DMP & Mutual Support Thread - Part 8

stupid-fool

Time_to_face_the_music wrote: »

Is your OD included in your DMP?

Something doesn't sound right here, Lloyds are leaving credit open to you and this shouldn't be available. The usual procedure is 1) for the bank to close the OD, i.e. withdraw the facility and pass it to collections, this should freeze the interest or 2) leave the existing overdraft in place but reduce it to the starting amount of the DMP and gradually reduce the facility each month as you pay it off.

Lloyds should know that you are not allowed access to credit while on a DMP, you may find that you have been given incorrect information.

I think you are right. I just called Lloyds TSB back and got through to a slightly less sympathetic lady.

They won't cancel any mandates for their debt and so will try to collect the loans even though I have told them I can't pay more than a token from now until the DMP kicks in late December. I was also told that they are likely to take cash my my current account to repay some of the loans, but don't worry as the amount you owe Lloyds in total will stay the same as it's just money shuffling - a clever trick when the overdraft is at a higher interest rate than the loans.

She wouldn't cancel the unused overdraft on my bills account but I just managed it via internet banking. Ideally I need to reduce the overdraft limit on my current account to the current level as there are no further payments due from it before my DDs are transferred to my safe bank, but I can't see how to do this without visiting a branch. I don't want to do that as a good friend works in the branch and we aren't mentally ready for them to find out our situation just yet.

She did advise differently to yesterday that we should convert our Lloyds Premier account (with the big overdraft) to a control account which is protected from charges for DDs etc that must be returned due to insufficient funds. Yesterday I was told to do this on my bills account, but because the Premier account has lower interest rates I was told not do change that one. Now the advice is different, but it will save me £25 account fee each month which should offset the increased interest rate.

I think my big problem is that my account isn't in arrears and therefore I am only getting through to the "I'm having difficulty paying this month" line and not the collections department. I am now going to minimise my exposure as much as possible and then leave it to StepChange to negotiate. All I was trying to do was eliminate any extra charges for declined DDs etc.

Time_to_face_the_music

redkev76 wrote: »

Before I put the details in my post can I please ask that I dont get any 'told you so' 'you've been stupid' etc replies as I am very very much on the edge and really don't need it at this moment in time.

Thats out the way sorry!

Basically, I have been on a DMP with CCCS for 2 and a half years and due to various problems including my current marriage breakdown with 2 small kids and various other issues I have ended up running up debts with payday companies etc. CCCS agreed to add the rest a couple of weeks ago but somehow I completely forgot about the overdraft when I gave them the additional debts. I called them this morning to add the overdraft and they now say they are cancelling the plan.

Tbh, at this moment in time I would happily walk out of work and in front of the nearest bus but I cant do that to my kids. Yes, I know this is entirely my fault but trust me the debts are not due to a designer wardrobe or living the high life.

Essentially, here is my problem. I have called Payplan this morning and they are going to call me later this week to do a budget etc but should I tell them I was with CCCS? If they dont accept me on to a plan, to put it mildly, I am f@cked. Can anyone help please?

Hi redkev :hello:

I'm so sorry things are not going well at the moment

You won't get "told you so" or "you've been stupid" responses here. This thread is all about support, we are all in the same boat, we help, advise, share our experience and support each other though good times and bad.

I don't have experience of this situation, hopefully someone will be along who does.

Is it definitely a no-go with CCCS? Can you explain that you were stressed and upset when you spoke to them and it's easy to forget something when you are in that state?

If they won't take you back on, my advice would to be honest with Payplan. If it does not work out and they do not accept you, it's not the end, there are other alternatives such as self managing your own DMP. You could check out this website:

http://mymoney.nedcab.org.uk/moneyadvice/dmp.asp

It does everything that CCCS or payplan do but you set up your own agreements with your creditors and make your own payments.

We would love to see you stick around and join in this thread but whatever you decide, good luck and please let us know how you get on

redkev76

Thanks for the reply and the advice. Yes it's a definite no go with CCCS. I have to admit I was quite surpised. Dont get me wrong, Im not saying I havent [EMAIL="f@cked"]f@cked[/EMAIL] up but given the number of people I had to add to it and the situation im going through at the moment its not unreasonable to forget. She said weve listened to the call and you were asked if that was all the debts and you said yes.

I said yes but stupidly at that moment I was so used to thinking about the endless calls from payday loan companies that I never even thought about the bank account tbh. It was only a couple of weeks ago so not like ive run something new up

Time_to_face_the_music

redkev76 wrote: »

Thanks for the reply and the advice. Yes it's a definite no go with CCCS. I have to admit I was quite surpised. Dont get me wrong, Im not saying I havent f@cked up but given the number of people I had to add to it and the situation im going through at the moment its not unreasonable to forget. She said weve listened to the call and you were asked if that was all the debts and you said yes.

I said yes but stupidly at that moment I was so used to thinking about the endless calls from payday loan companies that I never even thought about the bank account tbh. It was only a couple of weeks ago so not like ive run something new up

It's easy to make a mistake when you are stressed and upset, am sure we have all been there.

Give Payplan a go and be upfront with them. Tell them that you have taken on extra debt due to your circumstances and CCCS cannot accept this and are discontinuing your DMP.

If it does not work out, but I can't see any reason why it shouldn't as it is a whole new DMP, have a look at the NED self managed one.

We are currently in a CCCS DMP but are thinking of going self managed due to creditors still charging interest and the way that CCCS calculates payments.

Above all, remember those kids love and need you and this can be sorted.

lizzy23

stupid-fool wrote: »

I think you are right. I just called Lloyds TSB back and got through to a slightly less sympathetic lady.

They won't cancel any mandates for their debt and so will try to collect the loans even though I have told them I can't pay more than a token from now until the DMP kicks in late December. I was also told that they are likely to take cash my my current account to repay some of the loans, but don't worry as the amount you owe Lloyds in total will stay the same as it's just money shuffling - a clever trick when the overdraft is at a higher interest rate than the loans.

She wouldn't cancel the unused overdraft on my bills account but I just managed it via internet banking. Ideally I need to reduce the overdraft limit on my current account to the current level as there are no further payments due from it before my DDs are transferred to my safe bank, but I can't see how to do this without visiting a branch. I don't want to do that as a good friend works in the branch and we aren't mentally ready for them to find out our situation just yet.

She did advise differently to yesterday that we should convert our Lloyds Premier account (with the big overdraft) to a control account which is protected from charges for DDs etc that must be returned due to insufficient funds. Yesterday I was told to do this on my bills account, but because the Premier account has lower interest rates I was told not do change that one. Now the advice is different, but it will save me £25 account fee each month which should offset the increased interest rate.

I think my big problem is that my account isn't in arrears and therefore I am only getting through to the "I'm having difficulty paying this month" line and not the collections department. I am now going to minimise my exposure as much as possible and then leave it to StepChange to negotiate. All I was trying to do was eliminate any extra charges for declined DDs etc.

Hi your OD needs to be included in your DMP, we just transferred all our dd to the new bank and then when everything was in place told CCCS they could contact them, the initial offer was refused because the accounts were still active so i rang the bank and they closed them over the phone, should all be hunky dory now, will see how it settles down

redkev76

Thanks Time, yeah I just keep plodding along for them but feel like a massive failure tbh. Im just really worried if I tell Payplan that they'll just say no. These payday loan people are such hard work to deal with that the only thing keeping the wolves from the door is saying I was with cccs and I fear that if I cant give them a payplan reference instead that they wont deal with a direct dmp

stupid-fool

lizzy23 wrote: »

Hi your OD needs to be included in your DMP, we just transferred all our dd to the new bank and then when everything was in place told CCCS they could contact them, the initial offer was refused because the accounts were still active so i rang the bank and they closed them over the phone, should all be hunky dory now, will see how it settles down

Thanks, the OD has been included in the DMP - its about £50 higher than when I first called CCCS to get started, but the other debts with Lloyds have reduced by more than that due to making some payments in November while waiting for the DMP to be fully setup. This month I could probably get the OD down to the figure given to CCCS but my worry is that Lloyds will only grab that once the loan payments stop getting paid in December.

I could call and ask them to reduce the OD facility but if they then apply my bank charges at the end of the month I guess I will slip into penalty interest for exceeding my limit.

My final DDs transfer to my safe account on 22nd November so I will ask Lloyds to close all of my accounts at that point.

Time_to_face_the_music

Lloyds TSB charges in the first month of our DMP actually took us over the OD limit, so they increased the OD limit to accommodate the charges. This is about the only helpful thing they have ever done for us in the last 9 months.

Can I ask what you mean about closing your Lloyds accounts? If you still owe them money, will they allow you to close the account? Don't pay for any premium accounts, the difference in the interest does not pay for the cost of the account, no matter what they try and convince you.

Just one thing about CCCS or StepChange, (can't get used to that yet), they do not negotiate with creditors on your behalf with regards to interest. When they make their offer to creditors, they say that they ask them to freeze interest but that is it. Any negotiation on interest after that has to be done by you ... with the FOS's help if it gets to that stage.

CCCS are great at the start up and at being the middle man and handing over the money but that's about it. The best advice I can offer anyone is never to forget it's your debt and try to find a way to get it as low as possible. We want to pay back every penny we have ever borrowed but think the banks have had their pound of flesh too many times already.

stupid-fool

Time_to_face_the_music wrote: »

Lloyds TSB charges in the first month of our DMP actually took us over the OD limit, so they increased the OD limit to accommodate the charges. This is about the only helpful thing they have ever done for us in the last 9 months.

Well I guess that as mine has been converted to a control account which will not allow us to go past the overdraft limit its the only way they can apply the charges.

Should I be expecting lots of fees initially from the creditors - at the moment we haven't YET gone into arrears, but that will start from the next round of payment due dates?

Time_to_face_the_music wrote: »

Can I ask what you mean about closing your Lloyds accounts? If you still owe them money, will they allow you to close the account? Don't pay for any premium accounts, the difference in the interest does not pay for the cost of the account, no matter what they try and convince you.

We have a number of accounts with them - 2 cheque accounts and a number of empty savings accounts. I will ask for all except the main account still in overdraft to be closed.

The main account was one of the Premier Accounts but that was converted to a Classic with Control Account today so the £25 per month fee has gone, but so has the £500 interest free O/D and lower interest rates - but I think I'll still be better off.

Time_to_face_the_music wrote: »

Just one thing about CCCS or StepChange, (can't get used to that yet), they do not negotiate with creditors on your behalf with regards to interest. When they make their offer to creditors, they say that they ask them to freeze interest but that is it. Any negotiation on interest after that has to be done by you ... with the FOS's help if it gets to that stage.

CCCS are great at the start up and at being the middle man and handing over the money but that's about it. The best advice I can offer anyone is never to forget it's your debt and try to find a way to get it as low as possible. We want to pay back every penny we have ever borrowed but think the banks have had their pound of flesh too many times already.

Yes thanks, I've started to realise that now. I will see what the initial responses are and then start to work on those who haven't immediately dropped their costs.

Have I missed a "starting out on a DMP" guide somewhere as there seems to be quite a lot of info that I'm picking up as I go along?

Growurown

redkev76 wrote: »

Thanks Time, yeah I just keep plodding along for them but feel like a massive failure tbh. Im just really worried if I tell Payplan that they'll just say no. These payday loan people are such hard work to deal with that the only thing keeping the wolves from the door is saying I was with cccs and I fear that if I cant give them a payplan reference instead that they wont deal with a direct dmp

Hi redkev - I think we have all felt like this, you're not alone. I think payday loan companies are a bunch of sharks. Some people will say they aren't (we should use them responsibly blah, blah, blah) but I think they take advantage of people's desperation. I hope payplan works out for you but if not then CAB have debt advisers who can set up a plan for you as well. Good luck:)