DMP mutual support thread part 13 !!

sourcrates

Halfwaythere wrote: »

she said if I default now this will impact my credit file for 6 years whereas if I pay it in full in two years as I am it will completely drop off my file at that point and not have any further negative impact. She read some things out to me but I am not very good at all this. Is she correct can anyone help please I am soooo confused ?!

Thanks :(

Ok, basically if you repay this debt in two years, the whole entry will move to the closed accounts section of your file, then drop off entirly on the 6 year anniversary, defaulting it now will be of no benefit, it only benefits people at the start of a long DMP as defaults will drop off files earlier than AP markers, which stay on there 6 years after the debt is repaid.


I would say carry on as you are, as your arrangement is only for a short time.

Changingtimes

Another question. I am currently with Stepchange. I entered into a pretty short DMP (18 months) In Jan 18. In Aug /Sept I took a payment break due to an emergency and recommended payment in October. A couple of creditors have been paid and dropped off. I am seriously considering running the rest as Self managed. I wanted to start this in Jan 20. I have a small EF £300. What would creditors views be on me switching to SM and starring this in Jan? Would this be risky? To advise I have been paying £1000 a month from my salary and being able to do this due to family members helping me in other respects so I can pay the £1000. If I email creditors telling them SM from Jan and payments will commence then would that be acceptable? Any advice welcomed.

NeverendingDMP

I had a gap when i went from stepchange to self managed. I cancelled stepchange wrote to everyone to say im self managing and i will continue to pay x amount. on x day. I had a gap of about 6 weeks so i could miss paying for one month of my pay. No one minded and i had in effect a month off and time to set up direct debits etc

Halfwaythere

Forgive me if I am not getting it. So do you mean once it moves to a closed account and is paid in full it no longer as an effect on my credit rating ? Thanks

Norfolk_Jim

Halfwaythere wrote: »

Forgive me if I am not getting it. So do you mean once it moves to a closed account and is paid in full it no longer as an effect on my credit rating ? Thanks

Whatever you do it will stay on your credit record for at least 6 years so yes it will have an effect on your credit rating for at least that long

[Deleted User]

We began a DMP around 12 years ago with the embarrassing level of debt of £62k on loans and credit cards. We had 3 young children, our situation was overwhelming and it felt like we would never see the end of it. Having worked hard over those years we now have our last payment due on 1/12/19 - a situation we thought we would never be in! We've learned alot and the one thing I would like to share is however bad your situation is it's never hopeless. There are some brilliant sources of support and assistance out there and the main thing is to tap into those rather than 'burying your head in the sand' and hoping it will go away. We are so glad we did and we can now think about getting on with the rest of our life and never being in that situation again!
Wishing everyone all the best on their debt free journey.

thejoyofdebt

Hi,



I'm not sure if I'm in the right place but looking for some advice if possible.


I started my DMP with Stepchange 9 years ago and now owe around 3K. I've taken the step of going self managed, hoping to negotiate some decent settlements with the two remaining creditors.


About 4 years ago I noticed that one of my creditors, Capquest (originally Marbles) had not applied a default and that my credit file was marked as being in a payment arrangement. I contacted them and requested that they apply the default retrospectively and they said they would look into it.



In October 2017 the account was transferred to NCO although the legal owner of the debt was still Capquest.



At the begining of this year (my 9th year of being in a DMP) I phoned Capquest to make an offer of a partial settlement as long as they agreed to apply the default retrospectively, the advisor said I would hear back by the 1st of March but they did not reply.


I have since sent a CCA request to NCO, they replied saying that they have sent the request to Capquest (the legal owner) and that my account would be placed on hold. I had wrongly assumed that they would not take any further payments whilst my account was on hold but as I didn't inform StepChange, stepchange still continued to pay the account. When I realised this I suspended any further payments.


In May, Capquest sent me a settlement offer of 50% reduction in my balance and an offer to mark my credit file as partially settled, but still no CCA. I did not reply.


To date I have still not received the CCA. I have sent no further payments and Capquest continue to send monthly statements showing my outstanding balance (no interest added).


Today I checked my credit score and the only blemish I have (as after 9 years the other creditors are not visible) is this Capquest debt! My file is mostly beig updated by them as being in a payment arrangement, interspersed with missed payment markers!


My question is, can they do this after 9 years and if not, what do I do to sort this out?


Many thanks

Dalasc

Hi
Looking for advice to help my elderly mum with her DMP. She is 79 years old. The debts are from many years ago when struggling to keep a business afloat. Firstly the DMP and debts are solely in my mum’s name but the plan also takes into account my dad’s pensions, is this correct? My mum only receives a reduced married woman’s pension, no private pension but on review of the plan the company are suggesting a monthly contribution of £306. I’ve started a LPA for my mum as she is suffering from bad health and we should have the results of the MRI that the memory clinic organised soon. She files the paperwork from the DMP company and forgets to act on it. Would a mental health evidence & consent form completed by a doctor have any impact on the plan as the debt was created when she had no health problems?
Many thanks

deebs83

Hi everyone.
I'm new to the world of DMPs and I would like some advice on my current plan. I've recently been through the StepChange website and they have suggested a monthly payment plan of £300, which would make my financial life much more bearable! From reading through some of the other stories on this forum I kind of think I know how to proceed, but would like some confirmation to ease my worries.
1. I believe I should stop paying my current payments and put them instead towards an emergency fund. Should I do this for 3 or 6 months?
2. Before I start the emergency fund, should I be writing to all my creditors to tell them I won't be paying for 3/6 months? Or just not pay? Ask them to default me? Ask them to freeze interest/fees?
3. Should I delay sending the paperwork to StepChange during until the 3/6 months is up? If so, will they be ok with this?
4. Say in the unlikely event I came into a bit of money, could I pay this into my DMP to lower the amount owing and number of months remaining? Similarly, if I find myself able to pay a little more each month, can I do this?
5. When I have sent the paperwork to StepChange and the DMP is in place, will StepChange notify the creditors or will I have to do the communication?

I think this is all for now. I apologise if I may have missed some of these questions being answered already. I would just like some confirmation to settle my worries on this.

Many thanks in advance

Suseka97

thejoyofdebt wrote: »

.................... About 4 years ago I noticed that one of my creditors, Capquest (originally Marbles) had not applied a default and that my credit file was marked as being in a payment arrangement. I contacted them and requested that they apply the default retrospectively and they said they would look into it. In October 2017 the account was transferred to NCO although the legal owner of the debt was still Capquest.

Today I checked my credit score and the only blemish I have (as after 9 years the other creditors are not visible) is this Capquest debt! My file is mostly beig updated by them as being in a payment arrangement, interspersed with missed payment markers!

My question is, can they do this after 9 years and if not, what do I do to sort this out

Unfortunately the answer is yes. Creditors or their agents are not legally bound to apply a default to your account. Something many of us can attest to and it does cause a lot of anguish at times. The end result when AP/AR markers are applied means that the debt remains on your file for 6 years from the date the account is finally settled - so as you are experiencing will have an impact on your credit file for far longer than if it were defaulted.

The only thing you can do is to write a formal letter of complaint to Capquest, if they are still the legal owners of the debt. I had a default backdated by Halifax, some 12 months or so after it had been settled (and was still showing on my credit file). It will take a bit of persistence and certainly in the meantime don't make any more payments until they comply with your CCA request. Of course there is no guarantee they will backdate - but it's worth trying.