Credit card debt.

[UptheDeise]

Hi all,

A friend of mine got into debt with his credit card. He lost his job and for other reasons, he couldn't afford to pay off his debt of around €4,000.

He did exactly what an ostrich would do and buried his head in the sand (metaphorically speaking of course). He ignored phone calls, letters from the bank, debt collector and finally solicitors letters.

This went on for just over a year and then it stopped. He told me the last Letter he received was March 2015. He was never brought to court.

The questions I have are these:

Why wasn't he brought to court?

Is his credit record blemished and for how long?

Could he still actually be brought to court or has the time period elapsed?

Regards.

UTD

 

[elcato]

He may have not turned up in court when called if he was ignoring the letters. They may have got a judgement against him in his absence but probably not. He probably has a mark on the credit rating which lasts about 7 years or so. Does he have any assets like a house ? Chances are they have just decided to leave it a while and will then start again in a while to see if they get a response. They can issue proceedings within a 5 year period of last contact I believe. If he engages they will start the process all over again though. Does he have the funds now to pay it off and does he want to get the monkey off his back ?

 

[UptheDeise]

He may have not turned up in court when called if he was ignoring the letters.

He never got a letter summoning him to court, just letters that threatened to take him to court.

They may have got a judgement against him in his absence but probably not.

Is there anyway he could check for this?

He probably has a mark on the credit rating which lasts about 7 years or so.

Will he not have to clear his debt first and then after seven years his record is wiped clean?

Does he have any assets like a house ?

No.

Does he have the funds now to pay it off and does he want to get the monkey off his back ?

Yes, he wants to pay it back. We were in the pub last night and that's when he brought it up. He's coming into money in September and he'll pay it back then.

 

[elcato]

The credit rating is cleared after seven years whether he pays it or not. If it were me I would ignore them till they get in touch again. The damage to his rating is done now and paying back will not change that. I would hold the money for now and if they get in touch tell them you have come into a few grand and could afford to pay 2k as full and final settlement (and telling them you are going abroad to work in afar away land in two weeks so you need an answer quick). If he really wants to tidy it up then I suggest he write directly to the bank that gave him the CC in the first place with a view to settling your debt.

 

[UptheDeise]

The credit rating is cleared after seven years whether he pays it or not. If it were me I would ignore them till they get in touch again. The damage to his rating is done now and paying back will not change that. I would hold the money for now and if they get in touch tell them you have come into a few grand and could afford to pay 2k as full and final settlement (and telling them you are going abroad to work in afar away land in two weeks so you need an answer quick). If he really wants to tidy it up then I suggest he write directly to the bank that gave him the CC in the first place with a view to settling your debt.

Thanks for the info, you've been really helpful. May I just confirm one more thing. I understand he's credit rating is tainted for the next seven years whether he pays it off or not, however, if he does pay if off in full, will this be reflected on his credit record?