Debt Payment Plan (scotland) - Terms and conditions

MOUG23

Hi there,
Apologies if that has been posted before, new to the forum and couldnt see any previous posts.
Due to money issues, in February 2010 I entered into a Debt Payment Plan(scotland) which was accepted by all my creditors.
Since then, back in October 2015, I paid this DPP off early in full to all creditors.
I have just been informed that I have a "delinquent" account on my credit file, which turns out to be Barclays.
When I entered into the DPP, I was advised that I would struggle for credit for 6years due to the markers on my credit file, but after those 6 years had passed, my file would be cleared from bad credit.
I called in the other day to be told, that despite making regular payments to DPP which were passed to Barclays, and never missing a payment, that since my account was cleared in October 2015, it was still "defaulted" in this month and therefore I would have this "delinquent account" marker on my account for a further 6 years, putting it to 2021. This was not what I was informed of when I initially took the DPP out, otherwise I would have looked to exclude Barclays from the DPP and do my best to pay it off as normal, as there was only around 1 years left to run. But now I have this marker on my credit file until 2021, 10 years more than I would have had initially.
I was informed that the DPP would stop default markers from my creditors, like yourselves, and when I entered the DPP the 6 years span would have commenced then, not when I finished it. If I had declared myself bankrupt I would have a clear credit file after 10 years, and the DPP plan was meant to help people like myself get back on their feet earlier.
My other 6 creditors have been paid in the similar way Barclays has, and they are clearing my credit file within the next month or so, as the DPP would have met the 6 years on 22/2/16, so I am unsure how they operate this way and Barclays operate another way, however I understand its down to individual creditor how they operate, but as the DPP is government run, I thought all creditors would operate in a similar fashion.
I have now emailed Barclays to ask about it or appeal the marker.
But wondered if anyone knows any more information on this??
Just a bit of a kick in the teeth after thinking I would have a clean credit file in the next month or so, but now I'm not going to be!!
Thanks in advance,
Stevie

boo_star

Was the Barclays account definitely defaulted or did they mark it as an "Arrangement to pay?" If it was indeed defaulted, what is the initial default date for the account? October 2015? Or earlier?

I can see a few possibilities here.

1) It was defaulted some time ago but the account will show a "default" every month. This is normal, it doesn't default every month, it's just the current status of the account. The six year date runs from the date of the initial default, not from the last default marker added to the account.

2) They didn't actually default you but marked it as an "arrangement to pay." This will result in the entry remaining on your credit file until six years after the account is closed.

3) They really did default you in the month your account was paid off.

1 is completely normal and isn't really grounds for complaint (unless they really dragged their feet in defaulting you after you went onto the DMP.)

2 is a bit naughty. They probably shouldn't be using AP markers for years, it is really aimed at short term arrangements. I've heard of Barclays using AP markers for accounts that should really have been defaulted and my suspicion is they're abusing the system to penalise people for longer than it would otherwise allow. You could complain and ask them to add a backdated default (some time in the months following you going on the DMP.)

3 would be outrageous and if they actually did that I'd make it very clear that it is not acceptable. It's petty and vindictive and they should change the entry immediately.

MOUG23

Thanks got replying boo_star.....yeah it's a bit annoying.

Barclays have added marke my account with them as defaulted from the date I entered the DPP in February 2010, and every month since then, up to October 2015 when it was paid off, so they say that it's defaulted all that time and up to and including
Oct 2015!!!!
I was under the impression I would be marked as defaulted on the date starting the DPP and clear after 6 years, ( this month)...as you detailed in in point 1. They're also saying the account closed when paid off in Oct 2015. So another 6 years to go apparently.
Looks like they've went with both points 2 and 3 as you've detailed.
I've spoken with experian and after explaining it all, they've agreed that Barclays should run as the rest of my creditors did, defaulted at the start of DPP and should drop off my file in next few weeks. So they're querying with Barclays as they think it's wrong.

Although Barclays have acknowledged my email asking about this before I spoke to experian, and replied really quick, they still stuck to their guns but offered me £50 for no reason, only as I had , in their eyes, been misinformed by DPP at the start.......bit strange just giving away £50 for my email???

Hopefully experian will get it resolved, as they agree with the 6 years from beginning of DPP not when account settled.....ill keep you posted with result, fingers crossed!

I couldn't find anything detailing the terms of the DPP and the 6 year thing...

Many thanks

boo_star

If the initial default date is Feb 2010 then it drops off in Feb 2016.

Showing a status of "default" every month is completely normal, it has no impact on the date the account is removed from your file.

I'd accept their very generous offer of £50, you were worrying over nothing. Just accept it quickly before they realise they havent done anything wrong!

MOUG23

Great thanks a lot, boo_star.....that's what I had hoped, either that or girl I spoke with wasn't fully aware, hopefully Experian get it sorted for me......

£50 coming by bank transfer, should be in a few days , as you say, is very generous for nothing!

Thanks again for your input