Is a Debt Management Plan the way to go?

angelgirl77

Hi there. New to the forum and wanted some advice from those with similar experiences. Basically my husband was made redundant, found a job, but unfortunately was not enough income to keep us going. ( I work part time looking after our 2 small children)

We have just started a DMP with the CCS (just made 2nd payment). All creditors have been sent their letters. The majority of the debts are credit cards/loans. My husbands have all been accepted by his creditors and some have said they will immediately drop the interest. These are for much larger sums than mine. I owe £1,500 each to Tesco and Lloyds TSB cards. Just received a letter from CCS saying Lloyds have rejected the offer I have made for a second time. They are continually adding interest and deny ever having received any paperwork through when I ring them. A common trick with them I am told. They just will not show an ounce of understanding. What makes me laught though is that I have been with that bank since school and have never not paid them what I owe until now. Their true colours are showing.

I had received a letter from Tesco acknowledging my plight and it was not at all threatening and I felt better. But now they have contacted me with a default notice saying they want the 2 missed payments (£80 +) otherwise will start going down the legal proceedings route.

All I want to know is, is this common whilst on a DMP?. I thought that the CCCS had so much weight behind them that if they made it clear you were under financial stress, the creditors should more or less take notice and accept your reduced offer. I expected that the DMP option is not easy, but what worries me is the threats of eventual legal action, debt collection agencies, etc.

We are considering asking my dad to help us to pay of these 2 cards just to stop the added stress that Lloyds and Tesco are causing. I would hate this. Also if I do eventually get debt collection agents knocking if Tesco sell this debt on (as I susppect that this is the road they are heading down), will I have to pay them extra money on top of what I am paying via the CCCS?

I know what I am experiencing is probably very common, but it's new to me as although I have never been flush, I have always tried to pay these bills. I would appreciate any advice.

Hannah_10

I think saltnvinegars post will be of interest to you, here it is... https://forums.moneysavingexpert.com/discussion/2673537

Any questions still outstanding after reading post 1 of that please do add them here.

eyeopener2

Sorry to be short here but I have to dash.

These are all the usual tricks played by lenders to get you to pay more. Keep paying CCCS and write to Lloyds explaining your situation again (registered post). I had a similar problem with Santander and eventuall made an official complaint, that seemed to sort things out.

Tesco can, and have, defaulted you but its unlikely that they will now pursue you through the courts. Just keep paying CCCS.

If the debts are sold to a collection agency they cant just come knocking on your door. In fact you may find it easier to deal with them as they will just accept the CCCS payment as they get the money with little or no effort.

Relax a bit and see how things progress. If you want to joing us on the DMP thread we have generally all been through the various stages, problems, demands so can offer advice.

The link is here....
https://forums.moneysavingexpert.com/discussion/2388003

angelgirl77

Thanks so much for your advice, I will follow this through. I seem to have been keeping a level head with it all up to now, as I knew anything was better than the way we were living before. It just all seems to have caught up with me this weekend.

churchrat

hello

just keep going on the way you have, all will settle down in the end. The unhelpful banks will stop when they realise that there is no more money in the end. Lloyds were unhelpful for us at the start, but it was alright eventualy.

Don't forget the most important rule. NEVER speak to anyone on the phone. They will all deny agreeing anything that they spoke about the week before, keep it all in writing and send all by reg post, get evereything signed for at the bank etc.

good luck with it all, don't let it get to you.

JES_F1

Like others have said, just keep paying the CCCS - don't pay anything extra to any creditors outside this.

The first couple of months or so ARE a bit grim while it settles down, and you will get bombarded with letters and phone calls.

With phone calls, refuse to go through the security questions, insist they put anything in writing, and hang up. If you continue to be hassled, there's a 'stop hassling me by phone' letter available on one of the template threads.

With letters, I used to write back reminding creditors of my DMP and giving them my CCCS reference number.

Some creditors take longer than others to accept DMPs. For me, most accepted within about three months but I had to go 'into battle' with Nationwide, and it took 18 months!

The CCCS are great so do call or e-mail them if you're concerned after getting a letter or phone call. I found e-mailing them helpful as it meant I have records of my queries and the CCCS' response/advice - and can follow them up again easily if necessary.

Good luck!

saltnvinegar

Hannah_10 wrote: »

I think saltnvinegars post will be of interest to you, here it is... https://forums.moneysavingexpert.com/discussion/2673537

Any questions still outstanding after reading post 1 of that please do add them here.

Thanks for the plug Hannah_10

Angelgirl77

You're absolutely right what you are going through is par for the course and common when you start a DMP.

You mention that you thought the CCCS had a lot of weight behind them and they can help with your creditors. Well they do and they can.

Trouble is creditors know that once you are on a DMP and they accept it is a loooooong road for them to get their money back and make a profit.

This is what you have to keep in mind here, these people lend you money to make a profit. Nothing more, nothing less.

What Lloyds and Tesco are doing are deliberately applying the pressure on you so you consider them in preference to your other creditors. And it is working as you considering asking your dad to help out.

Whenever these people call you just quote your CCCS ref number and inform them you will not discuss anything over the telephone.

If they still harass you by phone make another post and someone will point you to the template letter to send them regards harrassment and telecommunications act.

Above all stay positive and congratulations on starting to deal with things and getting your debt clear

:T

SnV

angelgirl77

Thank you all so much for the advice. I have sent letters out again (registered) being very firm and saying more or less that they are not getting anything on top of what I am paying because they are no more important than any of my other creditors and I cannot offer them preferential treatment. I will see how I get on and speak to the CCCS if they carry on. I don't answer the phone if I don't recognise the number so all correspondence has been mainly via letter. The CCCS have been keeping me informed about the situation with Lloyds rejecting my offer (something along the lines of "further budget required") and say I need do nothing at present.

Feeling much better now and it is mainly due to the posts on here.