Question on DMP Timeframes

ukjs1976

Hi again,

I've posted elsewhere on this thread that I'm in the process of setting up a
DMP through the cccs.

My question for those who have been through the DMP setting up process is about the time frames.

I posted the completed dmp forms to the cccs on Thurs 29 July in the evening, first class, should have been collected from the post box on Friday 30 July and delivered Sat 31 July to cccs (I assume they are shut over the weekends so will pick up the package on Monday 2 Aug also assuming there isn't a big backlog, which there might be for all I know).

My direct debits to creditors are going to return in august and therefore before the 1st sept (which is the earliest the dmp could start). I have made a token £1 payment to one creditor so far (the dd for this creditor will return on wed 3 aug).

Does anyone know if the returned dds will be recorded as defaults even though i've sent the letters advising financial difficulty and setting up dmp with the cccs to the creditors?

I'm actually not sure what the implications of having DDs return and therefore defaults are anyway?


Many thanks in advance.

podperson

The cancelled dds by themselves will not automatically cause a default, it will depend on the individual creditor and whether they are willing to accept the payments from your dmp. Just make sure you have contacted them all to advise you are now with cccs and when your dmp is going to start from.

Tixy

Before a default can be registered with the credit reference agencies they will have to send you a letter out with a formal default notice.

The returned DDs so far will just be registered as missed payments.

When on a DMP it is usual that most creditors will default you after a few months of low payments (although some may mark your file as arrangement to pay instead).

The implications of defaults is that they stay on your credit file for 6years and show other creditors that you have defaulted on previous credit agreements. They will make getting any new credit or even a new full bank account difficult - but as part of the DMP you will have agreed not to take out any more credit anyway for the duration of your DMP.