Can I stop paying?

[AnnieH_1966]

Hi, first post here so hopefully in the right thread. I have a debt of approximately £7,000 for an MBNA loan that dates back to 1998. I defaulted on the loan in 2001 and my debt was passed first to a recovery agent called DLC and is now with Ruthbridge. Due to my low income, I have been making regular but nominal payments since then - currently £30 a month. On checking my credit file with all the major reference agencies recently, I noticed that my debt was nowhere to be seen and my credit rating is now good. The questions I have are: What has happened to my debt?Can I stop paying Ruthbridge?If I do, will the debt suddenly reappear on my credit rating?I have had no communication from Ruthbridge for a couple of years and I am scared to contact them partly because the last time that I spoke to them they were so rude and aggressive.Any advice would be greatly appreciated, thank you.

[andydd]

Did you check all three CRA's, Equifax, Experian and Callcredit ?

 

http://www.ico.gov.uk/for_the_public/topic_specific_guides/credit.aspx

 

Andy

[AnnieH_1966]

Hi Andy, yes I did check them all and there is nothing showing on any of them. My credit rating on all three was good.

[andydd]

and there is nothing from either MBNA or Ruthbridge ?. Has the debt been assigned to Ruthbridge ?

[AnnieH_1966]

There is nothing on any of the reports relating to MBNA or Ruthbridge. I don't know whether the debt has been assigned to Ruthbridge, I just know they were the ones collecting the debt for MBNA.

[andydd]

There is nothing on any of the reports relating to MBNA or Ruthbridge. I don't know whether the debt has been assigned to Ruthbridge, I just know they were the ones collecting the debt for MBNA.

 

The difference is that either MBNA own the dent and they are they only ones who can take legal action (and the ones who should be mentioned on any CRA) or they may have sold it 'assigned' to Ruthbridge (at a knock down price), who can then take legal action, etc.

 

Andy

[sillygirl1]

I would send a SAR to MBNA and ask for full statements, then take off any interest they have been adding, check to see if any PPI was on this loan and put in for a rebate.

 

Until you have the full payment history you can't do much.

 

Of course if MBNA say Ruthbridge own the debt then SAR Ruthbridge.

 

Just on a basic calculation of £30 a month over 12 years that would be £4320 repaid.... without adding any interest!

[AndyOrch]

Hi Annie

 

What was the balance at the time of default in 2001? How are you making your payments now?

 

Andy

[Jasper1965]

Just on a basic calculation of £30 a month over 12 years that would be £4320 repaid.... without adding any interest!

 

Don't forget the monthly payments made between 1998 and 2001 prior to the loan entering default.

[sillygirl1]

I think that they can default again, as many times as you miss a payment and do not make it up. I've asked the site team for clarification on this.

 

If they went for a CCJ at this stage they would have a lot of paperwork and cost for very little, I do not think they would go down that route as then a counter claim for all the charges, excessive interest etc etc etc could mean the defendant gets a 'nice little earner' from the judge.

[AndyOrch]

They can default as many times as they wish providing the breach has been rectified.If the account is defaulted and then terminated then no further defaults can be issued.

[Jasper1965]

I have had no communication from Ruthbridge for a couple of years

 

Not entitled to interest or enforcement under the CCA1974 as amended by CCA2006 if they haven't been issuing the relevant notices.

[AndyOrch]

I always thought that there were three steps. Default notice, which could be rectified by doing what it said, then an actual default which went on your credit file as a once only event then finally a termination of contract. I am wondering if a default notice is getting mixed up with an actual default?

 

1. Notice of Default

 

2. Default Notice/ Notice to Terminate

[AndyOrch]

Ok thanks for that Andy. Getting mixed up again. But surely once it has been registered as a default it can't be registered again. And do they have to serve a separate termination notice on you?

 

The default remains for 6 years on your file anyway why would it be registered again? A termination Notice can be part of the Default Notice not many actually issue separate TN,s usually litigation seals it finality.

[AndyOrch]

The CRAs dont send any conformation it is contained within the Default Notice that they will register the default with the CRA,s

[AndyOrch]

Can we get this thread back on track now and wait for Annie to respond?

[LostAtSea]

I'm tempted to think that if they have been accepting £30 pm without troubling you further then all is not as it might seem. did you have PPI on the account?