Default payment on my credit file.

[Ipickard76]

Hi I don't know of you can help me with some advice I took out a payday loan with pounds to pocket and agreed to pay x amount a month. They took the amount out of my account each month. After 3 months of taking out the money at the end of each month they did not take the money on the agreed date instead they took it out in 3 small payments 3 days later despite the money being in my bank account. The following month they took the full amount out of my account. The next two month's they did not take any money out of my acount and issued a default against me. They then passed on my details to another company and asked me to pay the full amount in 14 days. I passed on the information to the company who in the previous month I'd taken out a debt management plan who told me not to contact the original company and that all enquiries should go through them and not pounds to pocket.

When I contacted the debt management company they set up a new payment plan and they have paid the company in question the 2 months payments on time each month even though the company are telling me it was not paid. I have bank statements to prove that the debt management company took the relevent money from me.

Please can you clarify when a default can be issued, I was led to believe it is after 3 missed payments? is this correct.

Kind Regards

Is the default correct or incorrect. Please help me.

[Debt Camel]

Re: Default payment on my credit file.

A default can be issued when you are 3-6 months in arrears.

Unless your debt management company (who is it?) are paying Pounds to Pocket the full amount each month (which would be unusual) you must be at least 3 months behind by now. So although PtP may have issued the default too early it's not likely to do you much good to challenge it.

There is one possibility - if you can win an affordability claim against PTP they may have to delete the whole debt from your credit record. Read http://debtcamel.co.uk/payday-loan-refunds/ - installment loans aren't the simplest cases to win, but it sounds a though your finances were probably in a mess when you took out the loan and if your credit record would have showed that, PTP should have noticed.

If you have had other payday loans, either with balances in your Current DMP or already paid off, you should also have a think about whther you could get a refund for any of those.

[Ipickard76]

Re: Default payment on my credit file.

It was DFH, but I'm confused. If I go through a debt management plan surely they must of agreed to accept the new figure agreed with DFH and as long as a payment went put each month to them it would not mean that I have missed a payment. My bank statement each month proves monet was paid to my debt management plan company therefore I have not missed any payments and does this not mean that I shouldn't have a default on my account.

[nemesis45]

Re: Default payment on my credit file.

Hi I don't know of you can help me with some advice I took out a payday loan with pounds to pocket and agreed to pay x amount a month. They took the amount out of my account each month. After 3 months of taking out the money at the end of each month they did not take the money on the agreed date instead they took it out in 3 small payments 3 days later despite the money being in my bank account. The following month they took the full amount out of my account. The next two month's they did not take any money out of my acount and issued a default against me. They then passed on my details to another company and asked me to pay the full amount in 14 days. I passed on the information to the company who in the previous month I'd taken out a debt management plan who told me not to contact the original company and that all enquiries should go through them and not pounds to pocket.

When I contacted the debt management company they set up a new payment plan and they have paid the company in question the 2 months payments on time each month even though the company are telling me it was not paid. I have bank statements to prove that the debt management company took the relevent money from me.

Please can you clarify when a default can be issued, I was led to believe it is after 3 missed payments? is this correct.

Kind Regards

Is the default correct or incorrect. Please help me.

The original agreement most probably states at what point the lender defaults delinquent accounts, e.g. some PDLC's default at the first missed payment.

Some as we see quite often either default immediately prior to selling the debt or sell the debt without defaulting.

Which company is now the owner of the debt? Sounds as if it could be MMF?

nem

[Debt Camel]

Re: Default payment on my credit file.

I'm confused. If I go through a debt management plan surely they must of agreed to accept the new figure agreed with DFH and as long as a payment went put each month to them it would not mean that I have missed a payment. My bank statement each month proves monet was paid to my debt management plan company therefore I have not missed any payments and does this not mean that I shouldn't have a default on my account.

No sorry, the "3-6 months in arrears" refers to arrears compared to what the normal debt repayments would have been.

It is common to get a default if you are in debt management unless you are paying large amounts every month. This article looks at how a DMP affects your credit file: http://debtcamel.co.uk/dmp-credit-rating/. You may well get more defaults added in the next few months.

DFH is a commercial debt management company. They take part of your monthly payments as fees every month. You should look at switching to StepChange who are a charity offering free DMPs so all your money goes to clear your debts each month. See https://www.stepchange.org/Howwecanh...ementplan.aspx. Apart from the fees, a StepChange DMP works in exactly the same way as your current DMO. Oh apart from the fact that StepChange would also have explained to you the potential impact of the DMP on your credit record, which your current firm obviously hasn't :tinysmile_cry_t:

[Ipickard76]

Re: Default payment on my credit file.

I spoke to PTP tonight and they have told me that the reason for me getting a default is because I went onto a DMP. I did not ask to pay a lower rate each month, plus If they didn't agree with me paying a new figure each month they could of said no. So they have put a default on my account all because I swapped from dealing with them directly and going through the debt management company. I have spoken to two different people, one tells me I got a default due to a miss payments and another one said it was due to going on to a debt management plan.

At the time of the contract being taken out with pounds to pocket I had £5000 credit card bill outstanding being paid out each month, a telephone bill being paid monthly, rent for £300 a month, and my monthly wage was £600. Yet they still agreed to lend me money, would I have a case to say that from looking at my credit file that they should not off agreed to lend he money. I have paid off all the debts at the moment but I'm not happy about have a default on my account for the next 4 years when all payments have been paid every month.

[Debt Camel]

Re: Default payment on my credit file.

I did not ask to pay a lower rate each month

That is what a DMP is... there is no way you can be in a DMP and make the normal payments to an installment payday loan, that doesn't make any sense.

How much did you borrow from PTP? what were your monthly repayments? look at what your other costs were: food, transport, any utilities?

[Ipickard76]

Re: Default payment on my credit file.

Borrowed £750 and had to pay back £1250 at £105.60 a month. My income was £650 a month. Food was £80 a month, transport £50 a month utilities were included in my £300 rent. I also had a payment going out monthly to my bank for £152.00 a month.

- - - Updated - - -

The reason the loan was taken was because I was off work for a month on statutory sick pay as I'd hurt my back and had no money to pay bills etc. This was told to PTP at the time.

[nemesis45]

Re: Default payment on my credit file.

I spoke to PTP tonight and they have told me that the reason for me getting a default is because I went onto a DMP. I did not ask to pay a lower rate each month, plus If they didn't agree with me paying a new figure each month they could of said no. So they have put a default on my account all because I swapped from dealing with them directly and going through the debt management company. I have spoken to two different people, one tells me I got a default due to a miss payments and another one said it was due to going on to a debt management plan.

At the time of the contract being taken out with pounds to pocket I had £5000 credit card bill outstanding being paid out each month, a telephone bill being paid monthly, rent for £300 a month, and my monthly wage was £600. Yet they still agreed to lend me money, would I have a case to say that from looking at my credit file that they should not off agreed to lend he money. I have paid off all the debts at the moment but I'm not happy about have a default on my account for the next 4 years when all payments have been paid every month.

Virtually all lenders from big banks to PDLC's default accounts when a DMP is set up quite correctly imo as making payments at a lower level than contractually required is a default. Missed payments are a valid reason to default an account.
I can see no realistic reason for the default to be removed.

Irresponsible lending could be a challenge to the original debt but should have been challenged earlier.

nem

[Ipickard76]

Re: Default payment on my credit file.

Thanks for your help, I wasn't aware about irresponsible lending until yesterday.

[Ipickard76]

Re: Default payment on my credit file.

Silly question do ptp have to tell me at the time I went to dmp about the default going on my file?

[Debt Camel]

Re: Default payment on my credit file.

Irresponsible lending could be a challenge to the original debt but should have been challenged earlier.

No, you have 6 years to complain about this to the Financial Ombudsman.

[Debt Camel]

Re: Default payment on my credit file.

Borrowed £750 and had to pay back £1250 at £105.60 a month. My income was £650 a month. Food was £80 a month, transport £50 a month utilities were included in my £300 rent. I also had a payment going out monthly to my bank for £152.00 a month.

- - - Updated - - -

The reason the loan was taken was because I was off work for a month on statutory sick pay as I'd hurt my back and had no money to pay bills etc. This was told to PTP at the time.

On SSP you would have had £88 a week - hard to se how you could repay the loan on that and how could you know how long you would be on SSP for? I think it's worth putting in an affordability complaint about this - 1 loan cases aren't easy to win but yours is possible.

[Ipickard76]

Re: Default payment on my credit file.

Debt Camel do you think it's worth doing?

[Debt Camel]

Re: Default payment on my credit file.

As I said before: I think it's worth putting in an affordability complaint about this - 1 loan cases aren't easy to win but yours is possible. Go in expecting nothing, all it takes is a bit of time. You may get a good result.