DMP Mutual Support Thread (Part 5)

rcpbiggles

cocker100 wrote: »

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:)

Thank you so much Cocker! Your figures are not wildly different from ours! I played around a bit with the figures on the CCCS site and to get back to a DMP from a Low start means an increase in monthly payment of nearly £50 which I really don't want to enter into until I know whether we could live with.

At the end of the day, the debt is there and we have what we have.... so we'll go for it and increase our payment in the future if necessary! Once the youngest sprout goes to school my earning potential will go up so only a 2.5 years to go.

Thanks again Cocker - have a beer on me (virtual only I'm afraid!!) :beer:

cocker100

rcpbiggles wrote: »

Thank you so much Cocker! Your figures are not wildly different from ours! I played around a bit with the figures on the CCCS site and to get back to a DMP from a Low start means an increase in monthly payment of nearly £50 which I really don't want to enter into until I know whether we could live with.

At the end of the day, the debt is there and we have what we have.... so we'll go for it and increase our payment in the future if necessary! Once the youngest sprout goes to school my earning potential will go up so only a 2.5 years to go.

Thanks again Cocker - have a beer on me (virtual only I'm afraid!!) :beer:

No probs!!!

We were paying just £200 a month until our 18 month review which we have just had. Overall, I must say that things have gone pretty well. Two creditors (Goldfish and MBNA) have sold the debt onto a DCA and we had some chew with one of these for a while, but things have settled down now. We are now increasing to £250 due to reduction in our mortgage rate, so this has helped all creditors to agree to continue.

Cocker:)

moneybuster

massivedebts wrote: »

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

We have our mortgage with Northern Rock and an unsecured loan which we wanted to (and can afford to) carry on paying to them as we don't want to upset them, but Payplan insisted we list all our loans or they couldn't take us on. Really scared that NR will become heavy handed with us because of our DMP but after reading your thread, now hoping we get treated the same as you.

We can afford to pay the NR loan but Payplan have insisted this is included in the DMP. Does anybody know why all loans/cc's have to be included if you can manage some of the payments.

LOL Massivedebts - can't always find out what we need to know but can always manage to find doom and gloom posts that worry us.

Quillion

When making token payments on a bank account overdraft do i send the payment to branch or to head office?
Sorry just starting out with this and a bit daunting

elsie52

Hi,

If I remember correctly I sent ours to the address on our bank statements, which was the head office address.

massivedebts

Quillion wrote: »

When making token payments on a bank account overdraft do i send the payment to branch or to head office?
Sorry just starting out with this and a bit daunting

Hi Quillion, I sent my O/D payment to my branch, seemed to have got there ok.;)
RCB- We're on a low start DMP, it is exactly as Cocker says, no diff to any other DMP except that they would EXPECT your payments to increase in the future, and let's be honest they probably will if you've got years of paying your debt off!:D
VD - can't answer your Q I'm afraid but I'm sure someone will be along soon.:T
MB - you have to include all unsecured lending if you are ging onto a DMP, so that all your creditors are getting treated equally, for example it wouldn't be fair if you were paying your contractual payment of say £100 to NR, yet were only offering £5 to MBNA who was asking for a contractual payment of £100, does that make sense? I say keep them all sweet.then fingers crossed they'll go easier on us.:rolleyes:
Enjoy the sunshine my fellow DMPers:j :j
MD xx

Quillion

This is my first letter is this ok or do i need to add anything more?

I am currently experiencing financial difficulty due to being on short time hours at work, and am finding it increasingly difficult to meet my contractual payments.
I enclose a copy of my current financial statement. I have also enclosed a schedule of all of my non-priority debts and the proportionately calculated pro rata offer.
I hope you can accept this offer of £1.00 per month and stop any further interest or charges accruing.

Tigert

moneybuster wrote: »

We can afford to pay the NR loan but Payplan have insisted this is included in the DMP. Does anybody know why all loans/cc's have to be included if you can manage some of the payments.

Hi Moneybuster

Payplan insist all creditors are treated equally. You can only afford to keep paying Northern Rock by paying less to the others. If the others found you were paying NR fully, but only making part payments to them, they would want to know why and it could make them think twice about how they treat you.


The only way around this is to self manage your DMP, then you can tell the creditors what you want then to know. But Payplan will insist that everything is included.

I had to delay my DMP start date with payplan as I wanted to clear a Payday loan which I was getting lot's of hassle over. Payplan said I either had to include it or clear it before I started, so I wited a month cleared that first and then started the DMP treating everyone the same.

Hope that helps.

trying_to_stay_positive_2

Hi, my OH deals with wages and finance at work and is really worried that they could find out we are having finacial problems, if they did this would be the end of his career. Can anyone tell me if there is any way they can find out if we go down the DMP route. What happens if the creditors dont agree to our payments and take us to court, would they find out then? I am looking at the worst case senario here I know, but it really would be the end of his career if they find out. Thanks for any help.

boot13t

Good morning,

Payplan have instructed us to make the first payment to them on 1st of April, however, there is no indication that the DMP has been accepted by anybody yet. Is this normal?

I have read that folk have put aside money as a "safety net" until the DMP is up and running. I am concerned that if the DMP takes a couple of months to be active, we're sending Payplan money which we could be saving.

Our representative is on holiday next week so any comments on this query would be appreciated.