Mr N has asked: On checking my credit score I have two defaults on my account both with the same creditor. First default was on 11/11 and the second 08/13 for a total of £1,750. I am now able to get back on track and get a loan to pay this in full. If I write to the debt collector and say I can pay this off and they give me their guarantee to put fully settled on my credit record, is this the … [Read more...]
Articles about old debts
People have two types of questions about old debts.
do you have to pay a debt because it's very old? Your situation will be very different depending on when you last paid anything to the debt. This isn't something you want to get wrong! In some circumstances you could be taken to court for a CCJ if you just stop paying a debt ... but equally you don't want to be pressured by a debt collector into paying a debt which isn't legally enforceable.
should an old debt be appearing on your credit record? You need to know how debts should be shown and also how to challenge it if there is an error.
The articles here will help you work out what applies to your particular case.
A reader asked if it is right that he has to pay a debt that he can't see on his credit record? Many people think that checking their credit record is a good way to get a complete list of their debts. And they look forward to a defaulted debt disappearing from their credit record because then they don't owe the money any more. Unfortunately neither of these myths is true! What debts show on a … [Read more...]
If its been four or five years since you stopped making payments to a debt and you haven't been making any payments, you may be wondering if your debt has got lost or the debt collector has forgotten about it. This article looks at what is likely to happen. If you have been making payments, even very small ones, to an old debt this article isn't relevant for you - instead read Should I keep … [Read more...]
People often ask if they have to carry on making payments to an old debt. This can happen as it's too easy to get stuck in a long-term Debt Management Plan (DMP), paying little each month so the debts will take forever to repay. This article looks at questions about debts in long-term debt management. Do I have to pay a debt that has dropped off my credit file? A debt drops off your … [Read more...]
If you have an old debt, you may wonder if you still have to pay it - can your creditors really take you to court after this long? The law only gives a creditor a limited amount of time during which action can be taken against you. The legal term for a debt that is so old that it can't be enforced in court is "statute barred". This article answers the most common questions people have about … [Read more...]
If you have had problems making debt repayments, you may have had a "default" added to your credit record. The date this is added is important, because the debt will then be deleted from your credit record six years later, at which point your credit score will improve! If you have old defaults, with dates in 2011, they will be dropping off your records in 2017. So what is "the right default … [Read more...]
If you get a letter saying you owe money on a debt you don’t recognise, or which you thought you had paid off, you need to challenge the creditor to prove that you do owe the money. First think about whether you might owe this money? If your name is James Lewis they may have got the wrong person; if your name is Edith Chicken that’s less likely. If it seems to be a debt to Orange and you have … [Read more...]