End of DRO credit settlement dates

AG47

gethinoakes wrote: »

That's not the way a DRO works.

The DRO does show on the credit report, and will stay there for 6 years.

But some of the debts included on the DRO have not been cleared by the creditors and are still showing as being owed and un-settled.

When a DRO ends it doesn't automatically clear the debts, it's up to the creditors to do this and if you look at anyone else here who has talked about their debts after a DRO you'll see that quite often the creditors don't update the debts and leave them as un-settled.

Sometimes creditors even put up a fight and try to refuse that the debt is cleared and still try to get it back off you.


I have to wait 6 years for the DRO to go off my file, but there's no way I'm going to leave the debts that the creditors have yet to mark as settled on there as still owing... all that is doing is damaging my rating.

But after 6 years all debts are automatically wiped from your file?

If the DRO was the last on the file, then everything before that would be wiped on the six year date, no?

fermi

It's not always the last thing in you report. Quite frequently creditors do not default the account until some substantial time after the start of the DRO, meaning that if not corrected they would remain long after the DRO itself has come off your report.

As also stated, when the DRO is finished creditors MUST update the report to show that the debts have been satisfied. While the DRO is worse than any unsatisfied default, it makes sense to get that sorted and showing the way they should as soon as is practical after the DRO has finished.

Not just to make the report look marginally better in those 6 years, but going through the process of getting creditors to update the reports can help prevent debts being sold on to collectors post DRO, and the hassle that can entail, which can even something include incorrect re-registration of defaults.

Getting your credit file sorted is also a symbolic/psychological step for many, and it is the final thing to sort and puts the whole thing to bed as the saying goes.

Leaving anything incorrect until later an the 6 years can also make it more difficult to sort, as things get moved on, some creditors even go out of business, or it is harder to get things amended.

So for a variety of reasons it makes sense to do the clean up not too long are the DRO has finished,

gethinoakes

AG47 wrote: »

But after 6 years all debts are automatically wiped from your file?

If the DRO was the last on the file, then everything before that would be wiped on the six year date, no?

I don't know what it being the last thing on my report has to do with anything (and I don't know if it is).

On my report the DRO is listed, but it doesn't list any of the debts that were attached to it.

The debts that were in my DRO are listed separately in a different category on my report, still saying that they are owed. Therefore to anyone looking at my report they would think that I am still defaulting on these debts and that is why I need to get them settled.

AG47

fermi wrote: »

It's not always the last thing in you report. Quite frequently creditors do not default the account until some substantial time after the start of the DRO, meaning that if not corrected they would remain long after the DRO itself has come off your report.

,

So as long as they were all officially in default before the DRO, then you just have to wait six years?

I cant face it, mine was far too messy, I have no idea about contacting most of them, but I know for certain that they were all in default before I did my DRO years ago. Im looking to the 6 year anniversary to a clean credit file:)

fermi

AG47 wrote: »

So as long as they were all officially in default before the DRO, then you just have to wait six years?

If that is the case you could just wait if you don't care in the meantime.

It makes sense to keep an eye on your files even so though. As said, it can happen that creditors are naughty and sell the debts on to collectors, who in turn sometimes register their own more recent defaults. So I would suggest checking them every once in a while over the 6 years just to make sure none of those shenanigans has gone on, Again, should something like that happen then the sooner it is sorted the better, as it can be harder when they are older.

gethinoakes

AG47 wrote: »

So as long as they were all officially in default before the DRO, then you just have to wait six years?

I cant face it, mine was far too messy, I have no idea about contacting most of them, but I know for certain that they were all in default before I did my DRO years ago. Im looking to the 6 year anniversary to a clean credit file:)

No if they are 'default' then this is bad, they need to be 'settled'.

Defaulted means...
'Account is 'default' - credit agreement has ended'

But as far as I understand the account is marked as defaulted each month continuously and the balance is still marked as due.

The debts need to be marked as defaulted on no later than the start date of a DRO and then should be marked as settled no later than the end date of the DRO. So they should only be marked as being defaulted on for that year.

If you have any debts that are still marked as defaulted on after your DRO I strongly recommend you get in touch with those creditors and ask that they mark the debt as settled from the date your DRO ended.

Just changing one of my debts from 'default' to 'settled' after my DRO increased my credit rating by 109 points and after I sort these other two I'll have a pretty good score.

Don't just wait for the 6 years to be up, that just takes the DRO off your credit report - it may not take those debts off too.

fermi

Being unsettled with a D or 8 each month won't prevent the accounts coming off 6 years from the original default date, which would be with or before the DRO if dated correctly.

But yes, it does not look good in the meantime.

Saying that, the DRO, same as a bankruptcy, overshadows pretty much anything else, and I would take any 'score' that suggests different with a small mountain of salt.

gethinoakes

The DRO may overshadow anything else on my report, but surely having the DRO listed and any other debts marked as settled is much better than having those debts marked as still owing alongside the DRO. And getting those debts marked as settled is improving my rating.

It just goes with the credit building after a DRO such as getting a credit card to build it back up, keeping my file clean and settled is better than just thinking "oh in 6 years it'll all get wiped off anyway"

Lucy5781

One of mine has been sold on since DRO completed, it's the only one still showing as 'default' on noddle despite a previous letter to Aktiv Kapital, it's now showing as with CPA Group, sent them same letter today.

All others have been 'settled'.

Lxx