Zopa loans on DMP

momentoftruth

Hi all, wishing I had found this site before now! I signed up to a DMP in July before my zopa loans defaulted. I've just received a letter advising my loans are now defaulting.

So now that my loans are defaulting will they clear off my credit record in 6 years time or 6 years after I finish paying the DMP?

The loans I took out were a 15k loan (5years) and 7.5k (4 years) loan. I did pay these for over a year before the DMP, however the loan amount is still a similar amount as they've included interest for the full term and this is what I have in my DMP. If they sell my loan is it likely they may go back to the principle amount or stop any further interest as this would likely save me a few thousand. I did try and speak to zopa about this but the only thing they were able to do was put me on a 30 day breathing space which I now released delayed the defaulting further.

Any advice would be really appreciated!

sourcrates

Once defaulted, the default marker takes precedence over all else, and will show on monthly updates for six years from the initial date of default, before being automatically removed.

Where loans are concerned, the full amount (principle amount plus interest that would have been charged if the loans had run there course) minus whatever payments already made by you, will become the default balance you have to repay, but no further interest or charges can now be added to that total.

If your debts are sold, they will sell the current outstanding balance at the time, this may put you in the position of receiving settlement offers further down the line, where if you have a capital sum saved in your emergency fund, you can get a deal on final settlement of the debt.

Its something some debt purchasing companies will do, as they pay so little for these accounts they can afford to give discounts to clear the debt quicker, expect anywhere between 30% and 60% off.

momentoftruth

sourcrates said:

Once defaulted, the default marker takes precedence over all else, and will show on monthly updates for six years from the initial date of default, before being automatically removed.

Where loans are concerned, the full amount (principle amount plus interest that would have been charged if the loans had run there course) minus whatever payments already made by you, will become the default balance you have to repay, but no further interest or charges can now be added to that total.

If your debts are sold, they will sell the current outstanding balance at the time, this may put you in the position of receiving settlement offers further down the line, where if you have a capital sum saved in your emergency fund, you can get a deal on final settlement of the debt.

Its something some debt purchasing companies will do, as they pay so little for these accounts they can afford to give discounts to clear the debt quicker, expect anywhere between 30% and 60% off.

Thanks Sourcrates, I had hope that as part of the DMP they would stop charging interest from the start of the DMP but appreciate the clarification.
Thanks for taking the time to reply!

ManyWays

You paid those loans pre DMP but that doesnt mean that you could afford them if paying Zopa meant that you ended up borrowing with other lenders such as a credit card to get by. If you win an affordability complaint you can get the interest removed from the start of the loan not from the date the DMP started so the DMP balances will drop, see the Debt Camel website.