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  • #1

    Arrangement to Pay and default notices

    Hi Niddy
    Basically I've got alot of unsecured debt that I'm now struggling to pay off. The majority of which has been used on house extension and improvement. Can't afford all my repayments each month now and have approached mortgage provider to remortgage to consolidate debt, no joy cos of my high levels of unsecured debt even though these would be paid off with the remortgage and if I didn't have these debts they would lend me what I wanted! Bren offered a secured loan but at a high interest rate and this worries me should income fall for whatever reason so left with a dmp which I'm going to enter however I want my credit file to be trashed with defaults as opposed to arrangement to pay markers so at least in6 years I'll hopefully have a clean slate! All debts are from last 2 years. Do I stop all payments and wait to get defaulted and then dmp from there, or do I write to them and tell them I'm looking to dmp and thus go straight into the arrangement to pay markers. Is it about 3 months without payments and then I'll get defaulted?
    Cheers
    Tags: arrangement, arrangement to pay, credit, debt, debts, default, default notice, defaulted, defaults, dmp, house, income, interest, loan, mortgage, paid, pay, rate, repayments, stop, unenforceable, unsecured
  • #2
    Re: Arrangement to Pay and default notices

    Hi, someone else will be along to comment, but if truth be told, most lenders, whether on a DMP or not, will go ahead a default you whilst on an arrangement to pay. If your part of a managed DMP you may be unaware of it, as all the letters will go to the DMP instead of you.

    In reality, any monthly payment that falls short of the agreed monthly contractual payment, "should" result in a default being issued, between 3 to 6 months of the last contractual payment.

    However that being said, not ever lender complies with the requirements and some dont bother defaulting for 9 months plus.

    If it were me, id probably wait for the defaults first, but wait and see what others say.
    I'm an official AAD Moderator and also a volunteer, here to help make the forum run smoothly. Any views or opinions are mine and not the official line of AAD. Similarly, any advice I have offered you is done so on an informal basis, without prejudice or liability. If in doubt seek advice from a qualified insured professional - Find a Solicitor or go to the National Probono Centre.

    If you spot an abusive or libellous post then please report it by Clicking Here. If you need to contact me, for instance if I've issued you a warning, moved, edited or deleted your post, please send me a message by clicking my username.

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    • #3
      Re: Arrangement to Pay and default notices

      Just from personal experience if the creditor agrees to a dmp you won't get defaulted but will end up with late markers on your file which will end up trashing your credit rating, I only know this as one of my creditors I kept on a dmp for years did this then when I started down the unenforceable route last year they only just defaulted me last year.

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      • #4
        Re: Arrangement to Pay and default notices

        Each creditor is different but each have their own impact on your credit file. Best to get defaulted first
        I'm an official AAD Moderator and also a volunteer, here to help make the forum run smoothly. Any views or opinions are mine and not the official line of AAD. Similarly, any advice I have offered you is done so on an informal basis, without prejudice or liability. If in doubt seek advice from a qualified insured professional - Find a Solicitor or go to the National Probono Centre.

        If you spot an abusive or libellous post then please report it by Clicking Here. If you need to contact me, for instance if I've issued you a warning, moved, edited or deleted your post, please send me a message by clicking my username.

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        • #5
          Re: Arrangement to Pay and default notices

          I'm in agreement with SXGuy. I think it's better to get defaulted first.
          Let your smile change the world but don't let the world change your smile

          I'm an official AAD Moderator and also a volunteer, here to help make the forum run smoothly. Any views or opinions are mine and not the official line of AAD. Similarly, any advice I have offered you is done so on an informal basis, without prejudice or liability. If in doubt seek advice from a qualified insured professional - Find a Solicitor or go to the National Probono Centre.

          If you spot an abusive or libellous post then please report it by Clicking Here. If you need to contact me, for instance if I've issued you a warning, moved, edited or deleted your post, please send me a message by clicking my username.

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          • #6
            Re: Arrangement to Pay and default notices

            Originally posted by Pixie View Post
            I'm in agreement with SXGuy. I think it's better to get defaulted first.
            Originally posted by SXGuy View Post
            Each creditor is different but each have their own impact on your credit file. Best to get defaulted first
            Originally posted by Jaffacake View Post
            Just from personal experience if the creditor agrees to a dmp you won't get defaulted but will end up with late markers on your file which will end up trashing your credit rating, I only know this as one of my creditors I kept on a dmp for years did this then when I started down the unenforceable route last year they only just defaulted me last year.
            Cheers all

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            • #7
              OK so I'm resurrecting an old post here, I hope everyone is safe and well....

              All my debts are now part of a self managed dmp, I was under the impression all would be defaulted however I've checked my credit file today with transunion and a credit card I hold with HSBC is showing as 'late payment' all the others are defaulted which is what I wanted.

              The HSBC late payment I would expect to also show defaulted as they sent me a default notice for this account back in March last year. Once I got into financial bother I purposely didn't pay a penny to any of my creditors until they defaulted me based on the fact 6 years after default they'd disappear from the credit file. Do I just contact to them to ask them to update the account status?

              The only other difference I noticed was I also had a virgin money credit card that was defaulted last year and subsequently sold to intrum but this does not appear anywhere on my file. Any reason for this?

              Thanks as always

              ??

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