CCCS Payments

MummyOnAMission_2

Hi just a quick question on this cold, wet Sunday morning. When cccs work out payments for creditors not pro-rata but depending on the contract. Contractural? Just wondered wot it meant. Does it mean the payment depends how long had the contract with them? Silly question I know but it is early
T I A

blissfulbabe

Hi

what it means is that they attempt to negotiate a pro rata payment but sometimes they have to make a larger payment to one or two creditors in order to make sure the DMP gets up and running. When I started my DMP (for 54K) I owed HSBC about 18K, which is less than 50% of the total owed, but they get over 65% of my monthly payment.

Try not to worry - the CCCS are very experienced at negotiating with creditors and will make sure that the payments are distributed as fairly as possible.

MummyOnAMission_2

many thanks for your reply!

Deep_In_Debt

Yep, one of my creditors receives slightly more than the pro-rated amount that CCCS tried to negotiate. It's worked ok as that particular creditor has accepted and frozen interest as a result and my dmp got up and running fairly quickly.

As other poster has said, CCCS know what they are doing and will be trying to get your dmp accepted as quickly as possible - don't worry!

Good luck.

hula-hoops

What happens if several creditors refuse flat-out to freeze interest? Does this actually happen, by the way?

I know that the old saying goes 'they can't take what you don't have' but what if they really stick to their guns? Does that mean the whole DMP is cancelled and you are back to square one?

Deep_In_Debt

hula-hoops wrote: »

What happens if several creditors refuse flat-out to freeze interest? Does this actually happen, by the way?

I know that the old saying goes 'they can't take what you don't have' but what if they really stick to their guns? Does that mean the whole DMP is cancelled and you are back to square one?

Yep, it does happen as they are not obliged to freeze interest. However, CCCS will keep sending payments to them as some creditors take time to accept the dmp.

When creditors refuse to accept, they often sell the debt to a DCA which normally works out better as DCA's tend to freeze interest and charges . I waited for a couple of my debts to be sold on and now they are with DCA's I can finally see the debt reducing.

skintandscared_2

Apparently it can sometimes take a while for them to freeze interest, if at all, so your debt can go up for a while as you're making less than minimum payments. It sounds like we've more chance of getting interest reduced or frozen with a DMC so I'm actually now hoping my creditors DO sell the debt on!!! Also, DMC's can eventually make lower F&F settlement offers (say, 45%) rather than the usual minimum that creditors themselves will accept (say, 70%).

Deep_In_Debt

skintandscared wrote: »

Apparently it can sometimes take a while for them to freeze interest, if at all, so your debt can go up for a while as you're making less than minimum payments. It sounds like we've more chance of getting interest reduced or frozen with a DMC so I'm actually now hoping my creditors DO sell the debt on!!! Also, DMC's can eventually make lower F&F settlement offers (say, 45%) rather than the usual minimum that creditors themselves will accept (say, 70%).

Exactly. I cleared a couple of my smaller debts that had gone to DCA's at 45% and 55% whereas the original creditors would accept nothing less than 70% and that was hard work negotiating that!

So it's not a bad thing if debts get "sold on". DCA's buy them for pennies in the pound so you have a better negotiating tool in my opinion.

I actually asked my creditors to sell the debts on - they thought they were being scary with me but not so, I wanted them to do it so I could finally see my debts reducing. One of mine was sold in July and I've heard nothing from them since August but they have frozen interest and charges.

CCCS will keep sending them the money and most creditors will sell the debt on within a few months when they don't want to receive reduced payments any more.

Good luck with it.