DMP Mutual Support Thread - Part 12

sourcrates

JohnnyRotten wrote: »

Does anyone have any experience with HSBC not offering a 30 day ‘breathing space’ period?

I cancelled my DDs and wrote to them to explain that I was in financial difficulty, taking advice from SC and asking for the 30 day period. I had a reply from the credit card section to say they had put a note on my file but today they have charged interest and a late fee. The loan and current account section replied to say they couldn’t freeze any charges or action until they heard from SC with a payment plan. I’ve never missed a payment previously.

BC & MBNA have both frozen charges and action with no problem. Is it worth writing to HSBC again?

Starting a DMP in November but saving an emergency fund first.

Breathing space just refers to no collection activity, nothing to do with interest or charges, they are still free to apply those.

You must write and ask for them to be stopped.

danibee2k

Hi, thought I’d post a quick update since my first post the other day. Have been working my way through this thread (there’s a lot of pages! Lol!).

Spoke to my wife about the budget and how we’d manage it and we’ve decided to go for a joint DMP. Both have new bank accounts set up and a joint account for the debts and bills to come from. We’ve got to CCA a couple of her old accounts and will be building our emergency fund over the next few months then will likely start with Stepchange. I’m tempted to self-manage but we have a lot of creditors between us and with my wife being self-employed I think it’ll be easier to have one payment coming out that deals with it all, at least until we can get rid of a few!

Just wanted to say thank you to all those giving advice. We already feel a lot better and that we can turn things around

tonyace123

Hi all,sorry to keep going on about Halifax but here's the question I've had two letters one saying my debt is going to there recovery team that was dated the 5 th of July and one about default in August,I am still waiting for the finale demand, how long does it take before its pass on to a collect firm thank you

[Deleted User]

Willing2Learn wrote: »

You should ask the creditor that hasn't defaulted you, to correctly mark your file as defaulted when you were 3-6 months in arrears (except for overdrafts). That way, they will be in full compliance with ICO guidelines, and all your debts will be removed from your credit file(s) at the same time.

Thanks, Willing2Learn:T

I have written to them several times and they did eventually default but only backdated it to early 2014 rather than around May 2013 like everyone else:mad:. They gave several reasons why and it's just futile to keep getting annoyed by it. I'll have a clean credit file by the summer of next year except for just that one creditor. That debt should have been settled by then anyway so will have a zero balance. I don't suppose my credit file will look too bad as a result of it and as I'm not planning to apply for any sort of credit for any purpose whatsoever I should get a grip and stop fretting about it.

System

This might seem like a stupid question...especially as we have been on our DMP for 3 1/2 years now. But I know defaults drop off after 6 years, so potentially making your credit history look better. We would really like to move house and down size but have another 6 or 7 years to go on mortgage, so at the moment we know we wouldn't get a very good rate if we tried for a new mortgage. If we wait till our defaults have dropped off...about 3 years, would that be better? Or are we still basically stuffed until we finish our mortgage...which obviously is not part of our DMP, we have never ever missed a payment with that. Not sure if lenders will still know about our debts, once the defaults have dropped off?

January2015

ploppy57 wrote: »

This might seem like a stupid question...especially as we have been on our DMP for 3 1/2 years now. But I know defaults drop off after 6 years, so potentially making your credit history look better. We would really like to move house and down size but have another 6 or 7 years to go on mortgage, so at the moment we know we wouldn't get a very good rate if we tried for a new mortgage. If we wait till our defaults have dropped off...about 3 years, would that be better? Or are we still basically stuffed until we finish our mortgage...which obviously is not part of our DMP, we have never ever missed a payment with that. Not sure if lenders will still know about our debts, once the defaults have dropped off?

Hi Ploppy :wave:

Once defaults disappear from credit reference files, they are gone for good. There is no further record of the account, account history, or any defaults - except with the original creditor and/or DCA. No other creditor would ever know you had a debt, DMP, or defaults, etc.

At the point your credit reference file clears of these historical debts, in reality only you will know you ever had a DMP.

Therefore if you organise a mortgage with a lender who you have no previous credit history with they will never be any the wiser that you had poor credit history / DMP.

The caveat to all this is that application forms usually ask the direct question about finance history, e.g. "have you ever had a CCJ or had to arrange payments with creditors?" .......at this point it's your conscience as to how you answer. Some would jump in and say to put no would be to entering into a fraudulent agreement. Me.... I would put no in the 'honest' belief the question was asking me if I had ever had a CCJ or arrangement to pay with my mortgage creditors

Ok - before anyone jumps on me.... I already know I am never going to make it heaven anyway :rotfl:

Suseka97

danibee2k wrote: »

Hi, thought I’d post a quick update since my first post the other day. Have been working my way through this thread (there’s a lot of pages! Lol!).....
I’m tempted to self-manage but we have a lot of creditors between us and with my wife being self-employed I think it’ll be easier to have one payment coming out that deals with it all, at least until we can get rid of a few!
Just wanted to say thank you to all those giving advice. We already feel a lot better and that we can turn things around

Good for you, sounds like you've really grasped the nettle and I wish you luck on your DMP journey

tonyace123 wrote: »

Hi all,sorry to keep going on about Halifax but here's the question I've had two letters one saying my debt is going to there recovery team that was dated the 5 th of July and one about default in August,I am still waiting for the finale demand, how long does it take before its pass on to a collect firm thank you

Halifax promised to default me within 6 months of setting up the DMP and didn't -and I had to chase that default down, then chase again (years later) to get it backdated. You just have to keep onto them.

ploppy57 wrote: »

This might seem like a stupid question...especially as we have been on our DMP for 3 1/2 years now. But I know defaults drop off after 6 years, so potentially making your credit history look better. We would really like to move house and down size but have another 6 or 7 years to go on mortgage.......... Not sure if lenders will still know about our debts, once the defaults have dropped off?

I'm with Jan15 on this one. Once those Ds have dropped off your file, then go to the market. Seeing as you plan to downsize and presumably will be in a good position with regards to your equity, then hopefully you'll be in an equally good position in terms of mortgage rates on offer. I too would not tick the 'yes' box regarding previous debts -as far as I'm concerned I will have honoured all secured debts and any DMP arrangements will not have impacted on my ability to pay the mortgage - so in my book that question is irrelevant to my being able to pay / honour any future mortgage payments.

System

January2015 wrote: »

Hi Ploppy :wave:

Once defaults disappear from credit reference files, they are gone for good. There is no further record of the account, account history, or any defaults - except with the original creditor and/or DCA. No other creditor would ever know you had a debt, DMP, or defaults, etc.

At the point your credit reference file clears of these historical debts, in reality only you will know you ever had a DMP.

Therefore if you organise a mortgage with a lender who you have no previous credit history with they will never be any the wiser that you had poor credit history / DMP.

The caveat to all this is that application forms usually ask the direct question about finance history, e.g. "have you ever had a CCJ or had to arrange payments with creditors?" .......at this point it's your conscience as to how you answer. Some would jump in and say to put no would be to entering into a fraudulent agreement. Me.... I would put no in the 'honest' belief the question was asking me if I had ever had a CCJ or arrangement to pay with my mortgage creditors

Ok - before anyone jumps on me.... I already know I am never going to make it heaven anyway :rotfl:

Thanks for that Jan, so at least no one will know we are still paying the DMP, as long as we go with a lender we have no history with. So that means we would have to change providers then as we have Lloyds mortgage and also have debts from cc'd with Lloyds. Obviously the mortgage doesn't form part of the DMP but we will still be paying the DMP in 3 years. . unless we get some good F&F's before then. So maybe if we want to get some F&F's sorted before then, the Lloyds ones would be the ones to get out of the way first.
I agree with your sentiments actually, I would also believe that it means I have never had a CCJ etc with regard to my mortgage provider....:) We have actually never ever missed a mortgage payment in the 21 years we have had the mortgage.

System

Suseka97 wrote: »

I'm with Jan15 on this one. Once those Ds have dropped off your file, then go to the market. Seeing as you plan to downsize and presumably will be in a good position with regards to your equity, then hopefully you'll be in an equally good position in terms of mortgage rates on offer. I too would not tick the 'yes' box regarding previous debts -as far as I'm concerned I will have honoured all secured debts and any DMP arrangements will not have impacted on my ability to pay the mortgage - so in my book that question is irrelevant to my being able to pay / honour any future mortgage payments.

Thanks. Yes, our DMP has never stopped us paying the mortgage.

Willing2Learn

I don't agree that the question is irrelevant. You are signing a legal documents and all answers given as part of the application should be truthful. Stating an untruth has the potential to come back and bite you...hard...