Barclaycard default policy

dumpyboy

sourcrates wrote: »

This is a point I try to get over to people starting DMP`s.


The trouble is, they rush into things, because they are scared stiff of the creditors reaction to there non payment, they think the world will end or something, when in reality, very little happens at all.


A few letters, and calls, is the normal response, the debt collection process takes a very long time in most cases, months, even years sometimes.


I personally think its best to get your accounts defaulted, long before you start any kind of debt management, then at least you have a "line in the sand" and a definite end date, for the defaults at least.

I would totally agree if some one told me in 2007 giving in to mbna threats and paying them more money per month then any one else I would only be able to have a basice bank account and no other products , and in agreeing to the arrangement to allowe mbna to report that I did not make my contracted payments for nearly 29 years
But then none of us can have our time again

Movingon5464

Like you dumpyboy i would do things differently if i had my time again and probably spend too much time thinking about what i should have done. But in life we all make mistakes of some kind. We are where we are and need to deal with the sitaution we have.

Movingon5464

Spudgun - i don't know what you would be complaining about as they are not marking your file at all. If i was you i would print off a copy of all my credit reports as they are now. Then if they ever do start reporting this debt you could complain that they added nothing for 4 years of the DMP (and you have the proof) so is totally unfair to start reporting the debt later. At the moment you have nothing to complain to them about in my opinion. I have one creditor on my DMP who has never reported on it so I am just letting sleeping dogs lie on that one. As sourcrates said a debt 30 years old is almost certainly going to be unenforcable due to lack of a credit agreement so you need to be deciding if you want to pay this debt or not. I have chosen to pay my debts rather than CCA them and possibly avoid paying but never say never. I think that decision depends on your situation, how much of a struggle is it for you to repay and how fairly you feel the banks have treated you. You should read up more about CCA requests and enforcability to enable you to make a decision and maybe start a thread titled " CCA on 30 year old debt". That way you will get lots of advice from the experts on here.

Spudgun101

sourcrates wrote: »

30 years old ?

Sorry, the ONLY thing you should be doing is a CCA request to Barclaycard, when they write back to you, saying they haven't got a copy of your original agreement, you no longer need to pay !!!!

Why pay debts that can't be enforced ?

Are you aware of the legislation surrounding credit agreements and enforcability ?

I've made CCA requests on the two debts and i'm aware of the need for a credit agreement for the debt to be enforceable. My concern is if i make a CCA request to BC, how are they going to take it, as a gentle prod or a kick in the nuts . My feeling is nothing will change until i tell them that the debts are unenforceable and stop paying them.

Movingon5464 wrote: »

Spudgun - i don't know what you would be complaining about as they are not marking your file at all. If i was you i would print off a copy of all my credit reports as they are now. Then if they ever do start reporting this debt you could complain that they added nothing for 4 years of the DMP (and you have the proof) so is totally unfair to start reporting the debt later. At the moment you have nothing to complain to them about in my opinion. I have one creditor on my DMP who has never reported on it so I am just letting sleeping dogs lie on that one. As sourcrates said a debt 30 years old is almost certainly going to be unenforcable due to lack of a credit agreement so you need to be deciding if you want to pay this debt or not. I have chosen to pay my debts rather than CCA them and possibly avoid paying but never say never. I think that decision depends on your situation, how much of a struggle is it for you to repay and how fairly you feel the banks have treated you. You should read up more about CCA requests and enforcability to enable you to make a decision and maybe start a thread titled " CCA on 30 year old debt". That way you will get lots of advice from the experts on here.

I'm not complaining at the moment, just interested in how amenable BC are to changing AP markers to a default, should they notice that they're not reporting my debts to the CRAs.

Sound advice about starting a thread, i think there will be lots of good advice offered.

Movingon5464

So, a bit of an update of what I have learnt to possibly help others in a similar situation.

I have been looking into The Lending Code as Barclaycard subscribe to this. I called the Lending Standards Board and was told that point 43 of the code says that subscribers should refer to the Information Commissioners Data Protection Technical Guidance on Filing Defaults with CRA's so they should not really be saying they do not follow ICO guidance if they publicise that they subscribe to The Lending Code. Was told I could complain to FOS and state this but I am hoping not to have to go down that road. The Lending Standards Board do not investigate individual complaints but would be interested in the outcome.

I looked into the code a bit futher myself as there is a link to the code on their website and saw also that point 218 states that for personal customers subscribers should follow the creditor standards of the Debt Management Plan Protocol when dealing with protocol compliant DMP proposals and plans from accredited providers. Point 12.2 of the Debt Management Plan Protocol says "Creditors will place a default against the account in line with current practice and will place a DMP flag on the customers credit file for the duration of the arrangement to record the customers participation in and progress of the plan".

This makes sense to me. They report DMP markers so that the record shows that the debtor is repaying the debt but they also issue a default so that the record will fall off after 6 years. This means the debtor is not disadvantaged compared to someone who did not pay their debt and got a ccj or went for bankruptcy as the record will show for 6 years the same as the others but during that time the DMP markers show that even though it is a defaulted account the debtor is repaying through a DMP.

It is too late for me as my complaint is submitted but I thought this could be useul for others in the same boat if the company adding DMP markers to their credit file without a default subscribes to The Lending Code. It should say on their website.

Dandytf

iv'e been with SC.dmp since 2012,

My barclaycard is showing the AP markers.
I've recently noticed that barclaycard will report 6 yrs after account closure.

Apart from the posts and attempts to get Barclays to default the account.
Is there 1 example of someone who has let the AP marker run for the duration?

o.k. my credit history won't be clear...though am I correct in saying it will Improve when the account is closed?

Asking as my dmp is due to complete 11/2019 so i'm not going to panic and push for a default....lets be honest a dmp is what it is whatever the reason.I 'lost' control of may finances 2012.

runforlife

My Barclaycard markers are all over the place despite failing to keep to the contractual payments in October 2013. In the last 6 months i've had 5 Green OK's and 1 orange AA on Noddle. Goodness knows why.
My financial situation will change in February and then I will be making my complaints to get a default added from around May 2014.

crystal_pixie_2

It sounds like they are doing this to a lot of people. I wonder if we all clubbed together we might just get Barclaycard to change their policy?

I am thinking that now my debts are paid I am going to put a complaint in. I read your comments moving on and I think you are right - I would much prefer for these accounts to have been defaulted in 2011 and then they can be removed from my account in two years time.

bsclp118

Totally agree that the long term implications of a DMP are not made clear. I realise it is the right choice for some people but I feel that SC didn't really stress the implications. Whilst I agree that not being able to get credit for a while wouldn't be the end of the world, for me the prospect of never having a mortgage would be very upsetting.

I very nearly rushed into one thinking it was the best option and would allow me to manage my debts better without to much hassle from the creditors. So glad I came on here and realized that there was much more to it that just reducing your monthly payments and not being able to get a credit card/loan for 6 years!

Movingon5464 wrote: »

It is difficult to make sensible decisions when you are scared and I totally agree that rushing into things is the worst thing you can do. You need to weigh up all the options. I entered into a DMP with CCCS and while this was great at stopping the DCA's phoning and sending letters I can't remember them informing me of the impact on my credit file. I think they believe you are in debt so should not even be considering your credit file or getting credit again. But the reality is credit is not always a bad thing if you use it responsibly I.e. buying a property rather then renting. I remember feeling very alone and like I had ruined my whole life. This site hopefully helps people realise they are not alone and offers advice in how to deal with the problem rather than taking "advice" from creditors on what to do which is generally pay them every penny you have and more, and they will mess up your credit file anyway.

Movingon5464

Dandytf - I can't recall seeing a post from someone who has finished their DMP and had the AP markers all the way through. I have been on my DMP for over 6 years though so have had over 6 years of AP markers which are still showing on my credit file even though my defaults have now fell off. If you continue paying off Barclaycard in your DMP until 2019 the record will show complete with AP markers until 2025. You said you started your DMP in 2012 so if defaulted in line with ICO guidelines this record would fall of your credit file in 2018. A difference of 7 years is significant so if I was you I would ask Barclaycard to place a default on your file dated 2012.