Default expiration

robinsonad86

Good afternoon everyone. I have a few defaults on my credit file which are due to start expiring in the next few months. I was just wondering when these expire does the relevant account disappear from my file also or is that still visible to any future lenders?

Thanks in advance

fatbelly

The account is removed from your file 6 years after it is defaulted or settled, whichever happens sooner.

Defaults do not expire

robinsonad86

Thanks fatbelly and sorry about the incorrect terminology I knew the default wouldn't "show" I was just unsure on if the account still would.

Following from that I have 2 "what if questions." If the accounts are no longer on my file the only way a potential mortgage lender would have any knowledge of any DMP would be my monthly payment to PayPlan. If I was to stop the payment and cease the DMP would any further action likely be taken? Obviously it cant be defaulted again so the only path would be court action to obtain CCJs I assume? And again theoretically and only asking because my DMP is up for review if I was to show my budget was at 0 and I had zero spare income available (so what I'm paying could go towards my deposit saving) do you have any idea what the likely outcome and resultant action from the creditors or whoever owns the accounts would be?

Thanks again

fatbelly

True. Lenders would not see from your credit file that you were on a dmp.

Court action, on a rough estimate, happens on one in ten defaulted debts.

How to play this is up to you

Sly72

robinsonad86 said:

Thanks fatbelly and sorry about the incorrect terminology I knew the default wouldn't "show" I was just unsure on if the account still would.

Following from that I have 2 "what if questions." If the accounts are no longer on my file the only way a potential mortgage lender would have any knowledge of any DMP would be my monthly payment to PayPlan. If I was to stop the payment and cease the DMP would any further action likely be taken? Obviously it cant be defaulted again so the only path would be court action to obtain CCJs I assume? And again theoretically and only asking because my DMP is up for review if I was to show my budget was at 0 and I had zero spare income available (so what I'm paying could go towards my deposit saving) do you have any idea what the likely outcome and resultant action from the creditors or whoever owns the accounts would be?

Thanks again

I was under the impression that the default is removed from your credit file, but you you continue to pay, or offer / agree a settlement. If you stop paying then  pssible CCJ action.

fatbelly

Sly72 said:

I was under the impression that the default is removed from your credit file, but you you continue to pay, or offer / agree a settlement. If you stop paying then  pssible CCJ action.

the account entry on your credit file stays with the default marker, even if you pay it off. It then also gets a satisfied marker. Or if you do a settlement deal, partially settled. On the sixth annivera ry of the default, the whole entry is removed.

A county court claim is always possible, and if this proceeds to a judgement, and is not paid within a month, then a fresh entry appears in the judgements section which again stays for 6 years and can be marked settled if later paid

conkerlad

fatbelly said:

True. Lenders would not see from your credit file that you were on a dmp.

Court action, on a rough estimate, happens on one in ten defaulted debts.

How to play this is up to you

It is an interesting one, particularly on accounts bought by a 3rd party, they buy for pennies in the pound and so would they really take a debt to court when over the course of paying them until the default drops off, they are most likely in profit at that point? Does seem like a dice roll, I shall encounter this conundrum myself in 11 months time with PRA.

fatbelly

Of the accounts that do see court action, the most common trigger is that the debtor is not making payment and the debt is getting near to being statute barred. You are right that if the debtor is making payment there is no point in court action as the debt is being continually acknowledged and the court would likely not order payment in larger instalments