Credit Rating/Debt Woes

LegacyUser

I know this should probably be in finance or something, but wanted to post unregged. Anyway, mods can move if they deem necessary. Here's the story;

Back in 1997 I ran up a credit card bill of about £1,500, and phone bills of maybe £200 a piece with Esat and Eircell. I forgot about them, and threw away/destroyed the credit card.

Since then i've lived in numerous different places, including abroad, and I've been told, that after 5 years your credit rating is cleared??! Haven't been able to verify this. Anyone?

I returned to Ireland in 1999, and have since opened 2 new bank accounts, one I no longer use, and about 8 months ago opened up a new BOI account. Got myself a laser card, an overdraft, and have a joint savings account with my girlfriend. No worries.

I had a relative have a friend of theirs check out my credit rating and apparently I'm clear. So, I applied for a Mastercard (not Visa as I had before) with my bank and was refused. Grand, so apparently I'm not clear. My relative checked again and said, no you should be clear. So I tried for finance on a home entertainment setup in Dixons - I was refused. Didn't get a reason.

I'd like to know, has anybody else gone through a similar situation, in trying to clear themselves of debt/restore their credit rating. How would you go about this? Anybody any experience of it?

I've checked www.oasis.gov.ie and www.ifha.ie and I'm going to post off for my credit rating myself, and see where I can take it from there, but can anyone offer any advice or insight on this?

Thanks, much appreciated!

K!LL!@N

Did you pay the money you owed back?

Beruthiel

Originally posted by InDebt
I know this should probably be in finance or something, but wanted to post unregged. Anyway, mods can move if they deem necessary

you would probably get the answers you require in Bus/Eco/Fin,
would you like me to move it now that you have posted it in here unregged, or did you intend to make further comments?

Have you asked your Bank the reason for the refusal?
They should tell you.
If the debt is still recorded which obviously it is, I'm afraid you have no choice but to ask your bank for a loan to clear it off.
Otherwise, your poor credit rating is going to damage your chances of getting a mortgage.
It may not damage your chances of getting a small term loan though

mm

LegacyUser

Originally posted by K!LL!@N
Did you pay the money you owed back?

No I didn't. Obviously! That's what I'm wondering about the 5 year thing. Is it true?

beruthiel, you can go ahead and move it, I think I've explained my situation clearly. Cheers.

rachel

Obviously an adverse credit rating won't help but that isn't the only thing that lenders will look at.
Repayment capacity is another big one.

You are also entitled to reasons for a decline so if that didn't happen too long ago then you should get back on to them and ask for the reason(s).

As for the 5 yr thing, you may be cleared from the ICB as having had bad debts (that I don't know) but the bank/credit card co. probably wrote you off as a bad debt and have it on record still.

BuffyBot

Your record with a credit reference agency may differ to the records of each finiancial institution - so yes, you may get refused even if the debt has been cleared due to bad records.

Specky

So let's get this straight...

You spent a load of money that didn't belong to you, you left the country without paying it back, now you've returned hoping that everyone will have forgotten about it and forgiven you and now you'd like to do it all over again....

Well I for one will not apologise for being less that sympathetic to your predicament.

I certainly don't claim that I've never had debt problems in the past but the solution I've found works best (both for my credit rating and my conscience) is to pay off the debt.

Oriel

As far as I know, banks and the like won't just give out credit to anybody who doesn't have a bad history.

Like anything else, you have to work up a *good* credit history (paying bills on time, repaying loans etc) before they'll give you anything.

It's not just a case of not having a bad history.

...maybe I'm wrong though.

Victor

Originally posted by rachel
As for the 5 yr thing, you may be cleared from the ICB as having had bad debts (that I don't know) but the bank/credit card co. probably wrote you off as a bad debt and have it on record still.

For this type of debt, the statute of limitiations (Statute of Limitations Acts, 1957, 1991, 2000) is 6 years, not 5. And they can keep records for as long as is reasonable (Data Protection Act). you could just pay off the debt and clear your name.

1957 act http://www.irishstatutebook.ie/ZZA6Y1957.html
1991 act http://www.irishstatutebook.ie/ZZA18Y1991.html
2000 act http://www.irishstatutebook.ie/ZZA13Y2000.html

eth0_

I also have no sympathy for you. You're a thief, basically. If you can't take responsibility for a debt of two grand, how the hell can you handle a mortgage!
What I find odd is why there's no warrant or something for you, if you're using the same name and the bank has given you a laser card surely something must have come up on your credit records saying you're a bad debtor and owe X amount?

As to why you're not now getting credit, it's either down to the fact that if your credit rating HAS reset, it's hard to get credit without having some recent credit history.
OR, your bad debt is still on your credit history. As someone already said, it takes SIX years for something dodgy to clear off your credit history, not FIVE! And getting turned down for credit also goes on your credit rating, so it looks like you've really shot yourself in the foot there mate!

And lastly, a bad credit rating sticks to an address as well as your name, so because of you, your previous address in Ireland before you left the country will be tarnished with your bad debt. If you have listed this address as a previous address when filling out an application for credit, it counts against you.

Why don't you get a copy of your credit rating, costs 6 euro (best make sure your cheque to 'em doesn't bounce) and then you can see the whole sorry mess in black and white. And then maybe you can do the decent, grown-up thing and take responsibility for your debt and repay it!

spongebob

Originally posted by Sinecure
Like anything else, you have to work up a *good* credit history (paying bills on time, repaying loans etc) before they'll give you anything.

It's not just a case of not having a bad history.

...maybe I'm wrong though.

You are right, getting and paying back small loans, getting bigger over time , gets you a credit score.

If you never borrowed 200 and cleared it it is hard to get 5000 for starters.

The scum end of the market (finance companies aka the never never) score people who pay their debt back early lower than those who regidly stick to their terms . Banks like it though, banks are not the scum end of the market I find.

M

SCULLY

Originally posted by eth0_
I also have no sympathy for you. You're a thief, basically. If you can't take responsibility for a debt of two grand, how the hell can you handle a mortgage!
What I find odd is why there's no warrant or something for you, if you're using the same name and the bank has given you a laser card surely something must have come up on your credit records saying you're a bad debtor and owe X amount?

As to why you're not now getting credit, it's either down to the fact that if your credit rating HAS reset, it's hard to get credit without having some recent credit history.
OR, your bad debt is still on your credit history. As someone already said, it takes SIX years for something dodgy to clear off your credit history, not FIVE! And getting turned down for credit also goes on your credit rating, so it looks like you've really shot yourself in the foot there mate!

And lastly, a bad credit rating sticks to an address as well as your name, so because of you, your previous address in Ireland before you left the country will be tarnished with your bad debt. If you have listed this address as a previous address when filling out an application for credit, it counts against you.

Why don't you get a copy of your credit rating, costs 6 euro (best make sure your cheque to 'em doesn't bounce) and then you can see the whole sorry mess in black and white. And then maybe you can do the decent, grown-up thing and take responsibility for your debt and repay it!

Good post - my thoughts exactly

Sleipnir

I think you may have the wrong impression about "the debt being written off" and "it takes 6 years for a bad debt to be cleared from your credit history"
If you paid the debt off in full RIGHT NOW, it would take 6 years for this bad debt to be cleared off your record.

1.) You run up 3 grand on your credit card.
2.) You leave the country without paying it.
3.) After trying to contact you for a certain period of time, the bank write it off as a bad debt.
This doesn't mean that the erase the fact that you owe them money, just that the bank aren't counting on getting it back - a bad debt!

If you came home, contacted the bank and they said
"you owe us three grand." You pay them back in full.
The bad debt will be on your credit history for 6 years after that point.
After 6 years, and assuming you've been good from that point on, it's cleared off your credit history.

They don't write off the money you owe them after 5 or 6 years.
That's like a Carlsberg ad!
Otherwise I'd stop paying off my debts right now.

spongebob

The Bank would have sold the debt when it wrote it off, it was sold to a skangery debt recovery agency at 10% of face value or so.

Once the skangery debt reecovery agency find out where you live then you will quickly find out that you now owe THEM the money instead.

M

DaithiSurfer

Thats right. Until you pay off the money you're credit rating will not begin to go up.
Also there is more than one credit agency. You might be clear in one but not in others.
They pass the data on to each other.
Also if you ever apply for a mortgage with your gf you will also tarnish her credit rating.
Basically you're ****ed for ever borrowing money again.

Once the debt recovery that now owns your debt finds you (and they will if you keep applying for loans with your current address on them) you are in the deepest pile of **** anyone could ever experience.

I think its normally more than 10% interest compounded. So you owe an awful lot morw now, and it'll get worse and worse. I used to work in the IT dept of one of these companies and they dont send letters to you. They turn up at your doorstep (if you're lucky, with the police).

Our man in Havana

Originally posted by DaithiSurfer
Thats right. Until you pay off the money you're credit rating will not begin to go up.
Also there is more than one credit agency. You might be clear in one but not in others.
They pass the data on to each other.
Also if you ever apply for a mortgage with your gf you will also tarnish her credit rating.
Basically you're ****ed for ever borrowing money again.

Once the debt recovery that now owns your debt finds you (and they will if you keep applying for loans with your current address on them) you are in the deepest pile of **** anyone could ever experience.

I think its normally more than 10% interest compounded. So you owe an awful lot morw now, and it'll get worse and worse. I used to work in the IT dept of one of these companies and they dont send letters to you. They turn up at your doorstep (if you're lucky, with the police).

Really? Anyone that is owed money must go thru the correct channels in recovery

1. Obtain a judgement in the District Court
2. Seek examination of debtors means.
3 If means are sufficent get an installment order. If not end of story, cant get blood out of a stone. Judgement will last for 12 years.
4. If installment order is ignored, then seek commital to prison.
5. Bankrupt the debtor if the debt is over €2000.

Cant just show up and beat sven shades of **** out of you.

James

Is1ldur

A couple of things you should do.
Firstly check that the Bank or whatever has not secured a Judgement against you. You can do this through a number of companies in Ireland (I actually work for one), but I am not going to advertise here.
Secondly, the Irish Credit Bureau hold credit records of individuals in Ireland. I think it costs about 6-7 euro to get your own mailed out. This will show any loans which you have taken out over the past feww years,(not too sure how far back this goes, but one of the other chaps here mentioned that it only really gets taken off a few years after the debt has been settled). This shows basically how up to date you were with payments on each month a payment was due.
Thing is, even doing this may not help. The banks do keep their own records also, and you will have to write to whoever refused you credit asking why. They may not give a reason, if that is the case, bring out the old Freedom of Info act and get everything they have on you.
Don't take any of this as Gospel, though, I still have trouble with them.

Our man in Havana

The Freedom of Information act does not apply to private companies or banks. However the Data Protection Act 1988-2003 does apply.
They have 40 days to respond to access requests which now include all data whether on computer or paper files. The bank may charge you €6.35 but no more.
If they refuse to comply the Data Protection Commisoner can act.

James

spongebob

Originally posted by DaithiSurfer
Thats right. Until you pay off the money you're credit rating will not begin to go up.

Not quite, if he keeps getting loans it will go up.

Also there is more than one credit agency. You might be clear in one but not in others.
They pass the data on to each other.

Thats a risk, more than likely the credit issuer (banks) contacts more than one.

Also if you ever apply for a mortgage with your gf you will also tarnish her credit rating.

She will not be refused per se, if the couple is married the tarnishing could be an issue

Basically you're ****ed for ever borrowing money again.

Yawn, really. if you had READ the first post you would have noted the mention of an overdraft maybe.

Once the debt recovery that now owns your debt finds you (and they will if you keep applying for loans with your current address on them) you are in the deepest pile of **** anyone could ever experience.

If your 6 years are not up already that is feasible. The debt recoverers are a fairly scummy mob. Live within your means for the next year and you should be creditworthy again. You checking your own record is also recorded on the database.

I think its normally more than 10% interest compounded.

It is capped.

I used to work in the IT dept of one of these companies and they dont send letters to you. They turn up at your doorstep (if you're lucky, with the police).

They send letters and THEN they show up. The plod have nothing to do with debt, it is a civil matter.

M

Our man in Havana

They send letters and THEN they show up. The plod have nothing to do with debt, it is a civil matter

Yes they do. If they get a commital order from a court plod will show up to arrest you and take you to the pokey.

eth0_

Originally posted by Bond-James Bond
Yes they do. If they get a commital order from a court plod will show up to arrest you and take you to the pokey.

Yer right, he can be done for theft, i'd imagine, after all this time! I'm sure the cops would definitely get involved if he ignored the debt collectors.

Muck - Sure he might build up a credit rating getting a loan, but how the HELL will he get one when his credit rating is surely f*cked? Even that dodgy private bank that does loans and HP through dixons at 30%apr wouldn't give him a loan if they can see what he's done!

Overdrafts are *nothing*! I went into ulster bank a year ago,opened an account and got a 500 euro overdraft on the spot, as in, I could draw money out right after I opened the account. Despite the fact I had forgotten about money I owed BOI on an overdraft and if the banks share info, they'd have known about that.

I also opened a bank account with the Halifax in Belfast and got an overdraft of £200 despite the fact I have absolutely NO credit history in the UK.

Overdrafts are easy to get. Loans and credit cards are not. How d'ya like THAT.

spongebob

Originally posted by Bond-James Bond
Yes they do. If they get a commital order from a court plod will show up to arrest you and take you to the pokey.

The plod will show up on their own then not WITH the debt collectors and not until you have been in court and disobbeyed a payment schedule. That involves a load more steps to be taken against our lad who started the thread !

Our man in Havana

Originally posted by Muck
The plod will show up on their own then not WITH the debt collectors and not until you have been in court and disobbeyed a payment schedule. That involves a load more steps to be taken against our lad who started the thread !

I am surprised he is not at this stage by now.

spongebob

did he get a summons?

eth0_

Originally posted by Muck
did he get a summons?

How can he, i'm sure the debt collection agency don't know where he's living...yet.

I wonder where he's gone, hasn't replied to the thread today..

Our man in Havana

Originally posted by eth0_
How can he, i'm sure the debt collection agency don't know where he's living...yet.

I wonder where he's gone, hasn't replied to the thread today..

Probably read all this and has gone into hiding!

eth0_

Originally posted by Bond-James Bond
Probably read all this and has gone into hiding!

Yeha, or maybe there are some bailiffs on boards who recognise the story

Jokah

Maybe this has been posted up already. I did see some mention about Oasis somewhere in this post but look here at the Credit Bureau

Also you obviously have a problem with money and all this avoiding will some day catch up with you and you will be caught.

What you do is wrong and I hope you get caught for it. Keep on digging your hole....:D

DaithiSurfer

No they don't send letters first in case you run again before they get to you.
They turn up at your door, ask for your name and (depending on who the collector is) may break your legs or hand you a summons or take the cops to make sure everything goes smoothly. The cops are used as witnesses by these agencies when necessary.
If they don't take the cops you may indeed be dealing with leg breakers so tough.
They do send letters in cases where the person is not likely to dissapear again or if they are a letters type of debt collector.

Overdrafts up to a certain figure are more or less automatic when you open a bank account now.

DaithiSurfer

Also, forgot to mention.
The more loans you apply for the more checks are done on you.
Any check no matter who does it will reduce your rating whether or not you are a good risk. I think the thinking behind this is 'why does this guy apply for so many loans. He must be in trouble'.