F&F to my creditors but in DMP?

mrs_w

Hello

I hope/wonder if anyone can offer any advice.

I'm in a DMP with Payplan, owe £4.3k

Buchanon Clark and Wells (Tesco Car Insurance) £70.25
Cabot Financial (can't remember what this was for!) £1266.08
Direct Legal (CitiFinancial credit card) £666.99
Halifax (credit card) £955.99
Dorothy Perkins Store Card £269.63
Next store card £489.84
Littlewoods £287.72
Natwest £145.79
Moorcroft (Shop Direct) £169.05

I should be debt free by Nov 2016 with my monthly payments being £198.

My income is about to increase (hurrah finally got a well paid job!) and I'd like to get rid of my DMP as quickly as possible.

None of these creditors appear on my noddle report - should I offer F&F settlements to them? if so how much? If they accept do they reappear on my report?

Thanks in advance!

fatbelly

You could try, but as they are all going to be repaid in full by November next year, don't expect spectacular deals!

No they won't reappear on your credit file once they have dropped off

Westminster

It depends what the status is of each of those accounts on all 3 of the Credit Reference Agencies.

It is quite likely that one (or more likely most) of those accounts is marked as arrangement to pay (or perhaps DMP is a marker these days - I cleared all mine a few years ago so not certain on current practice) on a monthly basis.

One of two things is likely to occur at the end of your DMP.

1. If an account was defaulted, then it will remain visible until 6 years after the default date (regardless of whether you are still in a DMP or not).

2. If an account was not defaults (which is worse for you really) - then it will be visible for 6 years from the date the account is settled - which is likely to be the end of your DMP.

So worst case scenario, you will have adverse information on one of more of the 3 CRAs until November 2022 which I would expect to have a fairly serious impact on your ability to obtain new credit.

The benefit of a F&F would be on accounts which are not yet defaulted as it would start the 6 year countdown from the date of settlement.

Hope that makes sense?

fatbelly

OP says none of them appear . Don't know if all 3 CRAs have been checked

On the basis of that, either the creditors have chosen not to report or (more likely) it has been six years since they were defaulted (scenario 1 above) and so won't reappear.

Westminster

OP only mentions Noddle (obviously the least comprehensive / up to date of the CRAs) so statutory report would be required from Equifax and Experian to be certain.

I had several items on those other two which never appeared with Callcredit / Noddle.

No action should be taken until you know the full situation.