Old credit card defaults

[xoxo]

Ok so, here we go.

In my youth I was not smart with money, spent beyond my means etc, etc. This went on until late 2008 when the bubble burst, and I no longer had access to widely available credit. At this stage I had a loan, several credit cards - the usual problems I guess.

In short, I buried my head in the sand, stopped paying 3 of the credit cards, but kept up with the other 2 (1 with my bank + 1 other) and the loan.

Now in more proserous times, the 2 credit cards that remain are used only for monthly expenditure with no o/s balance, the loan is long gone, and on the face of it I am in good shape. However... I cannot get a mortgage as I have the 3 defaults on my file from 2009 (those being Natwest, Barclaycard [now Lowells], Lloyds [now Capquest]).

Using a firm policy of ignoring all letters and correspondence regarding these, the letters stopped after a while and I forgot all about them (as best you can). Fast forward to today and of course, I find the 3 defaults are still on my credit report.

Soooo... what to do? I can pretty much afford to pay them all off in one hit (we're looking at a little under £12k here). But - as the card with Natwest is a closed account, I have no record of the number, they told me I would have to write to them to request the details. Lowells & Capquest, DCAs, I am loathe to deal with them direct. Ultimately I want all the bad bits off my credit report, or as best as possible.

I'm aware of the 6 year thing - but my understanding is hit & miss. Is it correct that 6 years after the default, the debt becomes... unenforcable? Wiped from the credit report? But remains "owing"?

Any help & guidance appreciated, time to get back on track (properly this time!). Dealing with this alone and hiding it from friends and family is a heavy weight to bear.

[mark andrew]

Re: Old credit card defaults

Hi xoxo,
Can you tell me if defaults arein original creditors or the debt collection agencys?. The problem i can see is eventually the debt collection might issue court procedures and go for a ccj which will stay on your file for a further 6yrs.

You might try negioate with the debt collection and try and get defaults removed as part of the deal worth a try keep all correspondance in writing

[xoxo]

Re: Old credit card defaults

On the credit report, the Natwest card is still with them. Lloyds is now with Capquest, and Barclaycard is now with Lowells.

[xoxo]

Re: Old credit card defaults

Do I, for example, try to open communications with Barclaycard, or if Lowells now have the debt (and they do, according to my credit report), all comms in relation to this should be with them direct?

[nemesis45]

Re: Old credit card defaults

Hi,
Defaulted accounts are removed from Credit Reference Files on the 6th Anniversary of the default date Paid or Not.

This does not mean the debts are statute barred, for a debt to become SB it must meet the following points:
1. No payment from any source in 6 clear years.
2. No Unequivocal Written acknowledgment of the debt in that 6 year period
3. No " enforcement action " taken by the creditor or a DCA in that 6 years period.

The debt even then still exists and remains payable in England & Wales in Scotland the debt is extinguished.

The FCA "hand book" adopts the same view as the OFT in that " it is unfair to continue to press for payment (of an SB debt)
once the debtor has informed the creditor in writing of the status of the debt and that they will not be paying".

Barclaycard have no further interest in an account sold on to Lowell.

Paying off these debts at such a late date will not improve your "credit rating"

[mark andrew]

Re: Old credit card defaults

Hi xoxo,
So two of the debts are owned by debt collection agency and the third is with original creditor so the dca owned them so you would have to negioate with them and the other is owned by natwest so what is you are looking for?

[xoxo]

Re: Old credit card defaults

From a (very) brief conversation with Capquest, they said that any "discounted" settlement would be shown as such on my credit report, marked as a partial settlement - which is not looked at particuarly favourably anyway. In the past I recall reading things about ensuring that the creditor confirmed that whatever payment is made (be it full, or a discounted partial payment) be described as "full and final settlement" or something to that effect?

Again, I make it clear that I am willing to pay what is owed, but of course would not want to pay more than is required!

Are there template letters to send? I realise that many people will have been through this before me, so rather than me rambling away trying to reinvent the wheel it makes sense to use a tried and tested standard.

[nemesis45]

Re: Old credit card defaults

XOXO please list here these accounts exactly how they appear on your credit files.
including "start date", "default date" "amount outstanding" and if you know last payment /acknowledgment.

[xoxo]

Re: Old credit card defaults

NW:
Start date 07/06/2002
Default date 13/04/2009
Date updated 21/04/2009
Last payment/acknowledgement by me would be late 2008.

Lowell (Barclaycard):
Start date 28/11/2003
Default date 02/07/2009
Date updated 26/07/2010
Last payment would have been late 2008 / early 2009 to Barclaycard.

Capquest (Lloyds):
Start date 24/10/2007
Default date 25/06/2009
Date updated 03/09/2013
Last payment to Lloyds would have been late 2008 / early 2009.
This one shows as a "bank default" to Capquest. Lloyds is there separately also, showing with the same dates, and then settled 31/07/2013... default balance the same as Capquest.

[mark andrew]

Re: Old credit card defaults

Hi xoxo,If you only make part payment it will be marked as such as understand if you are looking to settle the debts then write to them as state this as your intention are to clear your debts i've had success in getting my defaults removed from lowell.Like i said its not always going to work. You say you are wanting a mortgage and you feel that its having a negative affect on applying for one and you would appreciate if they would consider removing the DN you have nothing ti lose.You could wait to get some more advice of the forum.Mark