Requesting advice on nominal payments

[GoldenEagle]

I defaulted on a couple of credit card accounts in the last financial crash which I think happened around 2008. One got transferred to a debt collection agency who took me to court and produced a copy the application form that I had signed. I ended up getting a CCJ and agreed to pay a nominal amount per month. This has since being transferred to another debt collection agency and I’ve been making nominal payments to them.

Second credit card debt, I agreed with the issuer to make nominal payments. A year or so later I received a letter from the issuer advising me that the Account will now be managed by the debt collection agency. I have continued making normal payments to them.

Recently, I have been scouring the Internet and the advice seems to be not to make a nominal payments to debt collectors.

The question I have is what happens if I stop making normal payments. Would my credit file be affected? Or difficulty in getting mortgage or possibility of court action. Currently, my credit file is clear and have outstanding amount on mortgage. I am reaching retirement soon.

Thanks in advance

[echat11]

The debts have 'dropped off' your credit file.

The Defaults stay on your credit file for 6 years after the accounts are Defaulted.

They can't be placed back on the account.

On the second card they could potentially lodge a Court claim, but they would need
an agreement, default notice and letter of assignment. You could defend the claim.
It's not straightforward for them.

You could make a 'nominal' full and final settlement offer, but the letter must have 'Without
Prejudice' written on it. Say 5%. You have options.