Aged debt on credit report

[Sparky1979]

How long does a debt stay on your credit report?
I've heard that if the debt is approx 6 years old you don't have to pay it???

Thanks

[Ethel]

You've heard wrong. Debt does not conveniently disappear.

However, a debt cannot be pursued in court if there has been no acknowledgment by you of the debt for six years - it is statute barred.

So if a debt is five years old and you receive a demand for payment and you reply saying you can't afford to pay it, for example, it can be chased in court for a further six years.

[Reverandfunk]

Ethel I have not personally acknowleged my debt for nearly four years any post received at my old address is returned to sender, so would I be clear after 6 years?

[Sparky1979]

Thanks Ethel that's great.

Good question Rev, that's the situation I'm in!

What'dya reckon Ethel?

[Ethel]

I think debt avoidance is theft.

Well you did ask.

[Sparky1979]

So that's a yes then.

Thanks for your help Ethel, I hope we haven't offended you/anyone!

[Reverandfunk]

it cant be theft ethel because in almost 4 years no debt collectors have called, I have no ccjs and have not been declared bankrupt.

The fact is though the debt has not been acknowledged so would it be unrecovearble after 6 years?

[Ethel]

I think it is as bad as theft because you have had the benefit of something you have not paid the agree value for, whether that is a service such as a loan or goods.

Reverand - you have not honoured your agreed obligation to inform your creditors of any change of address.

The debt would not be unrecoverable per se, it would be unenforceable in the courts after six years.

It does not stop debt collectors trying to get the money out of you, and it will show on your credit history.

[Reverandfunk]

How long would it stay onm my credit history for

[tiggerblue10]

As previously said above, debt will not go away until you pay it off. Once the debt has been cleared in full your credit rating will still be affected or remain "bad" for 6 years form when you clear it. In other words you may not be able to get credit elsewhere for 6 years after the debt has been paid.

[Oneeyedvic]

As Ethel correctly states, a debt is Statute barred after 6 years if no contact has been made to try to secure the debt

Writing to your previous known address every 5 years will keep the debt active and not statute barred (irrelevant of whether you live there or not).

[Oneeyedvic]

and of course they will continue to add charges for the years that you have not been paying

[Hammer]

Vic is correct in that the creditor must acknowledge the debt at least every six years. They only need to send a letter, even to an old address if that's all they have, to start the clock again for another 6 years. Whether or not you acknowledge this is irrelevant.

After 6 years, the debt still exists, but is not enforcable through the courts, so if you choose not to pay there is nothing they can do.

[Sparky1979]

so does this definately remain on your credit report indefinately?
I've been informed that everything over 6 years 'drops off' the report irrespective of good or bad!!!???

[innocenti]

I am sorry but most of these answers are wrong.

Just because a company sends a letter to your old address does not mean that you have made contact. If you have not made any payments in 6 years or acknowledged the debt IN WRITING in 6 years then the debt is statute barred. They can write to you as many times as they like, this DOES NOT stop the debt becoming statute barred, ONLY you acknowledging the debt or paying before the 6 years is up will stop this.

A company can only keep a debt alive by getting a CCJ, sending letters will not keep a debt alive, and this does not reset the clock. Only MAKING A PAYMENT OR SENDING A LETTER SAYING THAT YOU DO OWE THE MONEY will reset the clock, other than a CCJ there is NOTHING a company can do to reset the clock.

Hammer - your answer is confusing. Once a debt reaches 6 years it is statute barred. But a creditor sending letters will not reset the clock (unless they get a CCJ).

The debt will always remain, the company just cannot take you to court and if they continue to harras then you can take steps to stop it happening.

[Pippa68]

I keep getting letters from a debt collection agency asking for apyment for something I have absolutely no knowledge of.

The only contact I have mede with them is to constantly ask for proof that I owe the money via statements..to date I have had no proof.

According to them as I had made contact with them and mentioned statute barred I am admitting the debt!

[Oneeyedvic]

innocenti - sory but you are wrong - a lender need only chase the debt at your last known address.

My previous company used to do this all the time and when we eventually found people (and they always do find them in the end), we would pursue the debt and we have had attachment to earning orders placed - so obviously the court agrees with us.

[innocenti]

You can only apply for the attachement of earning if you apply to the courts before the 6 years are up. Once the 6 years is up the court route is not available. You cannot go to court and say that the last payment was 7 years ago but we have been sending letters so it doesnt count.

My point is that you can send as many letters as you like but once the debt reaches 6 years without a payment or acknowledgement then it is statute barred. Simply sending letters to the last known address will not stop the 6 year rule.

[Oneeyedvic]

Sorry, but you are wrong - as I said I have had personal experience of this via the company I worked for.

[Oneeyedvic]

Oh - buy the way Gravitas - if you do that you will more than likely be found out and put onto CIFAS - the fraud database - this has no 6 year time span - once on there you will find it nigh on impossible to get credit.