Default Dates

john.clarke3033

Hi newbie here.. could really do with some advice...

So in July 2011 I embarked on a DMP with a company called Harrington Brooks. My creditors accepted this plan and the reduced payments.

In July 2012 I came into some money and paid off a huge chunk of the plan, via full and partial settlements. I had 2 creditors remaining that I worked with directly regarding outstanding payments.

During my intial research, along with when I finished the plan, I looked into when a default became associated with an account. My findings suggested this occured between 3-6 months. To me this signalled the defaults occurred at latest early 2012. These would stay on my account then for 6 years.

Fast forward to now. I have worked hard to clear my creditors etc. My wife and I are selling our home and looking for a new property, as it's been six years from when any defaults should be on my account. On the advice of our financial advisor I contacted Experian for a copy of my statutory credit file.

When I went through this I noticed 2 defaults, both of which were associated with the DMP. One was for Santander, the other MBNA. The date of expiration on the file for Santander was July this year. I queried this with them reasoning that the default should have occurred 3 - 6 months into the DMP. This would make the default date early 2012, and expiration complete. After much toing and frowing they agreed with me and are addressing the issue.

I contacted MBNA. I put the same reasoning above to them. They argue that because I was on a DMP I was given more grace for default period. They are saying the default comes from when the partial settlement (July 2012) was taken. They say I would have been in default if I had paid nothing instead the amount on the DMP. Surely I should have been in default well before July, as I wasn't paying full amount and had broken the agreement.

MBNA are the only creditor who have said this. Any help would be greatly appreciated as it's stressing me out

National_Debtline

Hi John and welcome to the forum


You will find some creditors choose to show an arrangement in place on your credit file when you have entered into a DMP, rather than a default. If MBNA won't change the date of the default you could try making a formal complaint. If this is not successful contact the Information Commissioner's Office (ICO) www.ico.org.uk and the Financial Ombudsman Service (FOS) www.fos.org.uk who will investigate.


If you can't get the date changed, the default and debt will drop off 6 years after the date the default was registered. I believe from what you've said that was July 2012, in which case you'll just have a few more months to wait.


I hope it all goes well.


Susie
@natdebtline

john.clarke3033

Hi Susie,


Thanks for getting back to me......


I am aware that the default drops off in a few months, but essentiallly I really don't have that time.


Our own house is pushing towards a sale agreed, and there are other properties we have come across that we really like - the only kicker is this default, as affordability is not a problem.


It just feels like I have been penalised for paying smaller payments, as opposed to paying nothing.


Is there any way of approaching a mortage lender, (even my current one), and explaining this to them.


Has anybody came across anything like this? Would it beneficial to approach the DMP company? They were taking the cash from me for their fee, so should have been aware of when default dates from creditors should occur....


Sorry for the rant I am just totally stressed out .......

[Deleted User]

Has your mortgage application been declined - or are you just concerned it will be? A 5 year and 8 month old default shouldn't cause any particular problems and a half decent broker should have this sorted out in a heartbeat.

Which lender are you going with?

john.clarke3033

Hi ZX

My FA tried a check with Halifax. Apparently there was an issue with my credit score. My FA asked me to get the Experian file and it was here where I saw the defaults.

FA feels these are the reason my DIP was rejected, and didn't want to run another check, in case it harmed my filenfur. That's why I've been so keen to get rid of them. I currently have a mortgage with Leeds. Would it better to approach them?

Thanks for all the advice guys...

National_Debtline

Hi John


Although it may not be a quick process, and I realise you have a sense of urgency with the house move, you can try complaining. If you don't get anywhere with MBNA contact the ICO and FOS.


I'm afraid I don't think you'll get anywhere contacting the DMP company as they have no control over what a creditor registers on your credit file.


In terms of explaining the situation to a prospective lender, you can add a notice of correction to your credit file. That's where you can add up to 200 words to explain something on your file, however some people feel this can do more harm than good. I'd certainly suggest you take advice from your mortgage broker, who should know the best way to approach prospective lenders. Good luck with it all.


Susie
@natdebtline

john.clarke3033

I did have a Notice of Correction previously on my file. My FA told me to ask for it to be removed. I'm just not sure how I can approach a lender, or how a broker would. As I mentioned before I am currently with Leeds and have never missed a payment etc. I have been with them 10 years. Does anyone think they would be my best option?

Thanks again....

danielthomas373

Ok so I’m in the same situation. We sold my apartment and sale agreed a house. Santander have declined mortgage application and this was due to default in my partners name from April 16th 2012. Therefore I assume it will drop off his file April 16th which is only a few weeks away. Really scared we will lose the house. The default was and credit credit card & he had been paying it monthly and it’s been settled yesterday since we checked credit file. We have a broker so she’s looking into it but I’m so scared!! Any advice or experience from this situation would really help me right now?

[Deleted User]

Yes. Assuming your broker is a decent one, trust them to place it correctly.

If they're one you found in your local estate agent, then change them for a decent one.