Sainsburys bank turned down my dmp proposal..help!

Anxiousmummy

Hi
I'm new here.
I am just starting a dmp with cccs. My creditors were all contacted last week and lovely mbna have agreed to my dmp.
However, I have received a letter from cccs this morning saying sainsburys (credit card) have refused due to my recent spending!
Incidentally the card as been max for ages so no new spending.
I'm also confused as my offer of £47 only falls slightly short of the £66 of the min payment. (I have 9 creditors)
So in the letter it says not to worry (!) obviously I am. It also says they mell register a default and sell my debt.
Anyone experienced this and can offer words of wisdom?
I'm waiting to hear from the remaining 7 creditors (natwest loan/cc/od, barclaycard x 2, next & Santander) and praying they accept my offer.
Thanks in advance.

Daisypop

Hi anxiousmummy

Wouldnt worry about it they will accept it at some point. Some companies like to have no spending on the account for 3 months before they accept the repayment proposal, this happened to me, sit tight, keep paying and if they contact you ask to be only contacted in writing. Then let CCCS know, it will settle down! Once the 3 months has passed they will accept.

Also its better if they default the account straight away as it stays on your credit file for 6 years so the sooner the better and if they pass the debt on to a debt collections agency again, this is better as more than likely interest will be stopped and they will accept it.

Its a bit scary at first but im 3 months in now and feel better than i have for a long time knowing i am paying every month and i can afford to have a life!

Please dont worry!

HappyMJ

They don't tend to agree with proposals for DMP's until a default has been registered. They won't let you get away with no damage to your credit history so wait until the default and sale of the debt and then they will agree with the proposal.

The advice is if paying the debt is beyond you then stop paying anything at all for a few months (strictly saving the money for emergencies instead) wait for the defaults and then propose the payments that you have.

Anxiousmummy

Thankyou both for your replies, you have made me feel so much better.
Cccs are taking a payment each mth starting 10-8-12 so I've been advised to make a token payment of £1 to each creditor as my bills are due before the first payment to cccs.
It does feel abit scary at the mo as I've kept up to date with payments etc not missed anything in 15 yrs but things have got on top of me recently and I'm also pregnant with my 3rd child so really need to get settled on the dmp.

Daisypop

Honestly, it will settle down, I was so stressed out about money before starting the DMP and now ive got my life back! Only had bother with one creditor who obviously havent got a clue what they are doing but i answer their phone calls, explain situation and thats it! Have had no nasty calls, all been really good and never heard back from most anyway they just accepetd.

Like i say, if anyone contacts you, just state your CCCS ref no and tell them politely but firmly you will only deal with written correspendence.

They cant have what you dont have and your health is more important, you will feel so much better once your payment start.

Anxiousmummy

That's what I'm trying to get my head around....they can't have what I haven't got. I honestly want to pay it all back, not trying to get out of it but currently paying way more than half my wage on debts
It's lovely to hear of others who dmp is working for. I am looking forward to being in your position daisypop.

HappyMJ

Anxiousmummy wrote: »

That's what I'm trying to get my head around....they can't have what I haven't got. I honestly want to pay it all back, not trying to get out of it but currently paying way more than half my wage on debts
It's lovely to hear of others who dmp is working for. I am looking forward to being in your position daisypop.

Do you have an emergency fund? You need some cash for an emergency as you will lose all access to credit. You might want to ask CCCS if they can start it in September instead and you keep the August payment for emergencies (paying £1 to the creditors). You can also self manage a DMP if you don't agree with CCCS.

Anxiousmummy

Happymj I do have a very small emergency fund.
To be honest I've not been using my credit apart from overdraft for some time. The overdraft became the straw that broke the camels back so to speak as it became impossible to budget. I now have a safe account so for the first time in years my wage has not been eaten by an od!
My new payments will be £400 less than before meaning as long as I remain in budget will be ok.
Thankyou for the suggestion.

eyeopener2

HappyMJ wrote: »

They don't tend to agree with proposals for DMP's until a default has been registered. They won't let you get away with no damage to your credit history so wait until the default and sale of the debt and then they will agree with the proposal.

The advice is if paying the debt is beyond you then stop paying anything at all for a few months (strictly saving the money for emergencies instead) wait for the defaults and then propose the payments that you have.

I wouldn't just not pay, that is very dangerous advice. Instead make token £1 payments, that way you are showing a willingness to pay (if you wish to go down this route).

To be honest it doesn't matter if Sainsburys accept your DMP or not, you just pay them anyway. They are just being bully boys so ignore them and let CCCS pay them the amount agreed on your repayment plan. If it ever got as far as court (unlikely) you would show the judge your willingness to pay, and Sainsburys would look like fools.

E2

penpar

HappyMJ wrote: »

They don't tend to agree with proposals for DMP's until a default has been registered. They won't let you get away with no damage to your credit history so wait until the default and sale of the debt and then they will agree with the proposal.

The advice is if paying the debt is beyond you then stop paying anything at all for a few months (strictly saving the money for emergencies instead) wait for the defaults and then propose the payments that you have.

I work for a debt management company and you absolutely do not have to have a default registered in order for a DMP to be accepted. A lot of the time a DMP can prevent a default as reduced payments tend to get registered as AP (Agreed Payments) on your credit file. Defaults will depend on the reduced amount being paid and the total amount of the debt. Also each creditor is different in how they register your credit history with them.
It's worrying that you've been advised to stop paying your creditors to take your credit to default :mad:

startingtogetoutofdebt

I'm in the same position - MBNA were fantastic as soon as they got the offer from CSSC they agreed to freeze all interest and charges and agreed to the offer. Sainsburys on the other hand have charged me for not making minimum payment and added interest onto my account.
Have to say M & S were great as well - although they did ring once I'd explained the situation I was in they said they would accept the offer that had been made.
Mint have also added charges to my account although I agree with earlier posts that I think this is just so that they can get a default to show on your credit rating.
The advice I got was to make a small payment until each creditor received their first DMP payment and remain polite if they rang but refuse to pay anymore if asked.

Stick with it