Paying off a very old debt

[Guest]

Hi all,

 

I am currently residing overseas and am soon to be moving back to the UK.

 

I struggled with managing my finances when I lived in the UK and regrettably left some debts behind, however I'm now in the position to pay these off (either fully or for reduced amounts).

 

The debts are around 8 years old so they have completely dropped off my credit history in the UK. I have a blank credit record.

 

The DCA/banks have stated that if I pay these off they will mark the credit record entry as 'settled'.

 

What I want to know is, if I pay these off, will the DCA/bank be putting a new entry on my credit record or would they simply attempt to 'update' the existing entry (which is no longer there).

 

My concern is that if they add a new entry then it may look bad when applying for credit in the future, as it might point out to anyone looking that the related debt is very old and therefore obviously defaulted at some point.

 

My other question is, would HSBC (for example) have me on a 'blacklist' of some kind, to avoid lending to me in the future, or is it all credit report based?

 

PS the debts are reasonably small and not statute barred as I maintained token payments during my time away.

 

Any thoughts on this ?

 

Many thanks

[BRIGADIER2JCS]

I'm afraid this makes little sense.

If the accounts have been removed from CRA files after 6 years paid or not they cannot be replaced.

If there has been no payments or unequivocal written acknowledgment of these debts in 6 clear years they are statute barred.

 

 

THESE DEBTS CANNOT AFFECT YOU AT ALL!! So why would you offer to pay now??

The debts cannot reappear so you are quite obviously being taken for a very long ride.

Ignore the DCAs and Creditors.

[Guest]

I'm afraid this makes little sense.

If the accounts have been removed from CRA files after 6 years paid or not they cannot be replaced.

If there has been no payments or unequivocal written acknowledgment of these debts in 6 clear years they are statute barred.

 

 

THESE DEBTS CANNOT AFFECT YOU AT ALL!! So why would you offer to pay now??

The debts cannot reappear so you are quite obviously being taken for a very long ride.

Ignore the DCAs and Creditors.

 

I have been making token payments by way of a standing order each month

[BRIGADIER2JCS]

I have been making token payments by way of a standing order each month

I cannot see any benefit in paying these debts off, once removed from the credit files they cannot return, and having a defaulted debt marked settled/satisfied visible on the file is as bad a straight forward default entry.

[sequenci]

The various creditors could sue if they wanted - and, of course, the resulting judgment would then sit on the credit file for a further six years. Whether or not they decide to sue is, of course, another matter.

 

I'm guessing that most of these (if not all) may have already fallen off the credit files anyway. I wouldn't automatically be inclined to repay them as a matter of course. My approach would be to move back, see who tracks me down and (if they are CCA regulated) make requests for information under the Consumer Credit Act to see if they have the paperwork in order - and take it from there.

[BRIGADIER2JCS]

ALL have already been removed from CRA files as per para 3 post1#.

[Bazooka Boo]

How long have you been making these payments by standing order for?

[Guest]

How long have you been making these payments by standing order for?

 

I started in 2006 when I joined CCCS debt management plan and kept these going when I moved away. The current balances are something like this:

 

500 - MCS (Really HSBC still have this)

1500 - MCS (HSBC)

7400 - HBOS sold this one to Capquest

1500 - Egg (Now with Barclaycard posing as someone else. Have not sold)

 

My aim is to keep my credit file clear so that it doesn't damage my mortgage potential when I move back.

 

I've been looking at other threads on here and it seems that entries can reappear on your file years later (I've seen two very recent threads about this).

 

Likewise, if I pay them off then I'm getting the impression that this can also make them reappear, although I haven't seen anything for definite. So it seems that the best advice is as per above...move back and see what happens.

 

Perhaps I could negotiate for them not to add a new entry if I pay them off.

 

Another problem that I've learned since reading some more on here is that the issuing of a default notice and a default actually being registered are two different things and they may not have registered one as I started with the token payments as soon as I received the notices...

 

Thanks for the replies so far.

[BRIGADIER2JCS]

I started in 2006 when I joined CCCS debt management plan and kept these going when I moved away. The current balances are something like this:

 

500 - MCS (Really HSBC still have this)

1500 - MCS (HSBC)

7400 - HBOS sold this one to Capquest

1500 - Egg (Now with Barclaycard posing as someone else. Have not sold)

 

My aim is to keep my credit file clear so that it doesn't damage my mortgage potential when I move back.

 

I've been looking at other threads on here and it seems that entries can reappear on your file years later (I've seen two very recent threads about this).

 

Likewise, if I pay them off then I'm getting the impression that this can also make them reappear, although I haven't seen anything for definite. So it seems that the best advice is as per above...move back and see what happens.

 

Perhaps I could negotiate for them not to add a new entry if I pay them off.

 

Another problem that I've learned since reading some more on here is that the issuing of a default notice and a default actually being registered are two different things and

 

 

they may not have registered one as I started with the token payments as soon as I received the notices...

 

Thanks for the replies so far.

 

 

 

ocs, the entries have been removed from the CRA files the debts can do you no harm now, creditors default debts prior to selling them on.

Also creditors will register a default if a payment plan is for "token" payments only.

I would recommend that you start to rebuild a credit profile now rather than worrying about these old debts.

As said a settled/satisfied default entry on your files Will Not help you at all.

 

 

Getting a mortgage in the UK is very difficult now, a new regime of questioning of applicants as to their ability to maintain payments in the event of interest changes and deep in inquiries into how the household income is spent.

 

 

You will need to have an absolute minimum of 3 years good to excellent credit management (often potential lenders will look to 5 years), and a stable residential and employment history. You will need to be on the electoral roll as well.

 

 

I cannot envisage the creditors making new entries at this stage.

[sequenci]

Once the defaults have fallen off, the *only* legal way that the debts can affect your file is if they successfully sue you for the money. If a creditor was to put informaiton back on your file after six years those actions would be unlawful - and you'll be able to challenge it. We can help with that.

 

The default should appear within six months of the default notice as far as I understand it.

[BRIGADIER2JCS]

Once the defaults have fallen off, the *only* legal way that the debts can affect your file is if they successfully sue you for the money. If a creditor was to put informaiton back on your file after six years those actions would be unlawful - and you'll be able to challenge it. We can help with that.

 

The default should appear within six years of the default notice as far as I understand it.

 

 

The debt will be removed 6 years from the default date, paid or not, the date of a default notice is not relevant.

[sequenci]

Sorry Brig, typo on my part (I suck at multitasking). I've edited the above.

[Guest]

Thanks for helping with this. I feel so much better now.

 

I take it that if they didn't record a default all those years ago and suddenly attempted to add one now then this would also be questionable on their part?

 

Regarding getting a mortgage...we would be looking at maybe a 60 - 80% deposit, but am still not holding out too much hope with securing anything. Will have to see what happens.

[Bazooka Boo]

I take it that if they didn't record a default all those years ago and suddenly attempted to add one now then this would also be questionable on their part?

 

Not only would it be very questionable it would be a very foolish petulant attempt which could result in you successfully suing them for damages (defamation)

[Guest]

Hi,

 

I was just having a look at this thread:

 

http://www.consumeractiongroup.co.uk/forum/showthread.php?429479-Eagle1977-VS-Barclaycard/page2

 

and it seems that creditors can apply defaults to very old accounts.

 

Even if you receive a default notice they may not actually apply a default to your account at that time, if you enter in to token payments. In the above thread, it seems that a previously dropped off account was re-added and defaulted when the token payments stopped many years later.

 

I guess there is no way that I can know for sure whether defaults were originally applied ? It seems that I can't do a SAR from overseas.

[Guest]

Just having a look at my old phone conversation notes...

 

One of them is confirmed as being defaulted and has now dropped off. So this one is Ok.

 

Another one is confirmed as being sold to Capquest and has now dropped off. Question: Would a default have definitely been recorded upon this debt being sold?

 

The final two are both with MCS (HSBC pretend DCA). Question: I am guessing that it is possible that these are classed as being 'in a payment plan' and therefore could have defaults added at some point in the future ?

 

Many thanks !

[BRIGADIER2JCS]

Hi,

 

I was just having a look at this thread:

 

http://www.consumeractiongroup.co.uk/forum/showthread.php?429479-Eagle1977-VS-Barclaycard/page2

 

and it seems that creditors can apply defaults to very old accounts.

 

Even if you receive a default notice they may not actually apply a default to your account at that time, if you enter in to token payments. In the above thread, it seems that a previously dropped off account was re-added and defaulted when the token payments stopped many years later.

I guess there is no way that I can know for sure whether defaults were originally applied ? It seems that I can't do a SAR from overseas.

 

 

Accounts are defaulted by the creditors prior to selling them off.

[Guest]

Thanks Brigadier. So that only leaves two debts in my worry basket now, the MCS/HSBC ones.

 

I wonder if they would reply to me via email if I ask for confirmation of default dates? I'm reluctant to speak to them on the phone.

[BRIGADIER2JCS]

Thanks Brigadier. So that only leaves two debts in my worry basket now, the MCS/HSBC ones.

 

I wonder if they would reply to me via email if I ask for confirmation of default dates? I'm reluctant to speak to them on the phone.

No reason that they should not do so as long as you can get past the inevitable security questions.

[Guest]

I asked on Twitter. HSBC 'don't do emails' as they are not secure so I have written up some letters to send off. My aim is to find out if any defaults have been registered - and when

[sillygirl1]

HSBC don't do emails because it leaves a trail - and they cannot keep up with a paper trail - (I know because I have a friend who worked for them, and got made redundant when their job was farmed out overseas).

[BRIGADIER2JCS]

I asked on Twitter. HSBC 'don't do emails' as they are not secure so I have written up some letters to send off. My aim is to find out if any defaults have been registered - and when

If possible use signed for post and check the date the letters are received.

[Guest]

Thanks, good idea, I will do.

 

I'm very tempted to call them instead but I know that wouldn't end well...

[Bazooka Boo]

I'm very tempted to call them instead but I know that wouldn't end well...

 

Unless you can record it?

[Guest]

I just spoke with them (and I recorded it, thanks for the idea).

 

They confirmed that defaults were definitely registered back in 2006 and they also confirmed what you guys already knew - and kept telling me - that once the account has dropped off your file, paying it off does not make it reappear.

 

So now I am free to pay these debts off without having to worry about my credit file being damaged.

 

I gave them my overseas address as the accounts were actually with Litigations department and so this will stop them from applying for CCJs.

 

This got me thinking...I'm going to write to all my creditors to let them know my overseas address. Is it worth me doing CCA requests to each creditor, just to make sure that that they are in fact, enforceable?