DMP & Mutual Support Thread - Part 10

Puzzcat

tayajade wrote: »

Hi all,

Having not been to the forum for a few months it's lovely to see familiar dmp'ers and new faces too!

We are now 5 months into our Dmp after having a lightbulb moment in May and we have had no trouble from our creditors, all accepted the DMP and froze interest (Barclay card are still charging 3%) and we have defaults from all but barclaycard which is great!

The first Christmas without credit cards has been a big bump into reality, it's been stressful and at times a little depressing but we are nearly there and now we are thinking that although we haven't bought Christmas presents for each other this year we won't be dreading that credit card bill in January like many others! We are both due pay rises in January and in the summer our son will finish nursery so no more nursery bills will help us massively and we might actually get ourselves an emergency fund saved away!

Should I be asking barclaycard for a default at this point or is it way too early in the Dmp?

Hi, You could ask but they don't appear to be very generous with giving them! They much prefer the dreaded ap markers...
Puzz.x

dazla

tayajade wrote: »

Hi all,

Having not been to the forum for a few months it's lovely to see familiar dmp'ers and new faces too!

We are now 5 months into our Dmp after having a lightbulb moment in May and we have had no trouble from our creditors, all accepted the DMP and froze interest (Barclay card are still charging 3%) and we have defaults from all but barclaycard which is great!

The first Christmas without credit cards has been a big bump into reality, it's been stressful and at times a little depressing but we are nearly there and now we are thinking that although we haven't bought Christmas presents for each other this year we won't be dreading that credit card bill in January like many others! We are both due pay rises in January and in the summer our son will finish nursery so no more nursery bills will help us massively and we might actually get ourselves an emergency fund saved away!

Should I be asking barclaycard for a default at this point or is it way too early in the Dmp?

Don't waste your time asking BC, they won't default you. I've been trying for the last 4 years. They do keep saying tho, that an AP is better than a default, as future creditors look more favorably on someone who has AP's rather than defaults, other creditors have also said the same to me, so don't get too hung up about getting defaults...do you even want more credit in the future anyway?

Sazzie23

dazla wrote: »

Don't waste your time asking BC, they won't default you. I've been trying for the last 4 years. They do keep saying tho, that an AP is better than a default, as future creditors look more favorably on someone who has AP's rather than defaults, other creditors have also said the same to me, so don't get too hung up about getting defaults...do you even want more credit in the future anyway?

Hi Dazla

Useful post thanks - I'm afraid its in my 'too much hassle' cupboard, but I guess if you are likely to be looking for a mortgage in the next xx years it possibly makes a difference. The thing is the defaults disappear, the AP's don't :mad:

Hopelessly_Hopeful

Morning

APs do disappear but take longer - 6 years after account settled rather than when they are applied as with defaults.

HHx

sentientpoet

tayajade wrote: »

Hi all,

Having not been to the forum for a few months it's lovely to see familiar dmp'ers and new faces too!

We are now 5 months into our Dmp after having a lightbulb moment in May and we have had no trouble from our creditors, all accepted the DMP and froze interest (Barclay card are still charging 3%) and we have defaults from all but barclaycard which is great!

The first Christmas without credit cards has been a big bump into reality, it's been stressful and at times a little depressing but we are nearly there and now we are thinking that although we haven't bought Christmas presents for each other this year we won't be dreading that credit card bill in January like many others! We are both due pay rises in January and in the summer our son will finish nursery so no more nursery bills will help us massively and we might actually get ourselves an emergency fund saved away!

Should I be asking barclaycard for a default at this point or is it way too early in the Dmp?

As mentioned earlier in the thread, I am at the point where I can clear my BC balance. It originally 'defaulted' in 2006, and they have been marking my file with AP markers ever since.

On the basis that I was about to clear the balance (although I didn't tell them that) I wrote a letter of complaint (see below). They called me two days later and agreed to remove all info from all three CRAs. That was a Friday. When I checked my files the following Monday the BC info had gone from all three.

If your DMP is likely to run longer than six years, I'd leave it until BC would have dropped off your file if a default had been correctly applied. If not, I'd at least wait until you're near the end of the DMP, and try to get them to backdate the default using the argument below.

I believe BC charge an interest rate depending on what your monthly payment is as a percentage of the remaining balance. I've been paying around £50 for what seems like forever, and as the balance has come down (my DMP has been running since 2006), so the interest has gone up each year. I recently discovered it has been at 12.9 per cent for the last few months!

This was the letter I wrote to get the AP markers removed:

LETTER OF COMPLAINT

Ref: Barclaycard account xxxxxxxxxxxx

I refer to the above Barclaycard account, which is currently being reported on my credit reference files.

You have been reporting ‘AP – arrangement to pay’ markers on the above account as far back as the CRA files will show. The account originally entered a state of default in 2005/6, and since March 2006 has been managed through a debt management plan with xxxxxxxxxx.

The AP markers place me at a considerable disadvantage compared to a debtor who has had an account officially defaulted, and as it stands the AP markers will remain on my file until at least 2021. It would appear you have used arrangement to pay markers in place of a default on the account. It is understood that the Information Commissioner’s Office does not agree with this and states that this equates to unfair practice:

[FONT=&quot]The definition of a default
9. A ‘default’ can be said to occur as soon as a borrower fails to meet the terms of their credit arrangement.

An ‘arrangement to pay’
21. This involves a temporary, short-term (up to six months) arrangement where the lender agrees to accept reduced payments.

I believe therefore it is against Information Commissioner's Office guidelines for this debt not to have been defaulted on or before 31 December 2006. This would also bring it in line with xxxxxx accounts I held that were recorded as officially defaulted in 2006.

I ask therefore that you place a default date of 31 December 2006 with all 3 credit reference agencies for the above account. This will bring it in line with my other debts that were all defaulted at the same time on entering my DMP.

These AP/AR markers are likely to cause considerable problems to me financially in the future as the account should have been defaulted in 2006 and the default removed in 2012. As a result, the current data will be displayed potentially [FONT=&quot]9[/FONT] years longer than necessary.

I look forward to receiving your prompt and proper reply, and in the meantime I will continue to make payments on this account as agreed until fully paid. [/FONT]

[FONT=&quot]Yours faithfully,


[FONT=&quot]You'd obviously have to tailor it for your own [FONT=&quot]info and dates, but you get the idea ;-)

[FONT=&quot]ETA: I can't take all the credit for the letter as I found [FONT=&quot][FONT=&quot]the basic template[/FONT] somewhere else on the forum but can't remember the thread![/FONT][/FONT]
[/FONT][/FONT] [/FONT]

Sazzie23

Hopelessly_Hopeful wrote: »

Morning

APs do disappear but take longer - 6 years after account settled rather than when they are applied as with defaults.

HHx

Thanks HH I never though if it like that, ...i suspect I may dissappear first (!!!!!! of smoke and vanishes)..:D

Sazzie23

Ok been a bit fed up with some stuff - started playing around with the spreadsheet for a milestone. Can say that if I continue paying at the rate I have been, should have paid all the DMP debts in 40 months. :eek: That doesn't sound quite as long as the almost 4 years I've been working on:D

40 from Jan 2015 = last payment would be April 2018...weeee roll on 2018 !!

Time_to_face_the_music

sentientpoet wrote: »

As mentioned earlier in the thread, I am at the point where I can clear my BC balance. It originally 'defaulted' in 2006, and they have been marking my file with AP markers ever since.

On the basis that I was about to clear the balance (although I didn't tell them that) I wrote a letter of complaint (see below). They called me two days later and agreed to remove all info from all three CRAs. That was a Friday. When I checked my files the following Monday the BC info had gone from all three.

If your DMP is likely to run longer than six years, I'd leave it until BC would have dropped off your file if a default had been correctly applied. If not, I'd at least wait until you're near the end of the DMP, and try to get them to backdate the default using the argument below.

I believe BC charge an interest rate depending on what your monthly payment is as a percentage of the remaining balance. I've been paying around £50 for what seems like forever, and as the balance has come down (my DMP has been running since 2006), so the interest has gone up each year. I recently discovered it has been at 12.9 per cent for the last few months!

This was the letter I wrote to get the AP markers removed:

LETTER OF COMPLAINT

Ref: Barclaycard account xxxxxxxxxxxx

I refer to the above Barclaycard account, which is currently being reported on my credit reference files.

You have been reporting ‘AP – arrangement to pay’ markers on the above account as far back as the CRA files will show. The account originally entered a state of default in 2005/6, and since March 2006 has been managed through a debt management plan with xxxxxxxxxx.

The AP markers place me at a considerable disadvantage compared to a debtor who has had an account officially defaulted, and as it stands the AP markers will remain on my file until at least 2021. It would appear you have used arrangement to pay markers in place of a default on the account. It is understood that the Information Commissioner’s Office does not agree with this and states that this equates to unfair practice:

[FONT=&quot]The definition of a default
9. A ‘default’ can be said to occur as soon as a borrower fails to meet the terms of their credit arrangement.

An ‘arrangement to pay’
21. This involves a temporary, short-term (up to six months) arrangement where the lender agrees to accept reduced payments.

I believe therefore it is against Information Commissioner's Office guidelines for this debt not to have been defaulted on or before 31 December 2006. This would also bring it in line with xxxxxx accounts I held that were recorded as officially defaulted in 2006.

I ask therefore that you place a default date of 31 December 2006 with all 3 credit reference agencies for the above account. This will bring it in line with my other debts that were all defaulted at the same time on entering my DMP.

These AP/AR markers are likely to cause considerable problems to me financially in the future as the account should have been defaulted in 2006 and the default removed in 2012. As a result, the current data will be displayed potentially [FONT=&quot]9[/FONT] years longer than necessary.

I look forward to receiving your prompt and proper reply, and in the meantime I will continue to make payments on this account as agreed until fully paid. [/FONT]

[FONT=&quot]Yours faithfully,


[FONT=&quot]You'd obviously have to tailor it for your own [FONT=&quot]info and dates, but you get the idea ;-)

[FONT=&quot]ETA: I can't take all the credit for the letter as I found [FONT=&quot][FONT=&quot]the basic template[/FONT] somewhere else on the forum but can't remember the thread![/FONT][/FONT]
[/FONT][/FONT] [/FONT]

This is one to save in my templates. Thanks very much sentientpoet :T

TTFTM x

Time_to_face_the_music

Sazzie23 wrote: »

Ok been a bit fed up with some stuff - started playing around with the spreadsheet for a milestone. Can say that if I continue paying at the rate I have been, should have paid all the DMP debts in 40 months. :eek: That doesn't sound quite as long as the almost 4 years I've been working on:D

40 from Jan 2015 = last payment would be April 2018...weeee roll on 2018 !!

Great news Sazzie, 40 months sounds so much better than almost 4 years. These are the things that keep us inspired and motivated :j

Oh I love my spreadsheets! :rotfl:

TTFTM x

spot3

Sazzie23 wrote: »

Ok been a bit fed up with some stuff - started playing around with the spreadsheet for a milestone. Can say that if I continue paying at the rate I have been, should have paid all the DMP debts in 40 months. :eek: That doesn't sound quite as long as the almost 4 years I've been working on:D

40 from Jan 2015 = last payment would be April 2018...weeee roll on 2018 !!

40 months is definitely better than 4 years! You can count that down in 10s rather than 12s.