Defaults on DMP

Younganddumb

Hi,

I have been on a DMP with StepChange for coming on two years now - I have just reviewed my credit report and have noticed that some of the creditors defaulted me upon changing to DMP but also that two of my creditors have been and are continuing to default me every month despite me paying my DMP on time every month.
Should this have happened?

Thank you

System

You are defaulting on the original agreement so the defaults are being correctly applied. Being with Stepchange on a DMP doesn't mean you're not going to get negatives on your credit file. Lenders are under no legal obligation to deal with or agree to anything Stepchange proposes however most do as it saves grief all round but ultimately the only thing that they have to adhere to is the original contract you signed.

If you read Stepchange's website it states that

Payment history - DMP payments will usually be less than the normal payment on a debt, so your credit history will show that partial payments are being made towards the debts. This will happen even if a creditor is happy to accept your reduced offer of payment.

Defaults - If your creditor defaults your account they will add details of the default to your credit history. This will stay there for six years from the date it was entered. You may not receive a default for every debt on a DMP but it is very common for this to happen.


You can also still have your creditors apply for a CCJ.

Younganddumb

Okay, thank you!
Just wanted to check as some only issued one whereas these two continued.
Thanks again

System

I feel I need to clarify my original post. What it will be is that the original default was issued and the creditor is sending monthly updates to show that the account is still in default and not marked as satisfied rather than it being a completely fresh one so it is probably those you are seeing on your report. Others may be in a better place to confirm but I think that only you can see those similar to the way only you can see soft searches.

sourcrates

You only get defaulted once for each debt/account.

That default is then updated every month to show its current status, 6 years from the original default date, it will fall off your file, paid or not.