Debt Resolution and future Mortgage Opportunities.

[franwilliams]

Thank you kindly for reading my post and I look forward to hearing your suggestions.

 

I am looking to clear my current debts (which admittedly I have ignored for years) as swiftly as possible, with a view to getting back on the property ladder in the coming year/s.

 

Debts:

• HBOS - Unsecured Loan: 7k
  CCA Request Summer 2007 - Halifax admitted they couldn't provide a Credit Agreement, I sent the template letters at the time and stopped paying them in 2008. However continued to chase through various DCA. I've moved house a couple of times over the last 3-4 years, however they've caught up and had a letter from a new DCA yesterday. They claim they've bought my debt?
   
  Last record on my credit file: NR (Sept 09)
   
  
  
• HSBC - Credit Card: 2k
  Same as above, HSBC never provided a credit agreement and I stopped paying them in 2008. Continued to chase, but they aren't currently pursuing me, as they probably don't have an up to date address.
   
  Last record on my credit file: Default
  

My credit file records: 1 Case of Arrears, 2 Defaulted Accounts & 2 Arrangements with a score in the low 500's.

 

I guess what I need to know is what to do next in terms of settling or paying the debts and how that will effect my credit score.

 

Any advice you can give me on the following, would be greatly appreciated and apologies if this is post in is in the wrong thread.

 

• Regarding the DCA, how do I know they've purchased the debt? and is there a way of finding out how much they paid for it?
  
  
• Should I negotiate with the DCA or the lender?
  
• Whats the different in full and partial from a credit score point of view.
  
  
• With a full or partial settlement is there any scope for getting the finance history wipe from my credit file, considering there is no credit agreement?
  
  

Edited September 7, 2012 by franwilliams

[franwilliams]

Is there too much detail in the post? Does it require breaking down in to individual categories?

[brokebutnotbeatn]

It looks as if the HBOS debt will besome SB'd next year if it isn't already. When was your last written acknowledgment of the debt; when was the last payment made against this debt?

HSBC: this default will remain on your files until it's drop off date - your credit file will show when this is reported to. This will become SB'd in 2014. Bizarely you are worse off with the one's with whom you have an Arrangement to Pay as these remain on your credit file for 6 years AFTER the account is closed and it won't be closed whilst you are paying against them.

I am afraid your credit file is screwed for some considerable time or until such time as mortgage lenders take a more 'relaxed' view of your credit history. If you reach a F&F with the debts you are currently in an arrangement with that will close the file out and your file will be clean 6 years from then. The 'score' is nothing more than an indication to you as to how a lender may view your history. At the moment you need at least 4 years and in most cases 6 years of a clean and well run credit file to even get a sniff at a mortgage. Sorry it isn't what you want to hear.

[franwilliams]

HBOS - Written acknowledgement? I'm unsure as once I stopped paying the arrangement via CCCS and went down the CCA route, every time a DCA came near me I just went down mentioned the debt was unenforceable. Is this acknowledgement?

 

From my credit file it looks like August 2007 was when the last payment was made.

 

HBSC - Arrangement to pay was with CCCS and it will be around August 2007 again. My credit file records defaults right they way through to when I last did a credit check Nov 2011.

 

Is there anyway of checking whether the debt is deemed acknowledged or is it just a wait and see?

 

So from the suggestion it would do me more harm than good to settle these? Is there no persuading them to remove the history of the credit for either full/partial settlement, particularly as they willfully admit they don't have lost the credit agreements?

Edited September 10, 2012 by franwilliams

[brokebutnotbeatn]

Both of these will be SB'd Sept 2013 if your last payment of August 2007 is correct. They won't remove the history but the defaults will disappear 6 years after placement and sometimes a DCA does not pick up and report the default at all. If you do have a DCA contacting you you could ignore for a while, send the proove it letter and then a CCA request, taking care not to acknowledge the debt. You couuld also SAR the OC asking for everything they hold on you (and not refereing a specific account). Then you wil have your ducks lines up. If there is no enforceable CCA it shouldn't get to court if you are on the ball and providing you have not acknowledged the debts they will become statute barred. F&F will be marked on your files for 6 years from the date the account is closed. There simply is no easy way to repair your credit file I'm afraid. No-one will remove the history but you can start to run a clean file and begin the repair process that will take years, not months.

[franwilliams]

Update: Lowells / Debt Collection Services have started sending red letters, so its probably time to start with the prove it letter? Do you have an appropriate letter?

[franwilliams]

Its now gone from Lowells to Red Debt Collections Services to Hamptons (I know they are all the same company) and they threatening to take legal action. Is the prove it letter (http://www.consumeractiongroup.co.uk/forum/content.php?428-General-debt-letter-if-you-know-nothing-of-the-debt) the best course of action?

[42man]

Be warned.....Lowells / Hamptons / BWLegal are sending out stat demands at the moment (which is usually followed up by a bankruptcy petition), especially so if the alleged debts are close to becoming statute barred. I think you need to send off CCA requests for both alleged debts for good measure.....if you already have then make sure you still have a copy of the original and the recorded delivery postal slip....

[franwilliams]

I would have to check my files, however I've previously put in a CCA request for the debt and the Halifax were unable to locate the original Credit Agreement and may have even gone as far as admitting to. So it worth skipping the prove it letter and proceeding to a CCA request?