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    • tain
    • By tain 15th Mar 17, 9:53 AM
    • 416Posts
    • 576Thanks
    tain
    Bank not updating credit file after completing a debt management plan
    • #1
    • 15th Mar 17, 9:53 AM
    Bank not updating credit file after completing a debt management plan 15th Mar 17 at 9:53 AM
    I thought I'd share my experience as outlined in the title, so anyone else who has completed a DMP or similar can double check it hasn't happened to them as well.

    I finished my DMP about 5 years ago, and expected that all my accounts were closed and registered as satisfied. Only in the last few weeks have I found out that a credit card and current account I was paying off on the DMP hadn't been closed, and both were still listed as in default/not settled/satisfied. I only understood what this meant after paying a financial advisor to look over my credit file in preparation for a mortgage application.

    It's taken a lot of phone calls and effort (Halifax actually had no evidence of either account, other than my credit file!), I've finally had my credit file updated to show I am fully debt and default free (my last default was way before I started my DMP, so should have gone from my file).

    Another thing to note, if this has happened to you, is that Halifax gave me compensation for the error. It was only around £125, but that was because I wasn't expecting anything and was pleasantly surprised. Thinking back about the number of times I've been refused credit and missed out on opportunities because of this (I didn't even have a current account for 4 years), I really should have pushed for a lot more. I think the lady who took my call at Halifax was fantastic though, so I was reluctant to get moody (shows what good customer service does!).

    tl;dr - it seems that some banks don't automatically update credit files or close accounts after completing a debt management plan. Make sure that the status of all your accounts is both 'satisfied/settled' and closed.
Page 1
    • tain
    • By tain 15th Mar 17, 9:55 AM
    • 416 Posts
    • 576 Thanks
    tain
    • #2
    • 15th Mar 17, 9:55 AM
    • #2
    • 15th Mar 17, 9:55 AM
    As an unusual side note, Aqua also didn't close my credit card after I completed my DMP, but they also didn't remove my credit limit? So despite having defaulted to the tune of hundreds, they still let me buy things on credit with them. Quite irresponsible in some ways. But, bizarrely, none of the post-DMP activity showed up on any of my credit files? I used it a little to build up my credit rating while paying off each month in full, but cancelled the card when realising it wasn't even showing up.
    • tain
    • By tain 15th Mar 17, 9:59 AM
    • 416 Posts
    • 576 Thanks
    tain
    • #3
    • 15th Mar 17, 9:59 AM
    • #3
    • 15th Mar 17, 9:59 AM
    And as a final little brag, I'm finally 100% default free. So my credit file is a beacon of good behaviour, and I should be fine to apply for a mortgage :-D
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