Settled account with balance but debt paid in full

dfw1001

I started a DMP 6 years ago which I have just completed with a lump sum full payment.

I'm now trying to repair my credit score to get a mortgage (eventually) and wanted to check if this is a significant issue.

My largest debt appears to have been marked as settled back in 2012 but has a very large balance associated with it still - does this essentially count as a debt where the money looks like it wasn't repaid? In this case it was paid back in full, but the account hasn't been updated since 2012. Should I write to get this changed, or is this not that big of an issue?

Thanks!

glentoran99

What does it say for current balance?

Anthorn

dfw1001 wrote: »

I started a DMP 6 years ago which I have just completed with a lump sum full payment.

I'm now trying to repair my credit score to get a mortgage (eventually) and wanted to check if this is a significant issue.

My largest debt appears to have been marked as settled back in 2012 but has a very large balance associated with it still - does this essentially count as a debt where the money looks like it wasn't repaid? In this case it was paid back in full, but the account hasn't been updated since 2012. Should I write to get this changed, or is this not that big of an issue?

Thanks!

Inquire first with the CRA and then dispute it with the CRA if necessary and if you have proof. When an account is settled the balance should be zero but when it is settled for less than the full balance owed that will be shown and has a negative impact. The history of the account also remains.

glentoran99

Anthorn wrote: »

Inquire first with the CRA and then dispute it with the CRA if necessary and if you have proof. When an account is settled the balance should be zero but when it is settled for less than the full balance owed that will be shown and has a negative impact. The history of the account also remains.

but it will still say balance zero, and the negative effect is negligible

dfw1001

Thanks for the responses.

Balance shows as £8k and account status 'closed'. I think that was probably what it was when I defaulted, or maybe after a few DMP payments. Seems like I need to dispute that then as this debt has been paid in full.

This is with Nationwide - should I go direct to them or to the CRA?

Thrugelmir

dfw1001 wrote: »

Seems like I need to dispute that then as this debt has been paid in full.

You defaulted on the debt. As only part repaid it. Was the interest frozen as part of the DMP?

dfw1001

Interest was frozen but debt has now been paid in full.

None of the other accounts I have with this lender (I have three) show up this way, all now show a zero balance.