IDEM settlement advice

[choppa03]

Sorry if this has been asked before, am new to the site.

I am currently attempting to offer a full & final settlement to Idem Servicing for a loan with a current balance of £14k, which they have had for well over 7 years that is currently in a debt management plan with Stepchange (has been for the whole 7 years).

A family member has offered to help me settle this as its negatively impacting my credit report so I cannot get a mortgage. Idem are reporting the account a late payment (Red 6) each month even though they have accepted the DMP. I have several other creditors of similar amounts and age none of these now appear on my credit report but are still in the DMP. Credit Expert advised its up to the creditor how they report this information but it seems very unfair?

I offered to pay IDEM a increased monthly payment of around £240 a month which was the agreed loan repayment when I took it out many years ago (currently in the DMP its £60). They said that it would have no positive impact on my credit report and they will still remain to show its a missed payments until the whole balance is settled.

I have further offered a settlement figure of £5k and then £7.2k both which have been declined.

Any advice on whether I should increase this offer?
They have also said that if they accept the offer it will show as a 'settled' account on my credit file. Does anyone know how this will affect my credit score?

My main aim is to improve to my credit score to be able to get a mortgage in a year or so. Any advice would be appreciated.

Thanks
:reindeer:

[nemesis45]

Re: IDEM settlement advice

Good evening.
Do you know how much you have paid so far, are you receiving a statement at least once a year?
Just before we go further it will take far longer than year to build up a credit profile sufficient to
support a mortgage application.
The ICO governs how debts are reported to credit reference agencies, and any partial payment of a defaulted
debt will be marked " Partially Satisfied " not settled which applies to accounts such as loans paid off in full within
the normal progress of the account.
All defaulted debts are removed from credit files after 6 years from the default date Paid or Not.
So from what you say about 7 years of payments via the DMP this should no longer show on credit
files anyway, you urgently need to know if and when this account was defaulted.

nem

[choppa03]

Re: IDEM settlement advice

I can find out how much I have paid but a quick estimate would be about £3.5-4k over the past 7 years. I will need to check the date IDEM took over loan but am sure its the whole time i have been in a DMP. On my credit report is says account started March 2005.

I don't think they defaulted the account as its not showing as a default on my credit report. It just shows as in arrears (credit expert show it as delinquent) in red 6 each month, indicating I am at least 6 payments behind the agreed payments of the original loan. It shows like this for the past few years. Which seems strange as they have always accepted the lower payment in the DMP. Other creditors show the DMP amounts on my credit file and do not report it negatively.
Other debts I have had defaults on have dropped off my reports after 6 years even when I still had balances on.

If this is the case can they continue to report my account like this until the whole balance is paid off? Paying it by DMP is going to take another 20 years hence why I was trying to get it sorted.

The person I spoke to at Credit expert said it was very unfair that they were reporting it like that and sent a query on my behalf 6 months ago. They just replied saying that's how they report it and it was left at that.

Good evening.
Do you know how much you have paid so far, are you receiving a statement at least once a year?
Just before we go further it will take far longer than year to build up a credit profile sufficient to
support a mortgage application.
The ICO governs how debts are reported to credit reference agencies, and any partial payment of a defaulted
debt will be marked " Partially Satisfied " not settled which applies to accounts such as loans paid off in full within
the normal progress of the account.
All defaulted debts are removed from credit files after 6 years from the default date Paid or Not.
So from what you say about 7 years of payments via the DMP this should no longer show on credit
files anyway, you urgently need to know if and when this account was defaulted.

nem

[choppa03]

Re: IDEM settlement advice

Update: just checked paperwork

Original loan with Lombard direct March 2005 £12k
DMP started in 2006 around £50-£80 a month for a few years
Lombard sent a letter in 2009 - notice of arrears
Debt transferred to Moorcroft 2007 balance £17k
Debt transferred to Arden - not sure of balance
Debt transferred to Idem around 2012 - balance around £15.5k

So 10 years on I still owe £14k on a £12k loan I have been paying each month in the region of £6k over the years. Never defaulted.
Seems extremely unfair somewhere along the way!!

I can find out how much I have paid but a quick estimate would be about £3.5-4k over the past 7 years. I will need to check the date IDEM took over loan but am sure its the whole time i have been in a DMP. On my credit report is says account started March 2005.

I don't think they defaulted the account as its not showing as a default on my credit report. It just shows as in arrears (credit expert show it as delinquent) in red 6 each month, indicating I am at least 6 payments behind the agreed payments of the original loan. It shows like this for the past few years. Which seems strange as they have always accepted the lower payment in the DMP. Other creditors show the DMP amounts on my credit file and do not report it negatively.
Other debts I have had defaults on have dropped off my reports after 6 years even when I still had balances on.

If this is the case can they continue to report my account like this until the whole balance is paid off? Paying it by DMP is going to take another 20 years hence why I was trying to get it sorted.

The person I spoke to at Credit expert said it was very unfair that they were reporting it like that and sent a query on my behalf 6 months ago. They just replied saying that's how they report it and it was left at that.

[nemesis45]

Re: IDEM settlement advice

I can find out how much I have paid but a quick estimate would be about £3.5-4k over the past 7 years. I will need to check the date IDEM took over loan but am sure its the whole time i have been in a DMP. On my credit report is says account started March 2005.

I don't think they defaulted the account as its not showing as a default on my credit report. It just shows as in arrears (credit expert show it as delinquent) in red 6 each month, indicating I am at least 6 payments behind the agreed payments of the original loan. It shows like this for the past few years. Which seems strange as they have always accepted the lower payment in the DMP. Other creditors show the DMP amounts on my credit file and do not report it negatively.
Other debts I have had defaults on have dropped off my reports after 6 years even when I still had balances on.

If this is the case can they continue to report my account like this until the whole balance is paid off? Paying it by DMP is going to take another 20 years hence why I was trying to get it sorted.

The person I spoke to at Credit expert said it was very unfair that they were reporting it like that and sent a query on my behalf 6 months ago. They just replied saying that's how they report it and it was left at that.

Good morning,

I think you should make a Formal Complaint to the original lender for the following reason (s).

1. The account should have been defaulted when it was entered into a DMP.

2. There is another stage when a default should have been placed i.e. when the debt was sold.

3. Failure to default the account has left you at a distinct disadvantage as compared to a debtor
who has made no effort to repay a debt, yet has the defaulted account removed from credit files
after 6 years paid or not.
This is also a matter in which the Information Commissioners Office should be involved.

nem