DMP - quick question

rsjg80

Hi all,

We've recently entered into a DMP, and whilst it's still early in the process companies seem to be listening.

However we've just had a letter from MBNA who have said, whilst they will be receptive to the plan, that it will be recorded on our credit file for the life of the repayment and then 6 years after it.

Is this right? We were under the impression that it was six years from when the agreement started. Otherwise this is going to be 11 odd years of awful credit rating. What's the point?! Might as well just completely default now and last for only six years from today.

Any words of wisdom?

itsnowtime

Hi there...

Not sure if this is accurate or not - but this is what I believe will happen.

You will see on your credit file that you are in an agreement and therefore making reduced payments.

Should MBNA wish to 'default' you - which basically means that you aren't sticking with the original agreement then this will remain on your credit record for 6years from the date of the default.

Some creditors have been known not to issue a default but record the reduced payments - it depends who they are etc..

They can also default you a little way into the DMP but once you've cleared your debt - would you really be concerned about getting anymore?

The way I've looked at it is that it's 6 years and actually that's not too long....

Hope that helps.