Defaults after 6 years?

[gursh]

I was wondering if anybody can tell me what happens to outstanding balances on credit reports after 6 years have expired after the default was issued? I had 2 cards and both agreements are unenforceable due to no prescribed terms, pre April 2007 and being application forms.

Both Credit card companies insist the agreements are enforceable and continually threat legal action but never do anything over the last 5 years.

I have been chased by their internal collections departments and sometimes by external collection companies but it always goes back to the original creditor after I request a copy of the CCA from the DCA.

The defaults will come off my credit report in Nov 2011 but will the outstanding balance remain on or will it be removed??
Many thanks

G

[oscar]

Re: Defaults after 6 years?

This has been discussed before at some length previously on here (unfortunately I cannot recall the thread)

After six years, the default drops off your credit file, regardless of whether the balance has been cleared or not.

[billypre]

Re: Defaults after 6 years?

The default will drop off after 6 years from being issued BUT the balance will still remain and be enforcable UNLESS it is statute barred ( 6 years from last payment or written acknowledgement )

[gursh]

Re: Defaults after 6 years?

thank you both for your help.

i have a couple of more questions if you could help.
How will the outstanding balance effect my credit rating? will it still be a negative thing? how do i proceed to get the outstanding balance removed from my records? can i take legal action? do i offer to settle the debt with a final payment? What do you recommend i do?

thank you in advance. G

[billypre]

Re: Defaults after 6 years?

Once 6 years have passed from the default, the only way a debt is ever going to effect your credit file is if the creditor goes for and gets a CCJ/bankruptcy etc. (credit to rizzle for this fact)


How long since you last acknowledged the debt ?

[gursh]

Re: Defaults after 6 years?

it was about a year ago before i checked if the agreement was enforceable...what do your recommend?

[MustGetStraigh]

Re: Defaults after 6 years?

Hi Gursh
I've got defaults on my file which I also stopped paying approx a year ago. I'm presuming they will stay on my file for the next 5 ish years.
Not sure I've understood you correctly - have you been paying for the last 5 years or not?
Statute Barred kicks in 6 years after you last "acknowledged" the debt, ie paid anything - as Billy said.
I understand it is possible to get defaults removed if you negotiate Full and Final settlements with the default removal being part of the deal - is that what you're after?

[billypre]

Re: Defaults after 6 years?

Think i'm right in saying though that if you are going down the unenforcable route then the defaults won't get removed until the 6 years is up.

[MustGetStraigh]

Re: Defaults after 6 years?

Think i'm right in saying though that if you are going down the unenforcable route then the defaults won't get removed until the 6 years is up.

Yes, as far as I understand it. I think the only way to get them removed is F&F.
5 years and counting...

[alwaysskint]

Re: Defaults after 6 years?

lol, ok, now I'm confused - not difficult to confuse me mind you lol

Given the scenario below when can I look forward to removal on credit file? :

Default registered on file jun 2005
Minimal payments made to a dca for last 3 years
Stopped payments 2010 due to successful unenforceable route
Expected drop off date Jun/July time 2011 ie 6 years from default date

Reading the above, I am now thinking the drop off date will now be 2016 as the last payment was made in 2010.....

[billypre]

Re: Defaults after 6 years?

Default registered on file jun 2005

Reading the above, I am now thinking the drop off date will now be 2016 as the last payment was made in 2010.....

The default will drop off after 6 years from being issued BUT the balance will still remain and be enforcable UNLESS it is statute barred ( 6 years from last payment or written acknowledgement )

No mate, as i said, the default drops off your file after 6 years. End Of. It doesn't matter if you have been paying or not. It will go after 6 years.

[billypre]

Re: Defaults after 6 years?

Default registered on file jun 2005
Expected drop off date Jun/July time 2011 ie 6 years from default date

Correctamundo

[gursh]

Re: Defaults after 6 years?

The last minimal payments i made to the creditors was about a year ago!

I will have these guy's chasing me for the next 5 years before it becomes statute barred. Great...........

Is there anything i can do to get these balances removed? Court action?

by offer F&F payment doesn't that mean i acknowledge i owe the debt and can that not be used against me to enforce the debt???

[Never-In-Doubt]

Re: Defaults after 6 years?

The last minimal payments i made to the creditors was about a year ago!

I will have these guy's chasing me for the next 5 years before it becomes statute barred. Great...........

Is there anything i can do to get these balances removed? Court action?

by offer F&F payment doesn't that mean i acknowledge i owe the debt and can that not be used against me to enforce the debt???

You need to read this: ---> http://forums.all-about-debt.co.uk/showthread.php?t=17

However, put simply the default will last for 6 years from the date of default ok? So in your case it will come off end of November. However as you've been paying into the debt, the account will vanish from your credit file totally but there will still be a debt (balance) until 6yrs of no contact to make it SB'd.

Right, regards to the threat of court action - based, exactly, on what? You do realise that if you try and use UE in court they will

a) laugh at you
b) laugh some more
and
c) throw it out

We NEVER take action against a lender, basically you wait for them to take action and then back down or fight it - if you're fighting for UE then I suggest you think twice, as you'll lose. Have you ever read the Carey or McGuffick cases? If not I strongly suggest you do cos you're not quite grasping things going on your replies above!

Oh, asking for paperwork etc does not class as admittal of debt, it is establishing liability - only making payment constitutes admittal ie releasing the SB date back to 6 years.

[gursh]

Re: Defaults after 6 years?

thank you for making that clear, No action until it comes your way!

You tend to get confused when you read so many threads on this site and elsewhere, everybody has a different opinion going forward.

I think i will offer them a Final payment to get the balance removed.

Many thanks for your help.