old Defaulted Barclays account?

[Cindersxo]

Hello,

 

I am planning to rent a flat with my bf and

 

 

I have found out that the letting agency is going to do a credit check.

 

 

I wanted to make sure that all is fine beforehand

 

 

I have just checked my credit through Equifax.

 

 

I have found out that my previous account with Barclays is defaulted and that I need to pay £200.

It was defaulted in January 2009 and I know that it drops off after 6 years so it would be in a couple of months - in Jan 2015.

 

Since I did not know about it, I would like to pay the money off asap as it is also not a big sum + it makes me really worried.

 

My questions is:

is it better to pay it off now or once it drops off in January?

 

 

I am afraid that if I pay now,

then they can start the count again and I will need to wait another 6 years for it to be removed from my credit file, which would be in 2021.

 

 

Is that a case?

 

If not, if I paid now, will it drop off in January anyway?

 

And my last question,

 

 

does any letting agency can see any credit check report of default accounts?

 

 

My second and current account (I only have two), created 3 years ago with HSBC has been perfectly managed by me.

 

Thank you for your help in advance!

[dx100uk]

paying the debt will not make the default go away

 

 

the whole account will VANISH regardless to payment

on the defaults 6th birthday.

 

 

doesn't mean the debt is not still owed mind!

 

 

what is the £200?

bank PENALTY charges?

[Cindersxo]

Hi,

 

Thank you for your quick answer. What, in your opinion, would be the best thing to do for me right now? To be honest, I would like to pay it off as soon as possible.

 

And when do you think it will disappear from my credit report checks?

 

And yes, they were penalty charges

[dx100uk]

I very much doubt anyone will goto court for a debt made from bank charges

 

 

as said already..it will VANISH on the defaults 6th birthday

regardless to what you do

 

 

dx

[BRIGADIER2JCS]

Any payment will restart the 6 year clock.

[Cindersxo]

Thank you for your answer. It is very different from a previous user and it makes me really confussed. Does that mean that it is better to pay it off right now then? I have read quite a lot about it and it does not seem like it is going to restart.

[BRIGADIER2JCS]

Thank you for your answer. It is very different from a previous user and it makes me really confussed. Does that mean that it is better to pay it off right now then? I have read quite a lot about it and it does not seem like it is going to restart.

For a debt to become statute barred (exempt from court action in England & Wales) there must not have been any payments made on the debt and no unequivocal written acknowledgment it six years.

 

 

Any payment made in the six year period restarts the 6 year clock.

As dx100 it will disappear on the 6th anniversary of the default date anyway.

[Cindersxo]

Hi,

 

 

Thanks. It will restart the clock for what exactly? Another 6 years for what/where? For me to pay off the debt fully? It will surely not restart the clock on my credit check as I have heard that the lender can only once default the same account, correct?

 

 

I think it is statue barred as I was not aware of it and have never seen any letter or information regarding my debt. I have not spoken with anyone from Barclays about it too. I have never made any payment back as I just did not know about it until yesterday.

[ims21]

Hello Cinders

 

Just to clarify...you asked a question about your credit file. The answer has been given by dx100uk.....the account will be removed from your credit file on the sixth anniversary of the default whether you pay it or not. It will stay on the report for the full six years from the default.....paying it will not get it removed early.

 

Statute barring is a completely different thing and only relates to whether a creditor can bring court action to recover the debt.

 

The default date is likely to be a few months after your last payment but to establish whether it is SB then you would need to find out when your last payment was.

[BRIGADIER2JCS]

Hi,

 

 

Thanks. It will restart the clock for what exactly? Another 6 years for what/where? For me to pay off the debt fully? It will surely not restart the clock on my credit check as I have heard that the lender can only once default the same account, correct?

 

 

The defaulted account is removed from the credit files PAID or NOT, what is being said is at this stage is it worth paying off the debt in full or with a reduced offer??

 

 

I think it is statue barred as I was not aware of it and have never seen any letter or information regarding my debt. I have not spoken with anyone from Barclays about it too. I have never made any payment back as I just did not know about it until yesterday.

 

 

If no payment/acknowledgment in writing has been made since the default date it will be SB ANY payment you make will be of no advantage to you and a "gift" to whoever owns the debt now.

[Cindersxo]

Thank you very much.

 

 

This is new to me so I get slightly confused.

 

 

No, I have not made any payments as I was not aware of the debt for all those years.

 

 

Also, some letters might have been sent but I moved to another country for 2 years and changed my place of living

(I had no access to any incoming letter to my previous place of living then as I was out of the country).

 

 

I am a bit surprised that no one has contacted me from Barclays for all those years (they have my family home address).

My only mistake was that while leaving the country I should have closed my account so that no penalty charges would be added.

 

It is written on the credit check report: "Default date: January 16 2009" and there is also some information that it was updated in May 2009. That's it.

 

 

My last payment should have been sometime in July 2008, so 6 months before they made it default.

[Cindersxo]

Hi,

 

 

Sorry to bother you but I have one more question. Can they issue me CCJ anytime before the default 6th anniversary?

[dx100uk]

they don't issue CCJ's

 

 

they would issue a claim form

 

 

then IF they win, it would be a CCJ.

but it being statute barred, that's a perfect and foolproof defence.

 

 

you are panicking about nothing.

[slick132]

Hi Cinders,

 

Let's focus on the main issue here. Before you are able to jointly rent a flat with your BF, a lettings agent will do a credit search.

 

If they do that, a default will show for £200 owed to Barclays. Not a CCJ, not a Bankruptcy - just a small amount that Barclays say is owed.

 

You can honestly say that you didn't realise this was owed. You can ask the lettings agent if they think this will affect you getting a property and if they think settling the account will improve your chances.

 

If you settle the debt now, the CRA records will be updated to show it's been cleared.

 

Regardless of whether you settle the debt or not, the Default will disappear 6 years after posting, ie Jan 2015 or slightly after.

 

It is possible that Barclays or a DCA could start court action before the debt goes Statute Barred but, for only £200, this seems unlikely.

 

I suggest that a practical approach is best. See what the lettings agent says and take it from there.

 

[Cindersxo]

Hi Cinders,

 

If they do that, a default will show for £200 owed to Barclays. Not a CCJ, not a Bankruptcy - just a small amount that Barclays say is owed.

 

 

 

Are they able to actually see it? I have heard that letting agents will only be able to see public credit data which is:

Electoral Roll data

CCJs

Bankruptcies

Insolvencies

 

They won't have access to any private financial performance data, so it seems they won't see my defaulted account.

 

 

I'm not 100% sure about that, though.

 

 

The thing is that even if I pay it off right now, they still would be able to see default until January 16th when it eventually drops off.

 

 

Plus, from what I was told here, my debt is already statue barred.

[ims21]

 

The thing is that even if I pay it off right now, they still would be able to see default until January 16th when it eventually drops off.

 

If they can see it then they would be able to see until it drops off in January.

 

Plus, from what I was told here, my debt is already statue barred.

 

It may be Statutory Barred. We would need more information to absolutely accurate.