Ran away from debts 7 years ago

[spainboy]

I had a nervious breakdown 7 years ago and couldn't handle things and moved out of the uk owing about 15K to various creditors includng a bank. It will be 7 years on March when i moved

I have finally got myself well now, and have to move back to the UK and will need to open a bank account when i get back. Will i have any issues opening a bank account and will the debts still be outstanding and on my credit report. I am quite prepared to start paying them off, but need a bit of a break and to get working first.

[themas]

If these were normal commercial debts and were not secured on a property the statute of limitations provides the creditor cannot take legal action to enforce the debt if no payment has been made and the debt has not been acknowledged for 6 years. So if you have had no contact with the creditors for 6 years they cannot enforce the debt by Court action, UNLESS they obtained a County Court Judgement (which they could do without you knowing) within the 6 years.

This does not mean the debts are wiped out - they still exist and you still owe the money, and the creditors can still put adverse information on your CRA files. This information drops off the files after 6 years, but the creditor could renew it if the debt is still outstanding.

Whether you will have problems getting a bank account depends on the type of account you want, what information the bank asks for and whether your CRA files do still show the debts. It may be best to start off by opening a basic bank account which does not allow overdrafts and does not give you a cheque book or debit card. Such accounts do allow wages etc.to be paid in, and give you a card to withdraw cash from ATMs. You need to ask for such an account specifically so that no credit check is made.

[spainboy]

Thanks for the help themis

yes, these where con commercial debts and not secured to property.

The type of bank account i would be looking for would be basic account and certainly ouldn't be looking for an overdraft or credit facilities. However a switch card, or visa electron would be useful for on.line purchases. Is a credit check always done for these type of accounts?

I saw a basic bank account with the halifax that has no credit/overdraft facilities but comes with a visa electron card. does this mean they would do a credit check?

[spainboy]

Also if there is county court judgements will they still show as outstanding on my CRA records until fulfilled?

[Oneeyedvic]

CCJs will again only stay on for 6 years.

Halifax will do a credit check - as far as I know, all banks will do a credit check before they give you an account - however, under government regulations, banks have to offer basic bank accounts to people regardless of their previous history.

[themas]

Some banks are more choosy than others on who they offer basic accounts to. For example most will not offer them to undischarged bankrupts, but at least 3 (Nationwide, Co-op and Barclays) do.

I'm not sure whether the type of card they offer will vary, but I think switch is a debit card so none of them will give that because it could then be used to make purchases which the bank would have to honour even if they created an overdraft. For the same reason, I'm not sure you would get a card to use to make internet purchases.

[dans1977uk]

Whilst most banks will make some form of credit checks you can usually get a card for internet purchases such as a Visa Electron or Solo (Switch but less able to put you in debt) card.

The difference being most retailers, including those online, have a shop "floor limit" which means if you spend less than, typically, �50 the card terminal assumes you have the money in your account with switch and Visa Debit, but with Visa Electron and Switch Solo the terminal checks your account for every purchase therefore never allowing you to go into febt - these are very safe for banks / building societies so they'll give 99.9% of people one. Some retailers won't accept them but almost all will nowadays.

Basically, you'll be ok for an account and a card but in line with what you want you won't have the opportunity to get into debt.

Hope I was of help!!