Debt Management Plan and removing a Default

a-first-class-fool

Hi all

Can't believe I've screwed up my early life so much. I'm 29 and so depressed. I'm earning an OK amount, but I've just got NOTHING to show for it. Really feel like the few years of mistakes I made are going to ruin my whole life. but I digress...

I'm two and a half years into a debt management plan and am only now getting the strength to face up to and tackle my money woes properly.

Just looked at my credit report for the first time in years and noticed that one of my creditors defaulted me back in 2006. I'm pretty sure that they didn't actually serve me a notice so I'm hoping that I might be able to get the default removed by asking for them to provide a copy of the default notice.

However, being that I am still paying off my debt to this company under the DMP, I'm a little worried that sending them a demanding letter will somewhat rock the boat as regards the informal repayment agreement. The last thing I want to do is p*ss them off, and get a demand for full payment! :eek:

I just wanted to hear the opinions of the experts here - should I chance it and send off the letter, or just wait another four or so years for the default to get knocked off my report?

debrag

some creditors will default you when you start a DMP, two of mine have.

I've never recieved anything in writing either.

suewiththeblues

barclays and i think egg defaulted me when i went on a dmp - they were quite quick about it too!

GeorgeUK

Can i ask if you are doing your DMP with one of the free debt charities?

If not, you mat be able to set one up through CCCS or Payplan and not need to pay a charge for the service.

I don't think you should worry too much right now about the defaults. If they haven't sent a notice of default to you, then you are correct - the defaults on your file should be removed. But they could remove them then just issue with a notice of deafult and could be stuck with them on your file again.

As you are in a DMP, part of the agreement will be that you do not take out any more credit so it is not really an issue right now. The defaults should drop off your file after 6 years - will the DMP still be running at that time?

There is also an option of possibly sending a subject access request to your creditors to see if the debts are enforcable and possibly also to reclaim some of the penalty charges. If the debt is found to be unenforcable then they should not have shared your information with the credit reference agencies anyway.

a-first-class-fool

GeorgeUK wrote: »

Can i ask if you are doing your DMP with one of the free debt charities?

If not, you mat be able to set one up through CCCS or Payplan and not need to pay a charge for the service.

I don't think you should worry too much right now about the defaults. If they haven't sent a notice of default to you, then you are correct - the defaults on your file should be removed. But they could remove them then just issue with a notice of deafult and could be stuck with them on your file again.

As you are in a DMP, part of the agreement will be that you do not take out any more credit so it is not really an issue right now. The defaults should drop off your file after 6 years - will the DMP still be running at that time?

There is also an option of possibly sending a subject access request to your creditors to see if the debts are enforcable and possibly also to reclaim some of the penalty charges. If the debt is found to be unenforcable then they should not have shared your information with the credit reference agencies anyway.

Hi George, thanks for your reply.

Yes, if I continue paying my DMP at the current rate, then I will still be paying it when the default is due to drop off... assuming it will drop off if I am still paying, right?! The reason for wanting to lose the default on my record is that I am worried it is affecting my partner's credit record as we do share a joint account (we're not married and the original debt is in my name only).

Could you clarify what you mean by a "subject access request" and "enforceable debt"? Your time and help is very much appreciated, many thanks

GeorgeUK

Still don't know if you are with one of the free debt charities or a fee paying DMP plan - you should look into switching if you are paying for this.

A default will drop off your credit file after 6 years. Even if you had no default, as you are in a DMP, your credit rating would still be poor and this will probably still have an impact on your partner's rating - no idea how much though.

Penalty charges should only be for an amount to notify you of missed payments etc. Banks are not allowed to make a profit on these types of charges. Many people however have been charged up to £35 for a letter that is notifying them they have missed a payment or are overdrawn.

If you send a subject access request (SAR - cost £10), under the Data Protection Act they must send you a copy of all information and correspondence that they hold on you. This will include a list of all transactions in the last 6 years so you should be able to see what charges you can claim back and also a copy of any documentation. The original customer credit agreement (CCA) if taken out before 6th April 2007 must have certain terms on it to be legally enforcable. If the debt is not enforcable, then payment may not need to be made.

There are a few threads on this board that go into detail on this procedure, and one of the other boards on the forum explains the reclaiming bank charges process.