Aged Debts- when do they cease being an issue?

[m4rc]

Hi, I have read so much stuff in the last month and although I have learnt loads I am still a bit confused.

My partner has a big pile of relatively small debts - JD Williams Jacamo and all that lot plus Mext and maybe a couple of others. They vary from £100 ish to £1200, I doubt there is more than £8k in total over maybe 10/12 accounts.

these mostly date back to 2006-8, she defaulted and then set up a debt management plan with Kensignton Finance which to be honest she could never really afford but they pushed and pushed and she just did as they told her.

Its important to note at this point that she really doesn't talk about this stuff, it causes her a lot of emotional stress and she just ignores it. She hasn't paid Kensignton for I reckon 2 years, although they ring and write to her almost daily. I doubt she has had direct contact with any of the creditors for 6 years now.

I decided to sort this stuff out, I had no credit history as such and have started to get some manageable credit as we want to get a mortgage in 2017. I have got a few small credit cards and a couple of mail order accounts, all paying more than the minimum amounts and my credit score is slowly increasing. My partner has had several letters lately saying they will accept reduced payments in settlement of accounts. I open her post as she can't face it - she works full time as a nurse and we have 2 disabled children so our lives are pretty stressful as it is.

So I was getting ready to start making payments for full and final settlements, I told her we would need to write to them as I couldn't call, and it was important they didn't connect me to the accounts. Reading up more on full and final stuff I started seeing people say once the default notice has been issued the 6 year countdown begins. Even if you pay via a debt management plan the countdown isn't reset. I was sure it was, I was always under the impression that the 6 years was from he last communication you have with them - phone call, letter or payment. This surprised me a bit, I gave it a lot of thought as full and final settlements would not look positive on her credit file, so if they are as bad as a default we may as well just ignore them and pay nothing, saving the money towards our house deposit. Especially if there's a chance her credit file would not show any of these records after 6 years from the first default.

Also Kensington I guess want their money and won't go away, she won't talk to them, how can we get rid of them? Hey seem to be as much of an issue as the bloomin credit companies now!

So I have several questions in there I guess and after seeing how amazingly helpful everyone on here is I thought I would ask for some advice.

I will start another topic to ask some questions about getting some better credit for myself as mine is mostly sub-prime and I could do with building up a better credit file in preparation for a mortgage.

thanks for reading

[Never-In-Doubt]

Re: Aged Debts- when do they cease being an issue?

Hiya & welcome to AAD

Statute Barred starts from last acknowledgement or payment so the DMP does count as it's direct acknowledgement of the debt's existence. You'd be better trying the UE route - nothing to lose...

read here --> http://forums.all-about-debt.co.uk/f...dit-Agreements

[m4rc]

Re: Aged Debts- when do they cease being an issue?

Thank you, I have it a bit wrong then. That's a lot to read, I was really hoping it might be simpler!

I guess the important thing is no matter what we do with the debts - pay in full, F&F settlement or ignore them until 6 years has lapsed - the credit file will not be cleared it will show the defaults. Therefore we may as well let them chase and keep ignoring, they have been passed through so many different collection companies I doubt any will do more than shout and growl a bit. If any did get nasty I would be willing and able to offer a F&F but only to stop anything dramatic and I seriously doubt it would happen.

I'm not an expert like you guys on here but I have been through bankruptcy with a business and my personal life - back when you stayed bankrupt for 3 years and they came and took all your stuff away - no have managed my fair share of debts, but I simply moved and didn't tell anyone, by the time my credit files connected the dots 6 years had long gone so I simply had no credit rather than a pile of debts.

As the last payments through Kensignton were recently I guess they will stay on the credit file for a long time yet. I will take time to read all about UE but can you answer a quick question - if I could prove hey were UE that wouldn't make a difference to the credit file would it? We would still have to wait for the 6 years to lapse?

[MrsD]

Re: Aged Debts- when do they cease being an issue?

yup it's a lawful default, ie the T&Cs were not adhered to, so it's there for 5 years in Scotland and 6 years in the rest of the UK. and it's a bit of a mug's game to try to argue unless you have a really great argument which is really very very rare.

[Never-In-Doubt]

Re: Aged Debts- when do they cease being an issue?

Thank you, I have it a bit wrong then. That's a lot to read, I was really hoping it might be simpler! - It *could* be simple - who knows?

I guess the important thing is no matter what we do with the debts - pay in full, F&F settlement or ignore them until 6 years has lapsed - the credit file will not be cleared it will show the defaults.- No the defaults last 6 years so if no payments have been made for a while they should all be defaulted - you can only be defaulted once so that's likely to be a couple of years in now anyway....

Therefore we may as well let them chase and keep ignoring, they have been passed through so many different collection companies I doubt any will do more than shout and growl a bit. If any did get nasty I would be willing and able to offer a F&F but only to stop anything dramatic and I seriously doubt it would happen. - Are you homeowners?

I'm not an expert like you guys on here but I have been through bankruptcy with a business and my personal life - back when you stayed bankrupt for 3 years and they came and took all your stuff away - no have managed my fair share of debts, but I simply moved and didn't tell anyone, by the time my credit files connected the dots 6 years had long gone so I simply had no credit rather than a pile of debts. - Well done, seen it work a few times but lately with gas, electric, water board, dvla etc all using CRA's it's not as easy anymore....

As the last payments through Kensignton were recently I guess they will stay on the credit file for a long time yet. - Depends if the original creditor added the default or whether they added an AP (arrangement to pay) marker in which there might be no defaults and only AP's which mean a possible 6+ years of defaults.

Read this for default info --> http://forums.all-about-debt.co.uk/s...87-s88-CCA1974

I will take time to read all about UE but can you answer a quick question - if I could prove hey were UE that wouldn't make a difference to the credit file would it? We would still have to wait for the 6 years to lapse? - see above

See replies in red next to your questions above.....

[m4rc]

Re: Aged Debts- when do they cease being an issue?

To be honest I didn't think we would have a chance arguing the legitimacy of the debt, what I wasn't sure is if I paid it off would it make a difference to just ignoring it. I have read a lot saying that the debt will go from the credit file 6 years from the date of default, Experian say it will, but others say that the clock starts ticking from the last time a payment was made. I was happy to pay but going to push really hard to negotiate a low F&F settlement, but then I was told it wouldn't make a difference on the credit file it would still look bad so I may as well just let them sit there until 6 years was up and save the money.

Now I'm just very confused though I believe the people who run a forum dedicated to this stuff over people generally discussing debts on Money Saving Expert. The bit that has me wondering is Experian - any reason they would be saying the debt is removed 6 years after the default and not 6 years after the last payment?

I hope one nobody thinks I'm being rude or questioning your knowledge, I really want to clarify this stuff and am looking for the definitive answer.

[m4rc]

Re: Aged Debts- when do they cease being an issue?

Posted at same time Never-In-Doubt, thanks for your comprehensive reply.

no we are not homeowners, but want to be, hence my pushing to get this stuff sorted out.

I know for a fact that default notices were received, I believed that meant there was now a default, is that correct? The accounts were then all wrapped up by Kensington to, so I always assumed there were pretty old defaults on the files. As long as I'm correct even if they then marked the accounts with AP they would still have defaulted wouldn't they?

Talking to my partner just now she keeps saying 'at least a year' since last payments to Kensignton, I am going to get her full credit report so we have a better idea but ai would hope it's at least a year, worst case that means we have 5 years left if it's from date of last payment. Oh well, lots of time to save a nice deposit I guess!

[Never-In-Doubt]

Re: Aged Debts- when do they cease being an issue?

Go search for me (never-in-doubt) and our site team in mse - we left there to create AAD as MSE promotes abuse. We won't stand for it. We ARE the best at this stuff. Fact.

[Never-In-Doubt]

Re: Aged Debts- when do they cease being an issue?

The default does last 6 years from default date. Nothing to do with last payment.

Your last payment only affects the default in so far if you don't miss a payment they can't default you. If you miss payments they can. You're way confused. You're asking the wrong questions.

Start again. What is it you want to do? Forget statute barred. That's years away. Defaults last 6 years. You must be sefsted within 3-6 months of missing a payment. Read the link I posted above.

Regards AP - no. An AP means an arrangement so may not be defaulted. There's a case here with someone paying a DMP for 7 years (so 7 years of AP's) - which leave a 6yr trailing history and meant they were visible for 13 years in total. We always say get defaulted early to get a clean clean credit file quicker.

[Never-In-Doubt]

Re: Aged Debts- when do they cease being an issue?

A default notice under s.87/88 is nothing to do with a CRA default. Read the link I posted above.

Get her credit file then we'll know facts won't we - makes sense.

[Never-In-Doubt]

Re: Aged Debts- when do they cease being an issue?

Read this --> http://forums.all-about-debt.co.uk/s...87-s88-CCA1974

then this --> http://forums.all-about-debt.co.uk/s...aw-amp-Removal

then this --> http://forums.all-about-debt.co.uk/s...rence-agencies

[m4rc]

Re: Aged Debts- when do they cease being an issue?

Go search for me (never-in-doubt) and our site team in mse - we left there to create AAD as MSE promotes abuse. We won't stand for it. We ARE the best at this stuff. Fact.

Hence I'm here!

[m4rc]

Re: Aged Debts- when do they cease being an issue?

In the ICO - Technical Guidance Note beginning of Section 24 says:

'If the payment set out in the DMP is at a level that represents only a token sum in repayment, because that is all the customer can afford, the account should be recorded as a default.'

Fair enough. However Section 25, which as far as I can see is a direct continuation of the process of 24 says:

Where a customer does not make the repayments agreed under the DMP, a default can be recorded and the DMP marker should be removed...'

This sounds like a second default can be recorded which I was sure was not correct. Is this just badly worded?


I'm reading everything I've been told to!

[Riz]

Re: Aged Debts- when do they cease being an issue?

That is in a case where on moderate repayments the creditor had not yet filed a default by that stage. Something you can sometimes challenge.

The guidelines on when a default should be filed when there is a DMP are/were a bit of a mess, and in places appear to contradict themselves. So I wouldn't get too hung up on them.

One default on your credit file per account ever though.

[m4rc]

Re: Aged Debts- when do they cease being an issue?

Thanks Riz, that's what I thought just the wording - as you can see - makes it sound different.

So Statute Barred aside for a minute, taking this back to its simplest form, I want to know when a credit search would not contain these debts as an issue. This is not about getting away from the debts it's being able to get a mortgage. If they all had early defaults from the creditors then regardless of payment plans or communication, is it right that - as long as they are removed when they should be - 6 years from the default dates they will not show on a search by credit company?

I understand that if it's been 5 years since the default but last payment was made 1 year ago then the debts would not be Statute Barred for 5 more years, but it's the mortgage I'm interested in and wondering when that may be feasible.