Will settlement repair my credit file quicker?

[lloydjones]

Re: Will settlement repair my credit file quicker?

All PPI has been reclaimed. Is it best to stop the DMP then? Most accounts are already defaulted so things cant get much worse right?

[lloydjones]

Re: Will settlement repair my credit file quicker?

Right this is the plan:

I have told Zebra the debt management company that I no longer want them to deal with my creditors.

I am now not going to pay my creditors for the next few months, apart from Mackenzie Hall as they/Black Horse have not defaulted me, I'd like to avoid another default on my credit file!

Hopefully in 6 months or so I should be able to negotiate some much reduced settlement figures.

What do you think? Your opinions are appreciated.

[MrsD]

Re: Will settlement repair my credit file quicker?

if I were in your position, it's probably what I would do
remember you will be taking flak and you need to make sure no one makes a lunge for court, (not common but it does happen)

you need to stay on top of it, I'd send CCA letters to all of them just to get a system in place and I'd keep well uptodate with what's happening to all the accounts. It will take them a couple of months to realise that the DMP payment isn't coming then they'll be ringing and writing, meanwhile I'd be sticking the DMP payment in a wee account saving for the F&Fs

[The Tech Clerk]

Re: Will settlement repair my credit file quicker?

Defaults stay on file for 6 years regardless it seems so you have not much choice, do not fall into the trap of thinking they are bothered about your circumstances.

[kilasuit]

Re: Will settlement repair my credit file quicker?

I am now not going to pay my creditors for the next few months, apart from Mackenzie Hall as they/Black Horse have not defaulted me, I'd like to avoid another default on my credit file!

1 default or 100 defaults in 6years time wont make a difference.

[mgfboy]

Re: Will settlement repair my credit file quicker?

It all depends what you want to do in the future, if your not going to need credit etc in the near future, it doesn't matter but if your going to need to get back in the credit world it's may well be better to start to clear/ clean up your records.

[lloydjones]

Re: Will settlement repair my credit file quicker?

I would like to get my credit rating back on track. Well aware that defaults stay on my file for 6 years, however, I don't want a fresh default from Black Horse as the other defaults are over 12 months old so only 4-5 years to go!

I thought if my records showed a default but the amounts owed were all settled then my rating would improve further. Will need to change mortgages in the near future. Our family car is on its last legs too so may need a little finance for a car.

[MrsD]

Re: Will settlement repair my credit file quicker?

lloyd

just my penniesworth but for a family car, we just bought two using cash, using the money we saved by investigating UE, so no credit checks no nothing. and you don't need to spend a fortune either, some marvellous bargains around the 1500 mark, you buy it, you run it for a couple of years, it dies, you buy another one. it's they way things used to work before credit and credit cards became king.

as for mortgage, my existing provider just extended our mortgage for eight years again no credit checks (ours is totally wrecked), and they kept it at the existing low rate. I dreaded asking (honestly) and it was absolutely simple, one phonecall sorted it. Our mortgage was uptodate.

So my view would be, forget about the credit record, use cash if you can and don't believe that your credit record is the be all and end all. These CRAs are private companies supplying information to other private companies, it's a shit system and we have chosen not to perpetuate it, we've never looked at our records with any of them and my aim is to keep enough money in our possession to live without any reference to these parasites.

I would also add that if Black Horse haven't defaulted you and you have defaulted, ie not paid the contracted amount, they should have defaulted you, the general rule is within 6 months. So if they do default you now, you would have an arguement to get that backdated to the actual default date. They are just using this to keep you paying and extending their influence over the debt.

just the way we try to live now, the important thing is the living not the money

[lloydjones]

Re: Will settlement repair my credit file quicker?

Is it worth sending CCA requests to all my crditors then? Even if they started after April 2007? If so, is it in the hope they cannot produce a copy of the agreement and therefore it is deemed unenforceable?

My mortgage company will not take on any new mortgages (Bradford and Bingley). I am on standard variable which is ok for now but I'd like a fixed rate for piece of mind.

With regards to defaults. Should I ask all deafulted accounts' creditors to change the default dates to six months after I stopped paying? E.g. Lloyds TSB crdit card was entered as defaulted on my credit file in Dec 2011 (without issuing a default notice!!!), however, I stopped paying then in January 2010. Srtictly speaking the default date should be June/July 2010!?

[kilasuit]

Re: Will settlement repair my credit file quicker?

no strictly speaking the deafult date is January 2010 as that was when the defaul on the account happened.

they in theory have 6 months to default you but this is only in theory for reasons stipulated elsewhere.

[lloydjones]

Re: Will settlement repair my credit file quicker?

Lloyds TSB only defaulted me after I started claiming PPI - funny that! As they never served a default notice is it possible to get the default removed?

[MrsD]

Re: Will settlement repair my credit file quicker?

possible but highly unlikely, if you didn't keep to the contracted payments you defaulted, they are aloowed to report the conduct of the account, so unless they've messed up mightyly somewhere along the line, the default will stay

[lloydjones]

Re: Will settlement repair my credit file quicker?

Thanks, is it worth asking for my CCAs on all other accounts?

[MrsD]

Re: Will settlement repair my credit file quicker?

it's worth asking for them if you're going to use the information you receive. When were they taken out? If they come back UE, you need to try for SB, so that means fending them off for six years and not admitting the debt ie paying anything. If you've been paying and asking them to accept reduced offers, then that clock starts ticking now.

[lloydjones]

Re: Will settlement repair my credit file quicker?

Managed to avoid paying Northern Rock and Cahoot due to UE already. Neither have chased me for well over 2 years now, only 4 to go!!! They send statements and sum in arrears letters and that's it.

Decided not to go asking for CCAs from others. Will stick to the plan of cancelling DM plan and stop paying my creditors for a while. Hopefully in 3-4 months they'll accept a reduced deal. Only creditor I'm going to push for a full and final settlement on is Black Horse as I want to avoid yet another default recorded on my credit file!

Does this sound like an ok plan?