Urgent advice. DMP now or default first. Please help on a plan

Rob5342

It's very counter intuitive that talking to your creditors means you get treated worse than if you just ignore them, but bizarrely that's the way it is. 

Let us know if you hsve any more queries. I felt very uneasy when I started my dmp but everything went very smoothly and I was soon feeling on top of things. 

tigergambit

@Holyt

Good luck with this - not talking to creditors is harder than you think so I'd be inclined to send off the GDPR letters now.

I'd stay away from StepChange. You seem quite well organised and will have a lot more freedom without them.

Two other tips:
Get An A4 ring binder and a set of dividers and keep everything you get sent by each creditor, most recent on top. Just keep a summary on your spreadsheet. Makes life easier when you do want to start talking.

Prepare TWO SOAs. A real one to live by and a second one which you can show to creditors if you want to. You need to remember exactly the story you are telling them, but it doesn't have to be the complete truth.

HolyLad

tigergambit said:

@Holyt

Good luck with this - not talking to creditors is harder than you think so I'd be inclined to send off the GDPR letters now.

I'd stay away from StepChange. You seem quite well organised and will have a lot more freedom without them.

Two other tips:
Get An A4 ring binder and a set of dividers and keep everything you get sent by each creditor, most recent on top. Just keep a summary on your spreadsheet. Makes life easier when you do want to start talking.

Prepare TWO SOAs. A real one to live by and a second one which you can show to creditors if you want to. You need to remember exactly the story you are telling them, but it doesn't have to be the complete truth.

Thank you so much ! 

HolyLad

Hey All. I hope you are well. Im still waiting on defaults to occur. I have a question which I hope you can provide clarity on. Will have about 15 or so in months to come. 

If a lender doesnt default me for say 12 months, I have the right to complain and ask them to backdate this. Do many accept and refund the interest after when they should have defaulted me in the first place?

What if I have built up enough funds in my emergency pot to pay this and prevent one extra default. I get this will set me back in my fund, but is it worth doing this or should I still wait for the default and go from there.

I am worried my defaults or maybe one or two will take longer than 12 months which will drag things out a year more than needed when the ICO suggests 3-6months.

Any help or suggestions would be appreciated. 

sourcrates

Yes you can complain and ask them to default you within FCA guidelines, but don`t expect any refund of interest, as that`s just not going to happen.

Whether they do this or not is a commercial decision only they can make, it will depend on a number of factors.

I would not recommend being too hasty to settle anything, although you may feel like you`re getting somewhere, but given time, once the debt has done the rounds a few times and been sold on, its likely a much more favourable deal could be done.

HolyLad

sourcrates said:

Yes you can complain and ask them to default you within FCA guidelines, but don`t expect any refund of interest, as that`s just not going to happen.

Whether they do this or not is a commercial decision only they can make, it will depend on a number of factors.

I would not recommend being too hasty to settle anything, although you may feel like you`re getting somewhere, but given time, once the debt has done the rounds a few times and been sold on, its likely a much more favourable deal could be done.

Thanks for giving your reply. But surely this will delay the 6 year clock right? If I have enough savings and it wont have too much of a dent in my EF is it worth just clearing it. I see your point. I guess some lenders are stubborn and try rinse it while they can and prevent a default from occurring as long as possible. I plan to have a mortgage in 5 years with a decent deposit. I guess one less default wont be any difference or not

HolyLad

Hello

 

I thought to pick this one back up. I have had a successful complaint uphold regarding Very. This went to the ombudsman.

To give you an understanding.

Credit limit 9 December 2023 Account opening £400

13 January 2025 Limit increase £800

15 September 2025 Limit increase £1,800

 

The complaint has been upheld by the ombudmsan with:  Very should also remove all adverse information recorded from 15 September 2025 regarding this account from the credit file.

As I don’t think Very should have increased credit limit above £800, I don’t think it’s fair for it to charge any interest or charges on any balances which exceeded that limit. However, has had the benefit of all the money he spent on the account so I think he should pay this back. Very should arrange an affordable repayment plan for the remaining amount of the full £1800. Once has cleared the outstanding balance, any adverse information recorded after 15 September 2025 in relation to the account should be removed from their credit file.

 

Should I enter a payment token plan now before defaulting or wait for default? Will this make any difference to my plan to wait for defaults?

Will they remove the account entirely even if I default?

Im confused as they confirmed checks were affordable by up to £800. – im ok and kinda agree with this.

How will this account be reported on my credit report as its split with correct procedure up to £800 but after this unfair lending has taken place.

 

Hopefully you understand what I mean.

 

Thanks

 

sourcrates

What usually happens is the entire entry will be removed, as there is no other way to mark your file, but they say this will only happen after you repay the balance, so I`d crack on and do that, and then the whole lot will vanish as if it was never there.

ManyWays

FOS has said what should happen and it looks like a common decision for credit cards:

Very should arrange an affordable repayment plan for the remaining amount of the full £1800. Once has cleared the outstanding balance, any adverse information recorded after 15 September 2025 in relation to the account should be removed from their credit file.

You arent going to get a default on this, you will get a payment arrnagement. The normal problem with these is that they stay for 6 years after the balance has been cleared, but this wont happen as the negative marks will be removed when the debt is cleared.  

HolyLad

sourcrates said:

What usually happens is the entire entry will be removed, as there is no other way to mark your file, but they say this will only happen after you repay the balance, so I`d crack on and do that, and then the whole lot will vanish as if it was never there.

Thanks for taking a look.

I was kinda hoping for the debt to be sold and make a reduced settlement in a few years.

Or can I still do this? Will my plan still remain the same? 

Or is it worth me starting to make payments now?