DMP Mutual Support Thread - Part 7

HC1971

Thanks Helenc1984 and Raksha

it helps to know there are others having the same problems.

After sending in my signature, HSBC have now written implying that i am ignoring the problem and to contact them within 10 days, suggesting i may have to return my cards (already done), and suggesting i contact a debt management company if i am having difficulties (Payplan contacted a month ago). I did ring up (before receiving advice on here to let payplan deal with it all) to discuss this as they got my back up, and after being passed to and fro, the adviser said that the department in question is refusing to speak with me and I must only deal with them through payplan!

Hope you both have better luck letting your DMPs deal with it all.

Miguel1979

Hi all,

My husband and I are seriously considering a DMP, which we plan to do through CCS.

We currently have approx £34,000 unsecured debt.

I have a couple of questions, I am hoping you might be able to help me on.

1) Will this affect my credit rating? I am assuming it will be highlighted on our credit accounts?!
2) If our situation was to get worse at a later date, could we still enter an IVA or bankruptcy or would being in a DMP stop this being possible?
3) How likey is it that our creditors will accept the DMP? Are there any particular companies out there known for refusing them?
4) Would we need to open a new bank account prior to setting this up? We currently have seperate bank accounts both of which we have oversrafts on that we would want included in the DMP.

Thank you for your help.

HC1971

Hi Miguel1979

A DMP will affect your credit rating as the creditors often list that you are on a DMP with credit reference agencies.

Being on a DMP would not prevent you from filing for Bancrupcy at a later date but not sure about an IVA (im sure someone else on here will be able to advise on that).

Creditors dont have to accept the DMP, so far four out of 8 of mine have and I have had 1 refusal from Santander and the others are pending. As I am new also, I don't really know about companies that are particularly difficult.

You would only need to set up a new bank account if you also have debts with the bank you are with as they can use offsetting to take money paid into your bank account to pay off your credit card, for instance, without letting you know.

Good luck

HELENC1984_2

what you can do is call up experian and ask for a notice of correction, so you can place this on all possible debts that may cause you grief (i have few late payments on some cc's but not all!). what this means is that all lenders will have to look at your file by an individual, instead of being run through and automatically declined, it doesnt cost anything to do either. i did this as i was worried about when i go to renew my mortgage (end of Dec 2012) but at least its on there now, gives me a bit of peace of mind!! i got told that my DMP have a good relationship with HSBC of whom the majority of my debts are with, but a DMP will initially affect your credit rating, but once agreements are all in plan, it will start to build itself up again so try not to panic too much!!

i personally havent set up a different bank account as i dont have any debts with the bank i am with (apart from a teeny overdraft, i am with santander) but its advisable to set up a basic account with a bank you do not have any debts ewith, someone may need to clairfy that? just seen your post HC1971, sorry!!!

xxx

ianmak

HELENC1984 wrote: »

what you can do is call up experian and ask for a notice of correction, so you can place this on all possible debts that may cause you grief (i have few late payments on some cc's but not all!). what this means is that all lenders will have to look at your file by an individual, instead of being run through and automatically declined, it doesnt cost anything to do either. i did this as i was worried about when i go to renew my mortgage (end of Dec 2012) but at least its on there now, gives me a bit of peace of mind!! i got told that my DMP have a good relationship with HSBC of whom the majority of my debts are with, but a DMP will initially affect your credit rating, but once agreements are all in plan, it will start to build itself up again so try not to panic too much!!

i personally havent set up a different bank account as i dont have any debts with the bank i am with (apart from a teeny overdraft, i am with santander) but its advisable to set up a basic account with a bank you do not have any debts ewith, someone may need to clairfy that? just seen your post HC1971, sorry!!!

xxx

Of course remember that if you end up with a Default, then they will stay on file for 6 years, and so affect your Credit Rating...

Twit_Head

HELENC1984 wrote: »

i have received a letter from HSBC saying the exact same thing!! i have sent the correspondence to my DMP but should i go back in and re-sign something as i personally dont see why they need my signature as it hasnt changed plus i have been a customer of theirs since i was 16 so i thought that wa a bit weird, shall i go in and sign something?

Thanks in advance

x

As others have recently said DON'T sign anything.
It's a sneaky way to obtain a signature to cover themselves. If your original credit agreement/financial doings haven't been set up properly some creditors wil play dirty tricks and panic you into playing into their hands.
Just continue with your DMP setup, refer queries to your DMP company or ask on here. Welcome!

'Twitty'

Twit_Head

HC1971 wrote: »

Thanks Helenc1984 and Raksha

it helps to know there are others having the same problems.

After sending in my signature, HSBC have now written implying that i am ignoring the problem and to contact them within 10 days, suggesting i may have to return my cards (already done), and suggesting i contact a debt management company if i am having difficulties (Payplan contacted a month ago). I did ring up (before receiving advice on here to let payplan deal with it all) to discuss this as they got my back up, and after being passed to and fro, the adviser said that the department in question is refusing to speak with me and I must only deal with them through payplan!

Hope you both have better luck letting your DMPs deal with it all.

Frustrating isn't it? But don't fret or panic, this is quite the norm.
At the start it is all a huge confusion as creditors manoeuvre to ensure they get money from you!
Some of us on here believe in dealing with our creditors directly to keep them informed (especialy in the early stages)
I prefer written communication, others find the phone more direct.
Keep your DMP company informed, expect conflicting messages from creditors at the start.
Don't be disheartened - you're going the right way now

'Twitty'

Twit_Head

ianmak wrote: »

Please hang around though, we are all in this together, and will give support when we can, as mikon says.

Failing that, please keep us updated on how you get on.

Ian

I've been thinking (painful! ) re: Ian's recent comments about keeping in touch on this thread.
Just wanted to say; please, please don't be afraid to post a message here.
We all bring something different (but valuable) when we connect with each other.
Some will give expert advice, others will compare or update their DMP, and sometimes there will just be someone here listening with a hug and a shoulder to cry on.
No question or comment is silly or stupid.
Life will never be the same again for all of us but here is a great place to learn/inform/support.

'Twitty'

suze72

Miguel1979 wrote: »

2) If our situation was to get worse at a later date, could we still enter an IVA or bankruptcy or would being in a DMP stop this being possible?
3) How likey is it that our creditors will accept the DMP? Are there any particular companies out there known for refusing them?
4) Would we need to open a new bank account prior to setting this up? We currently have seperate bank accounts both of which we have oversrafts on that we would want included in the DMP.

Thank you for your help.

Hi Miguel

As said before, bankruptcy is not a problem following DMP, my OH went bankrupt after being on a DMP for a while. Not sure about IVA but I suspect it would be the same as a DMP is really an informal arrangement with your creditors.

Creditors vary hugely in how accepting they are of DMPs - even the same creditor will treat 2 debtors completely differently, I think sometimes it must be luck of the draw as to who deals with your case. Personally our worst creditor by far were Lloyds TSB who were absolute pigs but thankfully we got rid of them with OHs bankruptcy

As for bank accounts it is far easier to start your DMP journey with a clean slate so I would advise getting a new account set up asap, one not linked to any of your creditors. A basic bank account is best as there is no overdraft facility attached.

Good luck
Suze.

Raksha

Can anyone explain why the advice is not to sign anything from a creditor please?