Trouble obtaining finance

[SickFish]

Hi All,

My current car is getting a little "long in the tooth" and ideally I would like to get a 'new' car, preferable on finance.

The trouble is, I was a bit of a dick head 4/5 years ago, went travelling round Thailand for a year and screwed my credit up royally. Resulting in 6 defaults......

The balance is still outstanding, to the tune of around £17k...... yes I was a dick head.

Next year the defaults will start to drop off my credit record, is it worth just sitting and waiting until then?

I have a well paid job, live with my long term GF who also has a well paid job and we don't do too badly.

I have managed to obtain a (admittedly high interest) credit card, and make regular, small purchases with it to try and repair my terrible credit score. But I fear that any finance and/ or loan will just get immediately rejected.

Options:
a). sit it out and wait for the defaults to drop off then look at finance/ credit
b). disassociate myself financially from the GF (we have a joint savings account where we put the same amount in each month to cover bills etc.) then obtain credit in her name and I cover the payments.
c). just save up until the defaults drop off = bigger deposit, or even able to pay outright and hope the current car survives.
d). Something else I haven't thought of???

Before people jump on me, yes I realise I was a cock, I do not have any current finance/ credit since getting the defaults other than the small credit card I have.

Payments will not stretch me/ us financially, I manage to save a not so insignificant amount each month, I think, the most sensible option is C?

As an aside, is there anything that can be done with regards to the defaults or am I stuck with them until next year?

TIA

[Sarnie]

Nothing can be done about the defaults, apart from paying them off. If they aren't paid off, have they/a debt collecting agency not been chasing you?

Of your options, C is the best thing to do.

[SickFish]

Nope, no agency has contacted me in over a year.

I CCA'd them all a long while back and all went quiet..... then they just seemed to get bounced between various agencies, to which I replied that the debts were in dispute.... then it all goes quiet again.

ETA, I think you are right, maybe C would be the best bet. I am already managing to save a decent amount each month, so best to make sure I just don't dip into it for a year or so.

[OscarIndia]

You say the defaults will start to drop off the system, I take it you have paid these off now?
If you have not paid them off then although the old ones will drop of at 6 years it will still show that the account is currently in default.
Your record will be clear 6 years after paying off the debt, not 6 years from incurring the debt.

[SickFish]

I was under the belief that they would drop off 6 years from the point of defaulting?

statute barred et al?

Edited by SickFish on Friday 7th March 10:07

[OscarIndia]

No, the default is registered, you still owe the money and the account stays in default until it is cleared.
Otherwise the system would be massively flawed, ie take out loads of debt, leave it 6 years and have no adverse effects.

[ikarl]

I know there is a rule about 6 years but it has something to do with no contact.....Someone will advise better! But I think any contact resets the 6yr clock

[SickFish]

I have read quite a few articles that have said that after 6 years of no contact/ acknowledging the debt they automatically drop off your credit record?

I have not acknowledged the debt or indeed contacted anyone about the debt other than stating that I reject it and refuse it until they are able to supply a signed CCA

Edited by SickFish on Friday 7th March 10:19

[OscarIndia]

This is called the statute of limitations, which although means that 6 years after the last payment was made they cannot legally enforce the debt, doesn't mean they cannot keep updating your credit file.
Go onto Experian and sign up for their credit checker, it states that there is a fee for 12 months, but as long as you cancel within the first month is free.

[SickFish]

I already am with Noddle, which is free, I have used my Experian already so cannot re-sign up to it.

So, what you're saying is even after the 6 years it will still show as money is "owed"?

ETA, what sort of an impact would that have on my credit report?

Edited by SickFish on Friday 7th March 10:26

[OscarIndia]

SickFish said:

I already am with Noddle, which is free, I have used my Experian already so cannot re-sign up to it.

So, what you're saying is even after the 6 years it will still show as money is "owed"?

ETA, what sort of an impact would that have on my credit report?

Edited by SickFish on Friday 7th March 10:26

It really depends on what the companies have actually submitted to the credit reference agencies.
Although they are meant to submit something every month they dont always.
What is Noodle showing? Is there anything recent on there?

[PurpleMoonlight]

If the creditor has recorded the default with the credit reference agencies, then yes that will automatically be deleted from the agencies records 6 years after the recorded default date.

Beware though, not all creditors to record as such. If you haven't already you need to get a copy of your credit records from the agencies to check what is there. If they have not recorded the default, you can still get the record removed after 6 years from when you ceased contractual repayments by utilising the Data Protection Act (you may need to make a complaint to the Information Commissioner to force them though!).

Statute barred refers to the ability of the creditor to utilise the courts to obtain payment. A debt is Statute Barred if the debtor has not acknowledged the debt for 6 years, a payment towards the debt counts as an acknowledgement and resets the 'clock'. The creditor writing to the debtor does not in itself reset the clock.

[SickFish]

OscarIndia said:

SickFish said:

I already am with Noddle, which is free, I have used my Experian already so cannot re-sign up to it.

So, what you're saying is even after the 6 years it will still show as money is "owed"?

ETA, what sort of an impact would that have on my credit report?

Edited by SickFish on Friday 7th March 10:26

It really depends on what the companies have actually submitted to the credit reference agencies.
Although they are meant to submit something every month they dont always.
What is Noodle showing? Is there anything recent on there?

Nope, no recent searches, all quiet on the western front.

Status of debt is "gone away"
date of default is in 2009 on all defaulted accounts

[PurpleMoonlight]

SickFish said:

I already am with Noddle, which is free, I have used my Experian already so cannot re-sign up to it.

So, what you're saying is even after the 6 years it will still show as money is "owed"?

ETA, what sort of an impact would that have on my credit report?

Edited by SickFish on Friday 7th March 10:26

You can get a copy of your credit record for £2. The three main agencies have links on their websites for this.

[SickFish]

PurpleMoonlight said:

If the creditor has recorded the default with the credit reference agencies, then yes that will automatically be deleted from the agencies records 6 years after the recorded default date.

Beware though, not all creditors to record as such. If you haven't already you need to get a copy of your credit records from the agencies to check what is there. If they have not recorded the default, you can still get the record removed after 6 years from when you ceased contractual repayments by utilising the Data Protection Act (you may need to make a complaint to the Information Commissioner to force them though!).

Statute barred refers to the ability of the creditor to utilise the courts to obtain payment. A debt is Statute Barred if the debtor has not acknowledged the debt for 6 years, a payment towards the debt counts as an acknowledgement and resets the 'clock'. The creditor writing to the debtor does not in itself reset the clock.

I have been very careful with any comms, not acknowledging the debt etc. and the clock is still ticking away

I check my credit report bi-monthly, all defaults that should be there are there and is as it should be, nothing untoward as far as I am aware

[SickFish]

PurpleMoonlight said:

SickFish said:

I already am with Noddle, which is free, I have used my Experian already so cannot re-sign up to it.

So, what you're saying is even after the 6 years it will still show as money is "owed"?

ETA, what sort of an impact would that have on my credit report?

Edited by SickFish on Friday 7th March 10:26

You can get a copy of your credit record for £2. The three main agencies have links on their websites for this.

Noddle shows my credit record, it is free to sign up to and if free for life. It is like Experia, Equifax etc etc

[Tyre Tread]

So you admit you were a dick, ran off without repaying debts, now have the means to repay those debts but prefer to find ways to avoid your liability so you can spunk the money on a nice motor?

Great attitude and one reason why this Country is screwed! No sense or reponsibility.

[PurpleMoonlight]

SickFish said:

I have been very careful with any comms, not acknowledging the debt etc. and the clock is still ticking away

I check my credit report bi-monthly, all defaults that should be there are there and is as it should be, nothing untoward as far as I am aware

Then you are probably best waiting until they drop off next year.

The danger is if you manage to obtain some finance it will of course show on your record for the existing creditors to see, as would any searches by possible lenders, and that could activate the existing creditors into more forceful action to collect the debt because they think you can afford to repay. Once a debt is statute barred you are for all intents and purposes free of it.

[SickFish]

Tyre Tread said:

So you admit you were a dick, ran off without repaying debts, now have the means to repay those debts but prefer to find ways to avoid your liability so you can spunk the money on a nice motor?

Great attitude and one reason why this Country is screwed! No sense or reponsibility.

If you must know I had PTSD, I didn't know what I was doing and running away from my demons.

But thanks for your contribution helpful....

[SickFish]

PurpleMoonlight said:

SickFish said:

I have been very careful with any comms, not acknowledging the debt etc. and the clock is still ticking away

I check my credit report bi-monthly, all defaults that should be there are there and is as it should be, nothing untoward as far as I am aware

Then you are probably best waiting until they drop off next year.

The danger is if you manage to obtain some finance it will of course show on your record for the existing creditors to see, as would any searches by possible lenders, and that could activate the existing creditors into more forceful action to collect the debt because they think you can afford to repay. Once a debt is statute barred you are for all intents and purposes free of it.

Ah so, you would recommend keeping my head down, remaining off the "grid" so to speak and just wait for them to drop off before applying for anything?