Hi NewStart

Welcome to the forum.

It will commence from the start, not the final payment.

Mark

Welcome to the forum NewStart.

Mark is correct. As none of us are credit file experts, and because we've looked into trust deeds much more than DAS in the past, I thought I'd double-check on this with somebody who would know for sure.

Via Twitter we contacted James Jones who is the Head of Consumer Affairs at Experian. He was kind enough to tell us that it is,

"Simply recorded as a DAS. Lenders decide what individual entries mean to them as far as risk is concerned".

I checked whether this would be for six years (as usual) or for the duration of the debt arrangement scheme and James said,

"DAS records stay on a credit report for 6 years from the start date."

So there we have it!

That's what I like, chapter and verse.

Good to get this confirmed though as credit files are still a bit of a hit and miss sometimes.

Mark

The other thing that is probably worth bearing in mind is to do with the balances that might remain owing on a DAS after the six years has ended (and the DAS no longer appears).

A debt arrangement scheme may be set up for a term longer than six years. When this is the case, I'd imagine that each lender will still show a reducing balance owing even after the DAS no longer shows on the file.

I don't know this for sure, but it seems as though it may well be the case.

That's what I love about this forum straight to the point non judgemental advice, thanks. My big fear was after the DAS was recorded they would then continue to fill up with missed payment marks.

For example. DAS. 4 4 4 4 etc for say 5 years and you would be left with years of missed payments on your file. Thankfully that is not the case so I will now consider it as a serious option.

Ah... well this may be two different things NewStart.

The DAS is a single entry, which will stay on your credit file for six years.

Each credit account will report as well (assuming the lender shares data with the credit reference agency) which is why I made the extra point about the reducing balances.

However, if your DAS lasts for six years or less, by the end of it you should have no record of the DAS or any due balances on your credit file.

Ok so, if I am getting this right you will still be left with years of missed payments on your record which will drop off in a further 6 years. I know if you get a default there is no further updates on your credit file except a note of the outstanding balance. I just assumed with the DAS that would be the same.

I'm not certain NewStart.

I think you might be right, but it would also be evident that the debt had been fully repaid (a bit like a satisfied default notice).

So there may be evidence of a previous issue, but also evidence that it had been fixed.

Also, you'd be able to layer on more recent positive use of credit. I understand that recency is important to most lenders.

It just seems very long that if say for example you take 6 years to pay off the DAS the you need a further 6 years for the last reduced payment to drop off. I really do feel that 12 years is unreasonable amount of time to clear up your credit file. I seem that paying them back in full is the worse option available!

I guess that wouldn't prevent you from rehabilitating your creditworthiness well before that NewStart?

I do understand where you are coming from, but once the debts are sorted you can start building again.

From an adviser perspective credit status will typically be a secondary consideration. Dealing with the debts in the most appropriate way is primary, and later provides the opportunity to return to normality.