Fell Sick..all my creditors have rejected DMP

MoneysTooTightToMention

I posted a few weeks ago about LLoyds TSB rejecting the DMP for my overdrawn bank account, they have sent a few threateing letters but nothing else, however they have refused to add the DMP paymets to my balance, so Im i the process of filing a complaint agaist them.
I logged into justabank today to find that after initially accepting my DMP (first payment went out on 1st May) my creditors have all now rejected the DMP offers. where do I go from here? I feel like Im back to square one which means I can expect a barrage of letters,debt collection action etc.Im starting to feel quite ill as Im dealing with all of this alongside my marriage breakdown:(

GeorgieFTB

Ohh honey have a hug...:grouphug:

Right time for the pep talk... you are not back to square 1, you are dealing with your debt, DO NOT FORGET THAT!!!

Have a fag/drink/chocolate/cuppa* (*delete as applicable) and take a depp breath, no one has ever said this will be easy, if it was everyone would live within their means and MSE would not exist...:money:

I like to think of creditors as children, as long as you are firm and consistent they will learn, some are brighter than others, some quicker on the up take but all end up listening in the end.

Who is your dmp with, when one of my lot had issues they were with CCCS and there was quite a bit of help...

Gx

chanz4

The best bit of advice use a free dmp company

fermi

chanz4 wrote: »

The best bit of advice use a free dmp company

PayPlan is a free DMP company.

fermi

It's not unusual for creditors to reject DMP offers at first.

While they are free to reject offers, that only means that they do not have to formally accept the DMP and freeze interest/charges.

They are not allowed to refuse payments via the DMP company. They must accept the payments and apply them to the balance of the debt.

You just need to talk to PayPlan, who will probably then do another round of asking companies to accept the DMP.

It can be frustrating, but you just need to persevere.

Deep_In_Debt

As fermi said above, creditors take a while to accept. Ride the storm for a while and it will all settle. Debts being passed to a debt collection agency is not necessarily a bad thing as they buy the debts for literally pennies in the pound so are easier to negotiate with and will freeze interest and charges and accept lower payments.

Good luck on your debt free journey.

lila77

In total agreement with the above hun . When I entered my DMP with Payplan I had several of my creditors turn it down and I was also really worried ( MBNA were the most stubborn) B ut Payplan sorted it for me.
\\just keep making your payments to Payplan and they will continue to pay your creditors.
I am sure in the end they will accept or just sell the debt on to a DCA who are more likely to accept. i hope it all works out for you and remember you are not alone xx

jules1973

Just keep paying...

I have posted on here several times about the refusal of Nationwide/KPR to accept our DMP. They had threatened court and CCJ's. In fact it got to the point where I was just expecting the court papers...however.

Today we received a letter to confirm they will accept our payment for next 12 months and then review our situation.

I have been on the DMP for four months now and things are finally starting to settle.

I know it's hard but try to take heart in the fact your debts will soon be coming down, not going up. :T

MoneysTooTightToMention

Thank you all, its been literally emotionally draining on top of my impending divorce. I have spoken to my personal advisor by email and she has said that I should just keep paying, but to advise them of any court letters received, its all so worrying, I guess they are all rejecting because I can only afford small payments

GeorgieFTB

Small payments or not you are still paying... they will just have to lump it... you just have to hope they sell the debts on to DCAs... which is a slightly odd situation to be in!

The divorce will eventually work out for the best...the important word in that sentance is eventually... if you feel like a rant again this is a very good place!

Gx

lila77

I only pay £50 per month to 7 creditors which is all I can afford. They all accepted eventually and the letters and phone calls stopped.
Just let Payplan know of any changes, as creditors are good at passing debt on and not letting you know, and the letters etc start again.