ICB Report / Reporting after “Settlement” noted

H

HeadMelted

Registered User
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Hi all, I’m looking for a bit of advice on my ICB Report and my defaulted mortgage from 2013.

I defaulted in 2012.
Voluntarily surrendered to IBRC in 2013 (no court action)
House was sold in Dec 2013.
Residual Debt outstanding of €190K.
I haven’t heard a squeak from bank since, even though they had my forwarding address.

I just checked my Credit Report and “Settlement” in noted by a new fund (I’m afraid to name them) since March 2021.
It remains in the “Active” section on the report.
Last Payment Due “0”
Next payment due “0”
Balance Due “190K”.

I know they are statute barred from chasing me from the residual debt at this point in time, but I’m wondering if/when this might come off my Credit Report? March 2026?

Thanks to anybody who can give me a steer.
 
Jim Stafford said:
They are not yet statute barred. Mortgages are generally singed under "seal", which means the Statute is 12 years.

Jim Stafford
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Thanks Jim,

I thought the Statute of Limitations gave the banks a 6 year timeframe to take the case to court and 12 years from the case ruling to enforce judgement orders?
 
What is the interaction between the Central Credit Register and being statute barred?

They might not be able to recover it when it is eventually statute barred, but does that mean that it has to come off you CCR?

Brendan
 
Brendan Burgess said:
What is the interaction between the Central Credit Register and being statute barred?

They might not be able to recover it when it is eventually statute barred, but does that mean that it has to come off you CCR?

Brendan
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Hi Brendan,

I think that is the question I’m asking and where I am seeking guidance.

While the bank may have no route to recover, will they just leave it on the report to “teach me a lesson”?

There is no other rationale for same, only to tell other lenders that a default occurred (a decade ago). Some might say that’s the role of the CCR, but I’m unsure if it’s in line with the CCRs Retention of Data policy (5 years)
 
HeadMelted said:
Hi Brendan,

I think that is the question I’m asking and where I am seeking guidance.

While the bank may have no route to recover, will they just leave it on the report to “teach me a lesson”?

There is no other rationale for same, only to tell other lenders that a default occurred (a decade ago). Some might say that’s the role of the CCR, but I’m unsure if it’s in line with the CCRs Retention of Data policy (5 years)
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There are 2 sides to this coin. From your perspective (the borrower) the relevant date is 2012 but from the lenders perspective they settled in 2021. Given the aim of the CCR is to provide information to future lenders on your previous ability to service debt I would think 2021 is just as important as 2012. In that regard 2026 seems in line with the CCRs data retention policy.
 
skrooge said:
There are 2 sides to this coin. From your perspective (the borrower) the relevant date is 2012 but from the lenders perspective they settled in 2021. Given the aim of the CCR is to provide information to future lenders on your previous ability to service debt I would think 2021 is just as important as 2012. In that regard 2026 seems in line with the CCRs data retention policy.
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Thank you @skrooge. You’re absolutely right with my hope of it being from 2012, but I’m even happy with 2026.

As it is still in the “active” section of the Report, do you think it will actually fall off the report in 2026?
 
HeadMelted said:
Thank you @skrooge. You’re absolutely right with my hope of it being from 2012, but I’m even happy with 2026.

As it is still in the “active” section of the Report, do you think it will actually fall off the report in 2026?
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How 'settled' is the settlement? If you've not engaged or indeed been contacted its hard to see what this actual means when it's also described as active.

If you haven't been declared bankrupt or underwent a PIA I'm not sure much has changed -in terms of your debts - in the last decade.

Retention of Information

Information for consumers about the Central Credit Register
www.centralcreditregister.ie www.centralcreditregister.ie

"Where all liabilities under the loan agreement have been discharged, the credit information is held on the Central Credit Register for a period 5 years after the loan is discharged"

but given the €190k has not been discharged it could be the case that this will be present on your CCR record indefinitely.
 
skrooge said:
How 'settled' is the settlement? If you've not engaged or indeed been contacted its hard to see what this actual means when it's also described as active.

If you haven't been declared bankrupt or underwent a PIA I'm not sure much has changed -in terms of your debts - in the last decade.


"Where all liabilities under the loan agreement have been discharged, the credit information is held on the Central Credit Register for a period 5 years after the loan is discharged"

but given the €190k has not been discharged it could be the case that this will be present on your CCR record indefinitely.
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Thank you for reply @skrooge.

That’s a question/concern I have too….. How settled is “settlement” on the CCR Report? and is it likely to be recorded indefinitely?

I’m thinking that because the next payment section reads “0”, that it might fall off at the five year phase.

I emailed the CCR for guidance and they weren’t able to answer the question.

I didn’t hide from the banks for the decade and remained at the forwarding address I gave them. I did receive a letter from IBRC and the Land Registry when the house was sold, and the only way they could have had my address was from the bank.
 
HeadMelted said:
Thank you for reply @skrooge.
I didn’t hide from the banks for the decade and remained at the forwarding address I gave them. I did receive a letter from IBRC and the Land Registry when the house was sold, and the only way they could have had my address was from the bank.
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You didn't hide but at the same time you don't appear to have been proactive in dealing with the issue either. The net effect would appear to be the debt is still there - albeit with some reference to a 'settlement' that doesn't actual reflect any negotiated agreement.

I suppose the question is how badly do you want/need this resolved? Is it worth waiting five years on the off chance it might be removed from your CCR? Is it worth engaging with the debt holder to reach an actual settlement or would the status quo of having an indefinitely impaired credit report be okay?
 
skrooge said:
You didn't hide but at the same time you don't appear to have been proactive in dealing with the issue either. The net effect would appear to be the debt is still there - albeit with some reference to a 'settlement' that doesn't actual reflect any negotiated agreement.

I suppose the question is how badly do you want/need this resolved? Is it worth waiting five years on the off chance it might be removed from your CCR? Is it worth engaging with the debt holder to reach an actual settlement or would the status quo of having an indefinitely impaired credit report be okay?
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Agreed @skrooge, I didn’t hide, but wasn’t proactive in dealing with it either, post voluntary surrender.

Prior to the voluntary surrender, I was dealing with IBRC, who were engaging. Once my surrender happened, IBRC went into wind-down, then closed and only via my CCR have I found out the fund who now own my loan.

To answer your question, I’m looking for guidance on what happens in 2026, will the debt noted as “Settlement” fall off the page?
I’m happy to wait until then, if I knew that would be the case. If not, I’m not sure what to do.

As my circumstances have changed dramatically over the past decade (re-educated, permanent state employment on a very good salary, no dependants, early 40s) I’m hoping to be in a position to acquire a mortgage (est. €200K) to buy out the family home in the next number of years. I also have savings built up.

With the BIG exception of the 2012 defaulted mortgage, I’d be approved for a loan of €420K (not that I’d ever take that amount) so it’s guidance on what will happen in 2026 is my concern. I know I’ve sat for a decade, if I wait another two years, will I then realise it was another wasted two years. I’m presuming, although statute barred, a mortgage lender will not look at me.

Apologies for the long blurb!
 
HeadMelted said:
Agreed @skrooge, I didn’t hide, but wasn’t proactive in dealing with it either, post voluntary surrender.

Prior to the voluntary surrender, I was dealing with IBRC, who were engaging. Once my surrender happened, IBRC went into wind-down, then closed and only via my CCR have I found out the fund who now own my loan.

To answer your question, I’m looking for guidance on what happens in 2026, will the debt noted as “Settlement” fall off the page?
I’m happy to wait until then, if I knew that would be the case. If not, I’m not sure what to do.

As my circumstances have changed dramatically over the past decade (re-educated, permanent state employment on a very good salary, no dependants, early 40s) I’m hoping to be in a position to acquire a mortgage (est. €200K) to buy out the family home in the next number of years. I also have savings built up.

With the BIG exception of the 2012 defaulted mortgage, I’d be approved for a loan of €420K (not that I’d ever take that amount) so it’s guidance on what will happen in 2026 is my concern. I know I’ve sat for a decade, if I wait another two years, will I then realise it was another wasted two years. I’m presuming, although statute barred, a mortgage lender will not look at me.

Apologies for the long blurb!
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You are right to ask the question. Looking through old posts it does look like your past will simply disappear after 5 years.

In particular post 6 in:

What is the statute of limitations on a mortgage?

I last made a payment on a buy to let mortgage in August 2013 . The bank sold the house in September 2016. Does the statute of limitations start from my last payment or does the clock reset from when they sold the property? Also,I always assumed the time limit was 6 years ? But now not...
www.askaboutmoney.com
 
On the October 2021 “Guidance on the CCR” book, p52, Domain Values, it’s says “Settlement-A settlement on the amount owing has been agreed with the CIS and the account is to be closed. To note: This status should not be used where a CIS has simply repaid a performing debt in advance of the maturity date.“

So, am I being too hopeful in thinking that it will indeed be closed and off the CCR 5 years post the”Settlement” being noted?
 
HeadMelted said:
Thanks @skrooge. That post (#6) seems to think it will remain indefinitely?
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Yes that's what I had in the back of my mind.

HeadMelted said:
On the October 2021 “Guidance on the CCR” book, p52, Domain Values, it’s says “Settlement-A settlement on the amount owing has been agreed with the CIS and the account is to be closed. To note: This status should not be used where a CIS has simply repaid a performing debt in advance of the maturity date.“

So, am I being too hopeful in thinking that it will indeed be closed and off the CCR 5 years post the”Settlement” being noted?
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You'll know better than anyone here but given the lack of interaction between the two parties I don't see how anything can be claimed to be agreed.

We're both trying to second guess how the CCR works. You could wait and see but if it's not a positive outcome it could be close to a decade before your credit record is cleared up.

Perhaps the CCR themselves can provide an answer to what a report with similar characteristics would look like - all else being equal - in five years time. I.e., what does settlement mean and does it imply a clean record after 5 years in all instances.
 
skrooge said:
Yes that's what I had in the back of my mind.


You'll know better than anyone here but given the lack of interaction between the two parties I don't see how anything can be claimed to be agreed.

We're both trying to second guess how the CCR works. You could wait and see but if it's not a positive outcome it could be close to a decade before your credit record is cleared up.

Perhaps the CCR themselves can provide an answer to what a report with similar characteristics would look like - all else being equal - in five years time. I.e., what does settlement mean and does it imply a clean record after 5 years in all instances.
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That’s actually what I might do, email the CCR with that direct question: “What does settlement mean and does it imply a clean record after 5 years in all instances?” Thank you!
I will do that and keep you in the loop, If the answer is unfavourable, I might consider legal advice on an explanatory note on my CCR record.

Indeed, no contact between both parties for a decade. To be honest, once IBRC was wound down, I didn’t know who to contact, but would I have made contact? probably no, so my hands are up for that!

Hindsight is great, I should have gone one of the insolvency routes back then when I hadn’t a bob to my name, and I’d be clear now.
 
Even if the owners of the €190k debt chase it up by litigating, and the case is successfully defended by the OP, it would simply mean that the owners of the debt can't legally enforce it. It doesn't mean the debt goes away and the owners can still try and get payment by writing to or ringing the OP. The OP's central credit record will continue to show this debt indefinitely until a settlement is reached.
 
demoivre said:
Even if the owners of the €190k debt chase it up by litigating, and the case is successfully defended by the OP, it would simply mean that the owners of the debt can't legally enforce it. It doesn't mean the debt goes away and the owners can still try and get payment by writing to or ringing the OP. The OP's central credit record will continue to show this debt indefinitely until a settlement is reached.
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Thank you @demoivre !
They are barred at this point by Statute of Limitations, I presume.


I have checked with the CCR Guidance Document, all 125 pages, and it only references “Settlement” five times.

In my case, “Settlement” is noted in the Credit Status of my report, and the Guidance implies that when this is noted the account is to be closed, so I’ve now taken @skrooge advice and written to the CCR to ascertain if the full record of this debt will be removed after five years.

I’m afraid that you may be right, in terms of it staying indefinitely or until the planned maturity date. So fingers crossed I get a favourable response from CCR. Surely somebody somewhere knows!
 
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