Your views and questions.

Moderators: TalbotWoods, JaneClack

By Budzie19
#300953 Hi folks,

I'm after a bit of advice really.

I have been paying into my dmp with PayPlan for about 6 years now where I am slowly but surely chipping away at the amount I owe.

I think the service I have from payplan is great by the way!

My questions being is that on my credit file I have 3 default notices to which I am paying through the dmp. All 3 dates are different which I thought I started at the same time, is this right.

Also though should theses as defaults even though I have been paying an agreed amount of money back to them each month.

Final question being is that I have asked for a settlement figure. This turned out to be more than we thought so will ask for a part settlement figure to try and clear the money. Would this harm my credit score even more?

Apologies for the long winded topic and hopefully I've put this in the right sections!

Many thanks
User avatar
By JaneClack
#300973 You are not paying the full amount so you have defaulted and the earlier the better the defaults go on the credit file, the better as they fall off after 6 years. A creditor can issue a default notice any time after warning you that you have fourteen days to repair the "breach" ie pay off arrears. Those letters will have come ages ago and then they put on the default when and if they want.

Anything that goes on your credit file will sit for 6 years - even a part settlement.

What I can tell you is that a few months before your DMP is due to finish your case officers will ask your creditors for settlement figures - and you can ask them to ask creditors again re freezing interest and charges as you have been showing commitment to repaying the dbt. Anyway to go back to the original sentence of this paragraph - if they discover interest and charges have increased some of the debts, they will negotiate for settlement figures as you have been paying the debt back over a considerable period of time by asking them now to remove the interest.
By Budzie19
#301023 Thanks for the reply Sarah, much appreciated.

One other question if you can help? Since paying into my DMP I have moved address and always kept PP up to date of where I am living.
The one default account which has the later date of default by 4 years than the other two, hasnt to my knowledge sent any documentation to myself saying that I would be defaulting. I thought that this was something that they had to do?

Thanks again
User avatar
By JaneClack
#301043 They may have sent a letter many moons ago saying if you did not remedy the breach within 14 days they may issue a default notice - it just took them ages to do it!
By nigpet
#301063 If you get an settlement figure of, say £5000 on an amount owed of £10000 & you can pay it off, does this always appear on CRFs as part settled or as fully settled? Does the part settlement then stay for 6 years & does it count against you in future credit scoring?
User avatar
By TalbotWoods
#301083 Slightly different view to Sarah's though

The ICO now permits partial settlement to be used on all settlements that are not fully paid off, and they actually recommend that marker is used as it actually reflects the true circumstances.

If the account was previously defaulted then the account will drop off the CRF 6 years from the date of the default, irrespective of if the account is marked satisfied or not. In fact is is possible for a account in a DMP once defaulted to actually drop off the CRF after six years, even though you are still paying the account!

But as Sarah says the partial settlement can reduce your credit score, but it will still be better than an unsettled account
By Budzie19
#301173 Thanks for the replies, much appreciated.

Just a little miffed that one of the account default dates, which says on my credit file as 2010 when the debt was past on in 2006/07 to a collection agency.

Im Not trying to get out of paying money as I believe you need to stand up when you make mistakes and admitt fault, but
Like I said its just the date that baffles me.
By red24
#302273 Seems youre in a similiar position to me although Ive been chipping away a little longer.
All your accounts will eventually, after the 6 years, disappear off your CRF and then it will be as clean as a whistle, like mine, very very clean and probably an obstacle in obtaining credit again.

This doesnt bother me at all as I never will want credit again, it bothers me that Orange, mobile phone account, shows on my CRF as a debt, but thats the only debt I have.

Your file will look the same after your 6 years, so happy days.