massive debt caught up with me (scotcall)

[doodlez]

hi,

 

ive come home today to a letter from scotcall, for a debt of £10276!!!

eeek was hoping that one wouldnt find me!

 

ive checked my credit file. this loan was taken in jan 2007 as a consolidation loan.

 

it paid off a credit card, paid for a new car and also paid off another hsbc loan.

 

now the loan that scotcall are wanting me to pay doesnt seem to appear anywhere on my credit file.

 

the one i paid off with this loan does,

hence why i know when the loan was taken out.

 

. so this loan started jan 2007,

 

i paid it for 6 months until i had big probs and couldnt afford the repayments.

 

in september 07 i moved house and didnt hear anymore about thios loan until i got this letter today.

 

they want payment in 7 days or they will send someone round.

 

im just after some advice on what to do?

 

ive heard about some 6 year thing?

 

its almost 6 years since i have heard anything about the loan

so would it be wise to just sit on it and hope for the best

or should i try and arrange some kind of payment with them.

 

ive been doing so bloody well in clearing my debts and then this turns up!!!

 

any advice gratefully recieved

[havinastella]

Hi and welcome to CAG.

 

This is a phishing letter, hoping you will phone them. DON'T.

 

My advise is just ignore everything you receive unless it's official stamped Court papers.

 

As you say, it's nearly Stat barred (will be if you live in Scotland)

 

Should anyone ring you, refuse to answer security questions, and wait for the debt to become SB!

[BRIGADIER2JCS]

The ''six year thing'' is The Limitations Act 1980 regarding the pursuit of debts that have had '' No payment or unequivocal written admission of liability in 6 clear years'' the debt then cannot be enforced in court but is still open to collection activity until the debtor informs the creditor in writting that the debt is statute barred and they will not be paying. (source OFT Guidance on Debt Collection 2003/2012).

 

Defaulted account are removed from credit files after 6 years paid or not so a check of your files will give an indication of the status of this debt.

[doodlez]

Defaulted account are removed from credit files after 6 years paid or not so a check of your files will give an indication of the status of this debt.

 

^ this is what is confusing me. i used this loan to pay off another loan. the loan that i paid off is showing on my credit file as setteld on 16th jan 2007. that is also the date that the loan in question was taken out. so im a bit confused as to why the settled one is showing but the defaulted one is nowhere to be seen? any ideas on that?

 

also, as im approaching the 6 year time frame, how likely is it that they will take this to court?

[BRIGADIER2JCS]

Which CRA are you using??

[doodlez]

experian. it says i have a total outstanding debt of £674, obviously thats wrong because i know this debt is def outstanding

[BRIGADIER2JCS]

So it's not settled then??

[doodlez]

according to my credit report

 

i have £674 total debt outstanding.

 

thats just several little debts.

 

the letter ive got today is regarding a hsbc loan taken out on 16th jan 2007 that IS outstanding.

 

i literally made 4 payments on it and thats it.

 

in june 2006 i had taken out a loan with hsbc for some reason or other and used the jan 2007 loan to pay that off.

 

its the loan thats not been paid (over 10 grand) that isnt showing at all on my credit report.

 

the one i took out in 2006 and then paid off in jan is showing as settled which it is settled cos it was paid off the day i took the big loan out.

 

i cant for the life of me understnd why such big debt isnt showing on my credit report

[dx100uk]

now that is puzzling?

 

try noddle as well

 

dx

[unclebulgaria67]

according to my credit report i have £674 total debt outstanding. thats just several little debts. the letter ive got today is regarding a hsbc loan taken out on 16th jan 2007 that IS outstanding. i literally made 4 payments on it and thats it. in june 2006 i had taken out a loan with hsbc for some reason or other and used the jan 2007 loan to pay that off. its the loan thats not been paid (over 10 grand) that isnt showing at all on my credit report. the one i took out in 2006 and then paid off in jan is showing as settled which it is settled cos it was paid off the day i took the big loan out. i cant for the life of me understnd why such big debt isnt showing on my credit report

 

So this new consolidation debt that you stopped repaying in 2007, will become statute barred within the next 5 months.

 

Think I would keep my head down and keep an eye on the post. Scotcall may send a self employed collector around to see whether you live at the adddress. So it may be advisable for people in your household not to answer the door to anyone and then start answering questions about who they are. If someone does turn up asking whether Mr X lives at the address, then unless you expecting a parcel, they should give a blank expression and never heard of them.

 

For that amount of debt, you don't really want to get into communications at this stage. If Scotcall are acting for a creditor that likes to use bankruptcy, then this is a risk. You might therefore want to avoid communication with them, as they may then spend more time on your file and realise that statute barred status is coming up.

[BRIGADIER2JCS]

Check Equifax and Noddle but don't rely too much on the Noddle data.

[doodlez]

thanks guys. i shall just sit on it and hope for the best. if they do start threatening court action should i try and make an arrangement with them before it actully gets to court? also someone mentioned creditor applying for bankruptcy? how does that work? is that a big problem for me?

[BRIGADIER2JCS]

Bankruptcy- the creditor issues a ''statutory demand for payment'' which you would have to apply to a court to have it set aside, if this does not happen a BR Petition is served on you and if the petition succeeds officials are appointed to oversee your financial affairs.

 

The debt must be £750.00 or more.

 

Simplified version take a look on the net for more information.