DMP & Mutual Support Thread - Part 9

Hopelessly_Hopeful · 17 February 2013 at 9:56AM

dad2one wrote: »

Many thanks.:wave:
I am going through StepChange, only just applied.
Is there a letter template in app pack, or do I have to wait for confirmation of the plan before contacting creditors?

Thing is I am going to miss a payment very soon, so I was thinking of making a token one anyway.

You will get a letter to copy and send with the application they send you to sign. Let me have a look see if I can find it. You dont have to wait to sign to send it. The sooner you send them the hold it I am seeking debt advice and heres £1 the better as more chance they will default or stop interest.

SC are just developing their template letter section, will grab you another. There is a really good section on the debtline site. You can copy and past from different letters so I'd send in one letter, inform them you are seeking advice, request no telephone calls just communicaitons in writing, ask to freeze interest, enclose token payment paragraphs. http://www.nationaldebtline.co.uk/england_wales/debt_advice.php#6

Hope that helps.

HHx

Julie67 · 17 February 2013 at 10:05AM

Morning all,

Thanks for the advice re HSBC I will write to them as suggested, sounds like phone calls are a waste of time.
Is it normal for Tesco CC to default so quickly and is this a good or a bad thing, sorry to sound thick!

Thanks again Julie

Hopelessly_Hopeful · 17 February 2013 at 10:17AM

cocoloco wrote: »

Hi everybody, I hope you all have a peacefull weekend!!!

Sorry to be a pain, but anybody have any answers? I'm greatful for any advice.

My appointment with Payplan is tomorrow at 2 pm, got all my paperwork ready and feel strangely calm and empowered .- wonder how long will it last?

Morning

I was with First Direct of 20 years. I approached them for a loan so I could consolidate. When they saw my SOA they not only said no but bolted down the hatches, raised interest rate, took anyway credit limit and that was the start of me looking into the DMP. So much for loyalty.

However, I had a FD loan, when I started DMP no further interest was added. You will see that SC have a different DFD for the loan as they will with your credit card.

I also had a credit card with FD. Struggled the get the interest down with them. Managed to get it to 12.9%. Complained again via FOS and they agreed to 6.5% but only if I sign a new CCA. I did this but SC later told me I should not have done this. Personally I think it reasonable to sign one and agree a new interest rate but thats a discussion for later.

FD actually did me a favour, I will be debt free next year

Good luck

HHx

Hopelessly_Hopeful · 17 February 2013 at 10:21AM

Julie67 wrote: »

Morning all,

Thanks for the advice re HSBC I will write to them as suggested, sounds like phone calls are a waste of time.
Is it normal for Tesco CC to default so quickly and is this a good or a bad thing, sorry to sound thick!

Thanks again Julie

Defaults are a good thing as sooner they go on the sooner the 6 years will have passed. Creditor try to make out arrangement to pay or AP markers are better for you but they could mark with your account with this until the end of your DMP so they appear on searches years afterwards, grrrrr.

Defaults also usually mean interest freeze.

Tesco defaulted me and froze interest after 3 months. Were always polite and responded promptly.

HHx

Julie67 · 17 February 2013 at 10:24AM

Thanks HH. I am planning on writing to HSBC later re your advice. Would you use a particular letter template, or just put it together myself?
Answering my questions is turning into a full time job:o

Hopelessly_Hopeful · 17 February 2013 at 10:41AM

Bettingmad wrote: »

It grates me that having accounts marked as AP will do more damage than if I just stopped paying and forced a default. At least with a default it drops of completely after 6yrs whilst AP markers will still be there at least 3yrs after the account is settled. Therefore if the DMP is for 6yrs then negative entries will remain for 3yrs longer than if a default had been issued. This is far from fair.

Thanks for this. I need to check out the website again as havent been down there for sometime.

APs have annoyed me for this reason too. This is the punishing side of the informal and random nature of DMPs IMHO.

Are you saying APs only stay on file for 3 years after they finish rather than 6?

HHx

Hopelessly_Hopeful · 17 February 2013 at 10:43AM

Julie67 wrote: »

Thanks HH. I am planning on writing to HSBC later re your advice. Would you use a particular letter template, or just put it together myself?
Answering my questions is turning into a full time job:o

Have a read through those sample letters on the debtline link. What I am saying is rather than pick and send say different four letters choose the paragraphs you need to stick all into one, so add in only in writing to this one and ask for refund etc

The Loan Company

Company House,

Church Street,

Newtown,

Kent,

R1 7HG

Dear Sir/Madam

Account No:

4563210025897412

Thank you for your Letter of DD/MM/YYYY concerning the above account.

We sorry that you feel unable to suspend interest charges on the above account. [ALL] of our creditors have agreed to suspend interest charges still accruing. They have accepted that to continue to charge interest would not assist us in our present financial difficulties, and can only serve to increase our total debt. (As you are aware, we have already paid considerable sums in interest to we account. If interest charges

continue the monthly instalments we are paying will not even cover that interest. Also, the cooperation

of we other creditors who have agreed to freeze interest already could be put at risk).

We would therefore be grateful if you would reconsider your decision not to freeze the interest. This would mean that the monthly payments we make would actually reduce the balance owing to your company.

We look forward to hearing from you as soon as possible.

Yours faithfully

Mr A N Other

HHx

Julie67 · 17 February 2013 at 10:44AM

Thank you HH I will do it today

Quarry · 17 February 2013 at 10:48AM

Hello all! I'm new to all this and am finding your posts very encouraging - I'm still terrified though. Can anyone give me an idea of how much I would need to be able to offer per month to have Stepchange manage my DMP?
I owe £28000 to 4 credit cards. I was made redundant and have been ill. I'm 59 and want to go back to work but there doesn't seem to be much chance.

Hopelessly_Hopeful · 17 February 2013 at 10:50AM

dad2one wrote: »

Hello all.
What a great little community this is then! Absolutely marvellous to see so much solidarity and support. I'm just going through my DMP application now. Will be great to have some spare cash and pay my debts off.
Anyone have experience of M&S finance? Are they reasonable?
I've not yet arranged a DMP but will have to send a letter and a token payment soon anyway.
Good luck all.

Hi M&S are my worst by far. 24.9% on one account and 25.9% on another. Suspended interest on one for a year then reinstated. Ask them to stop, then ask again, then report them, you have more chance of this is you do at the first few months before you get near minimum payments as this is their definition as to whether you are in financial difficulty. I have other creditors at 0% so in some ways we have to look at the combined sum not just get down about an individual creditor.

Hope that helps.

HHx

DMP & Mutual Support Thread - Part 9

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