Without a paddle... support for anyone starting a DMP in 2010 (part2)

gabriella90

I like that TEDS a greater choice of shops hehe!!

Halloween oooooo, Martins MSE advice would be use an old sheet and cut eyes out:D

Last xmas i did £10 goodie bags for people and raided the £1 shop lots of cool stuff, pink ice scraper mitt for my sister, fairly decent smellies, cool bags for them to go in great for keeping the cost down, and they feel like they;ve got lots of different goodies! I like that sort of thing though!

OOh forgot to mention the budget bank account book thingy is working, although highlighting that i did not have any money left:eek: It does help to write things down :T
TTFN

Hopelessly_Hopeful

Way to go E2

I'm keeping everything crossed, especially for the goldfish.

Hello to all xx

ljm23k

Halloooo!!

I saw my name mentioned so I thought I'd better stop lurking!

DH who is not on the DMP is planning to buy the kids big Christmas pressies in the next few weeks!! That leaves me with stockings to do which is easy enough when the kids are 8 and under, and then my parents. My dad is getting a retro sweetie hamper!!! Wish someone would buy me one..... So, I am NOT panicking about Christmas for the first time ever!

DMP still chugging away quietly, long may it last..

PS, I rarely write peoples IDs in my posts as I can never remember them, so don't be offended!:):)

mikon

Hi everyone I am back and i hope everyone is well.

I have been busy writing letters to various chief executives of various banks. I final got an apology off the preditor who was charging high interest rates and demanding monthly payments in the region of £2k. All charges reimbursed now and they have finally agreed to my monthly offer. There has certainly been plenty of activity on this forum over the weeks.

I also received a letter from one of my other preditors who informed me that they had made an error on one of my statements and therefore had adjusted the amount owed.

So after the worry at the beginning of my DMP things seem to be bedding down and things are quiet for the moment. I am continuing to look to make savings each month and it is not easy but living without credit is great. It is at first a shock but I am now into the swing of things and now live within my means.

So to all those who are considering a DMP get onboard its not easy at first but it does settle down. Who on this forum 4 months ago would have thought Mikon would be saying this. I remember the dark days but I also remember the support i got from the guys on this forum.

I am now an expert at writing letters about debt and am able to quote some excellent law and guidance that creditors should adhere too.

Regards

Mikon

mikon

Ellieseleven wrote: »

Hello everyone, just popping in to say that things are relatively quiet for us at the moment apart from Santander who have not only NOT frozen interest on my CC but have upped it to 34.9 :mad: How are you expected to pay off these dreaded cards if they keep moving the goalposts??

Everything else just seems to be ticking over, is this the calm before the storm? I just have this uneasy feeling that things are going a bit too well but that could be down to me being paranoid (I hope):o

Hope that things are moving in the right direction for everyone;)

Ellie xx

Ellieseleven

I had a similar problem and wrote to the the Chief Executive I informed them of the ruling made by Justice Minister Bridget Prentice see below.

Justice Minister Bridget Prentice said “firms should consider reducing or stopping interest and charges when a customer provides evidences that they are in financial difficulties.”

The Lending Code guidance Section 9 states

Section 9: Financial difficulties

137. Subscribers should be sympathetic and positive when considering a customer’s financial difficulties. Although there is an onus on customers to try to help themselves, the first step, when a subscriber becomes aware of a customer’s financial difficulties, should be to try to contact the customer to discuss the matter. This applies to both personal and micro-enterprise customers.

138. Personal customers should be considered to be in financial difficulty when income is insufficient to cover reasonable
living expenses and meet financial commitments as they become due. This may result from a change in lifestyle,
often accompanied by a fall in disposable income and/or increased expenditure, such as:
• loss of employment;
• disability;
• serious illness;
• relationship breakdown;
• death of a partner;
• starting a lower paid job;
• parental/carer leave;
• starting full-time education; and
• imprisonment

139. Financial difficulties may become evident to a subscriber from one or more of the following events:
• Items repeatedly being returned unpaid due to lack of available funds;
• Failing to meet loan repayments or other commitments;
• Discontinuation of regular credits;
• Notification of some form of insolvency or court proceedings;
• Regular requests for increased borrowing or repeated rescheduling of debts;
• Making frequent cash withdrawals on a credit card at a non-promotional rate of interest; and
• Repeatedly exceeding a credit card or overdraft limit without agreement.

140. Additionally, for micro-enterprise customers, financial difficulties may also become evident to subscribers because:
• the customer goes overdrawn without agreement;
• the customer goes over their agreed overdraft limit, especially more than once;
• there are large increases or decreases in the business’s turnover;
• the business is trading at a loss;
• the business suddenly loses a key customer or employee;
• a large part of the business is sold;
• a facility is used for purposes other than those agreed with the subscriber;
• the customer does not keep to conditions set out in the loan agreement;
• the customer does not supply agreed monitoring information on time; and
• another creditor brings a winding-up petition or other legal action against the business.


Proactive contact

141. If, during the course of a customer’s account operation, a subscriber becomes aware via their existing systems that
the customer may be heading towards financial difficulties, the subscriber should contact the customer to outline their
approach to financial difficulties and to encourage the customer to contact the subscriber if the customer is worried
about their position. Subscribers should also provide signposts to sources of free, independent money advice.

142. Subscribers should determine the level of intervention required dependent on the individual customer’s position.

143. Subscribers should make available to customers straightforward information in plain English on their procedures and
systems for dealing with customers in financial difficulty. This might explain, for example, the main rights and
responsibilities of customers and subscribers, and what is involved in legal demands or a referral to a debt recovery
unit. The BBA publishes a leaflet, Dealing with Debt, which is available on the BBA and UK Cards Association
websites.

144. Where a customer requests that the subscriber deals with them in writing or e-mail (providing that facility is available)
rather than by telephone, they should do so as long as the customer remains co-operative and in regular dialogue.
Specialist assistance

145. If it becomes clear to the subscriber that the customer needs specialist assistance, the customer should be referred
promptly to a specialist team that deals with customers in financial difficulties, if one exists. In some cases, referral to
a debt recovery unit may also be necessary.


Repayment plans

146. The subscriber should explore a range of options with the customer. Usually this will require the customer to disclose
to the subscriber details of their income, expenditure, assets and liabilities, including amounts (if any) owed to other
creditors. This information will be used to develop a plan for dealing with the liabilities. In cases where there are
liabilities to multiple creditors, subscribers should recommend a free money advice service.

147. The initial arrangements for repaying the debt should be in writing or other durable medium. This will not always be
treated as a formal debt management plan, and there may be departures from this plan, if it is in the interests of
subscribers and customers. There is no need for every small departure from the basic plan to be in writing (for
example an agreement to accept a lower repayment for one week), but any amendments that change the fundamental
nature of the plan should be in writing. If, at the subscriber’s discretion, the plan includes an agreement to accept
smaller repayments, the subscriber should tell the customer whether this is regarded as ‘falling behind with
repayments’ and whether information will be passed to Credit Reference
Agencies.


148. Repayment plans between subscribers and customers may be subject to regular review. Any review period will be
agreed with the customer or their adviser, and subscribers should seek to revise contributions only at the end of the
review period or if a customer’s personal circumstances change. (Customers and/or their advisers should inform the
subscriber if the customer’s personal situation changes.)
Debt Collection Agencies

149. Subscribers should follow a due diligence process when selecting third parties for debt management, which should
include third party compliance with data protection legislation, consumer credit legislation, Office of Fair Trading
guidance on debt collection and debt management, and the code of the Credit Services Association.

150. Subscribers should use all reasonable endeavours to ensure that the Code standards for handling financial difficulties
are applied by such agents. Code compliance standards should form part of all third party contracts.

151. Subscribers should pass on relevant information to enable the third party debt manager to recover the debt.

152. Subscribers should follow a due diligence process when selecting any third party for debt sale. Any new contract
should ensure that the third party will comply with data protection legislation, consumer credit legislation, Office of Fair
Trading guidance on debt collection and debt management, the code of the Credit Services Association and the
Lending Code’s standards for handling financial difficulties even if the debt purchaser is not a subscriber. The
subscriber will inform the third party of any relevant arrangements currently being complied with by the customer.

153. It is common practice for third parties taking on a debt to request a new statement of income, expenditure and assets
to understand the customer’s most up-to-date position.



I hope this helps you. You need to write the letter and cc OFT

Regards

Mikon

simspa

Dear all

Have been lurking for a number of years, and have now had the magic lightbulb moment that everyone talks about. Never really got to grips with the debt before - remortgaged and then fell into bad habits again.

However, it can't go on, so I have started the process of a DMP with CCCS and will be writing to my 8 creditors tomorrow and shall await the results....cap one, mbna (x2!), smile, amex, barclaycard, egg, hsbc. It will be an interesting journey, but feel good that I have faced the issue at long last.

Everyone's stories on here are inspirational, and I wish you all luck with your plans for a debt free future.

eyeopener2

Welcome aboard Simpa, you've done the right thing and if your worried about anything just drop the question on here and one of us will have been through the same situation.

Mikon

WOW, I love that, if anymore of my lot start playing games then that post will be winging its way to everybody. Brilliant.

As for me, Mackenzie Hall have actually read my email and apologised!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!

I was so shocked I actually wrote a nice reply about "working together to clear my debt". They insist that CCCS have not contacted them, which isn't true, but i've asked CCCS to resend all the info.

Looks like the Goldfish is safe for now.

E2

mikon

Eyeopener2

I am only to happy to help a fellow DMP'r

Regards

Mikon

pure_dead_dopey

Morning All

Just running through, great post Mikon, knowledge is power!!!! (how often do I say that on here!!!)
The Goldfish is saved!!!! was going to write to the Sun about that one Eyeopener, but will hold off for now.

Welcome Noobies, if you need to know anything just ask, but read back, like I keep saying, knowledge is most definitely power................

mikon

tedsd wrote: »

Yay Mikon! :j

Your Exec letters make me smile, brightened up my morning, and what a change in you! Newcomers should read back on your early posts to appreciate the difference)

Loved your last post (dissertation! ) and will add it to my 'letters'.

Glad you are ok,

Ted x

Tedsd

Thanks for the kind words. As you are aware and one of the people who helped me through the early days. Things do settle down and if you start reading and researching as well as asking for help on this forum you do start to grow confident and knowledgeable of what you can do to help yourself and your creditors to sort out the debt.

One piece of advice I would give to newcomers is not to ignore your creditors I have always kept communication channels open with my creditors albeit by letter I have always kept them up to date with what is happening financially. I also ensure that my tel. no is removed from my records.

Great to be back on here.

Good luck to everyone and if anyone needs any help or advice drop me a PM and I will try and help you out.

I may help the coalition with their Autumn Spending Review in October I think I am well qualified to do that now.

Regards

Mikon