Debt Questions forum. General questions on debt issues.

Moderators: TalbotWoods, JaneClack

By debtsweat
#301583 I took out a bank loan in 2006 (no ppi). I stopped paying in 2007 and defaulted.

The loan has been sold on several times. I started repaying back in 2009 and was then made redundant. I've not heard much since then apart from a letter every few months.

My question is this; why have they not taken me to court already? Is there something stopping them?

I have asked for the credit agreement and they have provided it so all ok there.

The debt is about £3900 - I can't pay it off in full and wouldn't want to as I know these debt companies purchase debts for a very small percentage of their actual value. How much should I offer them or should I not even bother about this debt?

I want to get a finance car but whilst this is outstanding on my credit report I don't want to take the risk. My credit report is Excellent 975 points but I worry that if I do get a finance car that they will take it off me.

Thanks in advance.
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By TalbotWoods
#301593 A couple of possible reasons why they haven't

Whilst it is not turned into a CCJ, they can add interest and charges, effectively racking the amount legally payable upwards (by a considerable amount!). Your £3900 original debt may be legally three or for times that now

The original contract may have a fault in it, a few do and as a result SOME are unenforceable if defended in court.

Often if they find a person is a 'wont pay' they will take this action to block them from obtaining further credit.

If a person is a 'cant pay' there may be reasons (usually based around health issues) that make it difficult to justify action in a court if defended.

Also as a side issue, but of a serious nature, if you cant afford to pay off this old debt, then how are you going to explain to a new creditor that you can afford their debt repayments. This is more likely to be the stumbling block in obtain car finance.

I would suggest that until you are sorting out the debt repayment that you may find your Credit Files will be messed up for many many years, as creditors are legally allowed to report to the Credit Files bad payers and default payers.

Be aware that the score you obtain from a CRA, will NOT be the same as from a finance house, they have their own score systems that look back over a full 6 years of CRF reporting, so if you have a score of 975 with a CRA (Which is indicative of someone who has gold plated creditworthiness) then the finance house may score much much lower do to past and ongoing adverse credit history.

Not what you wanted to hear, but I would suggest that you speak to an advisor confidentially about as until the past credit issue is dealt with then the future credit may NOT look good for you.

If you click on the link in my signature block you can find organisations that provide free and confidential advice