AIBU?
To stop paying old debt
OvertheRainbow2U · 16/05/2021 12:02
Hello all, I have been paying old debts from around 20 years ago monthly for many, many years. It is a small amount that I am able to afford. The debt clearly gets sold on regularly as I am often offered a reduction from different companies if I pay a certain percent in full and they will wipe the rest. I am in no position to be able to do this. My question is - should I just stop paying now as it has been so many years? I will add that I have had awful credit ratings for the same amount of time due to the debt. TBH I ws only paying it to rid my terrible credit rating which never happened (it is old ,now non existent credit cards that were literally thrown at me when the kids were young and I was broke (still am btw:)) I'e heard about the debt being spent after 6 years - is this true? Also will I be in breach of anything if I stop? Any info gratefully received thank you
TheCheeseBadge · 16/05/2021 13:04
Debts are only spent 6 years after the last payment was made. If you stopped paying it now you will run the risk of it going to court. I would think you would have a better chance of wiping the debt if you speak to a debt advice company - have your payments over the last 20 years exceeded the amount of the original debt? Were excessive amounts of interest or late payment fees added on to it? You might have a case to ask for the debt to be wiped if so and a debt advice company or charity could possibly negotiate on your behalf.
ConfessionsOfAChocoholic · 16/05/2021 13:37
If you have been on a payment plan for more than 6 years then the debt should no longer be showing on your credit file as you have defaulted on the original agreement.
Have you signed up to credit reference agencies and viewed your credit report? You can do this for free- Credit Karma holds info from Transunion and ClearScore holds info from Equifax. Ignore the scores, the data they hold is the important bit.
ILoveFlumps · 16/05/2021 13:37
@User7312019
Debts are wiped as soon as they've been paid, not 6 years after?
I also thought that after 6 years of no payments/contact they were wiped but happy to stand corrected.
mowglika · 16/05/2021 13:41
OP ask for a credit card agreement from the debt collection agency that’s administering it now. If they can’t produce the agreement which is doubtful since it’s 20 years old, you can stop paying. They will continue to harass you but they cannot take you to court over it.
Alternatively if they have no agreement, offer them a low offer of maybe 10% of the debt to close the debt. Look on money saving expert for guidance and sample letters on this.
LeSquigh · 16/05/2021 13:41
You are right, non priority debts (things like credit cards, loans, overdrafts, catalogues) all become statute barred after 6 years of the last time you acknowledged the debt (so 6 years from now if you are making payments). After that time the debt is still there as such but they are unable to legally enforce them. I had a lot of debt when I was younger, and moved around a lot so whilst this morally may not be right, because I couldn’t afford to pay them, all of my debts are now statute barred and unable to be chased. I can now get credit again, not that I really do.
ThatOtherPoster · 16/05/2021 13:41
Don’t risk getting a county court judgement. I got one when I was 20 and honestly it’s a NIGHTMARE. You can’t do anything. And you still have to pay the money back.
I wouldn’t even consider bankruptcy or the IVO things either. Honestly, the best thing is to keep paying it back, depressing though it is.
OwningAllMyMistakes · 16/05/2021 13:41
A debt cannot be asked to be repaid if you have had no attempt to pay it or haven’t acknowledged the debt for 10years & in that time you haven’t responded to any calls email or letters.
If after 10 years a company contacts you then you are legally able to challenge this and report them to the financial ombudsman for harassment for the debt that legally is written off.
Unfortunately you have been paying the debt and it will still be entered on any credit reference and affect any rating.
It’s better to pay your longstanding debt regain credit status and have peace of mind.
You need to pay what you owe or risk a CCJ.ThatOtherPoster · 16/05/2021 13:43
Hi Op, did you investigate whether you could claim PPI back on these debts? I received several thousand pounds doing this.
This is a great idea! Can you still reclaim PPI? Wow, that could wipe your debts and leave you with money left over. My DH got £12k back from PPI.
DentonsFringeArnottsWaistcoat · 16/05/2021 13:46
Debts are wiped as soon as they've been paid, not 6 years after?
Not with regard to your credit score. If you e defaulted on any debt - including not paying, late paying, under paying - that information stays on your credit history and affects your score for six years after you have finished paying it off. I assume this is what the OP is getting confused over.
I also thought that after 6 years of no payments/contact they were wiped but happy to stand corrected
If, in the unlikely event that no debt collector contacted you within a certain period of you not paying off debt, there may be a statute of limitation on recovering the debt, but only in certain circumstances (like you could have reasonably claim you were unaware you owed the money). Also it usually only means that the creditor cannot bring the court in to play to recover the debt. The debt isn’t ‘wiped’ it still remains outstanding and would still affect your record.
bp300 · 16/05/2021 13:50
@ThatOtherPoster
This is a great idea! Can you still reclaim PPI? Wow, that could wipe your debts and leave you with money left over. My DH got £12k back from PPI.
The deadline was nearly 2 years ago.
GingerFoxInAT0phat · 16/05/2021 13:51
Make a post on money saving expert, they usually have great advice about debts. I feel like I read something about when your debt gets passed on (especially when it’s old debt like yours) they need to be able to prove they have all the details from the original debt. They will know much more about this over on the MSE forums.
Sparklesocks · 16/05/2021 13:53
I would be concerned about them sending round bailiffs etc OP, and they’ll potentially increase the debt to cover those costs. I think it would be best to speak to a debt charity or the CAB to see what options you may have. But don’t just stop paying.
lucyslocketinherpocket · 16/05/2021 13:54
Consumer credit debts are statute barred (which doesn't not mean you don't owe them, just that you can't be pursued in court for them) six years after you last acknowledged them. Acknowledging them means admitting to them in a way which can be proven or making a payment. So if you stopped paying now, and they didn't make it to court within six years then they couldn't pursue you further for them.
They would also remain on your credit file for six years. Longer unless you disputed it but you can apply for a statue barred debt to be removed and they should be.
Why on earth should you not pay them back? You owe the money, so pay it!
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