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Deafult notice found on credit file
I recently found an upaid default notice for £110.00 from 2003 on my credit report, I don't think its owed should i contact the (supposed) creditor to sort it out or should I leave it as in August next year it will have been six years and i think it will be statued barred? (if i'm correct in what I'm thinking)
asked in fiance, money, credit



Aiming4777 answers:

It depends what you want to achieve. The Limitations Act 1980 outlines the time limit within which a creditor can chase a debtor for outstanding debts. Should the creditor fail to maintain contact with the debtor, for a period of 6 years or more, it is possible to claim that the outstanding debt is "Statute Barred" under the conditions of the Limitations Act 1980.

If you wish to pay off the debt, you will obviously need to contact the creditor. However, admitting to the debt now and paying it off will not remove it from your credit rating report as it will still have been paid in arrears. If you try and establish for sure that you do not owe the amount stated, it may turn out that you do and you will then have prevented the debt from becoming time barred.

From this, it would seem that the ideal solution is to wait until the six years have elapsed and then enquire with the creditor. However, an unsecured debt will still exist and creditors will still be entitled to chase the debt indefinitely (even after the debt has become Statute Barred), however they will not be able to use the legal system to recover the monies. Certainly, it will still appear on your credit report as an unpaid debt whether it is time barred or not.

The only sensible way to have this removed from your credit report is to wait until the debt is statute barred and dispute it with the creditor. If they agree that the debt is not owed, you can then ask to have it removed from your credit rating.


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