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DMP didn't make payments.

My husband and I got together 5 years ago. He was on a debt management plan after his ex screwed him financially over their split. In 2015 his DMP company wrote and said they were no longer in business and tried to palm him off to another company. He got me a copy of his credit file and there was a default from 2014 in which payments should have been covered by the plan. He received no correspondence to say this wasn't being paid as all paperwork was sent directly to the company. I took him off DMP completely and contacted all his creditors on his behalf and made sure all payments were up to date before paying off the debts in full after we married. He hasn't had any missed payments at all (apart from this one company) since 2012 (when we got together). We applied for a mortgage but it was rejected and they advised us it was likely to be the 2014 default causing the issue. We have a notice of correction on his file explaining it but is there a way of disputing it or having it removed duento the fact we were only made aware of it once we had a copy of the credit report.
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Comments

  • StopIt
    StopIt Posts: 1,470 Forumite
    If he was on a DMP, then the payments would have been lower than contracted, putting the accounts in either AR Arrangement to Pay, or Default anyway.


    There would have been no need to enter a DMP if contracted payments were made. So while the DMP company would have been sending payment to the creditor involved, they still have the right to default the account for not meeting the contracted payments.


    Check all 3 credit files, and see what other debts were included in the DMP. All can be accessed for free.


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    There may be other defaults (Although they drop off after 6 years post default).


    A NOC really will not help here and as it may well be erroneous may just cause more harm than good. It'll mean any credit application will be referred, and given the circumstances here, may not even actually convince any lender that the default is invalid.


    The only way to get it removed is by going to the creditor in question and asking them. However, if the case was that the DMP company was paying them and they issued the default because the payments were not sufficient to avoid it, there's nothing you can do.

    In debt and looking for help? Look here for the MSE Debt Help Guide.
    Also, If you need any free and impartial debt advice, the National Debtline, Stepchange, and the CAB can help.
  • Ruxxi
    Ruxxi Posts: 5 Forumite
    Thanks. They acknowledged payments as being received from 2012 through to 2014 and suddenly started recording missed payments. I have accessed the other credit reports and there is just the one company that has defaulted. Itnis showing as now settled as I paid everything for him October 2016. Should I get him to remove the NOC? It was the mortgsge advisor that recommended having it recorded.
  • [Deleted User]
    [Deleted User] Posts: 35,242 Forumite
    Part of the Furniture 10,000 Posts Photogenic Name Dropper
    Definitely remove the NoC.

    They tend to be a big red flag that say 'this person has made a mess of their finances'.
  • Carrot007
    Carrot007 Posts: 4,534 Forumite
    Part of the Furniture 1,000 Posts Name Dropper
    A defualt is right and correct on a DMP since you are breaking the terms of the agreement.

    The NOC will only do more damage than good so remove it.

    However the default should have accured within 6 months of the start of the DMP in order to be reasonable so you can argue with them to change the date if that applies (if it moves back further than 6 years it will also drop off).

    Also you should be able to get a mortgage with a DMP over 3 years ago if you use a suitable advisor, but don't expect great rates (5% ish on a two year fix).
  • Thrugelmir
    Thrugelmir Posts: 89,546 Forumite
    Part of the Furniture 10,000 Posts Name Dropper Photogenic
    Expect to find a largish deposit given the recent settlement of the DMP.
  • Ruxxi
    Ruxxi Posts: 5 Forumite
    Deposit isn't an issue. We have a around 22k saved up for a deposit. My credit rating is good (only issue on mine is that I show as only moving into my home when I got married so its showing only been in my home a year even though I moved in 2001) I've contacted the council, electoral role and Equifax/Experian and best i mamaged is a letter from the council confirming their records. If it wasn't for that I believe my rating would be excellent.
  • [Deleted User]
    [Deleted User] Posts: 35,242 Forumite
    Part of the Furniture 10,000 Posts Photogenic Name Dropper
    Ruxxi wrote: »
    If it wasn't for that I believe my rating would be excellent.

    Are you saying that on the basis of the content of your credit files, or the made up credit scores?
  • Carrot007
    Carrot007 Posts: 4,534 Forumite
    Part of the Furniture 1,000 Posts Name Dropper
    Thrugelmir wrote: »
    Expect to find a largish deposit given the recent settlement of the DMP.

    10% will do it. I had AP's up to around Jan and got a mortgage in July after finishing my DMP.
  • cjmillsnun
    cjmillsnun Posts: 615 Forumite
    Talk to a specialist adverse credit mortgage broker. They will find you a mortgage lender who can help.
    2.88 kWp System, SE Facing, 30 Degree Pitch, 12 x 240W Conergy Panels, Samil Solar River Inverter, Havant, Hampshire. Installed July 2012, acquired by me on purchase of house in August 2017
  • Ruxxi
    Ruxxi Posts: 5 Forumite
    Carrot007
    I've never had a missed payment, no ccj, no cifas or defaults. Evertthing is completely uo to date and my score was excellent up until the screw up with the electoral roll. I'm have a couple of credit cards that are used but paid off monthly. My rating at present is 'Good' and my electoral role box is yellow whereas all the others are green
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