DMP & Mutual Support Thread - Part 8

Gazza1964

Gazza1964 wrote: »

Heard from Cahoot today - no fees and no more interest - hooray.

Still waiting to hear from three others - surprised they have not rang or written especially as they have cashed the token payments.

Santander emailed me today to inform me of new charges on my account - £20 for being in my overdraft - thanks Satan-der thats really helpful.

This is the only thing I have heard from them since I posted my token payments - which show as cashed on my statement -

Should I ring them - what do you think?

matty2712

Hi all,

My 1st time back for about a week and a half, just a little update on the goings on.

All creditors have received a token payment for August, and very surprisingly had some quick replies from creditors, Mainly Barclaycard, they have stopped all interest on the account and have been a great help, Vanquis had been calling 3-4 times a day i eventually give in and answered their call and explained about the plan, no calls since last week yippeeeee.. My only concern was the provident loans, and believe it or not they havent contacted me, but i am waiting until they do.

My DMP is alll ready to go, I am starting on Oct 1st. I have an emergency fund set up. so cant wait until it starts for real.

My bank account with the Coop is nearly fully operational, just awaiting the OH wages to be transferred to it.

So at the moment everything has been very quiet, I can only suggest that the creditors must be looking through our accounts with them...

poppy52

Hi everybody.

I am in the sixth year of a debt management plan with Payplan. It has gone well and I have paid a huge amount off my debt. Payplan is currently negotiating full and final offers with my creditors who are being very slow in responding. What I am really afraid of is if they put back all the interest they froze - this is keeping me awake at night. I've not thought much about it all in the last few years - just made the payment every month and got on with my life. But now it's nearing the end I am getting depressed about it all - what if they don't accept the full and final offers (about 75% of the debt) or put huge interest payments on? They can't do much to me - I don't own a house or car and am semi-retiring at the end of the year to move in with my partner. I just want to start a new life with him and forget the last few years of debt!

poppy52

Forgot to add that when I began the plan I opened an account with the Co-op - they treated me like a human being, couldn't believe it compared with what Lloyds had put me through when I got into difficulties. Reading what someone else said here, I am going to ask the Co-op for a more grown-up account - currently have a Cashminder with an electron card which isn't always accepted.

soappie

Hi peeps,

Quick question - I entered a DMP at the beginning of July. One of my credit card creditors, that has accepted the proposal by PayPlan, is also the bank with whom I have a mortgage.

I have not defaulted or missed a single payment on my mortgage ever. But, I have an endowment mortgage (don't you just love the confidence of such vehicles of investment that were sooo1980s and before?). My endowment policy has, of course, taken a hammering. At the moment, without the terminal bonus, it will probably pay off 50-60% of the outstanding capital debt.

On recent figures, the remaining capital debt once the endownment has matured will probably work out to be around 20-25% of the total value of the property if it was sold.

I received a letter today from my mortgage provider (after speaking to the credit card side over the phone last week and pointing them in the direction of the DMP) which says basically, they realise the term of my mortgage will finish in about 26 months and that they need to know what repayment plan I have for the mortgage in place....

They then go on to ask for the latest projection figures from the endowment along with any other investments I may have to form a repayment plan. (for over two years time remember)

They then give options like switching to a repayment type mortgage, making regular overpayments, etc. etc.

They also say that if repayment plans I submit don't satisfy them they "may ask me to transfer some or all of your mortgage onto a repayment basis"

I'm wondering if anyone can tell that

a) this letter is pure coincidence and that mortgage companies *always* write to those customers who have an endowment policy maturing in about 25 months time giving the same info

or

b) It really has been triggered by the credit card flag - if it has, what can I do to counter it?

Thanks in advance

Tigsmom

Gazza1964 wrote: »

Santander emailed me today to inform me of new charges on my account - £20 for being in my overdraft - thanks Satan-der thats really helpful.

This is the only thing I have heard from them since I posted my token payments - which show as cashed on my statement -

Should I ring them - what do you think?

Barclaycard did the same to us. Then a week later we got the nice letter saying they're freezing charges and interest. I think it's just different departments not speaking to each other. If you give it time they should respond to the letter you sent with the token. If you haven't heard anything in a couple of weeks write or ring them reminding them about your letter which they obviously received as they cashed the cheque and point out that adding charges isn't helping to clear it.

Growurown

poppy52 wrote: »

what if they don't accept the full and final offers (about 75% of the debt) or put huge interest payments on?

My assumption would be (and you know they say you should never assume anything) that they can't put interest back on the money you have already paid back. I have heard of people having interest start again but I always assumed that interest was only applied to the remainder of the debt.

Hopefully someone with more knowledge will be along to help. My guess is that if they don't accept then you just carry on with the DMP.

poppy52

Growurown wrote: »

My assumption would be (and you know they say you should never assume anything) that they can't put interest back on the money you have already paid back. I have heard of people having interest start again but I always assumed that interest was only applied to the remainder of the debt.

Hopefully someone with more knowledge will be along to help. My guess is that if they don't accept then you just carry on with the DMP.

Thanks. I can remember how awful I felt before I started the debt management plan. Once it started and things had settled down, I felt so much better, just paid my monthly payments and felt the debt getting smaller. I didn't even think about it for months at a time. Now it's almost over and Payplan is talking to my creditors about full and final offers, I feel at their mercy again and all the feelings I had when it all started are back again. So much else in my life is going well, I now have a partner after many years of bringing up my son alone and we are about to retire but now all I am thinking about is my creditors and wondering whether I will ever be free of it all. Coming here and reading other people's posts helps - you know you are not the only one in the debt boat!

Tigsmom

HSBC have added a 'late fee' to my account. I paid them a token 10 days before payment was due. :mad:

I've sent another token today along with another letter asking them to freeze interest and charges.

It really annoys me that they cash the token, which means they have read my letter, then ignored it and added charges anyway. No doubt I will get another letter in a week or so saying they have my letter, after they have aleady put the charges on of course. Why do they wait until after my payment is due to realise I am only making a token payment when I have already written and told them this in advance? Do they think maybe I was kidding and didn't really mean it?!!

Time_to_face_the_music

Tigsmom wrote: »

HSBC have added a 'late fee' to my account. I paid them a token 10 days before payment was due. :mad:

I've sent another token today along with another letter asking them to freeze interest and charges.

It really annoys me that they cash the token, which means they have read my letter, then ignored it and added charges anyway. No doubt I will get another letter in a week or so saying they have my letter, after they have aleady put the charges on of course. Why do they wait until after my payment is due to realise I am only making a token payment when I have already written and told them this in advance? Do they think maybe I was kidding and didn't really mean it?!!

Hi Tigsmom :hello:

This is all par for the course in the set up and/or first few weeks of a DMP. You need to expect to get fees and charges left, right and centre. This is the reason why many people say that their debt actually increases in the first month or two, then settles and then starts to go down.

The banks will not consider token payments to be full on time payments and will penalise you for it. I know it's rough but try not to stress too much about it and look forward to a few weeks time when it's all settled down and you can see a decrease in your debt