DMP - Budget item queried by creditor, CCCS want to shut down plan!?

pepe2008

maureenjscott wrote: »

As i have said, my issue is that all the creditors i owe have had tithing on my budget since day one. I have reduced the amount paid in tithing over the duration of the plan. The last reduction was in October, and no creditor at any point has objected. So why has this one accepted payments from me at the same level they have received for over a year and now, 5months later (or 18 if you want to look at the whole dmp duration) and now saying they dont accept when they did before? This is my question!?

All Creditors review from time-to-time. If I was to 'tithe' 10% of my Income then I would be reducing my dmp Payment by 50%...and by more than my smallest Creditors debt.
I am not Religious ( shock, huh?), but if I were suddenly to 'see the light' ....would it be fair on my Creditors to accept this and accept reduced payments? No.

Your Religion is your choice. I have no argument with that., but you have to accept that there are areas of life in which you have to let your beliefs take a back seat. Have you tried writing to this Creditor and explaining your situation?

maureenjscott

fermi wrote: »

How many creditors do you have? Could you cope with/manage a self administered DMP?

Or...........

I suspect PayPlan/NDL would have the same take as CCCS, but you never know. Perhaps ask them?

http://www.payplan.com/debt-management-plans.php

http://www.nationaldebtline.co.uk/england_wales/factsheet.php?page=29_debt_management_plan

Hi Fermi, thanks for the info and links. Could probably cope with/manage a self administered DMP as i was kinda doing that anyway till things got worse and we turned to the CCCS. However, with the baby on its way I dont particularly want to have to take on that as well. It is tempting to move plan to another company and just not take that creditor and pay them off! lol but again seems like it would be a bit of hassle - seemed to take a good while to sort out original one 18months ago.
thanks
maureen

maureenjscott

gonzo127 wrote: »

hi again, well i beleive (am not on a DMP myself) that you can do a full and final settlement with any of your creditors if you 'come into some money' although due to the way it would look with the church paying it for you and you upping your donations it could be seen as another loan which would break you DMP agreement hence why i think you need to talk it over with a CCCS advisor

Will contact CCCS again today as i cannot find guidance on this from their site. I was of the impression that if you 'came into money' you had to offer to all creditors and couldn't pay one off over another. I am entitled to a maternity grant which would more than cover this one creditor so would not need to 'borrow' from the Church so that's not an issue.
thanks
maureen

gonzo127

yep would be best to phone them and find out, if it is allowed remember to make a written FULL AND FINAL settlement of the debt and do NOT offer the full amount stright away i would say on a £250 debt i would say a starting figure of no more than £100 as your offer but it has to be a full and final one and not a partial!

with a full and final offer remember that at your current rate of repayment £5 a month for £250 it would take you roughly 4 years to pay back, now if they can get roughly 50% in one go now it could be tempting for their cash flow just to write off the remaining amount

Tixy

Hi Maureen

You are right that in the CCCS guidelines it does assume all money will be paid over equally to all creditors. However people do do individual full & final settlements to clear just one or 2 debts (I think usually using the argument that a family member (or whoever) is offering to pay the debt off on your behalf. They then make the offer personally (not through CCCS) and then just inform CCCS that the debt is cleared and not to pay that creditor anymore.
However even if you cleared this 'problem' creditor it seems from what you have written this would not help as it is now CCCS who are also questioning the amount you are paying.

Hopefully once you have spoken to your Bishop/elder you may find a solution that works for CCCS and yourselves.

OrkneyStar

Just to say, this thread has developed, and thanks OP for answering the questions we all posed!
Please come back and ket us know what eventual solution you come to, as it would be lovely to hear it is a good one!

maureenjscott

OrkneyStar wrote: »

Just to say, this thread has developed, and thanks OP for answering the questions we all posed!
Please come back and ket us know what eventual solution you come to, as it would be lovely to hear it is a good one!

Of course OrkneyStar! Going to speak to CCCS and get some more advice from them and then speak to Bishop on Sunday. They gave me two weeks when they called yesterday to get back to them.

Just a bit of a pain cos they want me to do a new budget in April anyway as once the baby is here we'll have more tax credits and child benefit and because i'll be breastfeeding the only additional expense for the first 6months anyway will be nappies! So I had envisaged the DMP payments increasing from 1st of May in line with the extra income!

Argh! I really hope Martin and the team can get money and debt education into schools and get our young people gen'd up on bad/good debt etc. Most of the debt we are carrying is from being young/niave/stupid/greedy... all of these things contributing to our situation now and our desire to dig our way out and make a better life for our kids.

thanks to all who have contributed, i'll get onto the people i need to speak to and see where we end up from here.
maureen.

beanielou

Maureen
I wish you & yours well.
Take care.

blind-as-a-bat_2

immoral_angeluk wrote: »

It's impossible to say why they've only now queried it, but creditors have a right to challenge any expenditure which they see as unneccesary, which falls out of BBA(British Bankers Association) trigger figures. As CCCS_Sarah said, if you were to take formal insolvency tithing would not be allowed in your financial statement as it is not seen as a reasonal domestic expense. I know this is no consolation to you as you feel it is but in the eyes of insolvency law it isn't.

I would not say that, with so many cases they most likely missed it, or never took notice in the fisrst place, just another 'bad debt' to them, and on such a small debt, they where probebly happy at what they where getting. But now they are getting less, they looked again, the explanation could be that simple(s);)

PS, why can I not help feeling this account is something to do with CL finance, an ex GE money store card maybe:think:

Deep_In_Debt

I'm on a dmp with CCCS and it's not frowned upon to pay off one creditor - in fact, they encouraged me to do it and even sent me an information pack on how to do it and standard letters.

If you clear off one creditor and keep paying the same amount, it means that your other creditors will receive more each month thus clearing your debt more quickly.

Good luck.