GDPR Cookie Consent by SimpleServe Privacy Script Defaults and CCJ - AAD Consumer Forum

Announcement

Collapse
No announcement yet.

Defaults and CCJ

Collapse
X
Collapse
 
  • Page of 1
  • Filter
  • Time
  • Show
Clear All
new posts
Previous template Next
  • #1

    Defaults and CCJ

    Hi, have a question that I cant seem to find an answer for.

    I have 5 defaults on my credit file from when I started a DMP and all have been passed to DCAs now. These will start coming off my file over the next 2-3 years. I will not have cleared the balances by then so I understand the accounts and current balances will still appear on my file but they wont show as defaulted.

    Also I understand that you can only have 1 default on each account and for a creditor to apply for a CCJ they need to have issued a default first.

    Am I right in thinking that the current DCAs can NOT apply for a CCJ because they cant issue me with a default notice or the fact that the original creditors has issued the defaults gives the DCAs rights to send me CCJs?

    The reason I am asking is because I am paying everyone £1 at the moment. If I stop paying, the DCAs can threaten me with CCFs, just want to make sure that they cant actually get one. My plan is to hopefully get a decent F+F settlement cause at the moment they want around 90%
    Tags: account, accounts, action, bank, cancelled, ccj, claim, comi, con, costs, court, court action, cra, cras, credit, creditors, data, date, dca, dca's, debt, debts, default, default notice, defaulted, defaults, dmp, equifax, experian, family, files, money, paid, pay, public, settlements, trace, update, wages
  • #2
    Re: Defaults and CCJ

    Hi, you are getting your defaults muddled up. You can be issued with as many defaults as you are in default. The default is issued by the OC or DCA. The default registered on the CRA will clear after 6 years but the CRA wil register that the full payment is not being made.

    As long as you are paying a sum to anyone the payment is registered on your credit file. A debt will only clear 6 years after the last payment s made.

    The fact that a default has been issued action can be taken, but you must ensure that the default is in the prescribed format with enough time for rectifying etc.
    I'm an official AAD Moderator and also a volunteer, here to help make the forum run smoothly. Any views or opinions are mine and not the official line of AAD. Similarly, any advice I have offered you is done so on an informal basis, without prejudice or liability. If in doubt seek advice from a qualified insured professional - Find a Solicitor or go to the National Probono Centre.

    If you spot an abusive or libellous post then please report it by Clicking Here. If you need to contact me, for instance if I've issued you a warning, moved, edited or deleted your post, please send me a message by clicking my username.

    Comment

    • #3
      Re: Defaults and CCJ

      Also the op is asking whether a DCA can get a CCJ if they didnt issue the default.

      This is not correct. DCA's can apply for a CCJ regardless of whether it was them or the OC that added a default marker.

      There is one difference to that, and that is if the DCA is only acting as a collection arm of the OC, in which case it would be the OC that applies for the CCJ.

      If the debt has been sold, bought in absolute by a DCA then the Default is marked settled by the OC but a new entry is added by the DCA with a default showing. In which case they can apply for a CCJ.
      I'm an official AAD Moderator and also a volunteer, here to help make the forum run smoothly. Any views or opinions are mine and not the official line of AAD. Similarly, any advice I have offered you is done so on an informal basis, without prejudice or liability. If in doubt seek advice from a qualified insured professional - Find a Solicitor or go to the National Probono Centre.

      If you spot an abusive or libellous post then please report it by Clicking Here. If you need to contact me, for instance if I've issued you a warning, moved, edited or deleted your post, please send me a message by clicking my username.

      Comment

      • #4
        Re: Defaults and CCJ

        None of my debts have been bought by DCA, they are all collecting on behalf of the original creditor.

        cymruambyth you got me confused. You can only be issued with 1 default per debt, DCAs can be marking your credit file each month as "defaulted" but after 6 years of the first date the default was placed, it will drop of your file. Has that been changed?

        So DCAs/OC can apply for a CCJ at any time but I still have 1 month from when they issue me with papers to pay the whole amount before they record a CCJ on my credit file?

        My aim to is try and get them to negotiate a decent F+F payment. If someone files for CCJ I can borrow money from family to pay the whole amount cause I really don't want a CCJ for 6 years on my file.

        Which means in 3 years time I will have no defaults on my credit file but 5 debts that will be partly settled. Does that still look bad for credit scoring? Should I just pay all of them in full? Just to say that I do NOT want to just stop paying and wait another 6 years to get status barred. I have 2 kids and I really need to be moving to a bigger house in 3 years time.

        Also to add that on my current wages I can afford to repay them all in full but about 40% of the balances are from late payment fees etc when I started the DMP 4 years ago (I was unemployed then) and hence why I am trying to get a better deal

        Comment

        • #5
          Re: Defaults and CCJ

          Originally posted by buffy300577 View Post
          cymruambyth you got me confused. You can only be issued with 1 default per debt, DCAs can be marking your credit file each month as "defaulted" but after 6 years of the first date the default was placed, it will drop of your file. Has that been changed?
          Nope. Only one default should be registered on your credit file for each debt.

          Until the 6 years is up from that, they can update the default each month. But that is not the same as adding a new one.

          Originally posted by buffy300577 View Post
          So DCAs/OC can apply for a CCJ at any time but I still have 1 month from when they issue me with papers to pay the whole amount before they record a CCJ on my credit file?
          A bit more than that in truth. Even if in the worst case a CCJ should be awarded, then you still have another month to pay in full after that. If you do, you can have the CCJ cancelled and taken off your credit file.

          Originally posted by buffy300577 View Post
          My aim to is try and get them to negotiate a decent F+F payment. If someone files for CCJ I can borrow money from family to pay the whole amount cause I really don't want a CCJ for 6 years on my file.
          If that is the case, then you don't really have much to fear from court action apart from any added costs.

          Originally posted by buffy300577 View Post
          Which means in 3 years time I will have no defaults on my credit file but 5 debts that will be partly settled.
          No. Once the defaults are removed then ALL account data comes off with them. Payment history, settlement status, everything. There is no trace of the debt on your file.

          Only exception to that is any CCJ that you don't pay off within one month. They are recorded in the seprate public record section on your credit file.
          I'm an official AAD Moderator and also a volunteer, here to help make the forum run smoothly. Any views or opinions are mine and not the official line of AAD. Similarly, any advice I have offered you is done so on an informal basis, without prejudice or liability. If in doubt seek advice from a qualified insured professional - Find a Solicitor or go to the National Probono Centre.

          If you spot an abusive or libellous post then please report it by Clicking Here. If you need to contact me, for instance if I've issued you a warning, moved, edited or deleted your post, please send me a message by clicking my username.

          Comment

          • #6
            Re: Defaults and CCJ

            buffy

            Just to try to clear up some misunderstandings with defaults.

            There are two separate types of default.

            1. A default marker registered with CRA's on your credit record.

            This is normally added if you are three to six months behind in contracted payments. This is to inform other possible creditors of how you have managed your credit, and as rizzle says, this can be done only once.

            2. A Default Notice.

            This is a notice that is sent to you by the creditor, to enable them to take the next step - to issue a claim through the courts. The creditor should not be able to issue the claim without first sending you a compliant Default Notice. However the creditor can send more than one Default Notice for the same account, so he is able to correct a non-compliant Default Notice - if he is given the chance.

            As I have said these are two separate issues, a default marker can be registered long before you get a Default Notice.

            Alan

            Comment

            • #7
              Re: Defaults and CCJ

              Thanks so much guys for all your answers, things are a bit clearer now. Just one last thing....I thought that accounts will stay on your file for 6 years after the last payment is made or the account is settled?
              For example I have a credit card that was opened in 2005 then was defaulted in 2008. On my credit file it has a default date (sometime in 2008), default amount £1500 (about), current balance £1000 (about). 2014 the default will come off but I will still have a balance left to pay on the CC (i will still be making small payments). Will the whole record be removed from my credit file or will the record still be there but show only the current balance?
              Last edited by buffy300577; 27 December 2012, 13:33.

              Comment

              • #8
                Re: Defaults and CCJ

                Yes, the whole record will be removed in 2014. Whether it is paid off at that point or not.
                I'm an official AAD Moderator and also a volunteer, here to help make the forum run smoothly. Any views or opinions are mine and not the official line of AAD. Similarly, any advice I have offered you is done so on an informal basis, without prejudice or liability. If in doubt seek advice from a qualified insured professional - Find a Solicitor or go to the National Probono Centre.

                If you spot an abusive or libellous post then please report it by Clicking Here. If you need to contact me, for instance if I've issued you a warning, moved, edited or deleted your post, please send me a message by clicking my username.

                Comment

                • #9
                  Re: Defaults and CCJ

                  Originally posted by rizzle View Post
                  Yes, the whole record will be removed in 2014. Whether it is paid off at that point or not.

                  Is it removed...or is it just the default marker that is removed but the record is left on file ?

                  Comment

                  • #10
                    Re: Defaults and CCJ

                    Ok I think I might have found some answers to this.

                    Apparently Equifax states that:

                    Type of information: Credit agreements
                    Expiry date: Six years from the date the account was settled, written off or defaulted – whichever happened first.

                    Or Experian:

                    We also keep defaulted accounts for six years from the date of the default.Not, we keep the default data. But the account.
                    i.e. again, all account data is removed after the six years.

                    I think CRAs don't spell it out right but Rizzle is right, all data removed after the 6 years. The DCAs can play it dirty and apply for a CCJ after the 6 years but if I carry on with the payments I cant see why they would

                    Comment

                    • #11
                      Re: Defaults and CCJ

                      I think if someone has kept up the required payments, a CCJ application would be looked upon rather dimly and a waste of court time..and hopefully rejected...as unnecessary..?

                      Comment

                      • #12
                        Re: Defaults and CCJ

                        Originally posted by cardiac arrest View Post
                        I think if someone has kept up the required payments, a CCJ application would be looked upon rather dimly and a waste of court time..and hopefully rejected...as unnecessary..?
                        Dont bank on it!

                        Alan

                        Comment

                        • #13
                          Re: Defaults and CCJ

                          If they apply for a CCJ I can borrow money from family to repay them in full in order to avoid the CCJ going on my file.
                          I am happy doing part settlements on the debts now if the records will disappear from my credit file in 3 years

                          Comment

                          Previous template Next
                          Working...
                          X