Ageing Debt..

[elgorm]

Hello wise debt experts!

 

I believe my story is pretty typical, wont bore you too much!

 

I’ve amassed unsecured debt (Current accounts, loans, credit cards, mobiles contracts) over the years which stands around £6-7k at the moment.

 

Most of my debt is around 4 or 5 years old as I was served a CCJ around 5 years back which I have paid off.

 

I have had hundreds of letters from DCA’s regarding these bills which threaten court action but I have a feeling they have pretty much given up as the letters are always the same.

 

The biggest debt is around £2k which I haven’t heard from in over 12 months (HSBC Personal loan).

 

Due to paying off a debt which I received a CCJ for and some other debt at the time my girlfriend has loan which I pay for monthly of £200. Almost finished finally!

 

I believe that after a debt has been inactive for 6 years it is automatically remove from my credit file. This being true then in 24 month max then a lot of this debt might have disappeared??

 

To pay this debt off I would probably have to commit to around £200 a month for 3 years so I am weighing up the options of leaving the debt to run down…

 

The questions I have are:-

 

1) In the last year or 2 of my debt how likely am I to receive a CCJ on debts of sub £2k, most sub £1k?

2) Will the CCJ stay on my file for 6 years from the time it was issued or does it disappeared with the related debt??

3) If it does disappear with the debt can I ignore it??

 

Most probably daft questions but any advice would be gratefully received, I’m at a point where I would like to start a fresh and debating the best way of getting back to square 1!

 

Cheers

[citizenB]

Reporting of bad debts continues for 6 years after the default is registered.

 

There are Debt collection Agencies who specialise in purchasing very nearly "statute barred" debts and pursue vigorously.

 

I imagine the chances of you being issued with a claim depends on whether the company believes there is value in the claim or if they believe you are able to repay the debt.

 

TBH, I dont know if a CCJ stays on for 6 years after it has been issued or not, someone else will have to answer that question for you.

[elgorm]

Thanks for the reply.

 

I think the fact I dont own my house and I've basically had zero contact with them in recent times will give off a scent of 'this is a lost cause'...

[silverfox1961]

Anything is possible. Remember, DCA's don't live in the real world.

 

It is my understanding that CCJ's stay on your file for 6 years from judgement and not backdated to when the default was first issued.

As CitizenB has mentioned, defaults fall off 6 years after they are placed although they can take up to 6 months to be put on in the first place.

 

If you pay off a CCJ, you can get a notice of satisfaction which you can get placed on your credit file but in my opinion, it makes not one jot of difference. The words CCJ put most off!

 

If you got a CCJ and didn't pay it and they didn't bother chasing it for 6 years plus, they would have to go back to court to explain why they haven't chased it. A CCJ doesn't become Statute Barred.

 

One thing you haven't mentioned. With the exception of any overdrafts, have you tried to reclaim any overlimit/late payment/PPI charges that there may be on your accounts?

[elgorm]

Thanks Silver Fox for the advice.

 

I dont think I ever took out PPI. I have tried reclaiming about £600 of charges from HSBC but got rejected after the big court case.

 

I have a barclaycard debt which is around £900 however the limit on that card was only £350 so there must be a hell of a lot of charges on there! I got this card in 1999 when I was a Uni student! I really need to have a look at my credit file to see exactly when the debts will disappear.

 

Is it strange not to hear about a debt in 12 months? I owe HSBC 2 sums for my current account and personal loan but they 'appear' to have given up..

[Tingy]

Hello wise debt experts!

 

I believe my story is pretty typical, wont bore you too much!

 

I’ve amassed unsecured debt (Current accounts, loans, credit cards, mobiles contracts) over the years which stands around £6-7k at the moment.

 

Most of my debt is around 4 or 5 years old as I was served a CCJ around 5 years back which I have paid off.

 

I have had hundreds of letters from DCA’s regarding these bills which threaten court action but I have a feeling they have pretty much given up as the letters are always the same.

 

The biggest debt is around £2k which I haven’t heard from in over 12 months (HSBC Personal loan).

 

Due to paying off a debt which I received a CCJ for and some other debt at the time my girlfriend has loan which I pay for monthly of £200. Almost finished finally!

 

I believe that after a debt has been inactive for 6 years it is automatically remove from my credit file. This being true then in 24 month max then a lot of this debt might have disappeared??

 

To pay this debt off I would probably have to commit to around £200 a month for 3 years so I am weighing up the options of leaving the debt to run down…

 

The questions I have are:-

 

1) In the last year or 2 of my debt how likely am I to receive a CCJ on debts of sub £2k, most sub £1k? Depends entirely on the DCA and possibly the OC depending on the type of assignment. What you don't want to do is acknowledge the debt unnecessarily as it will restart your 6 years.

2) Will the CCJ stay on my file for 6 years from the time it was issued or does it disappeared with the related debt?? As Silverfox said, they never become Statute Barred, but after 6 years, anyone wanting to collect on the DCA would have to go back to court to explain why they haven't already pursued it in the past 6 years.

3) If it does disappear with the debt can I ignore it?? Bascially yes. It falls off 6 years after the date of default - keep an eye on your credit file and copies of it, as this date can sometimes mysteriously change when it gets into the hands of an unscrupulous DCA. After 6 years, although you still owe the money, no action can be taken to collect it. This doesn't stop some DCA's trying, but all you need to do is write to them and firmly tell them it's SB and they'll stop pursuing you.

 

Most probably daft questions but any advice would be gratefully received, I’m at a point where I would like to start a fresh and debating the best way of getting back to square 1!

 

Cheers