ADVICE PLEASE: Settling a DMP early... why is it so complicated?!

Talia947

Please help! I have been searching for advice for weeks and keep getting conflicting information.

I have been on a DMP for 8 years with Pay Plan. I have 4 years to go with around £14k of debt left to pay off. A majority of the accounts were registered as defaulted 8 years ago so have now dropped off my credit reference file (CRF).

3 accounts (Lowells, PRA and Idem) never registered as defaulted so remain on my CRF showing either DM or 6.

A relative has kindly offered to off the full £14k of debt. However we have been advised not to do this and to partially settle as it would make no difference to the credit file either way. Is this true? Will the account be marked as partially satisfied even if we pay off all the debt?

Lowells website says 'If the account hasn't defaulted yet, and you clear your debt in full, the status of the account will show as settled.' Does this mean they would mark my account as settled as they haven't registered it as defaulted?

Also, I have read that creditors will not accept a final payment without registering a default. What does this mean for the remaining 3 accounts? Are the likely to issue a default before allowing us to settle to debt?

I don't want them to issue a default now that will remain on the CRF for the next 6 years as we would like to have a better chance of obtaining a mortgage within the next 4 years.

We've also requested CCAs for all accounts and they are all enforceable.

Any advice greatly appreciated on this! Very confused and tearing my hair out.

fatbelly

Just concentrate on settling your debts at the best possible rates. The National Debtline letter is useful

https://www.nationaldebtline.org/EW/sampleletters/Pages/Full-and-final-settlement-offers-%28sole-name%29.aspx

Any mark on your credit file will be partially settled'

Lowell are debt buyers. In order for the debt to be sold to them in the first place  it must have been defaulted or terminated or closed, terminology depending on what sort of debt this is. Lowell, if they take over the recording of your file, must retain the original default (etc) date.

Talia947

fatbelly said:

Lowell are debt buyers. In order for the debt to be sold to them in the first place  it must have been defaulted or terminated or closed, terminology depending on what sort of debt this is. Lowell, if they take over the recording of your file, must retain the original default (etc) date.

Thank you for replying, that's really helpful. You say that in order for Lowell to have the debt it must be defaulted... so I'm wondering if you could help me with another question? 

I've been advised to go back to the original creditors of the 3 not registered as defaulted and ask them to add a backdated default date as these would then drop off my Credit Reference File.

My question is, do I have anything to lose?

I don't want to ask them to do this if I could end up with a default dated from now which remains for 6 years. Can the original creditor add any default date they like or can they only add dates from before they sold on the debt?

I hope that makes sense and I'm not talking nonsense.

Thanks again. 

Halfwaythere

So to jump on the thread but my two MBNA debts were sold to PRA group and not defaulted, they also refuse to default. Apparently the debt was sold on and not defaulted as this did not go with Lloyd’s banks procedures or something random along those lines 🙄

Talia947

Halfwaythere said:

So to jump on the thread but my two MBNA debts were sold to PRA group and not defaulted, they also refuse to default. Apparently the debt was sold on and not defaulted as this did not go with Lloyd’s banks procedures or something random along those lines 🙄

That's interesting... who refused to add a default? PRA Group or Lloyds?

Halfwaythere

MBNA who must be part of Lloyd’s who sold my debt to PRA group very confusing and annoying as now have those AP markers 

Talia947

Halfwaythere said:

MBNA who must be part of Lloyd’s who sold my debt to PRA group very confusing and annoying as now have those AP markers 

I see... I have an MBNA sold to PRA Group that remains on file too. I won't hold out much help to get that one backdated then! 
Thanks so much for your response.

Halfwaythere

Yes lots of phone calls and letters following all advice but didn’t have any look unfortunately, didn’t with virgin either which I found out to be part of MBNA so that’ll be why 

sourcrates

Debts can be sold at any time, there is no requirement for an account to be defaulted first.
Usually they are, but not always.

Talia947

sourcrates said:

Debts can be sold at any time, there is no requirement for an account to be defaulted first.
Usually they are, but not always.

Thank you for replying. How can I check if the accounts still showing ever did default? 

If they have defaulted, is it worth getting a backdated default added? 

sourcrates

Should show in your credit file, but only for 6 years.
A SAR (Subject access request) will get you all the information they hold on you.