DMP full & final settlement

pandy19691

Myself and my husband have been in a dmp for almost 6 years and have just over £7000 left to pay. We’re now in a position where we could clear this in full but it would leave us with very little so I’m looking into offering settlement figures.

All of our accounts defaulted fairly early on and will drop off our records in the spring next year. I’m nervous about not paying in full and having partially settled markers on our account, I don’t want us to have to wait another 6 years for this all to disappear off our credit records!

Our dmp is with stepchange but when I rang them today they couldn’t give me a conclusive answer.

Also, two of our debts were with the post office. Cabot have taken over the debts as of last month. On checking our credit records today, both the post office accounts have been removed and there’s no sign of those two debts. Will they reappear under cabot but retain the original default date?

Thanks in advance and apologies for the long message!

[Deleted User]

The defaults fall off after 6 years regardless of the amount you settle for, so no need to be nervous.

JimboGooner1

pandy19691 said:

Myself and my husband have been in a dmp for almost 6 years and have just over £7000 left to pay. We’re now in a position where we could clear this in full but it would leave us with very little so I’m looking into offering settlement figures.

All of our accounts defaulted fairly early on and will drop off our records in the spring next year. I’m nervous about not paying in full and having partially settled markers on our account, I don’t want us to have to wait another 6 years for this all to disappear off our credit records!

Our dmp is with stepchange but when I rang them today they couldn’t give me a conclusive answer.

Also, two of our debts were with the post office. Cabot have taken over the debts as of last month. On checking our credit records today, both the post office accounts have been removed and there’s no sign of those two debts. Will they reappear under cabot but retain the original default date?

Thanks in advance and apologies for the long message!

Hi, I am in exact same situation to you. But reading some articles, some say that ‘partial settlement’ may affect credit score? I want to end my DMP as they say will take another few years, it has been almost 6 years, I want out, so also want to negotiate a settlement figure with each creditor, but what’s best? If I wait till the 6 years are up, can I cancel the DMP ? And assume creditors cannot go after me ? Shall I just settle individually? Not going through my DMP company as they will charge me to negotiate

D3xt3r5L4b

JimboGooner1 said:

pandy19691 said:

Myself and my husband have been in a dmp for almost 6 years and have just over £7000 left to pay. We’re now in a position where we could clear this in full but it would leave us with very little so I’m looking into offering settlement figures.

All of our accounts defaulted fairly early on and will drop off our records in the spring next year. I’m nervous about not paying in full and having partially settled markers on our account, I don’t want us to have to wait another 6 years for this all to disappear off our credit records!

Our dmp is with stepchange but when I rang them today they couldn’t give me a conclusive answer.

Also, two of our debts were with the post office. Cabot have taken over the debts as of last month. On checking our credit records today, both the post office accounts have been removed and there’s no sign of those two debts. Will they reappear under cabot but retain the original default date?

Thanks in advance and apologies for the long message!

Hi, I am in exact same situation to you. But reading some articles, some say that ‘partial settlement’ may affect credit score? I want to end my DMP as they say will take another few years, it has been almost 6 years, I want out, so also want to negotiate a settlement figure with each creditor, but what’s best? If I wait till the 6 years are up, can I cancel the DMP ? And assume creditors cannot go after me ? Shall I just settle individually? Not going through my DMP company as they will charge me to negotiate

After 6 years of accounts defaulting they will disappear off your credit files. But as you’ve been paying them it counts as acknowledging them, so they’re will still be enforceable 6 years from the date of last payment regardless of them
coming off your credit files. 

JimboGooner1

OK, so if i can negotiate a settlement with the debtors n=on my plan, shoudl still do it, even if they say it wil be marked as ‘’partial settlement’’

D3xt3r5L4b

JimboGooner1 said:

OK, so if i can negotiate a settlement with the debtors n=on my plan, shoudl still do it, even if they say it wil be marked as ‘’partial settlement’’

Yes. It would be marked as partially settled/satisfied. 

JimboGooner1

But wont be marked as bad credit ? That’s what i am worried about, as my rating is good now, as it shows i havent missed a payment for 6 years

D3xt3r5L4b

What rating? Lenders use their own methods
to “rate” you when you apply for their products and services. 

If you’re on a DMP how exactly are your accounts being marked?

Brock_and_Roll

JimboGooner1 said:

But wont be marked as bad credit ? That’s what i am worried about, as my rating is good now, as it shows i havent missed a payment for 6 years

Alas if you are on a DMP your credit is most certainly not "good" whatever any systems might say!

JimboGooner1

Ok, i look at clear score... which is good rating, no missed payments for over 6 years etc...

MattMattMattUK

JimboGooner1 said:

Ok, i look at clear score... which is good rating, no missed payments for over 6 years etc...

The scores and ratings are meaningless, bankrupts can have amazing/top scores, people who have never missed a payment can be in the red, they are a marketing gimmick, nothing more. 

The content in the file will show you are in a DMP, that is a big negative for lenders, however if/when it is repaid that goes some way towards improving their view of you has you have knuckled down over a period of time and met your obligations. No missed payments is pretty much their standard position to not see you as a problem borrower, they then look at other factors such as credit utilisation levels, how much debt you carry and for how long, even the types of borrowing you use, with things like payday lenders being a negative as far as mainstream lenders are concerned. 

The key factor though is that the lenders never see your score or rating, they only see the data and they use their own metrics to evaluate you and decide if they are willing to lent, that is why one lender can be happy to lend to someone on favourable terms, where as another will not touch them.