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
Crys says
Hi, I have a credit card debt of around £3K that defaulted in Sept 2009, in a few days it will fall off my credit file. It was sold off to an agency a while ago and I have been paying back £1 a month for some time now, which will obviously take an eternity to clear! I didn’t know about statute barred until coming across your site and was assuming after 6 years it would be all forgotten. So what I want to know is, after it falls off my file is it worth me increasing the payments or should I just continue to pay this small amount forever? I’m not in the position to offer a reasonable F&F settlement. Also this is the only thing on my credit file that would be deemed as adversed – I’ve kept all other accounts clean and up to date so I’m really looking forward to having a good credit score again. How can or will this account ever become statute barred? Any advice welcomed. Thanks
Sara (Debt Camel) says
Hi Crys, this will never become statute barred if you are making payments. But if you stop you are risking a CCJ as this article says. You could increase your monthly payments or save up the extra and make a low F&F offer after 6 months or a year.
Adina says
Hi,
I’ve read this question and response thread, and I’m confused. I read on this site that after 6 yrs a debt falls of your credit account after six years even if it is paid in full or not. So how would it be possible for a creditor to re-file an old debt onto a credit file when it has already served it’s 6yrs time already? That would mean the same debt is serving time on your credit report twice?! Surely there’s a law against that?
Sara (Debt Camel) says
Once the debt has gone it will not reappear. But if the creditor gets a CCJ that will appear on your credit record for another 6 years. If you have been paying the debt it won’t be “statute barred” so a CCJ is a risk.
Katie says
HI
I have a few credit card debts that I made arrangements to make nominal payments of £1 per month following me losing my job. All but one have now been cleared off my credit file, but one of the companies recently contacted me for medical evidence of my health status which I provided for them. I have now received letter saying that they are prepared to help me with my current situation and for the next six months they don’t require me to make any payments, although I can continue to do so if I wish. They will then review the situation again in six months. I am wondering whether it is better for me to continue making the nominal £1 payments, or stop paying and hope that they will continue to accept no payments which will enable the debt to become statute barred? I am 60 years old and due to health issues, the chances of me finding suitable employment are not good, so I doubt if I will ever be able to afford to increase my payments.
Sara (Debt Camel) says
I can’t see much benefit from making token payments when the creditor has suggested taking a break.
If your health and other circumstances are so bad, you could consider asking them (and your other unsecured creditors as well) to write off the debt, see https://debtcamel.co.uk/debt-options/less-common/write-off/. I suggest preparing the way for this by writing them a nice letter thanking them for offering a 6 month break, saying that you are really struggling and are grateful this is one less thing to worry about.
Michelle C says
Hi I have been paying a default for over 10 years which no longer shows on my credit report so doesn’t affect my credit which is now excellent. But recently I have become unwell and at the moment I am off work sick. If I no longer pay the monthly payments due to the fact I cannot afford to and am not sure how long I’ll be unable to work can the credit company do anything to me and will it affect my credit again. Thanks
Sara (Debt Camel) says
Hi Michelle, in theory they can take you to court for a CCJ, but if you contact them and explain you are ill and not working, this is pretty unlikely. The debt will never re-appear on your credit file, however if you were to get a CCJ this would go on your credit file.
Michelle C says
Hi Sarah
Thank you I’ll call them and explain see what they say. Just have a few concerns as I don’t know how long I will be unwell and if they will be understanding.
Halima says
I got a lone from my bank and I paid 14000 pound from 25000. After paying the amount I cannot afford the repayments so I contact my bank and one year I paid £100 per month the after one year I am paying 50 pound per month – it will be finish 2040! I would like to know if I pay the rest all together then may I improve my credit score and get mortgage?
Sara (Debt Camel) says
Hi Halima, unless you settle this debt you are unlikely to be able to get a mortgage but it may still be difficult. I’ve written another article that looks at the problem of getting a mortgage if you are in debt management with an arrangement to pay your lenders, because there isn’t an easy answer: https://debtcamel.co.uk/dmp-mortgage/
joan says
A DCA bought a debt 2007/2008 I was paying a loan but requested lower payments as I was unemployed I never missed a month on the arrangement but the company sold the debt to a DCA so I paid monthly for 13 months to the DCA when I came to look at the statement from the previous creditor after requesting a SAR I realised the DCA was charging me an extra £1700 my balance was £3000 with the previous creditor The DCA was demanding £4.700.00. I wrote numerous letters to the DCA complaining and asking them to explain why they were charging me so much I put the account in dispute and stopped paying them. This was six and a half years ago. However they send me a statement of account every year still with the wrong balance . I have since moved so do not receive statements anymore. Will this debt now be statute barred as the last communication I sent to them was September 2009 requesting where they got their figures from. I have not got a CCJ by this DCA. When I last checked my credit report.
Sara (Debt Camel) says
Hi Joan, it sounds as though it may be statute barred – I always suggest phoning National Debtline if you would like to talk this through with someone. Have you checked your old address to see if there is a CCJ against you there? See https://debtcamel.co.uk/do-you-have-ccjs/ for how to do this. I suggest you keep all the paperwork you have relating to this debt in case the DCA springs back into life.
elaine says
Hi I would like to know where I stand. I had an old catalogue debt of bout £500 , I was paying it off, but have not for quite awile, and I think it over 6 years. I never heard anything for all that time, but in the past year they have been sending random letters an d it has been sold onto various people . Now they have sent a claim form and something to do with county court business centre. I have been told to ignore it but not sure what to do.
Sara (Debt Camel) says
Hi Elaine, if you have been sent a claim form you must NOT ignore it or the creditor will get a CCJ. See https://debtcamel.co.uk/court-claim-form/ which covers what your options are.
elaine says
i think i had paid nearly all if not all but i have no proof. They saying that it is £500 but i know i don’t owe that and iam certain it is over 6 years since made payment, and they are saying its from april 2000 that debt is owing. I do not know what to put on forms. I have recieved this to do with restons solicitors. thanks
Sara (Debt Camel) says
The link I gave suggests that you should talk to National Debtline if you would like some help with court forms – give them a ring, they are very good!
Stella says
Hi Sara, I have several unsecured debts with defaults registered against my name. I have only been making a £1.00 token payment for the past 4yrs. I ran into financial difficulties after a very bad divorce and not able to pay the contractual payments because I have no money to pay. I want to know what will happen after 6yrs of the debt if the debt remains unpaid. Will the creditors still take me to court and register CCJ against my name. As am a home owner, can they put a charge against my property? Please advice on what their options are and also what I need to do. Am confused, very worried and am struggling financially. I also have a secured loan on my house but am up to date with that. Thanks for your help.
Sara (Debt Camel) says
Hi Stella, Nothing has to happen at the 6 year point, things could just carry on as they are now. The debts won’t become statute barred as you are making token payments, so there is no particular reason for the creditors to decide to go to court for a CCJ just before the 6 year point as this article explains. They can’t get a charge against your house unless they do get a CCJ first.
As to what you should do, that is a more difficult problem. Carrying on with making token payments isn’t ever going to solve this problem, it will always be hanging over you and at some point a creditor may get fed up and go to court. I think you need to talk your whole financial situation through with a debt adviser – try Citizens Advice if you would like to see someone, or national Debtline if you would prefer to talk on the phone.
Carl says
Hi I came home today to a letter from a company called dlc for a debt allegedly to black horse for a finance agreement back in 2004. I have never called them to acknowledge this letter nor have I ever tried to repay it. In fact this is the first thing I have heard of this debt.
The alleged debt does not appear on my Experia credit report and I cannot recall this debt at all. I did move away for a while from the area and have recently moved in with my partner and I am now on the Electrol roll. Is this debt possibly still outstanding if it is one I have forgotten about and do I have to repay it? Bearing in mind it was from 2004 and It is not on my credit file?
Sara (Debt Camel) says
Hi Carl, I suggest you should send them a Prove It! letter – see https://debtcamel.co.uk/prove-it/. If they respond with something that makes you realise the debt probably was yours, then if you haven’t made any payments to it for more than 6 years read https://debtcamel.co.uk/statute-barred-debt/.
Debbie says
I been paying a token payment to my creditors. I have 4 of them. I have been paying them since 2010. They always mark my credit file with a default. Will these creditors ever come off my credit file??
Sara (Debt Camel) says
Hi Debbie, a debt will disappear from your credit record six years after the first default date. But that doesn’t mean the debt has gone, the creditor can still take you to court for a CCJ and then the CCJ will show on your credit file for another six years.
Blythe says
Hello Sara,
I have a CCJ that I am not paying as I am on esa due to ill health. I am worried about not paying it because I do not want the court baliffs to come, not that I own anything for them to take but I do not live on my own.
I filled in a court form that I received showing my incomings and outgoings and returned it to the court address, but I never heard back from them over a year ago.
I was just wondering what happens after the 6 years from the date of the CCJ. If I offer to pay a small monthly amount now (which I really cannot afford), and then stop the payments after it has come off my file in early 2020, can they still enforce the debt with court baliffs or could they take me back to court for another CCJ?
It is just under £10,000 and would take me years to clear, but as I already have a CCJ for this debt, I fear that it will never be statute barred.
I would appreciate any advice that you could please give me.
Thank you in advance.
Sara (Debt Camel) says
Hi Blythe, you are right that a CCJ will never become statute barred. Starting to make a payment you can’t really afford and then planning to stop in 2020 isn’t a good idea – the fact the CCJ will have dropped off your file then isn’t relevant. I think you should discuss your options with National Debtline https://www.nationaldebtline.org/.
Lewis says
I have a couple defaults which will be 6 years old in a couple months… I have been paying small amounts to prevent a CCJ, should I carry on paying after the 6years? Or will they become defaulted again?
Will my credit score improve enough for a mortgage once defaults have dropped off and will it matter if I’m still paying token payments if it stops them defaulting again..
Sara (Debt Camel) says
Your credit score will certainly improve when the defaults drop off – but these debts still matter for a mortgage applications – see https://debtcamel.co.uk/dmp-mortgage/ for details.
Michael K says
i defaulted on two phone contracts. one at £1,134 and one for £54. i have started to pay back the big debt by £80 each month since last August and currently my debt is down to £240. i was wondering as it said on my credit file it defaulted in december 2011 so i dont know when it would be wiped out. my question is should i keep paying it till it settled or wait til it get wiped
Sara (Debt Camel) says
That debt will drop off in Dec 2017.
Debts don’t get wiped out when then drop off your credit record, you can still be taken to court for the debt. I suggest continuing to pay!
Khan says
Hi Sara I am paying small amounts on my default for the last 5 years. The loan is £30000. If I stop paying for this year will the bank to put CCJ?
Sara (Debt Camel) says
Yes they might do – that is a very large loan, the bank isn’t going to forget about it. With a loan that large you really need debt advice to look at all your options.
Mark says
Hi.
I defaulted on 3 accounts when I left uni in 2004 and had no income to make monthly payments. I was, and still am, making token payments and the debts have dropped off my credit file. Recently, I’ve started receiving calls from one of the dcas. I’ve been ignoring the calls but don’t know if that’s the right thing to do. Should I answer or ignore them and keep paying my token amount?
Thanks
Mark
Sara (Debt Camel) says
If you ignore the calls, the risk is that they will decide you could be paying more and go to court for a CCJ which would be a disaster
These defaulted debts are still very real – for example they would need to be declared on a mortgage application even if they aren’t showing on your credit file – see https://debtcamel.co.uk/dmp-mortgage/ for more details.
It sounds to me as though it might be a good idea to speak to them and offer to increase payments if you can afford this. I think it would be a good idea for you to talk to StepChange http://www.stepchange.org/ for debt advice on your overall situation, not just the debts you are being contacted about.
Ben W says
Hi, great article, thank you so much for this information, it has really helped to clear things up.
I have a question – I defaulted on a debt 6 years ago, it is no longer on my credit file. I had been making re-payments to the account, but I stopped, perhaps 4 years ago – but I cannot be sure when. They contact me periodically with a statement, but have never demanded any more payments.
My question is – I am planning on moving house fairly soon. Should I inform the company about my move? If I contact them will it reset the statue of limitations? I am worried that if I move and they decide to proceed with a CCJ later down the line I won’t hear about it, but equally I don’t want to rest the statue of limitations because there is probably only a year or two left and they might have forgotten about me.
Thank you for your help,
Sara (Debt Camel) says
If they are sending your statements, the chance of them forgetting about you is pretty small.
I suppose you could word a change of address letter so that it doesn’t reset the statute of limitations date, however i would guess that this might just prompt them to start court action now.
Is there any chance of you making a settlement offer?
debbie says
Hi i have been paying an old Debt for 12 years it was unsecured Barclays loan I have no other debt, and today the company
wrote to me saying its been transferred to another company westcot, when i
rang the other company they have my wrong date of birth, so i called
the original company who said my date of birth they have for 13 years
has been incorrect, on this basis can i stop paying this debt, as my
details are wrong?
Sara (Debt Camel) says
Hi Debbie,
just having the wrong date of birth isn’t going to help you I am afraid. If you were contacted out of the blue by a debt collector about a debt you don’t recognise with your name on it, pointing out the date of birth is wrong is a good clue that they have got the wrong person – but that isn’t going to work with a debt you have been paying for 12 years!
However, it may be worth finding out whether they do have the original information about this debt… use the letter here https://www.nationaldebtline.org/EW/sampleletters/Pages/default.aspx about “information about your agreement under the Consumer Credit Act” to ask them to produce your credit agreement – if they can’t, the debt is likely to be unenforceable so you could stop paying it. If you aren’t sure what they send you is correct, discuss this with National Debtline 0808 808 4000.
Tony says
I have a debt with Barclays bank due to going into my student overdraft and not being able to pay it back at that time. It was £2000 overdrawn and they have since closed the bank account. This happened back in 2009 and the default date is 2012. Should the default date be 2009 or is 2012 OK because there was no contract term?
Additionally, they never actually contacted me with any letters or phone calls asking me to pay back the debt, which I found rather odd. I want to get a mortgage in a couple of years’ time and am wondering what the best course of action would be. The default will drop off in 2 years; unless of course they suddenly send me a letter threatening court action (I do not want a CCJ!) I am in 2 minds here, either contact them and start making monthly payments so in 2 years’ time it drops off my credit report and I do not risk being issued a CCJ, or contact them and offer a F&F. I am not sure which is best?
Sara (Debt Camel) says
Hi Tony, default dates for overdrafts are tricky as there is no set repayment period.
If you contact then and start making payments, it will drop off your record after 2 years – if you are making payments a CCJ is possible but unlikely. But when the debt has dropped off your credit record it is still a valid debt and will have to be reported by you to the lender when you make a mortgage application.
If your main aim is to get a mortgage then getting a F&F settlement on the debt is probably your best way forward.
Aimee says
I got a credit card loan of 2500 from my bank at the time, i was unemployed with 2 children yet they still gave me that amount, i paid back about 800 then stopped paying, this was about 6/7 years ago, ive recieved a county court letter yesterday, and now i am panicking, what do i do??
Sara (Debt Camel) says
Hi Aimee, I’m not clear if this is a Claim Form (see https://debtcamel.co.uk/court-claim-form/) or a court judgment (https://debtcamel.co.uk/help-ccj/), but in either case I suggest you call National Debtline on 0808 808 4000. They can help explain what your options are and how to complete any court forms.
liam says
Hi a few years ago I fell behind on a Black horse loan it went to court and I ended up with a CCJ the debt was sold to DLC. The CCJ is up in December im still making payment to them I rang to find out a Final Figure Payment and even though it will take 100 months to pay off they only offered 10%. I offered 2500 to settle but they refused. is it true they buy the debt at a low price.
Sara (Debt Camel) says
The CCJ may disappear from your files in December but it doesn’t end then. It is unusual to be able to settle a CCJ for low amount, most need to be repaid in full. What the creditor bought the Debt for is, I am afraid, irrelevant.
liam says
ah thanks. I will just keep making my monthly payments then.
Theresa says
Hi
I have five different debts that I pay a £1 nominal monthly payment to each. Do you have any idea of a minimum percentage companies will accept as a full and final settlement, or does it vary?
Kind Regards
Sara (Debt Camel) says
Hi Theresa, it’s really hard to say… This article on why F&F offers are rejected may help you work out a good point for you to start: https://debtcamel.co.uk/full-final-settlement-rejected/
Mark says
Hi,
I’ve been in a DMP for about 8 years now and I still owe a total of around £40,000 to 4 creditors. Only 1 creditor is original, the other 3 were sold on. Obviously all the defaults have dropped off my credit file but at the rate I’m going, I’ll be paying these debts forever. I sent CCA requests to each of the companies and I only received 1 reply. I have seen suggestions that I should stop paying the companies that haven’t responded to the CCA requests. This should prompt them into some kind of action and maybe even enable me to settle with them for a smaller F and F figure, if they are not able to provide the required CCA documentation that is….
Is this the right route to be going down?
Thank you.
Sara (Debt Camel) says
Are all the debts loans and credit cards? CCA documentation isn’t relevant for some debt.
It’s an aggressive approach. There really isn’t much reason for them to look very hard for this documentation at the moment, but if you stop paying them they may hunt it down and then go for a CCJ, if they find it…
Why don’t you just make a F&F offer at the moment? How much can you offer? And could you actually be paying more to the DMP than you are, or can you supply an income & expenditure sheet showing you are paying as much as you can?
orchid says
I had unsecured loans in uk. Iinitially I was paying minimum amount and then went into a debt management plan. I maintained my DMA for couple of years but due to unforseen circumstances left country without informing them. Now after six years I am going back to uk and do want to clear my debts please suggest some ways.
Sara (Debt Camel) says
You could contact your previous debt management company again? I also suggest you check on Trust Online to see if you have had any CCJs registered against you whilst you were away, see https://debtcamel.co.uk/do-you-have-ccjs/.
But for the debts where the creditors hasn’t got a CCJ, you should consider if the debts are now statute barred, see https://debtcamel.co.uk/statute-barred-debt/.
Kevin says
I’ve been making token payments for years now since I took a loan out as a teenager, wanting to clear all are finance up she contacted the credit collection agency (it’s been passed to a few over the years) my wife said we would pay £400 a month to clear it up. Meanwhile I signed up to a credit check agency the very next mouth it shows a CCJ for the said debit, I’ve received no letters in the post and made every payment only two left just seems a waste of time by trying to do the right thing it’s now on my records for 6 years is this comon practice also after I’ve paid my last payment will it automatically show satisfied?? Thanks Kev
Sara (Debt Camel) says
It’s very unusual for a creditor receiving £400 a month to go to court for a CCJ. When you make the last payment, the CCJ will be marked as satisfied.
gab says
hi,
I have 3 debts I am paying off with the same debt collection agency.recently they sent me an email stating :
”In regards to Lowell references xxxxxxxx, you should be aware that the period for recovering your balance by court action has expired, so we will not be issuing court proceedings to enforce payment. However, your debt still exists and legally we are within our rights to continue to ask you for repayment.”
(Its copy and paste with my reference number removed)
My question is- does this mean that this debt is now statue-barred?
thanks
Sara (Debt Camel) says
That does looks like wording used when a debt is statute barred. If you haven’t made any payments to these debts for over 6 years, then this is straight forward.
However it is an odd email to have received if you are currently making payments to these debts… although it is possible such debts could be statute barred it would be unusual. I suggest you should phone National Debtline 0808 808 4000 and discuss these debts with them so you can understand what is going on here.
Julie Sallis says
Hi, my husband took out a loan with HFC bank back in the early 80’s, I do not remember when he actually defaulted on it, anyway over the years we have had quite a few letters from a debt collection agency (Robinson Way) they also sent debt collectors to the house, threatening with court action and bailiffs saying they would take our car and wanting t get in our house to makes lists of what we had they would be able to sell to recoup the debt. Over the years my husband has paid off some money to them but because of different situations we have been in financially he never kept the payments up. I think the last payment must have been about 4 years ago, the details is for eight thousand four hundred and twenty five pounds.
This debt was originally bought by MKDP LLP and then Hoist portfolio Holding 2 Ltd, well suddenly two weeks ago my husband had another letter from Robinson Way saying that the loan should never have been sold to either of the above mentioned companies and themselves Robinson Way should not have been assigned the account for collection and that this meant that the account would be completely removed from their records with them, and in addition to this my husband was now eligible for a refund of any payments made since their clients or the previous owners ceased legal ownership of the debt, a refund was being processed and he should receive it 14 days frome the date of the letter, also to accept their apologies for causing any distress. I would like to add my husband did not make any response to the letter. Then what a surprise yesterday he receives another letter from Robinson Way stating “please disregard the last letter it was sent in error” they are keeping the account on file and he is not eligible for a refund (what a surprise!) In the letter they are asking to confirm if it is the right address and if it is to contact them and if it’s not to also contact them. Please can you help, how long can he be chased for this debt by this horrible company? Thank you for taking the time to read this.
Sara (Debt Camel) says
It isn’t “statute barred” if your husband last made a payment to it 4 years ago – he would have had to have not paid anything for over 6 years for this. More about statute barred debt here: https://debtcamel.co.uk/statute-barred-debt/
As the debt is so old, I think it’s worth your husband asking them to produce the Consumer Credit Act agreement for the debt. If they can’t, then the debt is “unenforceable” and he doesn’t have to pay it. the debt would still exist but basically he couldn’t be sued for it. There is more about asking for a CCA agreement here, including a template letter, https://www.nationaldebtline.org/EW/factsheets/Pages/getting-information/credit-agreement-advice.aspx .
National Debtline are good people to talk to about this, including how to understand what the creditor sends you in reply to this letter, so I suggest you call them on 0808 808 4000.
Wendy says
Hi can you help please, I have a old credit card from TSB owing £1800and have been paying only £5.00 a month under a payment plan, the bank sold it on to Cabot financial and agreed to pay the same amount, in all the time I have never missed a payment, I want to pay it off to get my credit back, I married and my credit score in my married name is really good, but credit score in my maiden name is showing this old debt and I want to known if I pay them 60% of the debt will my credit score shown that Ionly paid some of it back and if i paid the whole amount what will it shown on my credit check. I have had this old debt for nearly 20 years, i have no other debt so is it better to pay it all off or negotiate an partial amount to clear the debt off my credit score. Thanks
Sara (Debt Camel) says
That’s not just old, that’s antique! With any credit card that old it’s worth asking the creditor to produce a CCA agreement for the debt – if they can’t it is unenforceable and you could stop paying it :) Here is a template letter from National Debtline asking for this: https://www.nationaldebtline.org/S/factsheets/Pages/gettinginformationfromyourcreditors/creditagreementadvice.aspx# – there is a £1 fee. If you are unsure if what they have sent you is correct, talk to National Debtline.
You don’t say when you defaulted on the debt but it sounds as though it was a long while ago? Is there a default date on your credit record? When did you default?
Wendy says
Hi thanks for your response, it was sold to Cabot a year ago, I just want to get my credit back so if I have to pay the whole thing off to get a good credit than I will but if it won’t make any difference than I will only give them half back, sorry what is a CCA agreement and do I have to ask TSB or Cabot, and also I don’t understand what you mean about default I had this debt about 20 years ago and I agreed with the bank to have a payment plan , iv just applied to have a look on my credit under my name before I got married so I suspect it will show on that, … in just want to know what is the best way to pay this whether it make any difference if I pay all of it nor just some … cheers
Sara (Debt Camel) says
When did you first have problems paying this debt? How long have you been paying £5 a month for? (This may sound irrelevant but it isn’t! it makes a major difference to your credit file!)
Wendy says
Hi, It was 20 years ago with tsb I couldn’t afford the payments so tsb made an arrangement for me to pay 5.00 a month and its been going on since then, they automatically stopped the interest. I did apply for a loan about 4 years ago and obviously was turned down as It showed up in my credit file about this old debt, tsb only sold it a year ago,. They say if I paid the whole thing off it will take a long time to get my credit in a good state, they said also that if I paid a percentage off and they accept this as a final amount it will still show up as paid but not in full. Does this make sense. Cheers
Sara (Debt Camel) says
It makes sense – but it’s wrong! If you defaulted (couldn’t make the normal payments) on a debt then your debt should have been marked as “defaulted” between 3 and 6 months later. And after that it would have disappeared from your credit record completely 6 years later.
So from what you have said, TSB have failed to add a default date to your date. This is wrong. If you now ask them to correct this (see https://debtcamel.co.uk/debt-default-date/ for how to do this) the debt is going to vanish from your record!
That doesn’t mean the debt no longer exists, it does. But it solves your credit record problem.
Then you have to decide how to settle the debt. You could pay it in full or partially. Or you could consider not paying it at all … that is where my suggestion to ask the creditor to produce the CCA agreement comes in. If they can’t, (and after 20 years there is a reasonable chance that they can’t do this) then you can’t be sued for this debt and you could just stop paying it without any bad consequences at all.
Wendy says
Thank you so much for your quick and honest reply, I really appreciate your advice, I am waiting for Experian to update my report as I only have my married name on the credit history and I need to look at the credit history in my maiden name as this debt only shows up on my other name, then I will speak to tsb to see why this has not been removed after so long, I started the repayment plan back in 1997 which is so long ago, but I have never looked at my credit history until now, and if it can be vanished from my credit record I will make a partial payment to get it out of my life once and for all. Thank you again and I will look on the website to follow the instructions on how to get tsb to add a default date,.. no doubt I will be back if I don’t get any joy, but thank you again form your time and advice.
Neil says
Hi. I have a ccj with a finance company called money barn. It’s for £10,000. It’s been on my credit file for 4 years. But last week out the blue a company called Cabot have also added it to my credit file as a default and its knocked my score down by over 300 points. Can they punish me twice. Many thanks.
Sara (Debt Camel) says
Hi Neil,
it is normal for a CCJ and the debt it relates to both appear on your credit record. The debt should have a default date before the date of the CCJ so 6 years after this default date the debt will disappear leaving only the CCJ which stays for 6 years since it started.
It sounds as though Money Barn have sold your debt to Cabot. Is the default date before the CCJ date?
Niel says
Hi I have an old dept with next for a catalogue bill I defaulted 11 years ago and it went to a dept collection agency. It went of my credit profile a few years ago but I am still being chased of them I did start to pay £20 per month of it but it was after 8 years or so of ignoring them. I never got any court summons or anything and I am wondering if I have to pay it off or tell them to do one? The dept was around £900 and I owe them £670 now and it has been well over a year since I last made contact with them.
Sara (Debt Camel) says
If you were paying them money a few years ago, the debt can’t be statute barred so it is possible the creditor could decide to go for a CCJ. It is possible they would accept a full and final settlement offer – see https://debtcamel.co.uk/debt-options/less-common/full-final/ – that could be a good option if you have some money for it?
Alternatively as the debt is so old, you could ask the creditor to produce a copy of the CCA agreement for the debt – if they can’t the debt is probably unenforceable in court. This will cost £1 and there is a template letter you can use here: https://www.nationaldebtline.org/EW/factsheets/Pages/getting-information/credit-agreement-advice.aspx. If you use that letter and you don’t understand the reply you get, talk to National Debtline 0808 808 4000.
Karen says
Hi. I have 4 credit card defaults dating back to 2011 when my business went under so they are all due to drop off my credit file next year. I pay between £10-25 a month on all of them and had assumed that this would prevent the creditors going for a CCJ, but your article has been helpful in telling me that this is not necessarily the case. As I am a mortgage holder, do you think it would be worth remortgaging next year when my credit file improves to incorporate these debts and pay them off in one go? I really do not want to get a CCJ against my name at this point just as I’m about to get a clean credit file again. I only have 7 years to go on my existing mortgage so it would mean increasing the mortgage term.
Sara (Debt Camel) says
I think the chance of you being able to remortgage is very small. Although the debts will have dropped off your credit record, they still exist and a mortgage lender would not like them – see https://debtcamel.co.uk/dmp-mortgage/ for details.
But although it is possible a creditor will go for a CCJ it isn’t likely. Although you must be feeling very uncomfortable, the chances are there won’t be a CCJ. And if there is, well it isn’t the end of the world, you just make a monthly offer to repay the CCJ.
Have you thought about other ways to improve your situation?
Do you have a spare room you could rent out? You may not want to do this, but you are in complete control of who you choose for a lodger. And you could look for a “Monday to Friday” lodger possibly which would be less intrusive? Just a year of this could make a real impact on your debt, it doesn’t have to be for many years.
Have you looked at reclaiming PPI? Read https://debtcamel.co.uk/ppi-out-of-debt/ even if you think you never had PPI!
Allan says
I have been really reckless with my finances the last decade. I have defaulted on nearly every credit agreement that I’ve ever had. This was mostly due to my lifestyle choices and partners I had at the time. Everything was left to future me. I am now looking to improve my credit rating which shows 5 defaults. I receive letters regularly from companies that have bought the debt and I am wondering if every time I receive a letter does it reset the 5 year clock that I have? Or is it only if I pay anything toward the debt?
I’m not that bothered about paying what I owe, just want it gone from my credit rating so I can start a fresh and be able to get car finance and a contract mobile.
Sara (Debt Camel) says
You may not be bothered about repaying your debts, but if one of your creditors takes you to court for a CCJ then that will wreck your credit record for another 6 years.
You may find the following article useful: https://debtcamel.co.uk/debt-not-on-my-credit-file/
kay says
Hi,
My property was repossed in 2007 and sold . It was sold for less than i owe which left a 30,000 debt to me. I pay them £30 a month to pay this debt off. I am concerned as i am due to buy a new property that they will put a charge against the new property even though this will have no equity in really yet. I have never been given a ccj for this debt.
Sara (Debt Camel) says
You are likely to find it difficult to get a mortgage with this large debt outstanding even though it doesn’t show on your credit file. See https://debtcamel.co.uk/dmp-mortgage/. Could you make a full and final settlement offer to it?
tracey says
Hi, if the bad debts fall off your file and your score improves, can lenders ever see that information or dig deeper?
Sara (Debt Camel) says
A lender can’t see information about old debts that have dropped off UNLESS it was one of their debts, in which case they may be able to see it on their own internal records.
Andrew says
Hi, i have a whopping 60k debt from an old mortgage which was caused by redundancy. For the past 4 years ive been unable to pay the debt so in two years time will i be in a position to get a mortgage?
Sara (Debt Camel) says
It is a pity you didn’t go bankrupt 4 years ago, then in 2 years time with no debts and a clean credit file you would be in a position to get a mortgage.
But as it is you have two big problems. First the mortgage lender (or anyone they have sold the debt to) may get a CCJ in the next two years. Second, debts arising from mortgages do not become statute barred at 6 years. See https://debtcamel.co.uk/statute-barred-debt/ for details.
mark says
Hi.. I have paid a default account in full. It was actually overpaid as the monthly payment would put the account £6 in credit.The account now says £5 owing? Is this because the lender does not want to list as satisfied therefore still having a negative effect on my credit score. Its annoying as it says i still owe money when i dont!!
Sara (Debt Camel) says
This sounds more like an error to me. I suggest you contact the lender and ask them to correct it.
MsS says
I had a CCJ issued on 11 October 2010 because my ex husband defaulted on payments to our mortgage despite our divorce settlement saying he had to pay. I did not know about the CCJ until a couple of year ago when I was credited checked for renting a flat. I immediately started negotiating with the bank to work out a settlement. They refused every lump sum offer and in between each offer weeks and sometimes months would go by before they contact me (usually it was me contacting them to find out what was happening). My last offer was refused despite being a lump sum paying exactly what my ex will eventually pay spread out over a 5 year plan. That was over 4 months ago and I have not heard from the bank since then. I have no assets except a very old car and my mother is lending me the money so that I can start trying to build credit instead of having it on my file for the next few years. The CCJ will expire on 9 days and I am wondering if it is worth putting in a higher offer or just waiting to see what happens. The worry from this issue has caused me a few health and work problems but I don’t want my mom to pay out a few thousand pounds if she doesn’t have to. I have tried quite a bit to get an agreement in place but the bank has been not only reluctant to find a solution but actually have not bothered really engaging / pursuing the matter. I read somewhere that the bank can apply for the CCJ to be reinstated but that although this is possible, courts are reluctant to reinstate as 6 years should be enough time to come to an agreement. My queries are: 1) after the CCJ expires, can anyone see that I still owe the debt by going through my credit rating, 2) how likely is the bank to go for another CCJ and 3) how likely is the court to issue a new CCJ given that I have been trying to find a solution and it is the bank’s own poor engagement that has allowed the 6 years to lapse? Any advice would be greatly appreciated.
Sara (Debt Camel) says
A CCJ never expires. It does however become harder for a creditor to try to “enforce” a CCJ, by bailiffs or an attachment of earnings after 6 years.
To answer your questions
1) the CCJ will drop off your credit record (not “expire”) after 6 years and no-one will be able to see it EXCEPT the lender who will have their internal records
2) & 3) it is not possible to get a second CCJ. If you want to discuss whether the creditor is likely to take any further action to enforce the existing CCJ in your case, you can discuss the details National Debtline on 0808 808 4000.
paul says
Hi, sara .
i have a debt that didnt go to court just sold to link resources , they phones me and said they would take the offer of £5.00 amonth that i offered credit card company, ive been paying every month and each year they ring up ask if any changes then continue yet again for a further 12 month agreement , this time they phone they asked me to fill in forms expenditure to update thier records . i am asking is this law that you have to fill in forms when i havent defaulted on my £5 a month ,,,,, do i have to fill them in ,
also i ramg them to clarify and lady answered saying i dont have to fill in forms but asked to set up the £5 amonth again i said yes , but today i still recieved a letter asking me to fill in expenditure again this has been going on 7 yrs , thankyou
Sara (Debt Camel) says
You don’t have to fill in the forms, but they could decide to go to court for a CCJ if you don’t.
Julie says
Hi
I have been paying a ccj to lloyds for around 2 years by standing order, at £20 per month, I have recieved letters telling me the debt has been sold on to a credit agency giving me their new bank details and even a new reference to change my standing order in order to pay the money direct to them,
My questions are:
Is it legal to sell on a ccj
Can the credit agency ask for more money
I am very dubious about the whole thing now
Thank you
Sara (Debt Camel) says
Yes a debt which has a CCJ can be sold. The new creditor can ask you for an Income & Expendiure sheet and ask for more money, but if you don’t co-operate they would have to go back to court to try to get Ethel amount increased.
Mrs Touray says
Hi, I have been paying a debt for about ten years or more which I had a CCJ for-I am now not in a position to pay the amount set in my CCJ and want to reduce it, can I do this without a attachment of earnings being sent to my employers as the 6 years passed a long time ago?
Sara (Debt Camel) says
If you make the court ordered payments, a creditor can’t apply for an attachment of earnings. You can apply to the court for your payments to be reduced using a N244 form – National Debtline 0808 808 4000 can talk you through how to do this and whether this is a good option for you or whether there is anything else you should consider.
Mrs Touray says
I’m a bit confused as I thought the CCJ expires after 6 years even if the debt hasn’t been satisfied? Will my creditor be able to go straight to my employers with an attachment of earnings or will they have to apply to the courts again if the CCJ has expired? I intend to continue paying but at a reduced amount and didn’t want the expense and hassle of completing a N244 form. I was hoping to be able to write to them with a statement of means and my reduced offer of repayment?
Sara (Debt Camel) says
A CCJ never expires. I suggest you talk to National Debtline about your situation and your best options.
Mrs Touray says
Thank you, what a brilliant website, I will definately recommend it!
Darren Hale says
Hi
Amazing site lots of great help thank you.
I have a question though – I am currently repaying a CC debt which doesn’t show on my “Clearscore” credit file, if I make a F&F settlement will this then appear on my file as “Partial payment satisfied” or will it not appear at all? I believe the debt is at least 5 years old and has been “ticking along” with monthly repayments.
Many Thanks
Sara (Debt Camel) says
If a debt doesn’t appear on a credit record this is EITHER because that creditor doesnt report to that credit reference agency OR because it was defaulted more than 6 years ago.
You need to look at the other CRAs to see if this debt appears there as Clear Score only looks at your Equifax file, see https://debtcamel.co.uk/best-way-to-check-credit-score/.
If the debt was defaulted more than 6 years ago and doesn’t show anywhere, a partial settlement will not cause it to reappear – it is gone for good. If it shows on another CRA then a partial settlement will show there until the debt drops off 6 years from the default date.
paul says
hi i currently have a few debt that defaulted over 6 years ago.
i’m due for an insurance claim payout that could wipe most of them out in full however is it best to ask for a settlement as the default day has passed?
i have baby No2 on the way so if say i could gey away with reducing the final payments it would help to save towards the new arrival.
would a agreed reduced settlement still damage my credit report if it does is it best to just pay them off as planned?
regards
Sara (Debt Camel) says
If the debts have dropped off your credit records, or will do so soon, then a reduced settlement will not change this, see https://debtcamel.co.uk/ff-credit-record/.
Paul Stephenson says
Thank you for your very speedy response Sara
so basically as they have passed the 6 year default mark a reduced settlement won’t show up?
regards
Sara (Debt Camel) says
Correct :)
Gary says
Bit of advice please. We have been paying many debts off via a debt management plan over the last 9 years – still a lot to go! We have successfully cleared a few of these with reduced offers. We did make a 30% offer to Halifax £2115 but they wanted £4536 which we could not afford. When I added up what we have paid back over the years and what we still owe this came to a staggering £12000 which seems ridiculously high for a credit limit on a card. Who in their right mind would have offered such a credit limit to a customer that was clearly in financial difficulty? As a result I requested a copy of the signed agreement and statements. I have since been notified that the debt has just been sold on to Idem Servicing. Strange they would do this when I had offered over £2000 and they sell it for probably £600 ! Anyway I contacted Halifax asking where the requested documents where and they told me they do not have to keep them if over 6 years old. Great so if I am disputing the amount owed how can I progress this if they do not have any documentary evidence?
Still scratching my head over why they would lose money by selling this debt on, but hey ho.
Any advice on where to go next with this please.
Sara (Debt Camel) says
To check I am reading this right, have you asked for the Consumer Credit Act agreement and Halifax has said it can’t produce it?
Gary says
Yes they told me they do not have to keep them longer than 6 years.
Sara (Debt Camel) says
OK, I suggest you talk to National Debtline (0808 808 4000) about this unusual reply by Halifax and whether it is impossible for Idem (or anyone else) to enforce this debt in court. See https://www.nationaldebtline.org/EW/factsheets/Pages/getting-information/credit-agreement-advice.aspx#.
If ND think the debt can’t be enforced, you can reasonably decide to stop paying it.
Gary says
Thanks I’ll give ND a call and update you with any outcomes
Manu says
Hello Sara,
Hope you are doing good!
I had credit card from HSBC and owed 4000£ at the time of leaving UK in 2014. Even after moving out of UK I was making monthly payments till July-2016. But due to financial difficulties now am unable to make any payments at the moment. It will take sometime before I can even think making some payment. For sure am not gonna return back to UK in the near future. What are the possible options for me to get out of this?
Thanks,
Manu
Sara (Debt Camel) says
You say you were making payments until July 16 – were they the monthly minimum payments or a lower arrangement to pay? How long ago did you open the credit card?
Manu says
Yes they were the monthly minimum payments and not on any repayment plan. The card was opened in September 2013.
Sara (Debt Camel) says
Well your options are to either contact HSBC and explain the situation, supply an income & expenditure details and say you hope to be able to resume payments when your situation improves OR to ignore the debt and hope they never trace you abroad and you don’t need to return to the UK. Your credit record is likely to be wrecked for a bit over 6 years. Of course you could ignore it for a while and then get back in touch when you can make some payments.
I can’t guess at what the chances are of you not being contacted about the debt – at the moment there isn’t a lot of cross-border debt collection but the world is getting smaller and better connected so who knows what may happen in a few years.
Brian says
I had a credit card debt that is over six years old I have had no contact with the company until last week when a debt collection company contact me l am unemployed and on a low income do I still have to pay it
Sara (Debt Camel) says
Hi Brian, if you haven’t made any payments to it for over 6 years, it may be statute barred – read up about this here: https://debtcamel.co.uk/statute-barred-debt/ and talk to National Debtline about this.
You could also try asking the creditor to produce the CCA agreement for the debt if it looks as though it isn’t statute barred, see https://debtcamel.co.uk/ask-cca-agreement-for-debt/
James says
Hi, great site, only just discovered it.
I am making token payments of £20 per Month each to 4 companies against debts totalling between £3.5K to £11K.
I have been making these payments since losing my job in late 2012 and taking a lower paid job since then (£1 was increased to £20 after about a year.) Despite making these payments the accounts have been registering a default each Month against my credit file (presumably as it is way below the original agreed payments)
My question is, will the default disappear off of my file after 6 years from the first Default or remain on there forever as they are registering a default each Month?
Thanks,
James
Sara (Debt Camel) says
Once a default is added, another one will be added every month, even if you went back to making the “original” debt payements.
The defaulted debts will disappear from your file 6 years after the first default date :)
However, the debts are still legal and they will never become statute barred (see https://debtcamel.co.uk/statute-barred-debt/). If you stop paying, a creditor can get a CCJ which would then wreck your credit record for another 6 years, as the article above says. Also the debts will make it impossible for you to get a mortgage or remortgage.
julian mason says
I owe just under £500 on a £1000 loan which i repay evry 2 weeks at £27. However the credit union i am paying went into administration and shut all parts of the business but the administrators want me to keep paying, do i have to?
Sara (Debt Camel) says
yes – this doesn’t change your liability to repay the debt.
John says
Hi Sara
I am living abroad the last 22 years + and have some old CCJ’s 22 yrs old +. One a bank loan of £1000. And a high street store but I did hear some debt collectors visited my old address in the late 90’s. I never made any payments as I was abroad . Am I still liable for these old debts if I move back to the UK?. Will they have been removed from credit agency reports?. Are they statue barred after this length of time? Would I have problem getting credit if I move back to the UK?
Thanks
Sara (Debt Camel) says
A debt where there has been a CCJ will never become statute barred. But after 6 years the creditor has to go back to court to get permission to enforce the loan. After 22 years I think you should be pretty safe!
Any defaulted debt or CCJ will have disappeared from your credit reports. For credit, it’s best to avoid any banks you previously owed debts to, as there may be a trace on their internal systems still.
Jo says
I have a credit company who have just started chasing me for an old bank overdraft, which is just over a thousand pound, the debt was from 2000 and the bank closed the old account the year after in 2001. The credit company have said that a few companies have been chasing me for years. I was at one address for almost 11 years so I’m not sure if they are Lieing as I have neve had any letters or phone calls regarding this old debt until now. The credit company confirmed places I had lived previously and where I first opened the bank account, which are true. If I had known about this all those years ago I would of paid it. Because it was 17 years ago am I still liable for the debt and do I have to pay it back. It seems really silly that I have to after all these years, surely the debt is barred by now ? I have requested all the paperwork from the credit company as I would like to know all the details of what they are saying. If I refuse to pay it where do I stand ?
Sara (Debt Camel) says
This post on statute barred debt looks at this sort of situation: https://debtcamel.co.uk/statute-barred-debt/.
Jo says
Hi Sara.
Can the company take me to court ove this or send the balifts round to my address .
Sara (Debt Camel) says
First I am assuming the company hasn’t already gone to court and got a CCJ. If it has, the rules are rather different. But it is unlikely or they would have mentioned it!
They can’t send bailiffs round until they have gone to court and got a CCJ. If they go to court, “statute barred” is a very good defence, and you should win the case! The important thing is not to ignore any letters about court or court papers. National Debtline 0808 808 4000 can explain what you should do now and they should be your first phone call if you get sent court papers.
maureen taylor says
Hi, I have been paying a credit card debt for over 9 years ,I offered to pay £50 per month which was accepted and I have not missed a payment even though I have been living off a pension for 8 yrs.. I got into difficulties following my divorce. The credit card company at the time increased the payments to the point I could no longer manage the payments which had a knock on effect on other credit which I have since paid off. My debt has been passed to Moorecrofts, I contacted them requesting a copy of the original credit agreement.as I was disputing the amount owed. they put the debt on hold while they looked into it. yesterday I received a number of papers each showing the payments I have made but only going back five years. They have not provided me with the original credit agreement. The original debt according to them was for £7840 and still owe £2136.69. I have contacted them again explained that they have not sent me the original credit agreement nor all the details of payments made.I don ‘t have a CCJ .as through fear I offered to pay without getting advice if the amount was correct
Sara (Debt Camel) says
Hi Maureen,
if the creditor cannot produce a Consumer Credit Act agreement for the debt, then they can’t enforce the debt in court, so you could stop paying. This may seem scary – I suggest you talk to national Debtline 0808 808 4000 and they can talk about your options here.
maureen taylor says
Thank you for your reply, I will take your advice and contact the national Debtline.
Elaine says
Hi
I’ve been paying a ccj faithfully for more than 10 years (£40 a month) and have never missed a payment. The debt is a bank of scotland unsecured loan i had to default on. the standing order is paid through a bank of scotland account. why after all these years do i now get a letter today saying they are passing my debt to a dca. can they do this? there’s £5,800 still due on the debt.
Sara (Debt Camel) says
Yes they can sell it – it doesn’t really matter why they have chosen to do this. Just carry on with your normal payments if they are affordable, if not talk to a debt adviser about your options.
Elaine says
The dca have added £300 on to this debt that i have not defaulted on from an old ccj dated back to sept 2004. I phoned the bank to ask why they have passed it on and never got a reasonable answer as they agreed i have never defaulted/never had a late payment. I am still waiting on someone to call me back with a plan of action as they said they were going to advise the debt company (moorcrofts) that i had never defaulted and the added “fees” should no be applied. I got another letter from moorcrofts stating i now need to cancel my dd with the bank and make a new one with them?? The bank also stated that the original £40 a month payment would not be amended to a higher amount. will this be the case? i just carry on making the £40 a month payments to moorcroft till it ends?
Elaine says
My worry being that if i stop the dd with the bank – then the original ccj that i have religiously kept will then be broken. Then that will open the window for moorcrofts to start asking for ridiculous amounts that i cant really afford?. i have kept my end of everything and am now worrying on what moorcrofts can now actually enforce?
Sara (Debt Camel) says
No you don’t need to worry about this. Moorcrofts will probably be very happy to pocket £40 a month from you. As this is really worrying you, talking to National Debtline would be a good idea I think.
Sara (Debt Camel) says
If they wanted to increase the monthly payments they would have to go back to court – after all this time that is unlikely but could happen. If it does, contact National Debtline 0808 808 4000 and discuss your options with them.
If you are in a position to offer a full & final setlement to the debt, you may find that Moorcrofts are more likely to accept it than the original creditor was. As you are paying c £500 a year, they wouldn’t take a low offer.
Elaine says
Any idea on how much they would ask for on a f&f on a debt of £5,300. and thank you for all your prompt reply’s to me.
Sara (Debt Camel) says
Hard to say. 3k possibly, I’m guessing. It can help if the offer is coming from someone else – a friend or relative. And if you can show then an Income & expenditure statement that shows you can only afford £40 a month.
Elaine gordon says
I owe a credit card from 2013 but now just realized my birthday is down for 19th not 20th im scared has i am ill health and not at work
Sara (Debt Camel) says
Hi Elaine, having your birthday out by a day isn’t likely to matter. If you are worried about this (and possibly other?) debt, I suggest you talk to National Debtline 0808 808 4000 or go to your local Citizens Advice if you would prefer to talk face to face.
Elaine gordon says
Thank you another one my middle name is on credit card not first name but i have given my adress to them and am awaiting for letter but i not sleeping and having hot sweats i i just want it sorted but this prob why they havent got in touch but i phoned them
Think the card was took out in 2008 or 2009 just wish they would write has i could offer payment and get some sleepi am with step change but has my name wrong onthis and date birth by one day im frightened to phone them
Elaine gordon says
See was married gor 37 years and this is when all this going on my husband turned alololic and abused me well he left in 2009 so its about the time of all this and iwas left with all mess so ive had a few wrough years
Rory Marshall says
Hi Elaine,
I work for StepChange Debt Charity noticed that you mentioned you’ve spoken to us before.
I’m sorry to hear about the difficulties you’ve had, I can’t begin to imagine how much stress this has put you under, and it sounds like it’s left you in a really difficult situation.
If you need to speak to us, please email or call us, we’re here to help you in any situation and we’ll be able to talk through anything you’re worried about.
You can either email us directly at moneyaware@stepchange.org or visit our website https://www.stepchange.org/Contactus.aspx to find out how to get in touch by phone.
Kind regards,
Rory
Paul says
After a number of years of Ill health & burying my head in the sand I have been making progress clearing up my financial mess. After what I thought was my last debt paid I checked my credit file & discovered that I have had a CCJ issued over 5 1/2 years ago. ?
Going through some old paperwork it looks like it was from an old credit card which had been sold on. I haven’t heard anything from them in all this time, but feel a bit stuck as im worried if I start speaking to anyone I might rock the boat and I don’t have the money to pay them in the foreseeable future.
Sara (Debt Camel) says
The CCJ will disappear from your credit record after 6 years.
It will never become statute barred, but after 6 years if the creditor wants to try to enforce it, eg by sending in bailiffs, they would have to get permission from the court. If you hear from them after 6 years and they threaten this, contact National debtline 0808 808 4000.
If you have no money to pay them anything, there isn’t much point in contacting them now.
Lauren says
I’ve been in a debt plan since 2009 and have never missed a payment. Most of my debts have come off my credit report apart from 2. My old debt company didn’t pay 2 of my creditors for months and I have 2 defaults on my credit score one that says up to date but a default of 2014 and another that says constant default with no date. Can they do this if the original debt is from 2009?
Sara (Debt Camel) says
It sounds as though you need to ask the creditors to add a default date back in 2009/2010. See https://debtcamel.co.uk/debt-default-date/.
That’s a very long DMP. When do you expect it to end? Could you afford to settle any of the debts with full & final offers?
Russ says
I’ve got a CCJ on my file dated Feb 2012 although the issue first arose well before then. It hasn’t been touched, no payments made & no communication from the owners of the debt.
I’ve been advised to leave it be – if I do leave it alone, would it actually drop from my record in Feb 2018?
Sara (Debt Camel) says
Yes it will. Who advised you to leave it be? CCJs never become statute barred, but the creditor has to go back to court to enforce one (bailiffs, attachment of earnings, charging order) after 6 years.
Russ says
Okay brilliant, thanks!
Was a family member who had something similar, but over 20 years ago.
Not sure whether to wait for it to drop off as it’s been over 5 years now, so will have 11 months left or make contact with them as it’s on my credit report
Sara (Debt Camel) says
One thing you could consider is saving up money you could use to repay the CC in a seperate account. Then if the creditor contacts you in the next eyar, you have some already saved up. If you are contacted after the 6 year point, talk to national Debtline 0808 808 4000 about your options.
Elissa says
My partner has a CCJ from when she was a student. Long story short, she felt she was being ripped off by her landlord and with held 1 month rent. He took her to court, but as she had moved never received the correspondence and the court issued a CCJ as she hadn’t didn’t counter argue.
It’s been 6 years now and foolishly she buried her head in the sand and it got pushed to the back and has not been paid. She received advice that if she ignored it, after 6 years it goes away.
I have since met her and informed her that even though it drops off the file it still exists as is my understanding.
I would like us to eventually buy a house and don’t want to have any debts to our name (we both have no other debts to speak off) so I have said I still want to pay off the CCJ even though it is over the 6 years. My question is, if we pay off the creditor what is owed will she ever have an improved credit rating as it has been so long?
Thanks.
Sara (Debt Camel) says
After 6 years this should no longer be on her credit record – is it still there?
Elissa says
I’m unsure. We need to double check just a but dubious about keep checking our credit report.
If it isn’t, what would be the best course of action? I don’t want my partner to have an unpaid ccj to her name forever as I assume her credit score will never improve. So would you advise paying the debt even though the ccj has dropped off her credit file?
Thanks
Sara (Debt Camel) says
Checking a credit record does not harm it and is not visible to anyone. If it isn’t on her credit record it won’t harm her credit score. I suggest you check it now!
After 6 years a CCJ can only be enforced if the creditor asks permission from the court – you could talk to National Debtline 0808 808 4000 if you are concerned about this.
Gemma says
Hi Sara
If I was paying off a debt and then stopped and have had no contact in six years does the debt then become statute barred? I had an old catalogue account which ended up with a DCA but my last contact with them was in 2011 (although they have tried to contact me by telephone since then which I have not responded to). I am not worried about my credit file as such as this debt has long since disappeared but it would be good to stop the calls if it is in fact statute barred now.
Many Thanks
Sara (Debt Camel) says
Hi Gemma, this article look at Statute Barred debt in more detail: https://debtcamel.co.uk/statute-barred-debt/.
You could also ask the debt collector to produce the CCA agreement for the debt, see https://debtcamel.co.uk/ask-cca-agreement-for-debt/
Sarah says
Hi i have 3 catalogues accounts on my credit file that i havent paid towards for around 4 years (up until then i was making monthly payments to them). I have a few questions, if i were to pay them all off in the next two years 1) would my credit rating improve 2) would i be able to get credit from these or other catalogues again?
If i dont pay them and they drop off in my account in two years time i assume from your previous replies to other people i would be at a high risk of getting a ccj after the 6 years mark? would my credit rating improve assuming i dont get a ccj? Also if i then decided to pay even £1 a month to all catalogues would that stop a ccj giving i stick to the arrangement or pay more regardless of how long it takes?
I checked my credit rating last night and am pretty shocked as to how bad it is. Id love to get it improved.
Sara (Debt Camel) says
Hi Sarah, I think yiou might find this recent artiucle useful: https://debtcamel.co.uk/defaulted-account-credit-score/
Elaine gordon says
Debt over 10 years old with lloyds but now with collection whats best thing to do carry on paying 1pound a month
Sara (Debt Camel) says
Read this and see if a default date should be added that was more than 6 years ago: https://debtcamel.co.uk/debt-default-date/. That would make it disappear from your record!
BUT you also need to settle it before a mortgage application. Could you offer a full & final settlement? https://debtcamel.co.uk/debt-options/less-common/full-final/
John says
I’ve currently got a default with Vodafone for £1,700 which includes extra charges from when a refused to pay as I was moving to another country to live.
This is due to be off my credit file in sept 2017.
I’ve just received a pre legal assesment letter thresting a CCJ.
I was hoping not to pay this, but I just want advice if its best to pay this when so close to it being of my credit record or maybe offer a smaller amount to pay off the debt.
Sara (Debt Camel) says
Well you haven’t suggested any grounds for disputing it. As the creditor knows where you are, I think you either need to offer a full and final settlement or pay it off in full.
RussG says
I have an old debt that defaulted in January 2011 (so over 6 years ago) and haven’t heard anything for years as the company went into liquidation.
I’ve recently been presented with a county court claim with a hearing date along with all the original paper works etc. A family member who has something similar said that as the default is over 6 years old, then the debt is ‘statue barred’ and not enforceable.
They was communication with them, via writing in January 2011 and they have produced half a word document which I’ve never seen before and has no record of my name on it – there is no acknowledgement of the debt whatsoever.
I am able to counter claim with the above information and if I do so, should I go on the basis of statue barred?
So my question being – are they in a position of power over this matter and do I have to attend the court hearing?
Sara (Debt Camel) says
Hi RussG,
first a bit of technical jargon, because it’s good to get this right when you are talking to people about Money Claims. A counterclaim would be if you said the person suing you actually owed you £x,000 for some reason. “Being statute barred” is a defence to a claim, not a counterclaim.
I am puzzled you think there is a hearing date – are you sure you are reading this correctly? Normally no hearing date is set until you have entered a defence – have you?
I can’t tell from what you have written if the debt is statute barred. I suggest you contact National Debtline on 0808 808 4000 and they can talk through if the debt is statute barred, whether there are any other reasons you may have to defend the claim and how you should respond. Do this asap as the timescales are tight.
If you are defending a case there may need to be a hearing but this can be transferred to your local County Court.
RussG says
Hi Sara,
It’s a 52 page document so too a while to digest!
So – the claimant (debt company) are chasing for this debt from 2007. This defaulted in Jan 2011 and no communication has been made with them since then, nor has there been any payments to them.
Based on the dates, am I right in saying this is ‘statute barred’ and therefore they cant enforce anything from now?
I have to respond to the courts within a certain time frame and if I respond along the lines of:
“I do not admit liability for this debt, and I do not intend to make any further payments to it for the following reasons:
– The earliest point at which you could have sued for the full balance owing to this debt was more than six years ago
– No payment has been made to this debt by me, any joint account-holder, or any third party acting as my agent for a period of more than six years
– No written admission of liability for this debt has been made by me, or any third party acting as my agent for a period of more than six years
This debt is therefore statute barred and any court claim to recover it will be defended on this basis. ”
Would you advise this is correct?
Sara (Debt Camel) says
“This debt is therefore statute barred and any court claim to recover it will be defended on this basis.” You can’t put that in as your defence! I am advising you to talk to National Debtline not pull some useful sounding sentences from the internet.