Can a default be applied for a cc under a dmp but minimum payments were made.

surfamakikomi

Hi guys ,

My apologies if this is in the wrong section.

4 years ago I had some questionable financial advice and started on a dmp. At the time it seemed like a good solution as it allowed me to clear my debts (about 12k 7k on the cc) much quicker and it gave me motivation to clear the debts rather than just service them.

I have now cleared all the debts in full 😀 And feeling much better with my finances (except the defaults). I am now thinking whether or not the defaults on a cc and dtorecard are valid as throughout the dmp at least the minimum payments were made with a maximum of 1 missed payment when the plan was setup. Does anyone have any experience in this and do you think that I have a case for getting these removed from my credit file.

Many thanks

Lee

[Deleted User]

The default is accurate. It relates to the original agreement, not the DMP.

surfamakikomi

Sorry I should have added the prior to the dmp I had always paid at least the minimum payment. The default was issued a few months after starting the dmp.

[Deleted User]

Once you entered into the DMP, you defaulted on the original agreement.

Westminster

If:
A. You were making the original minimum contractual payments (from before the DMP)

AND

B. also the interest continued to be applied to those accounts then:

1. You didn't need the DMP
2. You shouldn't have defaulted.

If both A & B did not happen then the defaults are correct.

Your original post is lacking some detail but the clues from "allowed me to clear my debts (about 12k 7k on the cc) much quicker" imply that interest was suspended so the defaults are valid.

surfamakikomi

Thanks for your replies , yes the interest was frozen on the 7k cc so the default is valid.

Cheers for helping to clear it up.