DMP & time for defaults to come off credit file?

Stavrosflatley

Hi guys,

Hopefully, someone here can advise me!

I have had a DMP since September 2017, fortunately, I have managed to pay all but one of the creditors off. At the time that I went onto the DMP, I was served with 6 default notices on my credit file most of which are showing as being served in November 2017. The one creditor that did not serve a default notice is the only creditor I have left to pay off. I owe £3000 to them. I am hoping to buy a new house and finally move on with my life in early 2023 and I want to know what the implications are of this creditor having not served a default? Is my file going to show a constant stream of late payments until I get it paid off late next year? Or does it come off my credit file when it's settled as at the point of settlement the debt will be more than 6 years old?

As strange as it sounds, I hope that them not serving me a default notice isn't going to work against me!

Thanks

Sncjw

It's not how old the debt is. It's the amount of time the last payment or acknowledgement of the debt. So would be 6buears from your last paymentm

EssexHebridean

I believe there is a process to challenge this so long as at some stage there was actually a gap where you paid nothing. The guidelines I think say 3/4 missed payments would ideally trigger a default - Sourcrates is your expert here though, they’ll hopefully be about at some stage to advise. 

Currently, and without challenge, my understanding is that as above, the 6 year clock will run from the final payment being made. 

sourcrates

Have you looked at your credit file to see how its been marked currently ?

Creditors are not obliged to default you, the guidelines are perceived in different ways by different lenders.

Are you paying anything towards this debt, if not when was your last payment ?

If you have not made any payment in more than 6 years, then it may be statute barred, they may be marking it as late payments, they may be giving you green dots, or AP markers, its anyone's guess until you take a look and tell us.

Stavrosflatley

Thanks for the replies, I'm sorry for not replying sooner I'm working in a very remote area. 

I am currently paying £100 per month towards the debt. In the new year I plan on paying £800 per month to get rid of it. 

When I look on my credit file, the debt every month gets updated with a red "6", I assume this means I am more than 6 months in arreas? 

As for all my other credit, It was all paid off on the 9th of June 2019. So am I correct in understanding what you're saying, for the credit I have already paid off, I will have to wait until 9th of June 2025 until the bad stuff comes off as opposed to November 2023 as I previously thought?

HeinzVarieties

Stavrosflatley said:

Thanks for the replies, I'm sorry for not replying sooner I'm working in a very remote area. 

I am currently paying £100 per month towards the debt. In the new year I plan on paying £800 per month to get rid of it. 

When I look on my credit file, the debt every month gets updated with a red "6", I assume this means I am more than 6 months in arreas? 

As for all my other credit, It was all paid off on the 9th of June 2019. So am I correct in understanding what you're saying, for the credit I have already paid off, I will have to wait until 9th of June 2025 until the bad stuff comes off as opposed to November 2023 as I previously thought?

No, it's 6 years from the date of default. If they defaulted in Nov 2017, they would drop off at some point in Nov 2023 (whenever the 6 year anniversary is to the day.)

Suseka97

As above, those that defaulted in 2017 will drop off your credit file/s in 2023 on the anniversary of the default marker date.

As for the one creditor that is marking your debt as more than 6 months in arrears, since 2017, well that one will have an impact and will continue to show as an adverse marker for 6 years from the date it is settled.  So you really need to be making an official complaint directly with the creditor concerned and keep pushing them to get a backdated default.  Ideally you want them to backdate a default to the point where your contractual payments stopped and the DMP payments started or, as a minimum, 3 - 6 months from that date.  

It might take a bit of to-ing and fro-ing but be persistent and keep on at them.

fatbelly

Suseka is correct - your entry stays until 6 years after the debt is defaulted or settled, whichever occurs first.

If there has not been a default after 3-6 months of no payment, then ask for it as Suseka says