Defaulted debt

[personal76]

Hi All

I am new to posting but im just wondering if anyone can give any advise on a default that i am paying off through a DCA that is just about to fall off my credit file.

The origional default was in july 2008 and i was contacted in 2011 when i bought my house by lowell portfolio and after negotiating with them £10 per month on an old credit card with capital one which had a balance of around £650. I now have a balance of of around £362.

My question is once the default drops off my credit file in july 2014 will lowell still report the payments and account to the CRA? Or will it completely dissapear and never appear again as im reading mixed messages about it still being a live account so even though the default drops off it will still be an active account.

Also with regards to this if the payments were to stop to the DCA can they obtain a new default or a CCJ?

[Kafka]

Re: Defaulted debt

What was the debt for?

If the account was defaulted then there have probably been a lot of charges added on that aren't actually owed so they could be reclaimed. Do you have all the documentation, otherwise you could send for it?

[personal76]

Re: Defaulted debt

No im not too concerned at that im just trying to find out if the DCA still reports the account after the default drop as in effect i will still be paying the account?

[personal76]

Re: Defaulted debt

And it was from a credit card

[Kafka]

Re: Defaulted debt

No im not too concerned at that im just trying to find out if the DCA still reports the account after the default drop as in effect i will still be paying the account?

In my experience the credit entry drops off the reports 6 years from default, even when money is still owed, as default effectively ends the account. The point about reclaiming the charges is that that will reduce the amount you owe anyway.

Also with regards to this if the payments were to stop to the DCA can they obtain a new default or a CCJ?

An account agreement terminates as an account when its defaulted so it can't be defaulted again, although there have been a few cases of the same default being registered by different owners. Technically they could seek a CCJ if you stopped paying, but to do that they would need to have the correct documentation (which is why I asked if you had this) and if they did you could still counterclaim for any charges if you know about them.

[Nibbler]

Re: Defaulted debt

No im not too concerned at that im just trying to find out if the DCA still reports the account after the default drop as in effect i will still be paying the account?

When the default reaches 6 years, the whole account is removed from the CRAs. The default, payment history, status, balances, EVERYTHING.

Nothing remains and nothing new is shown.

Even if the DCA continued to send information to the CRAs, they have dropped the account at that point so it would not show on your reports.

[personal76]

Re: Defaulted debt

Thats great guys thanks so much for info