Next Directory to default or not?

Skoots1710

Hi all

Recently with all your help on these forums I've managed to pay off 5 credit cards, 2 in full and 3 of them 50% !!!!!! so I am now currently debt free and plan to keep it that way! :j - I also managed to get my defaults backdated to 2014 when they should have been at the start of my DMP.

Anyway, I have one more to tackle and I'm not sure the best way to go about it. My Next directory never defaulted me and looking at my credit file the history is a complete mess. I was on a DMP with them from January 2014 although they haven't shown that on my credit file until October 2016, before that they updated it as AR (Arrangement to pay) - One minute my credit file is showing as being on a DMP then its showing up to date then its showing overdue - I just dont get it. Basically it should just show as the DMP every month, I never missed any payments on my DMP.

I paid the account off in full in January 2017 and started to use it again for small amounts and paying it off in full every month hoping this would improve my credit score. Not sure if it would or not.

So my question is this......Would I be better to :-

1) Ask Next to add a default to my account to back to the start of 2014 the same as my credit cards and not have the option to use the account anymore. That way it will drop off my file at the same time as my other defaults. Otherwise I believe everything will show on there for 6 years from 2017 when I settled the account.

2) Keep using it but ask them to take the overdue markers away and change them to AR as they should be.

Im not sure which option would be the best for my credit rating going forward?

Many thanks
Skoots

anna_1977

I don't think they will backdate a default - they will say that you had an arrangement (Shop Direct have done the same with me).

Can you explain how it shows as a DMP on your file, what are the markers? Also, if paid off it should now be showing as up to date

Skoots1710

Hi

Yes it shows as AR (Arrangment to pay) from the start then 2 years in it changes to DM (Debt management programme) - this is on Noddle

On experian it shows as U (unknown) and then changes to something else, I cant remember what now.

I thought that they would backdate the default the same as the credit card companies did?

It does now show as up to date and has 6 months clear payments on it and ridiculously they increased the credit limit from about 500 to 3,500 as soon as it was paid off! No wonder people get in debt so easily.

Skoots1710

Anyone got any help or advice on this?

sourcrates

Skoots1710 wrote: »

Anyone got any help or advice on this?

Hi,

As a DMP is an unregulated private arrangement, nothing regarding it will appear on your credit file, sometimes a creditor will default you, especially if your payment is substantially lower than the minimum contracted payment, or they may mark your account AP, and that is what shows on your file.

It appears you had an arrangement to pay, so the account was reported on your file correctly, also you used the account again, so it would be impossible to add a default as that can only be done when the relationship between you breaks down, and clearly that never happened.

AP markers are not the end of the world, and the further back in time they are, the less effect they will have on you, you would be best advised to let sleeping dogs lie, and allow time to do its job.

Skoots1710

sourcrates wrote: »

Hi,

As a DMP is an unregulated private arrangement, nothing regarding it will appear on your credit file, sometimes a creditor will default you, especially if your payment is substantially lower than the minimum contracted payment, or they may mark your account AP, and that is what shows on your file.

Ok thats cool thanks I guess now that im using it again and paying it off each month can only help going forward.

What about the part where they have changed it from AP to DM which states debt management programme, this only showed for two months then it showed that I was overdue which I wasn't as i never missed a payment through step change at all. Should I ask them to change that to AP?

Many thanks

Skoots1710

Can anyone help with this?

sourcrates

Skoots1710 wrote: »

Can anyone help with this?

It makes little difference what it was marked as, anything but green is going to affect your credit file in some way.


Clearly you were in trouble, your file was marked accordingly, hopefully that is all in the past now, time to move on.


The further back in time negative info is, the less effect it will have on you, there is no point going through your file, picking out every little fault you would like changing, its not going to happen, most lenders only review your last 6 months to a year of credit history, although this does vary, when making lending decisions.