if you have no bad credit for 6 years then do you start with a clean slate again?
please...no replies from people who are just out to prove how morally superior they are
2007-12-05 08:34:10 · 7 answers · asked by returnofkarlos 2 in Business & Finance ➔ Credit
Defaults stay for 7 years. Other than the moral obligation, there is no reason. Unless, you come to an agreement with the company - having them remove the negative listing in agreement of full or partial repayment of the debt. Not to mention, just because it is removed from your report - you can continue to get the phone calls, forever - even though they can no longer report it to the credit bureaus.
2007-12-05 08:39:06 · answer #1 · answered by Anonymous · 1⤊ 0⤋
Ok i owed money to a bank dating back to 1991, i went to work abroad in 1995 and for what ever reason the debt did not get paid.
In 2006 i had a letter from a debt recovery company stating that the bank had sold the debt on and i owed the money to them, after much research i discovered that after six years and providing that their has been no communication between the debtor and the lender then the debt becomes statute barred under the limitation act 1989 and as such it cannot be recovered. Even if you contact the lender after six years and own up to the debt it makes no difference the debt remains statute barred for life even if it is sold on. The Limitation Act cannot be used if there is a County Court Judgement.
This is one of the main reasons why Statute Barred Debts are sold on to pushy Debt Collection Agencies and some people will pay be up because they are ignorant of the Law
I now have a good credit rating and borrow sensibly it is not that i did not want to pay back the loan, if the bank fail to recover the debt in the time set down by the Limitation Act 1989, and dont seek a County Court Judgment then after six years they can no longer recover the debt, the law is there to protect all concerned.
2007-12-06 07:20:02 · answer #2 · answered by Anonymous · 0⤊ 0⤋
If the original lender sells the debt onto a Debt Recovery company, they may not stop them hounding you until you pay up - CCJ's don't expire and a Debt Collection company could be putting 'default' notices on your credit reference every month ... so the 7 years may only start if you pay up ...
Even after paying up, people with debt problems often get straight back into difficulties .. staying 'clean' for 7 years is an almost impossible task for most defaulters ..
Anyone who has stayed 'clean' for 7 years deserves to be trusted with money (loans etc) again...
2007-12-05 21:05:06 · answer #3 · answered by Steve B 7 · 0⤊ 0⤋
Good question. You're right once an account is Charged Off it will be there hurting your score paid or not for 7 years, so why pay?
If you can wait it out then more power to you but they may try to sue you and force you to pay or garnish your wages. In that case it may be in your best interest to pay or settle the account.
Also if you want but a house most mortgage companies will not approve you if you have any outstanding bad debt reporting so in that case you would also need to pay it.
Otherwise if you can handle the collection agencies hounding you and it doesn't bother you to have the bad debt out there....then fine don't pay them. Just realize that even though they can't report it on your credit after 7 years the debt never goes away (unless it is paid) and they can continue to try to collect on it indefinitely.
2007-12-05 08:43:48 · answer #4 · answered by Delaina77 3 · 0⤊ 0⤋
There are several good reasons why you should pay them off. Even though the bad marks may disappear, you still arent in the green yet.. your credit score & your FICO score combined are what counts.. you could be placed in a higher FICO category, but at the bottom with the bad debtors of that category, thus, still making it hard to get approved for things that you need. You've got to pick and choose which debts are the most important (and pay them off).
2007-12-05 08:49:27 · answer #5 · answered by pandernpink 1 · 0⤊ 0⤋
they might stay on your file for 6 years, but they can still get the money up until 6 years after the last time you had dealings about it. If you ring them up and say "I cant pay" your 6 years starts again. so you bother because they can still get the money out of you
2007-12-06 02:09:05 · answer #6 · answered by alatoruk 5 · 0⤊ 0⤋
Defaults are debts...so although they "leave" your file after 7 years, the debt remains.
Sooo...I suppose the reason for bothering to pay them is to get the people you owe the money to (or their reps) off your case!
2007-12-05 09:24:30 · answer #7 · answered by Anonymous · 0⤊ 0⤋
I had my house black listed through a tenant I had to apply to court to have it removed
2007-12-06 04:22:17 · answer #8 · answered by joan g 3 · 0⤊ 1⤋