Creditors applying Default Notice on DMP

Carlos1882

Good Morning everyone.

For the last 8 years now I have been on a DMP, which was setup with CCCS (now Stepchange charity) after my marriage failed and I was left with around 15k of debt and more than my monthly outgoings could manage. Whilst I wasn't proud of doing this, I have to say Stepchange have been absolutely brilliant throughout the years and I don't know where I would have been without their continuous support. Every-time I have spoken to someone there, they have been so friendly and understanding.

My creditors have also been fairly co-operative throughout too, as I am slowly but surely repaying the debt owed.

However, it wasn't until the other day, when I was in my local Barclays bank that I made a discovery about my creditors... Long story short, I went in to pay some money into my account, I was asked if I was aware of Barclays 'Reward Scheme' which basically pays you a small monthly sum as a reward for customer loyalty. Anyway, I then discovered I was not eligible because of the type of account I had (which was a basic account, a term of the DMP). Despite me informing them of this, they were insistent they could improve my current account, based on the loyalty I have shown. Sure enough, the credit check came back, rejecting the claim... What surprised me was that according to the advisor, it was coming back as continuous missed payments, which I absolutely know is not true.

Whilst I was not surprised by this, it did make me curious as to what was causing this. So I trialed Noddle to investigate further... I have since discovered, despite maintaining regular payments that 3 out of 5 of my creditors have placed default notices on each monthly payment for at least the last 6 years, if not the entire time! It's no surprise my credit rating has not improved at all as a result.

First of all, are they within their right to do this, despite an agreed repayment plan which I have stuck to and have not missed one payment nor had any CCJ's etc in at least the last 8 years? It seems to me that if my other creditors can accept this, why can my others not? The bank adviser say's this is discrimination against me, but I'm not certain he's right there.

So, is there anything I can do about this, or am I faced with this until I pay off the entire debt from these creditors? I am concerned this would be damaging to my credit score in years to come. As the adviser said, even people that have declared bankruptancy have probably had a better record than people like me, who are simply trying to repay money because of an awful twist of fate in life...

Any help and advice would be greatly appreciated.

Many thanks

Kind regards

Carlos

heartbreak_star

It is normal for defaults and missed payments to be registered - on a DMP you are usually not paying the amount agreed to on your original contract unfortunately.

HBS x

ashp_2

When was the first default date? These defaults should drop off your credit report 6 years from the default date. Payed or not.

Westminster

Totally normal.

In fact, if a DMP is likely to be several years long, then defaults will actually limit the damage to your file as all history of those accounts is wiped from your credit files on the 6th anniversary of the default date. (It doesn't mean the debt itself is gone though and if you were to stop payment, creditors can apply for a CCJ)

However, for an account which does not default, the payment history (including missed payments / arrangement to pay) will remain on your file for 6 years from when the account is closed i.e. 6 years from after you finally pay off the debt.

So it is in your interest to ensure all your DMP accounts default, and to pursue the creditors to make sure the default date is within a few months of when the contractual payments ended i.e. from when the DMP started.

If you've been on it for 8 years, you should be able to get your credit files completely cleaned with a bit of work.

Some creditors (MBNA in my case) may refuse even after escalation to FOS.

Didn't stop them giving me a very large credit limit on a new card with a year of my account details with them being cleaned off my file on the 6th anniversary of partial settlement / account closure.

Carlos1882

It only goes back to Jan 2014 on the Noddle report, but I have been on the DMP since the 10th May 2010 to be precise, so not quite 8 years as I first thought.

So, what are my options? Should I contact my creditors personally or go through Stepchange?

Thanks for the responses so far people!

Westminster

I'm on an iPhone so can't type that easily.

Do it all directly in writing.

I think if you google CCA (something like Consumer Credit Action group) for some template letters

Carlos1882

Does it also make a difference when the original creditor passes on the debt to another one, i.e. I had a loan with Northern Rock and a Credit Card with Halifax, which are both now managed by Cabot International (Marlin) Ltd.

Does this effectively "reset" the term when it is passed on?

ashp_2

Carlos1882 wrote: »

Does it also make a difference when the original creditor passes on the debt to another one, i.e. I had a loan with Northern Rock and a Credit Card with Halifax, which are both now managed by Cabot International (Marlin) Ltd.

Does this effectively "reset" the term when it is passed on?

They will register a default 3-6 months from when you stopped making payments, This is the default date and that does not change even if it is passed on. Sometimes these dates are not correct so you should certainly follow this up.

sourcrates

You want defaults, you don't want AP markers, they will be on your file 6 years after you repay your debts.

In any situation where you are not paying the contracted payment, you will eventually be defaulted, no matter what private arrangement you may of agreed with your creditors.

I would let sleeping dogs lie if I were you, you could end up with your credit file affected for years to come.