DMP Mutual Support Thread (Part 6)

susiewong1

Hi Peeps

Just a quick question please, if anyone can help.

My hubby has just started a DMP with CCCS. He moved bank accounts as advised but left enough money in his old bank account to cover the cost of a direct debit that was going to go out for his car finance.

As the bank is included in the DMP for an £800 Overdraft once they received the letter from CCCS they 'froze' his account and won't let him pay the direct debit.

When he looked on the online banking the money is just sat there. It's nearly £300 but do you think they will just 'claim' it to clear some of the overdraft?

Are they allowed to do this, or do you think it's worth him going into the branch to speak to someone about it? The only trouble is he is feeling very embarrased and ashamed at the mo and has banked with them for over 17 years.

Any advice greatly appreciated

x

thestealer

susiewong1 wrote: »

Hi Peeps

Just a quick question please, if anyone can help.

My hubby has just started a DMP with CCCS. He moved bank accounts as advised but left enough money in his old bank account to cover the cost of a direct debit that was going to go out for his car finance.

As the bank is included in the DMP for an £800 Overdraft once they received the letter from CCCS they 'froze' his account and won't let him pay the direct debit.

When he looked on the online banking the money is just sat there. It's nearly £300 but do you think they will just 'claim' it to clear some of the overdraft?

Are they allowed to do this, or do you think it's worth him going into the branch to speak to someone about it? The only trouble is he is feeling very embarrased and ashamed at the mo and has banked with them for over 17 years.

Any advice greatly appreciated

x

From what I can gather, the bank does actually have the right to claim monies owed from a current account...however, and it's a very big 'however'...if the bank is fully aware you are in financial difficulties then I think it at the very least unfair if them to do so in the knowledge you will clearly incur further charges.

I would suggest speaking to them, you don't have anything to lose at this point and you might just get to talk to someone sympathetic who may allow even some of the funds to be accessible.

Beyond that, I would also let the CCCS know the situation, they may well suggest making a reduced payment for one month which isn't the end of the world.

Mythago

Hello everyone,
I'm very glad to have found this forum, looking at posts it clear that this is going to make dealing with debt problems that little bit easier.

My wife and I are just starting out on the road to debt-free-ness. We came to the momentous decision last week after negotiations with one credit card company broke down. Despite having over £37K in debt and paying nearly £900 a month to creditors and barely had money for food and couldn't buy our young son new clothes or shoes, we were not in arrears to any of them. However, for the first time we missed a council tax and electricity bill.

When the credit card company failed to by sympathetic and rejected our budget for repayments and plea for interest to be frozen we got in touch with Nat Debt.

Now we are waiting for our DMP pack to arrive in the post and have begun to set things in motion...

Please excuse our inexperience as we need some advice please on starting a DMP - looking back what would you do differently?

So far following advice...

• we intend to write to all 9 creditors with our intention to to create a DMP
• ask for all interest and charges to frozen
• offer token payments
  • should this be the repayment that we expect to make with the DMP?
• we have two basic bank accounts and moved everything over to them
• put caller id and an anonymous call bar on the telephone
• tried to take off telephone numbers from the accounts
  • does this work? Won't they still have old numbers on file?

Any advice gratefully received

Cheers,
M x

ianmak

Mythago wrote: »

Hello everyone,
I'm very glad to have found this forum, looking at posts it clear that this is going to make dealing with debt problems that little bit easier.

My wife and I are just starting out on the road to debt-free-ness. We came to the momentous decision last week after negotiations with one credit card company broke down. Despite having over £37K in debt and paying nearly £900 a month to creditors and barely had money for food and couldn't buy our young son new clothes or shoes, we were not in arrears to any of them. However, for the first time we missed a council tax and electricity bill.

When the credit card company failed to by sympathetic and rejected our budget for repayments and plea for interest to be frozen we got in touch with Nat Debt.

Now we are waiting for our DMP pack to arrive in the post and have begun to set things in motion...

Please excuse our inexperience as we need some advice please on starting a DMP - looking back what would you do differently?

So far following advice...

• we intend to write to all 9 creditors with our intention to to create a DMP I didn't. I relied on PayPlan to do this for me. Not sure if that helped or not!
• ask for all interest and charges to frozen Ditto
• offer token payments I sent a cheque (from my old account!) to my creditors for £1 and sent it with the giro slip you find at the bottom of the bill.
  • should this be the repayment that we expect to make with the DMP? See above.
• we have two basic bank accounts and moved everything over to them Yes. Just make sure they're independent to any of your creditors.
• put caller id and an anonymous call bar on the telephone Personally, I was happy to speak to all of my creditors, as if you bar their calls and refuse to answer etc, then they'd just think you were avoiding paying off your debt, which you're not. Regardless of the amount of letters you send, and PP sending your SOA & FS, it's pretty obvious that the various banking departments don't communicate, and so explaining over the phone the situation (Just explain you've started a DMP, give your ref number, don't give them anymore money (other than the token payment you've already sent), and leave it at that.
• tried to take off telephone numbers from the accounts See above.
  • does this work? Won't they still have old numbers on file? -See above.

Any advice gratefully received

Cheers,
M x

Welcome to the gang! My personal thoughts are in red...

Mythago

PP sending your SOA & FS

Hi again,
Not sure what is meant by SOA and FS...?
New to forum speak sorry.
M

ianmak

Sorry, my fault for being in a hurry!

PP is PayPlan.

SOA is Statement of Affairs
FS is Financial Statement

SOA & FS are basically the same thing.

One I meant to add in place of SOA is LOA, which is a Letter of Authority, which PP need in order to act on your behalf.

kingston_2730

Hi can anyone tell me if your house can be taken if doing a DMP? Also, are creditors less likely to accept DMPs if the debt is very large?

ianmak

kingston_2730 wrote: »

Hi can anyone tell me if your house can be taken if doing a DMP? Also, are creditors less likely to accept DMPs if the debt is very large?

It all depends on how large the debt is, to how much you can pay off... I started out owing 40k ish with a 20 year dfd...

As to your house being taken. A creditor may apply a charging order to a mortgage (if you already have a CCJ, and haven't adhered to it), which would mean if you ever sold your house, at a profit (or lost your property), then you may owe that creditor the profit, if that makes sense. A better explanation can be found here...
http://www.nationaldebtline.co.uk/england_wales/factsheet.php?page=15_charging_orders_in_the_county_court

Also, your house may only be taken off you if you broke the agreement of that charging order.

kingston_2730

I am new to this and just reading through this thread have a question hopefully someone can answer. A lot of you have mentioned final offers. I just don't understand how this is possible as (unless i am mistaken) your budget on these DMPs is really tight, so how can anyone afford to make lump sum offers? I am probably missing something and being completely daft Can someone please enlighten me?

ianmak

Because you may come into some money (bonuses, inheritance, family loans), that may enable you to make one time only offers, at a discounted rate.