DMP & Mutual Support Thread - Part 8

stupid-fool

RubyLou89 wrote: »

I'm confused about something.

I'm in the process of setting up a dmp with cccs. I've sent the paperwork back to them and a letter informing our creditors of the dmp. What's the next step? Do cccs speak to creditors about interest rates or do I write to them all again? I'm really confused about what happens next.

Hi RubyLou89

We are about one step ahead on the DMP journey with similar confusion. I'll tell you what I know so far.

We posted our DMP forms last Friday evening (1 week ago) and the creditor forms on the Sunday evening. It all went very quiet which does nothing for your nerves.

Finally yesterday (exactly 1 week after posting the forms) I got a call from CCCS to say that everything was in order and my DMP was set up. This doesn't mean that they have already spoken to my creditors, but they have done everything at the CCCS side including agreeing my payment and setting the first payment date of 1st December.

The next step is that they post letters to each creditor with your SOA, a summary of your debts and an offer of payment. Once this is done (same day for me) they email your agreement through. I received mine last night.

Now I think the wait starts - I need to see when my bank get the letter and cut off my overdraft (some DDs won't transfer until 22nd November) but I have contingency plans in place for this - and I also have to wait for answers from the creditors.

I start paying CCCS (who will in turn pay the creditors) next month regardless of whether we've heard anything back from them.

If I get a call from any creditor I have been given my agreement number and a "creditor line" phone number for them to call, and I've been told not to agree anything about payment amounts, but to refer them to CCCS.

Once I know the state of each creditor regarding interest and penalties, I intend to start working on any that haven't been cooperative with letters requesting better terms. I can do this myself as long as I don't make any repayment agreement without being CCCS involved.

That's as much as I know at the moment, and I hope my debt is going to start coming down and not increase.

I hope this helps your journey.

stupid-fool

Growurown wrote: »

Hi Stupid-fool (although I am sure you are not!). With our creditors the ones who stopped interest did so within the first couple of months. The ones who didn't are still charging us and that is the Halifax. TTFTM has just put up a really good letter to use which I might pinch too cos I am getting fed up with them now.

Thanks for this - did CCCS broker the interest changes or was it because of your own action?

stupid-fool

Time_to_face_the_music wrote: »

If you fail to resolve our complaint within 8 weeks, or if matters are not settled to our satisfaction, we will have no alternative but to escalate our complaint to the Financial Ombudsman Service

Why can we complain to FOS if they refuse to suspend interest charges. Is there some sort of rule / advice / established practice somewhere that I can read up on that means they should do it?

katy_ann

Hey everyone Ive been a bit awol this week, been working 12 hour days at work! Ahh just seen that CCCS are changing their name, do our DMPs stay the same? x

Growurown

stupid-fool wrote: »

Thanks for this - did CCCS broker the interest changes or was it because of your own action?

Neither actually. It just happened and seemed to be standard procedure. I think if after 3 months into your DMP when everything starts to settle down if you are still being charged interest then start negotiations. I'm not sure how much CCCS sorry SC do in this regard. Most people seem to do the negotiating themselves and go to the FOS when creditors don't play ball. It isn't unusual to see your debt rise at the start of a DMP when everything goes ballistic and creditors charge fees etc. It takes a few months for everything to settle down.

Time_to_face_the_music

NaughtySpot wrote: »

TTFTM: Thanks for that, it's a lot stronger than I was writing and all the better for it, I'll get that posted off this weekend.

You are very welcome, this forum is all about help and support. People here have been very good to me and I always try and help others wherever I can :T

When I first came here, someone sent me a link to some debt template letters and I adapted them for my use. I think I sent that one to most of my creditors and it worked for a few, so fingers crossed for yours

debtdawg

I had my first of many letters from creditors today, this was just one from lloyds regarding my cancelling of the direct debit set up to pay my loan. Bank transfer very nearly done so the letter for them can go off (they're my bank).

Time_to_face_the_music

stupid-fool wrote: »

Why can we complain to FOS if they refuse to suspend interest charges. Is there some sort of rule / advice / established practice somewhere that I can read up on that means they should do it?

If your creditors subscribe to the Lending Code, they should deal with financial difficulties sympathetically.

See this link for a list of creditors who do subscribe:
http://www.lendingstandardsboard.org.uk/subscriberlist.php

See this link for the full code:
http://www.lendingstandardsboard.org.uk/docs/lendingcode.pdf

Or this one for a shorter guide to the code:
http://www.lendingstandardsboard.org.uk/docs/Consumer%20guide_singlesfinal.pdf

Basically the code states that

"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." (section 224)

"It is inappropriate for interest and charges to continue to be taken where the result would be that the repayment period for the customer becomes excessive. In forming a judgement on what might be excessive, a subscriber should take into account the type of product and the individual circumstances of the borrower." (225)

"Concessions should not be arbitrarily withdrawn irrespective of a customer’s ability to pay or without any evidence of a change in the customer’s circumstances. Expiry of a repayment arrangement should not automatically lead to the withdrawal of concessions. This does not rule out regular reviews and if a customer’s position has improved then interest and charges can be reintroduced." (226)

"Where possible, subscribers should have consistent policies for customers holding more than one product type in terms of charges and interest concessions." (227)

Obviously there is a lot more but the above are useful to quote in letters to creditors.

Time_to_face_the_music

Growurown wrote: »

CCCS to StepChange - that's so much harder to type. Can we just call it SC?

My OH thinks I am barking!! Yesterday in a quiet lull at work I decided to tidy up the office kitchen, emptied the bin and found a cheese and onion sandwich with only one bite out of it, still in its packet. NO I didn't eat it but took it home for the chickens who enjoyed it very much! I also found two bananas that were going over a bit and took them home too and made banana bread with them. I like to think of it as recycling and saving me money too:D

Re shopping. My grocery bill has really come down since having Aldi to shop in. Can't get everything in there I need but the fruit and veg is really good value and as OH and I are trying to lose some weight it had been a real boon.

You will be skip-diving next :rotfl:

I love Aldi and we have decided that their ultimate bacon makes the best bacon butties ever

debtdawg

We had our first trip to Aldi today - it was worth the drive! We're converts!