DMP & Mutual Support Thread - Part 9

notsocannylass

We entered into a DMP with Payplan back in July 2009 with debts of around 130K. To date we have repaid 159K and according to them have 12000 remaining to pay. My husband lot his job in October. knew this was likely to be, so informed Payplan immediately . Our DMP was scheduled to be completed in Jan 2014. Every step along the way we informed Payplan by phone or by email. We knew we would be receiving a settlement of around 10k and we told Payplan that we would offer this as a final settlement to out creditors. Our final regular payment was made at the start of Nov and as we were expecting the lump sum, we cancelled the standing order. The lump sump if 10k was paid to Payplan mid November. We were told negotiations for a short settlement were underway and that creditors should look on our offers favourably. Since the beginning of December we have received numerous phone calls and letters from our creditors - adding charges and default letters - and have repeatedly contacted Payplan only to be told that very few of the creditors will accept anything less than the full amount. It transpires that back in October, when my husband lost his job, we should have been instructed to complete a new I and E form! So now that we have done that , we are waiting again and Payplan have our 10k and the creditors are hassling us having left us alone for 4 plus years!!
Advice? Suggestions on a postcard please?!

Time_to_face_the_music

notsocannylass wrote: »

We entered into a DMP with Payplan back in July 2009 with debts of around 130K. To date we have repaid 159K and according to them have 12000 remaining to pay. My husband lot his job in October. knew this was likely to be, so informed Payplan immediately . Our DMP was scheduled to be completed in Jan 2014. Every step along the way we informed Payplan by phone or by email. We knew we would be receiving a settlement of around 10k and we told Payplan that we would offer this as a final settlement to out creditors. Our final regular payment was made at the start of Nov and as we were expecting the lump sum, we cancelled the standing order. The lump sump if 10k was paid to Payplan mid November. We were told negotiations for a short settlement were underway and that creditors should look on our offers favourably. Since the beginning of December we have received numerous phone calls and letters from our creditors - adding charges and default letters - and have repeatedly contacted Payplan only to be told that very few of the creditors will accept anything less than the full amount. It transpires that back in October, when my husband lost his job, we should have been instructed to complete a new I and E form! So now that we have done that , we are waiting again and Payplan have our 10k and the creditors are hassling us having left us alone for 4 plus years!!
Advice? Suggestions on a postcard please?!

Hi notsocannylass :hello:


Wow you have paid off an amazing amount, well done on that, but ouch on that interest added. I assume you tried to get the interest stopped? Did you take the case(s) to the FOS if the creditors refused?


Regarding the F&F now, my only guess is that there was so little time left to pay and such a small difference between the F&F offer and the full payment, that the remaining creditors refused. How many of your debts are defaulted and how many have been moved to DCAs? You may be better asking this question on the main DFW board on the Full and Final Settlement Help thread


https://forums.moneysavingexpert.com/discussion/115430


and hopefully someone like fatbelly will offer you excellent advice.


I think you need to ask Paypal tomorrow what they have done with your £10K. If they are still sitting on it, my advice would be to ask for it back, pay off any debts that are still charging interest and then tell the rest they will just be getting a token payment of £1 per month until your situation improves.


My other priority would be then starting to work with the creditors and FOS to get some of that interest paid refunded and to get any late defaults backdated to within 6 months of the start of your DMP.


Good luck and please let us know how you get on

Sazzie23

Hi Notsocannylass

Wow, you paid off so much already - that's brilliant, don't be too disheartened, I guess it's just like the startup troubles we all get, but in reverse. And it will seem worse because of the time of year I suppose?

Ttftm's advice seems very sensible to me, I think I would be quite cross with Payplan for not letting you know, but maybe tackle them after you've got the creditors off your back. A letter to each saying your circumstance have changed and you are unable to keep up the current repayments, but with that token payment, just like you were starting a new DMP?

You could maybe try going across to SC to see if they have suggestions? Or perhaps the national debtline people might come on the forum if you post.

You are very nearly paid up, and if you have to retain a small amount to be paid off then so be it, you made it this far, you can get through it.

Do come back soon

Monkeyballs

Hi all,

I've posted a few times on the DFW forum in various threads but never on this one but now I'm seven months into my DMP with SC and am loving it!

I was a little nervous to start with when I entered the plan but all my creditors (excluding Orange/EE who basically took the payment but kept telling me that I was behind, my contract was breached, going to default and the passed to a DCA who have all since been fine and accepted my DMP repayments and Barclaycard who refuse to stop interest but have reduced it massively) have been fine and in some cases actually really supportive and understanding (Wonga, who knew!).

Now I feel more confident, I'm living off a realistic budget and am starting to feel like I'm a member of the human race again which is what I was missing before as my confidence was sooooo low.

I do have to put my hands up and say that I went through bankruptcy about 8 years ago and never learned my lessons at the time (live within means, don't spend stupidly and let others pay their own way - they'll still like you if they are really a friend, among others) but now thanks to counselling (gambling and confidence which were actually interconnected) I feel good

I just got through Christmas staying within my budget and have come out with enough to get me easily to payday and although the temptation of the sales is strong I've found that just creating a thread and following it for the day distracted me from buying those urgent DVD players, tablet PC's, U bends and Ferrero Rocher chocolates LOL.

I now plan t use this thread to post updates and reach out when I'm feeling a bit low or just need a distraction and watch those DMP months roll by

MB

Puzzcat

3 defaults showing on noddle.. rbs, nw cc and cap one...I'm taking this as good news this early on..


Let's hope the other 6 catch up quickly...


Hope you all had a good christmas, I had a minor heart attack this morning when my card was declined at Sainsbugs..:eek:. oh then the cashier mentions, we've had trouble with this today.. and it all goes through smoothly as it should as I know money is in account... maybe she could have mentioned the problem as soon as declined rather than let's try again and then an explanation..

Time_to_face_the_music

Hi and welcome to Monkeyballs :hello:

Hey no judgement here, we all have done daft things in the past and this thread is all about help, advice, experience and support. We love updates and milestones, big or small, so please stick around and celebrate yours with us

Puzz - great news on the early defaults, the earlier the better. I had a card declined first time today too! There must have been some sort of banking problem. There was no panic on my part as I knew almost to the penny how much was in the account. Not like the bad old days when I used to have to check the balance at the ATM before I dared try in a shop

The left over Christmas stuff in this house is ridiculous but it should keep our shopping budget low for the next few weeks! Well that's my excuse and I am sticking to it

Monkeyballs

Hi TTFTM,

Thanks for the warm welcome I only joined the thread and I have a question... I have spoken to Step Change and they've given me a diplomatic answer but thought I'd run it past y'all too

So, my brother has offered to pay off a couple of my creditors - they're not massive but it is obviously hugely appreciated but I'm not sure of any potential repercussions to my DMP

He has offered to pay Welcome Finance £195 and my Barclays Overdraft £65 which account for £40 per month of my total £500pcm repayments.

In theory this means that more money goes to my other creditors more quickly so why would they object? But the diplomatic answer which I got was that they may see it as breaking my DMP...

How likely would this be? Has anyone here ever paid off a single creditor and carried on with their DMP and what was the outcome?

Thanks,

MB

Sazzie23

Hi monkey balls, welcome Ot the DMP support thread.

I started on SC DMP earlier in 2013, in approx August we received a Ppi refund which was paid into our defaulted joint account, a - by mistake, and b - because it needed to go into a joint account as it was from a joint loan.

Anyway long story short Natwest our overdraft at £5000 approx, was paid off fully, the only creditor who has received anything above the standard payments, no one has complained, SC were fine when I explained what happened.

It's my only experience, sure there will be other stories. Good of brother to offer to pay anything so be a shame if you couldn't accept his offer

Sazzie23

Hi TTfTm and Puzz

Yes I used to get cash out of the ATM before risking a supermarket shop, then if card was declined I would pay in cash ...dead silly but there you go...

Glad to hear it was just a hiccup, I'd have had a sharp intake if it happened now since I know money will be in the account, although I have heard horror stories where extra payments have been claimed from accounts without people knowing so it's always going to be possible.

Yeah to knowing what money is in our accounts!

Monkeyballs

Thanks Sazzie,

I would be a shame to turn down his generous offer I agree, especially as I was so surprised when he offered! Very out of chracter of him

I think I'll go ahead and do it, they are two of my smaller debts anyway and as the balanace to repayments made mean they would be repaid before the others anyway - plus it's two less creditors on the list!

MB