Defaults, what happens at 6 years.

[Muffintop]

Guys Im sorry Im dead confused now.. I have a number of credit cards that I challenged CCAs in 2008, most appeared to be enforceable, MBNA BCARD didnt send me anything to prove or disprove but i got spooked after so many people went to court and lost... so I bottled it, ruined my credit file and paid each month via CCCS hoping that if I did get called to court the dj would see that I had attemped to play ball.

Is the score now that by paying after 6 years the defaults will be reinstated for another forever?

or

this is just a possibility

or

this cant happen the debt will be statute barred

or

this can happen but experian and ico will support getting them dropped off my file

[brokebutnotbeatn]

A debt can only become statute barred if it is not acknowledged in writing or paid against for a clear 6 years period. Defaults and CCJs drop off after 6 years but it is my understanding that accounts not defaulted will continue to show an AP (arrangement to pay) marker and they never drop off. I would imagine the situation will change over time as it means someone who is attempted to pay their debts off will be in a worse position than someone who doesn't.

[Muffintop]

Great news, this means I have used money I needed to pay back my debtors and thought that after 6 years it would be the end of the nightmare where I cannot get anything not even a mobile phone which is humiliating to someone with a previous squeeky clean credit rating, its meant I cant help my kids with mortgages or rent guarantors and my choices are limited to say the least.. Now it means that this will never end as even in around ten years it will still show until its paid off... I almost wish I had never paid them anything now.

The only plus side I guess is they all dropped interest to 0 percent so debt was coming down rather than going up if they decide to go for a charging order.

[brokebutnotbeatn]

This is why things will have to change...I am in exactly the same position as you...

[brokebutnotbeatn]

BUT I only have one default (actually perhaps 2 as it was EGG) and it didn't stop me getting mobile phones, a rental property or another bank account whereas CCJs would have! The main issue will be with mortgages. Hopefully in 6 years time lending will have eased up OR I will have met a rich and handsome man to take care of me in the manner I would like (hahahaha). x

[idbehold]

I just spoke to Experian. I have a debt that defaulted on 6/6/2005 He said that on the 7/6/2001 the debt will no longer show on my report as it would be after 6 years. I asked if the Debt collection agency could keep it on there for longer, but the Experian bloke said they could not, even though they registered the debt only last year. He also said that this was the same for all the other main 3 credit report agencies.

 

So after 6 years, no matter if it is ongoing it should disappear. I will see in a few weeks if this is true!

[brokebutnotbeatn]

yes, but only the defauted debts? if not defaulted but on AP the markers stay...once settled it's then 6 years before it drops off???

[the_shadow]

yes, but only the defauted debts? if not defaulted but on AP the markers stay...once settled it's then 6 years before it drops off???

 

Yes thats how I understand it too, a defaulted debt is in effect a dead account which will cease to be on the credit file after the 6 year limit... have to watch out for them re-listing it I presume if attempting to settle the default by paying it off outside of those years.

 

As to agreement to pay non default, then yes, 6 years after the settlement it will drop off :-/

 

S.

[Muffintop]

Shadow this is confusing the hell out of me now.. I also understood that any defaulted debts shown on file dropped off after 6 years, I have around 5 defaults from credit cards that I bottled out on and went into a cccs debt plan, only good thing here was interest frozen and some of them will eventually allow f and f settlement. BUT it has stopped me renting, obtaining mobile phone despite having significant amount of money going into my current account wont allow overdraft more than 500 (prob a good thing) I feel like I am doing a long term prison sentence and if they dont drop off after 6 years I will go the rest of my life with a chain round my neck.

[car2403]

The debt won't, as it's still current, but the Default will. Problem with the debt is it continues to show 6+ in arrears until settled, which is just as bad as a Default.

 

This will have to come to a head soon, as the value of a 'Default' has to be diminished due to the credit crunch where almost everyone is likely to have one - it won't be representative of how you manage your current credit, so I think aged Defaults will be taken in to consideration less in future.

[cashins]

The debt won't, as it's still current, but the Default will. Problem with the debt is it continues to show 6+ in arrears until settled, which is just as bad as a Default.

 

This will have to come to a head soon, as the value of a 'Default' has to be diminished due to the credit crunch where almost everyone is likely to have one - it won't be representative of how you manage your current credit, so I think aged Defaults will be taken in to consideration less in future.

 

Agree with that.

 

Having worked in the business myself, I am aware the average boom to bust cycle is around 10 - 12 years. Which means that banks will fairly soon revert to their old ways - after all if you are a bank , you can't actually make any money unless you actually lend it to someone and there is a distict shortage of 'squeaky cleans'.

 

Here we go again.

 

David