Default on loan passed to Apex - now living abroad

[Stressed_abroad]

Hi,

I defaulted on an unsecured loan held with Cahoot for an amount of 6k which I took out to help finance my studies while at University.

The debt has since been passed to APEX credit management. I am now living abroad and want to pay off the debt, however am concerned over the risks/rewards of doing this. The default notice was issued while I was living and working in France if this makes any difference.

Once I pay the debt off with APEX, will the default be removed? If so, in what timeframe? Also, should I obtain any documentation from APEX showing that they do own the debt and that if I repay the balance, the debt will be marked as settled on my credit file?

Neither APEX nor Cahoot are aware of my new address.

Thanks a lot for your help with this.

[cerberusalert]

I've moved your thread to the 'Overseas Debt Forum'

[cerberusalert]

If they've marked your file with a default it will remain for six years.

 

Do you intend to return to the UK permanently within the next six years?

[Stressed_abroad]

Thanks for your reply.

No I intend to live abroad for the foreseeable future. Can I get the default removed given that I was abroad when it was issued?

[cerberusalert]

A default on your UK credit file will not have any bearing abroad.

 

You have a couple of choices, totally ignore them and let them try and find you which will be difficult for them. Because you are a non UK resident they cannot take any enforcement here & even if they applied for a CCJ using a previous UK address you can easily get it set aside & they cannot take enforcement action abroad without a CCJ see; http://www.consumeractiongroup.co.uk/forum/overseas-debt/250889-can-i-sued-overseas.html

 

Or you could try to come to some arrangement to pay them now but be warned they will make things as difficult as possible by 'phoning and writing to you demanding higher and higher payments & even passing the debt on to a debt collector in which ever country you're in.

 

If you decide to ignore them the debt itself will become Statute Barred six years from when you defaulted the a/c, which means if you came back to the UK the wouldn't be able to enforce it here either.

[cerberusalert]

Deleted wrong info

[Stressed_abroad]

Thanks a lot for the info.

Just to clarify, if the debt becomes statute barred, what does this mean exactly?

If I dont do anything, am I right in thinking after 6 years it will be as though the default never existed?

It seems the best course of action would be to do nothing if this is the case.

I tried looking into how to have the default set aside, I need to contact the court, is this correct? Unfortunately, the notice was sent to my parents address in the UK, they have subsequently moved and I am not sure where the notice is. I guess I need the info on the notice in order to know who to contact? Would you recommend setting up a PO box then for correspondence with the court or is this not necessary?

 

Thanks for all your help, sorry for all the questions.

[cerberusalert]

Just to clarify, if the debt becomes statute barred, what does this mean exactly?

A debt becomes Statute Barred if no payment or written acknowledgement is made for a clear period of six years (five if you lived in Scotland) which means that no enforcement can be made to make you pay the debt. They cannot apply for a CCJ, Bankruptcy etc.

If I dont do anything, am I right in thinking after 6 years it will be as though the default never existed?

Yes.

I tried looking into how to have the default set aside, I need to contact the court, is this correct?

Unless there's a legal reason to have a default removed it will remain for six years, but as I said it does not affect your credit abroad.

I tried looking into how to have the default set aside, I need to contact the court, is this correct? Unfortunately, the notice was sent to my parents address in the UK, they have subsequently moved and I am not sure where the notice is. I guess I need the info on the notice in order to know who to contact? Would you recommend setting up a PO box then for correspondence with the court or is this not necessary?

A default has nothing to do with a court, it is just a marker on your UK credit file which will drop off after six years. There's no point setting up a PO box unless you wish to contact them.

[cerberusalert]

Just to clarify, the fact that you've received a Default Notice doesn't mean that a court is involved. It is just a legal requirement a creditor must fullfill before they can legally mark your credit file.

[Stressed_abroad]

Oh ok I see. Thanks for the explanations....

 

So im right in thinking the default will remain on my credit file until either 6 years pass from my last communication, or I repay the amount?

 

How will I know if a CCJ has been issued or not if I have no connection to my last known address?

 

Cheers

[cerberusalert]

The Default will remain for six years from when you last made a payment or made a written admission of the debt.

 

You will not have had a CCJ entered against you yet, that is if at all is several months away. You can check online in a year or so at CCJs, court orders & fines - Search yourself and others - Trust Online but as I said even if they managed to obtain one it can easily be set aside because you are a non UK resident see; National Debtline England & Wales | Debt Advice | Factsheet 12 How To Set Aside A Judgment In The County Court