Secured or not secured?

Red_Alert

Hello all, regular reader here first time poster.

I have just started to sort out a DMP with the help of the people at National Debtline but I have a question. I had HP on a car that was written off, the insurance paid out to the finance company and all was good but the gap insurance was not completed correctly and so they refused to pay out on my claim. (A mistake I shall NEVER make again) With the car being written off, National Debtline have told me that the HP is no longer a secured debt as there is nothing they can take away from me. However the finance company have been very obvious about the point that they will refuse to accept any lower payments from the DMP and that the debt is still secured so they should not even be included onto it. Where do I stand with this and what is the best thing to do?

If this debt was to be included as a secured debtm then it would take priority over my DMP and would mean I would have to apply for a DRO instead, something I was hoping I could avoid at all costs.

Thank you,
Red Alert

Red_Alert

Maybe a shameless self bump, but if anyone could help me out, would seriously appreciate it.

Tixy

Hi

If there is nothing left to secure the debt on (as the asset no longer exists) I would imagine that you can include it in your DMP.

If they refuse to accept your reduced payments they can only take the same action as any other unsecured creditor (i.e take you to court).

You will find that most creditors if directly asked will say they do not accept reduced payments but often once the account is terminated and they have issued a default many will then start accepting your DMP.

Red_Alert

Thanks Tixy, thats what I thought, I suppose I will just let the CCCS get in touch with them and see how that gets on.