Old debt(over 5 years) defaults in credit report

[gibs]

Hi everyone, looking for some advice from anyone who may be able to help.

 

I have 2 debts which I could not pay.

CAB advised me to wait for any court action to be taken,

that was over 5 years ago now (Dec 2005)

 

I have never been taken, or threatened with being taken, to court over these

and the debt has passed from collection agency to collection agency.

 

I had no way of attempting payment on these and now I believe they are statute barred due to 5 year period in scottish law.

 

I looked at my experian report and one shows defaults for over 5 years but the other shows only 27 months of default.

 

I have neither paid anything or confirmed anything on these 2 debts.

 

My 2 queries are,

 

when will the first one drop off my report and what should I do with the second.

 

The first is a Mint credit card and the secont a direct line loan.

 

I now have a job and can at least try and start repairing my credit

but do not know what the status of these debts is.

 

appreciate an help anyone can give.

[maroondevo52]

Hello and Welcome,

 

Both defaults will drop off your credit file on their sixth anniversary, if no payment or acknowledgement had been made on these debts in a 5 year period, they will be statute barred.

This won't stop debt collectors chasing you for payment but if you were to send them the 'Statute Barred' letter they should cease all collection activites.

[gibs]

Hi and thanks for the reply.

 

That's what I had thought after searching around.

 

What should I do about the markers on my Experian report?

 

For the second item they only show defaults for 3 years

and not way back to when I couldn't make payments?

[maroondevo52]

Do you mean the Default date on your file is from three years ago, and not 5 years when you stopped making payments.

A default should be registered within 6 months of your 3rd missed payment not several years later.

 

There's a link here to the ICO'S take on this............

 

http://ico.org.uk/~/media/documents/library/data_protection/detailed_specialist_guides/default_tgn_version_v3%20%20doc.ashx

[gibs]

Yes, that's exactly it,

I could not make payments from December 2005

but on my credit report the first default for the loan is only shown as 27 months ago.

 

I have had no correspondence with the loan company or the credit agencies this was passed through.

 

Could it be that they moved it on to a DCA and have only started putting defaults on my record

after the DCA's could not get payment?

[gibs]

Thanks for the ICO link.

According to their guidance (below) teven if it was sold or referred to a DCA

it would constitute a default.

 

So I am still unsure why it would only appear on my file

from 3 years back not circa Dec 2005.

 

I have definitely not spoke to or contacted the lender.

 

10 Indicators of a default

 

The following indicate that a breakdown has occurred in most types of

product (excluding those in the section on Exceptions at paragraphs 12-

15). This list is not necessarily exhaustive.

 

 The account has been referred to a collection agency or in-house

debt collection department.

 

11

Accounts should not be routinely filed as being in default where full

payments or those due under a rescheduled agreement are fewer

than three consecutive months in arrears.

 

 Accounts should normally be filed as being in default where those

payments due have not been received for six months.

[maroondevo52]

I'm not really sure what you can do when this happens, I've had it happen to myself.

[gibs]

On the ICO doc it states

The date of default

 

31 The date of default recorded on the file should be the date on which a

decision to file a default becomes effective according to the criteria

discussed in paragraphs 9 to 16. If a notice of intention to file a default is

served (see paragraphs 32 to 37), the default date should be the date the

notice becomes effective. When a default is filed after a genuine and

agreed variation in payment schedule has broken down, it should record

the date of that breakdown subject to the conditions described in

paragraph 21.

 

 

Would it be worth contacting them or the lending company to have the date of initial default agreed? IF not am I just looking at a 3 year wait for it to be removed(even if it is somehow paid off)

[dx100uk]

you need to write a letter ofcomplaint to the creditor

the

 

as per the ICO guideline you have already outlined

 

they should amend your CRa file.

 

dx