DMP & Mutual Support Thread - Part 9

grant1wish

:mad:

After 11 pretty successful months on my Step change DMP I have had my first real 'scare'.

A letter from HSBC yesterday informs me that they are removing my formal overdraft facility. I am not really sure what this will mean, so I rang them.

The response I got was that they require approx £3k immediate payment. I explained about the DMP etc.... and that I am making my maximum payment. The lady then said, most likely the account will default and get passed on to a DCA who may re-install interest on a daily basis.

Should I tell SC about this, or just wait to see what happens. Has anyone else had this happen to them.

Thanks in advance

G1W

andrar

Time_to_face_the_music wrote: »

Hi and welcome to andrar, Mr Mink and kylie_smiley :hello:

It's great to have you all here and hope you use this thread for advice, help, experience and the wonderful mutual support.

Any questions, please shout out. There is always someone here will try and help

Thanks! I need the mutual support right now more than ever!

andrar

grant1wish wrote: »

Should I tell SC about this, or just wait to see what happens. Has anyone else had this happen to them.

G1W

Tell StepChange straightaway - they will be able to offer you some advice and it won't be the first time this will have happened to one of their customers. (Is that the right term - users maybe?!)

It hasn't happened to me so other than that I'm not much help sorry! I'm sure readers of this thread can help more too.

Mr_Mink

grant1wish wrote: »

:mad:

After 11 pretty successful months on my Step change DMP I have had my first real 'scare'.

A letter from HSBC yesterday informs me that they are removing my formal overdraft facility. I am not really sure what this will mean, so I rang them.

The response I got was that they require approx £3k immediate payment. I explained about the DMP etc.... and that I am making my maximum payment. The lady then said, most likely the account will default and get passed on to a DCA who may re-install interest on a daily basis.

Should I tell SC about this, or just wait to see what happens. Has anyone else had this happen to them.

Thanks in advance

G1W

I had this happen to my Lloyds account which was £3000 in overdraft. All that has happened is the account is completely unuseable (not that I would touch it witha barge pole anyway) and now I'm getting nominal interest charged to the account (we're talking £50 a month down to £5 a month). Not sure if this is something that can be fought or not as it's well below the payment we make to them for the account?

jubilee14

kylie_smiley wrote: »

Thank you so much for this. I'm off to Co-Op tomorrow after I call SC tomorrow and ask a few more (silly) questions. I sent for the application, and have received it via email...this doesn't mean it is set up yet, does it? I'm worried it's set up already and so I won't be able the move the pennies in my account to the new one!

Also, I have a payment due at the end of this month for one of my creditors, it's set up as a direct debit - as are the others. What should I do about that? Pay as normal, or not pay? I'm asking here and I'm also asking at SC - they must get so many silly questions!

I'm feeling a bit more positive about the steps I have taken after speaking to two of my best friends, and just want to get the ball rolling and get things set up.

What happens after it's all set up? I send the letters off and wait?

HI Kylie Smiley - no you havent signed up to anything - once you have had your chat with SC they will advise that they will send out info pack in it contains the agreement form. Once you send that back you are agreeing to mainly paying the amount calulated on debt remedy and not taking out any more credit.

when you send it back you'll get a letter or email giving you the date you start the DMP so if you want a couple of months emergency fund might be worth waiting a couple of weeks till you return the agreement form. ( from memory i applied Late Sept returned early Oct and it was ready to start on 1st Nov)

forgot to say as you mention cancel all direct debits to creditors and as soon as new bank account is set up transfer over your other DD's eg mortgage/utiltities etc then as said send a token payment of say £1 it shows willingness to pay. if you've committed to doing DMP dont pay anymore - i know it goes against what you think is right and most people on here werent behind on payments just couldnt clear balances.

DMP is not a formal agreement hence interest can still be charged so is why you ask them to freeze it ( and you may have to right a few times) but also means if you do end up with a situation you need to delay a month then you can. Creditors dont like it but it can be done.

good luck with the arrangements

jubilee14

grant1wish wrote: »

:mad:

After 11 pretty successful months on my Step change DMP I have had my first real 'scare'.

A letter from HSBC yesterday informs me that they are removing my formal overdraft facility. I am not really sure what this will mean, so I rang them.

The response I got was that they require approx £3k immediate payment. I explained about the DMP etc.... and that I am making my maximum payment. The lady then said, most likely the account will default and get passed on to a DCA who may re-install interest on a daily basis.

Should I tell SC about this, or just wait to see what happens. Has anyone else had this happen to them.

Thanks in advance

G1W

Hi G1W good news most things going well.

i too had my loan put to DCA and the only benefit is i now dont get charged interest which is a relief.

This could well be the case and HSBC are just trying to scare you into paying the full amount.


hope it works out ok

Growurown

kylie_smiley wrote: »

Thank you so much for this. I'm off to Co-Op tomorrow after I call SC tomorrow and ask a few more (silly) questions. I sent for the application, and have received it via email...this doesn't mean it is set up yet, does it? I'm worried it's set up already and so I won't be able the move the pennies in my account to the new one!

Also, I have a payment due at the end of this month for one of my creditors, it's set up as a direct debit - as are the others. What should I do about that? Pay as normal, or not pay? I'm asking here and I'm also asking at SC - they must get so many silly questions!

I'm feeling a bit more positive about the steps I have taken after speaking to two of my best friends, and just want to get the ball rolling and get things set up.

What happens after it's all set up? I send the letters off and wait?

Hi Kylie smiley, no your application won't be set up yet. Get your new bank account set up first. Get your salary paid into it and start moving all your direct debits, standing orders etc. over to the new account. Some new bank accounts do this for you anyway.

Cancel everything to your creditors asap, including the one at the end of the month, write to them all telling them the situation and make token payments. Best to quote your Step Change number in the letters and there are sample letters to give you an idea of what to say.

You will then pay Step Change one amount each month by direct debit and they will then pay all your creditors. When you start the plan is up to you. Some people pay token payments for a few months first to help get themselves straight and put a bit away for emergencies.

The first couple of months is a bit of a pain until things settle down. Some companies try scare tactics in the hopes that you will cough up more dosh, but stick to your guns and don't be bullied. Most of my creditors were OK to deal with and I have found Step Change really helpful when I have had problems.

Growurown

As there are lots of newbies starting I know the one thing we get most anxious about is whether creditors will stop interest, I thought I would post my creditor list. I have posted it before but with so many new DMPers joining I thought it may help set some minds at rest.

All the below stopped charging within a few months of starting the DMP

MBNA Virgin cc (OH's) now passed onto Aktiv Kapital
MBNA Virgin cc (mine) now passed onto Aktiv Kapital
Asda storecard (Santander)
Tesco cc
Mint cc
Nat West cc
Capital One cc
Nat West Loan now passed over to Moorcroft
Intelligent Finance loan passed over to BOS and now paid up in full
Halifax cc (mine) now passed over to BOS

The only accounts being charged are a Halifax CC belonging to OH and a Halifax bank overdraft. I am currently looking into my options with the Halifax CC because it is costing us a lot in interest.

Debtfree_angel

Hey all,

So the dmp is now set up although I have yet to make my first payment. I'm a bit concerned though as a couple of them are being (for want of a better way of saying it) a bit naughty.

I received a text from one of them saying that the balance had gone up by about £150 and that I needed to contact them to discuss repayment options so I called and reminded them that they already knew about my DMP and asked if they had been contacted by Stepchange - they said yes but then said that they often find that things take much longer through SC and offered me a full and final settlement of about £180 (which is some 300 less than what I owe) I said that I would discuss with SC and they advised me not to and just to pay. Am I right in thinking that they just want me to pay up??

The second one is that I've received a letter from another company indicating that they are applying to a court to pursue the debt - they too have been contacted by Stepchange - can they do this?

kylie_smiley

Growurown wrote: »

Hi Kylie smiley, no your application won't be set up yet. Get your new bank account set up first. Get your salary paid into it and start moving all your direct debits, standing orders etc. over to the new account. Some new bank accounts do this for you anyway.

Cancel everything to your creditors asap, including the one at the end of the month, write to them all telling them the situation and make token payments. Best to quote your Step Change number in the letters and there are sample letters to give you an idea of what to say.

You will then pay Step Change one amount each month by direct debit and they will then pay all your creditors. When you start the plan is up to you. Some people pay token payments for a few months first to help get themselves straight and put a bit away for emergencies.

The first couple of months is a bit of a pain until things settle down. Some companies try scare tactics in the hopes that you will cough up more dosh, but stick to your guns and don't be bullied. Most of my creditors were OK to deal with and I have found Step Change really helpful when I have had problems.

Thanks so much for this. Couldn't get an appointment to sort out my ban account today, so doing it tomorrow. One thing worried me though - I explained I wanted to open a basic account, and she straight away asked me if it was because of debt. SC had already said I didn't need to tell them anything, so I said no, and that it was simply to help with budgeting.

After a long conversation with SC this morning, I also am fretting. They said to pay a token payment and send my letters to my other creditors, but not to let HSBC know anything yet, as I hold a current account with them. I'm thinking that I may miss the deadline for swapping my salary over to the new account this month (I think it's friday, but am going to call and check), and am worried that HSBC will find out and pull all my salary before I have a chance to swap it over. Salary goes in on last working day of month, priority payments go out on 1st, mainly.

Also (this is turning into an epic post - sorry) how much is acceptable for a priority payment? And, judging by SC's advice, should I cancel the loan S/O (loan is with HSBC) as obviously, that'll show HSBC that something is up...?

So many questions....:(