Step change token payment plan

john1986
john1986 Posts: 114 Forumite
in Debt-free wannabe
iv had a letter to say one of my creditor has refused my payment plan, anyone else gone through this ? the letter says to only let stepchange know if the debt is passed over, will they p[!!! the debt over and I end up worse off ?

Comments

  • Monkeyballs
    Monkeyballs Posts: 1,935 Forumite
    First Anniversary Combo Breaker
    Hi John,

    I don't have specific knowledge of SC's token payment plan but I suspect it will be the same as creditors who refuse DMP payments...

    As it's an informal agreement your creditors don't have to accept what is offered, they may continue to add interest and charges for a period of time and then sell the debt or they may freeze interest charges and sell the debt quickly.

    My best advice is to let SC know, I suspect that they will just make token payments regardless as this shows willing to pay and if the debt ever goes to court (I.e. creditor applies for a CCJ) then the court will see that you are seeking financial aid from a debt charity and an affordable offer of payment has been made which will (or should) mean the CCJ will not be granted.

    MB
  • National_Debtline
    National_Debtline Posts: 7,998 Organisation Representative
    First Post First Anniversary Combo Breaker
    Hi John

    I take it the letter is from Stepchange themselves?

    It's not out of the ordinary for a creditor to reject an offer made by a charity on your behalf, especially if it is just for a token sum. Creditors are not obliged to accept offers made in this way, though on the whole organisations like Stepchange tend to be very good at persevering and getting most/all of them on board.

    Debts can be sold/passed on whether they are in a payment plan or not - this would not change how Stepchange dealt with them. In some cases it can be a good thing as the new owner of the debt may be more willing to accept an offer than the previous one.

    Regards

    Dennis
    @natdebtline
    We work as money advisers for National Debtline and have specific permission from MSE to post to try to help those in debt. Read more information on National Debtline in MSE's Debt Problems: What to do and where to get help guide. If you find you're struggling with debt and need further help try our online advice tool My Money Steps
  • john1986
    john1986 Posts: 114 Forumite
    thanks for replies, how would it go on if say I had £50 spare towards the end of the month so rang to pay it off one of my debts i.e the one that refused the offer, would stepchange frown upon this ?
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