Irresponsible lending complaints

freshstart2023

I wish to enter a DMP, currently missing payments awaiting defaults. Barclays have just upheld my irresponsible lending complaint. They have credited interest/charges back to the account which has reduced the outstanding and that have advised they will remove any bad markers on my credit file until ‘present’. Did I make the complaint too early? If the account defaults does this mean the default will be recorded but not the bad markers prior to it? Thankyou 

MattMattMattUK

freshstart2023 said:

I wish to enter a DMP, currently missing payments awaiting defaults. Barclays have just upheld my irresponsible lending complaint. They have credited interest/charges back to the account which has reduced the outstanding and that have advised they will remove any bad markers on my credit file until ‘present’. Did I make the complaint too early? If the account defaults does this mean the default will be recorded but not the bad markers prior to it? Thankyou 

It means that at present it will show as outstanding but not with late payments/defaults etc. If you pay late again or default again then those new contract breaches will be reported to the CRAs.

Rob5342

What was your intention when making the complaint? Any default that now gets applied will stay for 6 years with no prospect of getting the date changed with a complaint, but with a reduced balance you will be more likely to be able to clear it without getting a default.

enthusiasticsaver

It depends on whether you are still intending to enter a DMP. Do you have other debts? 

fatbelly

I'd regard that as good news regardless of whether you are entering into a dmp or not.

How much does it leave as the balance of the account?

freshstart2023

Thanks for all the replies. The account must be due to default any day now. I guess I was wondering whether if I had have held off making the complaint until after the account had defaulted if this would have prevented the default showing on the CRA also? Or maybe that would still have shown regardless? Yes I still intend to enter a DMP as I have other debts and I am still unable to pay the balance which has been reduced to around £13K from around £16K. Thankyou 

freshstart2023

Rob5342 said:

What was your intention when making the complaint? Any default that now gets applied will stay for 6 years with no prospect of getting the date changed with a complaint, but with a reduced balance you will be more likely to be able to clear it without getting a default.

I guess I genuinely thought it was irresponsible as they kept increasing my limit until it got to £16K when my salary was only around £23K

Rob5342

All cases are different. In my Tesco complaint the FOS decision was that the default I had should be backdated to the date of the credit limit increase. With Nationwide they said that they should arrange an affordable repayment plan with me, and that when I'd completed that all negative marks should be removed.

MattMattMattUK

Tied in with this, have you clarified with your employer the position regarding defaulting on a debt you owe to them? As you work for a financial services company (presuming as you say they are a card issuer and you owe them money), did you work out if defaults or a DMP may impact your employment?

freshstart2023

Yes, I found out I was expected to declare a DMP to them and that it could impact employment.  In the end I didn’t ask about defaulting and instead too they decision to seek alternative employment, outwith financial services, in a role where I am not expected to declare a DMP. I just want a completely new start. New job, DMP so I can start payment plans and hopefully stop the sleepless nights about how I will scrape together enough for minimum payments to avoid impacting my credit rating and protect my employment. 

sourcrates

An account can only default once, so it it had defaulted already, it`s very likely the whole entry would just disappear completely, and would not be reported on further.

If it has yet to default, as you say, then any negative marks prior to your complaint are supposed to be removed.

However I have yet to see this happen in practice, I find normally they will just remove the whole entry, it will just vanish, and no further reporting will happen.

I have never seen pre-existing late or default markers ever removed from a credit file, and replaced by green ticks, never seen it, I have seen entries removed completely though, as I think that is easier than doctoring existing data.