Help, Guidance and a Miracle!

Dmb18

Hi,

New forum user here so please be nice!,

After some guidance here as struggling to get my head around things.

I have been on a DMP for 6 years now after getting into money trouble when a relationship breakdown happened as I struggled to make payments on the debt while living on my own.

Now 6 years later and am now married and have a daughter and haven't missed a payment with my DMP in the duration of time since it was set up.

I have asked for a settlement figure (which was more than was on my DMP account) and also a short settlement figure. The full settlement figure is too much right now for me to pay but reading into things the short settlement figure will stand on my credit report for another 6 years. My case officer said that this shouldn't have a detrimental Effect on the credit report, is this right?

There are 3 accounts in question which have been marked as default but one account wasn't defaulted until 2010 even though it was sold to ancollection ageny in 2006/07 whereas the other accounts were defaulted in 2006/07. Is this right?

Basically what I wanted to ask that was it best for me to short settle the accounts or continue on the DMP?

My case advisor also said that the creditors can also apply another default on my account after the previous one has dropped off.
Totally hold my hands up and say yes I was stupid in my younger days, but now I've grown up (finally) and shown that through the DMP that I am to make payments on time and not miss and deadlines.
It's just the default notices which really I would like to get rid of as in a year or so we would like to buy a house (the wife has a good credit report) and its just my stupidity in the past which scuppers this.

Apologies for the long winded topic but just looking for some help here and appreciate anything anyone has to say,

Thanks

Tixy

Hi and welcome?

Who are you using for your DMP?

When you say you asked for a short settlement offer - who was that from - each of your creditors individually, or you asked your DMP organiser. If the latter did they speak to creditors or did they just come up with a figure?

If you settle for a reduced figure that account entry on your credit file will usually be marked as partially settled. Providing that account already has a default then the partially settled entry will go from your file along with the rest of the account entry 6years after the default date. So its not another 6 years from now, but 6years from the different default dates.

Most people would say that with several defaults already on file that adding partial settlements would not make your file really any much worse - as its already in a pretty dire state in the short term.

Your case advisor is incorrect - a lender cannot add a new later default to a credit account. Worth ensuring you keep a copy of your credit file with original default dates on by the way.
If any creditor tried to - or more likely any debt collector buying your debt tried to - you would complain with evidence of the old default and require them to remove it.

The chance of getting the defaults already there removed earlier than the usual 6years is very very slim.

Dmb18

Thanks for the reply!!

I've been using PayPlan for the past 6 years.
I asked PP to speak to the creditors on my behalf in which they did and came back with the amount.

So the Halifax account for example:
I defaulted in November 2006. If I short settle it will say partially settled until november 2012 or 6 years on from when they recieve the settlement?
Confused as I swear PP say 6years from the settlement?

My wife was going to get a loan to pay the short settlement and me transfer the money into her account to try and clean up my credit file.

I just don't really know what I should do to be honest.

Halifax and a loan's default are due to drop off by November this year and jan next year.

It's just the credit card default which I would have thought defaulted in 2006/07 like the others when sold to a debt collector. They didn't default until 2010 so that's 2016 till that comes off. How come they can put that on so late even though I make regular payments through PP since 2006/07? Why didn't they put the default date when the account actually defaulted back in 2006/07?

Tixy

When you have a default on your file the whole record disappears from your credit file after 6years. Payplan should know this.

A partial settlement would only stay on for 6years if the account did not have a default recorded.

Regarding the late default - is it listed in the debt collectors name? I guess you don't know whether the original creditor ever had a different default listed when the debt was in the name?

If the creditor has already registered a default when the debt collector takes over they must use the same date. Problem is they don't always, and sometimes give a brand new default date - if you can prove its happened (i.e a copy of a previous version of you credit report for example) then you can complain and get it corrected.

If there was never a default listed by the original creditor its harder work to do much. The official guidelines on registering default are complex - without a doubt the default should have been entered at the very latest when it was sold to a debt collector - but in reality its hard to do much. You could try complaining to the DCA but I don't know how far you will get.

Dmb18

I think the default is listed by the debt collector (westcott) but I never had anything from them saying they were defaulting the account. It could have gone to an old address but I know I sent an update of address when I moved - just can't prove it as didnt send it recorded delivery, bloody stupid looking back.

I did however have another letter from the same company chasing a different low amount of money from years ago would this count towards anything?

Dmb18

bump - just seeing if there is any more guidance on this?