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tayajade

runforlife said:

tayajade said:

 Did you make a settlement offer first or request CCA first? 

We were trying to settle everything so that when the last one drops off our credit file later this year we could apply for a mortgage to buy a house again (currently renting). 

If the debt is unenforceable and I stop paying it, would it cause any issue for us getting a mortgage as it still ‘exists’? Would we still have to declare it as an existing debt to a potential lender? 

I made settlement offers before requesting the CCAs which in fact I've only just done. 
We too are renting. We have just had a mortgage in principle offer and in the process of the formal application. We used a mortgage broker who is excellent. Happy to give you her details via PM in the future. 
There are lenders who will loan to those with a DMP. In our case all defaults have gone from the credit report but my token payments show on the bank statements so they'll know the debt exists. This hasn't been a problem and I've not even had to tell anyone what the outstanding amount is, but if you can clear those payment entries in the months before you start applying for a mortgage then that certainly won't be an issue. Of course applying for a mortgage to a previous creditor is unlikely to be successful, so we told our mortgage advisor where our original debts were from. 

Wow thank you for sharing that information, that’s really good to hear and really encouraging. Perhaps if I get these default dates changed we could look for a Mortgage sooner. 

I hope that you don’t mind me asking, with regards to mortgages, have they come back with higher interest rates or were you able to access normal rates as your defaults are off your credit file? 

tayajade

runforlife said:

My defaults were scattered all over the place. Using this letter and over a couple of years I got them to date within 3 months of the DMP starting. I actually got this default from 2016 to January 2014 despite asking for July 2014!  The sentences in italics are important. I seem to remember pinching these from a template letter I once saw. 

October 2016

Account Number 1234 5678 9000

Sir/Madam,

I refer to the above mentioned Barclaycard Account which is being reported on my credit reference files.

I propose that Barclaycard has used arrangement to pay markers in place of a default on the account. It is understood that the Information Commissioner's Office does not agree with this and states that this is indeed unfair practice.

Barclaycard first reported early arrears (AA) in October 2013 and November 2013. I had failed to meet the contractual payments in September 2013 and November 2013. This is when I entered into a Debt Management Plan (DMP) with Stepchange debt charity.  

The account was marked OK for December 2013.

From January 2014 through to August 2014 the account was marked with Arrangement to Pay (AR) and then in September 2014 to November 2014 as Early Arrears (AA – 2) followed by Early Arrears (AA-1) in December 2014.

Clearly throughout 2014 I had failed to meet the contractual agreement and had defaulted on the account. 

By entering into the DMP agreement you had sight of my income, outgoings and budget provided to you by Stepchange. This would have made it clear to you that I was not in a position to repay the outstanding amount in full and would be in a DMP for several years. 

The Information Commissioners Office guidelines state than an informal arrangement such as a DMP should not last for more than 6 months, after which either the account should be returned to normal or defaulted. 

I contest the account is incorrectly reported throughout the majority of 2015 as OK for January through December and for May as AA.

Even as recently as August 2016 it shows as AA-2. Also incorrect. 

For your consideration all of my other creditors have defaulted my accounts with them in 2014. All were part of the original DMP. I propose to you that this reflects the true position of my ability to pay my contractual agreement at the time, one which is not reflected by Barclaycard. 

If the current reporting of the account remains, then this places me at a disadvantage to those debtors who do not repay any amount to the creditor and have their account defaulted at the earliest opportunity. 

I therefore propose it is against the Information Commissioner's Office guidelines for my debt not to have been defaulted on or before July 2014.

I request that you place a default date on the account of July 2014 with all of the credit reference agencies you report to.  This will bring it in line with my other debts. 

I will continue to pay payments on these accounts until fully paid

I look forward to your reply. 

Yours faithfully,

Thank you for this, did you check Experian (I’ve been using clear score as it’s free - but has less detail) to see that your file had been marked with AA?

runforlife

I used all three. Experian, Equifax and Call Credit (Noddle/Credit Karma). Well worth it as the online sites appear to be more for user interface appearance than full detail. For the mortgage application recently I signed up to Experian and set a reminder to cancel it before the payment was taken. Its really easy to do and easy to cancel. Much easier and quicker (you can view it straight away) than trying to do the statutory report for free. Just remember to set a reminder or cancel it straight away otherwise its £14.99 a month. 

runforlife

I hope that you don’t mind me asking, with regards to mortgages, have they come back with higher interest rates or were you able to access normal rates as your defaults are off your credit file? 

Not at all. Ha! I remember mortgage rates at 12% and more. Went up about 1.5% in a week once I recall!! 
We are applying to Santander. Its 1.54% fixed for 2 years. No fees and free valuation. 
We could have gone for many different ones, some lower % and some higher %, with different options on variable rates, fixed rates and fee or no fee. Plenty of choice. 

tayajade

runforlife said:

I hope that you don’t mind me asking, with regards to mortgages, have they come back with higher interest rates or were you able to access normal rates as your defaults are off your credit file? 

Not at all. Ha! I remember mortgage rates at 12% and more. Went up about 1.5% in a week once I recall!! 
We are applying to Santander. Its 1.54% fixed for 2 years. No fees and free valuation. 
We could have gone for many different ones, some lower % and some higher %, with different options on variable rates, fixed rates and fee or no fee. Plenty of choice. 

Hope you don’t mind me asking but how is everything going with your mortgage? I’m hoping to follow in your footsteps soon so I’m hoping all is well for you? 

Have you had to give any more information on the debts that you are still paying £1 to but that are not on your credit file? It’s looking likely that we will have to apply with our link debt still in the background as we can’t agree a settlement. I’ve requested the CCA. 

runforlife

Not a problem. Our mortgage has been offered so we are just waiting on the final stages of the purchase now  

My CCA requests have all been returned now and there are 4 unenforceable debts! result! I don't intend to pay any more and if they come up with something in the future then we'll start the ball rolling once more. Thats 2 x Natwest, Barclaycard and MBNA. I will inform Link and Cabot of my new address when we move so I can keep an eye on any possible CCJ applications (which unless they come up with a CCA looks unlikely) so I can defend them if necessary. Thats the only communication I intend to have with them. 

There are mortgages out there for people with DMPs, bad debt etc. You should be ok Good luck, 

tayajade

runforlife said:

Not a problem. Our mortgage has been offered so we are just waiting on the final stages of the purchase now  

My CCA requests have all been returned now and there are 4 unenforceable debts! result! I don't intend to pay any more and if they come up with something in the future then we'll start the ball rolling once more. Thats 2 x Natwest, Barclaycard and MBNA. I will inform Link and Cabot of my new address when we move so I can keep an eye on any possible CCJ applications (which unless they come up with a CCA looks unlikely) so I can defend them if necessary. Thats the only communication I intend to have with them. 

There are mortgages out there for people with DMPs, bad debt etc. You should be ok Good luck, 

That’s great news, I’m very happy for you! Thanks so much for replying and all the best for your house move! 

Penguin_

runforlife said:

Not a problem. Our mortgage has been offered so we are just waiting on the final stages of the purchase now  

My CCA requests have all been returned now and there are 4 unenforceable debts! result! I don't intend to pay any more and if they come up with something in the future then we'll start the ball rolling once more. Thats 2 x Natwest, Barclaycard and MBNA. I will inform Link and Cabot of my new address when we move so I can keep an eye on any possible CCJ applications (which unless they come up with a CCA looks unlikely) so I can defend them if necessary. Thats the only communication I intend to have with them. 

There are mortgages out there for people with DMPs, bad debt etc. You should be ok Good luck, 

How are they unenforceable? Apologies for asking, I have just sent my CCA requests off.

runforlife

Penguin_ said:

runforlife said:

Not a problem. Our mortgage has been offered so we are just waiting on the final stages of the purchase now  

My CCA requests have all been returned now and there are 4 unenforceable debts! result! I don't intend to pay any more and if they come up with something in the future then we'll start the ball rolling once more. Thats 2 x Natwest, Barclaycard and MBNA. I will inform Link and Cabot of my new address when we move so I can keep an eye on any possible CCJ applications (which unless they come up with a CCA looks unlikely) so I can defend them if necessary. Thats the only communication I intend to have with them. 

There are mortgages out there for people with DMPs, bad debt etc. You should be ok Good luck, 

How are they unenforceable? Apologies for asking, I have just sent my CCA requests off.

It's just the law. To prove the debt the creditor has to show that you entered into a contract with the provider at the time. So if they wanted to get a CCJ for a court to order you to pay, the first part of the evidence is that it was a legal contract. Without the agreement they can't prove that. Tough for them, I know, but equally these debt collection agencies buy our debts at a very cheap rate (nowhere near the amount owed I believe) so its a risk they take. 

Penguin_

runforlife said:

Penguin_ said:

runforlife said:

Not a problem. Our mortgage has been offered so we are just waiting on the final stages of the purchase now  

My CCA requests have all been returned now and there are 4 unenforceable debts! result! I don't intend to pay any more and if they come up with something in the future then we'll start the ball rolling once more. Thats 2 x Natwest, Barclaycard and MBNA. I will inform Link and Cabot of my new address when we move so I can keep an eye on any possible CCJ applications (which unless they come up with a CCA looks unlikely) so I can defend them if necessary. Thats the only communication I intend to have with them. 

There are mortgages out there for people with DMPs, bad debt etc. You should be ok Good luck, 

How are they unenforceable? Apologies for asking, I have just sent my CCA requests off.

It's just the law. To prove the debt the creditor has to show that you entered into a contract with the provider at the time. So if they wanted to get a CCJ for a court to order you to pay, the first part of the evidence is that it was a legal contract. Without the agreement they can't prove that. Tough for them, I know, but equally these debt collection agencies buy our debts at a very cheap rate (nowhere near the amount owed I believe) so its a risk they take. 

Ah I see, did they write back to you & say they couldn't produce the documents?