DMP Mutual Support Thread (Part 5)

Tigert

Hi Jon,

I got sent a similar "assessment form" from capital one also asking for wageslips and bank statements. Payplan told return it blank with another copy of my payplan budget or to just ignore it and they would issue another copy.

It all worked out fine for me. I think HSBC may well try and sell you one ofthere own products or suggest something that is more beneficial to them than your other creditors.

moneybuster

do they always harass for balance sheets surely the one you fill out for pay plan will do. how often do they repeat themselves lol


regards Moneybuster

massivedebts

Good afternoon all:beer:
Hello Moneybuster, nice of you to join us!:j

I'm still very new with regards all this DMP lark, my DMP starts 1st April with CCCS:j . I too had all the worries of charging orders etc, in fact that and the thought of debt collectors knocking on my door nearly convinced me NOT to take out a DMP, however after posting all my fears to the guys on here:A and talking them through with the chap at CCCS made me realise that there is nothing to be scared of worried about!
Yes!! it may happen that one of my creditors takes me to court and goes for a charging order, but I'm not going to worry about it until they do.;)

You need to keep positive, you ARE doing the right thing.:T You'll have bad days don't get me wrong but the good days far out weigh the bad ones. I first posted on this thread at the end of Jan, and I cannot believe the change in me in less than 2 months.:cool:
I can't answer the Q about balance sheets etc I'm afraid as I've not been asked for those yet.
I sent all my token payments for March - I'd never missed a payment prior to this- and have rec'd my c/c bills as normal showing my £1 payment and the £12 charge and interest that they have so kindly put on there too:mad: . I haven't rec'd any nasty calls................yet ..............and have had 2 letters both accepting my payments, so I'm feeling in a good place at the moment, I won't count my chickens just yet.:rolleyes:
Sory to have gone on:o , but I just want to tell you (and all you lurkers out there), that you ARE doing the right thing and you WILL feel good about it in the not too distant future.:A
Take care and WELL DONE for dealing with those debts.:T
MD xx

moneybuster

That made me feel so much better still waiting for my final phone call from pay plan to set up the DD feel i little nervous at this but hey ho will have to get on with it, i am worried about charging orders and CCJs but as you say will worry about that when IF it happens many thanks for your kind post.

kind regards Moneybuster

massivedebts

MB
I was absolutely bricking myself re charging orders:o , and found myself becoming a bit obsessed with trying to find posts about them on here.......not a good idea! I found this awful thread about Northern Rock who were treating this lady terribly (according to the thread), I got myself into a right 2 n 8, as NR are one of our creditors, so I'd convinced myself that they were going to do the same to me!:o Yet there's was the first letter acknowleding my £1 payment and again accepying my offer.:D So try not to worry and try not to read too much on this site. it's addictive, I know!;) I now try just to stick to this thread and the old style boards, so I don't come accross any other scary posts.;)
Keep smiling:j
MD xx

rcpbiggles

Oh I'm sooo hoping someone can reassure me!

I'm about to send all my statements etc back to CCCS. A big concern of mine has been that one of my creditors lumped all the interest onto my loan in the statement. ie, they report the balance at over £14,000 but I entered the amount as £9,000 on the cccs website as this was the amount we borrowed.

I've been back on the CCCS site and re entered all our figures and adjusted this loan to £14,000 and now the recommendation is a LOW START DMP :eek:

What is the difference please and which figure is the real one? Worried sick as I really thought things would be better on a DMP but if it's a low start one I'm not sure what will happen

Please let there be someone out there that can help!!

cocker100

rcpbiggles wrote: »

Oh I'm sooo hoping someone can reassure me!

I'm about to send all my statements etc back to CCCS. A big concern of mine has been that one of my creditors lumped all the interest onto my loan in the statement. ie, they report the balance at over £14,000 but I entered the amount as £9,000 on the cccs website as this was the amount we borrowed.

I've been back on the CCCS site and re entered all our figures and adjusted this loan to £14,000 and now the recommendation is a LOW START DMP :eek:

What is the difference please and which figure is the real one? Worried sick as I really thought things would be better on a DMP but if it's a low start one I'm not sure what will happen

Please let there be someone out there that can help!!

Please dont be alarmed! I'm sure this can still be sorted out ok.

Firstly, the only difference with a low start DMP, is exactly what it states. All it means is that your monthly payment is quite low in proportion to the amount of debt owed. This means that the monthly DMP payment to each creditor is far less than the actual contractual payment you were paying before starting the DMP.

I dont know your total debt figure, but if you would like a comparison to mine, here goes:

At the start of my DMP, we had a total debt of approx £38000 and our original monthly DMP payment was £200 split between 7 accounts. Eventually, all our creditors accepted our DMP and I would say that they were only getting approx a quarter of the original payment. They may start asking for more further down the line, like a couple of our creditors have done, but getting the DMP up and running is the main thing to start with.

As for the interest on your loan, I think the creditor is allowed to add the interest onto the debt, as they would have received this interest in monthly payments if you had not defaulted on the repayment of the loan. However, once defaulted, they cannot add any more interest to take the debt over the original "total amount for credit".

Example:

Say you borrow £10000 over 5 years (60 payments), with interest over the period being £2500, giving a total amount payable of £12500.

Then say after 30 payments (half way through) you default on the agreement, still owing half the debt (£6250), but also having paid back £6250.

The creditor isn't allowed to increase the total amount payable of the loan (£12500) with extra interest, as this is stated within your credit agreement. So you should still only have £6250 to pay back.

If they try to increase this figure with extra interest, then they are in breach of Section 93 on the Consumer Credit Act 1974.

I'll try to find the wording of that section. Back in a bit...........


Cocker:)

cocker100

cocker100 wrote: »

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.

Hi again,

Here's section 93 of the Consumer Credit Act 1974. The way I read it is that whatever your "total charge for credit" is in your loan agreement, you should not be made to pay any more in extra interest.

Any comments from anyone else???


Cocker:)

VanillaDelia

Can anyone help us. We have received 2 demands from Wescot credit services who have just taken over from o2. Should we write to them and inform them of our DMP? If so is their a letter template?

I will send them to CCCS to inform them with who they are to deal with from now on etc..

Thanks

CornishMaid

An interesting day today to say the least :rolleyes:

Barclaycard "...cannot currently accept our offer..." but would be willing to reconsider if we can increase the payments - have managed to reduce outgoings slightly so have adjusted all offers of payment and they now get an extra fiver - will wait and see what they say about that

We both had letters from the Halifax accepting our payments for 3 months with greatly reduced interest (down to 6%) and no charges. After that they will review our situation and we will all decide the best course of action.

Most surprisingly they have said that their ultimate goal is to help us without the need to register a default - they will even pass the account to their debt recovery dept. and freeze all interest without defaulting us. It all seems a bit too good to be true to be honest but I do have it all in writing :T Would appreciate anyone elses thoughts on this though!

And only 2 phone calls today! So am feeling pretty positive today :j

Hope all are well, CM.