Help - advice sought on DMPs, defaults and more!

dorachance

Hi

I'll try and keep this short! In 2011 (for reasons too complicated to go into) I took a drop in salary and found that I was struggling to pay back debts to four accounts (and two creditors) so I foolishly – and in a panic - took out a DMP with Gregory Pennington. My financial situation has since changed/improved drastically and so way back in Feb 2014 I cancelled my account with them and negotiated with my creditors a new repayment plan - since March I have managed to pay off a fair bit of my debt and *hope* to be debt free before the end of the year.

Since then I have been trying to get to grips with my Credit Rating - I have a number of concerns with Gregory Pennington which I have passed on to both DEMSA and the Financial Ombudsman - namely with admin charges (pfft), the fact that defaults were not placed on my accounts until 12 months after my original DMP was taken out, the fact that they still haven't conformed my account is closed, the way I felt pressurised into taking out a Think Banking Account and because they did not make explicit defaults would be placed on my file.

Anyway, I am waiting to hear back regarding my complaint - what I would like to know in the meantime is (and bear with me, this is a little rambling)

- can I change my credit report to remove defaults
- should I put on a notice of correction explaining that I am now exceeding min payment and that the previous DMP reflects a ‘blip’ - this is now resolved and I am in FT work
- should I make final offers to my creditors to clear the debt quicker or does it look bad?

Also, I am hoping to move house next year with my partner – previous mortgage brokers I have spoken to have advised to wait until defaults are at least a year old. Advice online suggests longer or shorter periods – I’m really confused! Does anyone have any further mortgage advice - is it one year two years?? Is it one year after default or after settled?? Or should I forget it for 6 years!!??

And lastly when I clear my debts - what's the protocol in ensuring this is reflected on my credit report? Should I ask the bank to provide a letter showing the debt is settled?

Hope somebody can help – I will keep you posted about Gregory Pennington.

MS CHANCE

Tixy

Hi

-If you defaulted on the accounts and were paying less than the minimum payment then it is very unlikely that you will get the defaults removed from your file.
If they are dated a lot later than when you entered your DMP it is sometimes possible to negotiate/complain to the creditors to backdate the defaults to an earlier date (ideally to within 6months of when you entered the DMP).

-If the accounts are defaulted it is unlikely to make much difference by adding a notice of correction. The fact that you are making payment towards the debts would be illustrated to anyone searching your file by the fact that the outstanding balance will be less than the defaulted balance

-for the purposes of a mortgage then having the defaults show as satisfied should make a difference as they will no longer be factored in to their affordability calculations. With unsatisfied defaults on file then a mortgage is very unlikely.

Regarding the mortgages/age of default. It really depends on such a lot of factors (amount borrowed, ltv etc) and different lenders will take different risks. I'd be surprised if you were able to get accepted for a mortgage with defaults less than a year old. I've seen people with 4-5year old defaults get accepted for a mortgage, all be it at relatively expensive rates.

If you already have a mortgaged property and are hoping to move then possibly your existing lender will allow you to port your mortgage which may be easier than obtaining a new mortgage with a bad credit history.

When you have cleared your debts the creditors will mark your credit files automatically to show that the defaults have been satisfied and that there is nil balance outstanding. That said it is worth ensuring you keep the last statement from them/final paperwork to show that the debt is paid.

dorachance

Thanks for your useful reply...confirms the sooner I get my complaint from Gregory Pennington resolved the better really, as hopefully this will allow me to backdate my default.

Just one last thing, my most recent default is dated as just over two years old with an amount still outstanding. Is the default date you refer to when it was issued (e.g. Two years ago) or when it was settled (in a few months time)?

Cheers

Tixy

Accounts/defaults drop off your file 6 years from the date of default as shown on your credit file. The date the debt is settled does not affect this.

GP have nothing to do with what date a default is added to your credit file.

If you feel a creditor (or debt collector) has unfairly registered a default late then you would need to complain to the creditor direct.

dorachance

Okay that's helpful - I need a response from GP anyway as I am still waiting on a breakdown of what was paid to whom and when which will be handy when I contact the bank.

Cheers

glentoran99

What exactly is your complaint re:- admin charges, they charge for something you can do yourself but they are pretty up front about it?

dorachance

I have a few issues with them tbh -I'm annoyed that I'm still waiting for them to get back to me 7 months after I closed my account with a breakdown of the payments made out to my creditors and with confirmation that my account is closed.

I'm also a bit peeved that during this time I received countless texts, calls and letters asking me to get back with them - also I felt pressurized into opening a Think Banking account that incurred a monthly charge (I know I should have looked into this but I had just lost my job and was in panic mode) And lastly the fact that I found dealing with my creditors relatively straight forward means that I can't help questioning whether that warrants a £50 quid fee a month for an equivalent service.

I probably shouldn't have taken a DMP in the first place, but hey ho, the main thing is that I have nearly cleared my debt and feel much better equipped to deal with my attitude towards money (and saving!!)

Tixy

dorachance wrote: »

-I'm annoyed that I'm still waiting for them to get back to me 7 months after I closed my account with a breakdown of the payments made out to my creditors and with confirmation that my account is closed.

Have you tried sending them a subject access request under the data protection act? that should give you all the key information you require and they have 40 days to comply with the request.

glentoran99

you also ask your creditors to give you the info as to what payments they have recieved