dmp confusion...what do they mean...?

sylviemylove

Hi all

Had a bad weekend, kids set fire to the garden, I have no water til tomorrow, I am pregnant and all alone with a toddler!

Anyway.....

After lengthy sobbing sessions with cccs my dmp started officially today, being the 1st payment date. I wrote to my creditors,

Alliance and leicester - £13300 loan 7.9% and
Abbey/Santander - £1700 credit card 0% til 0309

explaining my situation, apologising, and saying that the cccs would be contacting them shortly.

I offered A and L £114 pm (supposed to pay £230)
and Abbey £15pm (supposed to pay £5 minimum, 0% til March 09 then the minimum would go up.)

I recently get a letter from A and L saying they will accept this for 6 months but no reference to the interest. They also say the following-

"Even if you maintain the above arrangement should the arrears be, or become the equivalent of 2 monthly payments we may issue a 28-day notice of our intention to record you account as being in default. If a default notice is issued we reserve the right to take further action to recover the debt which may include the instruction of external debt recovery agents or litigation."

As far as I can tell, within 4 months I will have accrued 2 months worth of arrears so this will occur even before their 6 month period of grace. Does this mean that I will inevitably get served this default notice?

In real terms what will that mean for me?

And litigation?! Can they take me to court if I am offering them every penny I can afford?

Help!!!!

rayday2

A default notice basically means that you have defaulted on the original credit agreement you signed. In terms of a DMP it can be good news as it usually (differs for different creditors) means that interest will stop and they accept lower payments or sell it onto a debt collecting agency who will take lower payments.

Please do not worry it is part of the process of a DMP the sooner you get any defaults the better as they stay on your history for 6 years so the sooner you get them the sooner they will fall off.

I would worry more about your water! Hope things sort themselves out your end.

sylviemylove

Thanks rayday. I get so frightened. I've lost all confidence in my ability to even understand a letter!

Got a lovely friend coming round tomorrow to fit new taps, was too nervous to call a plumber. Worry that they look at a young pregnant woman on her own with a kid and just charge what they fancy. I did try and fix it myself with my readers digest diy manual, but sadly it wasn't as simple as a washer being replaced!!

Thanks again Rayday x

rayday2

I think we have that book, we manage to get faults not covered by it too though. Good luck with your taps hopefully a simple thing for your friend.

Take care