Help please - what goes on your credit files if on DMP?

lonely_2

...I need to know, as the confusion and mixed advice is making me very nervous.

I'm in the process of arranging a DMP and I know that once you default, it's shown on your credit files - but what exactly is shown and for how long.

If you were on a DMP, would a default notice appear against each creditor for the term of your DMP (mine will be about four and a half years), then for six years after that? Or like an IVA, is it just six years from the start, then it disappears? I am so scared that I won't be able to get a bigger mortage when I start a family - well not unless I want to wait ten years!

And is there a way that my I can protect my husband's credit rating (maybe by disassociating myself from him)? I heard that you can do this if you have a joint mortgage but no other joint finances (e.g. bank account)?

It would be great to hear from anyone with direct experience of these issues, especially if you've seen your credit files since being on a DMP and know exactly what is shown.

Thanks.

lonely_2

Can anyone help me? Please, any advice would go a long way. Nobody seems to be able to give a black and white answer.

lonely_2

Also, if you default on a debt, does each time you pay a reduced payment count as one default (so in effect you could default 60 times on one loan which you are paying off over five years)?

I'm hoping a guardian angel will descend on this thread and answer all my questions soon ;-)

HHH_2

sorry I cant help much except to say I am on a DMP and it shows as a late payment to begin with then as a default. unfortunately it doesnt seem to show that you are paying, just at a lower rate (via the dmp). to start with it's rather scary seeing all that stuff on you credit file but I'm sure we'll get used to it!! hope someone will be able to answer your quetions and put your mind at ease.

lonely_2

Hi HHH, you have been helpful, thank you. But can you clarify something - what exactly does it say? Does it have the word "default" under each of the debts? Or does it show you have defaulted each time you make a reduced payment - so it says something like "default x 20"? And have you asked anyone how long this stays on your file?

bonnie_2

It wiil stay on your file for 6 years, you can't take out credit whilst on a dmp anyway.

lonely_2

Thanks Bonnie - but is that six years from the start or end of the DMP?

I don't ever intend to take out any more credit apart from a mortgage.

Donedoingdebt

On my Experian report it states:
XYZ Bank PLC. Current Account.
Started 23/09/1980. Default £x amount.. Defaulted 31/03/2000.
Current Balance £x amount. Status History 8.

This is repeated for every account that I defaulted on.

These defaults will stay on your file for 6 years from DATE OF DEFAULT, whether it takes you 2 or 20 years to settle your account So for my example, the default showing ended on 31/03/2006.

You'll have to separate your finances completely to be able to disassociate yourself from your OH. I'm not sure about your mortgage query regarding the disassociation.

lonely_2

Thank you ever so much. I was working myself in such a state thinking about what would my credit file would look like for the next twenty years! I really appreciate your response.

james32_uk

I'm not no sure it's as cut and dried as that I'm afraid. Best check with the financial company thats looking after you but I think you get a new entry every time you make a new payment and so there could be a reference to your DMP for up to 6 years from your final payment.

Donedoingdebt

james23_uk wrote:

I'm not no sure it's as cut and dried as that I'm afraid. Best check with the financial company thats looking after you but I think you get a new entry every time you make a new payment and so there could be a reference to your DMP for up to 6 years from your final payment.

I've had 7 defaulted accounts with 4 DCAs & on every single one of them the default that was issued was only issued once & at the correct time, around 2000. The only one that was a problem was when Aktiv Kapital took over one of my accounts in 2002 & issued a new default on my file without any notification. After contacting Experian & them contacting AK, this was soon removed. Yes, my accounts are still showing on my file, but they are all showing up now as normal payments over the last 36 months as I have kept to the DMP arrangements. The last 36 months of account activity (Not the default) will stay on file for 6 years after settlement.