Remove Default after settled DMP

nadine84parker · 22 February 2018 at 5:20PM

Two years ago I entered into a DMP with StepChange. (This was due to my income decreasing significantly, and divorce - leaving me with my child alone and no financial support. ) All my creditors accepted the offers given, and I made timely payments for just over a year. I came into some money at the end of last year, and settled all my accounts in full.

I have recently been looking at obtaining a mortgage, however my financial advisor confirmed that I have 4 (inc 2 recently added) defaults to my account, which will have a negative impact on what lenders will accept me.

I have contacted all lenders requesting copies of the default - so far only Capital One have come back to me with a copy.

I know that lenders are entitled to "dig their heels in" and apply default notices, however I wondered if there was a template letter I could send to my lenders asking for defaults to be removed in light of the fact that payments were made in accordance with agreement, and that they are now fully settled?

Alternatively is there any "wording" that can be noted on my credit file to support the defaults issued?

Really need to try and clean up my credit file as much as possible.

Many thanks in advance :-)

[Deleted User] · 22 February 2018 at 5:57PM

The defaults are an accurate accurate reflection of your account. They won't be removed, especially as now settled.

Don't add a NoC. They rarely help and usually hinder.

System · 22 February 2018 at 9:51PM

nadine84parker wrote: »

T
I know that lenders are entitled to "dig their heels in" and apply default notices, however I wondered if there was a template letter I could send to my lenders asking for defaults to be removed in light of the fact that payments were made in accordance with agreement, and that they are now fully settled?

Payments weren't made in accordance with the agreement, they were made in accordance with the DMP you managed to negotiate but they weren't in accordance with the agreements you signed when you opened the accounts. The agreement that applies is the one that you signed when you took out the finance and you defaulted on that agreement when you didn't make the payments it required and ultimately ended up in a DMP.

Settling the accounts doesn't alter the history of how the accounts were run. The only way you could get defaults removed is if you could prove they were issued incorrectly but having entered a DMP you can't do that.

There is no short cut unfortunately, only time can heal a damaged credit file. I would imagine that with a DMP as recent as 2 years ago you're not going to get a mortgage in the next 2-3 years.

DCFC79 · 22 February 2018 at 10:46PM

Use the next couple of years to do various things eg get a deposit together, sort out your finances.

nadine84parker · 23 February 2018 at 11:14AM

Thank you. I already have a sizable deposit, and have now got no debts at all. My only outgoing is a phone bill. So the only issue I have is credit rating

3 of the companies definitely did not issue default notices, so I am pursuing this. Capital One have produced evidence (sent to a neighbouring property in error).

I understand others state that it is a true reflection of my credit history, however I was merely asking if anyone else had been successful in liaising with lenders to remove such entries.

I am also concerned that the date of a default was noted in late 2017, when I had been in my DMP since 2015. This means that there is a further 2 years extra for the default to "fall off" my report.

System · 23 February 2018 at 3:09PM

The DMP of 2015 will do far more damage than a single default will.

DCFC79 · 23 February 2018 at 9:37PM

nadine84parker wrote: »

Thank you. I already have a sizable deposit, and have now got no debts at all. My only outgoing is a phone bill. So the only issue I have is credit rating

Well its your credit history your wanting to improve.

Anthorn · 24 February 2018 at 9:04AM

nadine84parker wrote: »

Two years ago I entered into a DMP with StepChange. (This was due to my income decreasing significantly, and divorce - leaving me with my child alone and no financial support. ) All my creditors accepted the offers given, and I made timely payments for just over a year. I came into some money at the end of last year, and settled all my accounts in full.

I have recently been looking at obtaining a mortgage, however my financial advisor confirmed that I have 4 (inc 2 recently added) defaults to my account, which will have a negative impact on what lenders will accept me.

I have contacted all lenders requesting copies of the default - so far only Capital One have come back to me with a copy.

I know that lenders are entitled to "dig their heels in" and apply default notices, however I wondered if there was a template letter I could send to my lenders asking for defaults to be removed in light of the fact that payments were made in accordance with agreement, and that they are now fully settled?

Alternatively is there any "wording" that can be noted on my credit file to support the defaults issued?

Really need to try and clean up my credit file as much as possible.

Many thanks in advance :-)

Never heard of getting a copy of the default but there is a first time for everything. Usually we get a copy of the credit agreement and a statement of account. But let's face it, if an account has been defaulted we probably already know the reason.

My guess is that Stepchange have already asked the lender to remove the default but there is no harm is checking with Stepchange or even asking the lender yourself to remove the default. It's not really a case of lenders digging in their heels: Reporting to the CRAs is information sharing with other lenders which informs lenders that you are reliable or unreliable.

You can insert a notice on your credit history to inform lenders that you have now cleared all your debts. Whether that will do more harm than good is debatable. Lenders will know that from the balance on each account when they search your credit history.

nic_c · 24 February 2018 at 9:48AM

Tarambor wrote: »

The DMP of 2015 will do far more damage than a single default will.

^^^^^^^^^^^^^^^^^^^^^^ This.

Why focus on trying to spin/cover the past, you should be focusing on your future. Are you sure the default is showing as 2017 or is it settled in 2017, which is a different thing.

Remove Default after settled DMP

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