DMP mutual support thread part 13 !!

StMatthias

deano1506 said:

StMatthias said:

Suseka97 said:

StMatthias said:

Suseka97 said:

StMatthias said:

sourcrates said:

Matt,

You will have defaults, and/or arrangement to pay markers on your credit file, an unfortunate effect of debt management that cannot be helped, you should be able to re-mortgage with the same lender, as credit checks are not performed on existing customers usually, if you went to another lender, you would most likely need the services of a good mortgage broker.

Hi Sourcates,

In fact I am not interested in remortgaging at all. I just mentioned that mortgage as further info for someone to answer. Like I said, I am looking to remove my name from it and the associated property so that it is solely in my ex-wife's name.

In terms of credit file, is there a rough idea of just how bad it hits? It is more so for my curiosity rather than in the case of a mortgage or anything else (not intending to be buying a house or getting any new credit cards for a long time).

Thanks,

Matt

Your current credit rating status will start to nose-dive as each AP/AR marker is applied - they'll come first and will probably stay that way for a good 3 - 6 months, depending on the lenders approach to debtors.  What you need to do is keep a check, regardless of the fact that Payplan are managing your DMP and push for defaults if they haven't appeared once you reach the 3-month point.  
To clarify the reason... AP/ARs remain on your credit file for 6 years on from whenever you eventually settle the account (or partially settle). So if, in the worse case scenario, yours never defaulted and your DMP ran for 3 years and your accounts cleared at that 3-year anniversary date then your file would be negatively impacted until 2029.  If, however, those accounts are defaulted this year then your credit file will be cleared of defaults in 2026 and your credit file status will start to improve again.

Thanks for that. Apologies but what are AP/ARs? And what do you mean push for defaults? 
Thanks,
Matt

Sorry I sometimes forget that not everyone knows what some of the acronyms mean.  Anyway, AP and AR markers simply mean that you are on an 'arrangement to pay' - which is effectively what it is (a DMP that is). But those markers impact on your credit file for far longer than a default would.  So when I said 'push for defaults' I meant that in a few months time you should contact your creditors and ask them to default your account.  Now, some will anyway and others need a bit of a push, sometimes a BIG push.  Some creditors refuse to default accounts, but if a debt gets sold onto a debt collection agency (DCA) they tend to be defaulted at that stage.  Also I should add that when a default is applied to a debt, it also means that all interest and charges stop - which is another reason to get them.

Ah! Thank you! That's actually super useful to know. Will definitely push for defaults then.
Thanks,

Matt

Hi Matt, from my personal experience - I had to complain to Creation and Barclaycard as they did not add a default and were marking my file as AP / AR  - eventually after a bit of a battle (ombudsmen with Creation) they added defaults back to near the start of my DMP. I also had to complain to Halifax, Tesco and Nationwide as they added defaults but over a year after the start of my DMP. Eventually I got defaults dates changed mostly to 2013 / 14 - my last default dropped off my credit files in March - I still owe about £5k but i have an Experian score of 999. :-)

Thank you. That's really useful to know as well.
I have just signed all the DMP stuff today and they have confirmed the amount with my creditors (totalling £13.5k and a few pence). Should I contact my creditors now to push for the default or wait until first payment is made (June)?

Thanks,

Matt 

fullofcold

Finally my husband is debt free (well bad debt free - we still have a mortgage).  It can be done so don't feel overwhelmed - you will get there (has taken us 16 years)

needtodothis2020

Hi everyone,
I have not posted for a while now but my DMP is up and running and so far no problems.
I have been sent Default notices from most if not all of my creditors no but one question i wanted to ask is that i received a letter this morning from Moorcroft Debt Recovery saying thanks for the £5 payment but that as they are now responsible for y account i need to contact them within 7 days with an offer of repayment.
Do i phone them and explain that i am on a DMP with Stepchange and therefore they are dealing with my payments or do i just ignore them?
Thanks in advance for any replies

bunny73

Hello, I can’t seem to find the answer to my question in any straightforward way, and feel a bit naive about financial matters. If anyone can help with the following I would really appreciate it.
I am in a DMP since 2013 and have kept up with all payments. My MSE Credit Club account says everything is green apart from missed payments. I have never missed payments, pre DMP or during, so I take it this means defaults, which I think means I failed to make agreed payments from original credit agreement because I am in the DMP? If so, should this still be on my record? And is there anything I can do to get them removed?

Willing2Learn

needtodothis2020 said:

...my DMP is up and running and so far no problems.
I have been sent Default notices from most if not all of my creditors no but one question i wanted to ask is that i received a letter this morning from Moorcroft Debt Recovery saying thanks for the £5 payment but that as they are now responsible for y account i need to contact them within 7 days with an offer of repayment.
Do i phone them and explain that i am on a DMP with Stepchange and therefore they are dealing with my payments or do i just ignore them?

I assume the account is included in your DMP?  If so, then let StepChange know you received the letter.  Then you can let them deal with it.

bunny73 said:

I am in a DMP since 2013 and have kept up with all payments. My MSE Credit Club account says everything is green apart from missed payments. I have never missed payments, pre DMP or during, so I take it this means defaults, which I think means I failed to make agreed payments from original credit agreement because I am in the DMP? If so, should this still be on my record? And is there anything I can do to get them removed?

When you enter into a DMP, you are in effect, breaking the terms of your contractual obligations.  A default means that your financial relationship with your creditor is irreconcibly broken down.  A default is generally regarded as good news, as the toxic data is automatically removed from your three credit files automatically after six years from the dfault date.

deano1506

bunny73 said:

Hello, I can’t seem to find the answer to my question in any straightforward way, and feel a bit naive about financial matters. If anyone can help with the following I would really appreciate it.
I am in a DMP since 2013 and have kept up with all payments. My MSE Credit Club account says everything is green apart from missed payments. I have never missed payments, pre DMP or during, so I take it this means defaults, which I think means I failed to make agreed payments from original credit agreement because I am in the DMP? If so, should this still be on my record? And is there anything I can do to get them removed?

a good start would be to check the default dates of those on your credit files. as its April 2020 i guess they either did nt default you or they added then late. Either way there is a solution. 

needtodothis2020

Thanks Willing2Learn for your reply.
Yes the account is included with my DMP.
Thanks for the advice i will contact stepchange tomorrow.
Kind Regards

DebtHurricane

Sounds like the accounts weren’t defaulted. Email a complaint to each of the creditors directly and ask them to backdate the default to within 3-6 months of the account being behind on contractual payments. Refer to the ICO guidelines and explain you’d be treated unfairly and penalised by not having the account defaulted. 

chris1970s

Hi, i'm new here. I just wanted to ask if anyone had experience of making settlement offers with Cabot or Hoist Finance. I have £3.5k and £14k respectively both through payplan (it was over double that 14 years ago when this all started). I have 8 years left but would love to make an offer this year. My relationship has been fairly drama free due to Payplan's involvement however having a DMP hanging over you takes a small toll. But i also read recently about creditors needing to present CCAs if requested and that under certain circumstances, if they cannot produce the CCA, they might be in a much weaker position (and therefore i could make a much reduced offer which they might accept). So my question mainly is: what % settlement have people typically gotten with these 2 particular lenders ? All i'm hearing so far from Payplan is the vanilla answer: depends on circumstances blah blah - not particularly helpful. Has anyone made an offer substantially lower and had it accepted? Thanks.

Willing2Learn

Hi @chris1970s and welcome to the forum 

Yes.  I have previously settled my DMP debts.
I definitely recommend you submit the CCA requests for any eligible account.  It may result in you not needing to pay another penny.  If your creditors are unable to provide you with a 'true copy' of your original agreement, then you have the option to withhold further payment or to negotiate a ridiculously low settlement offer.