Defaults Appearing After DMP set up

Kate1382

[FONT=&quot]Hello everyone, [/FONT]
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[FONT=&quot]I'm hoping I’m OK to post on here & you may be able to help me with some questions I seem to be getting conflicting advice on. [/FONT]
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[FONT=&quot]I started a DMP early 2016 and have been paying every month with no issues. Slowly but surely, I’m paying my creditors off and most I have found to be very helpful. However, I'm having issues with the Halifax, in particular my overdraft. At the worst it was £1350 and half way through my repayment they sold the debt on to Lowell which is understandable but then my credit files starts showing issues.[/FONT]
[FONT=&quot]First, they're showing AA for a month then BB and have been defaulting for the past 11 months, I have questioned the company managing the debt who say that because I have been paying the agreed amount each month this shouldn’t be any issues & to contact Lowell which I did. Lowell stated they don’t get involved in credit reports & to talk to the Halifax. When I spoke to (finally got through to the right person) the Halifax they said that the defaults would be amended to satisfied once the debt has been settled, which I happily accepted at the time. Now the debt has been cleared in full my last payment is showing satisfied but the defaults are still there, is this normal?[/FONT]
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[FONT=&quot]My questions are can you receive a default even when you make the agreed payment on a DMP?[/FONT]
[FONT=&quot]Is it Halifax that I need to chase?[/FONT]
[FONT=&quot]Do I have a case for going to the financial ombudsman?[/FONT]
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[FONT=&quot]I tried to do the sensible thing and try & get my debt under control & paid back but I feel like I’m being penalised for trying at the moment [/FONT]

sourcrates

Hi,


You were defaulted as you broke the original terms of your agreement, by going into debt management.

Completely standard practice.

Makes no difference if you made all the DMP payments or not.


The damage is already done, defaults stay on your file for 6 years regardless of weather they are paid or not.

Carrot007

And just to add.


THIS IS A GOOD THING.


Defaulting sooner will repair your credit faster (6 years) than either not defaulting and recording as in a plan for however long and then another 6 years after it is paid off.


It is hard to get your mind around that at first.

Willing2Learn

Hi,

You could politely ask Halifax if they could backdate the default to 2016. They don't have any duty to change the date of default, it would be a friendly request on your part...It's just that it is better for your credit file for the default to have an earlier date.

Suseka97

Just to add - defaults are good for the reason stated and I agree with Willing2Learn about contacting Hfx asking them to backdate the default to when your contractual payments ceased, or at least within 3 - 6 months of that.

I challenged Hfx on that back in 2016 and managed to get mine backdated. My DMP started in 2013 but they didn't default me until around 18 months later. I then paid off the balance via a DMP and they marked the file 'settled' or 'satisfied' (can't recall which). A few months later I decided to complain about the time it had taken to default me and after a few 'back and forths' they finally agreed. So worth a shot.

NATALIE73

The defaults would have always stayed just the account marked as satisfied or settled . @Suseka97 hoping I am successful like you were with halifax. I had AR markers since August 2012 but they only defaulted me 17/01/2014 when I started the DMP , I paid the DMP off in 2015 . Mbna had AP markers for 17months before defaulting me . Knowing what I know now , if I could go back in time I would have been ringing them and asking them to default me earlier . Tesco defaulted me after 1 month reduced payment in 2012 , so already off my file . The others defaulted not until 2013 /2014 or not at all , which is even worse as wont come off my account until 2021 . Which is really annoying !

TriggerHappy

Hiya,

Everyone beat me to it but...

This is completely standard and to be expected, a default is actually preferable because it'll be gone six years from when it was registered while a non-defaulted will remain on there until six years after the debt is satisfied (and that could be years after the start of the DMP and other defaults have gone).

It'll all work out, sadly the trashing of your credit file is the downside of a DMP but the release of stress, being able to sleep at night, being able to live a normal life etc, all more than make up for it!

Good luck!