Court Entry for Satisfied DPP (DAS) - What Will Lenders Think?

risko

Hi all,

I've been on a bit of a debt recovery journey, having completed a Debt Arrangement Scheme (the Scottish flavour of DPP) in February 2019, and am now on my way to saving a deposit and applying for my first mortgage. My DAS kicked off in 2014, so I now just have a couple of defaults to drop off and my credit report will be all clear as far as old accounts are concerned, but I've just noticed an entry in my Equifax report which concerns me.

In March 2016 I took a six month payment break from the DAS as I'd been made redundant, but it appears this has now reared it's ugly head as a court entry dated March 2016 for the value of £0, with the description of "Debt Arrangement Scheme". What concerns me is that this creates a red flag for lenders that says "Hey! This guy was on a DAS!" even though all the accounts in question were satisfied and have been removed, and because of the entry date it's likely to stay there for another two years. For information, the entry is only showing on my Equifax report and not on Experian or Transunion.

My question is, will this be a problem for many lenders? And if so, is there anything that can be done? I have already emailed the Accountant in Bankruptcy who is responsible for the DAS registry and am awaiting a reply, but I'm not confident in getting it removed.

Thanks in advance!

Minnie82

Hi, that sounds a bit odd, we had  DAS and took a payment holiday at the beginning too but the only ref that showed on credit file (again just one, can't remember which but definitely didn't show on transunion, I have a feeling it was clearscore so equifax) was that we had a DAS which started in 2013, no mention of the holiday which was 2014. This all fell off 6 years after the date they had noted as the start date.  Hope they get it sorted for you!

IndyScot2020

Hi Risko,
Sorry to hear about your credit report difficulties.  I'm in much the same boat - my DAS started in 2015 and I exited it May 2019.  And like you I find only Equifax report the DAS, unlike Experian and Transunion.
Unfortunately, some mortgage lenders wrongly consider a DAS to be the same an IVA.  Trying not pull my hair out dealing with a  lender who insists they are the same - despite the fact 1. A DAS is NOT an insolvency 2. IVA's do not exist in Scotland.
To rectify it, I have raised two disputes with Equifax.   The first was summer 2019 - where they accepted my argument and then removed the DAS from my file.  Then completely unexpectedly in January 2020 this year they added back on!  So I'm now trying to dispute it.
At least two mortgage lenders have told me they will not lend to me unless this DAS (or IVA as they call it!) is removed from my file.  Each lender is different though, and I did find another lender who was happy with the DAS on my file - but ultimately decided not to lend...just my luck due to the Covid19 situation 
Raise a dispuate with Equifax - showing them evidence you do not have an IVA (eg by sending them a screenshot of nil return results from the Insolvency and DAS registers).  Persevere!
Please let us know how you get on.  My dispute was only raised yesterday.  May have an update for you next month.
Good luck and prosperity to you in 2020
IS2020
PS - this is one of the reasons I regret ever going on a DAS - I know some people like them and have their benefits, but my biggest gripe is that I was not told at the beginning some (but not all) lenders view a DAS the same as an IVA.

chanz4

You may also still need to declare to a lender anyways, as some ask on mortgage application have you ever... 

Thrugelmir

How ever you try to dress the situation up. Unfortunately it did happen. If asked the question then you will need to declare the full facts. Attempting to suppress the data held on the CRA's may give you satisfaction but not aid your cause. Lenders will have their own internal lending criteria. There are mortgage lenders for every segment of the market. Use a broker to guide you through the options rather than apply to lenders directly on ad-hoc basis. 

yass58

What happens when your mortgage is up for review in June,regarding taking the 3 month mortgage holiday,as it fall into that time.

Thrugelmir

Holidays taken during this period are not being marked negatively on CRA's. 

risko

Thanks for the replies all!
I received a reply from the Accountant in Bankruptcy who told me that the DAS scheme is not a court process, and as the "court entry" date is not the actual start date of my DAS I have put in a case with Equifax to have it removed. That was six weeks ago and they've still not responded, but hoping for a resolution soon.
As far as my own applications go, I've got no intention of hiding anything but just don't want to be unfairly penalised even when applying to lenders who just consider recent history - those who ask "Have you... in the last six years" rather than the "Have you ever" lenders.
Thanks for sharing your Experience, IndyScot2020! I have mixed feelings about having done it. In a way I feel it may have been better to go bankrupt! But too late for that now - I'm just glad to be seeing the back of most of the defaults and look forward to finally becoming a homeowner!

Thrugelmir

risko said:

As far as my own applications go, I've got no intention of hiding anything but just don't want to be unfairly penalised even when applying to lenders who just consider recent history - those who ask "Have you... in the last six years" rather than the "Have you ever" lenders.

All lenders will base a decision on 6 years of actual history. That's the whole purpose of the data CRA's hold. Would be worthless if individuals edited their own files. The lenders own criteria will determine which factors are considered important in relation to the application made. 

risko

Thrugelmir said:

risko said:

As far as my own applications go, I've got no intention of hiding anything but just don't want to be unfairly penalised even when applying to lenders who just consider recent history - those who ask "Have you... in the last six years" rather than the "Have you ever" lenders.

All lenders will base a decision on 6 years of actual history. That's the whole purpose of the data CRA's hold. Would be worthless if individuals edited their own files. The lenders own criteria will determine which factors are considered important in relation to the application made. 

I understand that, but the DAS is not a court process so the information provided by Equifax is wrong. I'm not just "editing" my own file, I'm contesting something that's factually incorrect.