DMP Mutual Support Thread (Part 6)

Daffykjs

londonfraggle wrote: »

Hi - I wonder if a anyonecan help me with some questions about a DMP - I've been trying to phone the CCCS but just don't ever seem to get through!

I am in the process of setting my DMP up. I have written to (most) of my creditors alerting them and sending them token payments. The ones I haven't alerted are those that I am not yet behind with, or who are connected to my current bank account.

I am waiting for confirmation that my salary will be paid into my new account at the end of this month before I alert my bank (overdraft and personal loan with).

My questions are as follows:
1) I have missed the personal loan repayment. They don't seem to have yet taken the money from my current account to pay for this, but they are chasing for payment. Should I take my chances and let them know about the DMP and send token payment anyway? My worry is that the overdraft will be suddently removed once my bank know about the DMP and until I know for sure my salary is going elsewhere that's a worry. Any advice?! Shall I just keep stalling them for as long as I can (i.e. ignoring them!).

2) One of my creditors has already issued me with a default - despite the fact that I am only one payment of £13 in arrears and made a token £10! Is this normal? Should I be worried.

3) Another creditor (Citi Financial) is really hounding me - letters, phone calls etc. I keep telling them that CCCS are dealing with it and will make an offer as soon as everything is in place but they want to know exactly when that will be and have scared me by saying that the longer I leave it after notifying them the less likely it is that they will accept a DMP. Again, is this true?

4) I really want to set my DMP up from 1 October - as creditors are starting to hound me now, but I have had a bit of an unfortunate set back in my personal life - my old flat mate is moving out or our (jointly shared) rented flat. Another friend is moving in but not for a couple of weeks so I need to cover the rent/bills on my own for a couple of weeks. This situation will be resolved by the end of October of course when new flatmate moves in, so I wondered what your thoughts were on starting on 1 November instead? How will creditors react?

I would really appreciate some advice on this - I have tried to call the CCCS many many times over the last week but it's always so busy!

Thank you very much in advance!

Fraggle x

Firstly, maybe you could call National debtline instead. they are good for general advice and easier to get through to! Do you have an internet thing set up with CCCS yet (Sorry don't know how it works for you, i'm with payplan)? if so could you maybe send them a request for a call back? or email to answer your questions? this his how pp works (altho sometimes not as fast as i'd like obviously!) Or maybe even post on the 'ask CCCS a question' bit on here!

Right

1) Is this one you sent a token payment to? have you cancelled the dd? if token payment did you send it recorded delivery? they may just be playing silly bugg3rs!

2) No you shouldn't be worried! And is it definitely a default or one of those telling you they will defualt of you don't catch up blah blah blah? either way, don't worry!

3) no it's not true! as far as i'm aware at least! i think they are just trying to scare you into paying them something now! keep doing what you're doing. if you like tell them 1st oct in the hope they might stop asking! if it changes i don't think it's a big deal!

4) firstly, why is the friend moving out not paying for those 2 weeks? surely its his/her responsibility, not yours! secondly you haven't started yet so no reason why you can't postpone a month and send token payments for one more month! obviously if the ball is already rolling with cccs and you've already sent the forms off etc then you need to get in contact with them to tell them! but postponing a month shouldn't be a problem!

londonfraggle

Daffykjs wrote: »

1) Is this one you sent a token payment to? have you cancelled the dd? if token payment did you send it recorded delivery? they may just be playing silly bugg3rs!

Nope - I haven't sent these guys anything as I haven't informed them (as they are part of my bank) but yes, I have cancelled the DD. So they simply haven't received a payment from me but (quite rightly) have started to chase for it! So I'm kinda wondering what to tell them. I'm nervous about telling them about the DMP as they are part of my current bank who I haven't told yet (as don't know where my salary will end up at the end of this month yet. I have asked and asked my boss to confirm it's going into new account but he's so disorganised it's ridiculous! I think the only way I will know for sure is when it does/doesn't happen!)

Daffykjs wrote: »

2) No you shouldn't be worried! And is it definitely a default or one of those telling you they will defualt of you don't catch up blah blah blah? either way, don't worry!!

Yes is definitely a default. What happens after this now?

Daffykjs wrote: »

3) no it's not true! as far as i'm aware at least! i think they are just trying to scare you into paying them something now! keep doing what you're doing. if you like tell them 1st oct in the hope they might stop asking! if it changes i don't think it's a big deal!

Thank you for this. I thought as much but do still get my knickers in a twist when they start being scarey and mean on the phone!

Daffykjs wrote: »

4) firstly, why is the friend moving out not paying for those 2 weeks? surely its his/her responsibility, not yours! secondly you haven't started yet so no reason why you can't postpone a month and send token payments for one more month! obviously if the ball is already rolling with cccs and you've already sent the forms off etc then you need to get in contact with them to tell them! but postponing a month shouldn't be a problem!

My mate did actually give me a months notice, but has taken me a while to find someone else to move in. Another friend is moving in, which is great as we get on well and will be able to carry on sharing the bills etc exactly as I did with the last one but because of timings she can only move in 2 weeks after current flatmate moves out. So it's just two weeks I have to cover on my own - so not disasterous but if my DMP has started there is no way I would ever be able to do it. Also various people have suggested it's best to build up a little cushion when you're starting a DMP. If I start 1 October I will have absolutely nothing - what do other people think? Is a small (couple of hundred pounds) sensible for emergencies?

Thank you so so much for your help and advice. I really do appreciate it.

Fraggle x

Daffykjs

Ok, about the loan, i'm not sure but i think you need to pay them something! SO, you have a choice. You either tell them about the DMP and pay them a token amount or you pay them the normal amount! OR you phone them, say you can't afford the whole amount this month and they will hopefully allow you to pay less! my hubby did this a couple of times before we even started looking at a DMP, altho this was with cc's not loans so i'm not sure if it's the same. i'm actually surprised they have honoured you cancelling the dd. i've heard of some linked bank loans/cc taking the money anyway, regardless of if the dd was cancelled or not. Be careful if the money is not there, coz they may still do this (not sure tho)!

I THINK once they default they now pass it on to a debt collection agency! this is not as scary as it sounds. it just means they've sold your debt to someone else (for less money) and they will be the ones collecting the debt from you! you need to tell cccs this so they pay the right company. you can do this by sending a copy of the letter, if you can't get through on the phone.

i think you're better postponing til the 1st Nov! have you sent all your docs off to them yet? if not i assume it will have a start date when it arrives. if this is the case i assume all you will need to do is change this! could be wrong tho, as it may be a little different with pp!

ianmak

Ok, regarding the loan, I believe that normally they will still be allowed to take money out of your linked bank account, regardless of whether or not you have cancelled the DD. So the sooner you get the new account sorted out, the better.

Regarding DMPs & IVAs, the IVA is a contracted agreement between you and creditors, and your creditors have to agree to it. Once it's setup, providing you make the payments, then you're fairly secure. I believe interest is frozen as well. It's not for everyone though. A DMP however is just a gentlemen's agreement, and no guarantee on freezing interest. They don't have to agree to it, and they can go for Charging Orders for not paying your debt.

JillyOJolly

Brussel_Sprout wrote: »

Morning folks,

Not been on for a few days - have to steal these few moments when Im home alone!

1. Someone asked about Bank Accounts - I have a basic First account with Coventry Building Society - they are great (and don't tell anyone but they give you a free £250 overdraft!) - I also have a linked savings account with this, its all online - the savings account has a grand total of 0.10 in it at the minute though! I need to open another savings account somewhere as its too easy for me to 'borrow' money when I do have some savings. But I've found it hard to find a bank that I can open JUST a savings account at?

2. Payplan - Cover my Payments/Cover my life - I pay this just to have piece of mind that should anything happen my payments will be covered by them for a period of time. It's minimal and doesnt really make a difference to how much your creditors get.

3. Payplan/RBS - I have Mint Credit card that I pay through PP and they are RBS - I've been paying them for 3 years nearly through PP and have had no problems. Don't forget there are credit data confidentiality acts, although it doesnt seem like it half the time!

Other than the above all I want to do it moan and ask if anyone has won the lottery this weekend? Nope? me neither.

Car is broken, no money to fix it, panic panic panic. No car, no work, lose job, no money. Probably looking on the brightside as usual!!

Has anyone on here negotiated a payrise at work successfully?

No payrise for me this year or next!

JillyOJolly

glitterlea wrote: »

Just a quickie from me

When you send any paper work (like statement and letters from your creditors) to payplan/cccs - do you send the original or the photocopy?

Thanks x

I used to send them a photocopy so I could keep one for the file, or I used to scan it in and email to my case officer.

JOJ

Twit_Head

ianmak wrote: »

Regarding DMPs & IVAs, the IVA is a contracted agreement between you and creditors, and your creditors have to agree to it. Once it's setup, providing you make the payments, then you're fairly secure. I believe interest is frozen as well. It's not for everyone though. A DMP however is just a gentlemen's agreement, and no guarantee on freezing interest. They don't have to agree to it, and they can go for Charging Orders for not paying your debt.

Thanks ianmak for this. Does anyone know if you can change from a DMP to an IVA?
I have this vague thought in the back of my mind that there has to be a set minimum repayment amount and it's secured??? (Asking because still disgruntled and dismayed by £12-00 charge + 24% interest being slapped on by one creditor :eek:)

JillyOJolly

Fruityloopey wrote: »

Hi

Just wondered if anyone was coming to their end of their DMP or has finished it? I have another 3 / 4 years I think left and just wondered what happened at the end if you haven’t paid off all the debt owed. I think they may put offers into the creditors but just wanted to see what other peoples experience of this was?

Hi,

I have recently finished a DMP with payplan after 4 years. It was meant to finish a year ago until creditors no longer accepted "financial crisis" and added whopping amounts of interest. I never had interest stopped (sorry if repeating my story to most), but to watch it rise again was a nightmare. Once I only had small balances left on my accounts and was then paying way above minimum payments they wanted more.

I did send off F&F offers in June which were all, but one rejected. However, it was very kindly pointed out by one of my creditors that although they would accept the F&F (I offered 40% as a start) they would only be only to close my account "partially satisfied" which of course once I read up on it is not a great way for your credit rating. I had no defaults over the 4 years, managed to get back some charges with interest and had spent my DMP 4 years putting my credit back on track and I didnt want that. I spoke to Payplan who requested final balances in early August and a friend and I between us paid the last payment. It was probably more scary than when I started the DMP to be honest. I have paid the little pieces of remaining interest (a £1 here and there) and have now closed all my accounts "fully satisfied" confirmed by all creditors.

My estimate with payplan was never correct in the last few months due to interest, but I have to say thats not their fault it lies completely with the creditor. After me holding the cards for 4 years on what they could have, at the end the ball was firmly in the creditors court and I had to play their game. For me it paid off in the end and I finished my DMP 4 months before payplans estimated time line.

Annoyingly, you have to remember you owe them what you do, pay what you can and tidy it up neatly at the end as best you can. I would, personally not recommend shortfall F&F's if you want to protect your credit from any further damage. It will stay there for 6 years from the date of your F&F payment.

Hope that helps.

JOJ

muddlemess

Hi all, well i've posted my paperwork off to CCCS so hopefully in line to start DMP 1 OCT!! :eek:
Received a letter today from Lloyds CC thanking me for sending details of my Income and expenditure (can't have got it yet CCCS doesn't have their details) and telling me that my offer is unacceptable and that they will be forwarding my account to collections! Is this pretty standard?

Thanks in advance Cx

ianmak

Twit_Head wrote: »

Thanks ianmak for this. Does anyone know if you can change from a DMP to an IVA?
I have this vague thought in the back of my mind that there has to be a set minimum repayment amount and it's secured??? (Asking because still disgruntled and dismayed by £12-00 charge + 24% interest being slapped on by one creditor :eek:)

I believe so as my Case Officer is still trying to get me to go for an IVA. If it helps, have a look here...
http://www.moneysavingexpert.com/loans/pdf-iva-guide.pdf