QUESTION

Like some of the postings on your site I have a bad debt record. This was caused by a relationship break-up that left me in a terrible situation, whilst I don't look to administer the blame to everyone but myself there are some valid reasons. However, my ostrich impression did not really help the situation!!

I am now nearing thirty and have a default and a few CCJ'S to my name all within the last six years. Could you answer the following questions for me? I would be very grateful!

Firstly, is it true that after six years my name will automatically be clear? Secondly. I have some tremendous opportunities available to myself through contacts in the computer trade to earn a great deal of money through self employment. I don't need to borrow or raise capital, I just need a business banking account and the ability to process customers credit cards. Will my previous default stop me from doing this?

Reply

Default
The default will automatically fall off your record on the 6th anniversary of the default date. You might want to consider adding a 'note of correction' describing the circumstances that caused the debt and that you are dealing with the debt.

Note of Correction
If you want to have a note attached explaining the circumstances of the debt you can request (by legislation) a 'note of correction'. The note should not be more than 200 words and must not be incorrect, defamatory, frivolous, scandalous or unsuitable. Loosing a steady job or suffering illness/injury are good reasons for sending a note - going 'off the rails' would not get much of a hearing.

Complaint
If you feel that the information on file is wrong or unfair you can write to the above agency and ask them to rectify the entry. The agency must reply within 28 days. If you feel that you are still not getting a fair hearing you can write to:

The Director General of Fair Trading
The Office of Fair Trading
Field House
Breams Building
LONDON EC4A 1PR

Bank Account
I would not see any problem with a bank account as a cheque account is not that much of a risk to the bank as there would not be a cheque guarantee card issued until you proved yourself.

Merchant Account
Rather than answer this here, go to: http://www.credit-to-cash.com/info_5.htm on the Credit to Cash web site. Take a look at VirginBiz at http://sitebuilder.virginbiz.net they may be able to overcome your merchant account needs, if you have a Net venture.

Many thanks to Colin Duguid of Debt 24.com who is taking the time to provide this information as a service to homeworkers.