Thanks to those who participated in our 'Ask An Expert: Scams' event. Scam expert MSE Katie's video answers are available to watch on the board now.

Moving away from DMP Company

My partner has now told the DMP company (GP) that he no longer wants them to act on his behalf and we intend on doing a DIY DMP. The money he will save himself is £75 per month. We are going to distribute this between his 6 creditors proportionate to the amount owed.

This will save him around 3k and enable him to pay it off much earlier.

We intend writing letters to all 6 creditors explaining what has happened and appeal to their better nature by telling them we are going to up the payment. I'm a bit worried they will unfreeze the interest, is this likely to happen? GP said they may do that, but then they are just trying to frighten us into staying with them. Is it advisable to send them an updated SOA? Or, will a letter just suffice and send SOA if they ask. There are a couple that have defaulted but a couple that haven't frozen interest as yet, after nearly 2 years. Is there any chance they will? I'm just looking for other peoples experiences on this matter, any info gratefully received. My partner was a little reluctant to make the break, should we be worried?
«1

Replies

  • MortMort Forumite
    552 Posts
    Part of the Furniture 500 Posts Photogenic Combo Breaker
    Forumite
    Can't answer your questions, I was with Payplan - one of the non charging DMCs. This reply will get you back on page one :)

    Congratulations on deciding to ditch the fee charging company:j
    Proud to have dealt with my debts, became debt free on 03/11/2011. Repaid £54,723.41 LBM May 2006.
    Debt Free Roll Of Honour #504
    Mortgage Free from October 2019
  • If it were me, I'd contact one of the DMP charities and do my DMp through them x
    Our LBM: Dec 2011. DMP started: Jan 2012. Debt at LBM: £41,568

    Oct 2012 = Current debt: £40,548.93
    Oct 2013 = Current debt: £39.054.70


    DMP Support number 424 - Long haul number 308
  • lala9lala9 Forumite
    684 Posts
    Tenth Anniversary 500 Posts Combo Breaker
    Surely there are some peoples out there who have done this themselves who can give me some advice?
  • DS4215DS4215 Forumite
    1.1K Posts
    Try it and see. Worst case you can go with CCCS or another free DMP provider in a month or two if they give you hassle. Most will probably be happy with extra payments.
  • lala9lala9 Forumite
    684 Posts
    Tenth Anniversary 500 Posts Combo Breaker
    DS4215 wrote: »
    Try it and see. Worst case you can go with CCCS or another free DMP provider in a month or two if they give you hassle. Most will probably be happy with extra payments.

    That's what I thought, it's worth a shot isn't it.
  • IssumaIssuma Forumite
    137 Posts
    Hi lala9
    I manage my own DMP and have been doing for nearly 12 months but I did take advice from CCCS first, I used the template letters from the National Debtline site and just adapted them, all of my creditors apart from one have frozen the interest and a few of our accounts are now with DCA's but they've been fine.

    I've just had my second review with most of them and yes they all wanted me to increase my payments but I just explained to them firmly but politely that as our income has not increased yet everything we purchase has then unfortunately we are not in a position to do so which they have all accepted.

    I think what's important is to keep calm, be polite but firm and don't let anyone talk you into any arrangement that won't be sustainable for you.

    Good luck if you do decide to 'go it alone' I'm always here should you need any advice.
  • lala9lala9 Forumite
    684 Posts
    Tenth Anniversary 500 Posts Combo Breaker
    Issuma wrote: »
    Hi lala9
    I manage my own DMP and have been doing for nearly 12 months but I did take advice from CCCS first, I used the template letters from the National Debtline site and just adapted them, all of my creditors apart from one have frozen the interest and a few of our accounts are now with DCA's but they've been fine.

    I've just had my second review with most of them and yes they all wanted me to increase my payments but I just explained to them firmly but politely that as our income has not increased yet everything we purchase has then unfortunately we are not in a position to do so which they have all accepted.

    I think what's important is to keep calm, be polite but firm and don't let anyone talk you into any arrangement that won't be sustainable for you.

    Good luck if you do decide to 'go it alone' I'm always here should you need any advice.

    Thank you so much Issuma for getting in touch. Nice to hear from someone with first hand experience, and positive experience at that. I've got a template letter I will adapt to our situation, ie explaining that we are moving away from GP and that will use the fee to distribute between the creditors. Do you think they will want to see a revised SOA at this stage. I know GP were going to write to the creditors to let them know they won't be dealing, so worried they will try and take advantage of my partners newly 'alone' situation.
  • IssumaIssuma Forumite
    137 Posts
    My advice for what it's worth...............I would send a revised SAO with your letter as your creditors will probably write back to you and ask for one, I normally try to be one step ahead and provide what I think they might want before they ask for it !!

    If you send this voluntarily then your showing that your being open and honest and if it means that they'll all get a bit more then they shouldn't have anything to complain about :D

    Good luck, remember a lot of going it alone is about holding your nerve and don't let anyone bully you, know your rights and arm yourself with the facts very often these companies rely on you not knowing what you (or they) can and can't do !!
  • Hi,I manage my own DMP and have been for 30 months now. I have used the cashflow process available through nationaldebtline. A specialist talks to you and agrees your input into the SOA has acceptable amounts for each outgoing.
    You are responsible for all letters to creditors etc.
    Doing it this way you get an official ' number' from one of the Debt advise agencies and a agreeded format for the SOA which is accepted by banks and the courts should anything go that far.
    A couple of my creditors wanted to know my reference number otherwise they do not accept the DMP as ' offcial'. And they ask at each review for the same info.
    Advise for managing your own DMP.
    I keep all letters on a memory stick so can adapt and sent a letter at any time from anyplace.
  • lala9lala9 Forumite
    684 Posts
    Tenth Anniversary 500 Posts Combo Breaker
    Thanks Shortie that's helpful. Sounds like you have everything under control. I suppose you have backup doing it this way, still in control yourself but if anything goes wrong you can call upon the expertise of National Debtline, which is peace of mind I guess. I shall have a chat with my partner and see what he wants to do.
This discussion has been closed.
Latest MSE News and Guides

Boost your Nectar points

Get up to £25 this Saturday

MSE News

Preparing for summer

What MoneySaving things can you do now to get ready?

MSE Forum

Hot Diamonds 40% off code

Including already-reduced outlet stock

MSE Deals