Creditcard debt wiped after 3 years

15
Found 4th Mar
Good news if you struggling to pay off your creditcard with just the minimum payment they warn you after 18 months and suspend your card after 3 years with possiblity of wiping it out

Info: thesun.co.uk/mon…nts
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14 Comments
Where is the proof this is the case?
Who are 'they' pray tell....
Seems quite irresponsible to rely on this if tru
A bit of a selfish attitude.
Grossly misleading advice. If you have read this and are looking to rely on it, please research your position of Money Saving Expert or similar sites that had proper advice.
I've moved this to Misc for discussion @pengwyn and put the link in your description too.
On the "possibility of wiping it out", not the debt or credit itself, "it" is "may include reducing, waiving or cancelling any interest and fees, said the FCA".
Under the limitations act 1980 a creditor has 6 years to chase you for debts or 12 years in the case of some mortgages, this is 6 years from when you last acknowledged the debt (used the card, made a payment, probably logging into their website as well).

Its also depends on if the creditor has attempted legal action to recover the debt within those 6 years.

The debt is not wiped out it is statute barred. (Meaning it still exists but the creditor is not allowed to chase you for it after that time)

The link wasn't there when I first read the OPs message, but if you are taken to court for debt you are allowed already to make a reasonable arrangement for repaying, even if its just £1 a week a court will accept that depending on your circumstances.

All this seems to be is cutting out the courts and making the suspension of your card and the retrieval of debts faster, probably in a bid to stop reckless people getting stupidly high debts. Its not a good thing because anything that messes up your credit rating is not good.
Edited by: "Segata-Sanshiro" 4th Mar
If anyone is in financial difficulty use Stepchange particularly Debt relief order (you must also have less than £50 in surplus income per month) for non homeowners with debt under £20K
Edited by: "OllieSt" 4th Mar
The article is from the Sun, then very selectively edited by the op,
33373668-FNOq4.jpgVery misleading clikbait headline.
OP, this is Splender, good morning,

You may as well quote from the FCA, so we have a chance to respond with focus and purpose after hearing from the horse's mouth, neigh.

Edit
I see that you added a link to the Sun, what's up, isn't the horse's neigh not good? FCA is Financial Conduct Authority. We know the need for good conduct well.
Edited by: "splender" 4th Mar
Much as I sometimes find splenders posts a little hard to understand , I would firmly support reading the actual link he has posted to the FSC page which gives the correct facts. Some will find this "good news" , however in view of the long term knock on effect on your credit score , it's certainly not a path anyone would choose to go down unless desperate.
splender1 h, 5 m ago

OP, this is Splender, good morning, You may as well quote from the FCA, so …OP, this is Splender, good morning, You may as well quote from the FCA, so we have a chance to respond with focus and purpose after hearing from the horse's mouth, neigh.EditI see that you added a link to the Sun, what's up, isn't the horse's neigh not good? FCA is Financial Conduct Authority. We know the need for good conduct well.


I'm posting my reply here so as not to spam the feedback thread where you asked the question re my comment here:

I deleted it after I considered that there was relevant information in the thread advising people how to seek help and advice.
I'm not sure the "wiping of debt" is quite the blessing you would imagine. I suspect you would find yourself in a debt management plan that would dramatically impact any future borrowing.
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