Ask a CCCS counsellor a question

CWSG

Hi there

August will be the first month of my DMP but it looks as though my direct debits won't be set up from my new account to cover those that go out in the first week of the month.

As I have already requested that my salary is paid into my new account I am very worried about how to handle this, especially as one of the DDs is for my mortgage! My new bank recommended that I withdraw cash from my new account and put it in the old account to cover the DDs but I am over my overdraft limit (hence the DMP!) and am scared that my old bank won't pay the DD requests. Is it possible to make a one-off manual payment or will the DD requests have already been sent to the DD companies? I'd really appreciate some advice on this as I don't want to default on my mortgage.

Also I will obviously need to make my first payment to CCCS by transcash but don't get paid until 29th July - will I meet the 1 August payment date for CCCS?

Some good news was that I received a letter from MBNA straight away accepting my payment plan and freezing interest - yay!

Thanks for your help.

CCCS_Alan

CWSG wrote: »

Hi there

August will be the first month of my DMP but it looks as though my direct debits won't be set up from my new account to cover those that go out in the first week of the month.

As I have already requested that my salary is paid into my new account I am very worried about how to handle this, especially as one of the DDs is for my mortgage! My new bank recommended that I withdraw cash from my new account and put it in the old account to cover the DDs but I am over my overdraft limit (hence the DMP!) and am scared that my old bank won't pay the DD requests. Is it possible to make a one-off manual payment or will the DD requests have already been sent to the DD companies? I'd really appreciate some advice on this as I don't want to default on my mortgage.

Also I will obviously need to make my first payment to CCCS by transcash but don't get paid until 29th July - will I meet the 1 August payment date for CCCS?

Some good news was that I received a letter from MBNA straight away accepting my payment plan and freezing interest - yay!

Thanks for your help.

Hi CWSG

Welcome on board.

You would be best contacting your lender and other priority DD to make an alternative payment arrangement with them just for this payment, just to make sure that you keep up to date with the priorities. You would need to check with them about the how the DD are standing at the moment and if they have the old or new bank details to avoid any further problems.

It would not be advisable to put anything into the old account as it may be swallowed up by that bank, and this would not help your situation.

As long as you can withdraw the money and make the first transcash payment on or before the 1st August you would be ok.

Regards

CCCS_Alan

CWSG

Thanks Alan, that's really helpful. I'll get on the phone to my DDs tomorrow and see what they say.

I just want to say a HUGE thank you to CCCS - the support is fantastic, I am starting to think there might just be a way out of this mess - just wish I'd known about you before now! :beer:

CCCS_Alan wrote: »

Hi CWSG

Welcome on board.

You would be best contacting your lender and other priority DD to make an alternative payment arrangement with them just for this payment, just to make sure that you keep up to date with the priorities. You would need to check with them about the how the DD are standing at the moment and if they have the old or new bank details to avoid any further problems.

It would not be advisable to put anything into the old account as it may be swallowed up by that bank, and this would not help your situation.

As long as you can withdraw the money and make the first transcash payment on or before the 1st August you would be ok.

Regards

CCCS_Alan

adler

When I recently asked HSBC for a copy of my credit card agreement, they have replied saying because this was issued prior to 2000 they don't have a copy of the agreement but have sent me "terms and conditions" instead.So does this mean this agreement is unenforceable and can I challenge this and refuse to pay back outstanding amount?(paid them enough in interest!)

katkins2

Hi,
I strated the ball rolling last night, completed the debt remedy and chose the option for DMP. I just have a couple of questions....

I understand that I will need to provide up to date balances for eachof my creditors. One of these is a loan which we don't receive any statements etc for. How will I be able to prove the outstanding balance on this? I am a little reluctant to ontact them by phone as I have just missed a payment to them (for the first time).

I have a current account which I have listed as one of my creditors as I have a £550 overdraft on it. I have set up a new account and am in the process of getting all my DD transferred over (have already moved my salary). This account has a charge of £17 per month with it. I cannot close the account becauseof the overdraft so will I have to continue to pay the £17 per month as it is still open? The fee on the account is for travel ins, phone ins, breakdown cover and £250 free overdraft, all of which I happy to get rid of.

Sorry for the long winded post, this is the last question.
Will the creditors still take action against me now that I have set up a DMP? I have only missed payments to the creditors for the first time this month so am not familiar with what their processes are. I'm a little nervous as to what to expect from them and wondering will I still end up with CCJ's even though I am trying to resolve my situation? I know at the end of the day I am defaulting on their agreements and have to face the consequences but I am losing sleep expecting debt collectors at my door any minute.

many Thanks

sandalwood_2

katkins2 wrote: »

Hi,
I strated the ball rolling last night, completed the debt remedy and chose the option for DMP. I just have a couple of questions....

I understand that I will need to provide up to date balances for eachof my creditors. One of these is a loan which we don't receive any statements etc for. How will I be able to prove the outstanding balance on this? I am a little reluctant to ontact them by phone as I have just missed a payment to them (for the first time).-All I did was look at the original loan taken out and deduct the payments I had made and gave them that figure,CCCS/Payplan (whoever u r with) will them get in touch and get a true balance

I have a current account which I have listed as one of my creditors as I have a £550 overdraft on it. I have set up a new account and am in the process of getting all my DD transferred over (have already moved my salary). This account has a charge of £17 per month with it. I cannot close the account becauseof the overdraft so will I have to continue to pay the £17 per month as it is still open? The fee on the account is for travel ins, phone ins, breakdown cover and £250 free overdraft, all of which I happy to get rid of.- I also had charge monthly on my bank account,after I entered the DMP I spoke to them and asked if they could downgrade my account to a current one with no charges,just said to them I would be able to pay the debt off quicker that way and they agreed(it was natwest)

Sorry for the long winded post, this is the last question.
Will the creditors still take action against me now that I have set up a DMP? I have only missed payments to the creditors for the first time this month so am not familiar with what their processes are. I'm a little nervous as to what to expect from them and wondering will I still end up with CCJ's even though I am trying to resolve my situation? I know at the end of the day I am defaulting on their agreements and have to face the consequences but I am losing sleep expecting debt collectors at my door any minute.-they cannot send anyone to your house unless a CCJ has been issued and you have defaulted on the payments agreed by the court-with regards to the above,go to http://forums.moneysavingexpert.com/showthread.html?t=1735087&page=50-there is so much info on here that will answer all your questions-it has helped me no end

Hope this explains a bit of what your after-do not worry-DMP is the best this I have done

Good luck

CCCS_Sarah

katkins2 wrote: »

Hi,
I strated the ball rolling last night, completed the debt remedy and chose the option for DMP. I just have a couple of questions....

I understand that I will need to provide up to date balances for eachof my creditors. One of these is a loan which we don't receive any statements etc for. How will I be able to prove the outstanding balance on this? I am a little reluctant to ontact them by phone as I have just missed a payment to them (for the first time).

I have a current account which I have listed as one of my creditors as I have a £550 overdraft on it. I have set up a new account and am in the process of getting all my DD transferred over (have already moved my salary). This account has a charge of £17 per month with it. I cannot close the account becauseof the overdraft so will I have to continue to pay the £17 per month as it is still open? The fee on the account is for travel ins, phone ins, breakdown cover and £250 free overdraft, all of which I happy to get rid of.

Sorry for the long winded post, this is the last question.
Will the creditors still take action against me now that I have set up a DMP? I have only missed payments to the creditors for the first time this month so am not familiar with what their processes are. I'm a little nervous as to what to expect from them and wondering will I still end up with CCJ's even though I am trying to resolve my situation? I know at the end of the day I am defaulting on their agreements and have to face the consequences but I am losing sleep expecting debt collectors at my door any minute.

many Thanks

Hi,
I strated the ball rolling last night, completed the debt remedy and chose the option for DMP. I just have a couple of questions....

I understand that I will need to provide up to date balances for eachof my creditors. One of these is a loan which we don't receive any statements etc for. How will I be able to prove the outstanding balance on this? I am a little reluctant to ontact them by phone as I have just missed a payment to them (for the first time). If you did call them, all you would need to say id that you are in the process of sorting your finances out and you need an up to date balance sending. Or if your account is online, you could take a print out.

I have a current account which I have listed as one of my creditors as I have a £550 overdraft on it. I have set up a new account and am in the process of getting all my DD transferred over (have already moved my salary). This account has a charge of £17 per month with it. I cannot close the account becauseof the overdraft so will I have to continue to pay the £17 per month as it is still open? The fee on the account is for travel ins, phone ins, breakdown cover and £250 free overdraft, all of which I happy to get rid of. You will need to write to your bank to cancel the additional services that you pay for. This money is better in your pocket than theirs!

Sorry for the long winded post, this is the last question.
Will the creditors still take action against me now that I have set up a DMP? I have only missed payments to the creditors for the first time this month so am not familiar with what their processes are. I'm a little nervous as to what to expect from them and wondering will I still end up with CCJ's even though I am trying to resolve my situation? I know at the end of the day I am defaulting on their agreements and have to face the consequences but I am losing sleep expecting debt collectors at my door any minute.

Try not to worry as you are now dealing with the situation. I have wrote the collection process for you below, but if there is anything that you are still unsure about please give us a call and we can talk through it with you.

• Once you start offering reduced payments you will start to receive collections letters, they generally go along the lines of ‘your account has fallen into arrears, please get in touch to bring the account up to date’. You don’t have to respond to these as they are standard system generated letters.
• After a couple of missed payments, the creditor will issue you with a default notice. This would stay on your credit file for six years. Again it’s noting to be worried about, you would just continue to make your payments. A default is a legal requirement that ends the contract between you and the creditor.
• Once the creditor has ended the agreement, they could choose to pass the debt onto a collection agency – they are not a bailiff and have no powers of a bailiff. If they do transfer the debt, give the CCCS a call and we will change who we are paying, so it’s still going to stay the same payment it just going to another company.
• Eventually they could pursue you for a CCJ, if so, it’s all done through paperwork and would be a blue and white court form from either your local county court or Northampton. The forms would ask you for your income, expenditure, list of debts and an offer of repayment. The offer of repayment would be the same amount again, as this amount is affordable to yourself and also fair to all your creditors. Once/if the debt becomes a CCJ; this would then need to be treated as a priority as it’s the court that is asking you to pay. If you were to not pay a CCJ, then this is when the court would send a bailiff or try and deduct the money from your income.

CCCS_Sarah

adler wrote: »

When I recently asked HSBC for a copy of my credit card agreement, they have replied saying because this was issued prior to 2000 they don't have a copy of the agreement but have sent me "terms and conditions" instead.So does this mean this agreement is unenforceable and can I challenge this and refuse to pay back outstanding amount?(paid them enough in interest!)

Hi Adler,

I would recommend that you contact an organisation called Community Legal Advice; they deal with legal issues and are able to tell you if the debt is enforceable. CLA can be contacted on 0845 345 4 345 or you could visit their website http://www.communitylegaladvice.org.uk/

Hope this helps
Sarah

adler

Thanks Sarah, that was very helpful.

CCCS_Sarah

adler wrote: »

Thanks Sarah, that was very helpful.

Anything that you are worried or unsure about just give me a shout.

Sarah