AP/DMP markers VS defaults

welshiegirl

Hi there, just wondering if anyone will be able to help me, long time lurker here and I hope I'm in the right thread.

I am on a DMP with Payplan and have been for around 3/4 months, really want to get all my debt paid and this should be done by start 2017 which is fab news for me!

However, the whole point of doing the DMP was to get out of debt ASAP and get myself on track to get a mortgage, so I'm checking my Noddle religiously and now I'm a bit confused.

I have 5 creditors all with the following credit file markers:

Natwest loan - DM marker placed Dec 13 then Jan 14 was OK
Natwest OD - AR from Jan 13
Natwest CC - AA from Dec 13
Barclaycard - AA from Nov 13 and AR from Dec 13
Wonga - AR from Jul 13 and DM from Dec 13

1. Are the markers the same across all 3 credit ref agencies?

2. Can I ask for defaults rather than AR/DMP? I've received notice of default from Natwest but seems to be DM/AR when reported on Noddle? As I understand the AR will stay on my file for 6 years from 2017/when my DMP is paid off rather than if a default was placed now, which puts a dampener on my mortgage plans until 2023

Any help muchos appreciated, I'm happy to send letters and put loads of work in to make sure I can get my credit file in better shape for the future

Thanks

Jason_Bourne_2

I tried with mine, made all the usual arguments but got nowhere.

It would seem that the ap markers will stay but then you can fight to get the account removed from your credit file at the 6 year point as this is when you would be in a worse position.

Apparently DMP changes the ap rules and the 6 month thing doesn't necessarily apply.

That's what I've heard from people who have been in DMP.

http://ico.org.uk/~/media/documents/library/data_protection/detailed_specialist_guides/default_tgn_version_v3%20%20doc.ashx

welshiegirl

Jason_Bourne wrote: »

I tried with mine, made all the usual arguments but got nowhere.

It would seem that the ap markers will stay but then you can fight to get the account removed from your credit file at the 6 year point as this is when you would be in a worse position.

Apparently DMP changes the ap rules and the 6 month thing doesn't necessarily apply.

That's what I've heard from people who have been in DMP.

What is the 6 month thing?

And so at 6 years you can say well this is now still on here as AP but a default would be better and essentially backdate the default? It's really confusing. Thanks for the reply

Thrugelmir

3 satisfied defaults or more on file will highly likely result in a decline on a mortgage application on the basis of adverse credit.

Stewart_78

Hi OP, to be clear. Once an account is defaulted, all trace of that account should fall off your file 6 years after the date of default. If you try to get credit during those years you will likely not be successful. However, if they keep marking your account with AP or AR markers, the account will stay there until 6 years after you satisfy the account ie, pay it off. So what you want is all those accounts defaulted ASAP.

Reasons why they might not is that you are paying too much for them to bother. Other times they will mark it AR for a couple years and then slap on a default for no good reason, just to mess you up.

You need to see which accounts have sent out default letters as the files can take a while to update. Firms like Barclaycard are notorious for using AP markers when they shouldn't and also continuing to charge interest etc.

My advice to anyone entering a DMP is not to pay a penny until all accounts are defaulted.

welshiegirl

Thrugelmir wrote: »

3 satisfied defaults or more on file will highly likely result in a decline on a mortgage application on the basis of adverse credit.

But I wouldn't be applying for a mortgage until the defaults had dropped off and I could rebuild the credit file.

sirwiggum

ARs are a headache as they stay on file.
So when you make your last payment, it is visible until that last payment disappears in 6 years.

eg. Default in August 2014, say it takes 5 years to pay off, off file August 2020
vs
AR in February 2014, 5 years to pay off in Feb 2019, stays on file until Feb 2025 (!)

I used the 6 1/2 year vs Default argument to get my AR account removed. Others though have been fobbed off.

Jason_Bourne_2

welshiegirl wrote: »

What is the 6 month thing?

And so at 6 years you can say well this is now still on here as AP but a default would be better and essentially backdate the default? It's really confusing. Thanks for the reply

6 month thing is the recommended maximum term for an arrangement to pay.

If they won't change it to a default they will keep the AR markers there. But if you have settled the account they are likely to drop the account off your file (not backdate default) at the 6 year point in the basis that you are now in a worse position than someone who defaulted.

welshiegirl

Jason_Bourne wrote: »

6 month thing is the recommended maximum term for an arrangement to pay.

If they won't change it to a default they will keep the AR markers there. But if you have settled the account they are likely to drop the account off your file (not backdate default) at the 6 year point in the basis that you are now in a worse position than someone who defaulted.

From what I've read on here and consumer action however this isn't guaranteed which is just silly to me... There seems to be no consistancy.

welshiegirl

sirwiggum wrote: »

ARs are a headache as they stay on file.
So when you make your last payment, it is visible until that last payment disappears in 6 years.

eg. Default in August 2014, say it takes 5 years to pay off, off file August 2020
vs
AR in February 2014, 5 years to pay off in Feb 2019, stays on file until Feb 2025 (!)

I used the 6 1/2 year vs Default argument to get my AR account removed. Others though have been fobbed off.

Exactly my AR/AP will stay on until 2023 at this rate, I want to pay but I also want to be able to get on with my life.

welshiegirl

Stewart_78 wrote: »

Hi OP, to be clear. Once an account is defaulted, all trace of that account should fall off your file 6 years after the date of default. If you try to get credit during those years you will likely not be successful. However, if they keep marking your account with AP or AR markers, the account will stay there until 6 years after you satisfy the account ie, pay it off. So what you want is all those accounts defaulted ASAP.

Reasons why they might not is that you are paying too much for them to bother. Other times they will mark it AR for a couple years and then slap on a default for no good reason, just to mess you up.

You need to see which accounts have sent out default letters as the files can take a while to update. Firms like Barclaycard are notorious for using AP markers when they shouldn't and also continuing to charge interest etc.

My advice to anyone entering a DMP is not to pay a penny until all accounts are defaulted.

From what I can remember while at work, I will need to check when I get home, but Natwest have defaulted my loan and CC. Only had threatened defaults elsewhere.

Not really sure what to do now, I didn't realise this would be the case when entering the DMP and thought I would be defaulted straight away. I doubt PayPlan would be happy with me stopping the payments for 3 months then re-entering the plan, also I'm worried about risking CCJs