DMP mutual support thread part 13 !!

bluebell_on_track

sourcrates said:

bluebell_on_track said:

Good morning, just after a bit of help understanding how/ when things drop off credit rating. I finally have all accounts defaulted (except PayPal). The defaulted accounts have been sold to third parties. On my credit file, the payments to the third parties are showing up as a D. So for instance, where it used to say HSBC credit card it now says ‘name of debt agency’ and D’s next to each month. Is this correct? Many thanks for your help. AP x

"D" is for default, yes, the old entry should show the original default date, and a zero balance, the new entry should also show the original default date, and the outstanding balance.

Will stay that way for 6 years regardless of anything else that happens.

Thank you sourcrates 
I have found out today that my PayPal account has been ‘charged off’ in their words so I’m guessing this is defaulted which means it’s my last one. I so wish I’d have read all this before making token payments for the last 2 years. Thanks again 

debtfreeme2021

Evening all 

I finally bit the bullet and cancelled my DD for my only AP with one of my credit cards , now the calls and letters have started it’s sent me into a bit of a wobble , will now follow the same process and await default . I still have two other defaults that I’m patiently awaiting Very and MBN* but these seem to be dragging out some time anyone had experience with these companies? I have one further question my account defaulted with Halifax in Feb, no further correspondence received since then . I’ve gone back and checked their last letter which states the debt has been passed to their internal recoveries team, feels weird after ignoring the letters but now feel the need to write to them? Should I make an offer based on my E&I or just wait for further communication? Thanks 

Ex_welsh_borrower

MMPhi123 said:

Ex_welsh_borrower said:

MMPhi123 said:

Ex_welsh_borrower said:

MMPhi123 said:

Ex_welsh_borrower said:

natlie said:

Hi,

I’m 2 years into DMP now and I had a from MBN* this week who had transferred my account to Westcott saying they’d made a mistake last year when they defaulted me as I had continued to make payments and that as a gesture of goodwill they have deleted the default and cleared my £4100 balance. Anyone heard of this before, I can’t believe it!!!!
thanks
Nat

The same thing happened to me in March, a 2.5k debt originally with Lloyds was sold to the PRA group then out of the blue I had a letter saying the same and they wrote it off. It's confused me as all my debts I have made payments on just not the contractual amount hence the defaults. Are all my defaults valid or is there grounds to challenge them?

StepChange told me that they had heard of a number of clients getting the same letters recently too.

Sorry to jump on this, but am I understanding that they cannot default you if you have continued to make payments? I was defaulted as soon as I moved my payments to PayPlanPlus, despite never missing a payment (I didn’t know at the time that you have to stop paying and wait for defaults). BarclayCard immediately defaulted me, am I understanding that they can’t/shouldn’t have done that and I can challenge this? Interestingly I’ve now gone self-managed and have been this way for a few months now - Im still waiting on BCard to tell me how to pay them, as they closed my online account, so I can’t pay, or even see the balance outstanding. They’ve defaulted according to my credit file, but haven’t sold the debt on.

This is really what I want to know, as I know I made payments to all my debts just whatever the amount SC had determined based on my SOA. I also never stopped payments and was defaulted by Next, Lloyds, Barclaycard and Tesco. HSBC have recently also said they intend to do so which I've made a complaint about because of the length of time involved.

All the four defaulted accounts I continued to make payments on but my understanding was that they are entitled to default the account should you not be making the contractual payments. My payments were under these amounts I know that so I was just confused as to why Lloyds have said they shouldn't have defaulted the account......certainly not going to argue with them but maybe I'm missing something

I've just written to BarclayCard as on further inspection it appears they defaulted me as soon as I entered an agreement with PayPlan. Prior to this I had not missed the minimum payment, which I understand I need to have done for at least 3 months before a default can be issued. They also issued their "notice of closure" letter which was dated one day after the date of the default on my credit report, then two months later I received a letter to confirm the actual closure. Even at this stage I wasn't 3 months behind on full payments...Will see what they come back with! 

That's interesting as Im certain Tesco defaulted me straight away too as I remember it being very quick as I entered the DMP with SC.

So I got a reply back from BarclayCard, alas no debt written off any any such good things like that like other people, but they are removing the default as they said I Maintained payments while on my plan with PayPlan, which I guess is a good thing for my future credit rating? They’ve said they will remove the default, and the account will return to contractual terms, and I’m not really sure what that means, so I’m going to write back and find out. I just want to pay off the debt and get it cleared. I look forward to my debt-free future with as little impact on the credit report as possible, so that we can one day get a mortgage. 

I know some people have gone down the route of having some debt written off due to mental health/disability issues, but I’m not sure if I’d be able to do it, as I’ve been making payments so far to them all and am now in an informal self managed DMP. Autism and ADHD was how I got into the debt in the first place, but equally I feel I need to own this mistake and repay what I owe? 

I suppose it depends if they default you later on assuming your payments are lower than the contractual amount? HSBC have only just decided to look at defaulting my CC as they said the arrears had reached a limit that meant they would default the account. I did complain given it's been over a year and it seems they are now going to consolidate a CC and loan I have with them into an interest free debt repayment loan for pretty much the same payment per month as I'm making now but it would avoid the default...I'm told

Keep going though it does get easier, this is my first blip in the process since I started really

nbamaster

Hello again,

I'm working on my DMP form with StepChange. I need to update it with all my debts ofc. And I'm not sure who should be listed as creditor.

Is it the original bank I borrowed money from?
If debt had been sold to someone else (I.e Link Financial) should I list them instead?
And what if i.e  debt is still with Tesco Bank, but Moorcroft is acting as a collection agent?


Thank you

sourcrates

nbamaster said:

Hello again,

I'm working on my DMP form with StepChange. I need to update it with all my debts ofc. And I'm not sure who should be listed as creditor.

Is it the original bank I borrowed money from?
If debt had been sold to someone else (I.e Link Financial) should I list them instead?
And what if i.e  debt is still with Tesco Bank, but Moorcroft is acting as a collection agent?


Thank you

If an account has been sold, list the new owner.
If an account is still with original creditor, then say so.
If a collector is acting on behalf of a client, list the client and also the collector.

sourcrates

debtfreeme2021 said:

Evening all 

I finally bit the bullet and cancelled my DD for my only AP with one of my credit cards , now the calls and letters have started it’s sent me into a bit of a wobble , will now follow the same process and await default . I still have two other defaults that I’m patiently awaiting Very and MBN* but these seem to be dragging out some time anyone had experience with these companies? I have one further question my account defaulted with Halifax in Feb, no further correspondence received since then . I’ve gone back and checked their last letter which states the debt has been passed to their internal recoveries team, feels weird after ignoring the letters but now feel the need to write to them? Should I make an offer based on my E&I or just wait for further communication? Thanks 

Letters and calls are standard collection activity, they follow a well rehearsed procedure.

Halifax collections may just be sitting on the account for now, they don`t always chase straight away, and its likely they are lining it up to sell on, so I wouldn`t bother doing anything for now, wait until your debts are either defaulted or sold, or both.

Collection activity can take a long while, as I have said on here many times.

Debtbegone2022

Hi All

I have received my first default from my Tesco credit card and this is showing on my credit file.

Today I received a letter from Moorcroft advising they are acting as the collecting agents and will be dealing with the account.

Please can I check it is now at this point I can log on to Moorcroft’s website using my reference number and set up a repayment plan? At this point in time I will only be paying £1 a month to each creditor once they default as I am still trying to build up a sufficient EF and deal with the increase in the cost of living.

Thank you

sourcrates

Debtbegone2022 said:

Hi All

I have received my first default from my Tesco credit card and this is showing on my credit file.

Today I received a letter from Moorcroft advising they are acting as the collecting agents and will be dealing with the account.

Please can I check it is now at this point I can log on to Moorcroft’s website using my reference number and set up a repayment plan? At this point in time I will only be paying £1 a month to each creditor once they default as I am still trying to build up a sufficient EF and deal with the increase in the cost of living.

Thank you

Yep, your all good to go.

This is a text book example of how it should be, Unfortunatly not all creditors play fair with you.

Lady4806

sourcrates said:

Debtbegone2022 said:

Hi All

I have received my first default from my Tesco credit card and this is showing on my credit file.

Today I received a letter from Moorcroft advising they are acting as the collecting agents and will be dealing with the account.

Please can I check it is now at this point I can log on to Moorcroft’s website using my reference number and set up a repayment plan? At this point in time I will only be paying £1 a month to each creditor once they default as I am still trying to build up a sufficient EF and deal with the increase in the cost of living.

Thank you

Yep, your all good to go.

This is a text book example of how it should be, Unfortunatly not all creditors play fair with you.

I have a question related to this point in time to what has been asked above. Maybe i got the wrong end of stick, so apologies in advance, but I thought that the best time to arrange payments for DMP are when the debts are with the debt purchasing company and not the debt collectors? 

sourcrates

Lady4806 said:

sourcrates said:

Debtbegone2022 said:

Hi All

I have received my first default from my Tesco credit card and this is showing on my credit file.

Today I received a letter from Moorcroft advising they are acting as the collecting agents and will be dealing with the account.

Please can I check it is now at this point I can log on to Moorcroft’s website using my reference number and set up a repayment plan? At this point in time I will only be paying £1 a month to each creditor once they default as I am still trying to build up a sufficient EF and deal with the increase in the cost of living.

Thank you

Yep, your all good to go.

This is a text book example of how it should be, Unfortunatly not all creditors play fair with you.

I have a question related to this point in time to what has been asked above. Maybe i got the wrong end of stick, so apologies in advance, but I thought that the best time to arrange payments for DMP are when the debts are with the debt purchasing company and not the debt collectors? 

The account has defaulted so it makes no difference really who owns it, it won`t accrue any more interest or charges, so they may as well get the ball rolling.