DMP Questions

Geoneogeo · 15 June 2018 at 10:42AM

Hi all,

Me and the wife have been on a DMP for 7 years now paying £300 per month split across 9 creditors. Original debts were 48k and I'm now down to 27k.

My questions are as follows

1. All debts were defaulted and none now show on our credit files. If I was to offer Full and final settlement payments would these payments put them back on my credit file as paid?

2. Can these accounts still be CCJ'd and then start the 6 years of poor credit rating? Would they do this if I start rocking the boat with offers?

3. ALL Debts are with DCA but I still receive letters from lloyds every 6 months on 6 of the accounts showing payments so I assume they are using DCA to collect and haven't sold the debts?

4. Is it best to lease with all my creditors direct rather than with the DM Company Payplan.

Reason for these questions is me and the wife are selling our house and the father in law is prepared to lend us the money to pay off ALL debts before the sale so we can get a better mortgage deal as we would have no debts to still declare even though they are not showing on our credit files.

Just looking for some definitive answers to my questions.

Many thanks

[Deleted User] · 15 June 2018 at 11:35AM

1. No - after 6 years the record is removed from your file
2.Yes - they can take you to court within 6 years of last payment
3. It looks like it
4. Keep everything via Payplan

sourcrates · 15 June 2018 at 5:51PM

Additionally, creditors will not look to take court action just because you make them an offer to settle, accounts that have been sold on should attract the best discount, those still with original creditors may not budge very much in terms of what they will accept.

If you are a confident negotiator, i would make the offers myself, the only reason i say this, is because when you take this course of action, during a DMP run by a charity, they expect you to deposit the lump sum with them first, they then attempt to pay everything off, with that lump sum, they may not be successful, you could end up still owing money.

Making written settlement offers is easy using the national debtline template letter available from there website, it also leaves you in control of the deal, and not some 3rd party call center worker you don`t know.

Dandytf · 18 June 2018 at 11:23AM

With existing defaults.
If agreeing and making Full and Fnal settlements .
Does that mean 6 years start again on cra.
E,g, upto 6 yrs D -default drops off 6 years
During 6 years F+F partial paid -is this another 6 years

glentoran99 · 18 June 2018 at 3:59PM

no, drops off 6 years from default no matter what else happens regarding payment, Unless they take you to court and get a CCJ

sourcrates · 18 June 2018 at 4:07PM

Dandytf wrote: »

With existing defaults.
If agreeing and making Full and Fnal settlements .
Does that mean 6 years start again on cra.
E,g, upto 6 yrs D -default drops off 6 years
During 6 years F+F partial paid -is this another 6 years

Accounts can only default once, the default remains for a period of 6 years.

Only a payment, or written acknowledgement, by the debtor, can re-start the time clock.
A settlement offer will have the effect of closing the account, and the whole entry will still drop off your file, 6 years from original default date.

Court action any time within those 6 years means the Limitations act no longer applies.

Dandytf · 18 June 2018 at 4:54PM

sourcrates wrote: »

Accounts can only default once, the default remains for a period of 6 years.

Only a payment, or written acknowledgement, by the debtor, can re-start the time clock.
A settlement offer will have the effect of closing the account, and the whole entry will still drop off your file, 6 years from original default date.

Court action any time within those 6 years means the Limitations act no longer applies.

Detailed explanation.
Temptation to consider F+F's is increasing.
Maybe I'll review F+F info again.
Gues I've nothing to lose starting at highest balance 1213 -some difference since late 2012.

Thanks amazing advice Sourcrates

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