Default on credit file 10 years after entering a DMP

Emmsy3008

Hi

i am hoping someone can help! In my youngest (much less wiser) days I got into a bit of debt and struggled with the repayments. I therefore entered into a debt management plan around 2011, I am still in this plan making regular monthly payments and I haven’t missed a single one. Now my issue is one of the debts was sold to debt management company who have put a default on my credit score dated January 2020. From my little knowledge and some research am I right in thinking that this is wrong and the account first went into default in 2011? 

I have contacted the transunion who have not been able to help! 

I am really trying to get myself in a better position and this just isn’t helping 

thank you 

Suseka97

You may have to do a bit of digging and look back on any historical records you have from the original creditor.  Accounts do not, automatically, go into default, the creditor has to do that.  So, there is a possibility that the creditor had your file marked as on an arrangement to pay (AP/AR) and its only been defaulted as part of selling the debt on.  If that's the case then you are going to have to raise a complaint with the OC and keep complaining to get them to backdate the default.

MaryLongstaff

My understand from your message is that you have a default on your dmp repayments on the same debt? If it is the same debt you've been paying towards then it would not become statute barred (expires after 6 years). However, you should have been informed several times that your debt was being sold and if you were not then you have the rights to complain to this FOS (Financial Ombudsmen Service) and write off this debt. 

My advice - contact the FOS, keep track of all your interactions regarding this debt, and also try your best to contact the new debt management company - explain your situation alongside your outstanding track record and come to a new repayment scheme.
However - it does sound like if they failed to let you know then you have grounds to have your debt written off following a complaint. 

sammyjammy

MaryLongstaff said:

My understand from your message is that you have a default on your dmp repayments on the same debt? If it is the same debt you've been paying towards then it would not become statute barred (expires after 6 years). However, you should have been informed several times that your debt was being sold and if you were not then you have the rights to complain to this FOS (Financial Ombudsmen Service) and write off this debt. 

My advice - contact the FOS, keep track of all your interactions regarding this debt, and also try your best to contact the new debt management company - explain your situation alongside your outstanding track record and come to a new repayment scheme.
However - it does sound like if they failed to let you know then you have grounds to have your debt written off following a complaint.

Are you reading the right post?

sourcrates

MaryLongstaff said:

My understand from your message is that you have a default on your dmp repayments on the same debt? If it is the same debt you've been paying towards then it would not become statute barred (expires after 6 years). However, you should have been informed several times that your debt was being sold and if you were not then you have the rights to complain to this FOS (Financial Ombudsmen Service) and write off this debt. 

My advice - contact the FOS, keep track of all your interactions regarding this debt, and also try your best to contact the new debt management company - explain your situation alongside your outstanding track record and come to a new repayment scheme.
However - it does sound like if they failed to let you know then you have grounds to have your debt written off following a complaint. 

Where on earth do you get this "information" from  ?

sourcrates

There will be no record now of what happened, so its going to be your word against theirs.
Its no good attempting to deal with the CRA`s, they only act on information they are given.
Who is this new "debt company" anyway, name please ?
(and no, just for the sake of clarity, the debt will not be "written off" under the circumstances described).

You seem unsure as to whether the account defaulted or not, which complicates things further, as to find out if this account did default, it has to be dealt with by the original creditor, only they can tell you, if the account defaulted, and if so when, but, another further added complication, is that information is only kept for 6 years, so this could take a lot of letter tennis to solve.

A first step would be to write to the OC and ask for the default details of the account, you may need to send a SAR to get what you want.

At the same time write and tell the debt company, who still remains nameless, that a dispute has arisen over the date of default for this debt, and they should either choose to remove said default, and/or hold collection activity until the complaints process has been exhausted.

See what comes out of the woodwork.

flipflopflo

Just as an aside may I ask who your DMP is with and why you decided to go for that option and not one of the other options?