Covid 19 Status

In line with HM Government requirements to fight the spread of Covid-19 we have measures in place to ensure that we protect our staff, their families and the wider community, but also to ensure that there is minimal disruption to our customers.

Your access to online Multi Agency Credit Reports, Expert Help and Account Management remains unaffected. We take great pride in the support that we provide to our customers and throughout this period will do all we can to minimise the impact on our services. While the country remains in lockdown we will continue to support your queries via a dedicated and experienced team that will be securely working from home, and supported by a Management Team that will continue to be based at our head office and who will be able to provide customer support as required.

The security measures that we have in place to protect your Personal Data, in line with our Privacy Policy, will mean that some elements of our personalised support are affected during this period as our support team will be working with anonymised data when working remotely. Freephone access to our Credit Analysts has been removed during this period while we focus our efforts on continuing to reply to all of your emails and secure messages within one working day.

Thanks for your understanding, and we hope to have full customer support available as soon as possible and wish you well during these challenging times.

CREDIT REPORT SERVICES AND ONLINE EXPERT HELP ARE FULLY OPERATIONAL - PHONE LINES ARE CLOSEDCOVID-19 STATUS

ONLINE SERVICES FULLY OPERATIONAL
PHONE LINES ARE CLOSEDCOVID-19 STATUS

Do I Owe a Debt If It's Not On My Credit Report?

Posted by Tom Blandford in Dealing with Debt on 21 April 2019 - Tom is a Credit Analyst at checkmyfile

Information that appears on your Credit Report should (in most cases) follow a fairly predictable lifecycle. But don’t think that if an unpaid debt no longer shows up, you’re no longer responsible for it.

Once a credit account has been closed for six years, it should be removed automatically by the Credit Reference Agency reporting it. The same timescale should also apply to accounts that were closed by the lender and placed into Default, but even when that happens, you can still be pursued for any outstanding debts relating to it.

Although it is uncommon to have unpaid debt remaining six years after an account has been removed from your Credit Report, there are circumstances where this may happen.

How can this happen?

As a general rule, a debt is considered to be owed until it is paid in full, or if a satisfactory partial settlement has been accepted by the creditor. As such, it is possible to be pursued for unpaid debts even if they’re more than six years old and have dropped off your report.

Contrary to some wishful thinking, an unpaid debt doesn’t become written-off once it’s six years old and Statute Barred status only prevents creditors from pursuing a debt through the courts, but not through other means.

That means if you’ve got an unpaid debt, or you’re still making payments towards a debt that no longer appears on your Credit Report, you are still responsible for the debt and obliged to pay it off.

Post judgment remedies

One example of this is if you are issued a County Court Judgment (CCJ) due to unpaid debts. A creditor can choose to utilise a post judgment remedy to enforce the debt, which is essentially the lender’s chosen way for you to repay the debt owed, based on your personal circumstances.

Some examples of post judgment remedies include Orders to Obtain Information, attachment of earnings order, garnishee order, charging order or a writ of control (bailiffs).

Depending on the terms of the repayment plan set out by the creditor, you might end up paying for the debt for a period longer than six years, which means that the CCJ (and the account it relates to) will be removed from your Credit Report before the debt is paid off in full.

Incorrect contact details held by the lender

Another common reason for being liable for debts long after the account has been removed from the Credit Report is as a result of correspondence about the loan being posted to an incorrect address. It is possible for letters relating to unpaid debts to be sent to an old address if the lender isn’t given your updated details. Changing address is no excuse for evading unpaid debt, as you are required to inform lenders of such changes and again, it doesn’t mean that you will be able to get away without paying.

If lenders sell a debt

It is common practice for lenders to ‘sell’ bad debt on to collection agencies, rather than pursue it themselves, especially where the debt is small. Lenders can do this at any time, even if it becomes ‘statue barred’, so old debts can often re-surface when it is least expected.

That means it’s entirely possible any unpaid debt more than six years old could see a renewed interest once it’s acquired by a collection agency, long after the original account has dropped from your Credit Report.

In these cases, not only will you still be liable for the debt, but you could also find that a new record is created on your Credit Report by the collection agency which will remain for a period of six years from the date it was created.

If you receive a letter requesting payment and are unsure what it could relate to, this information should be readily available from the lender or debt collectors attempting to collect payment.

If debt collectors are sent to try and reclaim a debt, you can follow our guide so you’re fully aware of your rights and how to proceed.

Why does information drop off after six years?

Because one of the main roles of a Credit Report is to allow lenders to assess the Creditworthiness of a potential customer, the Information Commissioner’s Office (ICO) has ruled that six years is a reasonable time period over which this should be assessed.

Any credit information recorded before this time is deemed irrelevant to the information assessed by lenders when they check your report, because it no longer represents a fair assessment of your financial situation.

If you are still repaying a debt that no longer appears on your Credit Report, in all likelihood you may still need to disclose this information to any potential lenders you approach as this will affect your affordability, which in itself will have an impact on your ability to take out credit.

To find out more information about any debts within the last six years, including your payment history and whether the account has entered default or if it has resulted in a CCJ, you can check your Credit Report with data from 4 Credit Reference Agencies with checkmyfile.

If you haven’t already, you can try checkmyfile FREE for 30 days, then for just £14.99 a month afterwards, which you can cancel online at any time or by phone or email.

Northampton Court CCJ – Why is it on my Credit Report?

If you’ve been issued with a CCJ, chances are that it could appear on your Credit Report as having come from Northampton County Court Business Centre (CCBC), even if you or the claimant have no ties with Northampton whatsoever.

Published on 2 Jan 2020 by Jamie Mackenzie Smith

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How Your Credit Score is Affected When a Default Drops Off

If you’ve got one default, you might be counting down the days until it is no longer reported to the Credit Reference Agencies (CRAs). But if you have more than one, will you see your Credit Score rise as each one drops off of your Credit Report?

Published on 31 Dec 2019 by Richard Catlin

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Does Statute Barred Mean My Debt is Written Off?

If you look around on the internet for debt advice you might see one questionable tip popping up from time to time: ‘don’t pay off your debts, wait six years for it to become statute barred and you’ll be home scot-free.’ If this sounds too good to be true, that’s because it is, and if you think it’ll be without consequence you could be in for a nasty surprise.

Published on 30 Dec 2019 by Tom Magor

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Understanding a default notice and what to do when one arrives

No one wants a default on their Credit Report, but sometimes there’s little you can do to prevent it. Perhaps your household income dropped due to redundancy, you’ve suffered an illness, or an unexpected large expenditure has cropped up. Whatever the reason, in times of hardship financial commitments are often among the first things to be affected.

Published on 23 Dec 2019 by Ben Ryland

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The Price of Bankruptcy

Katie Price, the former glamour model turned anti-bullying advocate, was ordered into bankruptcy on 26 November 2019 by the High Court. There may never be a ‘best time’ to enter bankruptcy, but the run-up to Christmas might be the worst.

Published on 11 Dec 2019 by Sam Griffin

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Do I Have a CCJ? How To Find Out

If you have a County Court Judgment (CCJ) in your name, it can have a serious impact on your Credit Score and ability to borrow for the entire time it is active, as well as potentially affect the outcome of the checks carried out by prospective employers, landlords and insurers.

Published on 7 Nov 2019 by Jamie Mackenzie Smith

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Does a Debt Management Plan Affect Your Credit Rating?

If you’re feeling increasingly overwhelmed by debt and aren’t sure what steps you can take next, the most important thing to remember is that there is plenty of help available and different solutions designed to get your finances back on the straight and narrow.

Published on 18 Jun 2019 by Kevin Pearce

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Late Payments & Defaults: What's The Difference?

When a lender checks your Credit Report, one of the most important elements it considers is payment history as reported to the Credit Reference Agencies. On a perfect applicant’s Credit Report, every credit account would be reported with a clean payment history, indicating that they are a low risk to the prospective lender, but in the real world this isn’t always the case.

Published on 23 Apr 2019 by Tom Blandford

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Do I Have a Default? How to Find Out

For lots of lenders, coming across a Default on your Credit Report is a troubling sign. It’s certainly more serious than a missed payment or arrears on your file, which are likely to have less of an impact on your chances of being approved. A Default represents a key moment in the eyes of a lender: it shows that on a previous credit agreement you stopped being a borrower and became a debtor.

Published on 29 Mar 2019 by Jamie Mackenzie Smith

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How Bankruptcy Affects Your Credit Rating

In terms of negative information that could appear on your Credit Report, evidence of bankruptcy or other forms of insolvency is about as serious as it gets and it’s likely to adversely affect your ability to take out new forms of credit for a considerable amount of time.

Published on 7 Mar 2019 by Tom Magor

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