Struggling with debt? Ask a debt advisor a question

helena83

Hi

I am having a nightmare getting a new bank account opened at the moment and you have advised me that you can't start the DMP until this is done. I am waiting to hear back from Co-op about opening a cashminder account. I made the application over the phone on Friday and was told it has been referred to the underwriters. As this is the same as what happened with the Natwest account and it was then declined I am not holding out much hope.

Is it possible for me to set up the DMP direct debit on another person's account for now? This will only be a short term solution I guess since I still need to have an account to pay the mortgage etc out of. I just hope someone will let me have an account. I can't understand that problem with the accounts up to now, my credit file shows 1 account in arrears by 1 payment and 3 accounts over the agreed limits but that is all. Any ideas?

Thanks

rbw0471

CCCS_Sue wrote: »

Hi Alan and thank you for your message

Normally your creditor will send you a default notice after three to six missed payments, but this can be some time after.This will show on your credit file for six years from the date of issue. The creditors have to issue a default notice before any legal action can be taken.
Once issued it is difficult to remove them.
Even though you are on a DMP, this is part of the standard debt collection process.
Once your debts are completely paid off, you could try writing to the creditors to ask if they would consider removing the defaults but there are no guarantees.

If you need to discuss this further, you can call our helpline for further advice

Regards
Sue

Hi Sue

Thank you for your reply.

I understand creditors may send out default notices, and why they do. What I would like to know is should they be doing this every year when the dmp is reviewed, or just when the debt is originally defaulted on, ie: when the dmp is first set up?

Many Thanks

Alan

CCCS_Sue

rbw0471 wrote: »

Hi Sue

Thank you for your reply.

I understand creditors may send out default notices, and why they do. What I would like to know is should they be doing this every year when the dmp is reviewed, or just when the debt is originally defaulted on, ie: when the dmp is first set up?

Many Thanks

Alan

Hi again Alan

A credit agreement should only default once.


It is not always issued after 3 to 6 months payments have been missed. It can be issued some time after.

Kind Regards

Sue

MiChris04

I am currently moving home & need to arrange a new mortgage deal
I have checked my credit report & noticed that my CCJ from 2004 is still on my report but have been told by the issuing court & credit reference agencies it will leave my credit report 30/11/2010
If I am going to get a new mortgage with my existing lender (santander) or a new lender will this cause me any problems or will they take into consideration I have been debt free for 6years & have kept upto date with all mortgage payments for 8years
Thanks

Mark,_London

Hello,


I have a credit card (CC) debt that was £13,300 at the time a CCJ was awarded against me. A Charging Order was then issued against my house because I couldn't pay the CCJ. I have made no payments against the debt and I have been unemployed for over a year.


I was rather surprised to now receive a letter from solicitors acting for the debt company I owe money to that stated that the debt was now £18,200 because of added interest.


According to the statement they have just sent me, each month they are charging me two types of interest - one just called “interest” at a rate of 8% and which amounts to around £90 per month and one called “post judgement interest at 12%” which amounts to around £45 per month.


I was surprised to receive this letter because I have other CCJs for CC debts but the other companies have sent me statements showing that no interest has been added post CCJ, even when they have also had a Charging Order issued.


My questions are various:

1. Can interest be added post CCJ for a CC debt? Advice that I have read elsewhere suggests that it normally can't for CC debt, save for some cards that have a 'special clause' (and that advice sounds odd as you'd imagine all CCs would have that 'special clause' about contractual interest; why would some CC companies want to lose out)?

1. If interest is payable, do the two types of interest (and interest rates) make sense? I appreciate that doubtless the two rates are statutory interest (8%), and that plus base rate (4%). So if interest is payable, then at what rate(s)?

1. Does the fact that the company hasn't contacted me for a couple of years (I have always been at the same address) have any bearing? Could there be an obligation on them to issue regular statements (and if not, forgo some payment?). I was shocked to see interest was still being added.

1. The solicitors write with the statement that our client “may be able to freeze the interest if you can enter into an appropriate payment plan”. This raises my suspicions about whether I owe them interest or not because I told them, before they wrote this letter, that I would only be able to make a token payment because I am unemployed and they seemed agreeable to that. I can't see that any company would voluntarily give up about £135 per month (which is what they are claiming as interest) to instead revive a token payment of, say, £40 per month.

1. If they are wrongly trying to charge me interest, I would like to take that matter further. Do you know what solicitors body or similar I could refer them to?

Any advice you can offer is very much appreciated.

CCCS_Sue

greenback wrote: »

Hi

I set up my DMP with CCCS in July 2009. I have four payments left until my debts are cleared. What happens after this? Do CCCS send a letter to me to say that my DMP is finished or do my creditors send me letters?

Thanks

Hi and thank you for your message

Fantastic to hear that you only have four payments left to being debt free

Our client support team will contact you to confirm when your DMP has finished and the last payment has been made.


Kind regards

Sue

CCCS_Sue

gabriella90 wrote: »

Hi CCCS,

I'm am currently on a DMP with yourselves and all is going well. I am due my review in January, my circumstances hopefully will have changed with regard to a jobs enabling me to increase my income.

Barclaycard and RBS have only agreed my DMP for a year. Do i write to them asking them to continue the agreement or do CCCS send letters around the time of my review?

Thank you for your time.

Hi gabriella and thank you for your message

Good to hear that all is going well with your plan!

After your review in January, your updated budget will be forwarded to your creditors and a renewed offer of payment will be made if there is a change in your circumstances.

We would contact them on your behalf.

Kind Regards

Sue

CCCS_Sue

helena83 wrote: »

Hi

I am having a nightmare getting a new bank account opened at the moment and you have advised me that you can't start the DMP until this is done. I am waiting to hear back from Co-op about opening a cashminder account. I made the application over the phone on Friday and was told it has been referred to the underwriters. As this is the same as what happened with the Natwest account and it was then declined I am not holding out much hope.

Is it possible for me to set up the DMP direct debit on another person's account for now? This will only be a short term solution I guess since I still need to have an account to pay the mortgage etc out of. I just hope someone will let me have an account. I can't understand that problem with the accounts up to now, my credit file shows 1 account in arrears by 1 payment and 3 accounts over the agreed limits but that is all. Any ideas?
Thanks

Hi helena83 and thanks for your message

Normally, you should have no problems opening a basic ‘Cashminder’ account with the Coop.
As you are only asking for somewhere to deposit your money to pay bills, you are not a risk to the bank as such, as you are not asking for an overdraft facility, or any other form of credit.
Section 3.1 of the Banking Code states that banks subscribing to the code will offer a basic account if it is specifically asked for, providing the qualifying conditions are met.

Banks are obliged to check the identity of all their customers, and are allowed to refuse you an account if you are not able to provide suitable identification. This will usually be a document proving your name (passport or driving licence) and address (recent utility bill), but each bank has slightly different criteria for this.

If you encounter any further problems, then please contact our client support team who will be able to advise you further.

Kind Regards

Sue

bohemian

Hello,I am new to the forum and would greatly appreciate some help.I have recently been declined for car credit and credit cards despite being a married home owner and being in a relatively well paid and secure job.This surprised me so i went online and checked my credit file.
To my surprise i have 5 defaults listed which explains why i am being declined credit.
3 of these defaults are from British Gas one for £660, one for £175 and one for £332.These are apparently related to a property i only lived in for 18 months and paid a monthly direct debit to British gas for.I received no contact from them and they just whacked these defaults on there with no explanation at all.
There is also a default from Orange mobile phones for just £35.This is because i cancelled my direct debit and rang orange to cancel my contract a month in advance as you should.They then told me that i hadnt cancelled a month in advance and i owed them a month (despite me taking out a new seperate contract with them)i told them i had done everything properly and i wasnt paying the months charge and asked them to go and listen to the recorded telephone call in which the operator assured me i owed nothing which they said they would do.I heard nothing further from them and they went ahead and whacked a default on there too.
The last one is possible the most annoying.This is from npower who accosted me in a shopping centre one day explaining how they were cheaper.I told them i didnt have time but was interested as i wanted to save cash.They asked me for my home address so they could send out information in the post.I gave them my details and left.a couple of months later, i received a letter from them stating that i owed them for utilities charges as they had taken over the account a couple of weeks after i spoke to the rep.I refused to pay them on the grounds that they fraudulenty took over the running if the account and told them to take me to court if they wanted and that i believed any court would understand my stance.Again, no further contact just a default whacked on my file.This is ruining my life at the moment as with two young children and a new house there is a need for a small amount of credit at the moment which i simply cannot get because of these defaults
Is there any way i can get them removed ????

CCCS_Sue

MiChris04 wrote: »

I am currently moving home & need to arrange a new mortgage deal
I have checked my credit report & noticed that my CCJ from 2004 is still on my report but have been told by the issuing court & credit reference agencies it will leave my credit report 30/11/2010
If I am going to get a new mortgage with my existing lender (santander) or a new lender will this cause me any problems or will they take into consideration I have been debt free for 6years & have kept upto date with all mortgage payments for 8years
Thanks

Hi MiChris and thank you for your message

As this CCJ will leave your file at the end of the month, it should be ok, but it would be entirely at the discretion of the lender. They usually take your whole circumstances into consideration. They will certainly look at your past payment record.

I would recommend that you speak to your mortgage lender. They will be able to advise you further.

Hope all goes well with the move!

Kind Regards
Sue