Daft Question re DMPs

[oscar]

I keep getting bugged by Fresh Start Financial and lately, The Money Group (which is essentially the same organisation)

Saying I work for A large credit company and the effect on my credit file is starting to fall on deaf ears, and I am being told a DMP only shows as ONE missed payment, although they did agree that the creditor would, more than likely terminate the account.

I know essentially, they are correct in that one month missed payment puts the account into default, but my understanding with most creditors is that they continue to report each month - eventually going to two three months in arrears etc, if the account is not already at this stage! - eventually, the account will default anyway after six months arrears (and most creditors will sell on)

Am I correct here arnt I?

[Riz]

Re: Daft Question re DMPs

I am being told a DMP only shows as ONE missed payment

They are telling you porkies.

[Never-In-Doubt]

Re: Daft Question re DMPs

They are telling you porkies.

That's the polite way of putting it (usually they list it as late payment, which it is!)...

[Never-In-Doubt]

Re: Daft Question re DMPs

I keep getting bugged by Fresh Start Financial and lately, The Money Group (which is essentially the same organisation)

Ooooh lucky you

Saying I work for A large credit company and the effect on my credit file is starting to fall on deaf ears, and I am being told a DMP only shows as ONE missed payment, although they did agree that the creditor would, more than likely terminate the account.

A DMP will list as late payments until such time the account is formally defaulted, that is why I always state it is best to get defaulted early so it falls off in 6yrs, if you pay into a dmp then you'll in essence stop the default meaning they could, if it took you 10 years to pay it, show data for a total of 16 years - 10 years late payments, they 6 years account history after that = 16yrs of adverse data - get a default by not paying NOW and the data drops off in 6yrs.

I know essentially, they are correct in that one month missed payment puts the account into default, but my understanding with most creditors is that they continue to report each month - eventually going to two three months in arrears etc, if the account is not already at this stage! - eventually, the account will default anyway after six months arrears (and most creditors will sell on)

No they are incorrect, you need to be at LEAST one payment late but most lenders give at least 3 months prior to formally defaulting the account - it should be completed after 6mth of no payment, but not always the case!! A lender does NOT have to default you mate, if they decide to leave it with status [8]'s then tough - what can you do? I have the same with an incorrect link, HSBC have added a default on the incorrect linked address on my report, 5 years of status [8],s before they defaulted..... I can't do anything about it cos it aint my account, but thats another story!

Am I correct here arnt I?

Are you asking a question, or telling us you're correct? However, No mate - you're not, Not quite....

[oscar]

Re: Daft Question re DMPs

Niddy you know me - I am always vague!!

You got my gist - one month late 'officially' puts the account/agreement into default - but as you say, it is usually at least three months before formal action is taken/starts.

I am aware that a DMP can prevent an actual default as such, but the bad data - which could be 8 months late (depending how long the dmp was for) would be there. At the end of the day, that is virtually as bad as a default on messes the credit file up completely.

What I meant when I said I am correct is that the data continues to report and the account will be defaulted (in the majority of cases) at some point or at least be seriously screwed. And to say that it wont keep reporting as one month (cos there would be no point in that!)

[Never-In-Doubt]

Re: Daft Question re DMPs

Solution - stop paying, get defaulted then set up DMP mate.

sorted.

[Riz]

Re: Daft Question re DMPs

Even worse from their (TMG) website.

It is likely that you will receive default notices from your creditors upon commencement of your plan as the first 2 months’ payments are taken as an initial fee and payments are not made to your creditors.

[Wishfull]

Re: Daft Question re DMPs

Even worse from their (TMG) website.

why do people still go to these fee paying dmc when they can go to a free one,whom the crediters are more likely to accept onto dmp anyway

[roomtobreathe]

Re: Daft Question re DMPs

why do people still go to these fee paying dmc when they can go to a free one,whom the crediters are more likely to accept onto dmp anyway

Because the free ones don't make up bullshit claims about what they can do. And when we first realise we're in the doo-dah we flail round looking for the most painless way to get out of it. That's when even more money gets taken from what we don't have. It's bad enough robbing Peter to pay Paul but having Roger come along and cream some off as well....

'No pain, no gain' could've been written for being in debt.

[Riz]

Re: Daft Question re DMPs

Because the free ones don't make up bullshit claims about what they can do.

Exactly.

Interesting report on the OFT's last mystery shop of these companies. Calling them up as a customer and seeing what they claimed to be able to do/offer.

Mystery Shopping Report

[Numpty Monkey]

Re: Daft Question re DMPs

I don't know wether to be angry, sad or relieved at that report Rizzle