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  • FIRST POST
    • RF1988
    • By RF1988 18th Jan 18, 2:15 PM
    • 3Posts
    • 0Thanks
    RF1988
    Loan not defaulted
    • #1
    • 18th Jan 18, 2:15 PM
    Loan not defaulted 18th Jan 18 at 2:15 PM
    Hey all,
    What a fantastic forum, read through many threads but first post.

    Im currently in a dmp with stepchange, have been for around a year and a half, owe around 24000, iv recently reduced my payments to them to a much smaller amount to try and build some F+F lump sums and pay off quicker. The loan i had with hitahci capital, now with lowell after being sold on, has recently reappeared on my credit file, iv never received a default on this loan and had kept up the payments for a few months when my dmp started. The new entry shows the loans payment at being 4 months late, i just wanted any advice as to the best course of action, would it be advisable to now get this account upto date and make the original loan repayment figure which i could now with dmp payment being lowered? Or would it be better to let it default and try and get the default backdated, about 4 months into my dmp i was 3-4 months behind in payments then so presumed it would have been defaulted.

    Thanks for any help
Page 1
    • sourcrates
    • By sourcrates 18th Jan 18, 8:26 PM
    • 13,221 Posts
    • 12,640 Thanks
    sourcrates
    • #2
    • 18th Jan 18, 8:26 PM
    • #2
    • 18th Jan 18, 8:26 PM
    Hi,

    If Lowell have bought the debt, then at some point it will of been defaulted.

    Normally you cannot sell on a debt that has not defaulted.
    I'm a Board Guide on the Debt-Free Wannabe, Credit File And Ratings, and
    Bankruptcy And Living With It, boards. "I volunteer to help get your forum questions answered and keep the forum running smoothly".
    Board guides are not moderators and don't read every post. If you spot an abusive or illegal post then please report it to forumteam@moneysavingexpert.com. Any views are mine and not the official line of MoneySavingExpert.com.

    For free debt advice, contact either : Stepchange, National Debtline, or, CAB.
    For Free Legal advice see : http://legalbeagles.info/
    • January2015
    • By January2015 18th Jan 18, 8:47 PM
    • 1,917 Posts
    • 4,967 Thanks
    January2015
    • #3
    • 18th Jan 18, 8:47 PM
    • #3
    • 18th Jan 18, 8:47 PM
    If you are on a DMP your credit file is trashed anyway, so why bother trying to make full payments to this loan?

    You are better off making minimal, or no payments, and saving for full and final settlement offers.
    DFW Nerd No. 1484 LBM 07/01/15 Debt was £95k I'm driving it down
    £1k emergency fund (member #84) £1k/£1k
    Xmas 2017 £1 p/day challenge No. 20 - £420/£730
    Make £10 p/day Feb £74.31, Mar £664.37 Apr £40
    • RF1988
    • By RF1988 19th Jan 18, 10:53 AM
    • 3 Posts
    • 0 Thanks
    RF1988
    • #4
    • 19th Jan 18, 10:53 AM
    • #4
    • 19th Jan 18, 10:53 AM
    Thanks for the replys, thats what i thought but it is showing on my credit report on MSE/experian as an open account and a remaining balance etc, and not under the defaulted sections, i have contacted Lowell to see whats going on.

    Yea but iv already been on the DMP for a year and a half so didn't want to add another couple of years to when i can finally get my report in good shape again etc.
    • RF1988
    • By RF1988 12th Feb 18, 11:33 AM
    • 3 Posts
    • 0 Thanks
    RF1988
    • #5
    • 12th Feb 18, 11:33 AM
    • #5
    • 12th Feb 18, 11:33 AM
    Just as an update, apparently the loan wasn't defaulted when Lowell took over the loan, in their words 'we wont look to default the loan as payments are being made by stepchange' but basically they will be putting late payment markers every month. I dont really know what the best solution would be, should i try and get a default placed on the account backdated when i stopped making the contractual payments with Hitachi, granted this was around two years ago and how do you go about doing that?
    • sourcrates
    • By sourcrates 12th Feb 18, 12:46 PM
    • 13,221 Posts
    • 12,640 Thanks
    sourcrates
    • #6
    • 12th Feb 18, 12:46 PM
    • #6
    • 12th Feb 18, 12:46 PM
    Just as an update, apparently the loan wasn't defaulted when Lowell took over the loan, in their words 'we wont look to default the loan as payments are being made by stepchange' but basically they will be putting late payment markers every month. I dont really know what the best solution would be, should i try and get a default placed on the account backdated when i stopped making the contractual payments with Hitachi, granted this was around two years ago and how do you go about doing that?
    Originally posted by RF1988
    Well you have two options.

    Option (1)

    Written complaint to the original creditor, asking them to follow FSA guidelines and default you in line with those guidelines.

    If they wont, escalate to the ICO.

    Option (2)

    Let sleeping dogs lie, and pay the debt off over time.

    Which option to take depends on how important a clean credit file is to you in the near future.

    Arrangement to pay markers stay on your file 6 years after you settle the debt, were as defaults are gone after 6 years in total.
    I'm a Board Guide on the Debt-Free Wannabe, Credit File And Ratings, and
    Bankruptcy And Living With It, boards. "I volunteer to help get your forum questions answered and keep the forum running smoothly".
    Board guides are not moderators and don't read every post. If you spot an abusive or illegal post then please report it to forumteam@moneysavingexpert.com. Any views are mine and not the official line of MoneySavingExpert.com.

    For free debt advice, contact either : Stepchange, National Debtline, or, CAB.
    For Free Legal advice see : http://legalbeagles.info/
    • January2015
    • By January2015 12th Feb 18, 1:26 PM
    • 1,917 Posts
    • 4,967 Thanks
    January2015
    • #7
    • 12th Feb 18, 1:26 PM
    • #7
    • 12th Feb 18, 1:26 PM
    I've had defaults backdated to the start date of my DMP. I argued the creditor was treating me unfairly and said had I ignored my debts and not contacted them or made any attempt to pay they would have defaulted the account promptly. However, because I chose to be responsible and try to deal with my debts they are penalising me because a non-payer would be defaulted promptly and the credit file marker of default would be removed after 6 years. Because I chose to pay and stay in contact and they refused to default I will suffer a poor credit marker of AP until the debt is cleared AND for 6 years after that. Potentially I could have a poor credit marker for 15 years (9 years DMP and 6 years after that). They agreed, apologised, gave me £50 compensation, and backdated default by 18 months to the start of my DMP.
    DFW Nerd No. 1484 LBM 07/01/15 Debt was £95k I'm driving it down
    £1k emergency fund (member #84) £1k/£1k
    Xmas 2017 £1 p/day challenge No. 20 - £420/£730
    Make £10 p/day Feb £74.31, Mar £664.37 Apr £40
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