Tmp, Defaults and Full and Final Settlement advice please.

Skoots1710 · 25 April 2018 at 2:59PM

Hi all

I've just joined this forum in the hope that someone can help me with all the confusion I am currently in. I have been reading through these forums for a few days now and I'm not sure what is the best thing to do with my own personal situation.

Basically I entered into a Debt Management Plan in February 2014, I have 3 accounts now left on that plan which have all had defaults issued but all in different years since the DMP started.

I always thought of a default notice to be a really bad thing to get, but from reading through these forums it seems the earlier they get issued the better, especially if you're going to be on a DMP for a long time.

I'm currently in a situation where my Dad has offered to help pay off my balances, but he can't afford the whole lot. I didn't even know a 'Full and final offer' was a thing, again, until I read these forums!

Looking into it I have read online that a full and final settlement will show on your credit file for 6 years 'OR' for 6 years from the date of the default if that came sooner. Is this the case?

Basically I have three cards left :-

Capital One - who defaulted me almost straight away in March 2014 - this is still with them and has never been to a Debt Collection Agency. - This means I only have 2 years before the default comes off.

Lloyds - defaulted 18 months ago around Oct 2016 - Now with Wescot

Halifax - defaulted only February 2018 some 4 years after being in the DMP! Now with Wescot

All these cards have been in the DMP since day one.

I have read that the card companies should default you between 3 to 6 months after starting on a DMP Is this true? Also if that is the case should I ask Lloyds and Halifax to backdate the default so that it comes off my file earlier?

So basically am I better to make full and final settlements now, if I can, or keep plugging away until I can pay the whole balances off, if ever!

Many thanks for any help in advance.
x

sourcrates · 25 April 2018 at 3:42PM

Up to you, if you can afford it why wait.

You are correct about the default situation, complain and ask them to change it, do that first.

All settlement offers should be made in writing (will provide link for you later).

Skoots1710 · 25 April 2018 at 3:58PM

Hi, I can only afford a partial payment, thats why I wasn't sure to wait or not.

Stepchange have just advised me that its down to the individual creditor to decide when they issue the default and they may refuse to backdate it but I could ask. I've paid a lot off the balances since the start in 2014 and never missed a payment through step change so she did say that they may look at it kindly that way.

Its the difference of having all this off my credit report in 2 years or 6 from now so its a big difference really.

National_Debtline · 25 April 2018 at 5:42PM

Hi Skoots1710

As it stands now, each debt is going to be removed from your credit file 6 years after the date the default was registered. That's regardless of whether you manage to get a full & final settlement agreed, or you continue in the DMP. If you can get the creditors to backdate the defaults then the debts can be removed evener sooner.

Even when the debt has been removed from your credit file you will still owe the money. That means if you can get your creditors to agree to a full & final settlement you'll end up paying less back. The debt will be updated to show you have partially settled it. You can find out more on this here https://www.nationaldebtline.org/EW/factsheets/Pages/fullandfinalsettlementoffers/lumpsumoffers.aspx

Good luck with it all.

Susie
@natdebtline

Skoots1710 · 25 April 2018 at 8:58PM

Hi, thanks for your reply.

Thats what I don't understand, why one defaulted when the DMP started in 2014 leaving only 2 years to go now and Halifax have only defaulted just now in 2018, which basically means I've got another 6 years to go from now unless they backdate it?

Stepchange just advised me that its up to them when they default it, but it was worth a try to get them to backdate it.

I mentioned earlier that I've seen people saying they should default it 3 to 6 months into the DMP, but where do I stand with that? Is is something they should have done or am I basically just going to be asking them to please be nice and backdate it for me? Are there any rules to this?

What do I need to say to the creditors to ask them to backdate it, why do I think they should? I'm really confused on this as to how it all works or should be, therefore I don't really know how to approach them.

Hope this makes sense as I'm really not sure what i'm talking about :-/

I do understand now that regardless if I make a full and final offer that may be accepted or continue paying a balance for a few more years that either way they will drop off my credit file 6 years from the default date, thank you National Debtline for explaining that side of things.

Has anyone had success with getting a default date backdated?

Kind regards

Skoots1710 · 25 April 2018 at 9:01PM

sourcrates thanks for the reply, is that a template for full and final offers?

sourcrates · 25 April 2018 at 9:06PM

Skoots1710 wrote: »

sourcrates thanks for the reply, is that a template for full and final offers?

Yes, National Debtline beat me to it, same link.

National_Debtline · 26 April 2018 at 11:19AM

Skoots1710 wrote: »

Hi, thanks for your reply.

Thats what I don't understand, why one defaulted when the DMP started in 2014 leaving only 2 years to go now and Halifax have only defaulted just now in 2018, which basically means I've got another 6 years to go from now unless they backdate it?

Stepchange just advised me that its up to them when they default it, but it was worth a try to get them to backdate it.

I mentioned earlier that I've seen people saying they should default it 3 to 6 months into the DMP, but where do I stand with that? Is is something they should have done or am I basically just going to be asking them to please be nice and backdate it for me? Are there any rules to this?

What do I need to say to the creditors to ask them to backdate it, why do I think they should? I'm really confused on this as to how it all works or should be, therefore I don't really know how to approach them.

Hope this makes sense as I'm really not sure what i'm talking about :-/

I do understand now that regardless if I make a full and final offer that may be accepted or continue paying a balance for a few more years that either way they will drop off my credit file 6 years from the default date, thank you National Debtline for explaining that side of things.

Has anyone had success with getting a default date backdated?

Kind regards

Hi again Skoots

Some creditors choose to show there is an arrangement in place (AIP) when someone enters into a DMP. An AIP is an accurate reflection of the DMP. However for a lot of people, in the long run registering a default sooner rather than later is beneficial.

You could ask the companies to consider backdating the default. You would be basing this on the Information Commissioner's Office (ICO) guidance which says a default should usually be registered once arrears are between 3 to 6 months.

There are people on the forum who have reported success in getting a company to agree to this. If yours don't agree you could try a complaint to the ICO and the Financial Ombudsman Service (FOS). I hope it goes well.

Susie
@natdebtline

Suseka97 · 26 April 2018 at 3:03PM

Hello,

All good advice from NDL and Sourcrates so I have nothing to add there.

I've just popped on to answer your question about getting defaults backdated. Basically if you don't try, you won't get. I was successful in getting Halifax to backdate mine around a year ago (time marches on in DMP land and I can't quite remember the exact timeframe) and that was even after I'd actually paid off the entire balance, eventually held by Wescott.

Creditors are odd creatures in that they all do different - some folks find they get early defaults and others don't (from when its the same company). Halifax was my challenge - they didn't default us until around 18mths to 2 years into the DMP despite my best efforts. I wrote letters to explain my position and that by not defaulting me they were not treating me fairly -but they still wouldn't budget. This went on for more than a year. As I've already mentioned, eventually they passed the debt over to Wescott and I just accepted that the 'D' would stay on my file longer than it should.

Then one day I decided to have another go- not sure why at the time, but I wrote a long letter to the Managing Director saying how unfair I felt the situation was etc... blah... blah and out of the blue this guy called me. He was Head of Collections / Recoveries or something like that and after about 10 mins of chatting through my complaint he just said he would arrange for the default to be backdated. I was gobsmacked to be honest and didn't believe him, but lo and behold the next update on my credit file showed the D have been completely removed. So he didn't just backdate, its as if it didn't exist - go figure.

The moral of the story is that everyone will have different experiences and so the best advice I can offer is that you'll lose nothing by trying

Skoots1710 · 29 April 2018 at 4:26PM

Suseka97 wrote: »

Hello,

All good advice from NDL and Sourcrates so I have nothing to add there.

I've just popped on to answer your question about getting defaults backdated. Basically if you don't try, you won't get. I was successful in getting Halifax to backdate mine around a year ago (time marches on in DMP land and I can't quite remember the exact timeframe) and that was even after I'd actually paid off the entire balance, eventually held by Wescott.

Creditors are odd creatures in that they all do different - some folks find they get early defaults and others don't (from when its the same company). Halifax was my challenge - they didn't default us until around 18mths to 2 years into the DMP despite my best efforts. I wrote letters to explain my position and that by not defaulting me they were not treating me fairly -but they still wouldn't budget. This went on for more than a year. As I've already mentioned, eventually they passed the debt over to Wescott and I just accepted that the 'D' would stay on my file longer than it should.

Then one day I decided to have another go- not sure why at the time, but I wrote a long letter to the Managing Director saying how unfair I felt the situation was etc... blah... blah and out of the blue this guy called me. He was Head of Collections / Recoveries or something like that and after about 10 mins of chatting through my complaint he just said he would arrange for the default to be backdated. I was gobsmacked to be honest and didn't believe him, but lo and behold the next update on my credit file showed the D have been completely removed. So he didn't just backdate, its as if it didn't exist - go figure.

The moral of the story is that everyone will have different experiences and so the best advice I can offer is that you'll lose nothing by trying

Thats good to hear, thanks for the advice.

Many thanks to everyone who has replied, I'm composing my letters today. Time will tell

Skoots1710 · 3 May 2018 at 9:39PM

Hey all,

Just wanted to say thanks for the advice. I posted letters on Monday to Lloyds and Halifax, within two days they had both called and agreed to back date the Defaults to 2014. Both gave me compensation of £100 and £75 even though I told them I didn't want it, but they were quite insistent.

They did both push it to the max 6 months from setting up the DMP. I thought afterwards if I'd been a little firmer they may have gone back 3 more months. Anyway I was just so pleased that they have backdated them from 2016 and 2018.

So 2 years from now I will have no Defaults on my file and if they accept my full and final payment offers, which I'm about to send out, then I will be totally debt free very soon

Many thanks again

Tmp, Defaults and Full and Final Settlement advice please.

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