Active discussions

Meet the Other Phone. Only the apps you allow.

Meet the Other Phone.
Only the apps you allow.

Buy now

Please or to access all these features

Talk
Chat

Join the discussion and chat with other Mumsnetters about everyday life, relationships and parenting.

Original poster

Unpaid credit card

11 replies

bitzy12 · 23/04/2018 18:33

What happens if you don’t pay a credit card? A member of my family had a credit card about 4 years ago I think. Never paid it. Moved house. They’ve since tracked him down at his current home. Sent a debt collecting letter. He’s just ignoring this one. The debt he owes is now 4 times what he originally owed. I’ve tried talking him into paying it. The letter mentions setting up a direct debit at an affordable amount. But nope, he’s a stubborn twat that’s just going to leave it.

What could happen to him if he just leaves it? He already has poor credit due to it. By the way, this person is not my spouse as no doubt people will think it is. It is a close family member who’s had a really tough few years and just lost himself. I’ve only seen it as I popped round to borrow something and it was there on his kitchen table.

OP posts:
Counter27 · 23/04/2018 18:36

Debt collectors at his door? I think there is something called a wages arrestment as well that can be done. Goes through the court and the money would be automatically taken from his pay.

Not sure on timelines for either of those though. If the debt was significant enough he could file for bankruptcy although I would have thought that should be a last resort as it makes life very difficult for years afterwards.

Smeddum · 23/04/2018 18:39

If he’s in England and Wales then high court enforcement people could come and force payment or take his things. If he’s in Scotland, they can’t. Unless it’s council tax.

Louislovesmud · 23/04/2018 18:53

If it's unsecured debt then they can pass it to a debt collectors but cannot enforce the debt (i.e. can't arrest his wages). If it's secured they can take extra steps described above.

It's worth knowing that if your relative has ignored this debt entirely then after a period of time it becomes statute barred (England, Wales) / Extinguished (Scotland) which means the creditor has failed to collect the debt within a fair and reasonable period. In most cases, the debt then gets written off (there are some creditors who would still try to reclaim it)

Interested in this thread?

Then you might like threads about these subjects:

Debt General money
Louislovesmud · 23/04/2018 18:57

Sorry I shouldn't have given arrest wages as an example there - it is one of the actions they caught take. Been years since I worked in that field...

Original poster
bitzy12 · 23/04/2018 19:00

Thanks, I just want to let him know what exactly could happen to him as he just thinks if he leaves it long enough, it will just go away and they will write it off.

I’ve just never had any experience of this. I did think that for credit card debt, bailiffs can’t get involved.

It’s not my problem at the end of the day but I’d like to help if I can

OP posts:
Louislovesmud · 23/04/2018 19:00

If it were me, I'd encourage him to contact Step change who can contact the creditor on his behalf and set up a payment plan, they can always communicate with the debt collector if they now own the debt.

Smeddum · 23/04/2018 19:02

I’ve just checked and you’re right HCEO can’t enforce credit card debt! Sorry Blush

Smeddum · 23/04/2018 19:02

Although I think the best advice is that ignoring it is never good in the long run. Do the interest and late payment fees just keep accumulating?

Louislovesmud · 23/04/2018 19:03

If you're trying to make him see all the ramifications then he'll have a default showing on his credit file for the next 6 years following him breaking his credit agreement if he's based in England which will significantly impact ability to get credit. Genuinely get him to give step change a go - once they start dealing on his behalf he only needs to speak to them

Louislovesmud · 23/04/2018 19:06

Once you "default", usually 3 months after you stop paying legally all fees and interest have to stop being charged. Obviously the total balance to that point is still payable.

When you default the credit card company will basically be looking for you to pay it in full, and will look to agree a payment plan of whatever's affordable at that point to get as much repaid as possible. They'll want to review that regularly. Some creditors can be pushy though, which is why step change or cab are so useful

Original poster
bitzy12 · 23/04/2018 19:10

Ok thank you. Yeah I think all the interest has stopped on it as far as I know. But what he owes is a hell of a lot more than the actual credit card bill. Thing is, he could pay it. He’s not stuck for money now. He just thinks as it’s from years ago, it will eventually go away.

All this has been helpful though, thanks. I mention step change to him

OP posts:
New posts on this thread. Refresh page
Swipe left for the next trending thread