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  • FIRST POST
    • fermi
    • By fermi 10th Jul 15, 7:32 AM
    • 39,192Posts
    • 47,020Thanks
    fermi
    DMP & Mutual Support Thread - Part 11
    • #1
    • 10th Jul 15, 7:32 AM
    DMP & Mutual Support Thread - Part 11 10th Jul 15 at 7:32 AM
    Welcome to the DMP mutual support thread.

    Here you can find help in starting and running your DMP, self managed, Stepchange, Payplan and any other DMP all welcome here. There is help on getting interest and charges stopped, how to start with an emergency fund, defaults, token payments and lots more.

    If you are in a DMP or thinking of one, this is the place to be. We are a non judgemental and all questions welcome.
    Originally posted by Sazzie23
    Once again the old thread was getting a bit large, so here is a fresh thread.

    The previous thread can be found here: Click ---> DMP & Mutual Support Thread - Part 10

    Or click here for the last page of posts on the old thread. ---> Last Page

    Sazzie23's fantastic post of the month winning post from the previous thread is repeated below.

    Best wishes with the DMPs everyone.
    Last edited by fermi; 12-07-2015 at 9:50 AM.
    I'm a Board Guide on the Debt-Free Wannabe, Bankruptcy, Credit Cards and Loans boards. I'm a volunteer to help the boards run smoothly, and I can move and merge threads there. Any views are mine and not the official line of moneysavingexpert.com. Board guides are not moderators. If you spot an inappropriate or illegal post then please report it to forumteam@moneysavingexpert.com

    Free/impartial debt advice: National Debtline | StepChange Debt Charity | Find your local CAB

    IVA & fee charging DMP companies: Profits from misery, motivated ONLY by greed
Page 247
    • sourcrates
    • By sourcrates 13th Mar 17, 11:29 AM
    • 10,901 Posts
    • 10,562 Thanks
    sourcrates
    Carry on as you are billy.

    Stepchange pay your creditors "pro rata", dependent on how much you owe them, all will be fine, they cant take what you dont have can they, its that simple.

    Getting eveything defaulted should be your next goal.
    I'm a Board Guide on the Debt-Free Wannabe, Credit File And Ratings, and
    Bankruptcy And Living With It, boards. I'm a volunteer to help the boards run smoothly, and I can move and merge posts there.
    Board guides are not moderators and don't read every post. If you spot an abusive or illegal post then please report it to forumteam@moneysavingexpert.com. Any views are mine and not the official line of MoneySavingExpert.com.

    For free debt advice, contact either : Stepchange, National Debtline, or, CAB.
    For Legal advice see : http://legalbeagles.info/
    • henrryyyy
    • By henrryyyy 13th Mar 17, 11:36 AM
    • 36 Posts
    • 39 Thanks
    henrryyyy
    Well done on getting things set up. Before long you'll be feeling so much more relaxed about yourdebts. Don't forget, you are making efforts to repay them and not just walking away from them. Be proud of that

    Although I'm trying to repay my debts in the shortest time possible (being retired, time isn't on my side) I have found that even with a very stringent budget I have more money available to spend on the occasional small treat or not have to buy the cheapest, reduced stuff in the supermarket. That's because pre-DMP I was using every single penny I had to try to keep up with repayments (mainly the obscene amount of interest they were adding every month). Not only that but I was robbing Peter to pay Paul, paying the minimum on one maxed-out card only to immediately withdraw what was left at an ATM to repay the next card bill that was due. Horrible times. I often had only a small amount of loose change to pay for the weekend's food. By small I mean a toss up whether to buy, say, milk or bread. Both were impossible. I never have that problem nowadays. Without credit cards and with debt interest frozen I feel totally liberated.



    One thing in your post that spooked me a bit. You said one of your creditors had searched the Stepchange register for your details. I didn't know such a register existered or that creditors had access to it. Big Brother and all that


    Good Luck with your interest reclaiming. Don't forget to come back and let us know how you get on with it
    Originally posted by carbootcrazy
    I so know what you mean, even having £20 spare at the end of the month will seem like a luxury

    just had a reply from paydayexpress and payday uk refusing to send my statements, kinda expected from what i've read though

    if you wish to pay extra in a month do you pay that directly to your lenders or make an additional payment to stepchange?

    Its great your getting your debts sorted in your retirement! That shows real commitment



    Pursuing payday loan refunds is a good idea.

    Check out debt camel :


    Speaking to your creditors on the phone is not.

    Keep everything in writing :

    (1) so your message does not get lost.
    (2) so you have a record of what's been agreed.
    Originally posted by sourcrates
    Thanks, that site is really useful, going through the list of lenders made me remember companies i used that i forgot.
    I will start emailing instead of phoning, I like the immediate response of a phone call, but you are right, there is no record of whats agreed.
    • SeaBreeze
    • By SeaBreeze 13th Mar 17, 11:43 AM
    • 28 Posts
    • 14 Thanks
    SeaBreeze
    In the process of setting up a DMP with Step Change. They have advised setting up a new basic bank account and I wondered if it has to be a basic one if I am able to open a normal account , without an overdraft in place? I haven't missed any payments yet but will soon to say for a small emergency fund. Also do I need to tell the new bank that I will be starting a DMP?
    • January2015
    • By January2015 13th Mar 17, 12:04 PM
    • 1,692 Posts
    • 4,597 Thanks
    January2015
    In the process of setting up a DMP with Step Change. They have advised setting up a new basic bank account and I wondered if it has to be a basic one if I am able to open a normal account , without an overdraft in place? I haven't missed any payments yet but will soon to say for a small emergency fund. Also do I need to tell the new bank that I will be starting a DMP?
    Originally posted by SeaBreeze
    Theere's no reason not to open a new standard type bank account rather than a basic account if you can. The application form for a standard bank account is a bit more intrusive with questioning than a basic account but if you are okay with that then go for it.

    I don't believe there are any questions about debt problems, such as DMP. You could always open an account online and if you find the questions to intrusive just cancel the process and go for a basic account.
    DFW Nerd No. 1484 LBM 07/01/15 Debt was £95k I'm driving it down
    £1k emergency fund (member #84) £1k/£1k
    Xmas 2017 £1 p/day challenge No. 20 - £420/£730
    Make £10 p/day Feb £74.31, Mar £664.37 Apr £40
    • Billy12345
    • By Billy12345 13th Mar 17, 12:12 PM
    • 50 Posts
    • 74 Thanks
    Billy12345
    Carry on as you are billy.

    Stepchange pay your creditors "pro rata", dependent on how much you owe them, all will be fine, they cant take what you dont have can they, its that simple.

    Getting eveything defaulted should be your next goal.
    Originally posted by sourcrates
    Thanks Sourcrates.

    I have written to my other creditors asking them to default but no doubt this will take a while so watch this space.

    Ill keep on truckin with the payments when they restart in May.
    • henrryyyy
    • By henrryyyy 13th Mar 17, 12:30 PM
    • 36 Posts
    • 39 Thanks
    henrryyyy
    just received my stepchange pack, i assume my client reference number is the number 118118 were asking me for earlier?
    Also in the pack it states nowhere about when I would like the plan to start.
    Its also asking for account numbers, I assume for credit cards its just my credit card number, and loans i'll have to ask the companys for them
    • carbootcrazy
    • By carbootcrazy 13th Mar 17, 12:40 PM
    • 3,685 Posts
    • 20,497 Thanks
    carbootcrazy

    ....if you wish to pay extra in a month do you pay that directly to your lenders or make an additional payment to stepchange?
    Originally posted by henrryyyy
    Stepchange definitely frown on clients making additional payments themselves to creditors. That's one of the reasons a lot of people start out their DMP life with SC and then move on to self-management once they've gained more knowledge and confidence. It allows for a lot more flexibility over payments.


    If you can afford to repay more every month on a regular basis then you could phone SC and do a budget review. This doesn't just have to be done annually. If it's just the occasional 'one off' extra repayment I don't think I'd bother to be honest. Why not save any extra in an Emergency Fund? You never know when you'll be landed with an unexpected bill and, having no access to credit, it can cause no end of panic. Been there, done that
    Last edited by carbootcrazy; 13-03-2017 at 12:43 PM.
    Make £10 A Day Challenge 2017. Jan-May: £1620.98. June: £146.10
    3-6 Months Emergency Fund Challenge #12: £1200.00/£3000. This is such hard going but I will do it.

    Original Debt: £56804 (@ LBM 02/13). Paid : £32316. Balance: £24488
    • January2015
    • By January2015 13th Mar 17, 12:40 PM
    • 1,692 Posts
    • 4,597 Thanks
    January2015
    just received my stepchange pack, i assume my client reference number is the number 118118 were asking me for earlier?
    Also in the pack it states nowhere about when I would like the plan to start.
    Its also asking for account numbers, I assume for credit cards its just my credit card number, and loans i'll have to ask the companys for them
    Originally posted by henrryyyy
    Yes - the client reference is your Stepchange number for quoting to creditors.

    When you send the pack back to SC, put in a covering letter telling them when you want the plan to start, ie. the date you want your first DD collected by them - usually 1st of each month - so pick a month.

    Loan account numbers - are you still able to log into your bank and look at statements? The reference numbers for the loans will be the payment reference on the DD to each loan.
    DFW Nerd No. 1484 LBM 07/01/15 Debt was £95k I'm driving it down
    £1k emergency fund (member #84) £1k/£1k
    Xmas 2017 £1 p/day challenge No. 20 - £420/£730
    Make £10 p/day Feb £74.31, Mar £664.37 Apr £40
    • kb_soma
    • By kb_soma 13th Mar 17, 12:52 PM
    • 255 Posts
    • 1,967 Thanks
    kb_soma
    Hey everyone! I've been absent a while. Good luck to everyone just starting off, this is the toughest bit. I had my dmp with stepchange and they were great, as were the chaps on this forum. Once you get this bit out of the way, the rest is really quite easy. Well done for getting this far. Xxx
    LBM: NOVEMBER 2011 || debt free date:30/06/15 || The Fighting Debt Army: #442 || Frugal Living Challenge 2015 || August 2015 Grocery Challenge £38.08/£100 || September 2015 Grocery Challenge £30/100
    • alianza
    • By alianza 13th Mar 17, 12:54 PM
    • 25 Posts
    • 26 Thanks
    alianza
    Just received two letters re my credit card CCA requests. One has a photocopy of my original signed application and a lot of the financial conditions for the use of the credit card so i guess that covers it (will need to go back and check what information is included and what it should include just to be sure) and so now will probably look to negotiate a payment or settlement with them The other letter told me they are still waiting for further documents and it is currently deemed unenforceable although they may still ask me to pay, pass it on and continue to report mt with credit reference bureaux.
    • sourcrates
    • By sourcrates 13th Mar 17, 1:27 PM
    • 10,901 Posts
    • 10,562 Thanks
    sourcrates
    Just received two letters re my credit card CCA requests. One has a photocopy of my original signed application and a lot of the financial conditions for the use of the credit card so i guess that covers it (will need to go back and check what information is included and what it should include just to be sure) and so now will probably look to negotiate a payment or settlement with them The other letter told me they are still waiting for further documents and it is currently deemed unenforceable although they may still ask me to pay, pass it on and continue to report mt with credit reference bureaux.
    Originally posted by alianza
    There were instances were application forms also doubled as credit agreements, but not always.

    You asked for a credit agreement, not an application form.

    Depends what it says on it, and what date is on it.
    I'm a Board Guide on the Debt-Free Wannabe, Credit File And Ratings, and
    Bankruptcy And Living With It, boards. I'm a volunteer to help the boards run smoothly, and I can move and merge posts there.
    Board guides are not moderators and don't read every post. If you spot an abusive or illegal post then please report it to forumteam@moneysavingexpert.com. Any views are mine and not the official line of MoneySavingExpert.com.

    For free debt advice, contact either : Stepchange, National Debtline, or, CAB.
    For Legal advice see : http://legalbeagles.info/
    • alianza
    • By alianza 13th Mar 17, 1:34 PM
    • 25 Posts
    • 26 Thanks
    alianza
    cca reply
    There were instances were application forms also doubled as credit agreements, but not always.

    You asked for a credit agreement, not an application form.

    Depends what it says on it, and what date is on it.
    Originally posted by sourcrates
    Well the photocopy says (priority request form' and then 'credit agreement regulated by the consumer credit act 1974' at the top the it does have my correct name address the date of 6/3/02 and a lot of clauses about the use of credit cards and a chart showing all the interest rates for retail transactions and balance transfers for various credit limits. I guess thats ok, at least i got a result on the other one.
    • Woody26
    • By Woody26 14th Mar 17, 11:30 AM
    • 3 Posts
    • 1 Thanks
    Woody26
    This thread looks so helpful...I'm not sure if anyone could help me.... I started a debt management plan in December 2011. As a consequence of this I received a number of defaults which will likely fall off of my account early next year.

    However, there were a few accounts (Barclaycard, Vanquis, MBNA) who instead of defaulting me, added a note to my credit file stating 'debt management programme' with a start and finish date (most of which are incorrect dates).

    I have spoken to a mortgage advisor who has stated that some mortgage companies require you to wait until 3-6 years after the DMP is completed as opposed to the date you started the DMP before they would consider you for a mortgage. Does anyone know if this is correct?

    Also, is there any likelihood that if I wrote to the companies these notes would be removed, the debts with these companies has now all been settled.

    I find it hard to believe that a default drops of 6 years from start date however a note on a file regarding a debt management plan stays on for 6 years until this has been satisfied.

    Thank you in advance
    • BeingDebtFreeStartsHere
    • By BeingDebtFreeStartsHere 14th Mar 17, 8:08 PM
    • 256 Posts
    • 780 Thanks
    BeingDebtFreeStartsHere
    Hi all,

    After MrsSammyB's advice I am going to write to the Co-op to see if I can get them to default our account. I was going to send them the following letter:


    Dear Sir/Madam,

    We are writing to raise a formal complaint is respect of the loan account (number xxxxxx) which we have with your bank. This is currently being managed via a debt management plan through StepChange Debt Charity.

    The Co-operative Bank has now known about our financial difficulties since we commenced our DMP in October 2014 however, despite two letters stating the account would be defaulted last Autumn, our account is still showing as 'late payment' on our credit report.

    We feel we are not being treated fairly as the delay in issuing a default will have a continued negative impact on our credit score.

    As a resolution to this formal complaint, and in line with the recommendations set out by the FCA to treat customers who are in arrears fairly, we request that a default is applied to our account and backdated to the start of our DMP in October 2014.

    We look forward to your prompt response.


    Does this sound ok??? Should I use more direct quotes from the FCA handbook??

    Any advice/alterations greatly received

    BDFSH x
    LBM - August 2014
    DMP - started October 2014
    Total Debt Sept 2014 - £70,905.57 Apr 2017 £56,116.31 (20.8% paid) but proud to be in control and paying back what we've borrowed
    • DancingUnicorn
    • By DancingUnicorn 14th Mar 17, 8:49 PM
    • 42 Posts
    • 34 Thanks
    DancingUnicorn
    Thank you so much for the support! SC made out to me that token payments were required and since this was only £6 a month I kind of went with it.
    But that's all over now. I got an email today saying my DMP is all set up and my first payment will come out on 1st April. So excited! I'm assuming everyone agreed to 0% but I'll keep an eye on everything and check this is the case.
    Slowly working my way to reading other things going on round here and hopefully I can be some help to others as I learn throughout the process
    October 2016: £20,130
    March 2017: £19,560
    DFD: February 2024
    • motivated
    • By motivated 14th Mar 17, 9:16 PM
    • 1,527 Posts
    • 1,640 Thanks
    motivated
    Thank you so much for the support! SC made out to me that token payments were required and since this was only £6 a month I kind of went with it.
    But that's all over now. I got an email today saying my DMP is all set up and my first payment will come out on 1st April. So excited! I'm assuming everyone agreed to 0% but I'll keep an eye on everything and check this is the case.
    Slowly working my way to reading other things going on round here and hopefully I can be some help to others as I learn throughout the process
    Originally posted by DancingUnicorn
    Well done for getting your DMP all sorted. My first payment is also 1st April. Ill meet you at the starting post. I'm actually excited about getting started too
    Good luck with your journey and keep reading, I have learnt so much on this site especially this thread. The support and advice is amazing.
    M
    I have arrived in DMP Land and I like it. I may stay a while
    Started April 2017

    Short term goal 280/1723.27
    • January2015
    • By January2015 14th Mar 17, 9:33 PM
    • 1,692 Posts
    • 4,597 Thanks
    January2015
    Thank you so much for the support! SC made out to me that token payments were required and since this was only £6 a month I kind of went with it.
    But that's all over now. I got an email today saying my DMP is all set up and my first payment will come out on 1st April. So excited! I'm assuming everyone agreed to 0% but I'll keep an eye on everything and check this is the case.
    Slowly working my way to reading other things going on round here and hopefully I can be some help to others as I learn throughout the process
    Originally posted by DancingUnicorn
    Don't assume all predators agreed to 0%. Check your statements/letters and keep chasing until they do agree to zero interest.

    Barclaycard refused to zero interest on one of our accounts because we were paying 0.03% above the minimum 1% they set as a bar for zeroing interest, i.e. you have to pay 0.99% or less. So we moved to £1 payments. Been at this rate for over a year now. They stopped interest and we got all interest charged refunded (back to start date of DMP) but it was a battle of multiple letters and threats from us. We got there eventually though.

    StepChange won't let you play tactically like this - which is why, after one year of being with SC we went self managed.

    Fingers crossed for you that you don't have any problems - but do keep an eye on all accounts.
    DFW Nerd No. 1484 LBM 07/01/15 Debt was £95k I'm driving it down
    £1k emergency fund (member #84) £1k/£1k
    Xmas 2017 £1 p/day challenge No. 20 - £420/£730
    Make £10 p/day Feb £74.31, Mar £664.37 Apr £40
    • January2015
    • By January2015 14th Mar 17, 9:53 PM
    • 1,692 Posts
    • 4,597 Thanks
    January2015
    Hi all,

    After MrsSammyB's advice I am going to write to the Co-op to see if I can get them to default our account. I was going to send them the following letter:


    Dear Sir/Madam,

    We are writing to raise a formal complaint is respect of the loan account (number xxxxxx) which we have with your bank. This is currently being managed via a debt management plan through StepChange Debt Charity.

    The Co-operative Bank has now known about our financial difficulties since we commenced our DMP in October 2014 however, despite two letters stating the account would be defaulted last Autumn, our account is still showing as 'late payment' on our credit report. credit reference agencies still report this account as 'late payment'

    We feel we are not being treated fairly as the delay in issuing a default will have a continuedan unnecessarily extended negative impact on our files held at credit score reference agencies.

    As identified in the Information Commissioner's Office 'Principles of the Reporting of Arrears, Arrangement and Defaults at Credit Reference Agencies'
    a default should be registered when a customer is three months in arrears. It was clear at the point we needed to enter a debt management plan that we were unable to meet contractual payments on this account, and that we would be in a DMP for several years. We therefore feel a default should have been recorded at the point we entered the DMP.

    As a resolution to this formal complaint, and in line with the recommendations set out by the FCA to treat customers who are in arrears fairly, we request that a default is applied to our account and backdated to the start of our DMP in October 2014.

    We look forward to your prompt response.


    Does this sound ok??? Should I use more direct quotes from the FCA handbook??

    Any advice/alterations greatly received

    BDFSH x
    Originally posted by BeingDebtFreeStartsHere
    My two pence worth in red above

    Link to where I quote ICO


    Edit: I changed bit about credit score - no such thing really. It's just a score the credit reference agencies generate. Lenders make their own decisions and a CRA score is pointless in that respect. It's the information recorded on your CRA files that is important...not a ficticious score.
    Last edited by January2015; 14-03-2017 at 10:02 PM.
    DFW Nerd No. 1484 LBM 07/01/15 Debt was £95k I'm driving it down
    £1k emergency fund (member #84) £1k/£1k
    Xmas 2017 £1 p/day challenge No. 20 - £420/£730
    Make £10 p/day Feb £74.31, Mar £664.37 Apr £40
    • sourcrates
    • By sourcrates 14th Mar 17, 9:57 PM
    • 10,901 Posts
    • 10,562 Thanks
    sourcrates
    This thread looks so helpful...I'm not sure if anyone could help me.... I started a debt management plan in December 2011. As a consequence of this I received a number of defaults which will likely fall off of my account early next year.

    However, there were a few accounts (Barclaycard, Vanquis, MBNA) who instead of defaulting me, added a note to my credit file stating 'debt management programme' with a start and finish date (most of which are incorrect dates).

    I have spoken to a mortgage advisor who has stated that some mortgage companies require you to wait until 3-6 years after the DMP is completed as opposed to the date you started the DMP before they would consider you for a mortgage. Does anyone know if this is correct?

    Also, is there any likelihood that if I wrote to the companies these notes would be removed, the debts with these companies has now all been settled.

    I find it hard to believe that a default drops of 6 years from start date however a note on a file regarding a debt management plan stays on for 6 years until this has been satisfied.

    Thank you in advance
    Originally posted by Woody26
    Hi,

    That is the problem with arrangement to pay markers unfortunately, they stay on your file 6 years after the debt has been settled.

    It's an awkward situation, because if you ask them to default you, there could be further issues with the default date, however you could write asking them to :

    (A) default you
    And
    (B) backdate the default to the start date of your DMP.

    According to guidelines, they should default you after 3/6 missed contracted payments.
    I'm a Board Guide on the Debt-Free Wannabe, Credit File And Ratings, and
    Bankruptcy And Living With It, boards. I'm a volunteer to help the boards run smoothly, and I can move and merge posts there.
    Board guides are not moderators and don't read every post. If you spot an abusive or illegal post then please report it to forumteam@moneysavingexpert.com. Any views are mine and not the official line of MoneySavingExpert.com.

    For free debt advice, contact either : Stepchange, National Debtline, or, CAB.
    For Legal advice see : http://legalbeagles.info/
    • BeingDebtFreeStartsHere
    • By BeingDebtFreeStartsHere 14th Mar 17, 11:23 PM
    • 256 Posts
    • 780 Thanks
    BeingDebtFreeStartsHere
    My two pence worth in red above

    Link to where I quote ICO


    Edit: I changed bit about credit score - no such thing really. It's just a score the credit reference agencies generate. Lenders make their own decisions and a CRA score is pointless in that respect. It's the information recorded on your CRA files that is important...not a ficticious score.
    Originally posted by January2015
    January you are an absolute star

    Thank you sooooo much xx
    LBM - August 2014
    DMP - started October 2014
    Total Debt Sept 2014 - £70,905.57 Apr 2017 £56,116.31 (20.8% paid) but proud to be in control and paying back what we've borrowed
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