DMP Mutual Support Thread - Part 12

vaper · 14 May 2017 at 10:41AM

Morning all.
I have now got a new bank account for wages to go into, all our essential direct debits have been changed over to that one. The mortgage payment is set to go direct to Britannia and I have cancelled all the direct debits to credit card companies Eeek that was scary!!!.
I have written to all our creditors informing that we are getting help from stepchange, just got to sign the forms and send them back to them then the DMP should start properly.
I think the only thing I should have done differently was to take my time and try and build up an emergency fund but panic set in and I jumped too quickly.

This has been one of the most nerve wracking, scary, difficult thing I've ever done with regard to finances. Two weeks ago I was a confused blubbering wreck but with lots of support from you lovely people I feel I'm just about getting my head around everything.

Is there anything I've missed out or still need to do?
Thanks for all your wonderful support.

spiffyiffy · 14 May 2017 at 10:43AM

Twins wrote: »

Hello Everyone!

I just wanted to say I've spend the last hour and half writing to all my creditors telling them that I'm going to self manage my DMP from here on in! I've got 10 letters in front of me all which contain either the self DMP notice, or request for CCA or in the case of PRA Group telling them I'm not paying as they can't produce a valid CCA!

Phew! My head was all over the place when I first started and tried to type and put together what I needed to say to each creditor but now it's done it feels like a big relief!

I'm offering £1 between now and August so that I can build up some more funds and then by then I should have heard who has a valid CCA or not and then take if from there.

A big thanks to January for consistently putting up with my never ending questions :T I couldn't have put together all these 10 letters without her and thanks to Sourcrates for my silly questions too

Love the support of this page.

Thank you!

Well done on all that; I too spent yesterday early afternoon writing letters to my creditors, but in my case I'm just carrying on for now where I'll leave off from Stepchange. I haven't offered any CCA requests in yet but I do have 3 with PRA so I'll do that once I'm properly up and running on my self managed DMP.

@Carbootcrazy - I think we're all in the same boat on this.

I've already written to StepChange and have had a reply back from them but they didn't give me any bank details to send to the creditors but I'm guessing that's what they'll give me. I'll be posting all 9 of my letters to my creditors tomorrow so hopefully should get replies around next weekend hopefully.

leanne12345 · 14 May 2017 at 10:46AM

Hi, me again!
After everyone's advice previously I have been looking more into going self-managed. On the NEDCAB website I can see the letters are generated automatically alongside the I&E but how do I go about making token payments initially? Do I still send creditors the I&E with a letter saying I will be making token payments for however long or do I leave off the I&E until I will be making proper payments?
Also any advice on how to word my token payment letter? In some cases I will probably just do it for 4 or 6 months but with others I want to make token payments until they default so not sure how to go about that?
Sorry for the probably rambling post, I feel like I'm over thinking all of this and confusing myself!

Puzzcat · 14 May 2017 at 11:13AM

spiffyiffy wrote: »

Well done on all that; I too spent yesterday early afternoon writing letters to my creditors, but in my case I'm just carrying on for now where I'll leave off from Stepchange. I haven't offered any CCA requests in yet but I do have 3 with PRA so I'll do that once I'm properly up and running on my self managed DMP.

@Carbootcrazy - I think we're all in the same boat on this.

I've already written to StepChange and have had a reply back from them but they didn't give me any bank details to send to the creditors but I'm guessing that's what they'll give me. I'll be posting all 9 of my letters to my creditors tomorrow so hopefully should get replies around next weekend hopefully.

Hi,
Sc didn't supply creditor account details I had to request them in my letters. Some still didn't supply them so I had to ring individual creditors to obtain them.
Puzz

Puzzcat · 14 May 2017 at 11:18AM

sourcrates wrote: »

Hi,

Let me just explain the usual process that takes place when you stop making your regular contracted payments.

Debt collection agencies are utilized in two ways by creditors.

(1) Your account, because its (technically) in arrears, gets passed over to a DCA to "manage" on the creditors behalf, the debt is still owed to the creditor, the DCA just acts as a third party, in order to collect the debt for there client.

The creditor can choose to default you at any time after 3-6 contracted payments have been missed, (DMP payments are not contracted payments) you will be informed separately in writing of this.

(2) Only once defaulted can a debt be sold on, they are usually bought by specialist debt collection companies, such as Lowell, Cabot, and Hoist.

Hi sourcrates,

Can you point me in the direction of the legislation that actually states that the debt must be defaulted before being sold? I have read the ICO guidelines and have an issue with a debt sold by Creation never defaulted and now owned by Lowells who also won't/haven't defaulted despite token payments for the last 6 months and a formal complaint to the fos which was upheld in Creation/Lowells favour..

Thank You
Puzz. x

Puzzcat · 14 May 2017 at 11:20AM

vaper wrote: »

Morning all.
I have now got a new bank account for wages to go into, all our essential direct debits have been changed over to that one. The mortgage payment is set to go direct to Britannia and I have cancelled all the direct debits to credit card companies Eeek that was scary!!!.
I have written to all our creditors informing that we are getting help from stepchange, just got to sign the forms and send them back to them then the DMP should start properly.
I think the only thing I should have done differently was to take my time and try and build up an emergency fund but panic set in and I jumped too quickly.

This has been one of the most nerve wracking, scary, difficult thing I've ever done with regard to finances. Two weeks ago I was a confused blubbering wreck but with lots of support from you lovely people I feel I'm just about getting my head around everything.

Is there anything I've missed out or still need to do?
Thanks for all your wonderful support.

Hi,

Why not delay the start now? Give SC a ring and tell them you want to start in ... July/August? If you don't send the paperwork back they can't start it anyway...!!! I delayed mine by 3 months without issue.

Puzz

spiffyiffy · 14 May 2017 at 11:29AM

Puzzcat wrote: »

Hi,
Sc didn't supply creditor account details I had to request them in my letters. Some still didn't supply them so I had to ring individual creditors to obtain them.
Puzz

Thanks. That's what I'll be doing in my letters which I'll send tomorrow.Hope I don't have to ring any of them

[Deleted User] · 14 May 2017 at 11:32AM

Puzzcat wrote: »

Hi,

Why not delay the start now? Give SC a ring and tell them you want to start in ... July/August? If you don't send the paperwork back they can't start it anyway...!!! I delayed mine by 3 months without issue.

Puzz

vaper

I so agree with the advice given here by Puzzcat:T

Please get some sort of emergency fund together before starting your DMP as you'll have no lines of credit once you start and emergencies have a nasty habit of cropping up when they are the most problematic:mad:. There speaks the voice of sad experience:o

I hadn't discovered this wonderful thread when I dived headlong into my DMP. Stepchange never raised the subject of an emergency cushion either. I found it such hard going for the first year or so as I had emergency after emergency and regretted the day I signed up to a DMP. I was existing rather than living as I'd committed to paying so much off my debts each month that I'd stupidly underestimated my other outgoings:o. I was blinkered, all I wanted was to get rid of the debts in the shortest possible time. I realised too late that there are much better ways of organising a DMP than I'd done.

Good Luck:beer:

vaper · 14 May 2017 at 11:43AM

I've already done the letters to creditors explaining that we will be working with stepchange and asking for a few weeks grace while this is sorted. I haven't posted them yet though!
If I don't post them yet they won't be aware that we are going with SC, will this make a difference how they respond or should I just post them anyway and ask SC for a delay in starting?

sourcrates · 14 May 2017 at 11:46AM

Puzzcat wrote: »

Hi sourcrates,

Can you point me in the direction of the legislation that actually states that the debt must be defaulted before being sold? I have read the ICO guidelines and have an issue with a debt sold by Creation never defaulted and now owned by Lowells who also won't/haven't defaulted despite token payments for the last 6 months and a formal complaint to the fos which was upheld in Creation/Lowells favour..

Thank You
Puzz. x

Hi Puzz,

Unfortunately its not as black and white as i originally thought.

Its sec 87, part A, consumer credit act, that applies here :

87 Need for default notice.

(1)Service of a notice on the debtor or hirer in accordance with section 88 (a “default notice ”) is necessary before the creditor or owner can become entitled, by reason of any breach by the debtor or hirer of a regulated agreement,—

(a)to terminate the agreement, or

(b)to demand earlier payment of any sum, or

(c)to recover possession of any goods or land, or

(d)to treat any right conferred on the debtor or hirer by the agreement as terminated, restricted or deferred, or

(e)to enforce any security.

In order to terminate the agreement, to sell a debt, they have to send a default notice, now we all know that does not necessarily mean a default will be registered, although most of the time, that is the case, it depends on how you interpret sec 87, so can be a slight gray area.

DMP Mutual Support Thread - Part 12

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