CCCS - The Consequences?

norserose

Hello,

I recently entered into a debt management plan with the CCCS and it was the best possible thing I could have done. I know where I'm up to, I'm making steps towards shifting my debt, and I'm so glad that I didn't go bankrupt, as my circumstances changed over the last few months and going bankrupt would have affected my new job. I also received a lot of very good advice from people here, so a big thank you to all of you! :T

However, I have noticed that I'm having some trouble opening a bank account, so obviously it's already affected my credit rating. I was just wondering if anyone know about the long term implications? If I manage to clear my debts in the next 2 years, will my credit stay bad for 6 years? I was told by my CCCS advisor that your rating isn't affected for 6 years. Does anyone know the truth?! Or had any similar experience?

Northernbird_2

It varies from lender to lender as to how how they deal with your debt. For example, for me, IF kept the debts and didn't have anything on my file, but they passed two of them to a debt agency after a year and issued defaults which are now on my file.

As I said it varies, but whilst you've made arrangements to pay the debt, technically you've defaulted on the original agreement so they could all issue defaults as part of their process.

The defaults remain on your credit file for 6 years, after which they drop off automatically. If you settle the debt early, you can have the default marked as satisfied on your credit file, which improves your score slightly, but the default will still remain for the full 6 years. If the default has not been paid in full by the end of the 6 years, it will drop off your file but the lender can still pursue you for the debt until it's paid.

Get a copy of your credit file regularly to see how they're doing it. Hope this helps (if I'm wrong about any of this, do correct me guys!)

matrix999

Nationwide are a good place to start if you want a basic bank account - I've heard they always accept you and give you a basic cash card