Creditors Stopped Chasing - What To Do Now?

[lowrie917]

I defaulted on the payments of a number of credit cards, loans and an overdraft back in 2008.

 

Managed to short settle a few of the debts and entered a DMP with PayPlan for the others - kept the payments up until I lost my job.

 

After a few months of being snooty and threatening, the 3 creditors I owe money to just all of a sudden went quiet. A few months later, I got a statement from one of them showing the account balance as ZERO.

 

Have heard nothing from any of them in about 2 years - except for a 6-monthly statement of account from Santander showing how much I still owe them. Other than that, no letters and no phone calls - absolutely nothing. I havent moved house or anything - it really did just go quiet all of a sudden.

 

Checking my credit file, I see these accounts being marked as 'D' (default) every month and the amounts outstanding (about #40k in total).

 

Has anybody else experienced this? Have these been written off as bad debts, and thats why they've stopped chasing me? If thats the case, can I get them removed from my credit report? Do I need to wait 6 years from the dat of default? Or wait 6 years from the date I last paid anything?

 

Obviously, I'm worried that they will blow the dust off these things (last payment was about 2 and a half years ago) and start chasing me again but I'm wondering if anybody has any experience of similar, or any thoughts on what might be going on and the best way to handle it?

 

Many thanks

[citizenB]

It could be they are planning on selling on the debt to a Debt Purchaser.

 

In which case you will probably receive notice from a different company at some point.

 

You might want to establish the exact date of the last payment - just so you can keep an eye on the statute barred time, clock.

 

Which is 6 years from the date of the first missed payment.. 5 years in Scotland.

 

Do you know if there are any default charges added to the account or perhaps some mis sold Payment Protection Insurance ?

[lowrie917]

> You might want to establish the exact date of the last payment - just so you can keep an eye on the statute barred time, clock.

>

The last payment to any of them was in November 2010.

 

> Do you know if there are any default charges added to the account or perhaps some mis sold Payment Protection Insurance ?

>

Yes, there was PPI. The PPI was refunded not long after the accounts went into default (and reduced the balance a little).

 

It just seems strange to be that they go quiet and stop chasing for over 2 years, but still update the default on my credit file.

 

I'm minded not to contact them (since AIUI this will prevent the debt becoming statute barred) but, at the same time, always looking over my shoulder for the demands to hit the mat one day.

 

I was actually hoping they'd have been sold on to debt collectors since that would give an opportunity to try and negotiate a short settlement figure but - as yet (2+ years on) - that hasnt happened yet.

 

Not really sure of the best approach to take. Sit tight and do nothing and hope they never blow the dust off it?

[citizenB]

If this were me, then I guess I would be keeping my head down.. although it looks like you have at least 4 years until SB.

 

You would only restart the clock if you were to acknowledge liability is owed.

[Guest]

do those periodical statements show money owed? if so, then rely on those.

they might think that you are still 'with' payplan as such despite not making any payments via payplan?

if as you say you want them to sell on then could just ignore all that they send and hope that they don't take legal action themselves. once sold on, then can negotiate if required. whatever's happened, the debt won't 'go away' for at least the next 4 years.

Edited January 3, 2013 by Ford