Defaults on a DMP

me123

Hello
Sorry if this isn't on the right board! I checked my credit file on noddle last night and saw that for the last 3 and a half years HSBC have put that I have defaulted on my payments on my loan when in fact for the last 3 and a half years my partner and I have been on a DMP with stepchange. All the other companies on our DMP are all showing green and up to date apart from HSBC. They passed our debt on to metropolitan collection services soon after we started our DMP. Can HSBC put constant defaults even though the debt isn't with them any more? We only have 1 more payment to make to them and the account should be settled, how long would it take for my score to start to improve with that on there? Should I query it?
Hope this made sense! Thanks for reading

fermi

Metropolitan are just a part of HSBC, so your debt hasn't gone anywhere. You are still paying HSBC really.

Depending on how much compared to the original required payments for the debts they are getting under the DMP, a default may be the appropriate thing for some creditors to record on your file.

In fact, if it's pretty inevitable or likely that a default will be recorded at some point, it's arguable that it's better to get it recorded sooner than later, as a defaulted account is removed completely from your credit report 6 years from the initial default date. The sooner it happens the sooner it will clear off your report.

Regards the "D" or "8" each month, that is the normal way to show a defaulted account. It's not a new default each time, but just the status update on the original.

The green status or marker show up to date or 1-6 months in arrears on credit reports relates only to how you are paying compared to the original contractual payments on the debt. So once the account it recorded as a default, they can't be used again as the original agreement has ended, and the status just stays a default from then onwards. It's normal and just the way these things are shown in these circumstances.

me123

Thank you for your quick reply! I see what you mean. so in about 2 years time the account will no longer show on my file? The debt will be paid off in 1 and a bit payments, so it will be settled by Xmas! On noddle my score is 1 out of 5 im sure there are better companies to use, but noddle was free!

kingstreet

me123 wrote: »

On noddle my score is 1 out of 5 im sure there are better companies to use, but noddle was free!

It's the online presence of Call Credit, so it should be fine for the data it contains.

However, ignore the "score" any of them provide as they do not have all the information lenders need to consider a credit application.

fermi

me123 wrote: »

Thank you for your quick reply! I see what you mean. so in about 2 years time the account will no longer show on my file?

Correct. There will be no sign on your file that it ever existed.