SB Vs Default date

[JuryMan77]

Quick one.

 

A debt becomes SB at the 6 year anniversary of the cause of action (recent threads discussing this have been enlightening). However, how does this relate to a credit reference agency file?

 

For example (and this is made up of course), I make regular payments on a debt throughout 2005. 2006, I don't pay anything. The creditor reports these missing payments to the CRA's, and I'm marked with the naughty red dots. However, they decide not to issue a default, they just keep asking me for the money.

 

Perhaps they don't issue the default for a year.

 

The credit agencies would then argue that the data drops off your file at the 6 year anniversary of the default date, however (in my example) this would be seven years after my last transaction with the creditor.

 

Take it to the extreme - there is nothing stopping a creditor waiting 5.5 years to default a debtor - thereby extending the period of suffering on the CRA's files for a total of 11 years should my logic be correct.

 

Anyone else have any thoughts on this?

[BRIGADIER2JCS]

The guidance is a default is placed timely usually

within 6 months of the course of action, late default

can be challenged.

The individual must check the status of their credit

files it is no use complaining if things are missed.

[JuryMan77]

even so, that would mean that it's 6.5 years from the date of last transaction with the creditor. How would one go about challenging this with the CRA's?

[BRIGADIER2JCS]

You don't it must be the creditor who placed the deault

that must be challenged.

[dx100uk]

there is a mechanism for this exact scenario [certainly on experian]

 

if a creditor marker a file with late or what ever for 6 consecutive months

the 1 2 3 4 5 6 becomes an '8' default.

 

no futher markers are recorded.

 

thus thats one of the reasons where the '6mts' rule on registering defaults come from.

 

and

then ofcourse this happens:

All references to a defaulted debt must be removed from your credit files after 6 years has passed from date of default,

whether paid off or not.

This is so that someone who continues paying something even after 6 years from default should not be at a disadvantage

to someone who pays nothing after default and ends up with a clean file after 6 years.

 

dx

[citizenB]

Many DCAs will argue that limitation accrues from the time when the "default notice" is issued. It does not.

Limitation clock starts ticking from when the payment is due and not paid not when they send a default notice.

We see often that CRA entries will date 5 or 6 months ahead of when the payment was missed.

People need to be sure that they aren’t being hoodwinked and that the DCA is extending limitation so they can sue when they are not allowed to.

The Court of Appeal in the following said...

Swansea City Council v Glass.

COURT OF APPEAL, CIVIL DIVISION

I am fortified in this view by consideration of what could result if the appellant council were right. Upon their argument, the local authority could delay service of a demand indefinitely. Then, having served their demand long after the works

were complete, they would have a further six years in which to take proceedings in the High Court or the county court.

 

In Coburn v Colledge [1897] 1 QB 702 at 709, [1895-9] All ER Rep 539 at 542 Lopes LJ said:

'There is nothing in the section, so far as I can see, inconsistent with the view that the cause of action arises when the work is completed. It was urged that, if this construction were adopted, a solicitor would have a shorter time during which he may abstain from bringing his action for work done than the rest of Her Majesty's subjects. That may be so; but on the other hand, if the plaintiff's contention is correct, the solicitor may abstain from delivering his bill for twenty years, and then at the end of that time he may deliver it and sue after the expiration of a month from its delivery. It seems to me that that would be a very anomalous and inconvenient result.'

Full judgment attached

SB debts - Swansea City Council.pdf

[davehsug]

What about the situation where a default has previously been issued & the creditor is paying via a DMP. Is the last payment date the SB date or the 1st missed payment e.g. 1 monther after the final payment?

[dx100uk]

SB and credit files should not really be 'linked' together ideally.

they never correspond though they should.

 

the sb date will always start from the last finacial transaction or written ack that is signed by the debtor.

 

as posted earlier:

 

All references to a defaulted debt must be removed from your credit files after 6 years has passed from date of default, - whether paid off or not.

 

This is so that someone who continues paying something even after 6 years from default should not be at a disadvantage

to someone who pays nothing after default and ends up with a clean file after 6 years.

 

dx