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gerturdeanna

If once you've got your DMP set up, 1st payment pending, can creditors still submit court papers for CCJ's?

Former_StepChange_Rory

gerturdeanna wrote: »

If once you've got your DMP set up, 1st payment pending, can creditors still submit court papers for CCJ's?

Hi there,

Welcome to the forum.

Creditors can still take court action while on a debt management plan (DMP) with us, or any other company.

A DMP isn't a legally binding agreement, it's an informal arrangement between you and your creditors. If a creditor decides to obtain a CCJ, you can talk to us we'll offer our help and support on what to do next.

If you've got any other questions or concerns about this then please feel free to contact us and we'll be more than happy to help.

Hope this helps,

Rory

ms04uk

Hi,

Any advice at all I would be greatful of - I'm in a very tricky situation here.

I've just been to my mums house, and I have come away actually a little upset. She is in far more debt than I (or my dad) knew, and their income is not enough to service their debt.

A little about the situation.

They had some circumstances a few years ago which has spiralled them into debt. They borrowed on a credit card, and borrowed peter to pay paul or so to speak. They also "had" to take out shopping credit accounts, to pay for "essentials" such as a washing machine, microwave, clothes, birthday/christmas presents etc.


Mum and dad live in a house, which is owned by my mum (to keep hers and dads debts seperate). Dad went into an IVA for his own debts, and is currently making payments towards that.

Mums approx debts are as follows:

Kays £11,000
Credit cards £5000
2 x other shopping accounts (about £1,000 each).

£18,000 (ish) total under her name.

Mum doesn't work, and so cant get a credit card. dad also cant get a credit card due to his IVA.

Personally, I can "lend" them about £3,000, but I can not borrow money due to to an issue with my own credit about 4 years ago (I am now proud to say I am debt free). his would however only make a difference of about £60/month on servicing their debts.

Their minimum payments that they service their debt is now about £900/month (between the two of them)and income is only about £850. Mum asked me today to borrow £50, which made me wonder what is going on. It turns out, she has just hit the limit on their credit card, so they can no longer borrow from their credit card to pay the debts they owe.

Does anyone have any advice on what options are available - somehow "closing" or "suspending" the accounts so the interest is frozen?

I am just worried about her losing her house for not being able to pay the debts, or for being taken to court and having some court order against the house/being forced to sell it to pay the debt. Certainly I (and I'm trying to pursuade them also) shouldnt care less about the credit history. I just really want them to be in a position where all interest is frozen, so they have half a chance of paying.

At the moment, the minimum payments they are paying is about 98% interest/2% paying off the debts they owe.

I do realise that they bought the goods, and used the money, however the interest they are paying is between 35% and 45% on these accounts, and the debt has amounted from some slight mis-management on their part from an original £1,000, and all of this ridiculous interest.

these companies really have my parents in a position they seemingly cant get out of and it is really upsetting me.

Please help!!!

Happy_Beluga

Hello,

I'm currently in debt of just under £4,000 to a number of different creditors including credit cards, catalogues and banks.

I'm pleased to say I am now able to pay the amount in full but have no idea how to go about it and also how to build my credit rating once the debts are paid.

1. How do I pay the debt? Can I go through a charity and pay it all off as a lump sum? Or is it perhaps better to contact each creditor, or rather debt collector (many of these are defaulted), to pay individually and also see if it's possible to get the final amount reduced as I'll be paying in full?

2. Once the debts are finally paid, how do I know the creditor will mark the debt as paid? Do I need to contact them myself in order to make sure my credit rating is updated? I know because they are defaults I will have to wait 5 years for my credit to be clear - is this true? In 5 years time, will I have trouble getting credit? Or a mortgage for example?

I have read a lot but still can't seem to find the right answers.

Thanks so much for your help.

Sparklestar1127

Hi I could really do with a bit of direction
Here is our position, me and my Hubby owe around 15k on a Santander OD, Santander CC, Santander UPL and Barclays UPL. We started making reduced payments through Step change in March 2011 as my Husband was medically dismissed from his employment. At the time I was on maternity leave (we have 2 young children) so money was really really tight

Anyway, we have continually made our reduced payments to Step change, of around £70-90 pm depending on each review and now my husbands Nan has died My MIL has said that she is prepared to clear at least some of the debt for us with her inheritance.

What I'd really like to know is the difference between partial and Full and final and what impact it will have on our credit files. The last time I spoke with Santander they said to offer 80% but I don't want I offer a lower amount if it's going to hang around for the next 10 years in our reports. I'm a bit clueless to all this having never been in a bad position until 2011. Our very first non payment was feb 2011, none of these debts have been sold on (I still contact the banks for balances ect but all accounts have defaulted) I don't really know the best way to go about this I'm so confused! Should I just pay the full amounts owing and be done with it after 6 years? Help please

Thanks in advance x x

Sparklestar1127

Sorry just to make myself clear the reason I'm so concerned about the quick recovery of our credit files (6 years is okay, 10 is not) is because once I've qualified as an accountant I'd like to get a mortgage. I do not plan on getting myself into any unsecured debt again

CU_5393

Hello; I am looking for some guidance please on communicating with Barclaycard.


I am 18 months into my DMP and Barclaycard are still charging interest, my debt with them (and my wife's credit card also) is decreasing very slowly. We pay £900 per month to our creditors of which Barclaycard get a big chunk. They have declined to freeze the interest at the request of Payplan, I appreciate that they are not obligated to do so under a DMP.


I am going to write to them (repeatedly if necessary) requesting that they freeze and refund the interest on my card, I have a few template letters obtained from this forum (Payplan say they have tried).


Someone on the forum suggested I should write requesting a copy of the original credit agreement under the CCA, I think my card is pre 2007, if even only to show them that I know what I'm doing (even though I don't) as it may make them more responsive to my request to freeze/refund the interest.


What's so frustrating is that we haven't missed a payment to Payplan and have increased our monthly payment 3 times since commencing the DMP. We went down the road of a DMP when other more official options were available and we are committed to paying off our debt in full. I plan to tell them all this in my communication to them.


My questions are:


Should I write an initial letter requesting the freeze the interest first or should I request the original credit agreement first??


Is there any particular person or department at Barclaycard that I should sent the letters too?


Should I send them via recorded delivery or similar??


Apologies if these are basic questions but this is all new to me.


I appreciate any advice/assistance that can be offered to me.


Thank you.

mum2one

CU_5393 wrote: »

Hello; I am looking for some guidance please on communicating with Barclaycard.


I am 18 months into my DMP and Barclaycard are still charging interest, my debt with them (and my wife's credit card also) is decreasing very slowly. We pay £900 per month to our creditors of which Barclaycard get a big chunk. They have declined to freeze the interest at the request of Payplan, I appreciate that they are not obligated to do so under a DMP.


I am going to write to them (repeatedly if necessary) requesting that they freeze and refund the interest on my card, I have a few template letters obtained from this forum (Payplan say they have tried).


Someone on the forum suggested I should write requesting a copy of the original credit agreement under the CCA, I think my card is pre 2007, if even only to show them that I know what I'm doing (even though I don't) as it may make them more responsive to my request to freeze/refund the interest.


What's so frustrating is that we haven't missed a payment to Payplan and have increased our monthly payment 3 times since commencing the DMP. We went down the road of a DMP when other more official options were available and we are committed to paying off our debt in full. I plan to tell them all this in my communication to them.


My questions are:


Should I write an initial letter requesting the freeze the interest first or should I request the original credit agreement first?? I personally would write to them every month, they dont have to freeze iterest most do as a goodwill gesture, sorry I dont know about cca paperwork,


Is there any particular person or department at Barclaycard that I should sent the letters too?
[COLOR="rgb(65, 105, 225)"]Pass on that one sorry, [/COLOR]

Should I send them via recorded delivery or similar??
[COLOR="rgb(65, 105, 225)"]i always send any communication by recorded delievery, - although when I was in discussions a few yrs ago re charges, I sent mine special delievery[/COLOR]


Apologies if these are basic questions but this is all new to me.

[COLOR="rgb(65, 105, 225)"]I always work on the basis that if I dont know, ask, and at the end of the day by asking the questions there may be someone else in the same position who feels embarrased to ask, but can take help from your questions etc[/COLOR]


I appreciate any advice/assistance that can be offered to me.


Thank you.

Sorry I couldn't help on all the points, but def keep trying, it may sound daft I know you said barclaycard get a chunk of your payment, could it be that the payment that recieve is near what you would have been paying had it not been on a dmp. With one of my creditors, (small amount under £150) they get £5 a month, but as this would be the normal min payment, they no longer freezze the interest for me its 97p a month but thats not point, drags it out longer xx

fatbelly

I'm sure stepchange will be along later but here's info on getting a copy of your agreement.

The guidance to Barclaycard on freezing interest is here (para 224, 225, where Barclaycard is the subscriber ):

Lending Code

Former_StepChange_Rory

ms04uk wrote: »

Hi,

Any advice at all I would be greatful of - I'm in a very tricky situation here.

I've just been to my mums house, and I have come away actually a little upset. She is in far more debt than I (or my dad) knew, and their income is not enough to service their debt.

A little about the situation.

They had some circumstances a few years ago which has spiralled them into debt. They borrowed on a credit card, and borrowed peter to pay paul or so to speak. They also "had" to take out shopping credit accounts, to pay for "essentials" such as a washing machine, microwave, clothes, birthday/christmas presents etc.


Mum and dad live in a house, which is owned by my mum (to keep hers and dads debts seperate). Dad went into an IVA for his own debts, and is currently making payments towards that.

Mums approx debts are as follows:

Kays £11,000
Credit cards £5000
2 x other shopping accounts (about £1,000 each).

£18,000 (ish) total under her name.

Mum doesn't work, and so cant get a credit card. dad also cant get a credit card due to his IVA.

Personally, I can "lend" them about £3,000, but I can not borrow money due to to an issue with my own credit about 4 years ago (I am now proud to say I am debt free). his would however only make a difference of about £60/month on servicing their debts.

Their minimum payments that they service their debt is now about £900/month (between the two of them)and income is only about £850. Mum asked me today to borrow £50, which made me wonder what is going on. It turns out, she has just hit the limit on their credit card, so they can no longer borrow from their credit card to pay the debts they owe.

Does anyone have any advice on what options are available - somehow "closing" or "suspending" the accounts so the interest is frozen?

I am just worried about her losing her house for not being able to pay the debts, or for being taken to court and having some court order against the house/being forced to sell it to pay the debt. Certainly I (and I'm trying to pursuade them also) shouldnt care less about the credit history. I just really want them to be in a position where all interest is frozen, so they have half a chance of paying.

At the moment, the minimum payments they are paying is about 98% interest/2% paying off the debts they owe.

I do realise that they bought the goods, and used the money, however the interest they are paying is between 35% and 45% on these accounts, and the debt has amounted from some slight mis-management on their part from an original £1,000, and all of this ridiculous interest.

these companies really have my parents in a position they seemingly cant get out of and it is really upsetting me.

Please help!!!

Hi ms04uk,

Thanks for your questions and welcome to the forum.

I’m sorry to hear about the circumstances you’ve found yourself in and I can understand how important it is to look at ways of getting everything sorted.

No matter how difficult the situation may seem we are here to offer our help and advice. In this case, the best way to answer all of the questions you have and give you more specific advice would be for us to speak to you about the situation so we offer our advice.

You can speak on behalf of your parents with us or alternatively you can use our Debt Remedy tool to create a budget anonymously that we’ll use to work out the best solution to dealing with the debts.

You can speak to us over the phone by visiting our website here. Alternatively if you’d prefer to use Debt Remedy then you can do this here.

Once we have an idea of the whole situation then we’ll use all of your information to work out the best way to deal with the debts. As a charity we offer free, impartial and confidential advice on debts.

I hope this helps, please don’t hesitate to contact us.

Rory