Natwest Credit Card issue

[George Washing]

Hi all,

Am trying to get some advice re my wifes natwest credit card taken out by in 1996. c£5500 owing.

Got into difficulty in 2008 and entered a DMP with CCCS.
Have a default showing on equifax, call credit and experien for summer 2010 (along with others all at the same time)

We were paying off through CCCS (step change) £21 a month but stopped all that when I found this forum!

Submitted CCA request in October 2012 and after battles with signature, I eventually got paperwork in June 2013!

My solicitor has looked at is and said its a reconstitution not the original but seems compliant. Cant say if its what she signed as only she knows and cant remember!

Moorcroft are chasing for the money. Will arrange a nice low full and final when I have some money as want to get a good credit record once defaults drop off in 2016 - want to buy a house etc.

My current thoughts are that I should go back to paying a small amount monthly to stop them from trying to pursue through the courts as they have an agreement that may stand up and I am strapped for cash at present.

NB we are not planning to go SB.

QUESTIONS
1. Am I damaging her credit file by paying it?
2. If all the record of the debt disappears when the default drops off in 2016, by paying it, am I extending the time it will feature on the credit file?
3. What other ways are there to keep them at bay until I have enough money to do full and final when I have a bit of cash in 2014?

Thanks George.

[SXGuy]

Re: Natwest Credit Card issue

Hold fire 1 second. Before relying on your solicitor, please send the agreement to Niddy at agreements@all-about-debt.co.uk

Don't cover any info, leave everything intact.

Was "seems" compliant isn't always the case, they may have sent the wrong terms and conditions, only Niddy would know this.

Don't arrange any payments until hes seen what you were sent.

[Never-In-Doubt]

Re: Natwest Credit Card issue

NB we are not planning to go SB.

Why not?

Why are you so eager to pay them in 2014?

[SXGuy]

Re: Natwest Credit Card issue

Just been informed Paul was the one who overlooked the CCA, so it no doubt is EN

[George Washing]

Re: Natwest Credit Card issue

Thanks for coming back to me.

Why do I want to pay off in 2014?....
Keen to pay off enforceable debts as want a good credit rating asap to get mortgage etc. I think the soonest I can get this is 2016 as my our defaults were in 2010. Am guessing that with the enforceable debts, without paying something I run the risk of them taking me to court which I could do without, so am setting up monthly payments to keep them at bay. The issue is that this puts an "8" default marker each month. Guessing I want to have stopped making these payments before 2016, so that the "8' markers dont carry on post 2016. With the enforceable debts the only way I can think to do this is to settle the debts.

The advice I am now looking for is what my strategy should be to recover my credit rating, as Paul is sorting me out re enforceable and non enforceable.

Am guessing if i settle in 2014, then by 2016 the entry will disappear and I will be clean?

On that note what is the incentive to pay off a debt once it has fallen off your record - i guess only the threat of court action? hardly an incentive on UE debts.

[SXGuy]

Re: Natwest Credit Card issue

I think you misunderstand. whatever you decide to pay after your default marker, will stay for a further 6 years. Your default may drop off, but the markers will stay for 6 years until its paid off. That means, 6 years from the last payment made.

if you agree and full and final, thats a partial settlement, that will stay for 6 years. You wont be getting anything with those markers.

If you settle one now. 30/09/13 it aint coming off until 2019!

[George Washing]

Re: Natwest Credit Card issue

Thanks for the info. So do I understand this correctly....

1. If I pay off full and final (negotiated down) in 2013, my default from 2010 will fall off in 2016 but negative data will remain until 2019.
1a) Does having "negative data" damage my rating as much as a default? How do I find out the impact?
2. If I pay off the total amount I owe (i know that is blasphemy on this site) in 2013, any idea when I will have a good rating? 2019 or sooner.

I think I only have about 12k owing, so if paying off the full 12k rather than 6k full and final makes a material difference to my ability to get a mortgage, then it might be worth it?

Any idea who to speak to to get further info on this kind of stuff?

[SA Gold]

Re: Natwest Credit Card issue

Thanks for the info. So do I understand this correctly....

1. If I pay off full and final (negotiated down) in 2013, my default from 2010 will fall off in 2016 but negative data will remain until 2019.

Data from the 2010 account will drop off in 2016.

1a) Does having "negative data" damage my rating as much as a default? How do I find out the impact?

Any late payment markers will effect your ability to get credit although a default will almost certainly prevent you full stop (at least initially)

2. If I pay off the total amount I owe (i know that is blasphemy on this site) in 2013, any idea when I will have a good rating? 2019 or sooner.

I think I only have about 12k owing, so if paying off the full 12k rather than 6k full and final makes a material difference to my ability to get a mortgage, then it might be worth it?

The data held about you is held for six years, regardless if its good or bad, paid or not.

Any idea who to speak to to get further info on this kind of stuff?

Yes, take a look around the forum and most of the information is already there. You may want to take a look at this thread which covers rebuilding your credit rating.

Hope this helps

SA

[George Washing]

Re: Natwest Credit Card issue

Thanks very much for your help SA Gold and SX.

Sorry to bang on about this - i am very confused.

So to clarify:

1. Looking at the small print on my experian and equifax credit files, one would think that the defaulted account disappears from the file 6 years after the original default date regardless of whether or not one makes payments. "A defaulted account is removed from your report after six years whether or not you have paid the debt in full. If you have paid some of the debt off, the balance should show how much you still owe. " How has it disappeared if it still shows how much you owe?

2. The comments made by the the SX guy suggest that each payment resets this six year clock, by SA gold suggests this data will come off 6 years after the first default.

3. If I stop paying anything to these firms, does:

A Everything drop off 6 years from the original default date? (this is what equifax and experian info suggests)

B. Everything drop off 6 years after the last payment made? As suggested above.

4. If I do a full and final this will be a "settlement" and therefore that will then reset the clock for another 6 years right? "Settled accounts are kept on file for six years from the settlement date. The status history in respect of a settled account relates to the period of time prior to the date of settlement. "



5. My total debts are about £12k. two are EU as not yet complied and other seems Enforcable according to Paul the solicitor so am paying that one a small amount to stay out of court.
I really want to be able to get a mortgage in future. If I had 12k should I .....

5a) pay off in the total amount owed? Am guessing no point as the 8 markers from the months running up to the settlement will stay on file for a further 6 years!

5b) opt for a reduced settlement and save money? Am guessing the 8 markers above will last for 6 years, but it will also show partially satisfed not settled which may impact me for 6 years? but so what? screwed anyway right with those "8" markers?

5c) pay nothing and wait until it falls off my credit file? but the only way to do this seems to be sb? If i pay anything (like on a dmp) it resets the clock so i will have "8" markers on my file..... forever and ever....(would it ever stop)?

6) so the quickest way to a clear credit file is to pay nothing and go SB, even though I might be happy to pay it off?

7) presumably if they have not complied with my CCA from autumn 2012 then they can not record adverse date in the interim period? but they have. So if i settle now I could say to the firms remove all the adverse data for the period when they were in breach, then my last 8 marker would be Oct 2012. so by 2018 I would be clear?

8) aside from the forum is there anywhere I can get conclusive advice about this from a specialist? Like an equivalent of Paul but in the credit rating world?

Thanks!

[Luca]

Re: Natwest Credit Card issue

I think you are confused.
Once a default is placed on your credit file it will disappear in 6 years come what may but that does not mean the debt disappears or becomes statute barred. Even if you settle it in full it will still show on your file (but show settled) until 6 years from the default date.

If there is no payment or written acknowledgement of the debt in 6 years (5 in Scotland) then it becomes statute barred. Any payment or acknowledgement resets that 6 year clock ticking. The date the clock initially starts varies slightly as it is 6 years from the cause of action which I think is the date the payment under the agreement becomes due.

[Never-In-Doubt]

Re: Natwest Credit Card issue

Just been informed Paul was the one who overlooked the CCA, so it no doubt is EN

When was this?

[SXGuy]

Re: Natwest Credit Card issue

no idea mate, had a PM from George saying Paul had looked it over previously

[George Washing]

Re: Natwest Credit Card issue

Paul looked at my partners natwest agreement last month.

[George Washing]

Re: Natwest Credit Card issue

Thanks very much to everyone for their help. Dont suppose anyone has the time/inclination to answer each of my questions above to try to help me through my confusion. This seems such a minefield. I think I get the fact that SB required 6 years with no contact, also get that a default date is different to a montly "default" or 8 marker. My confusion is what is the best strategy to end up with the best record, hence my questions above.

"I think you are confused.
Once a default is placed on your credit file it will disappear in 6 years come what may but that does not mean the debt disappears or becomes statute barred. Even if you settle it in full it will still show on your file (but show settled) until 6 years from the default date."

Thanks - I think i understand this, but my follow on questions is that the credit file suggests that a settled account then stays on for 6 years from settlement date and the negative "8" markers in the run up to this will also stay for 6 years. Therefore by settling before the default falls off my record, am I extending the time that negative markers will show? Am I better off waiting until the debt falls off my record and then settling F&F then hopefully there will be no record on my file?

[SA Gold]

Re: Natwest Credit Card issue

Hi George,

If i understand correctly, your questions/concerns are based around your credit file.

The data held on your credit file lasts six years. If your prime concern is further lending/mortgage you will need to wait until this is clean. Main stream credit (cards, loans etc) will want three clear years from defaults and CCJ's. Mortgages being six.
i.e a default from 2010 means don't bother applying for a mortgage until 2016.

As for settling: most people only settle enforceable agreements when action is being taken through the courts.

To ensure your file is not tarnished further, you need to keep the wolves from the door which is essentially what AAD helps us do; its a fountain of knowledge. I've answered loads of my own questions by reading others diaries and threads, although the option is always there to post if you have one.

Its also a good idea to get back on the credit ladder in preparation for your mortgage. I posted a link earlier which i would suggest you take a look at.

Does this help?

Cheers
SA