DMP - think I made a mistake

Mookiemoo_2

Hi all

Three months ago my credit rating was excellent - 999 on experian. I owe about 60K, have about the same in equity in the house I own with my ex and earn about 80K a year net - although am self employed so its the old - I can service it when working but if not, I'm screwed.

But I was sick to death of trying to pay off stuff, never having a penny for fun, and could not see light at the end of the tunnel.

Part of the debt was a loan that still had 8 years left at 360 a month. I decided to take a DMP (although I havent paid the first payment yet so I guess I can still get out of it) since 10 years at 560 rather than 360 + credit cards etc seemed a whole load easier

Except HFC have slapped a default on my file and my rating has fallen to 450. Not a problem as I don't want credit. Except my land lord has decided to sell and although there has not even been a viewing yet, I'd rather move on my own terms as where I live properties get snapped up in days.

Problem is I can't pass a credit check for a let - even with three months deposit and six months up front and a guarantor. I don't want to move to a less desirable area where land lords may take dodgy renters.

Will the following go anyway to help repair the rating:

1. HFC - I owe 234.00 - can pay it tomorrow. If I do, would they remove the default?

2. Catch up with missed payments - can do that tomorrow

3. Talk to old bank to get old bank account un frozen (have been with them 25 years and they hold my business account)

4. Pray that I didnt make the biggest mistake of my life
:mad:

PNPSUKNET

defaults dont get removed, unless incorrectly applied

Mookiemoo_2

well they are seeing something and the only adverse entries on my credit rating is the default and four late payments - all in the last month since the DMP - before then I would be a gold card credit person

I aw the thread on here about only CCJs and BR being seen and stopped panicking for a few days but clearly not since the credit check did come back very low

Does paying off the amount even though the default is still there make any difference?

And does the fact that the reason I got the notice was the fact the mail was going to the wrong address mean anything? I changed my address to gt my john lewis card ASAP as I wanted to use waitrose quick check - then I started to get HFC HP stuff - so I phoned them and said, the HP stuff relates to the purchases in my house and I never told you to change the address on those accounts, only the credit card - seperate credit accounts.

They still kept sending them to the credit card address even though I had told them the HP agreements were at the house address

Mookiemoo_2

Ok

I may have been rambling

I have kept an eye on my experian rating for years - it has been 900+ but I have seen friends go into IVAs and DMPs and been a lot happier afterwards - so I chose the DMP route - IVA was not an option as I have equity in a house I share with my ex

I got the flat here when I left my ex in July last year - not a problem. In the mean time I went down the DMP route - started the process in Jan.

So I now have 2 months missed payments to 2 credit cards and a loan - and HFC immediately on being contacted whacked a default on my record.

My rating has gone from 900+ to 448

Couple of weeks ago I got told the land lord was putting the house on the market - so at some point I'm going to have to leave. He has not served me two months notice to quit as yet - that is the notice

I looked at a small house and filled in the home let form - credit has come back so low the land lord won't even consider me even if I offer three months up front as a deposit plus rent in advance.

I looked at one flat and even though my current agents vouched for me since it was through the same agent, land lord would not consider me even with advance payment, guarantor and heavy ddeposit

I'm beginning to think the DMP is actually harming me than helping - I can fix the late payments easily - the cash is in the bank - but I think its the default the HFC slapped on me the minute the DMP contacted them that is causing the problem

Landlord has not sold so I have a few months to try to repair this.....how can I?

Reason I wanted the DMP is whilst working I can easily pay down the debt quickly BUT I have no scope for building up a slush fund if out of work between contract (been out of work for first time ever for three weeks and had to borrow from mother) - the DMP allowed me to pay debts and keep money to tide me over if contract did not come up

rising_from_the_ashes

The missed payments will show on the credit report which could be why they've refused you - even if you pay these now, they will still show as being late, sorry.

Is there any way you can release the equity in your house (sell your 1/2 to ex) or sell it in total. Do you get any return on this?

Hopefully others may be able to advise shortly, good luck

Mookiemoo_2

I'm thinking if I pay them now and then pay on time over a couple of months it will rise

My rating went down to 600 when I was ill in 2007 - after I made up the arrears and then paid on time for 3 months it was back over 850

Also - I didnt think letting / rent searches could show late payments - only CCJs and BRs

Could be because I'm an anarchist and am not and will never be on the electoral register since its none of the governments business where I live......I am loath to go onto it just to rent

Why the hell should a central registry know where I am

I've never filled in a census either

rising_from_the_ashes

I guess it depends on how quickly this is likely to happen - if you had no missed payments for, say 6 months, then they may more willing to accept a slightly lower rating (esp if you pay deposit & in advance). I find it strange that they've said no even with a guarantor willing to be added (I have a guarantor on my mortgage & had no problems so can't see why renting should be more difficult than that).

I rented shortly after having LOTS of defaults added to my record and had no problems.

Mookiemoo_2

Maybe its because I live here....

www . port - marine . co . uk


Had to take out the auto link since it told me I could not

and want to stay here

properties go up for rent and if you doin't see them in days, they arent there anymore

I guess landlords here can pick and choose

I may well can the DMP and just do what I can and see if I can repair it somewhat

rising_from_the_ashes

Good luck - all I can say is that I'd not want to leave either if I lived there - it's beautiful!

I'd look into the equity release from your other property - or at least ensure you're getting a fair return on this investment.

Mookiemoo_2

Thats the point - I have 15K in the bank and 60K in equity and an income of 4K a month but I stil cant rent a poxy 750 month flat!

Hannah_10

Those numbers on your credit score 999 or 450 or whatever it may be, they are almost meaningless. It's like a bit of a fun excercise that the CRA's do, like giving your friends marks out of 10 for their party outfit. If you apply for a credit card say then the lender would mke thier own assessment of you based on the actual information in your file. The numbers they assign make a lot of money for Experian in particular though because they charge you to see them. It's a con. If it meant anything it would have to be included with the £2 statutory report because the £2 statutory report means you are seeing what a lender can see.

HFO have already defaulted you and unless it was totally incorrect which it doesn't appear to be, it will remain. Cacelling the DMp wont make a blind bit of difference to that. Your other creditors will also default you because you are in a DMP.

To be honest with you I wonder why you took a DMP at all and I smell a rat. A Debt Management Company style rat to be precise. Is someone making a profit out of you?