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Question about defaults, CCJs and 6 year credit file thing..


purpledelly
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I wonder if anyone can advise. I've had a search and can't find the specific answer to my question although I know there are similar questions on here.

 

Basically (long story short) I entered a DMP in 2005 and have a number of defaults from around Aug 2005. I also have a CCJ which I'm paying off monthly (and will take forever) listed in the same month.

I took over my DMP about 2 years back and through CCA letters and various other means I've either got rid of, paid back or am paying back monthly the debts, including the CCJ.

 

If I'm correct, the defaults and CCJs will 'drop off' my file in Aug 2011 (6 years after registered). Is this correct?

 

I'm really wondering what the implications are - mainly in terms of getting credit after that - I don't want credit except a new mortgage that's a better rate than now.

In addition, is there any effect (good or bad) in the fact that I will in Aug 2011 still be paying back some of these debts? Presumably I can't stop paying them then as they would default again - is that correct?! Not that I really want to. I really plan to just get a new mortgage if possible and then set about clearing the remaining debts ASAP.

 

Any advice and clarification would be much appreciated.

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I wonder if anyone can advise. I've had a search and can't find the specific answer to my question although I know there are similar questions on here.

 

Basically (long story short) I entered a DMP in 2005 and have a number of defaults from around Aug 2005. I also have a CCJ which I'm paying off monthly (and will take forever) listed in the same month.

I took over my DMP about 2 years back and through CCA letters and various other means I've either got rid of, paid back or am paying back monthly the debts, including the CCJ.

 

If I'm correct, the defaults and CCJs will 'drop off' my file in Aug 2011 (6 years after registered). Is this correct?

 

I'm really wondering what the implications are - mainly in terms of getting credit after that - I don't want credit except a new mortgage that's a better rate than now.

In addition, is there any effect (good or bad) in the fact that I will in Aug 2011 still be paying back some of these debts? Presumably I can't stop paying them then as they would default again - is that correct?! Not that I really want to. I really plan to just get a new mortgage if possible and then set about clearing the remaining debts ASAP.

 

Any advice and clarification would be much appreciated.

 

 

I believe that to be correct.

 

The CCJ will drop off the credit file after 6 years, but it is still in force and payments will need to be made. Defaults will drop off as long as they are recorded as a default and not just an ongoing late payment.

 

I guess your problem might be having little/no positive information on your credit file.

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That's useful - thank you.

I have a credit card with a weeny balance which I pay off almost immediately - it's certainly never late or anything. And also a catalogue I reguarly pay off. I got these with the intention of 'repairing' my record so I would have some 'good' history when the time comes. Is this likely to help?

 

I must check if my defaults are all registered as such and not late payments. If they are continuous late payments can I do anything about those? Would they cause problems?

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That's useful - thank you.

I have a credit card with a weeny balance which I pay off almost immediately - it's certainly never late or anything. And also a catalogue I reguarly pay off. I got these with the intention of 'repairing' my record so I would have some 'good' history when the time comes. Is this likely to help?

 

I must check if my defaults are all registered as such and not late payments. If they are continuous late payments can I do anything about those? Would they cause problems?

 

 

Best place to start is to look at your credit file, if you haven't, to see who's putting what on it.

 

Defauts will show up with a "default date" and you'll will hopefully see some positives from the card and catalogue.

 

Try: Free Credit Report now and every year - annualcreditreport

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OK...I'm back again and thank you for the advice so far.

 

I used the link and did a check. I've not used this before although I have had an experian check before.

This was interesting in that it didn't show as many default accounts as I thought it might. One or two seem to have just disappeared.

 

It has though, thrown up a couple of questions which I'm hoping someone may be able to help me with.

 

Firstly - the CCJ I have. It is registered on the credit file under CCJs. as per this picture:

ccj2.jpg

 

However, in the main account it is also listed, but this time with a (6) next to it:

ccj1.jpg

This seems like it may cause me issues. Should it not read 'default'? If it is normal for it to have a 6 could this cause me issues come 2011 as presumably this won't also 'fall off' my record?

 

The other question is similar. It's about another account I have/had.

This was a credit card which I defaulted at about the same time as all the others. I paid a token amount per month for a couple of years on my CCCS DMP but when I took it over myself I CCA'd them and they provided nothing so I stopped paying. It got passed around a little to DCAs but eventually I stopped hearing anything at all about it. What is annoying on this one is that it says 'AR' for ages and then shows missed payment before finally a D in Sept 2008 and then DA to show it's gone to a collection agency.

Clearly this is a problem as the default will now take 6 years from Sept 2008 to drop off. Is there anything I can do about this?

mbna.jpg

EDIT: I don't know if it's relevant, but this account above is also listed as being 'Closed' so it's in my Closed account list...

Edited by purpledelly
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This seems like it may cause me issues. Should it not read 'default'? If it is normal for it to have a 6 could this cause me issues come 2011 as presumably this won't also 'fall off' my record?

 

Is there not a "default date"/"date defaulted" or similar on the detail page for this debt? If not then I think what you say is true - The CCJ will dissapear, but the bad history won't. Did they send you a Notice of Default?

 

Clearly this is a problem as the default will now take 6 years from Sept 2008 to drop off. Is there anything I can do about this?

 

If they did not have an enforceable agreement then maybe you could use the Data Protection Act to try to get it removed. This is much debated on the main CCA thread and seems far from easy even when it has been done. Might be best to have a poke around there as this is streatching my knowledge. It sounds that, in your case, the debt was written off without a court declaring it unenforcable and I think this will make it even more difficult.

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Just dug into mine:

 

On the "Report Summary" click on the line in question.

 

About half way down on the left of the "Detailed Account Information" page you should see something like:

Default Date 01 December 2005

Removed from File December 2011

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Just dug into mine:

 

On the "Report Summary" click on the line in question.

 

About half way down on the left of the "Detailed Account Information" page you should see something like:

Default Date 01 December 2005

Removed from File December 2011

 

Hi Again

Nope - other accounts have this info about default but this one doesn't. Bit strange really as I'm wondering how they got a CCJ if they didn't register a default, but the CCCS were dealing with it at the time and we just signed the bits of paper :rolleyes:.

I'm going to dig out our records in a bit and see if there is a written default notice from them anywhere.

 

Any advice on the other query?

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I'm going to dig out our records in a bit and see if there is a written default notice from them anywhere.

 

Good plan. They shouldn't have the CCJ without a Notice of Default, but I've found that the credit files do not necessarily tie up with a Notice of Default being issued. - Can anyone else shed some light?

 

Any advice on the other query?

 

If they did not have an enforceable agreement then maybe you could use the Data Protection Act to try to get it removed. This is much debated on the main CCA thread and seems far from easy even when it has been done. Might be best to have a poke around there as this is streatching my knowledge. It sounds that, in your case, the debt was written off without a court declaring it unenforcable and I think this will make it even more difficult.

 

Did I miss something?

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Thank you again.

I've had a rummage and all my paperwork is pretty neatly filed and I only have the CCJ notices nothing else from this creditor. I'm wondering if I may have sent it to the CCCS and I bet if I did they won't still have it :Cry:

I will ring them and see though.

 

Assuming this is correct and there is no default, does anyone know what the implications might be in say 2011, if I have 6 'good' records (mortgage, bank accounts x 2, mobile phone, catalogue, credit card with low balance) and then just this one '6' ?

 

Re: the 2nd query - you're right in that we didn't go to court. They just seem to have 'given up' and obviously have marked the account closed. But I'm not assuming they haven't or won't pass it on to some lovely DCA at some point. They've never actually admitted it's unenforceable and agreed to write it off.

Also - I definitely didn't get a default notice in the post from this company in Sept 2008. I'm not sure if I've ever had one but will go on a rummage again.....hmmmm...

Edited by purpledelly
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Just a little update.

 

I've definitely not got a default notice from MBNA who are 2nd company I mention who had the arrangment to pay notice for ages and then suddenly a default notice last year.

The last correspondence pretty much that I had from them was this time last year when they said they 'may' have to take further action (e.g. CCJ/default) if I didn't contact them. I've definitely not got a default notice though.

I've got 2 years to sort this before I need to look at mortgages - does anyone know if I'd be able to contest this and if so how?

I'll have a look around the forum too and see if I can find some information.

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Re: the 2nd query - you're right in that we didn't go to court. They just seem to have 'given up' and obviously have marked the account closed. But I'm not assuming they haven't or won't pass it on to some lovely DCA at some point. They've never actually admitted it's unenforceable and agreed to write it off.

Also - I definitely didn't get a default notice in the post from this company in Sept 2008. I'm not sure if I've ever had one but will go on a rummage again.....hmmmm...

 

I can only see two routes (unless someone else knows better!):

1. Wait - It might stay quiet and Statute of Limitations kick in and it will disappear off your credit file anyway or, as you suggest, a DCA will pop up and start trying to collect again. As they don't have a CCJ they may try to get one. At his point you could file your defence on the basis you've lost track of your finances and need proof they're legally entitled to collect.

 

2. Force the issue - You could consider a Subject Access Request on MBNA to see what turns up - Especially the default notice/agreement and go from there. Have you notified them they are in default under s77/78? Possibly poking the beehive though!

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Yes you're right - I'd considered the wait and see versus the 'poke the beehvie' options and now they've gone quiet I am a little reluctant to stir it up again. However I'm fuming about the default notice and don't want it to affect things down the line...

I'm reading some threads including the one you posted - gosh they are long threads! But it seems this is a fairly common issue with MBNA.

 

Re: the statute of limitations - by that do you mean the rule whereby if you don't acknowledge or pay a debt for 6 years it becomes statute barred? If so I guess I would ideally like to do that - but that would still take us way beyond 2011 and I'll have already spent 6 years paying penance for my debts by 2011 and ideally want to sort all this out and get straight :(

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...now they've gone quiet I am a little reluctant to stir it up again.

 

Perfectly understandable, but be prepared in case they go for a CCJ as if they get it that will reset the 6 year clock on your credit file.

 

Re: the statute of limitations - by that do you mean the rule whereby if you don't acknowledge or pay a debt for 6 years it becomes statute barred

 

Yes.

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Perfectly understandable, but be prepared in case they go for a CCJ as if they get it that will reset the 6 year clock on your credit file.

 

Yes that's true.... but they wouldn't be likely to get a CCJ without a default notice or a CCA would they? And does it make any difference that the account is marked as Closed on my CRA report. I'm not sure what that means really - does it mean they've washed their hands of it and if so surely they can't pursue me for it....agghh it's all so confusing.

 

Just when everything was beginning to seem to be on the road to recovery :rolleyes:

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Another thought.

 

How much is the MBNA debt?

 

I'm guessing if it is small:

- They may think it not worthwile taking it to court

- To bring it to a closure (and prvent a future CCJ) you may be able to offer a Full and Final if you prefer not to challenge the agreement.

 

Well...I just went back to the CRA report to check this and interestingly the picture below is what it says down the left hand side.... where all my other accounts show amounts but this doesn't. How can I default on an account that's closed with nothing owing :rolleyes:. Am I just clutching at straws here?

However the balance was fairly high if I remember correctly last time I saw any kind of statment - quite a few thousand.

 

mbna2.jpg

Don't really understand the implications of this....

Also - they did offer me a range of full and final and partial settlements throughout the CCA dispute. I couldn't afford what they wanted at the time though... and also felt beligerant as they didn't have the CCA - they only ever sent me a poxy poor incomplete application form..

Edited by purpledelly
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...but they wouldn't be likely to get a CCJ without a default notice or a CCA would they?

 

Should not be able to. The question is:

have they secretly acknowledged its unenforcable, written it off and not passed it to a DCA

 

or

 

will someone start collecting and go for a CCJ?

 

I think this us brings us back to the 2 routes! Challenge the CCA when they apply for a CCJ or force the issue now.

 

The last entry is the typical "DA", but I don't think this neccessarilty means someone will collect.

 

How can I default on an account that's closed with nothing owing :rolleyes:. Am I just clutching at straws here?

 

I don't think they can, but the credit file suggests they have whether or not it was received. Otherwise there's a whole thread on this too!

 

... and also felt beligerant as they didn't have the CCA - they only ever sent me a poxy poor incomplete application form..

 

Have you had a look at http://www.consumerforums.com/resources/templates-library/86-debt-collectors/609-mbna-agreementsapplication-forms

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OK here's another thought... and I'm sorry for posting more.... and I'm sure there might be more people around tomorrow to add some of their thoughts...

 

But .... when a company (say a mortgage company) check my credit file. Do they look only at open accounts or all accounts?

Because this below is the summary of accounts on my CRA file.

I've blanked out names and amounts for currently active credits.... but the MBNA one is in the closed list.

As you can see - accounts in the closed list don't have a 'D' or anything after them. So are they effectively ignored by anyone looking to assess credit worthiness? Or again am I perhaps hoping too much?

 

Aside from that one 'D' (which will be gone early 2011) and the '6' from the CCJ account on my open accounts then the rest looks 'OK'!

 

summary.jpg

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