DAS, DPP and credit file confusion!

Ajw38

Hi!
I have recently taken myself out of my dpp with stepchange. Many reasons, but mainly because it is showing on my credit file with all companies under the insolvency tab. Now I know it’s not insolvency but as something flags up all the automated systems tell me it’s a ccj. None of the credit ref agencies can explain this or even care. But it’s stopped me changing banks, getting the cheaper car insurance to pay monthly and stopping me getting approved by rental agencies in Edinburgh.
I’m currently trying to contact my creditors to arrange payments myself, but my credit file now says Discharged undefined. Does anyone know what this means and what impact it will have in my credit and for how long?
I’m having to move house as my landlord is selling and am going into a temporary house share for 6-9 months while a friend works away. But by start of 2020 I need my file to be back in shape enough to get through a rental agency credit check.
I’ve been dealing with these debt problems for years and have never been refused a tenancy agreement before and have been told it is purely Because I show an insolvency.

I’m trying to save up, hoping to try to arrange reduced settlement figures on as much of my debt as I can and have got loqbox to try and improve my score.

Sorry this gone a bit rambly! :rotfl:

sourcrates

Hi,


A DPP/DAS in scotland, is quite similar to a debt mangement plan in the rest of the UK, except you also get legal protection from your creditors in scotland.


Now there is no pre-defined time a DPP can run for, everyone has different circumstances, each individual case is decided on how much debt you have verses how much disposable income you have, I think you may have "jumped ship" a little early, the arrangement will show on your credit file for a full 6 years regardless of what you now do.

It may have been better to stick with it till the end, the further back in time negative information is, the less effect it will have on you.

Ajw38

Hi

Thanks.
I came away from it for various reasons
- I set it up when I was grieving for my mum and didn’t notice the fees attached
- lack of flexibility compared to when I was on a dmp when I lived in England
-due to a broken down car, job change and now being told I have to leave my flat as the landlord is selling (and not having any money for deposit, first months rent and not being able to get approved for anywhere) I haven’t made payment for two months. It would have been revoked anyway
- I’m trying to use any overtime etc to request settlement amounts from some of my much smaller creditors and I can’t do that or overpay on the DPP
- then all the issues with the credit file. Which I know is more of an Experian/equifax issue but it’s still caused absolute chaos that I wasn’t warned about.

The guy at stepchange agreed that they aren’t always the best option for everyone, so I’m looking at a DMP with them going forward.

I’ve been dealing with clearing these debts for quite some time, so I’ve had defaults on my file for years, so it’s really frustrating that it’s now on my file and can’t be removed.I've raised it with the credit agencies and they just repeat back that’s it’s not an Insolvency but can’t /won’t explain or investigate why it shows up there!

I’m hoping that if it does mean discharged then in terms of rental agencies I will be able to explain that it’s not applicable now. My defaults are all a year ago or more.

My credit score is horrifically low but hoping it will improve enough so that I can get into a flat when my friend comes back from working away in jan.

MovingForwards

I've a CCJ and know how difficult it was phoning round loads of agencies, having phones slammed down the minute I mentioned it, people asking if it's paid off and saying I needed a guarantor (I'm in my 40's !!!!!! who would I ask!?).

Anyhow, the LA I'm with were fine about it when I moved up and was living in one of their flats for several months, were happy to put my name on the tenancy after I had been living in it for a while/paying rent etc. I explained the circumstances behind the CCJ, how it was being paid off etc.

LL was selling the property towards the end of the tenancy and due to the above (first para) I kept looking and asking about the properties on their books, in the end they contacted me to say about the flat I'm now in, viewed it, asked about referencing and they said they wouldn't but just carry all the paperwork from old flat to new flat (I submitted proof of all my accounts and savings).

You might want to do another flat share after this one finishes, unless you earn a lot of money as it's 30 or 35x the monthly rent payment you need to be earning.

You could always save up 6 months rent and offer to pay that up front, don't know how receptive LAs and LLs are to that.

Ajw38

It’s just so competitive up here and expensive! We have a whole load of mid market rentals which come available throughout the year, I can technically afford what I am paying now, it’s just tight so ideally I need somewhere cheaper.
My plan is to save up the £1400 I would need for deposit and first months rent and a bit of a buffer, then at least I’m going to agencies with that to hand.
In England I never had to pay deposit and first months rent until the day you get the keys and the rents were cheaper so could just get by. In Edinburgh you usual have to pay that the day you apply (which is nerve wracking if you aren’t sure you will pass the credit check!). And even with two months notice I can’t get that together while paying all my other rent and bills.
I’m really trying to avoid another flatshare. I have a fair bit of stuff that’s going into storage and am also nearly 40, I’ve lived some for nearly ten years now and I’m not sure I could cope with sharing full time with someone :rotfl:
My current agency weren’t bothered when I failed he credit check, once I explained what the DPP was, but she is a really little agency and doesn’t have anything else coming up or in my price range.
It’s frustrating, if I wasn’t in such a financial mess and could have things like a mortgage, I could have got this place for c 130K.
To be honest; I also really want to sort all this out. I’m annoyed that I’m still lurching from one financial crisis to another and I’m realising I don’t have anyone to rely on anymore can sometimes borrow a little off dad but he hasn’t got much himself. So I’m looking at my credit file, trying to clear as much as fast as I can, boosting my income if I can while trying to still have a life!

misspuddleduck

Hi Ajw38
I was in a DAS and found it to be very flexible. The DAS Administrators are very good at looking at changes in circumstances and when I completed my DAS my file was clear and my credit file was good. The legal protection the DAS gives you is second to none.

Not sure why you have walked away from it, people in the rest of the country are hoping to get a similar system implemented as it's so good.

sourcrates

misspuddleduck wrote: »

Hi Ajw38
I was in a DAS and found it to be very flexible. The DAS Administrators are very good at looking at changes in circumstances and when I completed my DAS my file was clear and my credit file was good. The legal protection the DAS gives you is second to none.

Not sure why you have walked away from it, people in the rest of the country are hoping to get a similar system implemented as it's so good.

The government has now committed to introducing a 'Breathing Space' scheme, alongside new 'statutory debt repayment plans', to help people repaying their debts.
No set date as yet.

MovingForwards

I know what you mean about the prices up here! I was priced out of my last area and had to move to a residential area just to try and match the same rent as the old flat.

Oddly enough I'm also with a small LA, much nicer to do business with

You just have to keep looking and something will pop up, try open rent and gumtree (if you are careful).

Sounds like you are after the same kinda price I was it hurt sending the department and month's rent to them after viewing where I am now!

Ajw38

Hi
Yeah I know it is useful for some
People, and I’m sure the extra protection from creditors is great. But I never really had problems with them hounding me anyway.
I came out of it because it is flagging as an IVA on my account meaning I can’t get a tenancy agreement so am effectively homeless in two weeks.
I also was told I couldn’t over pay and couldn’t pay off extras to anyone during the plan. I could increase my months payment but only if I was able to pay that every month. So I was wanting to use overtime to clear my debt faster and was told I couldn’t. I was also originally told that my pay would be day rate meaning some money that I would have 20 days pay others 26. They weren’t able to be flexible about that.
I also couldn’t make payment for two months as my job changed. I took a huge oaycut and my car broke down. As a result it was going to be revoked. Given the problems I have had I didn’t see the point in continuing!
I can pay things off occasionally myself by reduced settlement. Which is what I’m planning to do when I get overtime. Which means I won’t be paying it off for 11 years.
My total debt is only £9k and I know I can clear it quicker if I can be flexible.

So I know it really does help some people, but I guess everyone has different circumstances and no one plan can be the right fit for every single person.

Minnie82

That's really strange and a real shame they wouldn't let you be flexible. I can make overpayments to our DAS at any point and have also had to have a payment holiday and had loads of support. Such a shame it doesnt work the same for all! Good luck though. Weve 4 payments left to make and we're done. Cant wait. Its helped us pay back 40k of debt.

coolcait

Ajw38 wrote: »

Hi

Thanks.
I came away from it for various reasons
- I set it up when I was grieving for my mum and didn’t notice the fees attached
- lack of flexibility compared to when I was on a dmp when I lived in England
-due to a broken down car, job change and now being told I have to leave my flat as the landlord is selling (and not having any money for deposit, first months rent and not being able to get approved for anywhere) I haven’t made payment for two months. It would have been revoked anyway
- I’m trying to use any overtime etc to request settlement amounts from some of my much smaller creditors and I can’t do that or overpay on the DPP
- then all the issues with the credit file. Which I know is more of an Experian/equifax issue but it’s still caused absolute chaos that I wasn’t warned about.

The guy at stepchange agreed that they aren’t always the best option for everyone, so I’m looking at a DMP with them going forward.

I’ve been dealing with clearing these debts for quite some time, so I’ve had defaults on my file for years, so it’s really frustrating that it’s now on my file and can’t be removed.I've raised it with the credit agencies and they just repeat back that’s it’s not an Insolvency but can’t /won’t explain or investigate why it shows up there!

I’m hoping that if it does mean discharged then in terms of rental agencies I will be able to explain that it’s not applicable now. My defaults are all a year ago or more.

My credit score is horrifically low but hoping it will improve enough so that I can get into a flat when my friend comes back from working away in jan.

Ajw38 wrote: »

Hi
Yeah I know it is useful for some
People, and I’m sure the extra protection from creditors is great. But I never really had problems with them hounding me anyway.
I came out of it because it is flagging as an IVA on my account meaning I can’t get a tenancy agreement so am effectively homeless in two weeks.
I also was told I couldn’t over pay and couldn’t pay off extras to anyone during the plan. I could increase my months payment but only if I was able to pay that every month. So I was wanting to use overtime to clear my debt faster and was told I couldn’t. I was also originally told that my pay would be day rate meaning some money that I would have 20 days pay others 26. They weren’t able to be flexible about that.
I also couldn’t make payment for two months as my job changed. I took a huge oaycut and my car broke down. As a result it was going to be revoked. Given the problems I have had I didn’t see the point in continuing!
I can pay things off occasionally myself by reduced settlement. Which is what I’m planning to do when I get overtime. Which means I won’t be paying it off for 11 years.
My total debt is only £9k and I know I can clear it quicker if I can be flexible.

So I know it really does help some people, but I guess everyone has different circumstances and no one plan can be the right fit for every single person.

I've walked away from this reply several times because I was so close to breaking MSE T&Cs on language!

Who is giving you the advice I've bolded in your posts?

Most of it is nonsense.

Stepchange don't charge you fees for DAS. If Stepchange are your money adviser and your payment distributer then you're not paying any fees.

If your money adviser is in the private sector and Stepchange are only the payment distributer then you might have to pay the money adviser fees. But they should have told you about those fees before you signed up. And they should have told you that you can get DAS free - and where you can get the free DAS.

Your DAS might not have been revoked after two missed payments, especially if you wrote to the DAS Administrator to say why they'd been missed. Especially when you could possibly have had a payment break because of a change in employment. Especially when your money adviser should have told you that.

Of course you can make overpayments to your DAS! Whenever you want and whenever you can. You don't have to make the overpayments every month. But if you're making the same 'overpayment' month after month why not just make that your official payment?

You can make settlement offers to your creditors but there are all sorts of rules and requirements. Your money adviser should have been able to do it for you, or explain it to you.

I don't know what you mean in the bit about your pay being day rate and how that affected the DAS. Sorry .

As for the credit files if they say you're in insolvency that's quite clearly wrong! I'd put in a formal complaint if I were you :mad:

Maybe DAS wasn't the right thing for you - and good luck in finding the right thing for you .

But so much of what you are saying, what you have been told, is wrong.