What's the worst that can happen if someone didn't pay credit card?

[jjtech]

Hi,

My good friend used to live in the UK sometime ago. He left a year ago to take care of his sick family member and left unpaid credit card behind him (around 4k). Now he has to come back. I've got work sorted out for him and he can stay in my place.

 

Now my question is, what is the worst that can happen to him? I know nobody will stop him at the airport, or arrest him, but:

1/ will he be able to open another bank account in different bank?

2/ Will they take him to court and take it away directly from his wages if he doesn't pay it (right now it's not an option)

3/ what else can happen to him?

 

Thank you in advance,

JJ

 

PS. maybe those issues were explained somewhere here before but I couldn't find it. If so please give me the link to the post with explanation

[renegadeimp]

1. Yes.

2. Only in extreme cases. Cc debts can take a long time to get to that point.

[Lokur]

He should check his credit file to see if a default has been filed.

 

Also does he intend to repay his debt?

[andydd]

As you asked, worst that could happen is:-

 

1. Trashed credit rating which can efftect loans, mortgages, renting, even getting a mobile phone and in some situitaions..it can effect jobs, some jobs check criminal records and credit rating.

 

2. A CCJ againt you and possible enforcement action, bailiffs, attachment of earnings, a charge on your property.

[BRIGADIER2JCS]

Hi,

My good friend used to live in the UK sometime ago. He left a year ago to take care of his sick family member and left unpaid credit card behind him (around 4k). Now he has to come back. I've got work sorted out for him and he can stay in my place.

 

Now my question is, what is the worst that can happen to him? I know nobody will stop him at the airport, or arrest him, but:

1/ will he be able to open another bank account in different bank?

2/ Will they take him to court and take it away directly from his wages if he doesn't pay it (right now it's not an option)

3/ what else can happen to him?

 

Thank you in advance,

JJ

 

PS. maybe those issues were explained somewhere here before but I couldn't find it. If so please give me the link to the post with explanation

He may be able to get a basic account, but even that has become more difficult.

 

 

What action the card issuer takes will depend much on the amount outstanding.

 

 

CC providers may default an account after 2-3 missed payments and if it remains unpaid and no arrangement to

pay is put in place they are likely to sell the debt on.

[jjtech]

1. Yes.

2. Only in extreme cases. Cc debts can take a long time to get to that point.

 

Thank you for your quick answer. I'm wondering how long in would take to go to that point ?

[renegadeimp]

Completely depends on either the Creditor or the DCA. It could be months, it could be years, it might never happen.

[jjtech]

He may be able to get a basic account, but even that has become more difficult.

 

 

What action the card issuer takes will depend much on the amount outstanding.

 

 

CC providers may default an account after 2-3 missed payments and if it remains unpaid and no arrangement to

pay is put in place they are likely to sell the debt on.

 

The amount outstanding is 4,5k. I don't know if this amount is enough for them to go through the court process?

[renegadeimp]

They go to court over 100 sometimes. They prob would go to court over 4.5k as they are very greedy, but it depends if the amount contains charges/insurances etc. Some Creditors and DCA's will try their luck, but the majority are reluctant to go in front of a court when the debt is inflated, as they know debtors can put in defences and the creditor will have to either discontinue or provide proof.

[sequenci]

He may be able to get a basic account, but even that has become more difficult.

 

 

Has it? How? And do you have a quantifiable source?

[BRIGADIER2JCS]

Thank you for your quick answer. I'm wondering how long in would take to go to that point ?

How long is piece of string situation, some move fast some don't.

[jjtech]

He should check his credit file to see if a default has been filed.

 

Also does he intend to repay his debt?

Thanks for advise - he has to be here to check it probably, or can he do this over the phone?

 

And as far as I know he can't pay it off, at least not now, so I'd say that for the next 6 - 12 months he wants to fly under the radar.

Our main concern is if they can get to his wages somehow? I've got a permanent job for him, but it's not much money - I'm wondering if they can somehow get a court order and make him pay it off.

 

Also we just calculated how much he interest + repayments he paid on the card between 2010 and 2013 and it amounts to over 5k. I don't know if it makes any difference.

[jjtech]

As you asked, worst that could happen is:-

 

1. Trashed credit rating which can efftect loans, mortgages, renting, even getting a mobile phone and in some situitaions..it can effect jobs, some jobs check criminal records and credit rating.

2. A CCJ againt you and possible enforcement action, bailiffs, attachment of earnings, a charge on your property.

 

I'm just wondering if by enforcement you mean for example: "getting to his wages by court order and force him to repay it".

He's no property and employer doesn't care about the credit rating, so this is not a concern.

[renegadeimp]

A court order and AOE is a LONG way off. Theres a whole lot of other things that have to happen first.

[jjtech]

They go to court over 100 sometimes. They prob would go to court over 4.5k as they are very greedy, but it depends if the amount contains charges/insurances etc. Some Creditors and DCA's will try their luck, but the majority are reluctant to go in front of a court when the debt is inflated, as they know debtors can put in defences and the creditor will have to either discontinue or provide proof.

He was paying this card for nearly 3 years and paid over 5k on it in total (last 2 years it was around 120/month) - so there is some proof that something was paid. I think that most of it are charges and interest.

[renegadeimp]

Reclaim charges for a start. Did he ever notify the CC's to say what was going on?