Surprise debt on my credit report - Advice appreciated.

JJBally · 07-04-2022 7:06pm #1

I requested a credit report as I'm getting a mortgage abroad. Was expecting it to be clean as a whistle.

There's a Cabot Finance debt of a couple of grand that I was completely unaware of.

From the looks of it they bought it off a credit card debt from 13 years ago (that an ex ran up in my name) - Anyway that bit isn't important. I thought debts over 5 years were clear. So to see this as current is a shocker as I've never seen an email or letter from them.

Just looking for advice as I want a clear history. I can pay the debt, but the fact it is sitting there without any contact, and from such an old debt, seems unethical.

Anyway, thoughts appreciated. And no, I haven't the ability to go back in time and tell my younger self not to Feck up! cheers!

Jim2007 · 07-04-2022 7:15pm

Since you are applying for a mortgage abroad, it really depends on the country. If it is an EU state then they will have the same access to the CCR report as an Irish financial institution. The CCR system requires that all unsettled debt must be report, then the entry from 13 years ago. So to get the entry removed the first step is to settle the debt. The amount you will need to pay to settle the debt will depend on your negotiations with Cabot.

But before that, are you applying for a mortgage in an EU state or else where?

Dempo1 · 07-04-2022 7:24pm

I believe if the Debt remains un paid or un settled it remains on your credit report indefinitely . I've seen this type of thing pop up, particularly with Cabot were they purchase a debt at a discount and just sit on it until it raises it ugly head on a report like yours.

You may be referring to the Statue Bar after 6 years but without going down that road the debt remains reported and showing on your report.

Keep in mind if you acknowledge the Debt by contacting Cabot, the clock re sets re Statue Bar but if your willing to pay the debt they might consider a discount but how long a settlement shows up on your report, I don't know but have to assume it won't be quick.

Jim2007 · 07-04-2022 7:55pm

https://www.boards.ie/discussion/comment/118895459#Comment_118895459

Statute barred is a defence if taken court and while it might allow you to avoid paying the debt, it will not remove the debt since it remains unsettled. If the OP is applying for a mortgage outside the EU, he may have an out since such financial provides do not have access directly to CCR.

Dempo1 · 07-04-2022 8:18pm

https://www.boards.ie/discussion/comment/118895562#Comment_118895562

Thanks Jim 😏 I was just pointing out the 6 year defence as op mention a 5 year thing. I'm guessing the OP has been asked to get a credit report from Ireland by mortgage provider abroad but just a guess.

The Continental Op · 07-04-2022 8:45pm

Is this perhaps what the OP means by 5 years?

The Central Credit Register started to record loans from 30 June 2017. It keeps a record for 5 years after the last payment for a loan is made.

https://www.citizensinformation.ie/en/money_and_tax/personal_finance/loans_and_credit/your_credit_history.html

L1011 · 07-04-2022 8:48pm

Ye Olde ICB dropped stuff that was over five I believe, that's entirely gone now though.

Dempo1 · 07-04-2022 8:55pm

https://www.boards.ie/discussion/comment/118895748#Comment_118895748

A yes that might be it 👍

JJBally · 08-04-2022 8:59am

Hi Folks, Yes, sorry i should have clarified, it was the ICB stuff dropping off I meant, as a friend of mine who works in finance a few years ago mentioned it in regard to credit reports. I'll talk to MABS today to get their read, but probably just pay it to clear it.

The Continental Op · 08-04-2022 10:24am

If you can possibly avoid it try not to deal with Cabot, they may have paid as little a €20 to buy the debt so while plenty here will say you should pay because you owe the money the reality is Cabot aren't at a loss for €2,000 if you don't. In fact they need very few people to pay up in full to make a profit.

It might be suggested that Cabot paid more for the debt, but as they haven't contacted the OP I suggest they paid at the lower end of the scale for the debt and can afford to play the long game.

I guess you just want this out the way so will pay, but if it were me I'd want to check if there was any mileage in that the debt shouldn't be on the register if it was accrued so long ago and should have been removed while the old system was still active.

Edit> From reading https://www.centralcreditregister.ie/borrower-area/retention-of-information/ I am unclear as to how long this will be on your record even if you do pay it off?

Jim2007 · 08-04-2022 11:05am

https://www.boards.ie/discussion/comment/118897406#Comment_118897406

What Cabot paid for it is irrelevant. There is no way to have a debt settled and removed from the CCR without dealing with the debt holder since they are the ones that will have to remove it!

Jim2007 · 08-04-2022 11:06am

https://www.boards.ie/discussion/comment/118896964#Comment_118896964

I don't want to encourage anyone not to pay their debts, but are you sure it will impact you. What country are you applying for the mortgage in?

The Continental Op · 08-04-2022 11:15am

https://www.boards.ie/discussion/comment/118897617#Comment_118897617

But what is the point if it still stays on the register? Can you explain the process that removes the debt once paid off other than waiting 5 years?

JJBally · 08-04-2022 11:59am

https://www.boards.ie/discussion/comment/118897627#Comment_118897627

Portugal, and they asked for a credit check. I had got an ICB report a few years ago and it was clear. That's why this was bizarre.

If you do negotiate a lower payoff with cabot, does anyone know if paying less, in itself, is a strike against you on this new report, or is it just cleared?

Jim2007 · 08-04-2022 2:42pm

https://www.boards.ie/discussion/comment/118897925#Comment_118897925

Ok, it is Portugal, then they will have access to the CCR themselves, so it is best to assume they will access it.

The reporting rules for CCR are different to what the ICB used to use. The CCR requires the reporting of all non settled debt. That means it is very wide ranging. Which means that anyone needing a clear line of credit will need to settle their debt.

I don't know if it is possible for someone to find out if you paid in full or reached an agreement where by the debt was settled. But there is not reason for Cabot to want to give you a break, they know why you are coming to talk to them, so I would not expect much in that way.

Jim2007 · 08-04-2022 2:45pm

https://www.boards.ie/discussion/comment/118897667#Comment_118897667

The previous link above provides information on this.

The Continental Op · 08-04-2022 3:08pm

https://www.boards.ie/discussion/comment/118898748#Comment_118898748

No they don't, thats why I asked.

Jim2007 · 08-04-2022 5:06pm

https://www.boards.ie/discussion/comment/118898883#Comment_118898883

However, while a loan is still active (one where payments are still being made, or are expected to be made), lenders will see only the most recent two years of payment information on the credit report provided to them.

When a loan has been closed (where all payments have been discharged, or the loan closed off or written off by the lender), the information will be completely removed from the credit report five years after the last payment was made.

Personal information is held on the Central Credit Register for a period of five years from the date the last loan was paid off.

The Continental Op · 08-04-2022 5:09pm

https://www.boards.ie/discussion/comment/118899399#Comment_118899399

Cabot aren't a lender, payments aren't being made and aren't expected to be made by the lender.

The lender has written off the loan.

Just because Cabot have bought the debt I don't think that makes them a lender?

08-04-2022 5:30pm

https://www.boards.ie/discussion/comment/118895434#Comment_118895434

That just isn't correct. They don't have access, hence why they've obviously requested a copy from him.

Mortgage lenders here don't have access to EU credit reports, it's no different anywhere else.

NUTLEY BOY · 13-04-2022 12:43pm

Just a thought.

Does the original credit card company have to have had a condition in the contract with OP that provides that the debt can be assigned ? If not, what legal authority have Cabot to seek to enforce the debt ?

The Continental Op · 13-04-2022 1:18pm

https://www.boards.ie/discussion/comment/118920711#Comment_118920711

Doesn't really matter when the new system allows Cabot to add the OP to the credit report system. Damage done.

Surprise debt on my credit report - Advice appreciated.

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