Credit cards default

Rajsan

Thank you for clarification.

just to understand on the credit file 6years mark.If the defaulted date is 01/01/2025 and the 6years to get default removed is 31/12/2030.
if the DMP starts on 01/05/2025 and ends on 31/04/2031.
default/DMP mark gets removed in 2025 or 6years from post completion of DMP payment ?

Rob5342

A default will always dtop off 6 years after it was appliy regardless of what you do. 

EssexHebridean

There is no such thing as a “DMP mark” 

fatbelly

A dmp is an informal solution so there is no mark.

However, each debt within the dmp should have a mark if you are paying less the the contractual payment.

If the mark is default, the entry is removed six years later

If the mark is Arrangement then the entry is removed six years after the debt is cleared (settled).

Are you going to do a statement of affairs?

Rajsan

not going to do a statement of affairs.
i just missed one payment on Zopa card and got default notice email.

We've issued a Notice of Default Sums on your account

sourcrates

Rajsan said:

not going to do a statement of affairs.
i just missed one payment on Zopa card and got default notice email.

We've issued a Notice of Default Sums on your account

That`s not a default notice, under sec 87(a) CCA, its a "default sums notice" which simply means they are charging you a £12 missed payment fee, nothing more.

EssexHebridean

Rajsan said:

not going to do a statement of affairs.
i just missed one payment on Zopa card and got default notice email.

We've issued a Notice of Default Sums on your account

OK - we'd be happy to help, but without an SOA it's not possible to give specific assistance for your individual circumstances. 

Rajsan

I am speaking with stepchange for DMP.my accounts are not gone into default state yet.
if i make arrangement plan with companies then the arrangement entry is removed after debits are cleared right ? And if the payments are made after default registration and default will be removed post 6years from default date ?

I am confused whether start the DMP once the accounts defaulted or an arrangement plan with companies ?

ManyWays

if i make arrangement plan with companies then the arrangement entry is removed after debits are cleared right? 
Wrong, with an arrangement, the marker on your credit records is removed 6 years after the debt is settled, so this is potentially much longer than a default would take to clear. 

Rob5342

Defaulting is far better for your credit report in the long run as you hsve a fixed date 6 years after the default when it will drop off. An arrangement to pay could stay much longer. The other thing is that once defaulted a debt is more likely to be sold to a debt collector who would be far more likely to accept a reduced settlement offer, so you could save yourself a lot of money too.