DMP Mutual Support Thread (Part 5)

alfieg40

Hi Guys and Gals

I was just looking for some advice on whether it is worth me coming off a DMP to pay my creditors direct and paying them more money each month, but only if they remove the default's that they registered against me when i went on DMP. I may be getting a new job soon that will allow me to pay considerably more to my creditors, in most cases it will be twice the amount that they would want as a minimum payment under the Credit Agreement. Do you think that they would even entertain the idea of removing negatives to get all of their money back, rather than me asking for a reduced Full and Final in the near future.

Also, not all of my creditors defaulted me when i went on to DMP, is there not some kind of rule that is in place on how and when they can default, ie after a certain amount of missed payments. Three of my creditors accepted my reduced payment for the last 2 1/2 years and then out of the blue they suddenly defaulted me, even though i had not missed a payment. This annoys me a bit, as the defaults are all scattered, and so will come off at different times. I would have rather they all defaulted me 2 1/2 years ago when i went onto DMP as i would only have 3 1/2 years til they all come off. Now i am in the situation that two creditors defaulted me on Oct'08. It's very annoying.

Many thanks for any help you can provide.

geoffmr1

alfieg40 wrote: »

Hi Guys and Gals

I was just looking for some advice on whether it is worth me coming off a DMP to pay my creditors direct and paying them more money each month, but only if they remove the default's that they registered against me when i went on DMP. I may be getting a new job soon that will allow me to pay considerably more to my creditors, in most cases it will be twice the amount that they would want as a minimum payment under the Credit Agreement. Do you think that they would even entertain the idea of removing negatives to get all of their money back, rather than me asking for a reduced Full and Final in the near future.

Also, not all of my creditors defaulted me when i went on to DMP, is there not some kind of rule that is in place on how and when they can default, ie after a certain amount of missed payments. Three of my creditors accepted my reduced payment for the last 2 1/2 years and then out of the blue they suddenly defaulted me, even though i had not missed a payment. This annoys me a bit, as the defaults are all scattered, and so will come off at different times. I would have rather they all defaulted me 2 1/2 years ago when i went onto DMP as i would only have 3 1/2 years til they all come off. Now i am in the situation that two creditors defaulted me on Oct'08. It's very annoying.

Many thanks for any help you can provide.

It's entirely down to an individual if they want to come off the DMP although assuming your with a free one (ie CCCS or Payplan) I don't see the point in giving yourself the hassle. You'll have to write to all your creditors & as others have said previously sometimes they won't accept a self managed DMP.

I could be wrong but I don't think you'll have any luck getting them to remove defaults etc unless you're making a full & final settlement offers. Assuming I have understood what you are saying then you're only willing to increase the monthly payments. I can't see them removing defaults just because you pay more as it would leave them in a seriously weak position if you ever decided to reduce the payments again. Maybe you'd be better off putting the extra money aside each month into a separate bank account & then when it's built up make settlement offers.

alfieg40

geoffmr1 wrote: »

It's entirely down to an individual if they want to come off the DMP although assuming your with a free one (ie CCCS or Payplan) I don't see the point in giving yourself the hassle. You'll have to write to all your creditors & as others have said previously sometimes they won't accept a self managed DMP.

I could be wrong but I don't think you'll have any luck getting them to remove defaults etc unless you're making a full & final settlement offers. Assuming I have understood what you are saying then you're only willing to increase the monthly payments. I can't see them removing defaults just because you pay more as it would leave them in a seriously weak position if you ever decided to reduce the payments again. Maybe you'd be better off putting the extra money aside each month into a separate bank account & then when it's built up make settlement offers.

One of my key defenses to remove the negative payment history would have been that i would pay off the full amounts, so they get every penny, rather than settle with them. I think that i have read somewhere before that a creditor will do more for you if they get all of the money rather than you only paying 50% as a settlement.

jenevieve

Hi all,

Am in the process of setting up my dmp (due to start May 1st) and have had 2 letters through today:

One from NR acknowledging my token payment and letter but not accepting it as a reduced payment and still asking for my normal monthly payment until they have accepted a reduced one.

Another one from RMA - getting calls from them too - but ignoring those - asking about payment for my A&L CC.
I know they have received my letter and token payment because the cheque has been cashed.

Is this normal? Should I do anything specific? Am planning to send out my dmp notification letters and will be sending token payments for April at the end of the month.

:eek: :eek: :eek:

geoffmr1

alfieg40 wrote: »

One of my key defenses to remove the negative payment history would have been that i would pay off the full amounts, so they get every penny, rather than settle with them. I think that i have read somewhere before that a creditor will do more for you if they get all of the money rather than you only paying 50% as a settlement.

It's worth a try I suppose. At the end of the day the worst they can say is no, I wouldn't tell them about the new job just yet though incase they start thinking you have more money available than you're letting on. Just try it as a hypothetical scenario & see what they come back with.

The trouble you may have is that I'd assume you haven't been paying interest since you've been on the DMP so they would still be losing out on what they should have received if you'd maintained payments.

WorriedofSurrey

Hi

Another question, sorry!

I have a car loan with about 20 more payments to go (£90 per month). I do not want to include this in my DMP as I need to keep the car. Do I need to include this or is it OK to go on paying it?

Sorry, just trying to get my head round it all at the moment.

Thanks for any help.

WoS

kissthedebtgoodbye

hi i also have a car on finance and was advised that it doesn't get included on the DMP, i'd maybe just give CCCS or whoever your doing your DMP with a call. :cool:

Skintlady

a car loan is a priority debt so the cccs advises that you keep paying all of your priority credit such as mortgages, council tax, gas and leccy!! car loans (if you need a car for work etc)

If you were to stop car repayments they would just take the car away so they advise you pay everything you cannot afford to lose!!

Skintlady

alfieg i think the fact your creditors have frozen interest because of financial hardship means they probably won't play fair!!
They would have had years of interest off you in any other circumstance so i would tread carefully!
If you are in the position to clear off individual debts i wouldn't tell them about the change in your income i would prob keep the cash aside for full & final payments.
Your creditors might heap some interest on if they think you are in a good financial positon!!! or charge an early repayment amount!!

i think you might need to put up with the defaults as they are always reluctant to take these off!!!

kissthedebtgoodbye

Yeah exactly what skintlady says WoS.