Has anyone paid off a creditor on a DMP and 'got away with it'

funkyfish586 · 15 April 2010 at 2:34PM

Lol sounds like im doing something wrong!!

I posted earlier and got some great advice off DC & RAS about littlewoods & wether i should pay them off as they have threatened me with a CCJ & its only £147

I just want to hear if anyone on here has paid off a smaller creditor & it not affected the DMP? i was told on here & by payplan some creditors can pull out of the DMP if they find out . So still deciding lol

x

xgingerx · 15 April 2010 at 3:11PM

Hi yes, i originally had 11 creditors but now only 5, i have cleared smaller ones along the way of my dmp (with CCCS).

Remember a DMP is a voluntary and quite flexible option.

I have had no problems

If you need any further info let me know

gonzo127 · 15 April 2010 at 3:17PM

yes, full and final's are quiet common whilst on a DMP,

the main thing you need to remember is to state that it is a gift from a family member and that you have written agreement that it will be a full and final settlement,

also i personally very much doubt they would actually get a CCJ against you for £147 especially whilst you are already on a DMP this is because a court will 99% of the time, not order you to pay any more than you are already doing on the DMP, and it would cost the DCA money to take you to court

funkyfish586 · 15 April 2010 at 3:40PM

thanks both!!

ginger - i was told that it goes against the terms of the dmp as its seen as favouring a creditor, im so glad to hear you've reduced yours

Gonzo - thank you! I havent actually got anything in writing as i was just going to phone the on payday & pay the balance. Do you think i should write to them offering them 90% & do it that way. I agree if a 'family member' has given me the money its not favouring is it? x

xgingerx · 15 April 2010 at 3:44PM

funkyfish586 wrote: »

thanks both!!

ginger - i was told that it goes against the terms of the dmp as its seen as favouring a creditor, im so glad to hear you've reduced yours

Hi, obviously its not something u r going to shout about with the other creditors, but on CCCS website it does give you options to amend the balance and a drop down menu for why u r amending the balance, I just click "Gift from Family/Friend" and if u amend to Zero, its drops off the dmp list and the money which was allocated to them get redistributed to the creditors remaining, just remember a DMP is only an informal agreement.

gonzo127 · 15 April 2010 at 4:01PM

personally i would offer less than 90%, ok i dont know the details of the other post so i dont know the details of the debt, however the general advice is to always start quite a bit lower than you are willing to pay the maximum i would offer as your initial offer would be £100-125 and you have to make sure it is for a FULL AND FINAL SETTLEMENT anything else will mean you might still have to pay some back in the future

also remember it must be in writing and you need to send it recorded delivery AND give a date to which you require a response (14 days should be enough) before you offer the money to one of your other creditors

do not pay it unless you have written confirmation that they will accept your offer as a full and final settlement

funkyfish586 · 15 April 2010 at 4:07PM

thank you Gonzo thats really helpful x

funkyfish586 · 15 April 2010 at 4:19PM

tedsd wrote: »

Thanks for asking this question funkyfish, it may help me in the future. I'm with Littlewoods but owe about £700 so couldn't clear it at present, the CCJ threat sounds scary...:eek:

im even scare of the word lol, littlewoods have been charging me interest at 12 a month so my little debt with them will soon become huge! Good luck with your dmp x

Lelc · 15 April 2010 at 5:47PM

I've just paid off one of my smaller debts today. I have a bit of extra money over the next couple of months and so I spoke to Payplan who suggested that I could just pay off one of my smaller creditors. They made the contact with the creditor and I just paid Payplan. I'm hoping that I can settle another one next month.

Funny enough there was no mention of other creditors pulling out of the dmp agreement.

funkyfish586 · 15 April 2010 at 5:55PM

does this sound ok for a F& F Letter? x

WITHOUT PREJUDICE

Dear Sir/Madam

Re: Account No - xxxxxx

I write with reference to the money which you are claiming on the above account.

I can confirm that I am unable to offer to pay the money which I owe in full due to being in a debt management plan with payplan (reference number - xxxx ) and already using all our available income to pay off our debt. However, I have been given £115 from a family member and I want to offer this as an ex-gratia payment in full and final settlement of the account. This offer is made on the clear understanding that, if accepted, neither you or any associate company will take any other action to enforce or pursue this debt in any way whatsoever and that I will be released from any liability.

I also request that, if accepted, you will mark any entry on a credit reference agency file relating to the above account as "satisfied" in full.
Payment can be made within 7 working days of receiving your written agreement of this offer and method of payment.

I look forward to receiving your reply.

Yours faithfully

Name ( SHOULD I SIGN)?

funkyfish586 · 15 April 2010 at 8:13PM

just checking this is ok before i post tomorrow x

Has anyone paid off a creditor on a DMP and 'got away with it'

Comments

Confirm your email address to Create Threads and Reply

🚀 Getting Started

Categories

Is this how you want to be seen?

Get our FREE Weekly email full of deals & guides - and it’s spam-free