If some debts are not on my credit file.... can they be pursued?

Question

My children's dad left us about 4 years ago with about £8500 of debt he had run up. I have paid about £6000 off but the rest left is mainly in catalogues, but all in my name. Needless to say, I tried to keep up the payments but couldn't and about 5 went to Moorcroft Debt Recovery, to which I am still paying now. I have paid one of the 5 debts in full and have checked my credit file with Experian and Equifax last night and only 1 debt with Moorcroft is listed on both files.

In January, I telephoned Moorcroft and asked for settlement figures on all my debts with them, and the guy on the phone said "If you have other debts with other companies, I would advise you to pay them first and come back to us later"

I guess my question is, why would only 1 debt be listed on my credit file? If I pay off all the other debts, is there even a record that I have paid them? or even if I don't pay them, will there be no record of that either? and why did the guy say that on the phone?

Answer 1

Speak to citizens advice

Answer 2

Hi, I worked in finance for 3 years and then debt recovery for 3 years, however I'm Australian so I don't know your exact laws. All credit it files work the same, a credit file only lists the debt of which you've gone into default (payments have gone into arrears). Your credit file does not list all your debts unless an organization to which you owe money too, lists you as a result of breaking your contractual agreement. debt recovery agencies buy debts from finance and telephone companies in bulk, so they are inundated with debts that are very old or are too small for them to economically viable to pursue. Agencies will wof them (write them off) usually if you are not contactable after three tries and are less then $1-$2000. so some of your debts may have been wof'ed'. Another possibility is this, debts have what's called a statute of limitation in which there is a certain period of time in which they can legally pursue a debt. depending on the laws that govern your state this can range between 2 years to 7 years usually. These debts will usually drop off your credit file too. Hope I could help :)

Answer 3

Not everything is reported to credit agencies, but if you do not pay them, could still show up. It is best to pay what ever you can off regardless if it is on your credit report otherwise next month or next year it will be on there.

Answer 4

my advise, pay only those debts that are on your credit report.

Answer 5

Many companies will just write a loss on a dept after a period of time.  The figure they will never get it so they are spending good money trying to collect on something they will not see.  They will not show up as a dept owed, but will reflect poorly on your credit rating as they show as an unpaid debt.

Answer 6

I assure you, the people you owe money to know EXACTLY how much you owe.

I would assume if the credit reporting agency is a private company and not some sort of government agency, that creditors are not required to report any debts you owe them to the credit reporting service.

That doesn't mean they won't report them eventually, or that you aren't responsible for those debts.  Their rules as to when they report debts may be different than normal.  

From the text of your question, I assume you are in Britain, not the US.  While my experience is with US credit.  I also assume that when you take on a credit debt in Britain, you assume a legal obligation to pay.  If so, then ALL your creditors can pursue you through the legal system regardless of their reporting status to another private company.

Answer 7

Yes I know this company! I would imagine if you have an agreement to pay and are sticking to it they probably wouldn't bother notifying the credit ref agency unless you default badly and even then it probably just causes more work for them so may be they wont bother.  Can't answer why the guy on the phone says that but can only be good news for you.  If you pay off all your debts and it still shows on a credit ref agency you can write to them and get it amended or you can add a note on to say you have paid. If your debts do not show on the credit ref agency thats great noone needs to know!

Answer 8

This is quite easy all debt isn't treated equal and can be reported late or sold over to agency after agency before it appears on your credit report but that doesn't mean that you still don't owe them.  I am sorry about the situation your husband put you in but if you know in your heart that you owe them do the right thing and pay them off.