Confused - Default on credit file and worsening credit?

iwouldprefernottosay

Hi all,

I'm going round in circles at the minute and need some guidance before my head explodes.

Many moons ago I got into a bit of trouble with my debtors, change in circumstances/redunamdacy and such and defaulted on a payment.

I phoned the CCCS up, went through my details with them, arranged a DMP and have paying it now, with regular reviews and no trouble for a few years, until now.... (and this is twofold, so bare with me!)

Towards the end of the last year, I checked my credit file, and found that Northern Rock (NRAM) had been marking me down as a late payer every month (despite all payments being made to them through the CCCS for the agreed amount). None of my other debtors had changed anything, only NRAM, despite all of them going through the same DMP.

I spoke to the CCCS and they confirmed that all payments were being made and shouldn't be showing as late. I spoke to NRAM, and they said they'd changed their policys inline with a new FSA (I think) ruling, and now show 'true debt' on credit files, and all other lenders should be doing the same. I argued my point about being on an agreed arrangement, but with no success. I went through the official complaints procedure, again with no joy. It has now been referred to FOS, and I'm awaiting a response. Has anyone else experienced this? Surely it should be a mistake, I'm now showing as having 6 payments late with NRAM, despite paying the agreed amount? I'm absolutely baffled and obviously a little concerned as to what will happen going forward.

Now, having being keeping an eye on my credit file, I've found this week that HSBC have handed a debt over to a company called CapQuest (again, which was always conducted as per the DMP, with no late payments showing) and they've instantly put it as being a default, with 8 late payments? How can this be if I've been paying up as agreed?

Sorry if I'm a little vague, it's being going on so long I've started to block it all out. Any help, advice, guidance or such would be appreciated, it's driving me mad now, I'm trying to get back on my feet but feel like things are slipping away again without my control....

Thanks all in advance,
IWPNTS

give_them_FA

Is Northern Rock a mortgage? As for Capquest, just ignore ANYTHING they send you. I did and after stamping their feet and screaming they crawled back under the stone. Useless.

iwouldprefernottosay

Sorry, should have mentioned that, no not a mortgage (not had one with anyone). all loans and credit cards.

Any idea why CapQuest would show as an 8 month late payment on my credit file when they've only just took it on?

Thanks for the reply too.

rising_from_the_ashes

iwouldprefernottosay wrote: »

Now, having being keeping an eye on my credit file, I've found this week that HSBC have handed a debt over to a company called CapQuest (again, which was always conducted as per the DMP, with no late payments showing) and they've instantly put it as being a default, with 8 late payments? How can this be if I've been paying up as agreed?

If you've been on a DMP and haven't had defaults issued by all the companies you owe money to, then you've been REALLY lucky.

A default is issued when you've not stuck to the original T&Cs so by entering a DMP (or any other payment arrangement which is less than the originally agreed contract) - you have broken these and are likely to get a default issued.

Similar situation with NRAM (and surprised they haven't defaulted you as well) - yes, you're sticking to a payment arrangement but as it's not as per the originally agreed contract then they are entitled to issue a default (and having late payments showing is more lenient).

iwouldprefernottosay

Oh wow, I didn't realise that, that sort of changes everything I was thinking :eek:

So even though I'm going through CCCS, DMP'ed, I can still get Defaults registered against me? Am I correct in saying that?

Thanks for the help, sorry for being a little dumb to it all, I really shouldn't have buried my head in the sand like I did.

give_them_FA

Which is what I was coming to, if you are not a homeowner then maybe you need to consider just walking away from the lot, your credit file is in tatters already so little to lose. I did just that and no-one did anything.

Northern Rock = effing cheek, only reason they still exist is because they took billions off the taxpayer to bail out their incompetence, so don't feel too beholden to them.

rising_from_the_ashes

iwouldprefernottosay wrote: »

Oh wow, I didn't realise that, that sort of changes everything I was thinking :eek:

So even though I'm going through CCCS, DMP'ed, I can still get Defaults registered against me? Am I correct in saying that?

Yup .... you honestly have been really lucky if others haven't defaulted you - more info here http://www.payplan.com/frequently-asked-questions/debt-management-plans.php

Quoted from the above link "By entering into a DMP, your creditors can issue a default notice as you are defaulting on your original credit agreement. That is, although you are making monthly repayments, the payment is likely to be less than you originally agreed to pay when you entered into the original credit agreement. If you receive a default notice, it doesn't automatically mean the creditor is going to take legal action. The default will appear on your credit file for 6 years from the date it was issued."

iwouldprefernottosay

Well, my plan was to get on top over the next 2 years and look into buying a house (if possible), I'm guessing with new defaults to my name I'm screwed?

When you say walking away from it all, what do you mean? Bankruptcy? (I'd consider fleeing the country, but I'm guessing that's not what you mean )

My biggest concern would be getting a house ASAP really, I feel a bit lost with it all. :mad:

rising_from_the_ashes

give_them_FA wrote: »

Which is what I was coming to, if you are not a homeowner then maybe you need to consider just walking away from the lot, your credit file is in tatters already so little to lose. I did just that and no-one did anything.

This seems to be a common bit of advice GTFA ... I saw you advise something this morning to walk away from their debts too - is this your answer for every debt problem :mad:

Yes NRAM (and others) may be propped up with tax payers money but if people paid their debts back (like the OP and others are trying to do) and didn't walk away owing goodness knows how much - maybe this wouldn't have been needed.

give_them_FA

And maybe if the banks and credit card companies hadn't been so greedy and irresponsible about advancing money unsecured, tempted by the 25% interest rates they could charge the credit crunch wouldn't have happened, would it?

They get bailed out by the taxpayer and the bosses still collect their million pound bonuses; whilst people like our friend here have to live in hardship for years, whose side are you on?

Walking away is one of the possibilities. It isn't that hard. It's up to him not us. I would say that they have screwed him for getting a mortgage anyway, especially in today's climate.

So yes, I give real world advice, not the politically correct "you can live on baked beans on toast till you've paid it off" type.

Poosmate

One default isn't the end of the world. Regarding the late payments, althought CCCS are making regular payments have they missed a payment due deadline in the first intance meaning all other payments after that become late too? Maybe you need to check the payment due date against the actual payment date certainly for the Northern Rock debt. you may be able to get that one back on track if it's something simple like that.

As the HSBC one has now been passed to a debt collector and received a default, is there any chance you can save a few bob or gather any cash together with a view to making a full and final settlement on that one? You need to find out exactly how much your debt was when they passed it on to Crapquest then you'll have an idea of a figure you'll need to make a settlement on it.

As for Give Em FA's remark, I would ignore that. The person obviously has no backbone or strength of character to face up to their responsibilities - it's not like there's no help available for those struggling to make ends meet.

Best of luck to you and I hope you get it sorted.

Poo