Defaults on DMP

Seth0571_2

Hi

Wondered if anyone could help, have been in DMP for 3 years with another 4 to go through Stepchange who I cannot fault have been great.

Of my 7 creditors 2 have defaulted me. The defaults appear every month & thinking of contacting these creditors to see if there is anything I can do (which I don't expect I can).

Do the defaults carry on until the end of my DMP or do they finish 6 years from the initial default? At this rate feels as if a better option would have been IVA as credit rating will be shot for around 13 years if defaults do not start counting down the 6 years til finishing the DMP.

Brightspark87

Hi! Defaults will show for 6 years from the date of default, then they fall off your credit report. So when they fall off depends on when they defaulted you.

When you have repaid the defaulted amount it will be updated to show as satisfied.

However, be aware that the others could potentially default you at any time and increase the time you will have defaults showing on your account. Unlikely as you have been making payments for 3 years but still could happen.

They will not remove defaults unless they were incorrectly issued so you cant get these removed. Each month they will still report as defaulted even when you have paid off the debt.

Hope this helps, don't get disheartened and GOOD LUCK!

fermi

Seth0571 wrote: »

Do the defaults carry on until the end of my DMP or do they finish 6 years from the initial default?

The default, history, and in fact every single trace of the defaulted account is removed 6 years after the initial default date.

chezba

Can I just clarify re. the 6years as I thought it was 6 years after the account was marked as satisfied? So in theory once I've made my last DMP payment, I will have another 6 yrs of defaults showing on my credit record? Not that I'm worried as looking forward to being debt free and then saving the amount i've been paying to DMP so I'll never need a credit card etc again!!

fermi

On a defaulted account everything is removed 6 years from the original default date.

On an account where a default has not been recorded everything is removed 6 years from the settlement date.

See: https://forums.moneysavingexpert.com/discussion/4757020

Sounds nuts, but for most people on a longish DMP it's much better in the long run if they record a default and do that as early as possible. That way it all drops off 6 years from that rather than messing up your credit file for 6 years after the DMP finishes.