A Creditor has refused my revised payment, help!

ferret88

Hi all.

Just got word back from one of my creditors (don't know whether I can name them or not but let's just say it's a bank that sounds like a church!) saying they are refusing the payment I offered them as part of my DMP.

I sent them a financial statement and explained the amount of debt I had with other creditors (they are the second lowest amount owed) but they still want more!

They are saying they are marking me as default and passing me onto an external collections agency - what does this mean and should I be worried?

On a separate note I just received notice that the direct debits for my fuel bills are going to triple, only a matter of a few days after I sent off my financial statement with the amounts on to my DMP. What happens if I can't pay these payments to my fuel supplier now I am on a strict budget?

What a worrisome Xmas I'm going to have!

Ferret

sgx.saint

Ok, first step, remain calm. You don't need to worry about anything.

Firstly, ignore your creditor and their pressure tactics. If you have completed an accurate I&E document and you have offered them a fair and legitimate pro-rata repayment amount then you have nothing to worry about.

Let them pass the debt to an external agency. They 99% of the time are much easier to negotiate with and will most likely accept your reduced repayments.

You will of course receive a default against you, but this is part and parcel of most DMP options. It's nothing scary, just a piece of paper issued to you, and a notice on your credit file. Of course you won't be mainstream credit worthy anymore, but I'm sure obtaining more credit is not a priority

If your fuel payments change, all you do is amend your I&E to reflect this and as a result offer a lower repayment.

You can't pay more than you can reasonably afford!

madduck

Hi - totally agree with sgx.saint. Now that you are in a DMP most, if not all, of your creditors will issue a default against you. You are not making the contracted repayments on your debts - it is an almost automatic response.

Don't worry too much about it though. It will go onto your credit record, but to be honest, your credit record will be screwed for years anyway. (Can't believe I can sound so calm about it, but I've been on a DMP for 2 and a half years and been there, done it, seen the film, bought the tee-shirt).

Don't worry too much about the debt going to a dca either. As most of us already know (and the likes of CCCS and payplan would advise) they can be easier to deal with and more likely to accept the payment amount from your DMP.

Are you doing a self administered DMP or are you getting support from one of the charities (CCCS, Payplan, CAB)? If you are getting support, give them a call, they can be really good at calming you down. I may sound calm now, but I still find the occassional need to call them if one of my creditors gives me excess hastle - which does happen every now and againt - but not too often!

You will get pressure from them initially re the amount of money that you are going to pay them. They seem to work on the basis that we have money but just don't want to pay them it. Stick to your guns, you are paying them all that you can afford, don't be bullied into paying them more. They may try stuff like do you really need to spend that on food, do you really need to keep your pet (someone on the board actually got that from one of them), take out a secured loan (they aren't really supposed to give you that kind of pressure either - but they did to me!).

Most of all, keep in touch with the board. The people on here are great. Only problem is that it can be addictive and you spend more and more time on here. At least it doesn't cost anything!!!