Bad credit rating.

Phil Young

Phil Young

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So here's the deal...

18, young and irresponsible got a credit card, missed some payments, got a CCJ, paid it off and had some other minor things like bank charges which I refused to pay.

That left me with a severely bad credit rating and have always been refused credit for anything. I've been on my friends phone contract for about 9 years now!

Anyway.

Did you know after 6 years of no contact, debts are dropped from your history?!?

I did, and yesterday I saw my experian credit report and my rating was 946 - 'good'. One short of excellent!

To celebrate, I got a credit card lol!!!

I'm really happy with that, now I can get things like a mortgage, credit card for rainy days ad my own phone contract!!!
 
Isnt it called the Statute of Limitations...or something?
 
Spend, spend, spend!!!
 
I thought statute of limitations act was if you were naturally unaware of old debt. The OP is fully aware of oustanding bank charges which he refuses to accept contact about so surely the act doesnt apply here and the debt still stands and could be pursued over it even though it doesnt show on the credit report?
 
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stupar said:
I thought statute of limitations act was if you were naturally unaware of old debt. The OP is fully aware of oustanding bank charges which he refuses to accept contact about so surely the act doesnt apply here and the debt still stands and could be pursued over it even though it doesnt show on the credit report?
Click to expand...
It does. Technically you could loan money, leave the country and come back in 7 years with good credit...

Not advising someone to do that lol but it's the risk lenders take.
 
stupar said:
I thought statute of limitations act was if you were naturally unaware of old debt. The OP is fully aware of oustanding bank charges which he refuses to accept contact about so surely the act doesnt apply here and the debt still stands and could be pursued over it even though it doesnt show on the credit report?
Click to expand...


I theory if you acknowledge the debt then you reset the clock. Even if you are aware of the debt then after 6 years statute of limitations apply (assuming its unsecured debt). There is no statue of limitation for judgement debts (those which you have a CCJ on) however the creditor would need a courts permission after 6 year to enforce. Which they'd struggle to get.

Secured debts (mortgages etc) limitations kicks in after 12 years.

The SoL has nothing to do with things dropping off your credit file. Thats entirely down to the data protection act.
 
im pretty sure for a debt to be time barred that requires 6 years since the last contact so a chasing letter after say 5 years 11 months could reset the clock
 
boliston said:
im pretty sure for a debt to be time barred that requires 6 years since the last contact so a chasing letter after say 5 years 11 months could reset the clock
Click to expand...

Only if you acknowledge it.
 
Moral question for OP and by no means a dig.
Whether you believe in the justification of bank charges or not do you believe it is acceptable to just ignore debt or is it now a case of educated and wont do it again scenario?
More so if thinking about secured debt.
 
boliston said:
im pretty sure for a debt to be time barred that requires 6 years since the last contact so a chasing letter after say 5 years 11 months could reset the clock
Click to expand...


what @Nikon_Nick said. You need to acknowledge the debt. Just writing is not enough
 
stupar said:
Moral question for OP and by no means a dig.
Whether you believe in the justification of bank charges or not do you believe it is acceptable to just ignore debt or is it now a case of educated and wont do it again scenario?
More so if thinking about secured debt.
Click to expand...
£35 charge for a DD Being taken without enough funds...

Shouldn't have been taken (as they aren't now!).
 
My understanding is that the debt must be acknowledged in writing or a payment made to reset the clock within 6 yrs.
 
To clarify.

After 6 years of NOT acknowledging a debt, it becomes "statute Barred" which means your creditor has no legal recourse to pursue you for the debt.

BUT

You still owe them the money. They just can't sue you for it.

They could, Still mark your credit history each month with a default until the sum owed is paid. Although they rarely do.
They could also keep sending letters and debt collectors.

The falling off you credit file is the LAST default they have registered. It doesn't mean its gone and forgotten about. They still can come back and bite you.
Note I said could. Not would.

Matt
 
Agoraphobes anonymous?
 
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