If its been several years since you stopped paying 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”. Perhaps the debt collector has forgotten about it…
Mr H has a typical situation:
I stopped paying a loan at the start of 2016 when I lost my job. I have a Default on my credit file for June 2017. 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 2023 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?
This article looks at what may happen.
The problem for Mr H is that debt collectors are taking more people to court for CCJs than they used to. In the first quarter of 2023, there were more that 250,000 CCJs – up more than 14% on the same quarter in 2022 (statistics from the Registry Trust).
And debt collectors often wait for years before they do this. So not having heard from a creditor for several years doesn’t mean that they have forgotten about you or decided to clear your debt.
If you have been making debt payments, even very small ones, this article isn’t relevant for you – instead read Should I keep paying an old debt?
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.
Mr 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 can still take him 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 from a debt collector 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 – indeed it will be months if you defend the case. But debt collector only has to 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. In 2019 court case has made it more difficult for some loans and credit cards to become statute barred. And it can be difficult to tell when an overdraft is time 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 go to court if you don’t respond to them.
And debt collectors are taking more people to court about small debts than they used to. A half of all CCJs are for less than £800 and many are for only a couple of hundred pounds.
So ignoring letters isn’t a good idea because you could end up with a CCJ.
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 – sometimes the debt collector doesn’t have the right documentation to get a CCJ! For some debts the creditor has to be able to produce the CCA agreement for the debt and if they can’t the debt is unenforceable and they should not go to court at all.
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.
Have you moved?
If you have moved and not informed the creditors of your new address, then it’s possible the letters are going to your old address…
In this case the letters could turn into court papers and you could end up with a CCJ without knowing about it. That is actually more likely that the debt just being forgotten and going statute barred.
And annoyingly although the creditor didn’t seem to know where you were for the CCJ court papers, as soon as there is a CCJ they then seem able to find you and get it added to your credit record.
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, I suggest you contact the debt collector yourself and settle the debt – this could be a full and final settlement offer.
Wanting a mortgage, you do not want to make a monthly payment arrangement, because then a mortgage lender will see the payments from your bank statements even when the debt has dropped off your record.
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, it’s best to assume that it won’t. Have a look at this overview of possible debt options.
Ask for the CCA agreement for old debts
Partial settlements & getting a mortgage
How much will my credit score change if…
Sam says
Hi Sara,
In late 2014 I lived in a shared house with tenants who dodged paying the last £50 bill before moving out. We had a joint contract. A few debt agencies + 5 years later I have not made any contact with anyone regarding this debt. I doubt any of the previous tenants have as well.
Fast forward to 12/2019, my British Gas account was transferred to Lowell. British Gas wrote saying ‘this letter is formal notice of assignment of your debt to Lowell … we’ve closed your British Gas account … Lowell is now the Data controller’.
Shortly after this, Lowell wrote ‘Your British Gas account was sold to Lowell in 12/2019 … Please call us to talk about paying your account … Where appropriate, as part of the transfer, Lowell will take over the REPORTING of information against your credit file’.
British Gas never registered a default on any of the three CRAs (which is odd).
Given that I – and the other joint tenants – have not made any contact/payment to British Gas or Lowell, can they still register a default on my credit file even after 5 years? More importantly, can they threaten with a CCJ if there is no default for the account beforehand?
Thanks in advance!
Sara (Debt Camel) says
You may know this but in case you don’t: If you were sharing a house, then you are probably jointly and severally liable to pay this bill. The fact the other tenants dodged it doesn’t mean you are not liable.
British Gas’s credit reporting isn’t reliable.
If a default is added it should be back a few years.
Defaults on a credit record have NOTHING to do with taking you to court for a CCJ. Anyone you owe money to can take you to court for a CCJ. A friend you owe money to can.
For £50 you agree is owed, is this worth the hassle?
Sam says
Really appreciate the quick reply Sara.
Yes, we are jointly and severally responsible. I’m a bit confused how a default isn’t connected with taking me to court. When I read Citizensadvice’s topic it suggests there are three steps that must always be followed (https://www.citizensadvice.org.uk/debt-and-money/action-your-creditor-can-take/if-youre-being-taken-to-court-for-debt/ )
“If your agreement is covered by the Consumer Credit Act, your creditor must follow all 3 steps of the process before taking you to court for debt. Your creditor must send you a:
1. default notice
2. letter of claim
3. claim pack
Am I in the wrong here (I probably am xD)?
And what do you mean that British Gas’ credit reporting isn’t reliable? Surely if they were meant to register a default and did not (or delayed it), then they and/or Lowell couldn’t just backdate it to a random date? If they wanted to do this it would have to be backdated within 6 months of last paymebt, right?
Thanks again in advance.
Sara (Debt Camel) says
a) this debt is a utility bill, it is not a debt that is covered by a CCA agreement
b) if it was a CCA agreement (which it isn’t) then the creditor has to send a Default Notice. This is a letter in a set format. But it, confusingly, has nothing to do with a default being added to your credit record.
The date of the default will relate to the date of the bill, not your last payment which settled the previous bill.
debs666 says
hi sara , looking for a bit advice , ive had a letter from hmrc to say they have contacted my employer to have money taken off my wages for a £2213 debt , i had no clue what this debt was so phoned them and they said it was an over payment of working tax credits in 2011 ,ive not claimed wtc in a long time and dont understand how or when i could of had an overpayment without knowing about this , the person i spoke to couldnt really say much more than that as it was soo long ago , can this be upheld or can i refuse to pay it as ive never had any communication before now , ive wrote to them and ask if all details of payments and claims can be sent out to me , thanks
Sara (Debt Camel) says
Can you go to your Citizens Advice for help with this? They will have seen this before :(
debs666 says
thanks for replying, i will make an appointment
JohnTheDebtCollector says
This sounds like fraud to me. I’ve never heard such thing. But I believe it does happens. As Sarah said check with citizen advice.
Nat says
Hi Sara,
A bit of advice, an apologies as I know this is probably something you’ve got before and something I’ve let myself get out of control. Many years ago I racked up a bad debt with Capital One after getting very ill and losing a job, and defaulted on the payment. I’m now trying to get back on my feet again, and recently bit the bullet and checked my credit report. I defaulted back in August 2014, and I haven’t heard from them since, my address is up to date with everyone so I assume they would be able to find me. After reading your post I’m a bit petrified that they’ll just serve me a CCJ now as it comes up to the Stature Barred cut off, which I definitely couldn’t pay off and that would ruin me for the future. Should I reach out to them and try and find a way to pay it off in instalments, and would that wipe the debt off my credit score after the default date in August 2020 or reset it for another six years? Hope that’s clear, I’m trying really hard to mend my credit and I think this is the thing that’s ruining it.
Sara (Debt Camel) says
Well… first are you sure Capital One hasn’t sold your debt? because they normally would with old defaults? Have you looked at your credit record with all three credit reference agencies (see https://debtcamel.co.uk/best-way-to-check-credit-score/), is the Cap One debt marked as having an open balance? Or satisfied? And are they any debts with debt collectors you didn’t know about for what looks like roughly the same amount?
Lenders such as capital One almost never go to court for a CCJ. Very few lenders, mostly guarantor lenders like Amigo, actually take a customer to court for a consumer debts, not a large business loan.
Nat says
Hi Sara, thank you for your swift reply. On my credit report it just says that I have an open account with Capital One, with the amount, and the default date as August 2014 and then a series of defaults since that date. There isn’t any other company with the amount or an amount similar on my file either, just them. I’ve checked this against two other credit reports too (ClearScore, Credit Karma, TotallyMoney).
Sara (Debt Camel) says
So TotallyMoney reports on TransUnion data, just the same as Credit Karma. I would expect them to show the same. It’s not worth your time looking at both of them.
You haven’t yet checked Experian data – use MSE Credit Club to do this. It may well be the same, but why cross your fingers when you can check and make sure?
Nat says
Hi Sara, just checked MSE Credit Club (thanks for this, I had no idea!). It says ‘Default/Ended’ and Account Settled, and a ‘Gone Away’ status. There’s no other information and no other place where it has been transferred or another company with the balance. Is this anything to worry about?
Sara (Debt Camel) says
ok! I suggest you contact Capital One and ask who they sold the ALLEDGED debt to.
Gina says
Hi looking for some advice please.
I got a CCJ issued against me in October 2014. I tried to contact the debt collection agencies that obtained the order to set up a payment method to be told they had sold the debt after the order and the new debt collector would be in contact with me to arrange payment. Ive not recieved anything since so as was unsure what to do just waited on them contacting me.
Today I’ve recieved a letter from Arrow global saying the are sending the debt to resolvecall and await contact from them. I don’t understand why after so long when the CCJ was due to come off in 9 months they have decided to contact me. If I now set up a payment plan with Resolvecall (if and when they make contact) will it restart the time this will stay on my credit file?
Sara (Debt Camel) says
No this will drop off after 6 years from the date of the CCJ.
Elaine says
Hi, just looking for some advice please. I got refused a job due to my credit report in February 2020 and I noticed on my credit report a default from Npower back in February 2017. I called Npower and they said it was debt from 2009-2012 amounting to £1300. I remember in 2012 I got a prepayment meter installed to help pay for money outstanding but I don’t agree with the amount they say that i owed. As I only just recently found this out I requested a copy of my Sars report but was advised that they can only go back to when the meter was installed, I said but the debt in query is relating to 2009-2012 which you’ve added as collection in to my meter and I’m disputing this amount. I was advised they don’t have any information relating to this time as they only keep records for 6 years. She said they could take it to deadlock and before she done this what would I like to happen, I said I wanted the default of my cf and she said she was surprised it had happened as they had only sent out a final bill with no further correspondence. She advised she would pass it on to the relevant department and get back to me with regards on the default, I also said that I still need the information relating to the original debt but said we would discuss this next week. Really don’t know what to do now, any help would be appreciated thanks.
Sara (Debt Camel) says
when was the final bill for this debt? are you still living in that property?
Elaine says
I’m not living there but my daughter still lives there.
They said I’d left the property with £600 still in debt. That was 4years ago in March.
Sara (Debt Camel) says
OK, so when you say “in 2012 I got a prepayment meter installed to help pay for money outstanding but I don’t agree with the amount they say that I owed.” do you mean that in 20112 you didn’t agree with the amount owed?
Or that you agreed at that point but it was less than the £1300 they are now saying it was?
Elaine says
At the time I didn’t agree in 2012 and was told it would be rectified and I assumed that it was done automatically that’s why I thought my debt would have cleared from the prepayment meter but was left with £600 in debt, that’s why I was wanting a sar to confirm that I wasn’t due that amount.
Sara (Debt Camel) says
Do you have any record (letter? email?) of having said the amount in 2012 was wrong?
It is a shame you did not follow this up at the time.
Elaine says
Hi, Unfortunately I don’t. So it’s pretty much there word against mines now, just don’t understand why they wouldn’t keep any records of the debt. Thanks sara
Victoria says
Hi, I hope someone can offer me advice.
I have been in the process of paying off debt which was ran up when I was on the bread line but in a better position now.
Currently dealing with Lowell. They confirmed the amounts and what the original balance was for which I had to ask for as I have had no contact from them at all for years. I only knew because I went with my credit report. I paid one off with a full and final settlement and have another 2 on a payment plan.
However I received 2 letters last night saying they “forgot” to send out the Formal Letter of Assignment when they purchased the debt. Does this change my position at all? Or will I still need to pay? I do not dispute I owe the £ but now thinking they havn’t followed process.
Thank you in advance.
Sara (Debt Camel) says
How old are these debts? How long has it been since you made a payment? what sort of debts were they?
victoria says
Hi Sara.
The debt for the full and final was a credit card. I made a payment on this on the 25th Feb 2020. It was opened in Aug 2015 and defaulted Oct 2016 – I hadn’t paid anything on it until last week between these dates.
The 2 I have set a payment plan for is for British Gas. My first payment for these isn’t coming out until 25th March 2020. This was opened in Sept 2013 and defaulted in Aug 2015. Havn’t paid anything on this at all until the end of this month.
Sara (Debt Camel) says
OK, so those debts are not “statute barred” – you have to have not paid them for at least 6 years for that to be possible. That was why I was asking.
Setting up a payment plan is a good idea for these BG debts (unless you can offer a F&F settlement to them?) It doesn’t really matter they forgot to send you the letter of assignment.
victoria says
Great Thank you Sara.
I will just continue to go with the plan I have.
I can afford a Full and Final next month….I might contact them to see if they will accept this over the payment plan.
Thank you for your help! :)
P says
So… I have a debt that in August 2020 will be 6 years since the date of the default (Aug 2013)).
It’s just dropped off my credit file in the last couple of days so I’m expecting a letter (having read this post).
Am I correct in thinking that whether I settle the debt in full or make an agreement to pay off the debt in instalments, even if it is a token monthly payment, it’s not going to matter either way in terms of my credit rating because the debt will drop off in 6 months. The only problem would be if they decided to go for a CCJ, which would be added to my credit file.
In essence, unless there is a possibility of a CCJ, there’s no point paying it off in full in the hope of improving my credit rating?
Sara (Debt Camel) says
“the date of the default (Aug 2013)).”
was this the date on a Default Notice that you were sent?
E says
Hi I hope you can offer me some much needed advice. I had a debt with welcome finance in 2007. A CCJ was issued that expired and came off my credit file in 2015. However the debt was passed to various debt agencies over the years, all of which I ignored. Now Robinson way have sent a company called resolveCall to my door who left a note to contact them. Is this debt statute barred? I don’t know what to do or where I stand.
Sara (Debt Camel) says
CCJs never become statute barred.
But the good news is that if a creditor wants to enforce them (eg with bailiffs) after 6 years of you not paying anything, they have to apply to court for permission (see this fact sheet https://nationaldebtline.org/fact-sheet-library/statute-barred-debts-ew/). And the courts will not often do that…
So if you are told that the debt is still legal, not statute barred and you need to make an arrangement o pay, I suggest you push back with “National Debtline says that because you have not tried to enforce the CCJ within 6 years, you have to go back to court to get permission to do this.”
Kasam ali says
Hi my friend was in violent relationship – the guy opened a few payday Loans on her name after 4 years we found out what can we do to get them removed or what is the best action ?
Sara (Debt Camel) says
Were these opened 4 years ago and she has only just found out? Or have they now been opened after they split up 4 years ago?
Kasam ali says
She only just found out but they split up 2/3 year ago ? One is with wonga and payday express this caused defaults on credit scores also he took two mobiles out on EE on her name which have not been paid all so have a default
Sara (Debt Camel) says
did he have access to her bank account?
Kasam says
Yeah he did – she no choice he controlled everything but what will best way to go by it ?
Sara (Debt Camel) says
Did she ever report him to the police at the time or soon after she left? If not, it is may be very hard to convince the creditors that she didn’t know about these debts.
Sophia says
Hi, I hope you can help.
I have a default on my file that should become statute barred on 6th November 2020. (This is 6 years after date of default).
I am in a position where I am preparing to apply for a mortgage and also in the position where I can pay the debt in full (it’s £431).
I have two issues though…
1. The debt is registered at an old address who does not have my forwarding address. (This means I have no idea what contact they have attempted to make)
2. My biggest question is… If I contact them now and make payment in full. Would that payment still be reflected on my file 6 years from now or would the whole account still drop off on 6th November 2020?
I just really want to avoid a ccj and also really want this off my file this year.
I hope my question makes sense.
Thanks!
Sara (Debt Camel) says
If there is a default on your credit record, it will drop off after 6 years. Whether you pay it ot not. But paying it now will stop the debt collector going for a CCJ over the next few months.
Sophia says
Hi Sara,
Thanks so much for your swift response. Super helpful! I will get that paid then.
Thank you!
Roger says
I had a series of defaults from around 6 years ago. Over the last couple (and next couple) of months they have dropped/will drop off, then I will have a default free credit report.
However, one of the debts was sold after a couple of years to Link. On Experian and Equifax they added new accounts with the original default dates, so I anticipate these dropping off next month.
With Transunion they have incorrectly added a new account with a new default date when they bought the account (several years after the default), therefore, it won’t automatically drop off for several years.
I’ve not had any contact with them for many years, so I have been waiting for the Experian and Equifax defaults to go, before then tackling getting them to change the Transunion one.
What is the best way to approach this?
Alex says
Hi Sara,
I have recently looked into my credit score on clear score, i have an open defaulted account with EE it says current amount £711, first default was feb 2015, last updated 14th july 2015, Would this balance be the balance if i contacted them to pay it or will they sting me for more?
Obviously it is due to clear off in a year, if i call them to pay and ask for maybe a payment plan as i dont want this to turn into a ccj will it still clear on my report in 2020 or will make the 6 years start again?
Thank you!
Sara (Debt Camel) says
Would this balance be the balance if i contacted them to pay it or will they sting me for more?
I don’t know. credit records aren’t a completely reliable way of telling how much you owe.
will it still clear on my report in 2020
if the default date on your credit record is feb15 then it will clear from your credit report in feb21, not 2020. This will happen whatever you do – pay it or not, contact them or not.
But paying it will stop it turning into a CCJ.
Amy says
Hi there,
I’m wondering if you can give me some advice. I do not currently live in the UK, but I still have 2 credit card debts which I have been paying since I left. Unfortunately, with everything that has happened over the last few months, I have lost my work and had to spend all my savings on an emergency operation I had in January.
Technically, I am still a resident in the UK (I do not have residency anywhere else), but my cards are registered at my mum and dad’s address. I know I cannot keep up on payments, but I’m also not planning on coming back to the UK.
After reading various articles, I think I’m going to stop paying now and see if I can settle with a lump sum. My question is though if my parents can get implicated, either with bad credit or anything ccj related.
Thanks in advance!
Sara (Debt Camel) says
Your parents can not be affected by your bad credit even if the cards are registered at their address.
In theory they could get a bailiff coming round, but this would be after a very long while. First the credit card company would realise you had stopped paying, send puzzled then cross letters, default you, after a while (usually at least a year0 they may sell the debt to a debt collector who would then try to get in contact. It takes a long while for a debt collector to decide to go to court for a CCj, that takes a few months. bailiffs can’t be sent until after there is a CCJ.
If bailiffs do turn up, your parents just say you haven’t lived there for years. Bailiffs have no right of entry.
Edward says
Given the current situation, yu could well be in a much more powerful situation than may appear. You could negotiate this with the card provider. Firstly write to the service address, with copy to the e-mail address (don’t call). Explain the circumstances, and be clear that it is the recent job loss that removes any chance of continued, even minimum payment.
They will use every tool available, payment holidays, interest rate adjustment and even write-off of charges. At some point they will accept a repayment plan that writes off the debt at say 20% to 30% of value; this is much (much) higher than any debt could be sold for recovery.
The important point is to stay in touch, and to stress in the first letter that any further payment is now impossible due to circumstances beyond your control. Your UK credit history will be disrupted, and were you to return will have to be rebuilt based on your overseas credit rating. My guess is that you should do all you can to protect that.
Naz says
Hi there,
I have a debt from Aug 2019 for a car loan for £4141 I’ve only recently been contacted to say the debt has been sold to Debt Managers Services Ltd and i can settle with a full and final settlement of £3000. I don’t have that kind of money and i know from my credit report it will drop off in Aug 2020 (only 2 months away). If i put a payment plan in place would this restart the date and show as a new credit or shall i ignore and hope for the best? I’m stressing they might send a CCJ if i don’t respond by the end of june as they’ve highlighted. I’ve asked them for a copy of the credit agreement in the meantime. What do you suggest i do?
Sara (Debt Camel) says
If i put a payment plan in place would this restart the date and show as a new credit
It would restart the statute barred clock. But you may already have done that by asking for the CCA…
It will NOT show up as a new credit on your credit record.
Naz says
Thanks for your reply!
Oh no. I was recommended to do send the letter by a debt advisor :/ so does that mean the debt will stay on my file for another 6 years? Or will it disappear off my file in August and they’ll still be able to apply for a CCJ if it’s not statue barred?
Sara (Debt Camel) says
You may be OK, it depends on how the CCA request letter was worded.
This debt is going to drop off your record whatever you do. Ignore it, pay in full, pay partially, set up a repayment plan for £1 a month or £200 a month. It will go.
But a debt dropping off your credit record has nothing to do with whether it is statute barred, talk to National Debtline on 0808 808 4000 about this debt and the CCA request you sent to them.
Of course if they can’t produce the CCA, then you can ignore the debt as they then can’t go to court. I have no idea how likely that is.
Carol W says
Hey there,
I’ve 2 utility debts: British Gas and Severn Trent (water). Last bill from BG was October 2014 and last bill from ST was February 2015. After checking all 3 CRAs I have: no registered default from BG but my debt has been transferred to a DCA (I know this from letters); registered default from ST on 2/2015 for £300. However, Experian shows another default entry for ST on 01/2016 for £0.
1. Do I have two defaults from ST?
2. Will they go away from my credit report after 6 years?
3. If I decide to pay the DCA my debt would that result in a default being added to my credit report on the day that I decide to pay (because I’m acknowledging it)?
Thanks a bunch Sara :)
Sara (Debt Camel) says
Does Experian show “both” ST defaults or just one?
All defaulted debts on a credit record drop off after 6 years.
BG’s credit reporting is odd and erratic. If you pay it and it isn’t on your credit record, it shouldn’t just appear. If it does, you can argue it should have been defaulted in 2015.
Carol W says
Blimey, I totally confused myself. Experian only shows one ST default – nice catch Sara!
The first entry for this debt is 02/2015 for £300 (Red ! – ‘Account is defaulted’).
I have the same entry for £300 for the next three months.
After that I have the next 7 months with no entries for £0 (Blue ? – ‘no information’).
And finally, I have the last entry on 01/2016 for £0 (Red ! – ‘Account is in default’).
Am I correct to think the latest update date of 01/2016 would be used when this defaulted debt drops from my credit report? I haven’t contacted anyone about this debt and haven’t acknowledged it, so I don’t know why it was updated in 2016. The last bill was issued on 02/2015.
Sara (Debt Camel) says
what report are you looking at?
Carol W says
Experian report? Sorry if my explanation wasn’t very clear. When they gave me the credit report copy they also include a small handy manual/legends leaflet. In the leaflet they explain what the exclamation and question mark mean; also next to every month they include a short explanation of what has been reported (hence the ? meaning ‘no information’ and ! meaning ‘account in default’).
Sara (Debt Camel) says
so is there a symbol for “missed payment”
Carol W says
I’ve uploaded my online Experian credit report’s defaulted account. I apologize if I haven’t explained very well beforehand. Please have a look [deleted] All the info is on the pictures (except personal of course).
Sara (Debt Camel) says
So that report may look pretty but it’s lacking in an important detail – what the default date is – that is an actual day dd/mm/yy.
I suggest you ask for a copy of your free Experian statutory report – not nearly as pretty but it has all the data. See https://www.experian.co.uk/consumer/statutory-report.html#section-three-hp.
Also if you are paying for this Experian report, stop! You can get all the info for free, see https://debtcamel.co.uk/best-way-to-check-credit-score/
Carol W says
Hi Sara and thanks for the suggestions, I appreciate it.
I’ve actually ordered my free statutory Experian credit report a few months ago as you suggested. Are you ready to hear the crazy part? I have no defaults on my credit report from Experian :D
The images I supplied are from MSE’s free Credit Club which, as you know, uses data from Experian. There is a discrepancy between the two because as I mentioned, I DO have a defaulted account from ST. It’s really weird that it is not shown on my actual report from Experian but rather on the one from MSECC. You’d think it would be the other way around (i.e. Experian showing the defaulted account and MSE omitting it).
Do you know what the reason might be? Everything else seems to be the same and matches from both reports.
Sara (Debt Camel) says
Is the MSE CC report after the Experian statutory report?
Carol W says
No, it’s before it. I took a screenshot of the MSE CC on 23/01/2020, then requested and received my statutory report from Experian on 17/02/2020.
Sara (Debt Camel) says
then I suggest you get new reports and see if the problem persists. If it does, ask MSE CC to explain what is happening.
Thomas says
Hi Sara,
I have a Hire Purchase debt that defaulted in April 2019.
I have not heard anything from the company the agreement is with or a Debt Collection. I would like to go about paying for my Hire Purchase agreement again as before.
Is this still possible? Or will I have a chance to pay a Debt Collector in installments before a CCJ?
Sara (Debt Camel) says
has the debt been sold to the debt collector or are they just collecting on behalf of the finance company? Who was the original lender? That is a very long while for a HP lender to be silent.
Thomas says
Sarah,
To my knowledge this has not been sold to the debt collector. The original lender was Brighthouse / Caversham finance.
I had a direct debit setup with them Since i started the HP in June 2018 & was paying fine. I had 1 direct debit bounce due to a new job (Change of payday) in Feb 2019. They never reinstated the Direct Debit nor did they contact me to reinstate it or inform me that it had bounced. I only noticed it had bounced in April 2019.
They have not made any contact with me what-so-ever for payment or to setup a new agreement.
Sara (Debt Camel) says
how is this showing on your credit record at the moment?
Thomas says
It is showing as Defaulted since March 2019
Sara (Debt Camel) says
BrightHouse is now in administration – that may make it difficult to get complaints resolved. But if you phone them up I would expect they will be happy toset up a new DD for you
If your loan is sold you can come to an agreement with a debt collector.
But was this your first loan from them? Were the repayments difficult to manage?
Thomas says
Good morning Sara,
Okay thank you. Ill see what I can do by calling them.
Yes this was my first loan and yes, this was rather difficult to manage
Paul says
i have debts from 2009.
i have moved address and have had no correspondence at my new address.
Last year i searched for ccj online and found one from 2014 but repeated the search this year and it came back no records found.
I want to know what my next steps should be.
Do i send statute barred letters to the creditors?
Can i send the statute barred letters using a P,O box as return address?
Is the amount on the ccj from last year the total amount or can interest and costs be added to this?
I would like to try and sought out what i can but am concerned if i put my head above the parapet i could have lots of people knocking on the door.
Sara (Debt Camel) says
is there a reason you don’t just ignore them all until they contact you?
Paul says
Yes I think I want to address them and know that they are dealt with, so the bit of peace of mind can be replaced.
As I have been in denial about them and have been carefull as to what details I put into the public arena as I feel if all my creditors turn up at once it may be overwhelming.
But also I do not want to hide for the rest of my life fearfully of an unexpected knock on the door.
That’s why I asked if a PO box was a way of communicating.
I have read that a credit check is a good way of finding out what debts are actively being sought but also know that credit check firms are in the business of selling personal information.
Does that make Sense.
Sara (Debt Camel) says
The thing is, some debts may have been sold 3 or 4 times. It’s going to be a lot of work and stress to just find out who the creditors now are!
And read https://debtcamel.co.uk/statute-barred-debt/ -some creditors may even argue a debt isn’t statute barred.
Paul says
Thank you for your reply Sara, it has given me food for thought.
Natasha says
Hi,
When I was younger I had several credit cards and loans which became unaffordable – I was never questioned and credit limits were always increased with no reason given. I had a meeting with my bank and advised that I wouldn’t afford to repay the amounts and the only suggestion they gave me was a bigger loan to consolidate debts without looking at what was affordable.
I left my job for other reasons briefly but been working ever since and last made payments in early 2007. Since then I have not made any contact or payments. I committed to never using any finance service again after being that worried about money. I budget every month religiously.
Now I am a mother, I would eventually like to get a mortgage.
I am scared that if I check my credit file the companies will start to bombard me. Is this likely? It has been 13 years.
Sara (Debt Camel) says
After all this time it isn’t very likely. If they do, well most of the debts will be “statute barred”, see https://debtcamel.co.uk/statute-barred-debt/ which explains this. And the debt collectors may find it very difficult to produce copies of the debt documents. Most of the debts will have disappeared, possibly even all of them.
I think you need to be brave and look.
Do you have a bank account?
Natasha says
Thank you for the quick reply Sara. I will definitely look into this and the link you sent.
I do have an account. Not with a mainstream bank.
Natasha says
I followed the credit check links and completed this.
Surprise at the good outcome. I have let this be a thorn in my side for a long time. Will now start to build this up even more.
Thank you for telling me to be brave. Exactly the advice I needed.
Chris says
Hi I was served a default notice with Barclays for an overdraft and a loan in October and November 2014. These are due to go statute barred this year I believe.
I made no payments to them since the defaults, and I haven’t heard anything from them at all in this time (I did however send an SAR request last year which they requested I go the branch for but I didn’t)
I have moved house a few times since then, I’m worried that they will register a CCJ against me without my knowledge as I’ve moved address – but I’m also keeping my fingers crossed that it will just disappear in October/November.
Any advice would be appreciated! Thanks.
Sara (Debt Camel) says
If you had got the SAR you would be able to see if they had sold the debts.
Have you looked at your credit records and seen if a debt collector is now reporting owning these debts?
Harold says
Hi
I had a mortgage shortfall back in 1994 and the Halifax was still chasing in 2005 I’m too afraid to case they say we owe untold thousands. We had not contact since 2005 and there is still a charge on the property.
What we do sort this problem out we could possibly 100,000
Sara (Debt Camel) says
So Halifax got a CCJ and a charge over your current house in about 2005? And you don’t know if interest is being added to the debt? How large was the debt at the time?
Mary says
Good Morning
I have an old credit card debt, CCA taken out in 2015, last payment made on account 2016. It is with Capital One and has been passed to Lowell. I have asked for the CCA which has just been produced, what it the next step i can do with this debt please. The outstanding balance is £1125.78 and i cannot afford to pay the full amount. They have said if i do not contact them i will be subject to Court Action.
Sara (Debt Camel) says
Hi Mary,
do you have other problem debts you have been not paying? or are you struggling with some debts that you are paying?
Mary Taylor says
Yes i have other debts, two are currently with the Ombudsman for irresponsible lending. I believe this debt to be the same, i was not able to repay the debts i already had and they still gave me this credit card. I just dont know what to do next.
Sara (Debt Camel) says
Then I suggest you tell the debt collector about the FOS case and offer then £1 a month until the case is resolved.
Alyssa says
Hello, I was hoping someone could help me. I had 2 outstanding debts with Wescot relating to a credit card and loan and have been told today that the accounts are no longer live with them and were withdrawn by the original creditor in early 2019. I have not received any communication from the creditor or Wescot advising of this and am now unclear as to who I owe or whether I still owe anything. Thanks
Sara (Debt Camel) says
Have you been paying Westcot?
Alyssa says
Yes I have, as I had 3 outstanding debts with them but only one is still with them according to them which clears in September- these debts have been outstanding since 2009
Sara (Debt Camel) says
what sort of debt is the third debt? Who is the original creditor?
Alyssa says
The original debt is a bank loan and was with the RBS
Tanya C says
Hi Sara – wondering if you could help
I have recently downloaded an Experian credit file which shows an ‘open’ NPower account with £900 owing for a property I moved out of in 2014. This doesn’t show on Equifax or any others I’ve used regularly over the last few years.
I’ve contacted npower and asked them what this is about, they’ve said they sent a final bill after I moved out and it has been with a DCA and now back with them. They confirmed they had a date for me moving out in April 2014.
I contacted them, they have not contacted Me. I’ve lived in two addresses since this property concerned and the last one for 24 months and I’ve had no contact whatsoever.
I’ve asked npower to removed the account, and mark it as closed as it is over 6 years old and they refuse to do this u less I pay in full they said the will reconsider. I can’t pay in full, but would pay instalments.
However, I really believe it should no longer be showing on my credit report. There’s no default, just an open account. We are hoping to get a mortgage, and this is really worrying me.
Sara (Debt Camel) says
So this debt is close to being statute barred. I am never prepared to say it is or isn’t, it needs someone to help you consider the paperwork and timeline in detail. I suggest you talk to National Debtline on 0808 808 4000 about this.
Whether the debt is statute barred or not, whether you have to pay it or not, there should have been a default added back in 2014. If that is done, the debt drops off your credit record 6 years after the default date. See https://debtcamel.co.uk/debt-default-date/ which looks at how to complain about this.
BUT If the debt is not statute barred, it can still be enforced even if it isn’t on your credit record ie you could get a CCJ. So you need to look at the statute barred issue urgently, not just see your credit record as the most important thing.
Tanya C says
Thanks Sara. That’s all really helpful.
They’ve come back to me to say they believe the markers on my file are correct and won’t remove them.
I’ve asked them to prove the debt is not statute barred and they are sending me a deadlock response in 10-14 days. I’ll escalate then if they do not agree to add a default in 2014. I’m happy to pay the debt if it’s proved I owe it, but as I’d be paying in instalments and they refuse to default the account I am concerned this will remain for 6 more years, unfairly!
Sara (Debt Camel) says
Talk to National Debtline!
Rocket says
Hi please help, I really need advice on this,
I’ve received a letter from a dept company to pay £559 for pitch licences fees and other charges money owed to a caravan site. Two of us (me and my Ex) was on the finance agreement to pay the finance, but years ago when I was still working back to 2015 to 2017 I made arrangements to pay them (half of the debt) to affordable amount and my direct debit was stopped as it was set up for my debt to be paid off.
The other person(my ex) who was on other finance agreement made some payments but stopped paying. Now, they sent a letter to my address to say that I need to arrange a payment to them and if I don’t they could add 4% interest per year to the debt. They debt was agreed (before i started paying the debt) to pay half each as my ex got restraining order from the police so we can’t contact each other for security reasons.
Now a different debt company has sent me a letter about the outstanding balance. I have no capacity to pay this as I have no work at the moment because of the covid and I’m student. Please give me an advice how to settle this.
Thank you
Sara (Debt Camel) says
I made arrangements to pay them (half of the debt) to affordable amount and my direct debit was stopped as it was set up for my debt to be paid off
did they say in writing that you only had to pay a half of the debt?
Rocket says
No, it was agreed over the phone and I’ve explained them the situations. But the new debt company sent the letter and it was named after me and my ex. I know it’s a joint agreement and I would make a minimum payment using my student loan but I’d like to get an advice. Thank you for fast response
Sara (Debt Camel) says
It is a shame you didn’t get it in writing. You can go back to the company and ask why your name is still on the debt when you paid half as per your agreement with them. But this may be difficult to prove if they haven’t kept phone records.
Rocket says
Hi Sara,
Thank you for all the advice and making this website to help people like us.
The agreement was only verbal(over the phone ) as i explained to them about the situation, but they seems like they’re not interested in that matter. I’m willing to pay the remaining balance using my student funds but wanted to get an advice regarding about this and if it’s the right thing to do. I’m just worried incase this will affect my credit scoring in the future if I plan to have a mortgage.
Sara (Debt Camel) says
is the debt currently showing on your credit record? if it is, is there a default date on it?
Rocket says
I haven’t checked my credit record and on the letter it said it needs to be paid no later than 18th of Aug.
Sara (Debt Camel) says
well you need to look at your credit records with all three credi reference agencies to know what is currently showing, See https://debtcamel.co.uk/best-way-to-check-credit-score/
Rocket says
Hi Sara
This is not showing on my credit scoring.
Sara (Debt Camel) says
in that case it will only affect your credit score if you are taken to court for a CCJ. If you make a payment arrangement that is possible but much less likely to happen.
Md. Sagor says
Hi, I would be glad if anyone can please get me the answers. I was living in UK since 2011 to Oct. 2012 in mean time I took two phone contracts one is from “Three” another is from “Vodafone”. In Nov. 2012 I moved to France, since then I never paid any of my bills. I don´t know whether I´ve got the CCJ from debt collector or not. Now in Aug. 2020 I returned to the UK but I don´t know whether do I still have the debt or not, or its became statude barred? I didn´t get any latter anything from them because I wasn´t in the UK past 8 years.
So, what can I do next. will those go off from my credit?
Thanks in advance!
Sara (Debt Camel) says
It’s hard to guess with so little information. You could try to check your old credit records by linking your old address to your new one. You could look on Registry Trust for CCJs (https://search.trustonline.org.uk/Search/Person) but you have to pay and to search by your old address. or you could cross your fingers and hope there is nothing that ever manages to catch up with you – after so long out of the country that is possible.
j s says
Just a quick question.
I had a vodafone mobile bill which I defaulted on a few years ago.
Debt was sold to Lawell Portfolio.
I changed address just over a month ago and have not gotten round to updating them with new address. Spoken to my ex who still lives at old address and she says she has definitely not told them my new address, or returned any letters as gone away/no longer at this address.
Today I have received a letter from them at new address.
I know I need to pay the debt, which I will as things have been hectic recently with going through move and breakup etc.
I am quite annoyed how they have got my new address.
Are they allowed to update my address without having spoke to them, and where would they have got it from?
Sara (Debt Camel) says
if you have updated your address with your bank, then the new address will be added to your credit record.
It’s better that a creditors knows where you live. It may be annoying to deal with their letters but it’s worse having to sort out a CCJ you ended up with because the court papers went to an old address.
Ella says
I have three accounts with one company. Last payment for each was in 2015. They no longer appear when I log into the company site. On Transunion report, they show as open but the balance is blank for each. My address and phone number are current and correct on file with the company but I have never been contacted by them or any collector. How should I find out what I owe and to who?
Sara (Debt Camel) says
Ask the company?
Kevin says
Hi
I have 5 creditors totalling £16k, default dates 2016. My parents have offered to give me around £5k to offer them a F&F settlement.
I have never contacted the creditors and haven’t paid anything towards the debt.
Should I phone them up and negotiate my ‘offer’ and follow up in writing, or just send a letter offering 30% and hope for the best?
Sara (Debt Camel) says
are you able to make any payments to the debts? If you aren’t, then an income & expenditure statement showing that you can’t may be an incentive for your creditors to accept the offered F&F.
Kevin says
Hi Sara
I’ve worked out I could pay around £50 a month, which will take years to pay back.
Have I anything to lose by contacting the creditors and how do you advise I do this – by phone or letter?
Should I also ask for the original paperwork?
Thank you
Sara (Debt Camel) says
Read https://debtcamel.co.uk/debt-options/less-common/full-final/ which looks at making F&F offers.
Jason says
Hi Sara,
I’ve recently signed up to clear score and seen on my report i have a default but i’m a bit confused by it.
It appears to be from a very account where i owe £1080.
the confusing bit is it say “opened 5th jan 2009” but also “updated 8th feb 2015”
I haven’t made any payments to Very in a decade. or spoken to anyone company about the debt in that time.
Also it seems the debt has been bought by a DCA known as Intrum in the last year or so who have sent letters but i have made no contact with.
I guess going by the last date shown, i assume this should be removed from my report feb 2021?
What would you suggest i do?
should i contact Intrum and try to pay off the debt? would this reset the 6 year period on my credit report?
Should i wait it out til feb 2021?
Thank you
Sara (Debt Camel) says
I suggest you look at your Equifax Statutory credit report. See https://www.equifax.co.uk/Products/credit/statutory-report.html.
You need to know if there is a “Default Date” listed against that debt.
jason says
Hi Sara,
Thanks for the speedy reply, so the default date is in fact November 2014.
How would you suggest i proceed?
Sara (Debt Camel) says
so it should drop off your credit record in Nov this year. This will happen whether you ignore it or pay it in full or start making monthly paymnets.
BUT if the debt is not statute barred, then Intrum can go to court and get a CCJ, which would be back on your credi record for another 6 years.
See https://debtcamel.co.uk/statute-barred-debt/ which looks at when a debt may be statute barred.
You could try to ignore it untill you get a letter from Intrum which looks like this one: https://debtcamel.co.uk/letter-before-claim-ccj/. If you get that you need to reply to it asking for all the information you can. If they cannot provide a copy of the CCA agreement when you have asked for it they should not proceed with court action.
Or you could reply to Intrum that the debt is statute barred. If you want to do this, I suggest you talk to National Debtline first on 0808 808 4000. if they deny it is statute barred, you could then ask for a copy of the CCA agreement. National Debtline can explain that too.
Roxanne says
Hi,
Apparently I owe a provident loan from 2016 for over 2 thousand pounds, it is now over 5 thousand pounds with interest. The problem is I have never had this loan. Capquest contacted me and i explained this, they emailed me the so called agreement, and told me to contact provident.. and they will put it on hold for 30 days
The agreement has no signatures, just my name typed out..it also had my old address and dated November 2016.. I had moved out of this adress in August 2016.. I never had or applied for this loan, and in fact at the time I had no income, I lived with my mother, I still do and I am her full time carer.. the thing is I’m at a lose on what to do now!! How can I prove I did not have this loan.
Sara (Debt Camel) says
I suggest you talk to Provident and explain this was not you and that you didn’t live there at the time.
Ask them what bank account the money was sent to.
Paula Swainston says
Hi Sara,
I have a debt that defaulted 24.09.14 with Sunny, it was assigned to motormile finance 29.10.14. I had an email from Lantern yesterday advising me to get in touch with them to discuss payment options, is it worth me contacting them to discuss or will the default drop off my credit report in 9 days? Would it then be statue barred as no payments have been made since July 2014. Thank you
Sara (Debt Camel) says
If the default date on your credi report os 24.09.14, it will drop off then whatever you. do.
Read https://debtcamel.co.uk/statute-barred-debt/ and talk to National Debtline on 0808 808 4000 about whether this may be statute barred.
Did you have other loans from Sunny before this one?
Katrina says
Hi, I have just had a card put through my door, from resolvecall, asking to confirm my current circumstances. I called them and they say I have an outstanding debt, apparently originally from shop direct, from 2004. It was sold on to Arrow Global and defaulted in 2007. Apparently the last payment of £2 was made in 2007. I have searched my email inbox as i remember disputing a default on credit file a few years ago, and found an email from me to shop direct to ask them to remove the erroneous default from my credit file. Now I can’t remember if I just cleared the account or there was some confusion, as I had 2 shopdirect accounts (very and littlewoods), but anyway, they removed the default from my credit file. Never heard anything else after that. Now they are saying I have this account to clear. I still have my 2 accounts live. One is clear balance, the other is in use but not behind on payments. They said this for a catalogue. I really cannot remember this and now I am wanting to dispute the debt, they told me I have to call a fraud prevention team, get a crime reference number and give it them….. after 16 years this seems excessive, and what if I did have an account and did clear it…. they wouldn’t have removed the information from my credit file if it was still an ongoing debt?
I’m unsure how to proceed, I don’t believe this is fraud, I believe the account was cleared with shop direct.
Any help greatly received
Thanks
Sara (Debt Camel) says
I suggest you reply that you had an account with Shop Direct but the balance was cleared. Ask them to produce the Consumer Credit Act agreement for the debt and a Statement of Account for the debt if they consider you still owe the money.
See https://debtcamel.co.uk/ask-cca-agreement-for-debt/ which talks more about the CCA agreement.
This is a very old debt and the may not be able to produce the CCA agreement for the debt. If they can you can then say it was cleared and if it was now, any remaining balance would be statute barred. But it can be simpler if they can’t produce the CCA agreement.
Laurence says
Hello,
I have a default of £4,500 on an MBNA credit card. The default was recorded in November 2015. I since moved away from the address that the default was registered at and I have never heard from them since.
My situation now is far better but the debt is being reported on my credit file with TransUnion and experian as ‘Unknown Status” (US) meaning that MBNA are no longer reporting to Credit Referancing agencies. I’m not sure what to make of this as this has been the case for 13 months and there has been no letters or contact from anyone regarding the debt. I would have thought that it would be pretty easy to trck me down as I have otehr credit and my details are easily obtainable as I am on the electoral roll and I have obtained credit from other providers. I’m not sure waht to do here.
My first thought is to wait and see if I am contacted as I should be easily found. However, I don’t want to risk a CCJ being issued in my absence simply as I am not at the address the default was issued to anymore. I’m also thinking that during these COVID times the process for starting action would be very slow as there is a huge backlog of cases. Is it worth waiting it out for a debt colletion agency to contact me or should I ask for information on the ALLEGED debt and who holds it?
Thanks
Sara (Debt Camel) says
Do the Experian and TransUnion records show there is a default date for this debt?
Laurence says
Yes, both show November 2015.
Sara (Debt Camel) says
You could send MBNA a Subject Access Request asking for any information they hold about you, use the form here. https://apply2.mbna.co.uk/personal/a/gforms?formId=F057&prodType=GN. Give your current and previous addresses.
Laurence says
Does that count as an aknowlegement of the debt? I Would it risk the statuate barring of the debt?
Also, as per my original question, in your opinion, based on the fact that I have active credit account, applied for credit twice in the past 12 months for credit (and have new active accounts) would mean I am easily found should MBNA or Debt collection agency wish to do so? Correct or not?
Sara (Debt Camel) says
Yes you could be easily found but that doesn’t mean they will look for you. Sorry.
I think if you go through that SAR request form, you won’t be asked for details of this debt. So I don’t see how make generic request for information can be acknowledging the debt.
Anyway this debt is a way from being statute barred. You should not be planning for that to happen as it is pretty unlikely.
Laurence says
Thanks Sara,
I don’t have the account number but would I be correct in thinking that I can just send them my Name, DOB, and previous address to identify me by?
I will get this information and plan for a full and final settlement. This seems the best course of action.
Sara (Debt Camel) says
Go through that form and see what it asked you to send.
Laurence says
Hi Sara,
I have received all the information they hold on me via a SAR. I have been through it all and there is no default letter (but there is a default registered on my credit file). There is also no complete consumer credit agreement, although there are 3 partial ones with separate addresses I have lived at. That seems very odd?!?
MBNA have also not included any copies of correspondence which I also find rather odd as I would imagine they would have sent me many letters regarding the default.
My questions here are; 1. Do they need to provide a default letter? 2. Why are there different versions of a CCA (none with signature)? 3. If there is no complete CCA would it be resonable to assume that they cannot supply a true and accurate copy?
Thanks in advance for your help.
Sara (Debt Camel) says
1. Do they need to provide a default letter?
my guess is if they have n0ot sent you a Notice of Default letter in the SAR, then they never sent one. That is not good news for you as it it makes it harder to argue the debt is ever statute barred.
2. Why are there different versions of a CCA (none with signature)?
I don’t know. But if you opened the account online, there does not have to be a “wet ink” signature
3. If there is no complete CCA would it be reasonable to assume that they cannot supply a true and accurate copy?
You could talk to National Debtline on 0808 808 4000 about what you have been sent. It may be that if you submit a formal request for a CCA they can reconstitute one from what they have.
Laurence says
Hi Sara,
RE: The Notice of default letter
What can I do here? Isn’t it part of the pre-action protocol that it is required to provide a letter of default before taking any action (should they choose to)?
MBNA have entered a default with all agencies and the default date is consistent across all (checked via Checkmyfile. Com) so this would provide some sort of evidence should the statute barred date ever be contested through court. I also have a statement evidence with a ‘charged off’ date which coincides with the default on my credit file. On the balance of probability it would make sense that should it come to it there is sufficient evidence to support a default date. Would you agree with this or not?
Sara (Debt Camel) says
“Isn’t it part of the pre-action protocol that it is required to provide a letter of default before taking any action”
No but you can ask for a copy of it.
But the point is that they send you a Notice of Default now if they want.
“MBNA have entered a default with all agencies and the default date is consistent across all (checked via Checkmyfile. Com) so this would provide some sort of evidence should the statute barred date ever be contested through court. “
A default date has NOTHING to do with whether you have been sent a Notice of Default.
This debt is not currently statute barred and couldn’t possibly be for a year. The debt may be sold on before then.
There is no evidence that they have sent you a Notice of Default, so it may not be statute barred then either.
You can either contact them now and make a payment arrangement or wait for it to be sold.
The risk in waiting is that a creditor may start courtr action and the papers may go to the old address.
There is no easy answer here.
Laurence says
Hi Sara,
I see your point, and thanks for the info. However, Mbna have my current address as it was shown they do on my details file in the SAR they sent, it seems they updated it when I made the SAR, so any new correspondence will now come to my address and I will be advised of any action, and will receive a letter before action. I can wait and the papers will come to my current address, so the risk of not receiving correspondence is no more.
Based on the above I see the best option currently would be to wait and when or if any threat of action is made make a request for the credit agreement, if a valid one can be supplied then negotiate full and final settlement. I see no other option that puts me in a better situation.
Ben says
Hi there
I’ve just received a letter from Cabot Financial saying they have bought a debt i owed from a Post Office Credit card. This would relate to a time 8+ years ago when i lost my job. There is absolutely nothing about this showing on my credit report. If there was a default registered it has long since dropped off my report – what do i do about this?
thanks in advance
Sara (Debt Camel) says
Have you checked all three credit reference agencies? See https://debtcamel.co.uk/best-way-to-check-credit-score/ for how to do this.
Ben says
I’ve checked Experian and Clearscore (Equifax) and transUnion (Credit Karma) – nothing showing
Sara (Debt Camel) says
ok, then you have two chances of challenging this debt.
First that this is statute barred because you haven’t heard anything about it for more than 6 years. You would think this would be easy, but it can get complicated, see https://debtcamel.co.uk/statute-barred-debt/. The fact it isn’t on any of your credit record will help this argement but it’s still complicated.
The other option is to ask Cabot to produce the CCA agreement for the debt. See https://debtcamel.co.uk/ask-cca-agreement-for-debt/ for why and how to do this. If cAbot can’t produce it, the debt in unenforceable in court and as it isn’t on your credit records you can simply refuse to pay.
I suggest you go for the CCA agreement first and fall back on saying the debt is statute barred if Cabot do produce the CCA. That’s a gut feel – I can’t guarantee it will be easier to do it that way round.
Ben says
thank you.
James says
Hi Sara,
Sorry about the late reply, i tried to find my old post but i could’nt been super busy, so older debts especially lowell who now own 5 if i just ignore after 6 years will they go away?
End aim is to get mortgage, but i messed my credit rating up but lowel are ruthless and if i do go back to pay i think they will reset the 6 years, well last time i spoke to them that’s what they told me happens.
Another question i use MSE Credit to check my credit rating but i am finding it hard to see what the 6 years end date is, for example i have 1 default which says Default/ended account starts 18/02/2014 account settled 23/5/15, would that mean that the default date is the 23/5/15 and will drop of my file next year.
Thanks again for your help.
Sara (Debt Camel) says
You posted on this other page: https://debtcamel.co.uk/debt-default-date/comment-page-8/#comment-387312
if i just ignore after 6 years will they go away?
the problem is they are more likely to have gone for a CCJ before that point.
If you start making payments, the default date does not change.
But I don’t know how many of your debts have a default date? Sometimes the credit reports are had to understand. I suggest you look at the statutory credit reports from each of the three CRAs, see https://debtcamel.co.uk/best-way-to-check-credit-score/ as they are often simplest to understand.
James says
Thanks Sara,
I will put together a list tonight through those 3 sites, i was wondering it you know does a closed account still affect your credit score and how long will it stay on your credit file for?
Sara (Debt Camel) says
A closed account stays on for 6 years from the settlement date during which time it does affect your credit score.
UNLESS it was defaulted, in which case it drops off earlier, 6 years after the default date.
James says
Thanks Sara, once my credit is sorted I have defaulted with some many companies Credit Cards, Mobiles phones etc unless these companies trust me again(Like my new car loan company have) I wont be able to build my credit rating back up for not being able to get credit.
One day their will be light at the end of the tunnel.
Leeanne says
In 2010/11 our house was repossessed, since then I’ve not payed anything towards the mortgage shortfall or to the loan that was secured on the house. I haven’t had any contact from them at all. My now ex husband went bankrupt about 6yrs ago before remarrying. Still I didn’t have any firm of contact from the above debts,until last week, a letter came from a company claiming they had been trying to contact me about a personal matter. I called them and it was a company acting in behalf of the secured loan. I told them I didn’t know what they were talking about. But since I’m having sleepless nights worrying. Where do I stand on these debts after all this time?
Sara (Debt Camel) says
oh dear, what a pity you too did not go bankrupt. I suggest you talk to National Debtline about these old secured debts and your whole financial position.
Jon says
Hi Sara, I recently noticed an account in areas on my Equifax report. It shows as a missed payment every month but I don’t think it has defaulted. The account is from 2014. It isn’t showing on Experian or Transunion, both of which are excellent. Am I right in assuming that this will just continue to run as it never defaulted? Should I pay this debt? I am in position to do so, but I don’t want to do anything that will jeopardise my score for longer than is necessary. It is a mobile phone account for £400.
Thank you.
Sara (Debt Camel) says
So you haven’t made a payment since 2014 to this? do you agree you owe the debt?
Jon says
I have made no payments since 2014. I do agree that I owe this debt yes.
Thank you
Sara (Debt Camel) says
Then I suggest you offer to pay but ask for a default to be added to the account in 2014 so it will drop off your credit recird.
Jessica says
Hi Sara,
I lived in a house with 3 other people in my second year of uni. We paid all of our bills to a company called Dividabill, who then paid the electricty and gas (though we had no gas appliances). Everything was fine and we paid the company, but then 3 years after we moved out my parents received a bill from nPower for £2930.00 who stated that it was unpaid, but then they also sent the letter for the period of longer than we lived there. The letter had 3 of the 4 tenant’s names spelt wrong as well, including mine.
I contacted nPower and explained that we had paid our bills to another company and that I’m not sure how they got my address as I never gave my personal details to them. They ignored my emails until a few months later when a debt collection agency sent another letter to my parents house. I contacted the lead tenant from the house who spoke to the company and explained and asked them not to harass me as I was not in charge of the accounts or payment. We got in touch with the old company we used (who had gone into liquidation but had been bought by another company) who said they would make the payment and not to worry.
A year and a half later, my parents have received a letter from another debt collection agency saying they will take us to court if this £2900 is not paid in 7 days. It’s not even possible to use £2900 worth of electricity in 12 months so we have no idea what to do and we’re lost. Can they actually do this to us?
Sara (Debt Camel) says
The adults in the property would have been ‘jointly and severally liable’ for the electric bill. See https://www.citizensadvice.org.uk/housing/renting-a-home/student-housing/students-in-private-rented-accommodation/student-housing-sharing-accommodation/.
nPower will not care that you paid the money to another firm which went bust – it’s not their problem, you owe them the money. They can unfortunately choose to chase any of you for the whole debt. The fact your names are spelt incorrectly is not going to help you.
But nPower should listen if you say they have the dates of your tenancy wrong – I hope you or one of the others has some evidence about this? Did you take meter readings when you moved in and out?
We got in touch with the old company we used (who had gone into liquidation but had been bought by another company) who said they would make the payment and not to worry.
Is this in writing?
Jay says
Good evening Sara,
I wanted your advice on a unique matter I am facing with Swift Sterling.
Swiftsterling have recently gone into liquidation and have sent me this email below
‘Dear Customer,
The Joint Liquidators of MMP Financial Limited are writing to advise you that, as part of plans to wind down the Liquidation, all debt collection activities will cease from 6 November 2020. In the event you are unable to repay your loan by 6 November 2020, we will be unable to issue any further statutory notices to you and your credit file will continue to reflect your outstanding loan as being in default.’
As of now, I currently owe Swift Sterling £500 – however this is still being negotiated as interest fees were added when they agreed to not include this due to me being made redundant. What position will this leave me in? As currently on my credit file, it shows that I owe Swift Sterling £500 but there is actually no default, as a payment plan was made that I have been sticking to.
As they have not sent me a notice of default, if I do not pay this £500 before the due date, can they still send me one? As they mention ‘debt collection activities will cease’. On my credit file it just shows that I owe £500, there is no default currently
Thanks in advance for your help.
Kind regards,
Jay
Sara (Debt Camel) says
So you are saying the amount should be lower?
Did you have other loans from SS before this defaulted one?
Jay says
Hi Sara,
Thanks for your response.
The amount should be lower. As they added interest when they shouldn’t have but i am still awaiting a response from them. I also have had no other loans from them.
Also, I do not believe the loan as defaulted as my credit file just shows that I still owe £500 but there is no information about a Default or late payment.
I just wanted to know if based on the above, if I do not pay before 6th November. Can they still default this?
Sara (Debt Camel) says
I can’t really guess what any lender will do when there is an error on a credit record. And this applies even more to administrators who may be trying to do as little as possible but may be applying simple blanker rules. Sorry.
Adel says
Hi Sara
My case is similar as P’s.
Defaulted Oct 2015 as per credit file, not sure if letter of default notice received or not. At current date, Letter of Claim received with 30 days time line to reply.
If I contact with Claimant –
1. and try to agree for tocken money will it be off my credit report Oct 2021?
Do I need to continue tocken money after Oct 2021?
Will claimant can renew the Default notice?
2. Will claimant usually agree on a tocken money for a 10k loan debt after 5 years of default date?
All together I am trying to get back in better credit report in a year time, hoping for your best advise.
Many thanks
Sara (Debt Camel) says
Your case is NOT the same as Ps because of court action.
Have you received a Letter Before Claim – see https://debtcamel.co.uk/letter-before-claim-ccj/ for what one looks like, it will have a Reply Form attached?
Or have you received a Claim from the court, see https://debtcamel.co.uk/court-claim-form/?
Who was the original lender? Who is the current debt collector? What is the exact amount owed?
What is your current financial situation? Do you have other problem debts?
Michael says
Hi Sara,
About 18 months ago I was contacted by Robinson way and subsequently Hoist finance about an outstanding credit card debt with Barclaycard (£11,200). I asked them for a copy of the agreement as suggested to do on here and heard nothing for a year, then I received a letter from Barclaycard saying that they were giving me a refund for some default fees on the account, £49.97 that they would pay directly to Hoist finance. A day later, Robinson way sent a copy of the credit agreement and said for me to contact them to agree an affordable payment agreement and, “we will hold your account for 30 days to allow me time to do this, after this time collection activity will resume.
I thought this debt had become “statute barred” some time ago, as I still have a default notice letter dated 14th June 2012 from Mercers debt collections ltd. I have had no contact with any of the debt collection agencies before requesting the credit agreement. How should I proceed with this now, the debt does appear on my credit file and showing as in default: Company: HOIST PORTFOLIO HOLDING 2 LIMITED Account Type: CREDIT CARD Started: xx/01/2011. I do not want this to go as far as CCJ nor am I in a position to make any significant payment.
Your help on this site is phenomenal and you’re advise has helped so many people.
Sara (Debt Camel) says
It sounds as though it may be statute barred. I suggest you talk to National Debtline about this and they can suggest what your options are.
ty says
hi there , i have a question, basically i had 2 phone contract will EE, in 2018 , but the thing is that i had an issue with them because someone has used my phone number to purchased game and my bill that i was paying around 30 pound a month came with 300 pound , so i called them to know what was wrong and they told me that i did purchase game online but it wasn’t me i tried to explain them the situation but they didn’t believe me so i stopped paying them because there was no to pay for something that i didn’t do after that couple of month after i start receiving letters from debt collections , i always ignored , i tried to call them to find an arrangement but i never made a payment because i didn’t have a permanent job i always or sometimes had temporary job so i would to know what will happen next because i haven’t received letter for a long time ago now like over a year 2019 no letters .
could you please help me ?
and now due to the pandemic it’s worse i can’t find a job at all as well .
Sara (Debt Camel) says
If you aren’t currently getting any letters, you could wait until the next one arrives? This only goes wrong if you have moved, so the letters are going to the old address.
I don’t know if you can still complain to EE about the size of the bill. Talk to https://www.citizensadvice.org.uk/consumer/get-more-help/if-you-need-more-help-about-a-consumer-issue/ about this. If you want to do this it’s better to do it now, not delay.
Saz says
Hello. I have been contacted about a credit card debit from around 2000 to ‘2004 . I have had not contact with them since around 2005 -2006 . Where Today nov 4th 2020 almost 16 to 20 years later I have had resolvecall come to my home asking for payment is this even enforceable please?
Sara (Debt Camel) says
probably not!
Do you know if this still appears on any of your credit reports? It shouldn’t but it’s worth checking all three, see https://debtcamel.co.uk/best-way-to-check-credit-score/
saz says
no, it doesn’t show on any credit reports
Resolvecall asked for my personal details to ‘pass security’ but said I declined to give them the info as at the time I have never heard of them before they called. so as they did not get any info they posted a note through my door asking me to call them to confirm my financial status instead and left. never had a ccj or court letter for this debt and the debt I think they are referring to was included in an IVA I had back in 2004 so it should all be resolved
Sara (Debt Camel) says
OK so I suggest you email them saying that to the best of your knowledge this debt was included in an IVA in 2004, you have had no contact about it since, so even if it wasn’t it is statute barred and unenforceable. Add by asking them to supply a copy of the CCA agreement for the credit card.
(I assume that is all correct – don’t say anything that isn’t!)
Rich says
Hi Sara, thanks for all of your advice over the years! By following your, and Martin Lewis’s advice (and a lot of help from my family), I’ve turned around what was a £30k+ financial mess into an (almost) clean bill of health. I now have a mortgage and a credit card (which is properly managed this time!)
About five years ago (I admit I was fortunate) I managed to secure F&Fs on all except one of my debts – a former Egg card, then Barclaycard – the only organisation who didn’t respond to my offer at the time. I figured this debt would be statute barred by now as it’s dropped off my credit file, but a couple of weeks ago, I received a letter from Barclaycard telling me they’ve passed (presumably sold) my outstanding balance (around 2K) to LC Asset 2, followed by frequent attempted calls from them which I have ignored. I was going to ignore their contact altogether, but I have now written back to LCA2 saying I know nothing about the debt (using National Debtline’s template letter) and asking them to prove it, so we’ll see what I get back from that, but I just wanted to ask your advice on what I should do next, assuming they do manage to provide the required evidence? I’m hoping as the account was originally an Egg credit card that Barclaycard would not be able to produce a CCA. Obviously the last thing I want to do now is pick up a CCJ after all my hard work!
Sara (Debt Camel) says
If they produce the CCA agreement you can try saying it is statute barred but if you made a F7F offer 5 years ago that is very likely to have acknowledged the debt – so it will not now be statute barred.
Do you have any money you can offer now to settle the debt? If not, then you may have to make a payment arrangement.
Rich says
Thanks for your help as always! In total honesty, I could settle the debt without taking on further debt to do it, but I’d begrudge doing that since Barclaycard did not respond to my original offer all those years ago (bad manners!)
I think if LCA2 do manage to produce proof of an Egg CCA (or a copy of my letter from five years ago), I will offer them a £1 token monthly payment (with appropriate I&E to reflect that this is all I can afford) followed by a very low F&F offer down the road in the hope they just want to get rid of me! Thanks again :-)
Andrew says
Hi, I have a similar question to a thread in here from Jay – I have two outstanding loans with MMP Financial (Swift Sterling) and they sent the same email advising they are going into administration and will cease all debt collection activities and will no longer accept payments from the 6th of November. I emailed them about wanting to set up a plan to clear the balances (between the two it is over £2k). There has been no response yet however it has been just a week. On the credit file it shows a delinquent as opposed to defaulted ( i have missed the last 5 payments). I’m not too sure what to do other then wait for them to get back to me? I’m worried they will just turn delinquent to defaulted
Andrew says
If the above helps anyone I got this reply so far
Please note that Trevor O’Sullivan, Chris Laverty and Helen Dale of Grant Thornton were appointed as Joint Administrators of MMP Financial Limited on 9 December 2019. The Administration was subsequently converted into a Creditors’ Voluntary Liquidation on 15 June 2020.
We are in receipt of your emails of 3 and 6 November 2020 in regards to your outstanding loans with Swift Sterling. We regret to inform you that the window to submit a claim for your loans with us had closed on 2 October 2020. As such, the Liquidators will not be accepting any new redress claims. We apologise for the inconvenience. We are looking into your credit reporting inquiry and will reply as soon as we are able.
Best Regards,
Customer Support Department
SwiftSterling.co.uk
Email: complaints@SwiftSterling.co.uk
To be honest I don’t really know what it means – just wait and see I guess
Emma says
Hi
I wonder if you can shine some light on a current situation I find myself in. I have today had a mortgage application rejected because of a default on my credit report.
Bit of back history, i took out a credit card in 2011, got into trouble in 2015 so it was passed on to debt company Morecroft, I made an agreement with them and continued to pay but for what ever reason I stopped paying them in March 2017, I do not remember ever receiving any letters from them chasing for this debt, 2018 I then left my husband and moved property, again never received any letters at my new property or calls about this debt.
November 2019 I received a letter from Lowells informing me of a debt that needs paying, I asked them for more information on this, they never produced anything and after reading many negative reviews about them I put them down as scammers, so I thought it had gone away, until today? When I spoke to Lowells they said it was registered as defaulted June 2015, but this has never appeared on my credit report until Lowells put default against me in 2019. Looking at my report it says Default/Ended and account settled 30.10.2015.
How can this be acceptable when nothing was put on my report in 2015? What would you advise I can do in this situation? would it make any difference if I made full payment to them?
I really look forward to hearing from you or anyone with advice on how to make this go away.
Sara (Debt Camel) says
With hindsight it is clear that you should not have ignored the Lowell letters. And that you should have checked your credit records with all three credit reference agencies well before putting in a mortgage application. But that doesn’t help you now.
So there is now a default date of 20/10/15 on your credit record. this debt will drop off your credit file 6 years after that in October 2021.
With an unpaid default on your credit record you are not likely to be able to get a mortgage, So yes, it needs to be paid. But it is still likely you may have difficulty getting a mortgage with a recently settled debt on your records – many lenders prefer defaults to have been settled a year before.
Emma says
I didn’t ignore any letters, i never received any and the one I did receive in 2019 I asked then for more information and they never produced this. What happens if I don’t pay this? will it just disappear October 2021?
Sara (Debt Camel) says
ok, but you didn’t follow up on the lowell letter and did not check your credit records before applying for a mortgage,
But as I said, that doesn’t help you now.
If you don’t pay it, the debt will disappear from your credit record next year. But as you were paying this until March 2017, the debt will not becaome statute barred until 2023. Until that point Lowell can go to court for a CCJ which would then wreck your credit record and chance of a mortgage for 6 more years.
You haven’t said how large this debt is – is it practical for you to pay this now?
Do you mind if your mortgage has to wait until after October 2021?
If the debt is so large you cannot practically pay it, one option thay may work – but is not guaranteed to – is to ask Lowell to produce the CCA agreement for the debt, see https://debtcamel.co.uk/ask-cca-agreement-for-debt/. If they can’t, the debt is unenforceable in court and so you can ignore it and it will drop off later next year with no chance of a CCJ.
But even if the CCA cannot be produced, that will not clean up your credit record now.
Emma says
Thank you Sara, It’s for £1,880 so I could pay it and would if it helped but by the sounds of things it’s going to be on my record until oct 21 if I pay it or not? I might have no choice to wait until oct 21 before applying again, would no mortgage company touch me even though (apart from this blip, which I had no recollection of until 2019) I have never missed a payment on any of my other loans/credit cards? And have no other debt at the moment?? I am to ask for cca, if this cannot be produced then the debt comes of my record in oct 21, is that correct?
Sara (Debt Camel) says
it will be on your credit record if you pay it or not.
I can’t say that NO mortgage lender would lender to you if you pay this now, but it will be harder. You could talk to a mortgage broker about this?
The debt comes off your credit record on oct 21 whatever happens: if you pay it in full, partially, start making monthly payments or pay nothing.
But the debt collector can go for a CCJ. That won’t happen if the debt is settled. Or if you ask for the CCA agreement and it can’t be produced.
Emma says
Thank you for all your help.
Karen says
Hi I have a debt with capital one and they sold it to Lowell. This is no longer on my credit file. In September Lowell threatened me with court. I set up a payment plan and paid in October, this debt then came off my credit file and I cancelled my payment plan with Lowell. I have now received a letter saying pre court request. Will they go to court and can I get a CCJ or has this debt now finished.
Sara (Debt Camel) says
Yes they can go to court for a CCJ, this debt still exists. See https://debtcamel.co.uk/debt-not-on-my-credit-file/.
One thing you can do is ask Lowell to produce the CCA agreement for this old credit card, see https://debtcamel.co.uk/ask-cca-agreement-for-debt/ for why this matters and how to do it.
But first, have you just been sent a warning letter about court? Or have you been sent a Letter before Claim (sometimes called a Letter before Action)? A Letter Before Claim has some attachments including one headed replay Form?
Karen says
Hi Sara
I don’t know I ripped it up and threw it in the bin. It was a single letter, no forms. Can I request a copy of the letter
Sara (Debt Camel) says
ok, then it was probably what I called a vague threat… Try not to throw letters away in future, just put them in a pile somewhere.
Then read that link I sent you about asking for a CCA and get on with that.
If you ever get a Letter Before Action with a reply form, you HAVE to respond to that or the next step is court. See https://debtcamel.co.uk/letter-before-claim-ccj/ .
Claire Jones says
Hi Sara, i’m after some advice. Back in 2009 i lost my home and business, my home was sold by the bank. i have carried on i still don’t have much now but whatever i have is mine. My credit score is terrible but i am living comfortably. I received an email today from a CreditKarma saying a change had been done on my credit file. upon checking there is a credit card on there with an outstanding balance of £10654. I have not had any contact with anyone since i left the property 11years ago, it now shows as a missed payment on my account, where do i stand with this? thanks
Sara (Debt Camel) says
Did you have an account with that lender? I am not sure if you are saying you had an old account but have had no contact for 11 years, or if you are saying you know nothing about the debt at all?
Claire jones says
I did have an account with them back in 2008, and then I lost everything but never declared bankruptcy but haven’t heard from anyone and still haven’t only this default on my file.
I haven’t heard or received any kind of correspondence from them until this information appeared on my credit file today.
Sara (Debt Camel) says
who is the lender?
what other debt problems do you also have if your credit score is terrible?
(It is a great shame you did not declare bankruptcy back all those years ago!)
Claire says
My credit file has been mixed with other people, it did show aCCJ but that has now been removed, is states on my credit file that I have entered a debt management plan with Nationwide for this credit card which I haven’t and worrying that this once again this isn’t me. I applied for a credit card a few weeks ago with Barclays and I was accepted so thought things where on the up. I’m stressing out to the max.
Sara (Debt Camel) says
The DMP and the previous problem with the CCJ suggests that there is some sort of mix up. I think you need to talk to Nationwide about this.
A debt you have paid nothing to since 2009 should NOT be on your credit record. And it is almost certainly “statute barred”, see https://debtcamel.co.uk/statute-barred-debt/
Danny says
Hi Sara,
there was a debt from 2014 – the debt has been sold on from Moorcroft, to Frederickson and now to Lowell Solicitors. My sim card was stolen at the time and a large bill racked up – around £650. I tried to tell T-Mobile that it was stolen and in their eyes i was liable. Either way i paid what i felt what was owed £200. The last payment i made was to Moorcroft back in July 2014. Since then there has been letters from others and i have not replied to them in writing, spoken to them or made any other payments. This week, i received a letter which i did not know who from until i googled the Return PO Box address and received a phone call from them! I instantly stopped them as i did not know who they were, what they were talking about and refused to give any of my personal information. Now, i have heard about the statute barred rule of 6 years and as i have not written to them or made a payment since July 2014, it is now over 6 years. Do i have the operturnity to send them a letter stating that i am no longer liable for this so called debt and to cease contacting me either via letter or phone? Thank you
Sara (Debt Camel) says
I suggest you talk to National Debtline on 0808 808 4000 about whether this debt is likely to be statute barred.
Sam says
In Aug 17 we were applying for a mortgage and discovered a default on my husbands credit file that we knew nothing about! It was for a HP with black horse for £4k. The default date is Sep 15, payments stopped in Mar 15. At the time payments ceased therefore assumed the debt was settled, we received no letters regarding money owing, there was no balloon payment at the end of the contract and we had no notification of the default. The first we knew was the mortgage application and his shocking credit score. So we called them straight away, offered to set up a payment and were told the debt was ‘written off’ and as it was not being chased they would not be able to set up a payment plan with us. A month or two later we contact them again to get this in writing but they said this isn’t something they would do. We had some money in 2018 after house purchase fell through so decided to write to them to offer a full and final settlement of £1500. We heard nothing in response, called them months later to confirm receipt of the letter which they did. We also noticed that the debt was now only on 1 of the 3 reference agencies?
Will it actually be statute barred now we have written with a full and final offer and called them regarding the debt or will this have started the clock again?
Should we wait it out and hope it falls off next year or are they likely to come after us?
We now have a mortgage and I am worried that come 2021 we’ll get a letter from a debt collector!
Sara (Debt Camel) says
oh dear. It is a pity you did not try to get this properly resolved back in 2015/16.
If you ever have a lender who is refusing to put something in writing, the best thing is to write to them at that time (email or secure message is fine provided you keep a copy of it) and say “I am writing to confirm our phone conversation of dd/mm/yy when you said that the balance of the debt owed has been written off by you and you will not ask for any repayment.”
Also at that point you should have asked them to set the balance owed on the credit record to zero and show the debt as partially settled. And if it was their fault they stopped taking the direct debit payment, you should have asked for the default to be removed.
But now, in late 2020, it is hard to know what to do as the debt should drop off your credit record in September and they should not sell the debt on, so all will then be fine without any action from you now.
Will it actually be statute barred now we have written with a full and final offer
It isn’t clear to me that there is a debt if it has been written off. If there is no debt, then any question of statute barring is irrelevant.
If there is a debt…
Unless you live in Scotland, a debt cannot be statute barred at the moment as you were still making payments until March 2015. But offering a F7F offer will have rest the clock unless you were VERY careful with the way it was worded. You could talk to National Debtline on 0808 808 4000 about this.
But the debt is going to drop off your credit record regardless, it will go 6 years after the default date. This has nothing to do with whether it is statute barred or not.
It seems likely you will be fine if you do nothing now. But there is some possibility they will sell the debt on and you then have to argue with HSBC that it was unfair to sell the debt as you had been told it was written off.
Sam says
Thanks Sara, if we’d been made aware by them in 2015 about the default then for sure would have sorted it out at the time. It’s very strange from the get go as we got no letters phone calls or anything at the time or since to chase this. I wonder if it’s just simply an error on their part? I wondered if it would have been worth writing to black horse to complain as they really haven’t given him the opportunity to rectify the debt and of course we still have the car and won’t ever be able to sell or scrap it at this point!
Is it worth writing to them to request they set the balance to zero now with only potentially 9m remaining before the default falls off his record?
As for the full and final offer I believe I information found on here to template the letter, but simply acknowledging the debt I suppose allows them to sell it on?
Sara (Debt Camel) says
oh, I hadn’t considered selling the car… yes I think you probably should get that sorted out.
I suggest he writes to them and says that you found out in 2016 (or whenever) that there was a default on your account. At that point you contacted them and they said the debt had been written off as they should have collected the payments and you have never heard anything about it since. But now he is thinking of selling the car and He would like them to confirm that no money is owed and that he is the owner of the vehicle.
Alin says
Hi Sara,
I have many debts for some phone contracts, 6 in total and 2 loans(GuarantorMyLoan) and Loans2Go and also my RBS overdraft of 2.5k.
I also have 1k out of 5k borrowed from my cousin. I’m paying all these since august this year but 1 week ago I decided to stop paying to all the creditors, so I had to also clear the overdraft and transfer my wages to my cousin’s account. The thing is that I need 1 month or two so I can pay thos 1k left to my cousin until I can get back on my feet and start to deal again with the creditors.
I have some deffered payments with Three and O2 and I also ceased to pay for EE, Vodafone, GuarantorMyLoan and Loans2Go. I took advantage of the Coronavirus thing and explained them that Im in a hardship financial situation. Do you think I can get those 2 months before going into debt collecting thing and once I go there how sbould I negociate with them. And the last thing, which one of these creditors usually call the collection agencies and even get me a CCJ action!? How long time I have left until I will get to the point of arresting my wages!? Thanks in advance. That should really help to be more aware of the situation Im into :)
Sara (Debt Camel) says
The GuarantorMyLoan are guarantor loans? who is your guarantor?
have you been affected financially by coronavirus?
Sandra says
Hi Sara.
I have been living abroad for almost 12 years. I don’t have a credit card and I can’t remember the last time I bought something on HP. I have received a letter from a debt collecting agency, in my name. I have no idea what the debt is. In any case, wouldn’t it be time barred now?
Sara (Debt Camel) says
is the debt very large? It’s unusual to be chased abroad for small debts.
It would be a good idea to talk to National Debtline who can be contracted from abroad: https://www.nationaldebtline.org/contact-us/?
See https://debtcamel.co.uk/statute-barred-debt/ for whether the debt may be time barred – it’s often not easy to tell.
If you find out what sort of debt it is, then it may be worth asking for a copy of the CCA agreement, see https://debtcamel.co.uk/ask-cca-agreement-for-debt/
Sandra says
Thank you. But I don’t have any loans or debts that I am aware of also I have lived abrozd for twelve years. I have onky gone to Uk for a total of aboht 7 weeks in that time ! If there is something in my name i am 99.999% sure its not mine! I wil! wait and see.
Sara (Debt Camel) says
Well that is your choice. But a debt being time barred or identity theft will not stop a CCJ unless you defend the court case. It is a lot easier to deal with this sort of stuff early, rather than in court.
Kerry says
Hi Sara
I found your site a couple of years ago , and it’s really helped me . This is my first post tho. Back in 2018 , I won a case against sunny loans for two loans that were unaffordable after looking at your unaffordable loans , they sold the loans to mfn , but after winning the case against sunny they bought the loans back of mfn . I was asked to put a repayment plan but never heard anything since they are due to fall of my credit file this summer. But i have never heard anything since 2018.
Could I ask what do you think the best course of action is ?
Thanks
Kerry
Sara (Debt Camel) says
They are currently in administration. Their website says:
On 3 October 2020, the Joint Administrators successfully completed the sale of part of ECIL’s book of outstanding customer loans to Perch Capital Limited (“Perch Capital”). Asset Collections and Investigations Limited is a debt collections agency who manage the collection of outstanding balances, in this instance, on behalf of Perch Capital.
The remaining customer loan book that was not sold to Perch Capital has been written off in full and no further payments are required to ECIL against these loans with effect from close of business on 2 October 2020.
So your debt may well have been written off. I suggest you wait and see if you are contacted.
sandra says
Hi Sara, thankyou for the information . I did contact them. I asked for information as to who the creditor was, what the debt was, how much and when! Waiting for an answer. That is what i meant when I said I would wait and see! Curious as to what I have supposed to have acquired .
Kerry says
I have received a letter from my car finance saying they have closed my account and no longer going to ask for money what does this mean do I have to pay will they take my car ??I haven’t pay the last bit on my car because I was miss sold my finance can u help me get my head a round this please
Sara (Debt Camel) says
Did you send in a complaint?
how much is owed?
Helen says
Hi
I received a letter in the post this morning to say that a debt had been passed onto NCO Europe from Arrow Global.
I was unaware of any outstanding debts with Arrow Global or any other creditor.
I phoned NCO Europe asking for information and it’s based on a debt from a phone contract in 2007. It’s now 2021 and I have had no correspondence from the phone provider or Arrow Global.
Can they legally start chasing payment now 13/14 years later. I may have had correspondence in 2007 but I honestly don’t know and have no records dating that far back
Weatherman says
Hi Helen
Even for a very old debt, creditors are allowed to contact you about it and try to get you to pay. But if it’s been more than six years since you made a payment towards the debt, or acknowledged in writing that the debt was yours, it will be statute-barred – which means that they can’t go to court (for a CCJ), and therefore can’t take enforcement action like getting bailiffs involved.
Vicky says
I’m hoping to get some general debt advice from you as I’m anxious about what to do. I’m aware that I could be slapped with CCJ’s at any time. I want to make contact with debt collectors to prevent this from happening, as I’d like to get a mortgage in the next few years, but I’m not really sure how best to approach things. I started experiencing financial difficulties in 2016, I originally went into a DMP with Payplan which is why all of the interest is frozen and the debts aren’t mounting up. I stopped paying into the DMP in 2017 and have had very minimal contact with Natwest or the other debt collectors. I’m not lucky enough to have them become statute barred and know that this will all come back to bite me through CCJ’s if I don’t act now, delaying my plans to get a mortgage. Do you think I should wait until I am next contacted by each of them and request CCA’s? I think it’s likely most will have them and be able to supply them (particularly Natwest as they’re the original creditor). I suppose that’s my next query. Should I be considering a DMP or should I just be setting up payment plans individually with each debtor? Surely, if there’s some form of payment plan in place they will be less likely to take me to court?
1. Natwest – £96 defaulted on 31.01.17
2. Natwest – £5098 defaulted on 31.01.17
3. Natwest – £3141 defaulted on 01.12.16
4. Intrum (on behalf of Tesco Credit Card) – £1530 defaulted on 29.08.17
5. Link (on behalf of Barclaycard) – £3319 defaulted on 09.09.16
6. Link (on behalf of Barclaycard) – £3944 defaulted on 09.09.16
7. PRA Group (on behalf on MBNA) – £8498 defaulted on 28.02.17.
Weatherman says
Hi Vicky
If you set up a payment plan (either with an individual creditor or through a DMP) then they are less likely to take you to court – although they still can. But from what you’ve said, they might be unwilling to agree to a new payment plan, because you stopped paying into your previous DMP.
Relying on CCA agreements in this situation is a bit risky, because as you say it’s quite possible that at least some of these creditors do have the documentation.
Depending on the rest of your circumstances, bankruptcy could be a good option for you. It will delay your plans to get a mortgage, but those would be delayed anyway if any of your creditors got a CCJ, so it might be a delay worth accepting… National Debtline can talk to you about this, and other options that might be available to you: https://www.nationaldebtline.org/
Sara (Debt Camel) says
How much could you pay a month to a DMP? Because that is a LOT of debt. Of course if you can pay £400+ a month, then the debts will start really dropping.
But could you pay that much? How long would it then take to get a mortgage deposit?
If you can’t repay a lot, then any thoughts of a mortgage seem just like a day dream at the moment. You shouldn’t let them stop you taking the right decison to get rid of your debts now. Which is why Weatherman has suggested you take full debt advice from National Debtline. do tell them about your DMP and why you stopped paying that.
Asking for CCAs isn’t going to solve this debt problem. But if you can afford to pay a fair bit back each month, then one possibility is to ask Lik and PRA for the CCAs. If some of those large debts are unenforceable it would make it easier to repay the others.
Vic says
Hi Sarah
I just wanted to provide you with an update on the above.
I have £20k saved up in a LISA for a house deposit and have £10k in my current account.
I’m aware I could afford to clear all of my debts right now but I’d rather pay them off in instalments whilst I save more money. I’m on a good salary and have a large disposable income buys It’s still taken me several years to save this amount. Originally I was saving to clear the debts but the thought of having no savings left is more anxiety inducing than being in debt is!!
So far, I have entered into separate payment plans with each creditor with a view to bringing the debts down over the next few years. I do understand that they may still give me a CCJ but I do actually have enough money to settle any CCJ’s within 30 days. Am I right in thinking that the CCJ doesn’t get logged on your file if you clear it this quickly?
I have written to two of the creditors requesting the CCA but they have denied receiving them. I have sent both recorded delivery however, they are still denying that they have received them. Have you ever experienced this?