DMP & Mutual Support Thread - Part 8

sickasachip13

Reducemydebt wrote: »

Yeah, when filling out the debt in their forms it automatically calculated the monthly payment for the credit cards which, in some cases, was significantly more than what I actually pay now, or not sometimes, as a minimum. I'm sure it'll work out as it is early days just a bit panicky about having enough money left over blah blah blah. I'm reviewing this now to make sure I included everything in the list.

Cheers.

Yep, that's what I thought. Don't worry about it at all

Growurown

BevieB wrote: »

Hi, We also have 2 ccs with the Halifax and started our DMP in September. Hate to say it but out of our 10 creditors the Halifax have been the worst to deal with.

They're not called the Hellifax for nothing :rotfl:

sickasachip13

It just goes to show there's no logic to it all. Halifax have been absolutely great with us!

Time_to_face_the_music

sickasachip13 wrote: »

It just goes to show there's no logic to it all. Halifax have been absolutely great with us!

No logic at all. Yesterday we had our first default notice from NatWest saying they were ok with the CCCS offer for the DMP. We also had a letter from CCCS saying that NatWest had refused their offer on the grounds they wanted a higher payment.

Have they accepted or haven't they? I don't care, it's all they are getting!

Bosniavet96

toots1607 wrote: »

Hi all ,

I am having a thought and getting fed up about my mess of my finance but I thinking out of the box and not in a straight way wouldnt it be nice if the credit card or loan people would say as you are in financial trouble we will reduce you debt by all in the interest charged since a certain date charge you a yearly fee of £150.00 per year for admin charges and this will reduced what you owe. They still get there money, we still pay off the debt plus a admin fee. The debt get reduced by a large amout and now I have come out of my dream landed back on earth with a great thud!!!!! Oh well school run calling. Thanks for my dreams.:o:o:o;););)

Hmmm, nice idea, although the £150pa admin fee is a bit generous to say the least in my opinion. I am wondering about checking the exact details of the Greek (& other) bailout to see if any of my creditors have stopped all interest & accepted a large decrease in the capital amount outstanding. If so, I wonder if they will accept the same from me - ie write off up to 70% of my debt...............
Any thoughts folks, a pipe dream, but a nice one.....

debtfreebie

Hi
Just thought i would share this with you
I am into month 2 of my DMP and getting one or two calls from the lovely call centres regarding my accounts.

MBNA rang last night and I told them what I had done and gave them my CCCS number and advised they were helping me get things sorted equally for everyone.

I then asked them to remove my home number from their database and only contact me by letter or via CCCS.
I was told that they could not do this as they may need to contact me in an emergency!
I responded that if MBNA did have an emergency I doubt if they would need me to help them.

toots1607

Bosniavet96 wrote: »

Hmmm, nice idea, although the £150pa admin fee is a bit generous to say the least in my opinion. I am wondering about checking the exact details of the Greek (& other) bailout to see if any of my creditors have stopped all interest & accepted a large decrease in the capital amount outstanding. If so, I wonder if they will accept the same from me - ie write off up to 70% of my debt...............
Any thoughts folks, a pipe dream, but a nice one.....

I like your idea I think we should write to these people quoting the Greek bailout and see what they say, nice idea and good pipe dream and your right about the £150.00 drop to £75.00 .

shortie1205

AmyV wrote: »

Hi all

I can see there are quite a lot of you talking about interest on your credit cards increasing. For those of you where interest hasn't increased yet (ie you are fighting to get it frozen), then I don't think it will be useful.

However for those who, like us, have had their rates increased when we increased DMP payments (so they obviously thought we had more spare cash to throw at them!), the following article could be of use.
http://www.moneysavingexpert.com/reclaim/credit-card-interest-rate-increases

In Step 3 it states " in late 2008, the Government held a credit card summit, and warned lenders it'd ask for an OFT investigation if it didn't commit to treating customers fairly. On the back of this a set of principles came into force on 1 Jan 2009, which were slightly amended at the start of 2011 by further government input."

There is an explanation of the code. The bit which might be relevant to some of you is :-
No increases for those with debt problems

"We will not increase interest rates in the following circumstances. Where a customer has failed to make the minimum contractual payment requested on the last two or more consecutive monthly statements; or Where an agreed repayment plan is in place in respect of the account; or Where we have been formally notified by a not-for-profit debt advice agency that the customer is in serious discussion with it."

Translation: They won't increase your rate if you've fallen behind on payments by two months or more, or those who have sought help from a debt advice agency. So the crucial message is...

If you're in trouble, seek help from a non-profit debt counselling agency immediately to prevent the rate rising.

Now, we quoted this to one of our lovely creditors who increased interest when we increased our payment at the annual DMP review, and even though they signed up to the code of practice, they refused to adhere to it.

It is only code of practice and not law, however, what this has enable us to do is to go to the Financial Ombudsman, quoting this code of practice, to see if they think its unfair to increase interest when on a DMP. Its early days in the process, but I'll let you know how we get on.

Hi

I have been through the FOS and ' lost' .

What you have to be aware of is the different situations that some of these quotes/documents are referring to.

Not allowed to increase interest rates will probably refer to the agreed rate of interest in the contract you signed for the credit , not the reduced interest rate that the lender is currently charging you. Which according to the FSA they are nor obliged to offer zero interest just as long as your agreed payment reduces your debt then they are within there rights to charge what they like in interest.

Good luck though in your case.

scared-sick

Reducemydebt wrote: »

Yeah, when filling out the debt in their forms it automatically calculated the monthly payment for the credit cards which, in some cases, was significantly more than what I actually pay now, or not sometimes, as a minimum. I'm sure it'll work out as it is early days just a bit panicky about having enough money left over blah blah blah. I'm reviewing this now to make sure I included everything in the list.

Cheers.

It did the same with me too!!

I dont understand it either!

It 'calculated' that I pay £330 pm on a credit card that I actually only paid £130pm on. The minimum payment is £120pm. CCCS are now offering them £116pm.

CCCS told me that they work out what to pay the creditors based on what the contractual payment was not was the debt amount outstanding was, so there seems to be some conflicting information about this.

I am now worried that after 1 or 2 payments from cccs, this creditor will be getting more than the minimum payment and more than they were actually getting from me. Therefore they will never freeze or reduce the interest.

Reducemydebt

scared-sick wrote: »

It did the same with me too!!

I dont understand it either!

It 'calculated' that I pay £330 pm on a credit card that I actually only paid £130pm on. The minimum payment is £120pm. CCCS are now offering them £116pm.

CCCS told me that they work out what to pay the creditors based on what the contractual payment was not was the debt amount outstanding was, so there seems to be some conflicting information about this.

I am now worried that after 1 or 2 payments from cccs, this creditor will be getting more than the minimum payment and more than they were actually getting from me. Therefore they will never freeze or reduce the interest.

Glad it isn't just me confused by this, to be fair I've not had chance to speak to CCCS about this yet too understand it more. All I know at the minute is from the data entered into the form the total amount payable to CCCS was more than I could afford to pay my creditors without CCCS which sort of defeats the object somewhat for me.

I guess we need someone to clarify on here if anyone who's been through this is around?