DMP & Mutual Support Thread - Part 9

alyxzandra

Time_to_face_the_music wrote: »

The way I look at it is like this, a DMP is an informal agreement but you are supposed to treat all creditors fairly. Some stop interest, default quickly and play nice, others don't. So they don't treat me fairly and why should I treat them equally? This may seem a bit simplistic and flippant but it is the basis for how I have handled our DMP.

We started off with Stepchange (ex CCCS), who unfortunately did not have much luck in getting any interest or charges stopped for us. The explanation for this seems to be the way they distribute the payments which is based on your previous minimum payment and not the total owed. We owed a lot and were fortunate in being able to pay a lot into our DMP but this meant that some payments to creditors were above our minimum payment and they hence refused to accept that we were in financial difficulty and would not stop interest.

I thought at first we just had to accept this and CCCS told us this happened sometimes and there was nothing they could do about it, there is no legal obligation for creditors to stop interest. I started reading the previous threads on this forum and also on other debt forums and realised people did fight this and won, so was determined I could too.

First step was to negate all interest charged each month, while fighting to get this stopped and refunded. We started making extra payments to each creditor who was still charging interest, this was earned by selling stuff on ebay/Amazon, working extra hours, OH marking exams etc. In the meantime we wrote letters of complaint and followed everything up with the FOS. Most we won, one we lost. So we concentrated on getting that one paid off.

This one creditor told us that if we dropped our payment to them, they would stop interest. We discussed this with StepChange and they refused to drop the payment, we got the creditor to put it in writing and send it to StepChange but it was still a no go. Next step was to figure out how to play hard ball with creditors who were giving us a bad time and we realised we could only do this by taking over our own DMP, so we went it alone. It's amazing how a couple of months token payments instead of their full amount can soften up a difficult creditor

Another advantage of going it alone meant it immediately put us one month ahead with our DMP, as all creditors got 2 payments that month. It's still not perfect, almost 2 years in we still only have 2 defaults but I will fight these as each debt is paid off and try to get the default backdated to within 6 months of the start of the DMP.

StepChange do a good job and they help many people but they are not for everyone. I also never completely trust the fact that they are funded by our debt payments. I wish I had known at the start what I know now and I believe life would have been a lot easier but hey, we live and learn and without the help, advice and support of this thread, I have no idea of where we would be now

You are my inspiration! I am considering going alone without Stepchange in the near future. I find they do well in distributing, but when it comes to thinks like helping reduce interest, forget it.

One company charged £100 in an admin fee on £533 owing. I admit I did not take it up from the start with them, but have just sent them a template letter provided on here. Another is charging £409 in interest on a £499 purchase. And are now saying they will default us and charge default fees and interest. So, another letter went to them today. If it is a no go with them, them the FOS.

We have 2 small creditors and I am using money we are saving from not paying our council tax for 2 months (we may over 10 months) and paying them both off at the end of January with a full and final settlement. They have been very good with us and stopped interest immediately. Only one creditor is charging interest of 6% a year (Barclays) and that equates to about £7 a month, but we pay nearly £35 a month. We managed to get Halifax from stopping interest and refund us the interest we already paid on a loan. It did not even take a letter, but when it went to a collection agency they were the ones who got it stopped and refunded!

When things settle down at home, I will look into self managing the DMP. Right now, things are going well. But, I like the idea of being in charge and I feel I have more support here than I do with Stepchange.

Time_to_face_the_music

alyxzandra wrote: »

You are my inspiration! I am considering going alone without Stepchange in the near future. I find they do well in distributing, but when it comes to thinks like helping reduce interest, forget it.

One company charged £100 in an admin fee on £533 owing. I admit I did not take it up from the start with them, but have just sent them a template letter provided on here. Another is charging £409 in interest on a £499 purchase. And are now saying they will default us and charge default fees and interest. So, another letter went to them today. If it is a no go with them, them the FOS.

We have 2 small creditors and I am using money we are saving from not paying our council tax for 2 months (we may over 10 months) and paying them both off at the end of January with a full and final settlement. They have been very good with us and stopped interest immediately. Only one creditor is charging interest of 6% a year (Barclays) and that equates to about £7 a month, but we pay nearly £35 a month. We managed to get Halifax from stopping interest and refund us the interest we already paid on a loan. It did not even take a letter, but when it went to a collection agency they were the ones who got it stopped and refunded!

When things settle down at home, I will look into self managing the DMP. Right now, things are going well. But, I like the idea of being in charge and I feel I have more support here than I do with Stepchange.

Hi alyxzandra :hello:


We did everything via the CAB's brilliant online DMP service. This started off on North East Derbyshire CAB but is now being used all over the country. I really can't recommend it highly enough, the online tools, I&E and letters are brilliant and the allowances are much more generous than Stepchange!


Check out


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


and please let us know how you get on.


Happy New Year.


TTFTM x

CommitedToChange

Hi everyone

I hope you all had a good Christmas.

I have a question about interest being charged on a loan that is on my SC dmp. I have a Halifax loan that I have just received a stmt from and noticed that I am paying around £30 in interest every month. Should I be challenging this - I'm a little confused as to how the interest is applied on loans that end up on dmps. Is this is the interest that would normally be applied to it - but should it be stopped anyway?

I think I should be sending them a letter asking them to stop - after all it can't hurt right? Should I also ask them to refund it as it is extending my DMP?

Thanks everyone

Mr_Mink

CommitedToChange wrote: »

Hi everyone

I hope you all had a good Christmas.

I have a question about interest being charged on a loan that is on my SC dmp. I have a Halifax loan that I have just received a stmt from and noticed that I am paying around £30 in interest every month. Should I be challenging this - I'm a little confused as to how the interest is applied on loans that end up on dmps. Is this is the interest that would normally be applied to it - but should it be stopped anyway?

I think I should be sending them a letter asking them to stop - after all it can't hurt right? Should I also ask them to refund it as it is extending my DMP?

Thanks everyone

I'd say yes, there's a great template letter on this thread (I think it's only a few pages back) about unfair charges.

The letter will be more successful if your payment per month is lower than the interest would be adding, i.e. if you can point out that you pay back £20 a month and the interest is adding £30 a month, then you have a solid case.

Best of luck.

CommitedToChange

Thanks for the fast reply Mr Mink, the interest isn't more - but it is a lot I think maybe 50% and I've got nothing to lose.


I'll go back and find the letter.

Mr_Mink

No need.

http://forums.moneysavingexpert.com/showpost.php?p=64116345&postcount=3386

CommitedToChange

Mr_Mink wrote: »

No need.

http://forums.moneysavingexpert.com/showpost.php?p=64116345&postcount=3386

I don't think that is the right letter.

I found it on page 115

But still thank you :T

Puzzcat

Post 2285 page 115 is a letter for stopping interest.

Mr_Mink

Yup, my bad. Though if they don't play ball then the one I found may be useful (I am so not covering for finding the wrong letter )

janet43

hi sorry if this is a stupid question. Can you have a mobile phone contract while on a DMP??? Just starting out with a DMP and worried about this??