Getting out of a 15%charging DMP

depressed_but_determined

Hi, I am totally new but not to debt sadly.


I wasn't aware of free debt help when I signed up to a paying debt managment plan in December. I can afford to pay £350 on my debts of £29700 to 5 creditors and the Debt Company I have signed up to called Money Worries took this payment in January but are using the first payment as an initial fee and none of it is going to the creditors so I am very concerned.Everywhere I look on this forum says run a mile from paying plans.


I defaulted for the first time in January with Egg and have just recieved a default notice and also a letter from a company about the £56.78 owed on my virgin credit card.

I am just enquiring now to get out of the plan and change to the CCCS as they are free. The Company I spoke to today strongly advised me to get away from Money Worries and deal with the CCCS or Payplan but now what I have signed up I don't know whether I can do this without incurring more problems with the DMP company.

I really hope you can help, I have a SOA completed online with CCCS and emailed them tonight asking about moving the DMP. When I make the next payment in Feb Moneyworries will take a 15% fee which my creditors won't see. At least they havent started paying anything yet which I suppose is a good thing even if I will lose the initial fee.


I am in such a state. I had an eating disorder from when I was 16 which significantly contributed to my overspending and lack of responsibility back then and I am only now in recovery so I am terrified of speaking to the creditors on the telephone incase this sets back my recovery. I have got myself into such a mess and now Iam trying to sort it out I feel I have made another bad decision with the DMP company I have chosen.

I accept full responsibility for the mess I am in but I hope you can now assist me for the future.

Any advice you can give will be greatly accepted.

Thanks

10past6

Hi hun :hello:

Welcome to the forum, we'll all help as much as we can, did the company give you any T&Cs if so, what does it say about terminating the agreement?

depressed_but_determined

Thank you for your reply. I am just checking the t and c's now. It says to give 2 weeks written notice. My next payment is due on the 3rd Feb, should I write a letter to terminate and cancel their standing order?
Think I am just terrified that it will be another month with no payments being made to my debts. Moneyworries have told me not to talk to anyone or pay anything and that they will handle it all for me. Can't believe I was stupid enough to fall into paying a fee for my debts!!!!
I hope I hear back from CCCS tomorrow, I will give them a call for advice, now that I have filled out all the paperwork, if I go with their plan does anyone know how long it will be until it's all set up?
Thanks very much for all your help

Numpty_Monkey

Hi and welcome
well done on contacting CCCS they are on your side to help you

I'm not of much use on the legal technical things,
i leave that to the clever ones:A

10past6

depressed_but_determined wrote: »

Should I write a letter to terminate and cancel their standing order?

Yes, you have sufficent time to cancel your standing order.

depressed_but_determined wrote: »

Think I am just terrified that it will be another month with no payments being made to my debts

Send the following letters to your creditors including a £1.00 postal order as a token payment until your DMP is up and running.

Click the link within my signature and see if Payplan can assist you sooner.

Date


Dear Sir/Madam
Re:− Account/Reference Number ACC NO

I would like to inform you that I am having difficulties raising the monthly repayment of XXX due to YOUR PERSONAL CIRCUMSTANCES. I am seeking help from DEBT CHARITY NAME and intend to shortly produce a statement of affairs / repayment plan.

While I seek advice, can I ask you to suspend enforcement action on this account for at least 28 days, and also charges and interest? I am aware that you have a good reputation for going beyond the Banking Codes minimum requirements to deal sympathetically with individuals in trouble.

Can you also send me any policy documents / information leaflets etc you produce for someone in my circumstances?

Yours Faithfully


XXXX (type don't sign

depressed_but_determined

Thank you very much. I will get on it today. I have sent my recent statements and bank details to moneyworries only this week.
I hope the CCCS will be able to help me, I was really concerned that the DCA told me to change today too.
I really appreciate all your help, and feel much better now I have realised my mistake before they take any more of my cash!

Thanks,

10past6

Moneyworries may well try and get you to stay with them, be strong and stand your ground, you want the money to pay of your debts not end up in someone's pocket.

Numpty_Monkey

I'm glad a clever one was around

fatbelly

Hi

I've not heard of this particular company but I see a lot of people on fee-charging dmps (this sounds like one of the worst!) and move them to CAB/CCCS/Payplan.

I have never heard any comeback from these companies. They seem to realise that you've sussed them and move on to the next victim.

Just like your average parasite really.

depressed_but_determined

Well I feel a bit relieved, I have just spoken to CCCS and they are going to take over my debt management plan.

I have written a letter of cancellation to Moneywories but I am concerned as they have not set up the standing order which I filled out. They ask you to make the first payment by Switch and I am terrified that they will try to do the same with the next one which means I will be paying the same amount o 2 different places so I have stressed in the letter that this better not be the case. It's almost impossible to get a hold of them on the phone!

CCS recommended I make token payments to all my creditors this month just until the plan is up and running and luckily I am in a position to offer something. I am still really worried about getting out of this stupid paying plan, I will just have to write the letter and wait until they respond.

Thanks again for all your help

Jesthar

Heya, and welcome

Well done on ditching the parasites! :T

Regarding your Switch payment, did you sign a Direct Debit mandate with MoneyWorries, or just a one off authorisation? Whether you did or not, it might well be worth asking you bank to block future payments requested by MoneyWorries just in case - you may need to do that in writing for a Direct Debit. Talk to your bank, see what they say.

~Jes