My DMP log

djrenegade_2

Just thought I would have a topic on here to log my progress in setting up my DMP but also to help/guide anyone else who wants to set up a DMP for themselves, they can see how I am getting on with mine.

14th December 2012 - Signed up to the NEDCAB online service - http://mymoney.nedcab.org.uk/moneyadvice/
No priority debts to input but entered expenditure anyway
Listed all non-priority debts with account numbers and creditors addresses
Sent initial letters to all creditors requesting interest/charges to be frozen and asking for up to date account balances.
letter:

We are writing to you regarding the outstanding account - agreement number xxxxxxxxxx
Unfortunately we are suffering financial difficulties due to over commitment and we are finding it very difficult to meet our contractual payments.
We have taken advice from North East Derbyshire Citizens Advice Bureau.
We would be grateful if you would help us make a full assessment of the current financial situation by providing us with up to date account details. It would also be appreciated if interest/charges were stopped and any recovery action suspended, pending satisfactory payment arrangements.
When we have received all up-to-date balances, we will draft a financial statement / offer and forward to you for your consideration and acceptance with an early response being appreciated.
Your assistance and co-operation would be greatly appreciated.

21st December 2012 - Have had confirmation that Poundstopocket will postpone first payment that was due 20th December back a month until DMP set up, Wonga will also freeze further interest and charges for 38 days until DMP is set up, Amigo have confirmed balance but will not freeze interest, no reply back from others yet.
Recorded all account balances.
Argos - £382.48
K&Co - £883.52
Very - £588.99
Tesco CC - £1683.11
Amigo - £2309.04
Wonga - £757.60
PaydayUK - £500
PoundsToPocket - £1433.15
Completed my personal budget sheet.
Combined Household Income - £1450
Total Outgoings - £1375 (Leaving £75)

The online tool has worked out my Offers of repayment:
Argos - £3.36
K&Co - £7.76
Very - £5.17
Tesco CC - £14.79
Amigo - £20.28
Wonga - £6.66
PaydayUK - £4.39
PoundsToPocket - £12.59
(totalling £75)

Printed 8 copies of my financial statement and generated letters to send with.
Letter:
With the assistance of North East Derbyshire CAB, we now enclose a financial statement for ourselves giving full details of our situation.
We offer to make payments of £x.xx each month based on an equitable distribution of available income. Whilst we appreciate that this offer is small, we feel it is the only realistic one in the circumstances.
We would also ask that you agree to suspend interest on this account to enable us to make some inroad into the debt.
In order for us to make payments, please could you forward us a payment book, giro credit slips, or standing order mandate details if applicable?
Your patience and co-operation in this matter is greatly appreciated and we look forward to your acceptance of this proposal.
We will contact you immediately if there is any change in our circumstances.

Next step? Post, sit back and wait...
Updates to follow when responses have been received.

fermi

Thanks for that account.

djrenegade_2

Ok, so I have just had my first response from Payday UK (I emailed my financial statement and offer letter to the payday lenders), they are not willing to accept my offer and want a minimum of £20, insisting I pay my first £20 immediately to hold my account.

I didn't read up on creditors not accepting offers, so what happens now?

XXSCOTSLASSXX

Amigo - £2309.04

Amigo used to be FLM is that correct... if so they will go after your guarantor and take full payments via them/trash their credit rating etc I would prob advise if possible keep up with the payments on this and/or clear asap....

XXSCOTSLASSXX

djrenegade wrote: »

Ok, so I have just had my first response from Payday UK (I emailed my financial statement and offer letter to the payday lenders), they are not willing to accept my offer and want a minimum of £20, insisting I pay my first £20 immediately to hold my account.

I didn't read up on creditors not accepting offers, so what happens now?

Unfortunately they are under no obligation to accept any payment offer... can either stand ur ground or agree to the reduced payment they are offering

djrenegade_2

XXSCOTSLASSXX wrote: »

Amigo - £2309.04

Amigo used to be FLM is that correct... if so they will go after your guarantor and take full payments via them/trash their credit rating etc I would prob advise if possible keep up with the payments on this and/or clear asap....

The guarantor is my mum, who I dont really want involved in this, however my monthly payments are £169.99, I have just paid Decembers payment so would it be worth waiting for their response and then asking for assurance that they would not ask my guarantor for money as long as I keep up the payments that I have offered? I have a month to work it out, and if they say that they cant give me that assurance then I can just tell them I can either increase my payments for their assurance or just (last resort) pay the usual payments.

Going back to PDUK, I will try my luck and reply saying that as per my financial statement, I am not in a position to pay any more and therefore my recommended offer is all I can afford at present, which can be review in 4 months, will see what they say.

XXSCOTSLASSXX

As a guarantor if you fail to make any payment they will take the funds from your mums bank and continue to do so... they will not enter into any payment plan with you as they have a guarantor who has accepted that they will make the payments if you fail do do so.... unfortunately if you are choosing to miss a payment on this one your mum is going to be involved and liable for the debt

fermi

PDUK are members or the CFA and are bound to comply with their code of practice.

See: http://www.cfa-uk.co.uk/documents/PDandSTL_Addendum_Lender.pdf

Section 6.

Help for customers in financial difficulty

If the customer is in financial difficulty, lenders will:

> Deal with the customer sympathetically and positively and do what they can to help the customer manage what they owe. This may include making new arrangements about how the customer will pay off the debt. In doing so, the lender will consider other debts owed.

> Freeze interest and charges if the customer makes repayments under a reasonable repayment plan or after a maximum of 60 days of non-payment.

> Not contact the customer or take any action to recover the money owed for 30 days, if the customer is making a genuine effort to agree a repayment plan using either a debt-counselling organisation or a ‘self-help’ approach (for example, the customer is suggesting a repayment plan). If the customer or their adviser provide the lender with clear evidence that real progress is being made in reaching a repayment plan, but work has not yet concluded, the lender will extend this ‘breathing space’ for an additional 30 days.

> Tell the customer about free and independent debt-counselling organisations. These include: Citizens Advice, the Consumer Credit Counselling Service, National Debtline or the Money Advice Service.

> Not allow you to borrow further from the lender until all outstanding loans with the lender have been repaid.

> Deal with people whom the customer has asked to act on their behalf, with the customer’s authority, unless those people behave unreasonably.

djrenegade_2

Thanks fermi, they have already gone against that then by a) refusing the offer of the only amount I could manage and b) phoning me 7 times so far today from the collections department. (All missed calls, just google'd the number).

fermi

Then I would tell them you are aware of those requirements, and that you will be complaining to the OFT and raising a complaint with the FOS if that is their final respsonse.

djrenegade_2

fermi wrote: »

Then I would tell them you are aware of those requirements, and that you will be complaining to the OFT and raising a complaint with the FOS if that is their final respsonse.

They have just come back with this:
Thank you for your offer of payment. Unfortunately we are unable to accept an offer of payment of this level.
After speaking with my manager we are able to accept the below amount for a 3 month period.
The account would then need to be reviewed and payments increased.

The minimum we would be able to accept would be £15.00. The first payment would need to be made immediately to hold your account.

Until a payment has been received your account is not on hold and payment can be tried at any time.


Would this be the time to reply and say "before i agree to your counter-offer, please inform your manager that I am aware that PDUK is a member of the CFA and are therefore bound to comply with their code of practice, which states in Section 6 that if a customer is in financial difficulty, the lender will deal with the customer sympathetically and positively and do what they can to help the customer manage what they owe. This may include making new arrangements about how the customer will pay off the debt. In doing so, the lender will consider other debts owed."

Or shall I just say OK £15 it is...