10 year old debt blocking a loan application

maximoose

https://www.centralcreditregister.ie/borrower-area/faqs/the-scope-of-the-central-credit-register/

First Question - Statue of Limitations

Under the Credit Reporting Act 2013, lenders are obliged to submit credit and personal information on loans of €500 or more. In addition, they are obliged to report the Credit Status of each loan. The Credit Status will indicate for example, if there has been any legal action taken, an overdraft cancelled, or a credit card revoked. It will also indicate if there has been a settlement or write-off of a debt. Finally it will also record if there has been a repossession or voluntary surrender of an asset. If none of the above apply, this is marked ‘n/a’.

While it may be possible that a lender is statute barred from pursuing a borrower for repayment of a loan, the passage of time does not erase the actual debt, and the loan may still be reported to the Central Credit Register.

Jim2007

my3cents wrote: »

No the lender can chase you and contact you every day for the six years and if you don't acknowledge the debt its statute barred. If the OP was stupid enough to acknowledge the debt AND there is a record of it then a defense of statute barred won't stand up.

Well speaking from experience I can tell you that is total nonsense. Hell if you even think about it for a minute, why would anyone bother paying back a loan or even giving you a loan if that was the case.

Jim2007

Water2626262 wrote: »

It was ten years ago. People do stupid stuff all the time. It was only 500 euro, not a mortgage. You need to keep hassling the credit union. You claim you’ve ten loans on your record. If you paid them all as per the agreed terms then they are being very unreasonable. The whole purpose of the credit union is to give people access to credit. Ask for an appeal and tell them your circumstances back then.

Imagine for a minute you are the loan officer and you give a loan to the OP, that he subsequently defaults on... the very first question your employer will what to know is why in the hell you gave a loan to a know defaulter????

Oh and as for access to credit, if CUs given out loans to defaulters, they will soon go bust and won't be able to give credit to anyone.

Water2626262

Jim2007 wrote: »

Imagine for a minute you are the loan officer and you give a loan to the OP, that he subsequently defaults on... the very first question your employer will what to know is why in the hell you gave a loan to a know defaulter????

Oh and as for access to credit, if CUs given out loans to defaulters, they will soon go bust and won't be able to give credit to anyone.

I’d answer he had a solid track record with us over ten loans. The overdraft was ten years ago so didn’t think it was a factor.

my3cents

Jim2007 wrote: »

Well speaking from experience I can tell you that is total nonsense. Hell if you even think about it for a minute, why would anyone bother paying back a loan or even giving you a loan if that was the case.

The statute of limitations is quite clear the clock starts when the borrower fails to make a repayment if the borrower does not make any further payment and never acknowledges the loan after 6 years they can use the defense of statute barred.

This is Citizens information summary https://www.citizensinformation.ie/en/money_and_tax/personal_finance/debt/glossary_of_debt_terms.html

Time limits/Statute of Limitations

There are time limits (limitation periods) for taking most types of court action. These time limits are set either in the Statute of Limitations 1957, as amended, or in specific legislation dealing with the court issue involved.

The law in relation to time limits is complex but, in general, the time limit for taking actions for breach of contract (for example, failure to pay for goods or services provided), for debt judgments and for non-payment of charges such as rent is 6 years. This means that if your creditor does not start the court action within 6 years of the debt being due, the action is statute-barred. Effectively, that means that you cannot be forced to pay the debt.

If your creditor gets a judgment, then, in general, they have 12 years in which to enforce that judgment.

The general rules do not apply to taxes. There is a 4-year time limit on the Revenue Commissioners seeking tax from you and there is a 4-year time limit on you seeking repayment of taxes that you were not due to pay. However, if there is any fraud or neglect, there is no time limit.

Its a little more complected than that as statute barred is a defense which means an action can still be taken against a debtor after the 6 years but the debtor can then use statute barred as a defense in court. Effectively no one is likely to take a case after 6 years where statute barred is a defense, hence the confusion where people think that a case can't be made after 6 years.

Henry Ford III

Just repay the debt.

Xterminator

Water2626262 wrote: »

After ten loans? Believe it or not but people aren’t written off forever for past mistakes and that’s the way it should be. People can have health issues, be going through a tough time whatever. Thousands of people are advanced credit each day despite blips. If he was current in arrears on a loan or had multiple write offs then fair enough but a ten year old overdraft. It’s ancient history. Tons of people have revoked credit cards or settlements for less and they still get mortgages. If after ten years the debt wasn’t sold on to a collector then its unfair to punish him now.

In this case OP appears to have never engaged with the creditor, never explained any difficult circumstances, never sought a writedown, or payment plan.

can you see how there is a difference between genuine hardship and not bothering your hole to engage/resolve?