DMP & Mutual Support Thread - Part 9

Time_to_face_the_music

Chatterbox20 wrote: »

Hi All, hope I'm posting this in the right place if not let me know. My oh and I have accrued almost £73k worth of debt. This was due to a series of circumstances over almost two decades. From university fees, lack of maternity pay and redundancy among others. We paid debts by taking out more debts for years until we couldn't keep up. We finally realised we had to do something last year and set up a DMP through step change. It was an initial relief but now I'm feeling like I can't breathe again many of our creditors are still charging interest and the debt is going up not down. We are considering an IVA but that would mean I could not pursue my career. To be honest at this rate we are likely to end up with CCJs which would also stop me pursuing my career so it's a lose lose situation. I accept full responsibility for my debt and cannot believe I have been so stupid as to cost myself my career. I thought a dmp would solve everything but we don't seem to have moved on at all. Has anyone with experience of DMPs managed to avoid getting a CCJ? Thanks in advance for any help and support. Please no bashing as I know it's my own fault and I don't think my emotional state could take it right now.

Hi and welcome Chatterbox :hello:

How many creditors do you have and who are they? How long is your DMP predicted to last? Have any stopped interest? Are they charging a reduced amount of interest or full rate?

As Puzz has already said, you really need to fight these interest charges and if it works, you are likely to see the interest stopped and the interest you have paid since starting your DMP could possibly be refunded, making a big difference to your situation.

If you have already asked your creditors to stop interest and they have ignored you or refused, you can go straight to the FOS. If you haven't previously complained, you need to start with a letter of complaint, tell them you want them to stop interest and also ask for the refund of interest paid since commencement of the DMP. If you don't get the response you want, then contact the FOS.

If you can't find the template letter, just ask and I will post it again for you.

TTFTM x

Time_to_face_the_music

Meatloaf1981 wrote: »

Well unluckily for me, my Credit Union refused to even entertain the idea of a DMP. As far as they were concerned, they lent me £10k last year and because they are not-for-profit, they cannot accept the offer on my DMP and would not negotiate further so as of next Friday they were going to hand the matter over to their solicitors unless I continued to meet my contractual payments, so unfortunately I have had to concede defeat there and agree to carry on paying them as before, albeit I managed to get them to agree to try and reduce my payments in an arrangement between me and them. It will require bank statements, payslips, all that horrible stuff to submit before they agree to any change in payment.

What this has done is obviously badly skewed my DMP as they won’t be a part of it and therefore affects the affordability of the rest of the DMP now. Previously if they had agreed then the payments to them would have dropped from £213 a month to £73 a month. My total DMP payment was meant to be £221 a month but clearly it will now be around £138 with the extra £213 going to just the one creditor. My outgoing payment will be £351 pcm at the very least unless my Debt Management firm can get the payments down further on the other creditors and I’m successful in my own right with the Credit Union!

MBNA, Virgin and Barclaycard have all signed up to the plan, just waiting on Sainsbury’s for my other loan and Barclays for my overdraft and then hopefully things will be clearer and easier to deal with. I’m lucky that if the overdraft management isn’t agreed with Barclays then I might be able to get help from the welfare fund at work. I can borrow up to £5k from them and pay it back with no interest at an amount to suit me.

I keep telling myself that a payment of £351-ish a month is still about half what I was paying, which is a good thing. My only worry now is that my emergency funds will be decreased quite substantially as a result.

Here’s hoping my PPI claim against Canada Square Operations will come up trumps and help me bolster my emergency funds! I’m hoping to get £3.5k or more back from them on my loans with Egg from 2002 – 2003!

What does your DMP provider say about he credit union refusing to accept the DMP?

Most DMPs require all debts to be included so am not sure where a company like Stepchange or Payplan would go with this. If you can't afford it according to your I&E, I am not sure what difference them involving a solicitor would make. Bank statements and payslips etc should just confirm what is already in the I&E which has been submitted to them so I don't need what they will gain from this either.

I have never seen a post here regarding a credit union loan in a DMP but surely there must be someone who has done this. Anyone got any experience of this?

Time_to_face_the_music

GemP1983 wrote: »

Hi all

I have been in a DMP since Nov. Halifax have now declined the DMP despite initially agreeing to it. SC have said to carry on as usual but I received the statement for my credit card from Halifax and within it the Halifax stated they can offset money from any other account I hold with them. I have a joint account with my boyfriend and wondered two things:
1. Can they take money from this joint account? It never has much in but it is our bill account.
2. Are they likely to do this or are they more likely to sell my debt on to a debt collection agency?

I am a little concerned but have read on this site that Halifax can be difficult with DMPs.

Any advice greatly received.
GemP1983

Hi and welcome Gem :hello:

Yes Halifax can offset from a joint account, so please move the money somewhere safe.

Number 1 rule - NEVER bank where you have debt!

TTFTM x

Time_to_face_the_music

Growurown wrote: »

You've made me smile Will Robinson - sorry MB. I'm pretty sure you are bonkers:D;);)

100% agree. MB is bonkers ...... in a very good way :rotfl:

Growurown

Chatterbox I agree with TTFTM, fight these charges. I complained to the FOS about the Halifax and got over a thousand pounds back. Not in my pocket of course but it substantially reduced my outstanding balance. You are unlikely to get CCJ's if you are paying what you agreed through the DMP. They will only take you to court if you stop paying and if you can't afford the repayments go back to SC and re do your income and expenditure.

Flutterby83

Hi Chatterbox, I am only just starting out on my DMP journey but have found everyone on here so lovely and helpful that you have no fear of bashing
With regards to what has been mentioned about bank accounts, I am opening a cash card account with a bank where I have no debts but when my DMP goes into action, will they be able to freeze my new account? And am I better starting my emergency fund in cash or will it be safe in an account with a bank that I currently have no links at all to? I know the 'off-setting' rule, which is why I'm moving, but I'm scared they will freeze my new account and with 4 kids I can't afford to be without money!

Flutterby83

Meatloaf1981 wrote: »

Well unluckily for me, my Credit Union refused to even entertain the idea of a DMP. As far as they were concerned, they lent me £10k last year and because they are not-for-profit, they cannot accept the offer on my DMP and would not negotiate further so as of next Friday they were going to hand the matter over to their solicitors unless I continued to meet my contractual payments, so unfortunately I have had to concede defeat there and agree to carry on paying them as before, albeit I managed to get them to agree to try and reduce my payments in an arrangement between me and them. It will require bank statements, payslips, all that horrible stuff to submit before they agree to any change in payment.

What this has done is obviously badly skewed my DMP as they won’t be a part of it and therefore affects the affordability of the rest of the DMP now. Previously if they had agreed then the payments to them would have dropped from £213 a month to £73 a month. My total DMP payment was meant to be £221 a month but clearly it will now be around £138 with the extra £213 going to just the one creditor. My outgoing payment will be £351 pcm at the very least unless my Debt Management firm can get the payments down further on the other creditors and I’m successful in my own right with the Credit Union!

MBNA, Virgin and Barclaycard have all signed up to the plan, just waiting on Sainsbury’s for my other loan and Barclays for my overdraft and then hopefully things will be clearer and easier to deal with. I’m lucky that if the overdraft management isn’t agreed with Barclays then I might be able to get help from the welfare fund at work. I can borrow up to £5k from them and pay it back with no interest at an amount to suit me.

I keep telling myself that a payment of £351-ish a month is still about half what I was paying, which is a good thing. My only worry now is that my emergency funds will be decreased quite substantially as a result.

Here’s hoping my PPI claim against Canada Square Operations will come up trumps and help me bolster my emergency funds! I’m hoping to get £3.5k or more back from them on my loans with Egg from 2002 – 2003!

Would it not be better for it to go to the solicitors as they would be more likely to accept the DMP payment? I'm new to all this so don't take what I say as gospel but after reading alot of the previous posts, it would appear that organisations like debt collectors and collection agencies etc that the debts get sold on to are more willing to accept DMP payments so I don't see why solicitors would be any different. Have you spoke to SC about this? And I agree that giving them I&E details is no different to what is being done with a DMP anyway! Hope you get it sorted out

Meatloaf1981

Time_to_face_the_music wrote: »

What does your DMP provider say about he credit union refusing to accept the DMP?

Most DMPs require all debts to be included so am not sure where a company like Stepchange or Payplan would go with this. If you can't afford it according to your I&E, I am not sure what difference them involving a solicitor would make. Bank statements and payslips etc should just confirm what is already in the I&E which has been submitted to them so I don't need what they will gain from this either.

I have never seen a post here regarding a credit union loan in a DMP but surely there must be someone who has done this. Anyone got any experience of this?

My DMP provider is working on the basis of an individual payment to each creditor, rather than a single payment to the provider who then distributes. I was disappointed with the result from my credit union but I guess I can still manage if I can boost my income with any overtime over the next few months to try and maintain a decent level of emergency funds.

Meatloaf1981

Flutterby83 wrote: »

Would it not be better for it to go to the solicitors as they would be more likely to accept the DMP payment? I'm new to all this so don't take what I say as gospel but after reading alot of the previous posts, it would appear that organisations like debt collectors and collection agencies etc that the debts get sold on to are more willing to accept DMP payments so I don't see why solicitors would be any different. Have you spoke to SC about this? And I agree that giving them I&E details is no different to what is being done with a DMP anyway! Hope you get it sorted out

Hi thanks for the post. Yes I hear what you're saying but I suppose the fear of legal action was enough for them to bully me into continuing, perhaps wrongly as you've mentioned.

Flutterby83

Meatloaf1981 wrote: »

Hi thanks for the post. Yes I hear what you're saying but I suppose the fear of legal action was enough for them to bully me into continuing, perhaps wrongly as you've mentioned.

That's understandable - I think I'd very much do the same!! The words 'legal action' are enough to scare anyone, regardless of their situation!!