DMP Mutual Support Thread - Part 12

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  • slippy85
    slippy85 Posts: 43 Forumite
    I am going to speak to StepChange today regarding my debt. I've read over the thread a little but need a few things uncovered. Should I not make any payment to my creditors but inform them of the DMP? I've read that I should wait a few months to get an emergency fund. Do i pay anything to the creditors during this time? Is the aim to get a default notice asap?
  • sourcrates
    sourcrates Posts: 28,711
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    slippy85 wrote: »
    I am going to speak to StepChange today regarding my debt. I've read over the thread a little but need a few things uncovered. Should I not make any payment to my creditors but inform them of the DMP? I've read that I should wait a few months to get an emergency fund. Do i pay anything to the creditors during this time? Is the aim to get a default notice asap?

    Token payments are a bit pointless in my opinion, as long as you tell your creditors when you will be starting the DMP, i`d leave it at that, save up your emergency fund, as you will need it.
    I’m a Forum Ambassador and I support the Forum Team on the Debt free wannabe, Credit file and ratings, and Bankruptcy and living with it boards. If you need any help on these boards, do let me know. Please note that Ambassadors are not moderators. Any posts you spot in breach of the Forum Rules should be reported via the report button, or by emailing forumteam@moneysavingexpert.com. All views are my own and not the official line of MoneySavingExpert.For free non-judgemental debt advice, contact either Stepchange, National Debtline, or CitizensAdviceBureaux.Link to SOA Calculator- https://www.stoozing.com/soa.php The "provit letter" is here-https://forums.moneysavingexpert.com/discussion/2607247/letter-when-you-know-nothing-about-about-the-debt-aka-prove-it-letter
  • slippy85
    slippy85 Posts: 43 Forumite
    Thanks for your help again. I'll start tonight. Will phone creditors and informed them and then post letters.
  • henrryyyy
    henrryyyy Posts: 59 Forumite
    can someone clarify for me defaults please
    I just had a phone call from SC regarding my issues the other day(think complaints department)..
    From what I have understood from this forum is that if I was defaulted tomorrow on a barclaycard account for example. Then 6 years from tomorrow any negative impact on my credit files would be removed, despite being in a DMP and still making arranged payments?

    I have just been told that after 6 years the default would drop off my file, but the account would remain with bad payment markers until 6 years after the date the account was paid off?

    at the end of the day im just going to continue with my dmp starting may 1st for now
    as I said before, will have a little starting block with an emergency fund from this months wages.
    The whole defaulting issue is something that I can deal with in a few months if need be.

    do accounts not default when you are on a DMP anyway after 3-6 months of reduced payments?
    and im assuming if my SC payment covers my contractual payment I wont receive a bad payment on said account anyway(only affects 1 of my accounts)
  • January2015
    January2015 Posts: 2,369
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    henrryyyy wrote: »
    can someone clarify for me defaults please
    I just had a phone call from SC regarding my issues the other day(think complaints department)..
    From what I have understood from this forum is that if I was defaulted tomorrow on a barclaycard account for example. Then 6 years from tomorrow any negative impact on my credit files would be removed, despite being in a DMP and still making arranged payments?

    I have just been told that after 6 years the default would drop off my file, but the account would remain with bad payment markers until 6 years after the date the account was paid off? Stepchange are wrong. 6 years after the date of default all record of the account disappears from credit reference agency files. It may take one or two months after the 6 years - because some creditors don't update regularly but all record of the account will disappear. This will not happen if accounts are not defaulted and continue to be marked arrangement to pay.

    at the end of the day im just going to continue with my dmp starting may 1st for now
    as I said before, will have a little starting block with an emergency fund from this months wages.
    The whole defaulting issue is something that I can deal with in a few months if need be.

    do accounts not default when you are on a DMP anyway after 3-6 months of reduced payments? Not all creditor play fair and some will continue to mark arrangement to pay month after month after year after year - even though their rules/regulations/guidance documents advise that 3 - 6 months after contractual payments are not met is when accounts should be defaulted.
    and im assuming if my SC payment covers my contractual payment I wont receive a bad payment on said account anyway(only affects 1 of my accounts) If you meet contractual payments on an account there will not be any negative impact on your credit reference agency files.

    See my comments in red above. Others can also confirm what I have said
    DFW Nerd No. 1484 LBM 07/01/15 Debt was £95k :eek: Now debt free and happy :j
  • motivated
    motivated Posts: 3,044
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    Hi all

    I still hadn't heard from Halifax regarding 2 loans that have been added to our DMP. I wrote to them but have heard nothing. So far we have missed 2 payments.

    However I received 2 texts today reminding me that our payments of £xxx are due on the 6th April. Our contractual payments are/were paid on the 15th of the month.

    The payments they speak of are our DMP payments as they both match up to our DMP plan. I think this means that they must be accepting the SC payments. As for any interest and charges being added I'm still in the dark but it's a start.

    Maybe a silly question but our 1st SC payment is due to go on Saturday 1st April. Usually any DDs I've had in the past never went on a Saturday and waited until Monday. Any thoughts please
    M
    Emptying my lake with a teaspoon
  • January2015
    January2015 Posts: 2,369
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    edited 27 March 2017 at 7:09PM
    The following quote is taken from the Information Commissioner's Office document "Principles for the Reporting of Arrears, Arrangements and Defaults at Credit Reference Agencies"
    "The fact that the account was previously in default wiill remain on your credit file for 6 years from the date of default. If the account was not in default, the record would remain on your credit file for 6 years from the date of closure."
    There are people on here who will confirm there credit reference agency files show no trace of debts where defaults have been recorded more than 6 years ago, even though they still owe and are still paying to clear the debt on those accounts. Even though the record of the account disappears you would still be liable for the debt - but in terms of what anyone can see on your credit files ......it's gone as if it was never there.....if a default was recorded and six years have passed.

    Also - useful information on Debt Camel
    DFW Nerd No. 1484 LBM 07/01/15 Debt was £95k :eek: Now debt free and happy :j
  • January2015
    January2015 Posts: 2,369
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    motivated wrote: »
    Hi all

    I still hadn't heard from Halifax regarding 2 loans that have been added to our DMP. I wrote to them but have heard nothing. So far we have missed 2 payments.

    However I received 2 texts today reminding me that our payments of £xxx are due on the 6th April. Our contractual payments are/were paid on the 15th of the month.

    The payments they speak of are our DMP payments as they both match up to our DMP plan. I think this means that they must be accepting the SC payments. As for any interest and charges being added I'm still in the dark but it's a start.

    Maybe a silly question but our 1st SC payment is due to go on Saturday 1st April. Usually any DDs I've had in the past never went on a Saturday and waited until Monday. Any thoughts please
    M

    Direct debits are only collected on weekdays, i.e Monday through to Friday. Where the collection date falls on a weekend day, the payment will be collected on the next working day, i.e. Monday.

    If I were you I would write to Halifax and remind them of your DMP and ask them to confirm all interest and charges have been suspended.
    DFW Nerd No. 1484 LBM 07/01/15 Debt was £95k :eek: Now debt free and happy :j
  • motivated
    motivated Posts: 3,044
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    Direct debits are only collected on weekdays, i.e Monday through to Friday. Where the collection date falls on a weekend day, the payment will be collected on the next working day, i.e. Monday.

    If I were you I would write to Halifax and remind them of your DMP and ask them to confirm all interest and charges have been suspended.

    Thanks January
    I have done just that :D. I sent letters again on Saturday quoting our DMP reference number and also requesting that interest and charges be stopped etc etc. So hopefully they will get fed with me and reply.
    M
    Emptying my lake with a teaspoon
  • slippy85
    slippy85 Posts: 43 Forumite
    sourcrates wrote: »
    Token payments are a bit pointless in my opinion, as long as you tell your creditors when you will be starting the DMP, i`d leave it at that, save up your emergency fund, as you will need it.

    I've produced the letters and will be getting them sent off tomorrow. So the next step would be to speak to StepChange, work out my outgoings and what I can afford. I'll make sure to inform the creditors when the plan will start. Do they normally take that quite poorly then? Especially as I might not be making a payment for a few months?
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