Do you have to keep making payments to old debts?
It can be easy to get stuck in a long-term Debt Management Plan (DMP) or payment arrangements. If you are paying little each month, your debts will take a very long while to be gone.
This article looks at the questions people often ask about old debts where they have been making monthly payments to the debts.
If you haven’t been making payments, read No calls or letters about a debt for years as that is a very different situation.
Must I pay a debt that has dropped off my credit file?
A debt drops off your credit file six years after the default date. Most debts in a low payment DMP will have been defaulted (if one of yours hasn’t, read What should the default date for a debt be? because you may be able to get this changed) so after six years these literally disappear and your credit score improves.
But these debts still exist.
Even though they are old, they will never become “statute barred” (that is the legal term for a debt that is too old for a creditor to enforce) because you are making payments to them.. See When is a debt statute barred? for more details about this.
So if you don’t want hassle from the debt collector that owns the debt and possibly CCJs, bailiffs etc, then the answer is Yes, you do need to keep paying the debt – or settle it in some way.
If the debt is old, the paperwork may be missing
There is another possibility for some old debts that is worth exploring.
If the debt is a consumer credit debt – that is all types of loans, credit cards and catalogues but not including overdrafts – then the debt collector may not be able to produce correct Consumer Credit Act documentation. If they can’t, then they can’t take you to court for a CCJ and you can simply stop paying…
This is a very good chance this could happen for debts that were started before 2007. And it’s worth trying for more recent debts that have been in a payment arrangement or debt management for many years and have been sold to a debt collector.
This National Debtline factsheet explains how to ask the debt collector to send you the CCA agreement. And National Debtline are good people to talk to if you are sent something and you aren’t sure if it is correct or complete.
Am I really likely to get a CCJ for an old debt?
If you stop paying the debt, then it is much more likely the debt collector will go for a CCJ. Think of your creditor as snoozing quietly whilst your small monthly payments roll in – as soon as they stop, he is likely to wake up and rethink what to do!
Recently the number of CCJs has increased a lot – up to 320,000 in January-March 2019. Half of these CCJs were for less than £650, so don’t think your debt is too small for a debt collector to go to court!
If you carry on making the monthly payments, it is possible that you could get a CCJ. This may feel unfair – you have had a long-term arrangement with your creditor and you have kept your side of the agreement by making monthly payments – but legally the creditor can still get a CCJ.
But your debt is costing very little to administer, so the debt collector will often prefer to carry on getting small amounts of money from you each month to the hassle and expense of taking court action.
When a debt is sold to another debt collector, they may decide to look again at your situation – your credit file, your income and expenditure. In a DMP, your DMP firm will send them a new I&E every year, but in a payment arrangement, you may be asked to send one.
It’s best not to ignore a request from a debt collector for a new I&E. Although you don’t have to give them these details the new debt collector may decide you could be paying more and go for a CCJ if you won’t co-operate.
You are a bit more likely to get a CCJ if you have a house – a creditor can see from your credit file if you have a mortgage and may assume that equity has built up. The odds are that you won’t, but having a long term DMP with a house with a lot of equity can be a problem.
If I get a CCJ will the debt reappear on my credit file?
After a debt has dropped off it will never come back. But this isn’t good news because the CCJ itself will show on your credit file for six years, even if you settle it in full. (There is one an exception here – if you pay a CCJ in full within a month it will disappear.)
Is it a good idea to negotiate Full & Finals on these debts?
Definitely! Even if paying £5 a month to a debt doesn’t feel like much of a problem, it is always possible the debt collector will threaten court action and ask for more.
If a final settlement is agreed, the debt will not reappear on your credit file. A Guide to Full and Final Settlements has more information, including how to make an offer. If your debts have changed hands several times, the current creditor may have paid very little for the debt, possibly only pennies in the pound.
It’s not easy to say what you should offer – that will depend on:
- what you are paying – if the debt will be repaid in a couple more years the creditor may not be interested in a low offer;
- what you could afford to pay – it will help to get an offer accepted if you provide an Income& Expenditure sheet that shows you can’t afford to increase your monthly payments;
- if have a house with equity – this doesn’t mean a F&F will be refused, but it makes it less likely that a very low one will be agreed.
Where could you get the money for a F&F? If you already have PPI complaints underway, they could also help. But it’s now too late to start a new one. One idea that may work if you have had a lot of debts, especially high-cost debts, is making an affordability complaint.
Don’t borrow money to make a settlement offer. At the moment all the old debts will have interest frozen, don’t swap that for a new creditor charging interest.
Can you get a mortgage if you are in a DMP?
Information about charging orders
Ask for the CCA agreement for old debts
amber says
Hello Sara,
I took out a car finance and defaulted on payments when I was young they took the car away and I was led to believe the debt was settled until contacted by debt collectors Robinson way and then contacted by Hoist.
I believe the default will be removed next year but recently they contacted me to pay and if I pay now will the debt remain on for another six years?
Sara (Debt Camel) says
No – if there is a default date on the debt record it will always be deleted from your credit record after 6 years.
But you will still need to keep paying the debt even when it is not on your record- so on;t agree to an amount you can really afford.
Ms G says
Hello Sarah,
I recently posted a question here about: I was contacted by a debt collection agency I have never dealt with before. It’s for a bank loan I have defaulted on in 2010. The bank passed on the debt to debt collectors and then it seems it has been passed on to this one. I have been making token payments to the first debt collectors ever since defaulting on the loan ( as advises at the time by CAB). I have sent a Credit Agreement request to the current debt collection company. They replied to me acknowledging my request followed by a second letter theat they are investing and it will tale weeks to carry out their investigation. We are now at working day 14 and haven’t provide proper proof of the credit agreement. I ‘d to know whether I can paying them. Can they still take me to court, can they still have an impact on my credit score? Should I wait and write a follow up letter to they haven’t provided me with proof and I will stop paying? The payments I make aren’t even with them.
Sara (Debt Camel) says
You can cancel the payments if you want, but as they are only £1 a month and you haven’t suggested thus is unaffordable, why not just wait a couple of months? It is really too early to assume the CCA cannot be produced.
This debt will not reappear on your credit record. And the current creditor should not start a court case. It’s up to you if you think it’s worth the hassle of cancelling the payment now or waiting until things are clearer
Ms. G says
Thank you for the advice. If I wait, should I send them another letter that I am stopping payments as they have not provided proof of the CCA?
Sara (Debt Camel) says
“If you wait” then surely you are not stopping payments?
Fiona says
Hi I have a debt held by Link Sourcing for a credit card debt from Barclaycard . The credit card was mis-sold and I received a payment.
As it was mis-sold where do I stand with the debt with Link Sourcing ?
Sara (Debt Camel) says
Are Link Sourcing collecting on behalf of Barclaycard or have they bought the debt?
How much payment did you get from Barclaycard for mis-selling, how long ago, and did this take into account the remaining balance?
Jayne Dickinson says
Hi, I was just wondering, if I continue to pay debt (an account that is in default) that is older than 6 years old, and it falls off my credit file because of this duration, will it continue to have a negative impact on my credit score?
Sara (Debt Camel) says
No. When a debt falls off your credit record it is no longer there at all so it can’t be included in your score.
What sort of debt is this? How long until it is repaid?
Jayne says
Thank you for the reply. It’s debt from along time ago when I was younger and silly that I never paid off, went into default and now I’m in payment plans with a few different companies. Ideally this will continue to be paid and paid off in full as soon as possible but now I’ve “grown up” and my spending had completely changed, I don’t want this to impact me long term.for example, getting a mortgage before the outstanding balances are cleared.
Sara (Debt Camel) says
ok, but do think about full & final settlement offers to clear the debts away sooner, see https://debtcamel.co.uk/debt-options/less-common/full-final/. This won’t cause the debt to reappear on your credit record.
Also read https://debtcamel.co.uk/ask-cca-agreement-for-debt/ as if some of your debts were loans or credit cards and have been sold to debt collectors, the creditor may not be able to produce the right paperwork in which case you could just stop paying them.
Jayne says
Yes it’s definitely something I’m starting to look at, and thank you I will look at both of those links. Thank you!
Jennifer Vincent says
Hi I had a debt with HSBC that was sold to Metropolitan collection agency. I have a very small payment plan in place monthly which I am still paying. I moved 6 years ago but forgot to update my details with them. I just kept paying the debt automatically through the bank. Recently I thought I would like to clear the debt by making an offer but the collection company seems to have closed down and I can’t contact them. I suppose they have not been able to contact me. I guess the debt has been sold on. How do I find out who owns the debt now?
Sara (Debt Camel) says
They may have been collecting for HSBC. You could contact HSBC and ask them.
D says
Hi everyone.
I have a two year old debt that has gone to a collection agency.
I’ve made an agreement with this company to pay the debt and have noticed they have added an entry to my credit file with these details and the credit score has taken a nosedive going from 350/500 to 160!
Can they do this?
I’ve worked exceptionally hard over recent years to recover from a divorce and repay what I owe and have finally got things where they can be rectified. Being at the point where I feel able to make the final step in the recovery and buy a house within the next two years this feels like a real kick in the teeth and I’m seriously considering going nuclear and declaring bankruptcy.
I’m that annoyed by the whole process of the ‘modern’ credit system.
Given the original debt has defaulted, still appears on my credit report and shows the missed payments etc, how could this be allowed?
Thanks in advance and keep up the good work Sara!
Sara (Debt Camel) says
what credit report are you looking at that gives you a score out of 500?
D says
I used that as an example – couldn’t remember the exact figure!
The main point is that my rating is now lower than it was at the time I hit rock bottom and its lower because I’m doing the right thing and addressing the debts I have :(
Sara (Debt Camel) says
ah ok, I thought it was weird.
A debt that is being repaid by payment arrangement should damage your credit score as you are not making the agreed payments. A default can be added if you are behind by 3-6 months.
What did the original lender record this as on your credit record?
When did you stop making payments to this – was it a long while ago?
Have you looked at the credit reports with all 3 credit reference agencies, as they will not all show the same information? See https://debtcamel.co.uk/best-way-to-check-credit-score/?
Are you making payments to a lot of debts that no longer show on your credit records?
D says
Already original lender has already marked my file as defaulted.
My issue is the debt effectively appears twice (on all three reports), the debt collecting agency having started a new account.
Payments were stopped around 3 years ago and I’m now in a position (thankfully) to begin making repayments.
I’m just amazed that I can have 2 entries on my file for the same debt – and annoyed that this will impact my ability to consolidate debt and finally get myself straight.
By my (admittedly rough) reckoning it’s added nearly a year to the time I will become debt free.
This is all coming after nearly 5 years of hard work to get myself straight and just feels unfair!
Thanks for the reply btw.
Sara (Debt Camel) says
the debt collector has used the same default date as the original lender?
John Bull says
Hi
I was paying a debt that had a default applied on march 2015, I stopped making payments in June 2018 but no action was taken by the company until now where a new business is now chasing me for payment
This debt is not on my credit file anymore, can they continue to chase me?
Sara (Debt Camel) says
what sort of debt was this? Credit card, loan, overdraft, utility bill or what?
John Bull says
It was an overdraft of approx 1500
Sara (Debt Camel) says
So yes you do still legally owe the money.
The fact it has dropped off your credit record does not mean it is statute barred – that cannot happen until it has been more than 6 years since your last payment.
If it has been a loan or acredit card you would have some other ways to dispute if it is enforceable in court, but they are not relevant for an overdraft.
I suggest you make a monthly payment arrangement.
They may accept a full & final settlement offer if you are in a position to make one? See https://debtcamel.co.uk/debt-options/less-common/full-final/
Doug says
Hi,
I split up with me ex back in early 2015. The gas/electric bills were in my name only. The supply was being paid for using a key meter.
I didn’t close the account as it would have meant my ex and children possibly having no gas and or electric.
I recently had a letter from Lowell saying the debt had been sold to them.
As it was well over 6 years since I moved out, I sent a statute barred letter to them.
They are saying a payment was made in February 2016. I know categorically that I would not have made this payment, so it would have been made by my ex.
It’s my fault for not closing the account at the time, but if I can show that I wasn’t living at the address and didn’t make the payment, can I claim statute barred? Or do they need to prove that I did make the payment?
I know Lowell are now taking things to court, I have been working hard to pay off old debts and sort out my credit score in the years since our split and would not want a CCJ showing now. I am worried that they will be more aggressive in pursuing this now I have claimed statute barred status.
Many thanks
Sara (Debt Camel) says
I didn’t close the account as it would have meant my ex and children possibly having no gas and or electric.
Hardly, they would just have changed the name on the account.
I know Lowell are now taking things to court,
They have sent you a Letter Before Action?
I suggest you talk to your local Citizens Advice. You need to know what period this debt covers. And may need to go back to the energy co and tell them when you moved out. Also how come a debt has been run up on a key meter supply? It is pretty unusual.
Anon says
Hi, I had a Barcalycard credit card (opened in around 2003) which I managed well for many years with a credit limit of £2k. Between November 2016 and Feb 18 the limit increased several times up to £10,200. Also during this time I opened 3 other credit card accounts as my finances got really bad. I set up a payment plan with all creditors in September 2018 but never missed any payments and they all defaulted.
My Barclaycard debt was sold to PRA Group in Feb 21 and I have been paying them £30 a month as per the original payment plan.
I have requested the CCA agreement from PRA and they have replied to say they have requested the information from Barclaycard.
If they are unable to provide this, does that mean they cannot enforce the debt and I can stop paying?
The account is defaulted in September 2018 but shows a default notice every month since on my credit report. Would this dissapear from my record after September 2024 regardless?
Sara (Debt Camel) says
If they are unable to provide this, does that mean they cannot enforce the debt and I can stop paying?
yes.
Would this disappear from my record after September 2024 regardless?
yes. But if they can produce the CCA agreement then you will need to keep paying or they will probably go for a CCJ.
The other option here is to complain to Barclaycard that they increased your credit limit to high so it was unaffordable. See https://debtcamel.co.uk/refunds-catalogue-credit-card/. If you win that complaint your debt will be reduced – which doesn’t much matter if they can’t produce the CCA agreement, but I suggest this is worth trying for if they can.
Fiona Hearn says
Hi
I have a DMP with Step Change, now in my 6th year. I have7 debts, cc / loan / catalogue etc, only 2 of which are still showing on my credit report and one of those is due to expire at the end of this month. I have asked for the credit agreements in feb 21 and only one has produced a file but this default no longer shows on my credit file, the others have either not responded or I received a standard thanks for your request letter.
It is clear that these debts have been sold on a couple of times.
If I stop paying, would they be able to enforce any action? Morally I feel I should approach them offering a settlement.
Any advice on the steps I should take would be most welcome
Thank you
Fiona
Sara (Debt Camel) says
Can I check that you have asked the current creditor to produce the CCA agreements, not the original lender.
The debt that is still showing on your credit record that will not drop off at the end of this month – is this defaulted? or just showing as in a payment arrengement?
Anneliese says
I took out a credit card from Halifax bank in 2009. I made minimum repayments and defaulted a couple times. In 2014 I missed a payment and this ultimately led to a CCJ which was issued in 2016. Unaware of this until very recently I have never made a payment towards this CCJ. What happens next? I feel I should repay it but could it just go off record? Thanks
Sara (Debt Camel) says
This will drop off your credit record in 2022 whether you pay it or not.
Have you ever been contacted by the debt collector who got the CCJ?
How much is owed?
Do you have other problem debts at the moment?
Emma says
Hello
My mum has a CCJ which she has been making payments against for years – according to HSBC, she’s brought it down from 13K to under 3. However, the statement she has from HSBC has one outstanding balance – and the letter she just got from the collection agency has a higher figure – how can this be? How do I best challenge this? The collection agency are belligerent beyond the telling of it and despite her being now in her 70s and on a fixed income, they try and hound her every year for a higher payment.
Sara (Debt Camel) says
Does she have other debts as well? Behind with any bills?
Can I ask if she is renting or owns her house?
Emma says
Hi Sara
She did have other debts but has paid them all off. This unsecured loan was the only one that went to court, and she has a charging order on her home from the CCJ. She is in shared ownership with a housing trust and paid her part of the mortgage off with her retirement lump sum, so still pays rent on the other 50%.
Thank you.
Sara (Debt Camel) says
ok well to dispute the amount, I suggest she just writes to the collection agency and asks why this is more than on the statement from HSBC which she can attach. You could draft the letter for her.
If you think she is being asked to pay an unreasonable amount, the best thing is for her to talk to National Debtline on 0808 808 4000 and explain she would like an income and expenditure statement to show the collection agency – they will go through all her incomes and expenses and suggest what she should offer.
Anon says
Hi Sara,
I have a defaulted mobile phone account which will be 6 years on my credit file in April 2022. I’ve been making payments to a debt collector and there is about £320 balance. Im starting a job and hopefully can pay off. My question is am I better off paying the balance before April or wait until the account drops off my credit file – which option has a better impact on my credit score? Thank you
Sara (Debt Camel) says
It won’t make a difference.
The deb5 collector may well be prepared to accept a lower settlement amount. That won’t make a difference to your s ore either and the debt will still drop off 6 months after the default date.
Anon says
Hi Sara
I have 2 defaults (1 overdraft, 1 loan) that I believe defaulted in 2016/2017 respectively. I need some advice on whether it would benefit me to contact these companies and start repaying the debts now? Ideally i’d like them to drop off my credit report after 6 years but i’m nervous that if I start making repayments now, they’ll stick around on my report even longer.
Thanks
Sara (Debt Camel) says
Are they marked as defaulted with a default date on your reports?
Anon says
I used Credit Karma and they both have default dates on there, I cant see a default date on my other credit reports but it says they are in default. Thanks
Sara (Debt Camel) says
ok then they will drop off after 6 years whatever you do – pay them in full, settle them with an offer , start paying small monthly amounts or do nothing at all.
Of course if you do nothing, then the creditor may decide to go to court for a CCJ which would ruin your credit report for another 6 years. but the original debt will still disappear 6 years after the default date.
Anon says
Perfect thanks so much for the help.
Sarah says
Myself and my husband have a large amount of debt outstanding. Most debts defaulted more than 6yrs ago and we have been paying small monthly repayments. We can’t get a mortgage because of the large amount outstanding. My question is, if we were able to offer a much lower amount to settle the majority of the debts, as they defaulted more than 6years ago will settling have an adverse effect on our credit report? (Credit score is actually good currently), and make it even harder to get a mortgage?
Sara (Debt Camel) says
These defaulted debts will not reappear on your credit record after a partial settlement.
But you may be interested in this article: https://debtcamel.co.uk/settlements-old-debts-cca/
Steve Ward says
Sarah, I would strongly recommend that you follow the steps outlined in the article Sara referenced for your old debts & then stop paying them until you have a response. I did this in August 2020 & within about 3 to 4 months, all but one out of eleven accounts were deemed ‘unenforceable’ under the Consumer Credit Act. It took about another 6 to 10 months before they all stopped calling & writing to me, but it did go quiet. There’s no legal Avenue to pursue the ‘debt’ & they don’t appear on your credit file, so in terms of applying for new finance etc… I’ve never mentioned them & have not had any issues. Hope that helps, but happy to answer any other questions if you reply.
Mrs C says
Hi
My husband with his previous wife about 10 -12years ago had significant debts, one resulted in a charge on their home, a couple of CCJ’s and a few that just never bothered and vanished, when he said “I have more going out than I have coming in and you’ll need to take me to court”.
They separated 2016 and sold the marital home 2018 , the charge was cleared, other debts have been repaid, with exception of one approx £3400, there was a CCJ and the court instructed £5 a month payments. It’s long since cleared from his credit file. He ignores all the debt collections letters to review the repayment amount. “I’m paying what the court instructed, I’ve never missed a payment, there’s nothing they can do?!” his words.
Is that true? Are they able to take it back to court for another CCJ or to force him to reply to payment review letters?
Both our credit scores are excellent on experian and equifax alike. Worried he might be putting his at risk ignoring them.
He’s paying £60 a year, it’s going to take 56+ years to repay (He’ll need to live to 106 to repay in full at his current rate).
Do I ignore it and let him handle it his way, or is there any advice I can relay to him?
I want to suggest that he advise them the life expectancy in our town for a man is 74.1 years so offer them £1500, 25 x 60 but not sure if that’s viable reasoning?
Many Thanks in advance.
Sara (Debt Camel) says
A CCJ never becomes statute barred.
The creditor cannot go back to court for a second CCJ and this one will never reappear on his credit record.
But the creditor may be able to try to enforce the debt in other ways, eg with bailiffs or by looking for an attachment of earnings.
Has he had a recent request to review the payment amount? If he has, it may be a good idea for him to discuss this letter with National Debtline on 0808 808 4000.
Mrs C says
Thank you for the reply, he’s had many requests to review the payment amount over the 3 years we’ve been together, I think they write every 4-6 months asking him to complete an income and expense report and include info for his current partner/wife (me). He ignores and shreds it.
They’ve never threatened anything else, it’s the same letter that comes each time that he ignores. He’s always written to them via post to keep them updated when we’ve moved, but doesn’t give them his updated financial position or more specifically mine, as his circumstances have been the same for over 15 years with limited disposable income. They have no other means of contacting him as he won’t give them phone numbers or his email address.
I’ll chat further with him and suggest he calls national debtline. Thank you again.
Richard says
Hi Sara.
My wife and I owe nearly £100k in unsecured debt. All is defaulted and over 6 years old. These are currently being managed through a third party debt management company.
We are considering raising funds (via remortgaging) to make full and final offers, Moorgate and Cabot take up the Lions Share.
We have not looked at the CCA route yet and wonder what % reduction we should offer to start with.
Your advice is greatly appreciated
Mr S
Sara (Debt Camel) says
How much are you paying the DMP company at the moment?
Is the DMP free or do you pay interest?
Are these DMP payments affordable? could you pay more?
Do you have other debt outside the DMP?
C says
HI Sara,
We struggled with debt in the past and have been paying a small amount off each month of a HSBC credit card since 2010, the amount owed is over £10,000. We have not missed any payments and had not heard anymore from HSBC, however I have recently been sent a letter from Wescot to discuss the outstanding payment and repayment options.
Do I have to speak with them or can I just continue with the payments that I have been making each month.
I would appriciate any advice.
Thank you
Sara (Debt Camel) says
I have looked at this sort of situation in this article: https://debtcamel.co.uk/debt-collector-income-expenditure/
Here a complicating factor is inflation – are your energy bills about to jump in April? National Insurance, Council tax, food bills, all going up… you need to make sure any offers to Westcot really will be affordable, not just now but for the rest of the year.
If you have other problem debts as well, or you are struggling with bills, I suggest you talk now to National Debtline about your whole situation.
C says
Thank you, if i am not working but my partner is do they take his earnings into account.
Sara (Debt Camel) says
Do you personally have other problem debts?
Are you buying or renting?
C says
A couple of other debts, and we are in the process of buying but currently renting.
Sara (Debt Camel) says
You will find it hard and expensive to get a mortgage when you are still paying this HSBC debt. Lenders will see the payments on your vbank statements.
Have you spoken to a mortgage broker yet?
It is likely that you will need to settle this debt, possibly with a partial settlement offer (see https://debtcamel.co.uk/debt-options/less-common/full-final/) and then wait 6 months before applying for a mortgage.
Anon says
Hello,
I was very silly in my youth and got into a large amount of debt; cc/loans/overdraft. I started an IVA with my then partner 2004, which failed. I’ve had an DMP ever since – 2007, which I pay each month.
Could anyone tell me how I can end this once and for all, and finish paying them. Obviously it’s been 15 years and no longer shows on my credit score.
Sara (Debt Camel) says
How many creditors are there? Do you remember which were loans, credit cards and overdrafts? How much are you paying a month? And what is the current balance (roughly)?
Ann says
Hi Sara i wrote to PRA about a MBNA cc account i had with them , below is the reply .
Im with Stepchange and currently this debt is been paid . Were do i stand ?
Currently your account is classified as unenforceable, which means we are not able to take legal action to recover the balance. The debt is still legally owed and we will continue to contact you and report to the credit reference agencies (where appropriate). It is possible for your account to become enforceable in future, if we receive the appropriate paperwork from the original creditor – we will make you aware if this becomes the case.
Sara (Debt Camel) says
is the debt marked as defaulted on your credit record? Or does it no longer show?
Ann says
Hi
Its default many years ago .
Sara (Debt Camel) says
so it is no longer on your credit record?