SB in Scotland /CRA Defaults

[bluebear1872]

Excuse me if I seem a bit thick here.

 

Iv been doing some reading on what constitutes a statute barred debt in Scotland

And as far as I can see after 5 years of no payment or admission of the debt under the prescriptions and limitations act

the debt is not only deemed unenforceable but actually ceases to exist.

 

Is this correct?

 

Now my next point.

 

Assuming I'm correct in the above and the debt ceases to exist.

 

Can a CRA still show the debt as being in default after the 5 year period.

 

Or do they have to remove it.

 

I believe that after 6 yrs I drops off anyway.

 

But I'm just curious to find out if a 5yr old debt in Scotland

can be removed for being recorded on the Cra files

[Crocdoc]

Your are perfectly correct about SB debt in Scotland.

 

Regardless, Credit reference agencies will still show the default for 6 years.

[bluebear1872]

Ok that's what I thought.

 

Now what I'd like to know is would there be grounds to challenge the CRAs legally to remove these after the five year limit

because in the eyes of the law (Scotland) these debts cease to exist.

 

Therefore arnt the Cras being detrimental to your financial wellbeing by reporting a default on something that no longer exists

[bluebear1872]

*bump*

[maroondevo52]

Ok that's what I thought. Now what I'd like to know is would there be grounds to challenge the CRAs legally to remove these after the five year limit because in the eyes of the law (Scotland) these debts cease to exist. Therefore arnt the Cras being detrimental to your financial wellbeing by reporting a default on something that no longer exists

 

Hi,

 

I know and agree with what your saying but I'm sure if this was going to be challenged, someone would have done it by now.

[bluebear1872]

Maybe so.

 

Or it may well be that no one has considered challenging it Either way

 

I find it ridiculous that a CRA will allow debts to be shown as defaulted

when in actual fact they legally do not exist anymore

Edited November 30, 2012 by bluebear1872

[maroondevo52]

I can't find anything of much interest regarding the legalities of this issue, seems as these CRA's are English based the 6 years applies across the board, dosen't seem right.

[bluebear1872]

It doesn't does it. This might be worth a bit more investigation Or maybe it needs someone who is in Scotland between the five and six year mark to challenge the CRAs on this point

[IdaInFife]

The act is for the bringing of an action .......not when it disappears

[bluebear1872]

Ok I get that.

 

But my point is if this act states that after 5yrs the debt will cease to exist then what gives the CRAs the right to continue reporting it.

 

Surely a debt that no longer exists in the eyes of the law(scotland)cannot be reported in such a way that it has a detrimental affect on your financial record

[dx100uk]

you are doing what most people do

 

linking anything to do with statute barring with the way your

financial history is recorded by credit reference agencies.

 

there is NO LINK.

 

your 'accounts' will show on the cra systems for:

6yrs from settled

6yrs from default date [paid or not]

6yrs from YOUR last financial transaction

 

whichever is the soonest.

 

statute barring has nothing to with what is/is not on your cra file.

 

dx

[bluebear1872]

Which emphasises my point. After 5 years the prescriptions and limitations act deems the debt to have been extinguished and this means it no longer exists.

 

How can a CRA Report the financial history of a debt that doesn't exist

I can understand why in English law they can as after 6 years it still exists but is just deemed uncollectable

But what I'm specifically asking about are debts covered by the debts covered by the prescriptions and limitations act in Scotland Once the debt ceases to exist surely the cra is obliged to stop reporting it

[BRIGADIER2JCS]

IF the account has been defaulted it is removed after 6 years in England and five in Scotland and cannot be repoted on further.

 

Yes the reporting must continue even If the criteria for SB are met no payment

or acknowledgment in writting has not been made, but the default period has time to run.

 

The default date is as dx100 said the important date fo removal of the cra entries.

[bluebear1872]

Thanks for replying and yes I do understand what your saying. But I fear your missing my main point

 

Under the prescriptions and limitations act(scotland)

Not only does the debt itself become unenforceable. The debt ceases to exist.

now if the debt no longer exists in the eyes of the law then why is it allowed to be reported on your credit file. I'm sorry if I'm being thick here But surely of something no longer exists then it cannot be reported on

[dx100uk]

and you are missing ours....

 

your credit file is a record of your credit history.

 

just because a debt is SB, it does not mean it should not be there.

 

if your debt has updates follow the 5yrs,

then i suggest you write to the CRA's

 

but i bet i know the answer.

 

and its prob already been asked in their FAQ's.

 

i refer you to post 11

 

dx

[BRIGADIER2JCS]

Has the default still go time to run, they continue to be posted until the 5th anniversary of the default date!

[bluebear1872]

Ok now I'm really confused. Brig you say they stop reporting on the 5th anniversary of the default but dx states that they continue to report for 6yrs irrespectively Who is correct?

I have a couple of defaults last paid in April 2009. So the 5yr mark would be 2014

[BRIGADIER2JCS]

ok a debt becomes sb in Scotland after 6 years no pyment or written acknowledgement made, but the default date will up to 6 monhs after the last payment so the default entry remains until the life of the default ends.

 

if any payment has been made at any time in the 5 year period the''clock'' is restarted and reporting contiues.

[bluebear1872]

Sorry I don't follow. The prescriptions and limitations act state that after a period of five years of no payment or admission of the debt it not only becomes uncollectable but the debt itself is extinguished So how can it be 6yrs till it then becomes SB in Scotland. I appreciate that that defaults will remain for a period after the five year mark But the debt itself no longer exists

 

Sorry if I'm confusing things here I'm just trying to get it straight in my head how it works as regards a debt for a Scottish resident and the reporting on the cra files for that debt

[maroondevo52]

bluebear, I think the Brig meant to say 5 years

 

I know what your saying, as I said before I think the 6 year on your credit file is just applied across the board in the uk, don't know if anyone has tried to do anything about it, maybe you should, I wouldn't hold my breath though.

[BRIGADIER2JCS]

THE DEBT CAN ONLY BE REPORTED ON IF IT IS STILL ''LIVE'' IE ACKNOWLEDGED, OR THE DEFAULT IS ACTIVE.

OTHERWISE IF REPORTING CONTINUES YOU MUST MAKE FORMAL COMPLAINT TO TE DATA CONTROLLER OF THE COMPANY PLACING THE ENTRY SEND COPY OF THE LETTER TO THE DC OF THE CRAs.

[bluebear1872]

ah ok that would make sense lol my appologies

[bluebear1872]

ok yes, thank you brig that makes more sense to me now