DMP not working

feeling-good

By entering a DMP you can ask your creditirs to either stop or reduce interest but they don't have to. Not good is it really as you are obviously trying to pay what you owe and are regular at paying to.
I was in a DMP for 5 years, one of my creditors was LLoyds TSB ( i think they own halifax now as well ) started off with an overdraft with them on my DMP of £800, paid every month for over 5 years, £10 per month towards that debt, January this year I managed to get them to accept a settle ment of £950, Complete con artirts ! They used to send best wishes and offers of cash to me all the time, now they send me hate mail....lol

Jinx

My suggestion would be to pay them a token amount, eg 1 pound a month. If that doesnt make them sell your debt nothing will. Morally I guess you should pay them what you can afford, but if you suddenly find yourself a bit short and have to drop them to a token payment well that would be unfortunate wouldnt it??

They could of course take you to court, but if you've been on a DMP for a while - I doubt they would (no guarantees though) as they know you are skint...

I've had all the threatening letters over recent years and not once been near a court and I've done payments, up, down and token pounds as circumstances dictated

desparatelysinking

Thanks for all the advice. I have no assets so thats not a problem, just don't want a CCJ as I was credit checked when I started my job and although I don't think they keep checking redundancies are being made so don't want it to stop me getting another job should the worst happen. I already had 2 defaults when I started and this didn't bother them.

I think maybe I should try the F&F's first. I can afford to offer them all 43% using the money my mum can lend me. Do you think I should offer this in writing and tell them it's all I have. I know they'll probably say no but its worth a shot I suppose.

Jinx

If you want to do full and finals then have a search on this forum for some template letters and more specifically re the wording you want. You NEED them to agree in writing that they are accepting it as full payment; there have been people here who have thought they were done with a debt, only for the remaining balance to be pursued. Im not saying dont go for it, if you can get shot of a debt for less, then that is great Just please be sorted before you do it...

di3004

Hi there

I remember having this problem with Lloyds, all sorted now though, but the charges etc were rising, and in the end we made a complaint to the FOS under the hardship criteria, it had only taken a few months where the FOS upheld our case, and said the bank finally accepted if they had dealt with the case earlier by stopping the charges then they would not have gone as high as they did, so they refunded the amount to the account which brought it down and we were also compensated £100 directly to ourselves for the distress and inconvenience.

Thankfully its all fallen into place now.

Hope you get yours sorted for as soon as poss, any problems tell them you will complain to the FOS.
Good luck.