Written off debt - advice please.

57
Found 22nd Jan 2012
I have a £550 debt hanging over my head since the age of 18. All of which was due to fines from Abbey National.

It's been 4 and half years and i still have not paid the debt which Capquest bought from Abbey national.

Could someone please answer the following.

After 6 years the default gets cleared from your credit score, but is there any traces left whatsoever?

I'm thinking about disputing the debt with Santander but if it will totally clear in 18 months i'd rather just leave it and never have to deal with them ever again!
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There shouldn't be any traces left. After 6 years (if they haven't taken action in the small claims court) the debt becomes statute barred and no longer enforceable.
It falls off your credit file 6 years after the date the default was registered. If it's down to fines you can take it up with Abbey and it will not make a difference to the date the default drops off.
CCJ disappears after 6 years but i don't know about finance debt to a bank or organisation. they may keep your name on a bad credit register, which may not have any time limit.
The debt will still be outstanding and you will still be liable for it, but it will fall off your credit report 6 years after it was set as a "default" on the account (so you might want to check what date that was, because sometimes its only when they get round to it!!)
You can make them an offer. Say for example £300.00, and they may accept it and close your debt account.
Pay it you waster
funny.onion

You can make them an offer. Say for example £300.00, and they may accept … You can make them an offer. Say for example £300.00, and they may accept it and close your debt account.



His account has already defaulted, Abbey have sold the debt on so even if he did pay the amount it would make no difference as the default will still remain and the damage has been done.

When did you last correspond with them regarding the debt?
I would just pay it, or contact them to organise a payment plan.
Never a lender nor a borrower be.
fluffyundacrakas

His account has already defaulted, Abbey have sold the debt on so even if … His account has already defaulted, Abbey have sold the debt on so even if he did pay the amount it would make no difference as the default will still remain and the damage has been done.



I do think if you have racked up debts then morally you should pay them, even if it is due to charges. If you objected to the charges then you should have written to them at the time, or the financial ombudsman to get it sorted. As you didn't (or it doesn't sound like you do, sorry if I'm making assumptions) it sounds like they were valid charges and as such should be paid.
sickly sweet

I would just pay it, or contact them to organise a payment plan.Never a … I would just pay it, or contact them to organise a payment plan.Never a lender nor a borrower be.


Nah the OP's right, dodge and weave for 6 years. Clear and sorted
sickly sweet

Never a lender nor a borrower be.



The world would collapse.
Banned
If you only have a default it will go from your credit file after 6 years and the debt will become statute barred.

If you have a ccj it's slightly different and could still be enforced, even after 6 years. However you would almost certainly know if you had a CCJ.

My advice: if the fines are illegal and incorrect dispute them in writing with capquest. If they are fines you've accrued through your own stupidity, pay them/offer a full and final settlement figure.
thesaint

The world would collapse.



As an individual it's good to live by it.
It saves many a tear, argument and problem.
sickly sweet

As an individual it's good to live by it.It saves many a tear, argument … As an individual it's good to live by it.It saves many a tear, argument and problem.



no one would have a roof over their head as they would not take out a mortgage?

fluffyundacrakas

His account has already defaulted, Abbey have sold the debt on so even if … His account has already defaulted, Abbey have sold the debt on so even if he did pay the amount it would make no difference as the default will still remain and the damage has been done.




My ex persuaded me to take out a credit card to buy equipment for his studio when we were together. We split up and I was liable for the debt.

I defaulted as I didn't have the money at the time and it went through two debt collection agencies. The last one wad based in southend and after hearing nothing for awhile they suddenly contacted me. I made them an offer of several hundred pounds less and they accepted it as a final payment. My credit score with expetian then had the debt removed leaving me clear and good for credit.

why leave it so long to dispute the debt ? or has it been ongoing (correspondence) for all those years ?
if no enforcement by creditor (normally ccj) and no written acknowledgement or payment by debtor since cause of action occurred (during limitation period) then debt will become time barred under Statute of Limitations Act 1980

limitation period for unsecured debt, which i assume this is, is 6 years from cause of action, which is not necessarily the date that default is registered

if the debt is acknowledged in writing, or payment is made by the debtor, the limiatation starts again from the date of acknowledgent or payment

if a debt has become time barred, it is still a debt, but it cannot be legally enforced, details would remain on credit file for 6 years from when default is registered

if a debt has become time barred, subesquent payment or acknowledgement does not make it not time barred

you would need to decide whether to lay low and hope creditor does not enforce within limitation period, once ccj is obtained time limits no longer apply, but if enforcement of ccj is unreasonably delayed, the creditor may need permission of the court to then enforce, realistically, i think the court would allow enforcement

if you are concerned about ccj, you could look to investigate whether the debt can be challenged, if full and final settlement can be agreed or propose affordable payment by instalment

af
Edited by: "apf777" 22nd Jan 2012
You need to send off a SAR an they will 'happily' take fees off via a reclaim- they kind of have to. Capquest have a repuation for chasing money they have no legal right to claim for, the SAR will show you if they can take you for a CCJ or not. Google CAG, it's the oracle of debt forums.

If you're worried about future borrowing being turned down, there's really only one thing that will influence banks; if they want to lend you money, they will. If you have £20,000+ house deposit any bank will give you a mortgage regardless of credit history as they have that money as security in case you default. *When* the pressure drops on banking I fully expect the worst offenders to start offering £5k 'no credit check' loans again. It's guaranteed money for them.
Edited by: "tonyhawk" 22nd Jan 2012
Original Poster
In my eyes it was an error from Abbey National, they somehow charged me £1200 in bank charges in the space of 4 weeks. (later reduced to £600)

I tried to get in contact with them at the time but everyone i spoke to in my local Abbey banks accepted there had been errors but would only advise me to call the call centers and if you have ever dealt with Abbey National you will understand thats not an easy thing. Also bearing in mind i had just turned 18 all this was quite a shock.

The reason i never paid it was the fact i don't feel i owe the money, i'm not trying to get out of money spent. If it was a £500 loan i would of paid it without a second thought but its all fines.

I haven't thought about it much as i know Capquest can't get any money from me without me handing it over. They have also been very quiet for the last 2 years.

But now i'm quite worried if this will come back to haunt me in later life...

Edited by: "Starr" 22nd Jan 2012
thesaint

When did you last correspond with them regarding the debt?


care should be exercised if forwarding SAR, creditor may argue this is acknowledgement, you may wish to obtain further advice before proceeding, CAB/NDL/CCCS, google is your friend

af
Well I understand the worry but: they can't send anyone to your house if you tell them 'contact by phone only', they can't employ baliffs unless they get a CCJ (and they've not so far), and the letters are computer generated from a database, they don't really know if you exist or not, and despite when Capquest often state, they certainly can't make you bankrupt.
Original Poster
deviouspaul

The debt will still be outstanding and you will still be liable for it, … The debt will still be outstanding and you will still be liable for it, but it will fall off your credit report 6 years after it was set as a "default" on the account (so you might want to check what date that was, because sometimes its only when they get round to it!!)



Defaulted in August 2007

thesaint

When did you last correspond with them regarding the debt?


Haven't spoken to Capquest for at least 3 years.
apf777

care should be exercised if forwarding SAR, creditor may argue this is … care should be exercised if forwarding SAR, creditor may argue this is acknowledgement, you may wish to obtain further advice before proceeding, CAB/NDL/CCCS, google is your friendaf


Aye, make sure you write 'I do not acknowledge this debt' and NEVER sign with your signature- initial the letter or print your name. Again, CAG is your best resource here. You'll find Capquest case studies there.
Original Poster
I'm not worried about Capquest demanding money, haven't heard from them for years.
From what i've read, as it bank charges all they can do is ask for the money. They can't do much else.
Original Poster
tonyhawk

Aye, make sure you write 'I do not acknowledge this debt' and NEVER sign … Aye, make sure you write 'I do not acknowledge this debt' and NEVER sign with your signature- initial the letter or print your name. Again, CAG is your best resource here. You'll find Capquest case studies there.



On that note, I've probably already acknowledged the debt as i paid £35 after falling for their scare tactics shortly after the bought the debt from Abbey.

Banned
doesn't the debt with the new company now appear on your credit file then?
sickly sweet

I do think if you have racked up debts then morally you should pay them, … I do think if you have racked up debts then morally you should pay them, even if it is due to charges. If you objected to the charges then you should have written to them at the time, or the financial ombudsman to get it sorted. As you didn't (or it doesn't sound like you do, sorry if I'm making assumptions) it sounds like they were valid charges and as such should be paid.



Agree with SS. My friend had £400 worth of charges added onto his account due to Abbey's mistake and his account went into default. He did the whole bank reclaim thing (going back a few years now when it was possible) and won, Abbey paid up and also interest on top of that, with the money cleared he paid off the debt but only after getting it in writing from Abbey they would remove the default marker from his file after he paid. 

The trick here is not to correspond with the debt collecting agency but the original lender as they have the power to remove the default, the debt collecting company only want payment as if say your debt was £500, they would have bought it from Abbey for something silly like £50 and any money they get out of you goes into their pocket. 

Aa for reclaiming your charges I thought the loophole was now closed? I remember it was a big story on MSE a few years ago once they lost the test case. 
Original Poster
sassie

doesn't the debt with the new company now appear on your credit file then?



Yes it does appear on my file. I'm not sure of your point though Sassie?

SS. You mention that "it sounds like they were valid charges" £1200 in a 4 week space is surely not valid charges!
Banned
Starr

Yes it does appear on my file. I'm not sure of your point though … Yes it does appear on my file. I'm not sure of your point though Sassie?SS. You mention that "it sounds like they were valid charges" £1200 in a 4 week space is surely not valid charges!


so you have a £550 default debt showing with abbey and a £550 debt showing with the company that purchased the debt? meaning your credit file is showing a £1100 debt?
Original Poster
sassie

so you have a £550 default debt showing with abbey and a £550 debt s … so you have a £550 default debt showing with abbey and a £550 debt showing with the company that purchased the debt? meaning your credit file is showing a £1100 debt?



Oh i see.
No, the debt is solely with Capquest. Apparently Abbey National wouldn't let a debt get to that stage, they will always sell the debt off and let someone else do the dirty work.
Banned
when was the debt sold? that will probably show up at some stage, and surely if the debt has been taken over by someone else this is no longer a debt, well not with abbey so surely that should show as settled
Reread the first post- if they are not chasing you, leave it. The moral thing is understandable, but the banks never behave morally themselves. As the debt has been sold, you won't be able to negotiate anything with Santander, they'll refer you to Capquest (who may sell the debt on at some point).

Fluffyundacrakas- banks now have to charge fees that can be considered 'fair', hence their desperate attemps to introduce new types of fees that have less regulation (Halifax is terrible for this). With the £550 comprising mainly of fees most if not all of it can be reclaimed. I had a £1300 Halifax overdraft (£300 overdraft, £1000 fees) reduced to £120 after they paid me interest last year. I had no problem paying the original £300 which was overlooked when we moved abroad for a short period of time- but morally I felt unable to pay Capquest the fees on top
Original Poster
sassie

when was the debt sold? that will probably show up at some stage, and … when was the debt sold? that will probably show up at some stage, and surely if the debt has been taken over by someone else this is no longer a debt, well not with abbey so surely that should show as settled



I'm not sure when it was sold possibly 01/07/2005. I cant see it anymore but i believe it used to say Capquest (formerly Santander cards) but since Credit expert have changed the layout i can just see Capquest (formerly...
So it seems they have taken over the debt.
Original Poster
tonyhawk

Reread the first post- if they are not chasing you, leave it. The moral … Reread the first post- if they are not chasing you, leave it. The moral thing is understandable, but the banks never behave morally themselves. As the debt has been sold, you won't be able to negotiate anything with Santander, they'll refer you to Capquest (who may sell the debt on at some point). Fluffyundacrakas- banks now have to charge fees that can be considered 'fair', hence their desperate attemps to introduce new types of fees that have less regulation (Halifax is terrible for this). With the £550 comprising mainly of fees most if not all of it can be reclaimed. I had a £1300 Halifax overdraft (£300 overdraft, £1000 fees) reduced to £120 after they paid me interest last year. I had no problem paying the original £300 which was overlooked when we moved abroad for a short period of time- but morally I felt unable to pay Capquest the fees on top



Do you think leaving it is the best thing then?
Santander has pulled that line before though saying they can't speak to me as the account is closed. Is that the end of it?

Your success story makes me want to try and challenge this.
Banned
it has already been over 6 years since they sold the debt, getting a bit confused
Original Poster
sassie

it has already been over 6 years since they sold the debt, getting a bit … it has already been over 6 years since they sold the debt, getting a bit confused



Ye its over 6 years old from when it started but the debt gets written off 6 years after the debt has defaulted which was on 01/08/2007.
Banned
starr i am obviously being a bit thick here, but i read it as you had a debt with abbey, you defaulted on this debt sometime in 2005 and then in then july of the same year it was sold on to a debt agency?
Original Poster
sassie

starr i am obviously being a bit thick here, but i read it as you had a … starr i am obviously being a bit thick here, but i read it as you had a debt with abbey, you defaulted on this debt sometime in 2005 and then in then july of the same year it was sold on to a debt agency?



Ye basically thats it. Not 100% on the dates but there or there abouts.

I'm not sure if the Abbey debt was classed as default but it was money owed to them, they then chased it for a few months and sent me a final letter saying return cards as your account is being closed and the debt will be sold on.
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