DMP Exit strategy

dobbollah

In brief, Im on a debt management plan......and have been for nearly 5 years....

As I understand, assuming the debtors placed a default marker at the start of the DMP, then next year those defualt markers will fall off (after 6 years)

However...heres the question, I'm in a position to start achieving little pots of money to start paying off creditors, it will still take a couple of years but all the same...its positive progress.

So.....whats best from a credit perspective.

a: Get a settlemnt figure ie 80% of the balance and pay it to have the account closed with a 'settled but not paid in full' mark

b: pay in full to get a fully settled status and take longer to become debt free

Ultimately I want to get my credit file back on track at the earliest opportunity (not that i want more credit perish the thought) but want the weight of dept off my shoulders

NoMore

dobbollah wrote: »

As I understand, assuming the debtors placed a default marker at the start of the DMP, then next year those defualt markers will fall off (after 6 years)

Dont 'assume' go and find out, get a credit report, Noddle do one for free and you can sign up for experian for free for a month (dont forget to cancel)

Or get your £2 staturory report. You really need to know the state of your credit report before you can go about repairing it.

dobbollah

ive just ordered my £2 one.....will update when i get it. thanks

Sazzie23

BTW the F&F people advise to go in with a 25% offer to start with not 80% - might well make a difference. More likely to be accepted when its a DCA and with a long time to go on repayments, so maybe don't leave it as long as you think!

dobbollah

thanks for that, gonna start building a little pot next month, ive been shown a link to letter to send the creditors to send out so it starts here !

dobbollah

having now looked at the report, i have 4 creditors on my DMP, 2 show default as of decmber 2010, so in theory come december next year that black mark falls off my credit report...

however 2 creditors show 'late payment'

should I aim to try and get these settled first...?

Jeff_winter

Hi Dobbolla,
You seem to be in a similar position to myself. The problem with the accounts which are marked as late payment is that the accounts will stay on your file from the date you make the final payment. Therefore I believe that the late payment history will be there on your file for a further 6 years.

Is there any reason why these have not been issued with a default?

The defaulted accounts will drop off after 6 years regardless of the balance remaining.

dobbollah

i dont know why they havent......ill speak to my debt management company to see if they can reques it be default from the start date of the dmp i guess

B0B

Halifax didn't with me, even though they should have, and continued to charge me interest etc. And randomly chase me for arrears and late payments (even though I was on a DMP)


6 years later I have complained as I never really realised they shouldn't be, and they have refunded all interest and charges.

dobbollah

i spoke to Moorgate who handle one of the 'late payment' accounts.
I requested they default the account and backdate it to the start of the plan.
They informed me that they cannot default the account as we are in an agreement.

Whilst they said it shows late payment, when the magic day comes when there is a zero balance it will no longer show late, show settled and no permanent adverse mark from the settlement date.

Assuming (which I know you shouldnt do) everything they said was correct when its paid its paid and its shows a nice tidy settled status.

However, if I made a settlement offer it will show as only part settled and wont look so rosey.

I now know that I can make settlement offers on default accounts as they are default and part settlement matter not on those accounts.

But the ones that arent default, sounds like full payment might be best resolution (which is a shame as the other one is a Barclaycard for £4k)