DMP, defaults, CCJs and more :)

[blahblahblacksheep]

Hi all,

Looking at getting some advice.

I'm currently on a DMP which has a few years left to run. All the debts on my DMP defaulted and they have all fallen off my reports (apart from one settled default which will fall off on the 31st July).

First question - will/can these debt collection agencies (I think they're all with DCAs apart from one - Capital One still seem to have the original debt) apply for a CCJ? I've made the agreed payments for a number of years now and will be gutted if they turn round and take me to court for a CCJ. I'm still paying the DMP obviously even though they've fallen off my record, I'm aware that I still owe the debt.

My family have offered some money - not enough to pay everything off but maybe a couple of the debts - would it be wise to contact a couple of the smaller ones to offer a full and final settlement figure? That way if these are paid off, there's more money going to the larger ones that I can't get a lump sum for?

I think my main concern at the moment is the CCJ and whether they're likely to go down that route?

Thanks

[stevemLS]

Re: DMP, defaults, CCJs and more

Hi and welcome.

Unfortunately they can apply for a CCJ at any time and they have six years from the last date a payment is made, which in your case will restart each time you make a payment under the DMP.

I believe it is a condition of most DMPs that you must not treat any creditor more favourably than the others, making F&F offers to the smaller ones might get you in trouble. Speak to your DMP provider (I hope it isn't one of the fee charging ones).

[blahblahblacksheep]

Re: DMP, defaults, CCJs and more

Hi and welcome.

Unfortunately they can apply for a CCJ at any time and they have six years from the last date a payment is made, which in your case will restart each time you make a payment under the DMP.

I believe it is a condition of most DMPs that you must not treat any creditor more favourably than the others, making F&F offers to the smaller ones might get you in trouble. Speak to your DMP provider (I hope it isn't one of the fee charging ones).

Thank you - that's really annoying I'll just have to hope to hell that they don't as I'm hoping to get a mortgage in a couple of years and a CCJ now would really muck that up especially as I've had a bad credit report for 6 years. Is it worth when this last default goes to maybe look at getting a F&F offers for ALL my outstanding debts and seeing if I can get a consolidation loan as my credit rating will have improved?

I'm with StepChange so no, not using a fee charging one, thankfully.

[blahblahblacksheep]

Re: DMP, defaults, CCJs and more

Just wondering if anyone has any opinions on getting a consolidation loan (if I'm able) to pay off all those on my DMP - good idea or rubbish one?

[FlamingParrot]

Re: DMP, defaults, CCJs and more

Just wondering if anyone has any opinions on getting a consolidation loan (if I'm able) to pay off all those on my DMP - good idea or rubbish one?

Personally I wouldn't suggest getting into more debt to repay old debts. For starters, your old debts are now off your credit files, if at some point you find yourself not able to pay this new loan, you'd have a fresh default and possibly even legal action. Your old debts are probable not all enforceable and they would have been sold for peanuts to debt purchasers.

One thing I would probably do is send CCA requests to your creditors instead, and see what they come up with. Knowing what set of paperwork they can produce (if any) should help you establish who to settle with via F&Fs and could also help negotiate a lower figure.

[blahblahblacksheep]

Re: DMP, defaults, CCJs and more

Personally I wouldn't suggest getting into more debt to repay old debts. For starters, your old debts are now off your credit files, if at some point you find yourself not able to pay this new loan, you'd have a fresh default and possibly even legal action. Your old debts are probable not all enforceable and they would have been sold for peanuts to debt purchasers.

One thing I would probably do is send CCA requests to your creditors instead, and see what they come up with. Knowing what set of paperwork they can produce (if any) should help you establish who to settle with via F&Fs and could also help negotiate a lower figure.

Thank you for taking the time to reply and for your advice

I'll do the CCA bit - I'm guessing that if they come back with no paperwork to show, I can go in with a low settlement figure? Am I best to offer something or is it best to let them tell me what their lowest figure is?

[nemesis45]

Re: DMP, defaults, CCJs and more

Just wondering if anyone has any opinions on getting a consolidation loan (if I'm able) to pay off all those on my DMP - good idea or rubbish one?

Never a good idea to pay one debt with another it becomes a vicious circle just like the payday loans.
I'm sorry to say that even if this and the other debts were paid off they will still have a major impact on mortgage application, the questionnaires now used in mortgage applications are intrusive in the extreme and all will have to come out.

nem

[blahblahblacksheep]

Re: DMP, defaults, CCJs and more

Can I ask how they will have a major impact on a mortgage application if they were paid off? What questions are asked?

[FlamingParrot]

Re: DMP, defaults, CCJs and more

Thank you for taking the time to reply and for your advice

I'll do the CCA bit - I'm guessing that if they come back with no paperwork to show, I can go in with a low settlement figure? Am I best to offer something or is it best to let them tell me what their lowest figure is?

If you have several debts, you should be able to make a more informed decision based on whatever documents they send you (or not as the case may be). You may even be able to stop paying some which may be unenforceable in court and concentrate your limited funds on the others. Impossible to say any more until you've received their responses, which, despite the legally stipulated 12 + 2 working days, will invariably take much longer than that.

You would put forward an offer to them rather than ask them what their lowest figure is, which will always be much higher than anything you should be offering, if you see what mean. Acceptance would also depend on how much they are getting through your DMP, if you are paying only tokens or small amounts that will take a lifetime to clear the debt, they may be happier with a smaller lump sum than if you are making substantial payments every month. Do post up before you make any settlement offers. :typing:

[nemesis45]

Re: DMP, defaults, CCJs and more

Can I ask how they will have a major impact on a mortgage application if they were paid off? What questions are asked?

The questionnaires brought in after the subprime mortgage scandal, went deeper into the credit history of mortgage applicants, and these are constantly being update one I have seen recently when helping a family member(s) mortgage app ask for 5 years credit history for both applicants for a joint mortgage it even asks how many times a week do you eat out, do you have gym memberships,
how many holidays do you take, what do you spend on hobbies, weekly/monthly outgoings e.g shopping for clothes /food.
One of the latest questions is " will you still be able to afford the payments if the interest rate rises in 6 months time.
All the statements are checked which has considerably lengthened the time for an application to be approved/declined.

nem

[blahblahblacksheep]

Re: DMP, defaults, CCJs and more

None of the debts that I'm paying off currently appear on my credit record they're all defaulted over 6 years ago (bar one that comes off tomorrow! yeah!)- if I pay them off just now and apply for a mortgage in two years, would they ever know that these debts even existed? Is it 6 months worth of bank statements that they request?

thank you for your help and insight into mortgages!

[jon1965]

Re: DMP, defaults, CCJs and more

Now that the accounts have fallen off your credit file you could send off the CA requests, some may come back with good agreements some might not be able to find them . I would not offer a settlement figure to any that couldn't comply . Depending on how much you are paying you may well have already paid off as much as the debt purchasers paid for the debt so If you wanted to go in with full and finals go for silly amounts like 10%. Another way is offer them all a pro rata amount so they know they are all been treated the same

[FlamingParrot]

Re: DMP, defaults, CCJs and more

None of the debts that I'm paying off currently appear on my credit record they're all defaulted over 6 years ago (bar one that comes off tomorrow! yeah!)- if I pay them off just now and apply for a mortgage in two years, would they ever know that these debts even existed? Is it 6 months worth of bank statements that they request?

thank you for your help and insight into mortgages!

There would be no way to find out whether they were paid off or not if they are not on your credit report, however, internal records can be kept for as long as they want. If you applied for a mortgage with a bank that you'd previously defaulted with, they may or may not have a record of your old account. I know someone who was refused a mobile contract because they'd defaulted on a contract with the same company 11 years earlier and they still had the records.

Mortgage lending criteria varies from lender to lender and is subject to change at any time as are the questions they ask and documents they request, and it's also influenced by LTV. The higher the percentage of the property value you want to borrow, the more they will want to dig into your finances.

[blahblahblacksheep]

Re: DMP, defaults, CCJs and more

There would be no way to find out whether they were paid off or not if they are not on your credit report, however, internal records can be kept for as long as they want. If you applied for a mortgage with a bank that you'd previously defaulted with, they may or may not have a record of your old account. I know someone who was refused a mobile contract because they'd defaulted on a contract with the same company 11 years earlier and they still had the records.

Mortgage lending criteria varies from lender to lender and is subject to change at any time as are the questions they ask and documents they request, and it's also influenced by LTV. The higher the percentage of the property value you want to borrow, the more they will want to dig into your finances.

Ah I see what you mean - I've never had a mortgage before but I have a default debt with Lloyds (overdraft), so even if I pay that off they might keep a record so I am I best not going to them for a mortgage application (my other debts are credit cards - capital one, aqua - I know, I know!! lol) and catalogue, so I don't really have any other debts that are associated with a bank (though I know some of these cards are associated with certain banks - I guess I should just be careful who I apply to when making an application?)

Thanks again

[FlamingParrot]

Re: DMP, defaults, CCJs and more

When you send a SAR requesting all your statements, etc. many banks will argue they do not hold data older than six years, however, there is no guarantee that they won't. There is no law that says they cannot hold older data or use it to make a business decision if they have it.