DMP Mutual Support Thread (Part 5)

trying_to_stay_positive_2

Hi, I am still a bit confused about applying for CCA s. My payments are still up to date as I havent decided for sure weather to start on a DMP or not, I have read that as soon as you request a CCA your account in in dispute, and no action can be taken, what does this mean? Will I still be able to make my monthly payments? Will they still request them and charge intrest? Thanks for any help its all so confusing.

rainman31

St0lli wrote: »

Its all go in St0lli land tolday!

Just received lettere from MBNA telling me they've received my I&E form and letter (from CCCS) and informing me that the amount I'm offering is not sufficient to prevent a default payment registering on your credit file and the balance may be legally assigned to a third party. They will be in regular contact with me (deep joy) to ascertain whether my circumstances have changed. In the meantime we recommend you continue to make the payments I can afford.

Obviously this is a summary of what the letter states but there is no mention of them actually accepting my DMP or stopping charges or interest. Anyone else had anything like this from them?

Happy weekend everyone!!!! (except CC companies and DCA's of course :rotfl:)

I'm dealing with MBNA as well and recieved the same letter. On ringing them they were fine about the DMP payment but they said that if I could try and pay roughly 1% of the balance as a reduced payment then they would not sell on to a DCA. They also said that the policy is to sell on after 4-5 months.

On another note, everyone has been fine except HSBC :mad: Was forced to send a harrassment letter last week which they recieved Tues. Since then I have STILL recieved 2 calls per day. Official complaint on the horizon methinks :rotfl:

St0lli

Thanks Rainman.... I can't see CCCS letting me pay any more as they have pro rata'ed (if thats a word!) my cash over my creditors.

Guess I'll hve the pleasure of being contacted by a DCA in 4-6 months

Lloyds TSB seem to be my nemisis.... had another phone call just after 6pm from them - thank goodness for caller ID!

cocker100

trying_to_stay_positive wrote: »

Hi, I am still a bit confused about applying for CCA s. My payments are still up to date as I havent decided for sure weather to start on a DMP or not, I have read that as soon as you request a CCA your account in in dispute, and no action can be taken, what does this mean? Will I still be able to make my monthly payments? Will they still request them and charge intrest? Thanks for any help its all so confusing.

Hiya,

Right, lots of questions but here goes:

1) You can request your CCA at any time, whether the account is up to date or in arrears.

2) You can still make normal payments after you request your CCA.

3) Your creditor will still request payment and charge appropriate interest.

4) Your creditor DOESN'T dispute the account, you do.

5) The account automatically becomes disputed only if the creditor fails to comply with your request for the CCA under the Consumer Credit Act 1974 (Sections 77-79) within the allowed time. This is 12 working days, plus 2 days for posting. If they produce a valid agreement, then the dispute is lifted and you have to continue the account as normal. ( But not many do):D

6) A lot of people only request a CCA after they have entered into financial difficulties and are not keeping up with the contractual payments. If the creditor fails to provide a valid CCA, then as the account is then disputed, no enforcement acton can be taken. (i.e. they cant take you to court for non payment)

Hope this all helps,

For more information, check out this thread:

http://forums.moneysavingexpert.com/showthread.html?t=767025

Cocker:)

massivedebts

Good Evening:D

MSC - How lovely to hear from you!!:j :j :j

Cocker - I read on another thread about applying for CCA's on loans/cc's taken out prior to Apr 2007, do you know if this is the case. I've got the letter that someone very kindly found for me on here ready o go, but as all my loans/cc's are post Apr 2007 not sure that it's worth doing. I did ask the Q on the thread that I read it on, but now can't find it to see if RAS replied.

Ciao:cool:

MD xx

cocker100

massivedebts wrote: »

Good Evening:D

MSC - How lovely to hear from you!!:j :j :j

Cocker - I read on another thread about applying for CCA's on loans/cc's taken out prior to Apr 2007, do you know if this is the case. I've got the letter that someone very kindly found for me on here ready o go, but as all my loans/cc's are post Apr 2007 not sure that it's worth doing. I did ask the Q on the thread that I read it on, but now can't find it to see if RAS replied.

Ciao:cool:

MD xx

Hiya,

I think you can still request a CCA from any agreement of any age, but the regulations changed in April 2007 and the creditors cleaned up their act. This means the chances of the agreement being flawed after this date are quite remote as what is required to be included in the credit agreement after April 2007 is different compared to pre April 2007 agreements.

Cocker:)

rainman31

St0lli wrote: »

Thanks Rainman.... I can't see CCCS letting me pay any more as they have pro rata'ed (if thats a word!) my cash over my creditors.

Guess I'll hve the pleasure of being contacted by a DCA in 4-6 months

Lloyds TSB seem to be my nemisis.... had another phone call just after 6pm from them - thank goodness for caller ID!

Me too I can't pay any more for at least 12 months. Hey ho, bring it on, one day at a time.

It's funny that the worst creditors are, in our case, two of the big four banks. And all the bloomin taxes we are/ will be paying to bail some of them out. Makes me :mad: :mad:

St0lli

rainman31 wrote: »

Me too I can't pay any more for at least 12 months. Hey ho, bring it on, one day at a time.

It's funny that the worst creditors are, in our case, two of the big four banks. And all the bloomin taxes we are/ will be paying to bail some of them out. Makes me :mad: :mad:

Yes it definitely makes my blood boil as well! :mad:

What my simple brain doesn't understand is how the CC Companies can get away with the interest rates they charge. At one time my MBNA card went up to 34.9%!!! How do they justify that with the current Bank of England base rate?
I'm not denying I've run up the debt but I certainly wouldn't be in this situation if it weren't for the astronmical interest rates.... Surely their overheads aren't that much??

Anyway thats my rant over :mad:

I will now go off and sniff some lavender oil, listen to some whale music and think positive thoughts of peace and goodwill to all men kind.... Well actually I think I'll go and have a glass of wine :rotfl: Stuff the lot of 'em!!!:rotfl::rotfl::rotfl::rotfl::rotfl::rotfl::rotfl::rotfl:

msc1977

massivedebts wrote: »

Good Evening:D

MSC - How lovely to hear from you!!:j :j :j

Cocker - I read on another thread about applying for CCA's on loans/cc's taken out prior to Apr 2007, do you know if this is the case. I've got the letter that someone very kindly found for me on here ready o go, but as all my loans/cc's are post Apr 2007 not sure that it's worth doing. I did ask the Q on the thread that I read it on, but now can't find it to see if RAS replied.

Ciao:cool:

MD xx

Hi MD - how are you?

I havent been posting much as all has been relatively quiet on the DMP front, although i have been lurking;) ! The defaults are rolling in and so are the rejections of our DMP payment offers so whilst i've been a bit deflated i've been thankful that we havent had any phone calls etc..... A little panic has set in over possible CCJ's etc but i think i'm going to look into the CCA thread that's on here and see how we go. I've also set up my CCCS dd ready for 1st April so OH doesnt have to go with a pile of cash to the PO.:o

On a brighter note for the first time since DD started school in September we have been able to afford for her to have hot lunches....the look on her little face when we gave her the choice this week has made all this worthwhile. :j Its only 1.75 a day but thats nearing on 40 quid a month and when you're doing the peter and paul juggle its just not possible to find an extra 40 quid!!!

Take Care everyone and welcome to yet more newbies - its fantastic to see so many people taking back control of their money. xxxx

cocker100

Hi all,

I've been doing some digging to find out more information on creditors stopping interest after issuing a default notice, as I know some people have querried what I have said in a previous post on this.

Firstly, in my own experience with my DMP, all accounts that have been defaulted have had interest stopped immediately. Not after several month, but from the very month of the default. These accounts are with Mint, Tesco, MBNA, Morgan Stanley(Goldfish) and Lloyds TSB. These a four different banking groups (Mint and Tesco are both RBS) and each one has acted the same. Some took longer to default than others, but the same outcome happened with all. No interest after default!

Only Barclaycard have yet to default me, but they too have stopped all interest. In fact, they have from the very beginning.

From reading through pages and pages of posts on various sites, this has happened to lots of other people too. However, after hours looking into this, I cant find a definate answer either way, but I have found the following facts.

1) A DCA cannot add interest to a defaulted account after they purchase it.

2) A default notice not only means you have failed to keep to the agreement, it also means that the agreement has been cancelled by the creditor.

3) A creditor cant bump up the interest rate, once the account has defaulted.


I've also found the following in the Consumer Credit Act 1974 Section 93:

The debtor under a regulated consumer credit agreement shall not be obliged to pay interest on sums which, in breach of the agreement, are unpaid by him at a rate -

(a) where the total charge for credit includes an item in respect of interest, exceeding the rate of that interest, or

(b) in any other case, exceeding what would be the rate of the total charge for credit if any terms included in the total charge for credit by virtue of section 20 (2) were disregarded.

I've also found that any interest charged needs to be clearly stated in the terms and conditions to the agreement, so requesting a CCA to see if it is enforceable is a very good idea because if they cant produce valid agreement and the account remains in dispute, they must stop all interest to the account under the terms of the Consumer Credit Act 1974 until the dispute is resolved!

Like I've said previously, how many times have you heard a creditor say, "we have to issue you with a default so we can stop all charges and interest on the account"?

Please dont think that I am having a go at anyone who has questioned what I have said because I am not, I am merely putting my side of the argument accross. I am not a legal expert and all information I give is my genuine beliefs from what I have researched online and from my own personal experiences in dealing with debt.

From what I can gather, I still believe that once you get issued with a default notice, the interest on the account is very likely to stop!!!;)

Cocker:)