DMP & Mutual Support Thread - Part 9

debtfree77

LocalAngel wrote: »

Hi Debtfree77,

I hope the opening of your new account goes smoothly. I still haven't heard anything from them so I will pop into the branch tomorrow and hassle them. My employer needs the details by Monday for pay day on 26th April.

On the positive side I've managed to call Nationwide and get my account unfrozen without telling them about the dmp. I haven't received any statements or been able to access the account online so I had no idea how much money was in it but it was actually in credit so I was able to clear my loan arrears. If I don't get the Coop account details in time and have to stick with Nationwide for another month I will just about manage.

I just want to say that I have been terrible at sticking my head in the sand for over a year now, not looking at statements, opening letters or answering calls from unknown numbers. Now I am finally facing up to my debts, I find that my situation isn't quite as bad as I thought (though it's pretty terrible - I owe around 20k including a year's council tax) but everyone I've spoken to at the banks and the council has been very helpful. With the help from Step change I feel that the repayments are manageable and I will get out of debt eventually

Good luck everyone!

I just checked with my employer and i have until the 17th of April to give them the new details as thats the cut off. I sure hope they sort the account out asap otherwise it could mess up my plans.

Just had a look around at other basic bank accounts and Natwest have smiliar account that can be applied for online and can be up and running within 10 minutes (As long as you have the correct ID) so not sure why Co-op take a week.

debtfree77

Wondering if i should just setup a Natwest account and cancel the Co-op one, just so i can get the ball rolling.

Mossop01

debtfree77 wrote: »

Wondering if i should just setup a Natwest account and cancel the Co-op one, just so i can get the ball rolling.

It took a few days to set up my cashminder co op account but i went in to see them and they gave me my sort codes and account numbers so i could set my wages up and transfer direct debits, then it took 5 days to get my cards through post until then i took all the money i could get out of my old bank to live off.
Hope u get it sorted soon x

Mossop01

bones65 wrote: »

I have been on a DMP for two years now and although my debts are slowly going down that is just it its slowly apprently my DFD is somewhere in 2022.
I have four creditors 3 are with companies who have bought my debt one with the original creditor.
I am currently 22k in debt having paid off nearly 2k since taking out the plan.
I have offered all four creditors a full and final settlement two responded negatively and two never replied. I have since made an improved offer to both these companies and await their response. My question is can i pay these debts off any quicker as i have noticed with some on this forum have paid nearly all their debts off in the time i have been on the plan, am i doing something wrong what advise can people give me

regards

andy

Hiya i suppose it depends on disposable income available for debts as to how quick u pay it off. We are in this for the long haul, 7 yrs, which seems like a long time but for us life is so much better now, we could pay more into our dmp but it would be a real struggle.
Good luck and keep plodding on

Mossop01

LocalAngel wrote: »

Hi everyone. Thank you for all the encouragement :A. I've managed to call some of my creditors today. Barclays and the council tax people were very helpful and I actually owe them both a bit less than I thought so that's good news. The one I haven't dealt with yet is Nationwide. I owe them loads in overdraft and a loan and they have frozen my current account. I know I have to speak to them but will save it for tomorrow. I also called the Cooperative bank but they haven't received confirmation of my ID and address which I took into a branch along with my application for the new current account, thinking it would speed things up . Someone from the branch was supposed to call me back to let me know what's happening but nothing so far.

A quick question - how do I go about getting interest and charges frozen? Do I ask each creditor or does Step Change do it, or do I just hope the creditors will do it of their own accord?

Good luck everyone!

Hiya within my SC pack i got a template letter to send to creditors which i sent along with token payment until dmp was up and running

Time_to_face_the_music

fairyboots wrote: »

Hi I'm so sorry it's the same person I forgot my password and then work blocked my web access so had to start afresh. Sorry for any confusion.

I am seriously thinking about stopping the dmp with Churchwood and agreeing my own/ creditors own payment plans. I think it will be best for me long run to show I am making effort not just to plod along with the dmp but to show I want to get myself out of this little mess.

I know the defaults will stay but at least I can now try eh.

Do I cancel DD with Churchwood and then call each creditor to tell them what the dealio is and then arrange a plan?

Can anyone advise me please. Also. I am aware that on the creditor pay back plan the interest will start again or will they keep the %0? Or shoot it straight back up?

Fb x

We were in a free DMP with StepChange but decided to manage it ourselves about 4 months ago. Not one creditor has restarted interest, to be honest we haven't even heard from most of them, they seem happy as long as they get the money and don't care who they get it from!

I got lots of advice from 2 websites:

http://mymoney.nedcab.org.uk/moneyadvice/dmp.asp

and

https://www.mymoneysteps.org/

Both give you absolutely everything you need for a self managed DMP.

I think you need to speak to Churchwood and check that you do not have to give some sort of notice. I would hate for you to cancel your DD and be hit with some sort of penalty clause. They have had enough of your money already so don't give them any more than your have to.

The 2 websites I have mentioned will help you work out your pro rata payments but it's basically about being fair in your payments and making sure each creditor gets their fair share.

If you feel nervous about going on your own, you could always contact StepChange, Payplan or Christians Against Poverty. They will all do for you exactly what Churchwood has but completely free of charge.

If you need any advice, help or support, please stick around. There is always someone here with good experience who will help out.

TTFTM x

debtfree77

Mossop01 wrote: »

It took a few days to set up my cashminder co op account but i went in to see them and they gave me my sort codes and account numbers so i could set my wages up and transfer direct debits, then it took 5 days to get my cards through post until then i took all the money i could get out of my old bank to live off.
Hope u get it sorted soon x

I will give them a shout tomorrow to see if i can get that info. I can start transferring DD and stuff then.

Julie67

Morning all,

Hope it's going well. Can someone post me the link for the letter asking creditors to freeze interest, can't seem to find it.
I have done well getting it frozen with everyone apart from Asda CC who reduced it to 0.245 which I though ok, that's not too bad.
When the statement came yesterday I realised that I'm still being charged 4.87 a month and only paying them 5.00 a month, so I want to try and get rid it of it all together.:eek:
In further news I sent a letter to HSBC asking them to please sort out things and start accepting my payment to my managed loan, after loads of hassle saying the account details were wrong, they've now decided that SC haven't offered enough as they are the biggest creditor and so should have more of the pot.
SC tell me it doesn't work like that and payments are based around the amount of your original. Monthly repayment.
As I also have a little OD with them due to them trying to take a payment when I first got into difficulties I have asked if they would consider getting rid of this £213 then I double the payments to them and throw everything at the managed loan. I know it's a bit cheeky but worth a try, have also mentioned complaining to the Financial Ombudsman if they don't sort it out.
Anyway we shall see, they have been a nightmare to deal with but I think I'm getting better at doing this now.
Will report back when they respond, if they respond:D

Bettingmad

Julie67 wrote: »

Morning all,

Hope it's going well. Can someone post me the link for the letter asking creditors to freeze interest, can't seem to find it.
I have done well getting it frozen with everyone apart from Asda CC who reduced it to 0.245 which I though ok, that's not too bad.
When the statement came yesterday I realised that I'm still being charged 4.87 a month and only paying them 5.00 a month, so I want to try and get rid it of it all together.:eek:
In further news I sent a letter to HSBC asking them to please sort out things and start accepting my payment to my managed loan, after loads of hassle saying the account details were wrong, they've now decided that SC haven't offered enough as they are the biggest creditor and so should have more of the pot.
SC tell me it doesn't work like that and payments are based around the amount of your original. Monthly repayment.
As I also have a little OD with them due to them trying to take a payment when I first got into difficulties I have asked if they would consider getting rid of this £213 then I double the payments to them and throw everything at the managed loan. I know it's a bit cheeky but worth a try, have also mentioned complaining to the Financial Ombudsman if they don't sort it out.
Anyway we shall see, they have been a nightmare to deal with but I think I'm getting better at doing this now.
Will report back when they respond, if they respond:D

I placed this on a different thread, edit to suit your circumstances.

Modify this for your own purposes

COMPLAINT

Dear Sir or Madam


Account No/Reference No: XXXXXXXX

I am in receipt of your letter dated xx/xxxx/xxxx concerning the above account. I am sorry that you feel unable to suspend interest and charges, especially as the majority of my other creditors have agreed to temporarily suspend all interest and charges.

They have accepted that to continue to charge interest would not assist me in my present financial situation, and would only serve to increase my total debt.

As you are aware, I have already paid considerable sums in interest to this account and should interest and charges continue, the monthly instalments currently being paid will not even cover that interest and the co-operation of my other creditors who have agreed to freeze interest already would also be put at risk.

I would therefore be grateful if you would reconsider your decision not to freeze interest and charges, which would allow the monthly payments I do make to actually reduce the balance outstanding andnot increase it.

I would like to draw your attention to The Lending Code towhich you are a subscriber

Interest and chargesconcessions

224. Subscribers should consider reducing or stopping interest and charges when a customer evidences that they are infinancial difficulties. Such reduction/suspension decision should be based uponan income and expenditure statement indicating that they are unable to make repayments sufficient to meet contractual terms. Where a customer is able to make only token payments, their debt should not increase as a result of interest and charges levied. The assessment should reflect the customer’s lack of ability to pay rather than the stage an accoun thas reached in the arrears cycle or whether they are using free sources of debt advice. Where a firm declines to allow concessions, they should be prepared to explain why to the customer or their adviser if requested to do so.

And

225. It is inappropriate for interest and charges to continue to be taken where the result would be that the repayment period for the customer becomes excessive. In forming a judgement on what might be excessive, a subscriber should take into account the type of product and the individual circumstances of the borrower.

~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~
Could I again ask how the continued adding of interest is helping me to overcome my financial difficulties

I ask that all interest and charges incurred since I informed you of my financial distress on DD/MM/YYYY are refunded, a total of £****.

I am totally committed to paying this debt and it remains clear that it is beneficial for both parties to continue on the plan which was agreed in an effort to clear this debt.

I trust and hope I have no reason to take this matter further and thank you for personally for taking the time to look at my situation as my levels of anxiety are beginning to cause me health issues with regards to my debt problems.

Please could you forward on to me,your complaints procedure when responding to this communication?

If I do not receive a satisfactory response within eight weeks I reserve the right to escalate this complaint to the FOS for a formal resolution.


I look forward to hearing from you as soon as possible.

Yours faithfully,

PRINTOR SIGN YOUR NAME DIGITALLY

Growurown

bones65 wrote: »

I have been on a DMP for two years now and although my debts are slowly going down that is just it its slowly apprently my DFD is somewhere in 2022.
I have four creditors 3 are with companies who have bought my debt one with the original creditor.
I am currently 22k in debt having paid off nearly 2k since taking out the plan.
I have offered all four creditors a full and final settlement two responded negatively and two never replied. I have since made an improved offer to both these companies and await their response. My question is can i pay these debts off any quicker as i have noticed with some on this forum have paid nearly all their debts off in the time i have been on the plan, am i doing something wrong what advise can people give me

regards

andy

Not sure you are doing anything wrong Andy. Have all your creditors stopped interest and charges? If not then make an official complaint to see if you can get them stopped.

If you are considering F&F settlements does this mean you have a pot of money to pay them off with?