DMP and Capital One...Defaulted after 1 month?!

curiology

Hi all, I am new to the forum and would like some advice about whether I am in a position to appeal a default.

I signed up with Step Change last October, and sent letters to my creditors advising them of this. It took SC around 6 weeks to secure all the necessary repayment plans with the creditors, and I thought all was well.

I checked my Experian credit score today, knowing it would have fallen a fair bit from 720, but to find it at 303 was a bit of a shock! It turns out that Capital One have slapped a default on me, although

A) I was withing my credit limit with them at time of DMP being put in place,
I was up to date with my payments with them up til that point
C) One payment was missed before the DMP payments started being made

I can see on my credit file they registered 1 late payment, then the next month moved it to an 8 and a default! Is this right?! I didn't realise they could/would do that as long as I had a DMP in place and hadn't gone over my limit/not paid them for months?

Do you think this is something I could get removed? As all other records on my account are showing as satisfactory and I would like to start rebuilding my credit score, so the default seems to have lowered it an awful lot.

marliepanda

You are looking at this from the wrong angle

Going onto a DMP IS a default. That is what it is, youre paying less than agreed, so, you're defaulting.

The quicker they go on, the quicker they come off (6 years after they are put on)

So, the fact Capital One put it on quickly is good, it will come off faster.

You cannot get it removed as you have defaulted, and you will get one from each of your other creditors too, the quicker the better.

Being on a DMP will pretty much trash your credit file for the 6 years after the defaults... was this not explained to you? Rebuilding your credit file is something thats a few years in the future....

~Beanie~

You won't get it removed as you have actually defaulted, if you have only just started your DMP then you will probably find you get more defaults off your other creditors later.

I would have thought is was better to default early as the sooner the default is applied, the sooner it will come off!

curiology

Ah I see! I will keep looking out for more then to come, I will hope they come quickly in that case and I can get them cleared all around the same time.
I wasn't struggling with repayments going into my DMP, I was being a stubborn !!!!!! and objected to paying the extortionate amounts of interest and this seemed the best way to halt it and at least only pay off the actual money I owed rather than at least 40% of each payment going to interest! Though of course I know it was all my fault for taking out credit anyway.
Aiming to be debt free in 5 years, all being well.

marliepanda

Thats the trade off I'm afraid, cut interest but trash your credit file

Good luck with being debt free!

Stewart_78

You need to make sure they do default you. Some, like Barclaycard have a reputation for using AP markers for years. Make sure you don't pay too much in the early days. This should ensure that interest is frozen and defaults happen promptly.