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What happens when you default a bill and you're on a creditor list

  • 27-08-2018 09:09AM
    #1
    Skinhead Kane
    Banned (with Prison Access) Posts: 150 ✭✭


    I was told it ruins your credit scoring, is this true? If so, would this make it tough for mortgage and other loans in the future if you were to avail of them?


Comments

  • #2
    ELM327
    Registered Users, Registered Users 2 Posts: 19,344 ✭✭✭✭ELM327


    If it's a utility bill then nothing will happen as utility companies do not have access to the ICB
    If they bring it to court and win then your record will be updated , but not before

    Of course if it's a bank/financial product then that's different


  • #3
    Skinhead Kane
    Banned (with Prison Access) Posts: 150 ✭✭Skinhead Kane


    ELM327 wrote: »
    If it's a utility bill then nothing will happen as utility companies do not have access to the ICB
    If they bring it to court and win then your record will be updated , but not before

    Of course if it's a bank/financial product then that's different

    If it's the likes of Flexirent a laptop loan, with a payment left of 300euro

    Would they require you to go to court or at least send some papers regarding it?? I was told over the phone by one of their centre managers that he's gonna ruin my credit and send the stuff to the credit scorers. Is this possible without any sort or formal warning??


  • #4
    Peregrinus
    Registered Users, Registered Users 2, Paid Member Posts: 27,954 ✭✭✭✭Peregrinus


    Banks rely on credit information from the Irish Credit Bureau, which so far as I know only collates information on your banking/financial affairs - loans, credit cards, mortages, that kind of thing.

    So, if you default on a credit card bill, yeah, this turns up on your credit rating and will potentially be a problem in getting credit later.

    But if you default, say, on a bill owed to someone who has done work on your house, this isn't reported to the Irish Credit Bureau and it doesn't affect your credit rating with them.

    That's not to say that it might not be reported elsewhere - there are various trade and professional bodies that seek to share information about non-paying customers.


  • #5
    ELM327
    Registered Users, Registered Users 2 Posts: 19,344 ✭✭✭✭ELM327


    Skinhead Kane wrote: »
    If it's the likes of Flexirent a laptop loan, with a payment left of 300euro

    Would they require you to go to court or at least send some papers regarding it?? I was told over the phone by one of their centre managers that he's gonna ruin my credit and send the stuff to the credit scorers. Is this possible without any sort or formal warning??
    Sounds to me like scaremongering, but as I'm not a solicitor I can't be 100% sure.
    I'm not sure if the likes of flexirent are financial products and as such can alter credit history


  • #6
    Skinhead Kane
    Banned (with Prison Access) Posts: 150 ✭✭Skinhead Kane


    And to sum it all up, can you improve credit scoring once it's been messed up or is it a permanent thing? I'm asking this for my sister in law, she's only 22 and worried she wont be able to get any loans in the future because of this


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  • #7
    ELM327
    Registered Users, Registered Users 2 Posts: 19,344 ✭✭✭✭ELM327


    Skinhead Kane wrote: »
    And to sum it all up, can you improve credit scoring once it's been messed up or is it a permanent thing? I'm asking this for my sister in law, she's only 22 and worried she wont be able to get any loans in the future because of this
    If it's on your ICB record it takes 5 years from date of record to be annulled.
    Date of record would generally be when the loan was settled - either paid or written off as "bad"


  • #8
    tedpan
    Registered Users, Registered Users 2 Posts: 4,526 ✭✭✭tedpan


    Skinhead Kane wrote:
    And to sum it all up, can you improve credit scoring once it's been messed up or is it a permanent thing? I'm asking this for my sister in law, she's only 22 and worried she wont be able to get any loans in the future because of this


    Tell her to run a credit check. That will show any loans or debts that the ICB has visibility of. If unpaid will probably have a negative effect on her credit rating.

    Why doesn't she want to pay?


  • #9
    ayux4rj6zql2ph
    Closed Accounts Posts: 2,716 ✭✭✭ayux4rj6zql2ph


    Is it true if one returns a vehicle that is on Hire Purchase this also ruins a persons credit rating?


  • #10
    tedpan
    Registered Users, Registered Users 2 Posts: 4,526 ✭✭✭tedpan


    Prisoner 6753 wrote:
    Is it true if one returns a vehicle that is on Hire Purchase this also ruins a persons credit rating?


    Depends on the Ts&C's on the loan/hp. I know it doesn't affect it on PCP.


  • #11
    TheChizler
    Registered Users, Registered Users 2 Posts: 9,541 ✭✭✭TheChizler


    They're not a member of the ICB anyway. Generally if someone is threatening to mess up your credit score in order to get you to make a payment they're just bluffing that they have the ability to do that. An ICB member will just do it, no threats.


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  • #12
    Skinhead Kane
    Banned (with Prison Access) Posts: 150 ✭✭Skinhead Kane


    tedpan wrote: »
    Tell her to run a credit check. That will show any loans or debts that the ICB has visibility of. If unpaid will probably have a negative effect on her credit rating.

    Why doesn't she want to pay?

    The centre manager showed up at her door and said if she doesn't pay she will need another means to close the debt (and she was so confused saying what? How does that work??), it was 9pm and she was freaking out like didn't know why and how he just showed up at her door. She's quite an attractive girl and he was a little tipsy she said from the smell on his clothes.

    She told him to leave and had to ask a lot of times and he called the next day saying to pay her bill and now she just chose not to pay as she feels disrespected as she was overdue by a month as she's currently going through house movement and other things that are just way more important than her laptop at this moment


  • #13
    ayux4rj6zql2ph
    Closed Accounts Posts: 2,716 ✭✭✭ayux4rj6zql2ph


    tedpan wrote: »
    Depends on the Ts&C's on the loan/hp. I know it doesn't affect it on PCP.

    Unsure of the T&C's.

    One of the family members wants to hand back a bar 18 months into a 5 year term with Bluestone finance but is afraid the credit rating will be impacted by it.


  • #14
    ELM327
    Registered Users, Registered Users 2 Posts: 19,344 ✭✭✭✭ELM327


    A car on HP/PCP is different
    You must request a "settlement figure" from the finance comapny and pay them that to end the agreement.
    With one exception, if y ou have paid more than half the loan you can hand back the car without penalty under the "Half Rule"


  • #15
    tedpan
    Registered Users, Registered Users 2 Posts: 4,526 ✭✭✭tedpan


    The guy showing up is not acceptable although so is not paying a loan that she agreed to. I suppose everybody has their own priorities.


  • #16
    Skinhead Kane
    Banned (with Prison Access) Posts: 150 ✭✭Skinhead Kane


    Prisoner 6753 wrote: »
    Unsure of the T&C's.

    One of the family members wants to hand back a bar 18 months into a 5 year term with Bluestone finance but is afraid the credit rating will be impacted by it.

    I remember a few years ago we had a neighbour who bought one under HP, had an issue with the seller and ended up selling it to me for 30% of what it was worth so I got a brand new car for close to 5000eu, we changed tags and all and brought it up north and we were living there for years until we decided to come back and we sold it off to a garage up there for triple what I bought it for even years after. Funny story


  • #17
    Cushie Butterfield
    Registered Users, Registered Users 2 Posts: 1,862 ✭✭✭Cushie Butterfield


    Skinhead Kane wrote: »
    I was told it ruins your credit scoring, is this true? If so, would this make it tough for mortgage and other loans in the future if you were to avail of them?
    Honesty is the best policy (this also applies to your girlfriend who plans defrauding her way through college), as you mention in your other thread.

    There’s really no point in you even considering ever applying for a mortgage, considering your mindset. If you are looking for ways to default on tiny repayments for a laptop you’ll never gain the discipline to make much larger repayments month after month for 25 years.

    Start by manning up to your responsibilities & paying your way through life & maybe you’ll get to the stage that you can consider applying for & be considered being approved for a mortgage.

    Best of luck!


  • #18
    Skinhead Kane
    Banned (with Prison Access) Posts: 150 ✭✭Skinhead Kane


    Cushie Butterfield wrote: »
    Honesty is the best policy (this also applies to your girlfriend who plans defrauding her way through college), as you mention in your other thread.

    There’s really no point in you even considering ever applying for a mortgage, considering your mindset. If you are looking for ways to default on tiny repayments for a laptop you’ll never gain the discipline to make much larger repayments month after month for 25 years.

    Start by manning up to your responsibilities & paying your way through life & maybe you’ll get to the stage that you can consider applying for & be considered being approved for a mortgage.

    Best of luck!

    You obviously didn't read the thread, as she was not planning, she was asking what options were available if she her left her current welfare payments to return to education. Also, reading through some of your comments on your threads, I think you could do with manning up yourself, so stick to your own advice. This thread was regarding my sister in law. Unfortunately I am 9 years into a mortgage already. Thanks for trying though, maybe next time


  • #19
    Mrs OBumble
    Registered Users, Registered Users 2 Posts: 26,709 ✭✭✭✭Mrs OBumble


    TheChizler wrote: »
    They're not a member of the ICB anyway. Generally if someone is threatening to mess up your credit score in order to get you to make a payment they're just bluffing that they have the ability to do that. An ICB member will just do it, no threats.

    That isn't true any more.

    Finance companies are now legally required to report your debts to the Central Credit Register (run by the Central Bank) monthly.

    Defaulting will affect your credit rating.


  • #20
    TheChizler
    Registered Users, Registered Users 2 Posts: 9,541 ✭✭✭TheChizler


    Mrs OBumble wrote: »
    That isn't true any more.

    Finance companies are now legally required to report your debts to the Central Credit Register (run by the Central Bank) monthly.

    Defaulting will affect your credit rating.
    Forgot about that. They only collect information on loans over €500 though, OP says there's only €300 outstanding, how much was the original loan?


  • #21
    Skinhead Kane
    Banned (with Prison Access) Posts: 150 ✭✭Skinhead Kane


    TheChizler wrote: »
    Forgot about that. They only collect information on loans over €500 though, OP says there's only €300 outstanding, how much was the original loan?

    Original 1,400 and 300 or 350 left to pay


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