Credit Ratings and adverse accounts

Badgerwood15

Please can I ask for advice regarding an adverse credit account. I took on a DMP in 2013 and paid the agreed monthly amount until I sold my house and cleared the whole amount in August 2016. So I thought the 6 year countdown to a better credit score would start then. Ive been checking my Experian over the years and its got better as some default accounts disappeared - and I was really looking forward to being out of the woods this month. However I realise now that one of the accounts Next - did not report the account as settled until August 2017 despite it all being paid off a full year before - no credit was used between 08/16 and 08/17 or indeed since then. Checkmyfile credit rating agency are saying I have to talk to Next to get this amended but the Next credit team refuse to take my calls. I really need to remortgage before the interest rates go up any further - Im already on a high rate due to the DMP.

Does anyone know - does the countdown 6 year clock start at the reported (but inaccurate) settled date of August 2017. Or does the fact that because Ive got green ticks between August 16 - August 17 ie no adverse activity mean it should drop off my credit report sooner/ this month as its been 6 years. I can easily provide evidence to Next I paid it off in August 2016 via an email if I could just speak to them.

Its really frustrating trying to get an answer from these agencies and Next itself.

Thanks very much 

MovingForwards

Does the next account show as being paid each month, an AP marker or something else?

sourcrates

It makes no difference whatsoever how a defaulted account is marked, it's the date of default that is the "cause of action" date, not when it was settled.

A defaulted account shows on your file for 6 years, from the date it was registered, it then automatically drops off, regardless of what you or anyone else does.

Next refuse to take your calls ?  it may have been because they mis-understood your concerns.

Badgerwood15

Thanks for your reply. It is strange it shows AR (I assume arranged payment) up till February 2016. Then there is 4 months when its reported I didnt pay anything so the months in arrears score is 4 in August 2016 - factually incorrect as I would have paid the arranged monthly amount via my DMP. It was all paid off August 2016 then its just green ticks till eventually the 's' for settled (I presume) appears in August 2017. I hope this is the info you were after? 

Thanks so much

sourcrates

Did the account not default then ?

If you have arrangement to pay markers, they will still show for 6 years from the date of settlement, so you may have cause for complaint here after all.

But please put it all in writing, it's pointless approaching these complex issues over the phone, you need to ask them to default you, and backdate it to when you first got into trouble.

Your reasoning for this is that they have treated you unfairly by making you worse off than someone who has neglected their debts altogether.

Mark your letter "COMPLAINT" send to their customer services address.

Badgerwood15

Thanks for your reply. Stupid question - but how do you know when an account has been defaulted? I assumed it was when I started my DMP in September 2013. But if that was the case it would have dropped off by now. 

MovingForwards

It days default and the date when defaulted. Then it's 6 years after that falls off.

AP / AR means arrangement and it's 6 years after its paid / settled / closed when that drops off. However, the impact reduces after time, especially if there's positive credit history to counteract it eg mortgage, mobile, CC etc paid on time each month.

[Deleted User]

Badgerwood15 said:

Thanks for your reply. Stupid question - but how do you know when an account has been defaulted? I assumed it was when I started my DMP in September 2013. But if that was the case it would have dropped off by now. 

It should be when you failed to pay your contractually agreed payments, this is typically after 2-3 are missed which usually means 2-3 months of missed payments so yes around 2013

Badgerwood15

Sorry just one final question. The report specifically about the Next account does not make any reference to a Default. Since 2013 it is a mix of arrangement to pay, random months showing in arrears (when the debt was being paid off by the DMP) and green ticks up to August 2017 when it states the debt was satisfied rather than settled (my mistake). If the account was never actually Defaulted does that have a bearing or as people have said it should have dropped off 6 years after the last adverse monthly report anyway. Im just drafting my letter to Next.

Thanks again.

sourcrates

Badgerwood15 said:

Sorry just one final question. The report specifically about the Next account does not make any reference to a Default. Since 2013 it is a mix of arrangement to pay, random months showing in arrears (when the debt was being paid off by the DMP) and green ticks up to August 2017 when it states the debt was satisfied rather than settled (my mistake). If the account was never actually Defaulted does that have a bearing or as people have said it should have dropped off 6 years after the last adverse monthly report anyway. Im just drafting my letter to Next.

Thanks again.

It looks like it didn`t default then, you had arrangement to pay markers instead.

You may have a fight on your hands getting this changed, but it`s worth a shot, it does happen this way occasionally, all you can do is complain, using the argument I referred to above, and see how it pans out.