Letter to creditors when setting up DMP

saltnvinegar

Hi All

I had a PM today from a forum member asking what I wrote in my letters to my creditors when setting up my DMP.

As this was a Q and A I thought would benefit a few people I'll post my answer here.

Before you send anything follow these rules also when posting letters to creditors:

1) Send everything recorded delivery. Keep a copy of the letter and the receipt from the post office in case you need it later as evidence.

2) Never sign a letter. Digitally sign it if you have to.

This is the letter I started off with all my creditors. Feel free to use it and tweak to suit your circumstances.

Good luck

SnV

Dear Sir/Madam

Account number xxxxxxxxxxxx

Unfortunately, since opening this account with you, my financial circumstances have changed and I am unable to afford to agreed monthly payments because of <enter reasons here if you wish otherwise say something like 'multiple accumulative reasons'>.

I have been in discussions with <Enter name of your DMP company here if you are using one> and with their guidance I enclose a Personal Budget sheet which shows my total income from all sources, and my outgoings. As you can see I have only £xx.xx per month left for my creditors. The offers I have made to my creditors have worked out on a pro−rata basis, and I have written to all my creditors asking them to accept reduced payments.

In view of my circumstances, please would you agree to accept a reduced offer of £xx.xx per month to assist me during this difficult period.

If interest or other charges are being added to the account I would be grateful if you would freeze these so that all payments made will reduce what I owe you and assist me in managing my debt liability responsibly.

Should my circumstances improve I will contact you again.

Thank you for your assistance and I look forward to hearing from you as soon as possible.

Yours faithfully

DIGITALLY SIGN

Tixy

Hi SnV

I know its not quite on topic but I'd also mention to anyone reading not to send this letter for any debts with your own bank until you have a new bank account set up elsewhere.

king100

Personally I would send the SAR request for a valid CCA 1st but thats me, no morals.

Next if invalid would be letter in dispute letter then 6 years later SB letter when DCAs come a calling.

saltnvinegar

Tixy wrote: »

Hi SnV

I know its not quite on topic but I'd also mention to anyone reading not to send this letter for any debts with your own bank until you have a new bank account set up elsewhere.

Yes absolutely right, this is the letter I sent after all the prep work was done i.e. setting up new account, arrange with my work to get wages paid into new account etc.

2011_will_be_debt_free

Why do you not sign it?

Tixy

2011_will_be_debt_free wrote: »

Why do you not sign it?

Because debt collectors agencies have been known to scan a signature and use it to forge old agreements etc.
They tend to be caught out if they use a married name signature but the agreement was taken out before the debtor was married!