Payday loan defaults.... am I on the scrapheap for years to come?

[od0s]

Hi all,

 

A couple of years ago I was suffering from a gambling addiction, and got caught in the payday loan trap.

 

For over a year now I have been clean from addiction and kept complete control of my finances.

 

However, when I was struggling I picked up 3 defaults on Payday loans (although I did pay another 10 different companies back in full).

 

They are on my credit file as defaults from 2010, and so will be with me until 2016.

 

I am desperate to move on with my life and have taken many steps to try and improve my rating and kept all accounts up to date since 2010.

 

I have decided to try and get the defaults removed - is this a stupid idea? I am about to send them all the template letter asking for true copies of agreements and the default notice etc.

 

Will this achieve anything, and is it worth a shot? I would desperately love to pay them all back in full now, as it is only about £600 in total, but from what I gather, even if I pay them, the 3 defaults will remain and I will struggle to get any credit. My partner is desperate for us to get a mortgage, but it seems impossible with these defaults on there.

 

Should I go ahead and send the template letters? I am worried they will just start harrassing me for payment again, and I will be in a no-win situation - apart from knowing I have paid all my dues for my previous addiction.

 

 

Your help and advice is much appreciated.

[s4ddys]

it has to be worth a go I would say. At least then you can be free from forgetting about them and getting a reminder say two or three years down the line and drudging up the past again.Well done on the gambling also, I know how you feel - I too had gambling issues up until October 2011, so 6 months free for me. Its difficult but great that you have turned things around!

[sillygirl1]

I disagree, you could actually reset the clock by acknowledging them now, it is best to let 'sleeping debts' lie, even though they do damage your credit rating.

 

It is NOT a good time to get a mortgage either, too many 'variables' including the likelihood of the government having to change next year (I think they are using the Olympic Games to hid behind for a while), so until you are 100% stable and have money behind you I wouldn't advise taking on any debt.

[26072004]

Are these debts still outstanding or did you pay them back.

 

If you have cleared them it is well worth asking for a copy of the default notice, if they cant come up with this you can ask the CRA to remove them.

 

But as sillygirl says if the debt is still outstanding you could just be reminding them you owe them money.

[s4ddys]

The OP said they were still outstanding I think. Think it is up to you and how you feel about having them oustanding. As sillygirl says it could make live again debts that may never bother you again, or you could clear if you can afford for peace of mind. That choice would be down to you and your individual circumstances.

[26072004]

sorry yes the OP does state they are still outstanding.

 

Some lenders may be sympathetic to your situation, have tou tried an independent mortgage broker?

[LaughingGirl]

Over the last 12-18 months, nobody I know has been able to get a mortgage without a squeaky clean credit record - at least, not from a mainstream lender. I think there's enough horror stories on here about non-mainstream lenders to make the alternative extremely unappealing, at least. This is just my opinion though - others may know different.

 

Do you actually know who currently owns the debt? It's highly likely that they've sold them on by now. I would be wary of paying the creditor direct until you are sure of this, because you could find that 3 months down the line you get a DCA chasing you for a debt that as far as they're concerned they own. If you do pay the creditor direct, make sure you keep a meticulous record of payments.

[od0s]

Hi all - thanks for the comments so far.

 

Indeed, they are outstanding debts. I would not be in a bad position if I had to pay them off - but I haven't heard ANYTHING from the debtors since they defaulted. I paid probably £1000 interest over a year on one of them - maybe that's why they are not bothered.

 

I am not looking to get a mortgage in the very near future. I would love to in the next few years, but I am figuring I need to start working on my credit file NOW.

 

Basically I would do whatever it takes to get the defaults removed, although I know it is not as simple as that.

 

I just want to work out the best way forwards really...