Clearing the defaults

Goku2010

Hello all!

I am in need of some friendly advice. I set up a DMP last year and have about 6 debtors. They included some personal loans and some credit cards, and some closed down accounts with overdrafts.

Now, as you will know, these all had do be defaulted. I recently spoke to Experian about my credit report, and they said that defaults remain on file for about 6 years.

Perhaps this is a silly question, but as long as the defaults aren't cleared in 6 years, they will still remain on the credit report - is that correct? My DMP will take me up to 9 years, but if I get the job I'm after, I plan to cut this down drastically by paying a larger monthly amount than the original payments combined before the DMP (just over £750).

If I'm able to do this, whatis the best way to clear those defaults off? I feel I should start with the smaller debts first, e.g, £600 overdraft, and try and close those off as soon as possible. Should I contact the debtors directly to make payment or continue to do it through the CCCS?

I will call the CCCS helpline for advice, but I wanted to get your opinions.

I've been absent from this site for a year, but just spending the day on this forum I have discovered some incredibly useful things. I've been without a visa debit card for almost two years and it has been difficult, I recently got a 3v prepay credit card, but of course whilst thats fine for ordering over the net, its useless in bricks and mortar stores.

Thanks to you all, I have read (and applied for) a cashplus mastercard which will help me out immensely, and I'm considering applying for the Citibank account - although at the moment I doubt I would get it with so many defaults on my credit report.

if you've reached this far in the post, thanks for your time, and any responses in advance. This is probably the most useful forum I have ever visited and its thanks to readers and contributors such as yourselves that make it so.

Any advice gratefully received!

All the best! :T

sammy115

Not sure if Citibank will give you an account. They turned me down recently, and i have defaults. Have you done a credit check yourself, you can get free trials and they sometimes match you to people willing to give you bank accounts based on your theoretical credit score.

As to the defaults go over to https://www.consumeractiongroup.co.uk and read the default forum over there. There is an arguement at the moment that a default should not be kept on your credit file once it is satisfied as you did not sign to say that they could do this. (Not really explaining myself very well). Also read this http://www.learnmoney.co.uk/credit-cards/remove_default_notice.html

Defaults come off your credit report six years after the date of the default, not six years from when you paid the debt.

HTH and good luck

smilealot

Hi,

Not sure what the best thing to do is, perhaps pay off the creditors who are still charging you interest or charges? Maybe you've been lucky and don't have any of those.

Let us know how you get on - good luck!

smilealot :rolleyes2

Goku2010

Thanks sammy115, through the CAG link I came across the following:

http://www.insolvencyhelpline.co.uk/default-notices/what-is-a-default-notice.htm

The piece that would most apply to me would be:

Payments are still in default but a repayment schedule has been agreed or you wish to agree a revised repayment schedule

Certainly from what you say and what I've read so far, there seems to be nothing stopping me from sending out some polite letters asking for the defaults to be removed. All the debtors are paid by CCCS and have agreed to the respective plans, so its worth a shot! :j

To smilealot

Thanks! In fact, one of my debtors is the Smile Internet bank! CCCS told me that "eventually" the interest would be frozen and that most of my debtors would sell off my account to a debt collection agency. What I will probably do next week is call around the debtors and get the current figure as it stands with each of them and find out what interest charges are in place, and as you say figure out which would cost me the most in the long term.

Thanks to you both for the advice :-)