been paying 2 DCA's on card debts for years - want a mortgage soon - help

[Yorkshiretea82]

Hi All

I've recently come across this forum and I'm hoping you can provide some assistance.

I have two credit card debts, both with debt collection agencies.

The first one has a current balance of £3,815, with the credit card opened in 2012 and a default date of 16th August 2018.

I've been making a £10 monthly payment for several years against this account.

The second debt is for £8,015, from a credit card opened in January 2008, with a default date of 30th August 2018.

Again, I've been making regular monthly payment of £30 for a number of years.

Although these defaults will be removed from my credit file in August 2024, they are currently causing issues, as the Credit Karma app shows I am 339% over my credit limit of £3,500, which is calculated from two credit cards I have with zero balances.

I'm aiming to secure a substantial mortgage, and after reading your forum, I'm considering whether it's worth asking for a debt discount or if I should first send them a CCA (Consumer Credit Agreement) letter to see if they can they produce the CCA information.

These debts have been passed on to multiple debt collection agencies over the years, and I assume the amount they paid for them should be relatively low

.If I were to offer a debt discount, what would you recommend offering?

I just want to sort this mess out before applying for a bigger mortgage. 

Any advice or insights would be greatly appreciated.

Thank you

[Bazooka Boo]

Hi welcome.

Who are the DCA's.

By paying them anything, you are simply running the statute-barred clock to infinity and you'll never be rid of these.

If the defaults auto drop off your file in August, then wait until after then before applying for a mortgage, and make sure you check your credit file with Experian or Equifax to check your credit file is clear.

It is pointless dealing with DCA's, and IMO you should stop all payments to them. Who agreed on the amount you are paying them each month? Bet it wasn't you.

Who were the original creditors and when did you take these cards out?

 

DO NOT offer these creatures anything, and STOP paying them.

 

[dx100uk]

yep great advice 

read a good few threads in the debt selfhelp forum where i've moved your threads to.

once the defaults reach 6yrs the WHOLE account vanishes (doesn't mean it might not still be owed mind!!)

DONT EVER give anyone full access (your copy) to your credit file .

then they wont see the old removed debts.

thread title updates

stop being a DCA cash cow!!

dx

 

[unclebulgaria67]

I am presuming that you will wait until debts no longer showing on your credit record, before applying for any mortgage. Even then, you would have to disclose debts to mortgage companies when applying.

You could send CCA requests to the DCA's to see what they respond with. It may help you negotiate full and final settlement offers, if they were not able to supply copies of the CCA. But even if you settled before 6 year anniversary of default  they will still show until 6 year date is reached. 

I would suggest contacting 'whole of the market' mortgage brokers who are independent, so therefore have more mortgage companies and product options.  Get advice about what to do about tackling such debt issues before applying for mortgages. 

[dx100uk]

3 minutes ago, unclebulgaria67 said:

Even then, you would have to disclose debts to mortgage companies when applying.

not once the defaults have removed them you don't!

what they cant see cant hurt them.

dx

 

[unclebulgaria67]

Part of mortgage application is declaration  on financial position including debts. This is not restricted to just what is on credit record.

Hence suggestion to get advice from independent Mortgage Advisors.

[Yorkshiretea82]

Thanks everyone for your quick responses and advice. I don’t plan to apply for another mortgage until June 2025. 
 

I know by continuing to pay the DCA the SB tick continues, but I did spend the money so I do owe the debt. Wouldn’t stopping the payment plan with them incur 2 more new defaults ? 
 

I think I want to negotiate a discount on the debt with them so I can apply for a mortgage been totally debt free. 

The DCA’s are Lowell 8k and 3.8k with Moorcroft 

[unclebulgaria67]

Cannot default again, once already defaulted.

You entered into an arrangement to pay towards defaulted debt.  If you stopped paying the DCA's, then Lowells in particular might issue Court claim.

Moorcroft don't normally buy debts. They collect on behalf of Banks who still own the debt. So you may have to ask Bank if they would settle for a reduced amount.

Is it worth asking for SAR's to get hold of all details including statements. E.g. excessive fees/charges applied. Did you tell Banks about any financial hardship at any time?

[dx100uk]

whom are moorcrofts stated clients?

i'd stop paying both of them

you are being had blind.

6 hours ago, Yorkshiretea82 said:

but I did spend the money so I do owe the debt.

throw the 'morality' card out the window.!!

they did when the dca's enrolled you in their free cash cow milking parlour.

you do realise NONE of the money you pay a DCA ever goes off the supposed 'debt' the OC wrote that off years ago when they sold the debt on for 10p=£1......straight down the pub or pays for their staff holidays with you free money.

6 hours ago, Yorkshiretea82 said:

think I want to negotiate a discount on the debt with them so I can apply for a mortgage been totally debt free.

why? the debts wont show once the DN reaches it's 6th b'day. and even if you do, they'll only mark them as partially settled anyway.

a DCA IS NOT A BAILIFF

and have

ZERO legal powers on any debt - no matter what it's type.

you seriously need to wise up and get reading.

Debt management and Debt self-help - Consumer Action Group

dx

[London1971]

None of this will have any effect whatsoever on your mortgage. Once it has dropped of your Credit file no mortgage company needs to know anything, and there is no way of them finding out.  After a default is a few years it's unlikely to be taken into account by any  mortgage lender anyway, Providing you haven't accumulated any fresh one's.  

You'd be utterly bonkers to pay them anything at this stage.

[unclebulgaria67]

But with any mortgage application you have to declare any debts and any financial obligations which affect the ability to repay the mortgage. 

Failure to declare could have consequences down the line, if the OP did not pay the debt, a CCJ was  obtained by the debt owner and the mortgage company became aware of this.  

Before the OP decides on best course of action, they should speak to an Independent Mortgage Advisor.

[dx100uk]

mortgage companies dont give a stuff about getting a CCJ post lending. none of their business!

same as its none of their ruddy business you have an old debt from 10-20-30 yrs ago you've been blindly paying that they can't see.

people being mugs and getting mugged by paying old debt is not a lending criteria ....not their problem.

however what is is if people believe there is some mystical magical morality wand that a DCA wavs over people that makes them blindly cough up.

simply amazes me in this day and age.

if everyone stopped paying DCA's their business would collapse overnight

the same as why everyone going for a mortgage blindly handsover a full printout of their credit file to a broker/IFA or a lender so they can FIND bad things and scam them out of more fees or a higher interest.

people throw the fllippin morality cards out the window and stop believing what nicey nicey Payplan, stepchange, CAB/NDL etc write..it's utter garbage you are reading and then passing on as correct advice....

dx

 

 

 

 

[London1971]

DX is right it's just numbers on a spreadsheet and mortgage companies literally don't care , what happened 6 years ago, and they don't care what happens while you have the mortgage providing you can make the payments.

In fact none of the DCA's,  Stepchange etc care about you personally, they just care about how much money they can make off you. The money that you owed all those years ago was a tax write off for a large multinational corporation. DCA's are companies that make millions a year.

That's why the morality card is nonsense