they refused. The last payment I made was August 2016.

    Roll on August 2018 I have just finished paying Capquest for the HSBC debt they said they bought. My problem that I recieved no default letter from HSBC notifying me that the account was to be defaulted. Only ones from Capquest demanding payment which I proceeded to do instantly early 2017.

    Was it right of me to have paid Capquest? Why only now has the default appeared on my record?

    Reply

    • “Was it right of me to have paid Capquest?” Well you may have been able to get a partial settlement, but it’s too late anyway to think if you had any better options last year, you have paid it and that’s done.

      “Why only now has the default appeared on my record?” what date is this default? And does the debt show as having been settled in 2017?

      Reply

      • I did try for a partial settlement but Capquest refused. I have just settled so I waiting for it to update.
        The default date is Nov 29 2016. However I wasn’t aware HSBC were at that stage or I would have paid them. Would it help to complain to FOS about this or is it pointless?

        Reply

  36. Today I have received first contact from a debt collector in regards to a defaulted overdraft. The date of the default is 6th November 2012. So I’m around 6 weeks away from being statute barred. I definitely haven’t acknowledged or paid towards the debt in that time.

    The letter is asking me to make contact by end of this month, at which point there will be 5 weeks until statute barred.

    Would you recommend setting up a payment plan(will be token payments only tbh), or waiting till end of September and then going down the prove it letter route?

    As I understand it they need to send a letter before action as a final measure before taking court action

    Reply

      • The default value is £3000.

        I do have 2 smaller defaults from around the same time – 1 has just fallen off my credit report and one is dated December 2012. Value of those combined is under £400. I am making payments to all my debts apart from this £3000 overdraft default

        Reply

  37. I have just received a letter from arrow global regarding not sending out statements enough for my previous debt, according to the CCA. The debt was a capital one credit card back in 2008 and when passed onto arrow global was only a small balance of around £450,the letter included a statement showing payments made constantly from 2011 til 2013,bringing the balance down to £40 in September 2013. The strange thing is, I have never paid a penny towards this debt, truth is I had forgotten I even ever had the card til this letter came through. So I am clueless as to what’s going on, any advice?

    Reply

    • So Arrow say the balance is £40 and you were paying until 2013. And you remember the debt but say you haven’t paid since before 2011 so it should be c 450?

      Reply

  38. my husband has a car purchased with a hire purchase agreement through black horse back in 2011. The agreement was for 5 years so would have finished March 2016. So he gets mixed up with his dates and payments stopped in March 2015 assumed it was at an end and thought no more of it. Heard nothing from black horse for all these years then we applied for a mortgage last year (he has no other debt) and bam there’s a default on his file for £4000 from September 2015! Contacted black horse as this is the first either of us knew about it and they stated the debt was not being chased and would not set up a payment plan with him? So we have spoken to them a number of times since then, even made a full and final offer of £2000. This was ignored we called them and they said they didn’t routinely respond to letters and once again debt not being chased in fact it had been written off. We asked for that in writing ‘we don’t do that’ is the response. So we never received a default notice or anything to my knowledge. Following this phone call the debt is no longer on his credit profile no sign of it? We’ve checked all equifax Experian etc nothing there! Now my question is this, can they chase this debt and issue a ccj? Should we pay it? And can we sell the car if the debt attached to it has been written off?

    Thanks in advance

    Sam

    Reply

    • That is a difficult situation because you suspect that he did owe some money as he stopped paying a year early.

      First I think you should confirm that there is no HP registered against the car using one of the chekers in here: https://www.moneyadviceservice.org.uk/en/articles/how-to-test-drive-and-check-a-used-car#what-to-check-when-buying-a-used-car

      When someone refuses to put something in writing, I usually suggest that you send them a letter recorded delivery saying “I want to confirm our telephone conversation of dd/mm/yy so that I am sure I understood it correctly. You said [name of person if you wrote that down] that the alleged debt on my car [give car and finance reference details] has been written off and will not be pursued. I have also checked my credit records and it seems this alleged debt has been removed from the files – thank you. ”

      If you don’t get a reply to that, and nothing showed on your car chek, then I think you can safely assume this has gone away. If you are contacted later about it, you should complain that you are not being treated fairly and attach the letter, recorded delivery postage receipt, copy of your credit record check and the vehicle check. Keep all these for at least 6 years.

      Reply

      • Thanks Sara I will do exactly that. Is it likely they have done this as they have made an error either in not informing him of the default or the dates are wrong or something of that nature?

        Reply

        • Who knows? I suspect they have made some sort of admin screw up or there was an IT problem, But you just need to know you aren’t going to get any more problems,

          Reply

  39. Hi all
    nearly 5 years ago i left an address and did not pay the final water bill,
    They have confirmed that the last payment was August 2013 and asked me to set up a payment plan, I wrote back and advised i disputed the sum of £1500 i was never in a position to pay it then and am not now. Heard nothing.
    I have now started to get letters from collectors, now I have one threatening that i must make payments or face CCJ proceedings.
    I have written to south west water again stating I do not recognise the debt and to call of this orbit company as i dispute the bills and always did.
    Nothing shows on my credit report about this debt, so in theory i assume they have not put it as a defaulted account, when would they or will they do this?
    if I offer 10 pounds a month till next august can i then say you had 6 years i paid some more but now its to old? and charges on the bill must go way back to more like 8/9 years ago as i never cleared the bills there.
    Can they suddenly put a default on my credit file now after 5 years?
    I will not contact the collections company only the water company direct by email so its all in writing..
    Please can someone advise my best course of action as i cannot afford the debt and always disputed it, it has never gone as default on my file, can they default me now after 5 years? or does it have to be from date of last payment n 2013?

    Reply

    • Can you say why you were disputing it – apart from not being able to afford it, was there a reason why you think the amount was wrong?

      Reply

    • yes i was convinced the charges applied to 2 houses… i lived in a small terrace that was split once from a larger house they wanted 80 per month for water bill when only me and 2 small children lived in 2 up 2 down…

      Reply

      • ok, to answer your questions:

        “Nothing shows on my credit report about this debt,”
        have you checked your credit records with all three credit reference agencies? See https://debtcamel.co.uk/best-way-to-check-credit-score/.

        “if I offer 10 pounds a month till next august can i then say you had 6 years i paid some more but now its too old?”
        No. If you start paying a debt that restarts the 6 year clock, so it won’t become statute barred.

        “can they default me now after 5 years? or does it have to be from date of last payment n 2013?” if they add a default now, it would have to be backdated to 2013

        I think you should put in a complaint to customercontact@southwestwater.co.uk. Put COMPLAINT as the title. Say you have always disputed that your billing was right, say why, and ask for a response to this and for a complete statement of account showing what has been paid.

        Reply

        • Thanks I have been emailing cutomer services but I will do the complaint too. I have also written to ofwat as I am convinced the bill was always incorrect.
          Will update on any further information
          Thanks again

          Reply

  40. Hi, minicredit loan taken out 3/8/12 No payments made or contact by me. I had lots of payday loans at the time paying off to take out again. Default on creditfile says 29/12/12 Kapama say they have purchased 20/12/14. No contact by me. Moriaty law sent court claim dated 29/11/18. Is it statute barred before the default date. Should i put in defence stature barred. I am right to think it would be 6 years from missed payment which would of been 42days after the 3/8/12?

    Reply

  41. I dont know if this applies here but i took a loan out just under 18 months ago, but they never even tried to take a payment and if they did they did not contact me. I have just recieved a letter regarding the loan from the company but it doesnt say anything about court. Why have they only decided to contact me now?

    Reply

  42. Hi looking for some advice. I have an old debt approx 30k (interest accrued). The original debt was taken out in the late 90s and I was taken to court with a ccj and an interim charging order (joint mortgage). I can only afford to make minimal monthly payments so the debt in effect will never be paid of. The property with the charging order is no longer lived in by myself. My ex lives in it now and has done since 2002 I have made no mortgage payments but my name is still on the deeds. I now have a very healthy credit score. My question is where do I stand with this old debt as I am now in a relationship and we are looking at buying a house together. I’ve read about the cca. Would this be applicable? Thanks

    Reply

    • The CCA is no longer relevant after a CCJ. This debt will never become statute barred as there is a CCJ and the interim changing order will remain.

      I’m not sure how you you can only make minimal payments to this debt and that you are looking to buy a house, unless the whole deposit comes from your new partner?

      Is there still a mortgage? If so that will also be a potential problem for a new mortgage application. How much equity is there in the house, do you have an agreement with your ex about this?

      Reply

  43. Hi,

    i have a CCJ on my credit file date from 29/10/2014. I have now had a letter from the lowell solicitors claiming that they will enforce the CCJ. I have had no contact with lowells since the CCJ was applied and am aware that it will drop off in a year or so. Question is do i ignore there requests or shall i pay off the debt via a monthly agreed fee. If i start paying of the debt will my ccj remain on my credit file for a further 6 years upon my first repayment? any advice will be appreciated.

    Reply

    • If you ignore their requests, they may try to enforce the CCJ through bailiffs or an attachment of earnings order or a charging order if you have a property. You may want to take debt advice about your options – National debtline are good people to discuss this with – 0808 808 4000.

      Whether you start repaying the debt or not, the CCJ will disappear from your credit record after 6 years.

      Reply

  44. Hi I have just received a letter from BPO Collections stating that I apparently owe THe student Loans Company £575 since academic year 2008-2009,This is because I had to drop out of University. I was pretty shocked to receive it because I haven’t heard anything from them in so long!! Why would I receive a letter from a debt collectors first and not Student Loans them self?? And Am I obliged to pay if it’s over 10 years ago???

    Thank you,

    Reply

  45. I have just received a letter from Cabot stating I owe £2000 on an Associates credit card which they say I am supposed to have held between 2001 – 2002 and the last payment made was in 2010. I have had no correspondence until now, where do I stand with this?

    Thanks

    Reply

    • Do you remember having this credit card? There are different ways to challenge whether you need to pay this alleged debt whether you say Yes or No.

      Reply

      • I did have a card but at no point do I remember the balance being so high. I am sure it was just a £500 limit

        Reply

        • I suggest you reply saying that the card limit was a lot lower, you do not remember there being any balance owed and you have not previously been contacted about owing any money for this (is that right?) . Ask them to send you a copy of the CCA agreement for the debt and a statement of the account whichy shows what the balance is.

          There is a template letter for that last bit here https://www.nationaldebtline.org/EW/sampleletters/Pages/Information-about-your-agreement-under-the-Consumer-Credit-Act-(sole-name).aspx. Use the exact words in the template letter, send yous letter to Cabot recorded delivery and enclose £1 as it says.

          If they can’t produce the CCA agreement, the debt is unenforceable.

          If they can, you can then argue that it is statute barred, but that is more complicated so go for the easier route first!

          Reply

          • That is correct, they have not been in contact since 2010.

            Thanks, I will send that off, it isn’t on my noddle record, does that make a difference?

            Thanks for the help

          • Not being on your credit record supports what you say that you had no idea you owed any money.

  46. Hi, i have an old balance with Halifax, the defult date shows as aug 2013 a balance of £0 and states its is settled. However once a year i get a tatement to say the balance is £2000. My mortage application is going through at the moment (they know about the defialt but are happy as it shows as satisfied). Should I be concenred that halifax could just update the file at any point to show the balance as £2000 and not £0? Or would they write to me before changing it on the credit file? Also why would it show as £0 and settled, does that mean they have forgotten it? I have been saving money just incase they ask for it just before the default drops off my credit file. Thanks

    Reply

  47. Help, weve just been applyed for a remorgage, and an old account from 2009 has been asked about by our new lender, not to sure if this is a CCJ but i think the term they have used is there has been an equitable charge in favour of XYZ. In 2009, and they want to know what this intales and also will this be removed on completeion of our morgage. The lender has never been in touch weve never recived letters, where do we go from here its been nearly 10 years since they contacted us. The debt doesnt not show up on either my wifes or my credit report. What will happen.

    Reply

      • Ive checked the link you sent myself, and doesnt show anything on my adress, just land registree fees paid, we was aware of the CCJ and we arranged for a monthly payment to be paid, after a few years the lender stopped taking the payment out, and weve not heard of them in 7 years????

        Reply

        • Are you applying for the remortgage through a broker? If yes, you could ask them.

          If no, you could go back to the lender and say you thought that debt had been repaid and you can’t see any trace of it any more, so what are they looking at which shows you still owe something?

          Reply

  48. Hi,
    I have received a letter from Intrum, saying they’ve been assigned a debt allegedly owed by me to Lloyds bank – yet I have no knowledge of this.
    I have never received any paperwork, letters, assignment notice or had any debts with Lloyds for over 15 years….
    I did have a small loan which I defaulted on around 15 years ago, due to ill-health, which the insurance paid for a while but then Lloyds said they would no longer be pursuing the debt due to my health/circumstances….
    Also, the original debt was for only £3,000 and this one I’m being pursued for is for £7,500! I will write to Lloyds bank but where do I stand with the debt agent?

    Reply

  49. Hi, hope you can advise on my situation.
    In June 2003 I took out a loan with my bank to consolidate debts and an existing loan with them. At the end of 2003 I was signed off on sick leave by my dr and I was in receipt of SSP, I approached the bank explaining my circumstances and the agreed to put me on a managed loan. The last payment i made was in may 2004 and the bank chased me, I wrote a letter to them about my situation and I never heard another thing from them so I didnt approach them either. What has happened to this is it likely to rear its head even though its 15 years ago? Its not on my credit file and I have sucessfully got a mortgage?

    Reply

    • The odds are you will never hear anything more about this. If you do, then there is a VERY good chance that it is statute barred – the bank should have taken legal action much much earlier and it is not too late. If you are ever contacted about the debt (which is unlikely) talk to National Debtline about what you should do.

      Reply

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