CCJ 8 years after Default?

[marcander]

Hi,

I had a loan taken out in 2000 which was defaulted in 2002. I started in 2002 making payments of £5.00 per month and am now paying £80.00 per month on informal/temporary payment arrangements. The original lender was taken over by S@nt@nder last year and they passed the collections to Moorcr@ft who sent me a letter in February saying that I must pay in full within 5 days or contact them, it also mentions court actions etc. There is however no mention of the current £80.00 per month arrangemnt that I made with the original lender. This annoyed me somewhat as I thought that if S@nt@nder took over the debt then they should honour the existing informal payment arrangement.

Anyways, I sent a CCA request to Moorcr@ft in February and I received a letter from them saying they had passed the request back to their clients and would not be collecting anything until either the docs were sent out or notification otherwise.

My February payment of £80.00 was due in the middle of the 12+2 days waiting period for the CCA request so I paid it online on Moorcr@fts site.

Today is 15 working days from when Moorcr@ft received and acknowledged my CCA request and I have received nothing. Neither the deafult nor any reference appear on my credit files as they have dropped off after the 6 year rule.

My question is this, if I receive no CCA docs or they write and tell me that they dont have them then I understand the debt is in dispute. If I then dont make any further payments can they go for a CCJ? I am assuming that they cannot as they would not have the docs to do so. Also is there a time limit on when a lender can go for a CCJ?

What would happen also if I were to receive a CCJ? My understanding is that a default drops off your credit file after 6 years whether paid off, unpaid or like me, still paying. Experian also told me that all reference to that debt and its account must stay off your credit file and cannot be re-instated so what would happen to the credit file if I were to receive a CCJ? On the one hand a CCJ surely would be put on my credit file, but on the other hand after 6 years the default and any information regarding the debt must be removed from the credit file.

My understanding from the Information Commissioners office is that it is unfair that someone paying, or even trying to pay off a debt (such as me) should be at a disadvantage against someone who paid nothing at all.

In the case of someone having a default issued on the same date as mine and then paying nothing at all, they would have their credit file totally cleaned of that debt and account after 6 years, whereas if I am still paying after 8 years and then decide not to pay or reduce my payments and then received a CCJ 8 years after default and it was put on my file then I am at a disadvantage because if so, then the CCJ would be there for a further 6 years.

So, is it likely that a creditor could or would go for a CCJ on an 8 year old debt? Is there a time limit on taking court action (CCJ) on a debt 8 years old that is not statute barred?

I kmow I am splitting hairs here a bit, but I would like to know exactly where I stand before deciding on my next step.

So, any help gratefully received,

regards

M

[topcatistop]

Re: CCJ 8 years after Default?

Hi Marcander, I came across this thread as I am in a somewhat similar position that you were at the time of writing. It's a shame that no body has been able to reply to you. I just wondered what has happened to you since this regarding the CCJ?

Did they ever issue one? I have a default on my credit account from British Gas, I only recently found out about it. I'm about to hit the 6 year drop off period so I'm hoping it will just disappear, but I also wondered if a company can raise a CCJ at any point after the default has gone?

If any bodies knows the answer I'd love to find out!

Thanks,

T

Hi,

I had a loan taken out in 2000 which was defaulted in 2002. I started in 2002 making payments of £5.00 per month and am now paying £80.00 per month on informal/temporary payment arrangements. The original lender was taken over by S@nt@nder last year and they passed the collections to Moorcr@ft who sent me a letter in February saying that I must pay in full within 5 days or contact them, it also mentions court actions etc. There is however no mention of the current £80.00 per month arrangemnt that I made with the original lender. This annoyed me somewhat as I thought that if S@nt@nder took over the debt then they should honour the existing informal payment arrangement.

Anyways, I sent a CCA request to Moorcr@ft in February and I received a letter from them saying they had passed the request back to their clients and would not be collecting anything until either the docs were sent out or notification otherwise.

My February payment of £80.00 was due in the middle of the 12+2 days waiting period for the CCA request so I paid it online on Moorcr@fts site.

Today is 15 working days from when Moorcr@ft received and acknowledged my CCA request and I have received nothing. Neither the deafult nor any reference appear on my credit files as they have dropped off after the 6 year rule.

My question is this, if I receive no CCA docs or they write and tell me that they dont have them then I understand the debt is in dispute. If I then dont make any further payments can they go for a CCJ? I am assuming that they cannot as they would not have the docs to do so. Also is there a time limit on when a lender can go for a CCJ?

What would happen also if I were to receive a CCJ? My understanding is that a default drops off your credit file after 6 years whether paid off, unpaid or like me, still paying. Experian also told me that all reference to that debt and its account must stay off your credit file and cannot be re-instated so what would happen to the credit file if I were to receive a CCJ? On the one hand a CCJ surely would be put on my credit file, but on the other hand after 6 years the default and any information regarding the debt must be removed from the credit file.

My understanding from the Information Commissioners office is that it is unfair that someone paying, or even trying to pay off a debt (such as me) should be at a disadvantage against someone who paid nothing at all.

In the case of someone having a default issued on the same date as mine and then paying nothing at all, they would have their credit file totally cleaned of that debt and account after 6 years, whereas if I am still paying after 8 years and then decide not to pay or reduce my payments and then received a CCJ 8 years after default and it was put on my file then I am at a disadvantage because if so, then the CCJ would be there for a further 6 years.

So, is it likely that a creditor could or would go for a CCJ on an 8 year old debt? Is there a time limit on taking court action (CCJ) on a debt 8 years old that is not statute barred?

I kmow I am splitting hairs here a bit, but I would like to know exactly where I stand before deciding on my next step.

So, any help gratefully received,

regards

M

[Amethyst]

Re: CCJ 8 years after Default?

Blimey that post was back in 2010, I don't think we were as up on such matters then.

A court claim can be brought at any time, the credit file is unfortunately irrelevant, however, if you haven't paid or acknowledged the debt in the past six years, then the debt could be statute barred and thus the lender (or any DCA it was sold on to) wouldn't be able to enforce it.

If you defaulted a debt, then were on a DMP / reduced payment plan etc or just making random odd payments for a few years before stopping paying, then it could feasbily fall off of your credit file a couple years before any court action is bought.

[FlamingParrot]

Re: CCJ 8 years after Default?

Hi Marcander, I came across this thread as I am in a somewhat similar position that you were at the time of writing. It's a shame that no body has been able to reply to you. I just wondered what has happened to you since this regarding the CCJ?

It was missed somehow, sadly I wasn't around in 2010 but I think I can answer your question.

Welcome to LB by the way

Did they ever issue one? I have a default on my credit account from British Gas, I only recently found out about it. I'm about to hit the 6 year drop off period so I'm hoping it will just disappear, but I also wondered if a company can raise a CCJ at any point after the default has gone?

If any bodies knows the answer I'd love to find out!

First of all, a company cannot just raise a CCJ, they have to follow a process to obtain one, starting with a court claim, which you have the opportunity to defend. :thumb:

The default date that shows up on your credit file is irrelevant for the purpose of limitation. A debt would be statute barred when there's been no payment or written acknowledgment in the last 6 years (5 in Scotland). Defaults are supposed to be recorded on credit files between 3 and 6 months after missing a payment, however, this isn't always the case. Also a lot of people make payments after defaulting, in which case the debt wouldn't be SBd even after dropping off their credit file.

I you haven't made any payments in the past 6 years it would be SBd. Technically a creditor can still issue a claim, but SBd is an absolute defence if they ever did that. :grin: :grin:

[topcatistop]

Re: CCJ 8 years after Default?

Wow, that was a quick reply! Thanks for getting back to me. I'm completely new to credit ratings, defaults, CCJs and frankly to internet forums as well.

What does SBd mean?

I haven't made any payments or acknowledged the debt with British Gas. The default date is 11/8/2008, so the 6 year end date is really quite close now. It's a bit of shame that I even bothered to get a copy of my credit rating as a few months ago I was blissfully unaware of this debt of £161.

Looking back I'm pretty sure this has come from a time when I was at university living with many other people, moving every year and not very good at keeping up with all my paperwork. Unfortunately the bills were in my name for a year or two, and I seem to have forgotten to settle one of the accounts before leaving.

I'm still in contact with most of the people I lived with at the time, and could probably get a few quid of each of them to help pay it off. But how would I even go about doing that? Do I just ring up British Gas and tell them I'd like to pay an old debt? And will this then remove the default from my rating? Or I could just wait a few months and hope it goes away? I've heard about CCJs now and they sounds scary.

I do wish I'd never found out about this. Now that I've found out about it through an Experian credit report, will they be informing British Gas that I am aware of the debt? Have I kick started some debt collection process by getting my credit report?

Thanks!
T

[FlamingParrot]

Re: CCJ 8 years after Default?

Wow, that was a quick reply! Thanks for getting back to me. I'm completely new to credit ratings, defaults, CCJs and frankly to internet forums as well.

What does SBd mean?

Statute Barred, under the Limitation Act 1980: http://www.legislation.gov.uk/ukpga/1980/58

Actions founded on simple contract

5 Time limit for actions founded on simple contract.

An action founded on simple contract shall not be brought after the expiration of six years from the date on which the cause of action accrued.

I haven't made any payments or acknowledged the debt with British Gas. The default date is 11/8/2008, so the 6 year end date is really quite close now. It's a bit of shame that I even bothered to get a copy of my credit rating as a few months ago I was blissfully unaware of this debt of £161.

You can soon forget about it again!

Looking back I'm pretty sure this has come from a time when I was at university living with many other people, moving every year and not very good at keeping up with all my paperwork. Unfortunately the bills were in my name for a year or two, and I seem to have forgotten to settle one of the accounts before leaving.

I'm still in contact with most of the people I lived with at the time, and could probably get a few quid of each of them to help pay it off. But how would I even go about doing that? Do I just ring up British Gas and tell them I'd like to pay an old debt? And will this then remove the default from my rating? Or I could just wait a few months and hope it goes away?

It's probably SBd already so I'd just forget about it. The default should drop off by itself regardless of whether it's paid or not. :thumb:

I've heard about CCJs now and they sounds scary.

No need to worry about that, it's SBd and it's an absolute defence.

I do wish I'd never found out about this. Now that I've found out about it through an Experian credit report, will they be informing British Gas that I am aware of the debt? Have I kick started some debt collection process by getting my credit report?

I doubt it, but if someone contacted you, all you'd have to do would be to send them a letter saying it's SBd. :typing:

[topcatistop]

Re: CCJ 8 years after Default?

Thanks for the explanations Flaming Parrot! Since finding out about this it's been playing on my mind a bit. I suppose as there's only about a month to go till the 6 year period I may as well wait till then and see what happens.

I don't particularly need a credit card and won't need a mortgage for a while so hopefully there won't be too much negative impact.

[FlamingParrot]

Re: CCJ 8 years after Default?

Thanks for the explanations Flaming Parrot! Since finding out about this it's been playing on my mind a bit. I suppose as there's only about a month to go till the 6 year period I may as well wait till then and see what happens.

I don't particularly need a credit card and won't need a mortgage for a while so hopefully there won't be too much negative impact.

Once the 6 years are up there should be no trace of it on your file so it shouldn't have any impact at all! :grin:

[Guest]

Re: CCJ 8 years after Default?

What if a debt collection company is chasing for a debt that is over 10years old (in one instance over 20years)?
I have defaults that PRA Group are still sending me collection notices for. Unfortunately, one of them was Welcome Financial Services, a debt claiming I owed £5444 form 2006. They offered me a settlement figure of £544, and I paid it this year. I'm thinking now after reading this thread that I've been duped a little and I should not have paid it.

I've received no notification form them that the payment was made either. I have also just put in a claim with the FSCS to reclaim my PPI from WFS.
Is there any way I can get my money back from PRA?