In a DMP and need help with credit ref file.

BRBY

I have been in a DMP for 4.5 years and its coming to the end (Dec 2011) repaying a total of £16'050.


Although paying £322 dutifully over the period, my credit file shows otherwise. This is affecting my finance options i.e car finance at a high interest rate and mortgage renewal, no option other than to stay with my existing lender.


Anyone know if or how I can evidence my repayment behaviour so this is reflected in my credit file? I feel as though I am still being penalised even though I have almost completed and repayed the debt in full.

Anu suggestions gratefully received.

B

Tixy

Hi and welcome.

I guess the first question is what does your credit file show?

Presumably it shows defaults on most or all accounts from a little after you entered the DMP? are the outstanding balances being regularly updated by creditors to show that they are reducing?

Once your debts are paid the defaults will show as satisfied defaults which is a little better but it is correct for defaults to show for 6years from the default date to recognise that you entered a DMP/broke the original terms of the agreement.

BRBY

Thank you Tixy and thanks for replying so quickly. The £16K debt is split between two creditors (debts sold onto other debt companies) and although the balances show they are reducing, there are no links on Equifax to show the monthly payments or repayment behavior. No updates since the defaults logged in 2007.

So although I will complete my DMP in December 2011 my credit rating will still be affected until 2013?

B

Tixy

Your creditors have a duty to keep your credit file regularly updated and show the balance should be regulary updated (I'm not sure if what regularly means is actually specified anywhere).
Will dig out a link that describes this and you will probably need to hassle your creditors to update your file to reflect the current position.

To the second part - yes when you enter a DMP you break your original agreement and lenders then (nearly always) issue you with a default. And defaults stay on file for 6years. Your DMP provider should have explained this to you at the time (but a lot of the commercial DMP providers do not make it very clear).

Tixy

Right this is the link, its the ICOs guidance on filing defaults. Its not easy reading as a whole document and does appear to contradict itself in places. But for your purposes in clause 26 and 27 it is clearly stated that a lender should regulary update the balance. And in clause 52/53 if the debt is sold on to a third party then should then ensure it is still kept up to date.

http://www.ico.gov.uk/~/media/documents/library/Data_Protection/Detailed_specialist_guides/DEFAULT_TGN_VERSION_V3%20%20DOC.ashx

I guess probably the first option would be to write to the creditors refer to that guidance and that they have not been keeping the file updated to reflect the reduction in the balance. Hopefully that should sort things out without needing to formally complain etc.