DMP Mutual Support Thread (Part 6)

geoffmr1

cloudnine wrote: »

Hi Everyone
I've been with CCCS for over a year and have managed to up my monthly payments. The CCCS of course, share my payment to them to all my creditors. I've reached a stage where I'm paying over 1% of the balance each month to many of my creditors. The result is that they have increased interest accordingly. It seems that the more you pay, the more you are penalised. Has anyone else been or, are in this position and how can you handle it? All I want is to settle my debts as quickly as I can..Thanks to all

Hi Cloudnine,

Can I ask which creditors it is that are still adding interest on??

I have been on a DMP since sept '07 & whilst it took some time for certain creditors to agree with the DMP, nearly all of them stopped adding interest. The only two I had problems with on that score were Nationwide & HSBC, although Natiowide did pass the debt on to a DCA fairly quickly & they agreed the DMP payments. HSBC continued to add interest for well over a year until I wrote to them a few months ago explained the situation, told them they were the only ones still adding to the debts & asked them to sell it on. They actually gave in to my request & sold the debt & now once again the DCA have agreed the payments & the debt is going down.

geoffmr1

supersleuth wrote: »

You're all right - it has been a bit quiet on here.

Although I have to say I quite like it as it means I can keep up lol - and yes I am blonde !!!

Anyway, now have Cap 1 and MBNA ( A+L) CC's accepted my DMP.
The lovely A+L CC at 0% with all late fees etc removed - awesome

Just waiting to hear from Natwest for my OD £2.5k and my A+L loan £7k

I am also trying to reclaim my charges from Natwest - does anybody know if an accepted DMP is proof of financial hardship ? They have sent me a SOA to fill in but can I just send them a copy of my CCCS one ?

Can I also ask how you all know how long you will be paying for or your DFD as I don't know how to work it out ?

Cheers
SS

Hiya,

Unfortunately a DMP isn't proof of financial hardship. Seems ridiculous to me but an accepted DMP can actually work against you in some cases. The simple explanation is that your outgoings must exceed your incomings to be in financial hardship (I have two cases with the FOS at the moment, so have had this explained to me). As you are on a DMP it means you may well be short of money but that your incomings are still more than your outgoings.

Having said all that, it doesn't mean you won't succeed if you make a claim under financial hardship. Abbey refunded enough to me to wipe out the debt I had with them, that was still around £400-500 less than I requested but I can wait until after the test case to claim the rest back. Nationwide on the other hand have been a complete bunch of w******. They owe me over 1k in charges but offered £20.

supersleuth

geoffmr1 wrote: »

Hiya,

Unfortunately a DMP isn't proof of financial hardship. Seems ridiculous to me but an accepted DMP can actually work against you in some cases. The simple explanation is that your outgoings must exceed your incomings to be in financial hardship (I have two cases with the FOS at the moment, so have had this explained to me). As you are on a DMP it means you may well be short of money but that your incomings are still more than your outgoings.

Having said all that, it doesn't mean you won't succeed if you make a claim under financial hardship. Abbey refunded enough to me to wipe out the debt I had with them, that was still around £400-500 less than I requested but I can wait until after the test case to claim the rest back. Nationwide on the other hand have been a complete bunch of w******. They owe me over 1k in charges but offered £20.

Cheers for that, I think, in that case, I'll do their forms ans see what happens. The letter does say that if not then they will deal with it after the test case. I only want it pay off my debt with them so I can wait I suppose.

Thanks again for the advice that really helps
SS

geoffmr1

supersleuth wrote: »

Cheers for that, I think, in that case, I'll do their forms ans see what happens. The letter does say that if not then they will deal with it after the test case. I only want it pay off my debt with them so I can wait I suppose.

Thanks again for the advice that really helps
SS

When you fill out the forms be a little careful what you put down for how long you feel you have been in financial hardship. For example if most of your unfair charges were from 2006 & before but you put down you hit financial hardship in 2007 then at best you'll only get any money they charged you from 2007 onwards. Unfortunately I found this out a little too late to help me.

The other thing is they go through your bank account to see what sort of stuff you were spending on, because if they can find non essential stuff they use that as proof you're not in hardship. It's actually quite disgusting they can do that, Nationwide brought up money I had deposited to a betting account even though I hadn't even tried to claim I was in financial hardship at that time.

thewad

I have approx £80,000 of unsecured debt and the phone 'aint ringing with work like it used to.
Thinking of the DMP route.
Could afford about £650 a month, would that be acceptable??
MBNA PUSHED MY INTEREST RATE UP TO AROUND 32% MARK AND WON'T BUDGE ON IT.
Is this legal?

John

thewad

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bigmommamuppet

thewad wrote: »

I have approx £80,000 of unsecured debt and the phone 'aint ringing with work like it used to.
Thinking of the DMP route.
Could afford about £650 a month, would that be acceptable??
MBNA PUSHED MY INTEREST RATE UP TO AROUND 32% MARK AND WON'T BUDGE ON IT.
Is this legal?

John

Hi there John,

Each creditor acts differently some agree to small amounts on large debts and on the other hand the same creditor spits the dummy out a bigger payments on smaller debts. There is no hard and fast rules I'm afraid.

At LBM I had £83k paying £874 and all creditors have accepted their pro rata amount without hassle so you should be ok I think. But the saying goes that you can only pay them back what you can afford so if £650 is it then they'll just have to get used to it.

Re: Interest rates it's in their T&Cs that they can charge what the hell the like. So legal yes, moral hmmmm let me think on that one....I don't think so:cool:.

Becks.

scouselad1974

Hi

can anyone have a look at a CCA I have received from Amex if I email it to them to check if it is all above board for me.
I have tried to upload it but I'm having no luck.

Thanks in advance

Helen42

Hi we are currently in a DMP with Payplan and to be honest are not happy. We trusted payplan but are now findinmg that some companies are still charging interest (Which I have now negotiated a stop of with one of them so far and will be working on the others) and when i have rung payplan and asked them what they are doing they just reel off dates they sent emails to companies, but it seems that payplan do not follow up these emails.

I found out today that payplans balances for what we are differ a great deal to what the creditors say we owe some higher some lower, when i asked payplan why they dont check balances regularly it was explained to me that three months before the end of the scheme they write and get balances from all the creditors so what is currentlya 6 year payoff could be alot longer this is very scary that updates of balances are not obtained all the way through and payments are not adjusted accordingly.

We are thinking of taking over our DMP for ourselves as we are very unhappy with payplan ocer all as they never call back they send a standard email in reply to me every time and we want our debts to be paid back sooner rather than drag it out

Any advice please?

workingatit

cloudnine wrote: »

Hi Everyone
I've been with CCCS for over a year and have managed to up my monthly payments. The CCCS of course, share my payment to them to all my creditors. I've reached a stage where I'm paying over 1% of the balance each month to many of my creditors. The result is that they have increased interest accordingly. It seems that the more you pay, the more you are penalised. Has anyone else been or, are in this position and how can you handle it? All I want is to settle my debts as quickly as I can..Thanks to all

Hi There,

our DMP has been running for 3 years now and we have 3 creditors where the min payment on the statement is lower than what the cccs are paying them, eg they ask for £8 we are paying them £12.38 per month, and all 3 have continued to allow us to pay them the higher amount and still not charging any interest per month, I think it may depend on each creditor as to how they work it.