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  • FIRST POST
    • The_Analyst
    • By The_Analyst 13th Oct 17, 10:48 AM
    • 47Posts
    • 40Thanks
    The_Analyst
    Loan Advice
    • #1
    • 13th Oct 17, 10:48 AM
    Loan Advice 13th Oct 17 at 10:48 AM
    So, I’m after some advice. After 5 years in a DMP I switched to direct payments with my creditors (my DMP Company ceased trading) and managed to set up a reasonable plan whereby I would be debt-free in 29 months.

    I’m 13 months into that plan and have seen £9.5k of the £23k cleared and am starting to see the light at the end of the tunnel.

    Back in 2011 when we took out the DMP we have close to £50k of debt so it feels like a long journey, but the finishing line is in sight.
    Naturally, with a DMP and now direct payments, my credit score was destroyed, but as we get closer to that magic 6 years since default, my expectation is that my rating will start to rise.

    So, I took out a free trial with Experian to get the full landscape of how my credit score looks and to get a handle on what the default dates are for each of the 7 creditors we have.

    Upon looking at the report, we have 5 defaulted accounts with a default date between Feb and June of 2012 which stacks up, but we have 2 accounts that are listed as “Delinquent” and “Arrangement” that do not have a Default Date.

    So, what is the difference with these accounts? They are with the same creditor as some of the defaulted accounts but appear to have been set up differently. Am I right in thinking they will stay on my Credit File until paid off, even if the original “default” was 6 years ago? Should I be looking to clear these 2 accounts before I do anything else?

    Just to be clear, it is 100% my intention to settle all the accounts (and am doing so with the Managed Payments) and I have no desire to take on any more credit – although we would like to move house in the next 18 months or so. I just want to improve my Credit Score because it feels like the right thing to do.

    Should I:

    1) Continue with the managed payments on all 7 accounts, arriving debt free by Jan 2019 (5 defaults will have cleared by Jun 2018)
    2) Look to settle the 2 accounts that are “delinquent” whilst maintaining the Managed Payments on the other 5

    All advice welcome
    July 2011 - Total Debts £47,359.19
    July 2013 - Total Debts £36,092.19
    July 2015 - Total Debts £28,068.19
    July 2017 - Total Debts £15,806.26

    Jun 2018 - Total Debts £6,215.84
    Jan 2019 - Total Debts £0
Page 1
    • StopIt
    • By StopIt 13th Oct 17, 11:13 AM
    • 1,394 Posts
    • 1,250 Thanks
    StopIt
    • #2
    • 13th Oct 17, 11:13 AM
    • #2
    • 13th Oct 17, 11:13 AM
    It is worse than that.


    Any account flagged as AR, or Delinquent stay on your account for 6 years AFTER you close the accounts. So the flags will stay until 2025 if you pay them off as per option 1.


    You need to write to the creditors involved, asking to change the markers to a default at the same time frame as your other defaults. if they do not do this, complain to the ICO. They have a patchy record on this, however.


    In your letters to the creditors, state that an AR flag (Or delinquency) is not actually preferable due to the longer term damage than a default in your circumstances.


    However, if you have no need for credit, then it's not the end of the world!
    • The_Analyst
    • By The_Analyst 13th Oct 17, 11:18 AM
    • 47 Posts
    • 40 Thanks
    The_Analyst
    • #3
    • 13th Oct 17, 11:18 AM
    • #3
    • 13th Oct 17, 11:18 AM
    It is worse than that.


    Any account flagged as AR, or Delinquent stay on your account for 6 years AFTER you close the accounts. So the flags will stay until 2025 if you pay them off as per option 1.


    You need to write to the creditors involved, asking to change the markers to a default at the same time frame as your other defaults. if they do not do this, complain to the ICO. They have a patchy record on this, however.


    In your letters to the creditors, state that an AR flag (Or delinquency) is not actually preferable due to the longer term damage than a default in your circumstances.


    However, if you have no need for credit, then it's not the end of the world!
    Originally posted by StopIt
    I feared that that might be the case. I should have acted sooner. No idea why the creditor would choose to mark one account as Defaulted and the other as delinquent.
    We have no real need for credit other than the mortgage I spoke of. I can go down the sub-prime route for that though if I must. By the time we look to move we will each have 1 default (assuming I can get the creditor to change from delinquent to default) so it might not look too bad.....
    July 2011 - Total Debts £47,359.19
    July 2013 - Total Debts £36,092.19
    July 2015 - Total Debts £28,068.19
    July 2017 - Total Debts £15,806.26

    Jun 2018 - Total Debts £6,215.84
    Jan 2019 - Total Debts £0
    • StopIt
    • By StopIt 13th Oct 17, 11:25 AM
    • 1,394 Posts
    • 1,250 Thanks
    StopIt
    • #4
    • 13th Oct 17, 11:25 AM
    • #4
    • 13th Oct 17, 11:25 AM
    I feared that that might be the case. I should have acted sooner. No idea why the creditor would choose to mark one account as Defaulted and the other as delinquent.
    We have no real need for credit other than the mortgage I spoke of. I can go down the sub-prime route for that though if I must. By the time we look to move we will each have 1 default (assuming I can get the creditor to change from delinquent to default) so it might not look too bad.....
    Originally posted by The_Analyst

    If a lender has defaulted one of your accounts but not another, complain as that's unfair treatment.


    That'll leave one AR account and they if they refuse to get rid of it, time will help, but hopefully they'll sort it. Remember to get them to backdate the default so it'll leave your history in the same time frame as the others.
    • The_Analyst
    • By The_Analyst 13th Oct 17, 11:43 AM
    • 47 Posts
    • 40 Thanks
    The_Analyst
    • #5
    • 13th Oct 17, 11:43 AM
    • #5
    • 13th Oct 17, 11:43 AM
    If a lender has defaulted one of your accounts but not another, complain as that's unfair treatment.


    That'll leave one AR account and they if they refuse to get rid of it, time will help, but hopefully they'll sort it. Remember to get them to backdate the default so it'll leave your history in the same time frame as the others.
    Originally posted by StopIt
    Thanks for the advice. I've just put letters in the post to that effect. Ultimately I just want to get debt free and it feels like we're nearly there. I don't want something hanging over my head until 2025 though!!
    July 2011 - Total Debts £47,359.19
    July 2013 - Total Debts £36,092.19
    July 2015 - Total Debts £28,068.19
    July 2017 - Total Debts £15,806.26

    Jun 2018 - Total Debts £6,215.84
    Jan 2019 - Total Debts £0
    • The_Analyst
    • By The_Analyst 30th Dec 17, 12:04 PM
    • 47 Posts
    • 40 Thanks
    The_Analyst
    • #6
    • 30th Dec 17, 12:04 PM
    • #6
    • 30th Dec 17, 12:04 PM
    If a lender has defaulted one of your accounts but not another, complain as that's unfair treatment.


    That'll leave one AR account and they if they refuse to get rid of it, time will help, but hopefully they'll sort it. Remember to get them to backdate the default so it'll leave your history in the same time frame as the others.
    Originally posted by StopIt
    Got letters today confirming they had (as a gesture of goodwill) reverted my delinquent accounts to defaulted accounts with the original date from 2012. Thanks so much for the advice
    July 2011 - Total Debts £47,359.19
    July 2013 - Total Debts £36,092.19
    July 2015 - Total Debts £28,068.19
    July 2017 - Total Debts £15,806.26

    Jun 2018 - Total Debts £6,215.84
    Jan 2019 - Total Debts £0
    • The_Analyst
    • By The_Analyst 9th Jan 18, 9:59 AM
    • 47 Posts
    • 40 Thanks
    The_Analyst
    • #7
    • 9th Jan 18, 9:59 AM
    • #7
    • 9th Jan 18, 9:59 AM
    Got letters today confirming they had (as a gesture of goodwill) reverted my delinquent accounts to defaulted accounts with the original date from 2012. Thanks so much for the advice
    Originally posted by The_Analyst
    Just an addendum to this. My wife's credit score has jumped overnight from 'Very Poor' to 'Fair' and once the last remaining defaults drop off her account at end of Feb I'm expecting another increase.

    My file hasn't been amended yet, so issued another letter (on review, it appeared they sent me 2 different letters about my wife's account and nothing on mine.) That said, they've set the precedent now so I'm not anticipating any issues getting the Late Payment removed from my file).

    Next stop is to ask Barclaycard why they added a default in June 2015 when I stopped paying the min amount in Jun 2012!
    July 2011 - Total Debts £47,359.19
    July 2013 - Total Debts £36,092.19
    July 2015 - Total Debts £28,068.19
    July 2017 - Total Debts £15,806.26

    Jun 2018 - Total Debts £6,215.84
    Jan 2019 - Total Debts £0
    • The_Analyst
    • By The_Analyst 24th Jan 18, 12:50 PM
    • 47 Posts
    • 40 Thanks
    The_Analyst
    • #8
    • 24th Jan 18, 12:50 PM
    • #8
    • 24th Jan 18, 12:50 PM
    If a lender has defaulted one of your accounts but not another, complain as that's unfair treatment.


    That'll leave one AR account and they if they refuse to get rid of it, time will help, but hopefully they'll sort it. Remember to get them to backdate the default so it'll leave your history in the same time frame as the others.
    Originally posted by StopIt
    So, it turns out that the AR/Delinquent is the correct status (according to IDEM) as the account never defaulted, but as a 'gesture of goodwill' they removed the entry from my wife's credit file but are now dragging their feet regarding mine. I've made an official complaint now and have mentioned escalating to the Ombudsman if they don't treat me in the same way they have my wife - odd that they would do this gesture of goodwill for her and not me. The saga continues........
    July 2011 - Total Debts £47,359.19
    July 2013 - Total Debts £36,092.19
    July 2015 - Total Debts £28,068.19
    July 2017 - Total Debts £15,806.26

    Jun 2018 - Total Debts £6,215.84
    Jan 2019 - Total Debts £0
    • The_Analyst
    • By The_Analyst 30th Jan 18, 7:05 PM
    • 47 Posts
    • 40 Thanks
    The_Analyst
    • #9
    • 30th Jan 18, 7:05 PM
    • #9
    • 30th Jan 18, 7:05 PM
    So, it turns out that the AR/Delinquent is the correct status (according to IDEM) as the account never defaulted, but as a 'gesture of goodwill' they removed the entry from my wife's credit file but are now dragging their feet regarding mine. I've made an official complaint now and have mentioned escalating to the Ombudsman if they don't treat me in the same way they have my wife - odd that they would do this gesture of goodwill for her and not me. The saga continues........
    Originally posted by The_Analyst
    Looks like my perseverance has paid off. Checked my credit file today any my score has jumped 250 points and the AR entry has been removed.
    July 2011 - Total Debts £47,359.19
    July 2013 - Total Debts £36,092.19
    July 2015 - Total Debts £28,068.19
    July 2017 - Total Debts £15,806.26

    Jun 2018 - Total Debts £6,215.84
    Jan 2019 - Total Debts £0
    • Pixie5740
    • By Pixie5740 30th Jan 18, 8:16 PM
    • 12,173 Posts
    • 17,195 Thanks
    Pixie5740
    It's great that you managed to get the account registered as a default rather than delinquent but don't get too hung up on your credit score. There's no such thing as a universal credit score. The credit reference agencies don't lend money and lenders don't use the credit scores generated by the credit reference agencies. It's your credit history that lenders use so it's important that the information in your credit history is correct.
    • The_Analyst
    • By The_Analyst 30th Jan 18, 9:19 PM
    • 47 Posts
    • 40 Thanks
    The_Analyst
    It's great that you managed to get the account registered as a default rather than delinquent but don't get too hung up on your credit score. There's no such thing as a universal credit score. The credit reference agencies don't lend money and lenders don't use the credit scores generated by the credit reference agencies. It's your credit history that lenders use so it's important that the information in your credit history is correct.
    Originally posted by Pixie5740
    Indeed, but a credit file with no defaults (as mine will be by March 1st) is better than a credit file with a delinquent payment on it
    July 2011 - Total Debts £47,359.19
    July 2013 - Total Debts £36,092.19
    July 2015 - Total Debts £28,068.19
    July 2017 - Total Debts £15,806.26

    Jun 2018 - Total Debts £6,215.84
    Jan 2019 - Total Debts £0
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