DMP mutual support thread part 13 !!

sourcrates

See my post above.

Suseka97

cherokee said:

sourcrates said:

cherokee said:

Hello, can anyone tell me what "delinquent" exactly means on credit file (Next account).  They have been very slow to default and even now i am not sure that is what has happened. I've been paying an amount in my DMP for a few months now to them. Does delinquent mean the same as default please?

No, it just means that the contracted payment has not been made to the account for at least 30 days or more.
Its just another way to describe the accounts status, it does not mean its defaulted, only "default" means that.

thank you for that.  I can't get Next to default on the debt and I don't know how to do it.  They have sent an email from Brecon Debt Recovery, which seem to be a subsidiary of Next? Is there anything i can do to get them to default it? thank you

sourcrates said:

See my post above.

Also, have you considered stopping payment?  The issue seems to be that when entering into a DMP these days, some creditors just mark the account/s as 'arrangement to pay' - which in effect a DMP is.   What they don't consider is the impact on your credit file, in fact a lot probably believe its better not to default.  So its up to each individual to challenge that belief and complain, but do so in a constructive way.

I'm not saying this works in all circumstances, but people need to be proactive and determined.  Don't accept their first response if it doesn't resolve the issue, or the second/third/fourth for that matter.  Keep escalating your complaint higher up the chain of command.  You can also try the FOS, although they won't necessarily uphold the complaint.

The best advice though, is to push for the default before you start making payments.  This advice is only for people who will inevitably have to go into some form of debt management - not as a general rule of thumb with it comes to people who may just be falling behind a bit.

HappyDaysAreHereAgain

First post here. I’m two months into payments with DMP, so far it’s all ok. Quick question and probably a silly one but, can I use my remaining credit at all even though the DMP has started? Will it cause big problems for me with the creditor (who has acknowledged the DMP) or with SC? For instance, if I do a money transfer with the remaining credit on one card? I won’t do it if it’s not permitted, I’ve looked through info sent and it just advises against using credit but doesn’t stipulate not doing it. Is it a no-no? I’m thinking of using it for my EF. 

mrjoshua88

So whilst going through the motions of waiting for some of my accounts to default I’ve been doing some reading on the Stepchange site and it seems that as I’m in Scotland I’m eligible for a DPP which seems to be a more formal payment plan that comes with the benefit of creditors having to freeze interest once it starts. I’m assuming this would be a better choice than a DMP and would also negate having to wait for accounts to default before starting it?

natlie

HappyDaysAreHereAgain said:

First post here. I’m two months into payments with DMP, so far it’s all ok. Quick question and probably a silly one but, can I use my remaining credit at all even though the DMP has started? Will it cause big problems for me with the creditor (who has acknowledged the DMP) or with SC? For instance, if I do a money transfer with the remaining credit on one card? I won’t do it if it’s not permitted, I’ve looked through info sent and it just advises against using credit but doesn’t stipulate not doing it. Is it a no-no? I’m thinking of using it for my EF. 

Hi, 

I doubt you will be able to withdraw any cash form the card now and I don't think that it would be a good idea to attempt it as you have signed to say that you won't be incurring any further debt. Before you started your DMP you could have reduced payments and used that to build up an EF. You could reduce the payments to your DMP but this will mean it takes longer to pay the debt off

Nat 

HappyDaysAreHereAgain

natlie said:

HappyDaysAreHereAgain said:

First post here. I’m two months into payments with DMP, so far it’s all ok. Quick question and probably a silly one but, can I use my remaining credit at all even though the DMP has started? Will it cause big problems for me with the creditor (who has acknowledged the DMP) or with SC? For instance, if I do a money transfer with the remaining credit on one card? I won’t do it if it’s not permitted, I’ve looked through info sent and it just advises against using credit but doesn’t stipulate not doing it. Is it a no-no? I’m thinking of using it for my EF. 

Hi, 

I doubt you will be able to withdraw any cash form the card now and I don't think that it would be a good idea to attempt it as you have signed to say that you won't be incurring any further debt. Before you started your DMP you could have reduced payments and used that to build up an EF. You could reduce the payments to your DMP but this will mean it takes longer to pay the debt off

Nat 

Hi, thanks for the reply. I won’t touch it - I had a look through the SC agreement and also what Tesco sent me and basically, don’t touch anymore credit, which is fine. The remaining balance on the card isn’t even ‘mine’ anyway, it looks like the balance was ‘cleared’ after I sent a letter explaining the DMP so it’s not even remaining available credit I’ve realised so I think it would create a whole new heap of problems if I tried to do the money transfer!!

Good news though (in the great scheme of things), I’ve had two defaults (out of five) and referral to collections dept. Do I just inform SC of this? I have two new account numbers so I guess I just update the info.

Thanks again!

sourcrates

If you have entered debt management then all credit accounts in your name will automatically be closed, and you will just repay the outstanding balance, there will not be a line of credit for you to take.

These companies are not stupid, it would be counter productive to continue to allow a debtor to run up further debt, the withdrawal of credit facilities is part and parcel of any arrangement.

Countdown_has_begun

I have been in a DMP with Stepchange since 2017 and managed to pay back two thirds of my debt (originally £33k, now £11k). 
The majority of my creditors defaulted pretty much straight away (most in 2017/18), but Nationwide and Next only just registered defaults in March and June 2020. I'm feeling pretty low about this as it has been such a hard slog and my credit rating has taken a real bashing. 

I just wondered if anyone knows whether you can contact the creditors and ask them to change the default date? 
Feeling like I'll never get my credit rating back up 

Suseka97

Countdown_has_begun said:

.......The majority of my creditors defaulted pretty much straight away (most in 2017/18), but Nationwide and Next only just registered defaults in March and June 2020. I'm feeling pretty low about this as it has been such a hard slog and my credit rating has taken a real bashing. I just wondered if anyone knows whether you can contact the creditors and ask them to change the default date? Feeling like I'll never get my credit rating back up 

There's nothing to stop you raising a formal complaint about this, just be polite and set out why you feel they have not treated you fairly in their decision to hold off defaulting the account for what looks like over 2 years.  Don't just send it in to their customer services dept. send it to their complaints dept and mark it clearly and in bold that you are making an official complaint.

As for your credit file - firstly, ratings are just for your benefit and used for marketing purposes.  When it comes to lending decisions it is your credit history that matters.  Now of course a registered default will have an impact on possible future lending decisions, but it can depend on the age of the default and whether the account is settled or not.  Its usually only if people are looking to get a mortgage or remortgage that it can be an issue, but with that said there are brokers who can help match people with adverse credit histories with lenders who will offer mortgages albeit at less favourable interest rates.  Otherwise a poor credit score means little in the grand scheme of things. 

DMP_Lurker

Hi

Where is the best place to get CCA documents checked please?

I am repaying a debt to PRA Group and have been for around 18 months. I sent a CCA request fairly soon after they took over the debt and they sent me some documents within a few months and have said it's enforceable. I have made full and final settlement offers to them, but they don't seem to be interested, even though the debt will take about 14 years to pay off at this rate.

It feels like they offer some people discounts and not others. I have even asked them to give me a figure if the offer isn't acceptable, but they keep on saying that no settlement is available.

TIA