Self managed DMP's

gerturdeanna

Hi

I'm starting on a self managed DMP with the backing of payplan. Self managed as I now have less than £5k to pay back - in fact its just under £2k. I've done a SOA and worked out pro-rata payments and sent all my letters. One creditor has now asked for copies of my pay slips and bank statements - do I have to supply this information or should what I have supplied, with the backing of payplan, be enough??

Thanks
Gert x

Bettingmad

gerturdeanna wrote: »

Hi

I'm starting on a self managed DMP with the backing of payplan. Self managed as I now have less than £5k to pay back - in fact its just under £2k. I've done a SOA and worked out pro-rata payments and sent all my letters. One creditor has now asked for copies of my pay slips and bank statements - do I have to supply this information or should what I have supplied, with the backing of payplan, be enough??

Thanks
Gert x

No you do not have to supply this information only a court has the right to this info. If you SOA is of a prescribed type accepted by the financial industry that is enough. You should not be treated less favourably than if you had gone with a dmp provider.

gerturdeanna

Thanks Bettingmad.

So I will write back to them and send them the same details again? Is there a template letter for this situation?

I didn't think they had to see wage slips etc.

Gert x

Bettingmad

Here you go i quickly drafted this for you, I hope it helps

'Dear Sir/Madam

Re:-Account/Reference Number 5xxx xxxx xxxx xxxx

Thank you for your letter dated xx March requesting a completed financial statement and proof of income.
After consultation with Payplan I have been advised to provide the Income and Expenditure proforma completed as requested.
My case was dealt with by xxxxx xxxxx.
My initial Payplan reference number was xxxxxxxxx.

However , I am advised that supplying another bank statement or wage slip could be classed as preferential treatment to a creditor.
Information contained within the document is not directly available to all creditors so would put them at a dis-advantage.

I would specifically like to draw your attention to The lending Code March 2011 which states

206. If a customer works with a debt-counselling organisation to complete a CFS, in support of a debt management plan, the subscriber should accept the CFS as the basis for pro-rata distribution amongst creditors covered by the plan. Repayment offers based upon expenditure falling within the trigger figures of the CFS should only be challenged by the subscriber if it has reasonable cause to believe that the customer’s income and expenditure figures may be incomplete or inaccurate. This provision is designed to help people in or at risk of being in financial difficulties, and subscribers should use the provision when accounts have gone into default or at an earlier stage if it benefits both them and the customer.


209. There is no reason why the content of the income and expenditure statement should not be challenged but if the figures appear to be reasonable and in line with trigger figures where a CFS is used, then these principles should apply.



I have completed the financial statement sent to you with the assistance of Payplan and therefore have complied with the requirement as described within the Lending Code. As such I request that my Income and Expenditure is accepted by yourselves.

If you do not agree to this please set out the reasons why you do not find the provided figures acceptable and in effect challenging them by requesting wage slips and bank statements.

If interest or other charges are being added to the account, I would ask you would consider freezing this so my debt does not increase.
I would further like to draw your attention to the Lending Code at the following section with regard to interest

224.Subscribers should consider reducing or stopping interest and charges when a customer evidences that they are in financial difficulties. Such reduction/suspension decision should be based upon an income and expenditure statement indicating that they are unable to make repayments sufficient to meet contractual terms. Where a customer is able to make only token payments, their debt should not increase as a result of interest and charges levied. The assessment should reflect the customer’s lack of ability to pay rather than the stage an account has reached in the arrears cycle or whether they are using free sources of debt advice. Where a firm declines to allow concessions, they should be prepared to explain why to the customer or their adviser if requested to do so.

Should my circumstances improve I will contact you again.

gerturdeanna

Thats brill

Thanks very much