On the Precipice of freedom!

Lee_Walker · 17 July 2018 at 11:54AM

Good morning all you lovely people.

I am in the fortunate position of having come into a lump sum of money that I can offer to my creditors to finally become debt free.

I have had a DMP with PayPlan since May 2009, in which time I have paid around £15,000 back, with £5,000 to go.

What I was hoping to find out was, if I pay the full amount to all creditors, will that mean that they will all show as paid and settled on my credit file and I can begin the repair job?

I was toying with offering £3000, but PayPlan let me know that a) there are several creditors they know will only accept the full amount (2 x that are under £1000 and typically 2 x that are for the most!) and also that it will be marked as part paid on my file and last for 6 years.

If that is the case, I think I would rather pay the full amount, but obviously I would prefer not to pay more than I have to!

Any advice greatly received, I just want this over with for a fresh start and a debit card on my bank account (the simple things!).

Thanks,

Lee

National_Debtline · 17 July 2018 at 12:11PM

Hi Lee

Great news that you are so close to being debt free. It is correct that if you make a full & final settlement your debts will be shown as partially satisfied, and if you pay the full balance they will show as fully satisfied.

The debt will remain on your credit file for 6 years from the date the account was closed UNLESS a default has already been registered. In that situation the debt is removed 6 years after the date of the default, and you may find it has already been removed from your credit file.

If the debt has already been removed it will make no difference if you now make a full & final settlement. Next step is to have a look at what your credit file is showing.

Best wishes

Susie
@natdebtline

Lee_Walker · 17 July 2018 at 12:20PM

Thank you.

The only one that shows on my file is my Barclaycard (I assume all others have dropped off).

It seems Barclaycard are showing a default every month since Jan 2015. As such I expect this will stay on my file for 6 years, which is rather annoying! They had been marking it as an arranged payment, but changed to default for some reason, despite the same payment plan being in place.

National_Debtline · 17 July 2018 at 12:37PM

Hi again Lee

It sounds like all the other debts had a default that was more than 6 years old and that was why they are no longer showing.

Did anything happen in 2015 with the Barclaycard? For example was it sold on to a debt collection agency (DCA)? If so, that could explain why the default was only added then.

If the debt is still with Barclaycard you might be able to try and make a complaint to get the default date moved. A default should be added in a timely manner, usually once arrears are between 3 to 6 months. A creditor can choose to show an arrangement in place instead, but if that remained in place you may be able to argue that it was unreasonable to add the default in 2015. Unfortunately the debt won't be removed until 2021 as it stands.

You can raise a complaint with Barclaycard first and if you are unhappy with their response contact the Information Commissioner's Office (www.ico.org.uk) and the Financial Ombudsman Service (www.fos.org.uk).

Susie
@natdebtline

January2015 · 17 July 2018 at 2:02PM

Lee_Walker wrote: »

Thank you.

The only one that shows on my file is my Barclaycard (I assume all others have dropped off).

It seems Barclaycard are showing a default every month since Jan 2015. As such I expect this will stay on my file for 6 years, which is rather annoying! They had been marking it as an arranged payment, but changed to default for some reason, despite the same payment plan being in place.

You could try writing to BC and stating you feel they have treated you unfairly because you have made an effort to pay your debts. If you had made no payments they would have defaulted within months and this would have gone from their credit reference file after sixe years. However, because you were being responsible and dealing with your debts they are penalising you by not marking a default in a timely manner and hence the poor credit file markers are staying with you far longer than if you had just never paid them.

I did this and they back-dated my defaults on two accounts. They don't have to, and others have tried with no success.... it seems to be pot luck who opens your letter and makes a decision. However, you have nothing to lose from trying.

Lee_Walker · 17 July 2018 at 2:07PM

Thank you,

I will write a letter to them explaining the situation.

Thanks for the help.

On the Precipice of freedom!

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