DMP & Mutual Support Thread - Part 11

rattters · 16 July 2015 at 1:59PM

Hi everyone- I am rather confused about how long a note stays on your credit file when you are in a DMP.
I origionally thought it was 6 years from when you first went into the plan.
I am on a self managed plan and start making payments on 1st August (pending all creditors accepting my proposed payments)
I have used the NEDCAB web DMP
HSBC aren't quite handling it like I would expect. other creditors have written and said they accept the DMP - say for 6 months or 1 year and then will review- and will either freeze or reduce interest.
They have rung up to clarify some info on our financial statement (but I just reiterated what was on the statement) and have said they will accept a 5 year plan on the reduced payments I have offered - but that they can only do this if I start paying today!!! I don't have the money today! So they can't set it up until I start paying and will carry on paying full interest and charges until I can!!!!
They also said that it will remain on my credit file for 6 years on top of the 5 years of the plan ie 11 years :eek: I understood from SC that it was 6 years in total.
Now- if it goes to default- then I start paying it off, and say do so in 3 years- THAT will only be on the credit file for 6 years in total.
It is so confusing- I feel like I am better of defaulting on all the debts we have in order to ensure a clear credit file in 6 years.

Am I right? are they wrong?
??????????

Puzzcat · 16 July 2015 at 3:09PM

rattters wrote: »

Hi everyone- I am rather confused about how long a note stays on your credit file when you are in a DMP.
I origionally thought it was 6 years from when you first went into the plan.
I am on a self managed plan and start making payments on 1st August (pending all creditors accepting my proposed payments)
I have used the NEDCAB web DMP
HSBC aren't quite handling it like I would expect. other creditors have written and said they accept the DMP - say for 6 months or 1 year and then will review- and will either freeze or reduce interest.
They have rung up to clarify some info on our financial statement (but I just reiterated what was on the statement) and have said they will accept a 5 year plan on the reduced payments I have offered - but that they can only do this if I start paying today!!! I don't have the money today! So they can't set it up until I start paying and will carry on paying full interest and charges until I can!!!!
They also said that it will remain on my credit file for 6 years on top of the 5 years of the plan ie 11 years :eek: I understood from SC that it was 6 years in total.
Now- if it goes to default- then I start paying it off, and say do so in 3 years- THAT will only be on the credit file for 6 years in total.
It is so confusing- I feel like I am better of defaulting on all the debts we have in order to ensure a clear credit file in 6 years.

Am I right? are they wrong?
??????????

Hi,

If the creditor defaults you and registers it to the credit agency then it is 6 years from that date that it disappears. Unfortunately any markers such as AP/AR/DMP indicating a payment plan don't disappear until 6 years from the settled date. This is the price unfortunately we pay for not keeping up with the contracted monthly payments. You obviously can challenge this if you wish, but some creditors won't shift... BC being one of them!

Puzz. x

Ali80 · 16 July 2015 at 3:14PM

Getting a default early on is generally considered a good thing because it stays on your file for 6 years from the date the account was defaulted. If it's not defaulted you will have an AP/AR (arrangement to pay) marker on your file each month until the debt is paid (which could be for the duration of the plan) and this stays on your file for 6 years after the debt is settled. Hope this makes sense.

Puzzcat · 16 July 2015 at 3:18PM

Hello Happy New Thread..

Sorry Sazzie you have been feeling lonely...!!! I have been reading but have switched my broadband so its been a little.. challenging shall we say...!!

Quick update from me..

20 months into my dmp and I still love it... Have gone from £60k down to £48 and will hit 20% paid off next month.... This debt will be gone but I am taking the scenic route...

Out of my 9 creditors only 5 have issued defaults, 2 cc's still charge nominal interest and i'm on a AR marker plan with them. BC being one of them despite the constant barrage for default notices they won't do it... maybe they don't know how....!!!

The other 2 are my overdraft and loan, toying with challenging them to default as they defaulted the cc... will decide next month as I have a busy month here with birthdays, a house guest and a foreign holiday.. (paid for in cash..!)

I sort of miss the flurry of post that you get in the early month of setting up. I do get statements each month from my cc's but that's about it.. all quiet... and long may it stay that way..

Welcome to any newbies and hi to the oldies....!!!

Love Puzz. x

Ali80 · 16 July 2015 at 3:28PM

Puzzcat wrote: »

Hello Happy New Thread..

Sorry Sazzie you have been feeling lonely...!!! I have been reading but have switched my broadband so its been a little.. challenging shall we say...!!

Quick update from me..

20 months into my dmp and I still love it... Have gone from £60k down to £48 and will hit 20% paid off next month.... This debt will be gone but I am taking the scenic route...

Out of my 9 creditors only 5 have issued defaults, 2 cc's still charge nominal interest and i'm on a AR marker plan with them. BC being one of them despite the constant barrage for default notices they won't do it... maybe they don't know how....!!!

The other 2 are my overdraft and loan, toying with challenging them to default as they defaulted the cc... will decide next month as I have a busy month here with birthdays, a house guest and a foreign holiday.. (paid for in cash..!)

I sort of miss the flurry of post that you get in the early month of setting up. I do get statements each month from my cc's but that's about it.. all quiet... and long may it stay that way..

Welcome to any newbies and hi to the oldies....!!!

Love Puzz. x

Hi Puzz (and everyone else),

Not been around for a while. Nice to see lots of new faces and also the oldies giving great advice.

I seem to remember a good proportion of your debt was with Natwest. They have defaulted both of my credit cards but not my loan and was thinking exactly the same thing with regards to challenging them. I also have 5 defaults 4 months in, but 22k of my debt lies in a Natwest loan.

If you do decide to challenge them can you let us know how you get on as I just can't muster the energy to contact anyone at the moment! Argos are charging massive interest (the only one of 9 creditors) and I have had to ask SC to reduce my payment next month due to my car giving me trouble again. Can't face any more phone calls at the moment!

Hope you're all well.

A x

rattters · 16 July 2015 at 3:46PM

Thanks ali80 and puzzcat- that makes sense now

fermi · 16 July 2015 at 4:47PM

AP/DMP markers/history drop with the rest of the account data. So 6 years from settlement if not defaulted or 6 years from the default date if defaulted later on in the plan.

Puzzcat · 16 July 2015 at 4:49PM

Hi Ali,
Yes you are correct a third of my debt is with natwest so it would be them I would be challenging! I will keep you posted! I was considering going after them for irresponsible lending as I had a 15k loan, 12k cc and 4k od at one point! That's almost my salary and doesn't include the 2k that was also on the joint account and a 3k cc that I paid off....!!
I only had 18 months left on the loan when I entered the dmp so it's one of the little debts now!
The only reason I would like a cleaner credit file, like many others is for mortgage purposes but then when I finish the dmp I will only have 6 years left to pay so should be able to over pay it quicker.... who knows what the future may bring....a lottery win would be very welcome!
Puzz.x

blisteringblue · 16 July 2015 at 9:21PM

Fanfare !!!! I got the letter in the post yesterday !!!!

:money::rotfl::cool::D

"Important Information about your Barclaycard account - Formal Demand"

GET IN !!

So next week will be my 4th month of tokens after leaving Stepchange and going self managed, so better than I hoped.

Letter still says they haven't decided if its going to a DCA or their own recovery team. I would expect the latter because my normal payment isn't far off the old minimum, but will be INTEREST FREE.

Woo Hoo

:T

Jvic28 · 16 July 2015 at 9:34PM

rattters wrote: »

Now- if it goes to default- then I start paying it off, and say do so in 3 years- THAT will only be on the credit file for 6 years in total.
It is so confusing- I feel like I am better of defaulting on all the debts we have in order to ensure a clear credit file in 6 years.

Am I right? are they wrong?
??????????

I agree, its a pain. Ine stuck to my plan with natwest since 2008 and it will show 6 years after ive finished. I wish theyd default my account like others have.

DMP & Mutual Support Thread - Part 11

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