Default from payday loans

*DramaQueen*

I entered into a DMP in January and 2 of my credit cards have been defaulted and i am currently arguing with AQUA about my third ( I had 6 marked late payments and it mysteriously went to 3 the following month, so have complained asking for it to be defaulted. As they have incorrectly reported it.)

I also have several payday loans which had a couple of late payments and are now marked as UC on my credit report and it says up to date. Should these be marked as a default as i have broken the credit agreement and do i have a case to argue that they are defaulted?

I'm just thinking that in 6 years when my defaults have dropped off the payday loans will still be showing in my credit report as i want to be in a position to get a mortgage in the future.

StopIt

Follow the same procedure as you did with the Credit Card companies.


If it was any other creditor I would have said that a few late payments but the rest up to date would actually be better than a default but as they'll be filed under Short Term lending it would have a negative effect on lenders like mortgages etc.


How long is the DMP for? If it's not a long time, 2 years say, it may not make much odds as PDLs that have been settled for 4 years wont really enter a mortgage brokers considerations once your other defaults have went from your file.


I don't mean to pry, but you stated you were debt free in April 2015, then stated you had to enter a DMP in November of 2016. What happened and how much debt is the DMP for?

National_Debtline

Hi *DramaQueen*

The Information Commissioner’s Office (ICO) guidance states “As a general guide, [a default may be recorded] when you are 3 months in arrears, and normally by the time you are 6 months in arrears.’’.

If you think this applies to any of your debts you can make a complaint to the creditor and ask them to update your credit file to show the correct information. If you can’t resolve the matter with them you can contact the ICO.

Once a default is registered the debt will drop off your credit file 6 years later. If there is no default registered the debt drops off 6 years after the last payment or the date the account was settled. It means it can be beneficial for a default to be registered (even though a default may be seen as damaging) because the debt will drop off sooner than if no default is registered.

Susie
@natdebtline