DMP & Mutual Support Thread - Part 9

Puzzcat

thehistorygirl wrote: »

I love this thread. I'm having a bit of a wobble at the moment and need a bit of hand-holding. I've started my DMP but so far it looks like all my creditors are accepting the payments as part payments but still charging the £12 default charges for less than minimum amounts being received. I there any way I can challenge this? I'm only into my second month on my DMP so should I let it takes it course for a bit longer and let PayPlan do their negotiations with them or should I write to them personally and try and nip these charges in the bud? I hate seeing the balances go up rather than down, particularly on debts, which up until I began my DMP, I had not defaulted on at all but had to be included.

Hi, I would write to them all, include the word complaint in the title and you can then progress to the fos with a complaint if they continue. There is a template letter on page 115 of this thread, and I believe TTFTM posted it again in the last few days.
Puzz

blisteringblue

Puzzcat wrote: »

Hi, I would write to them all, include the word complaint in the title and you can then progress to the fos with a complaint if they continue. There is a template letter on page 115 of this thread, and I believe TTFTM posted it again in the last few days.
Puzz

Totally agree, write to them all. For the price of a stamp it really can do no harm. I personally think they dump on what they can get away with at the start before agreeing to no fees and interest.

Are they reputable firms though, at the moment I seem to have the opposite to you, freezing the account for 30 days while Stepchange set things up, and our biggest creditor wrote and accepting the payment plan instantly. Most are mainstream credit cards though.

Hopelessly_Hopeful

thehistorygirl wrote: »

I love this thread. I'm having a bit of a wobble at the moment and need a bit of hand-holding. I've started my DMP but so far it looks like all my creditors are accepting the payments as part payments but still charging the £12 default charges for less than minimum amounts being received. I there any way I can challenge this? I'm only into my second month on my DMP so should I let it takes it course for a bit longer and let PayPlan do their negotiations with them or should I write to them personally and try and nip these charges in the bud? I hate seeing the balances go up rather than down, particularly on debts, which up until I began my DMP, I had not defaulted on at all but had to be included.

Hi and welcome


Often takes 3 months or so to settle down. No harm in starting to challenge now.


Google OFT guidance on debt. There's statements in there that will help

From the lending code too

Where a customer can demonstrate to a subscriber that they are making a genuine effort to develop a repayment plan, using either a debt advice agency or a self-help tool10, the subscriber should suspend collections activity related to the customer’s current account, credit card and/or unsecured personal loan while discussions continue, for a period of 30 days.

202.
The subscriber should confirm with the customer and/or their adviser that collections calls and letters will be suspended during the ‘breathing space’ period (except where required under Consumer Credit legislation) and should discuss with the customer and/or their adviser how the account will continue to operate during the 30 day period.


203.
Where the customer and/or their adviser provides clear evidence of demonstrable progress being made in developing a genuine repayment plan, but work has not yet concluded, subscribers should extend the breathing space for up to an additional 30 days.


Interest and charges concessions

Subscribers should consider reducing or stopping interest and charges when a customer evidences that they are in financial difficulties. Such reduction/suspension decision should be based upon an 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 account has 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.


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.


There are template letters on here and on national debtline site.


Good luck


HHx

cat1978

Hi everybody, just found this thread and thought I'd ask for some advice. My partner has a dmp with SC and they have calculated it's going to take roughly 40 years to clear it we have been getting his house ready to sell to try and reduce this, but then were wondering whether we'd be better renting it out and try to increase our income, and look at the long term rather than the short term?


Any thoughts gratefully received, as I feel like I'm going round in circles


Thanks


Cat

Suseka

Good morning, from sunny Norfolk.

Finally got OH to set up a Noddle account and it makes for interesting reading. All bar one of our loans show as a default, the one that doesn't is Hfx and that's the only one that hasn't frozen interest and I'm currently awaiting a judgement from the FOS about that.

Three out of five credit cards are showing in default, but the two remaining ones (both Barclays) are showing as 'up to date'...eh! They've stopped interest and had been showing an AP status for around 4 months and they have now removed that. Not sure what's happening there, so I'll have to check those statements closely when the next ones arrive. The payments being made to both of them are definitely below the minimum payment - very odd.

Now I feel more able to handle money matters I am going to put my efforts back into chasing a PPI claim. Long story short, took out a secured loan with First Plus, came with PPI insurance and I've been trying for the last two years to get my money back. Not helped by the fact the insurance was sold via a third party who I was informed had gone into receivership... however around 6 months ago, having tried to claim via FOS and another financial mediator (whose name I can't bring to mind this minute), have found out this 3rd party is still trading under a slightly modified name, but it is the same company. So I've got to start the whole process over again by contacting them at the new address I've been given..... time will tell, and I'm not overly hopeful, but if successful the amount claimed would definitely make a dent into my DMP

But for today I'm going to make the most of the little bit of sunshine we've had lately and put debt things aside and relax.

jubilee14

cat1978 wrote: »

Hi everybody, just found this thread and thought I'd ask for some advice. My partner has a dmp with SC and they have calculated it's going to take roughly 40 years to clear it we have been getting his house ready to sell to try and reduce this, but then were wondering whether we'd be better renting it out and try to increase our income, and look at the long term rather than the short term?


Any thoughts gratefully received, as I feel like I'm going round in circles


Thanks


Cat

Hi Cat - i am not sure what the right answer is for you. 40 years does seem quite long for a DMP. i assume your planning to live together in your house? leaving the other for rent/disposal? if you do keep renting the issue would be your keeping the liability of any repairs/maintenance costs and when vacant for rent/ctax costs which could be costly and affect your ability to pay on the DMP.

I think it would depend on the type of home/flat how lettable it is and whether the rent received will cover all the expenses or just cover the mortgagae you could always try it out see what the interest is like ( if the numbers stack up) and then if its an issue put it up for sale.

Good luck on the journey

cat1978

Thanks Jubilee,


I get the impression that there is a shortage of rentable properties in this village and its a 3 bed semi, so think there would be interest in it. Initial figures suggest that rent would be £100 more than the mortgage, so not huge, but combined with no council tax, gas or electric etc should help. Unfortunately when he moves in with me, I will lose working tax credits, so not hugely better off.


Think I'm possibly confused, because one person at SC said if house doesn't sell quickly, OH should consider IVA. Yesterday somebody else at SC said no he shouldn't and should just carry on with dmp for as long as it takes.


Sorry for waffle, just can't seem to think in a straight line.

markob66

Hi again as mentioned I am starting the process of cancelling my direct debits etc, most of my credit cards I make an online payment.My question is although I will write to everybody I owe money to about commencing my DPM which I anticipate starting on the first of May, would it not be better to not pay a token payment as this might increase the likelihood of being defaulted quicker?Your thoughts please, thanks Mark

Puzzcat

markob66 wrote: »

Hi again as mentioned I am starting the process of cancelling my direct debits etc, most of my credit cards I make an online payment.My question is although I will write to everybody I owe money to about commencing my DPM which I anticipate starting on the first of May, would it not be better to not pay a token payment as this might increase the likelihood of being defaulted quicker?Your thoughts please, thanks Mark

Hi Mark,


The token payment shows you are willing to pay, you only need to pay £1 to each. Not sure how the creditors would respond if no payment is made, I don't think it would make any difference to speed of default, that appears to be as and when they feel like it...! 4 of my 9 accounts are now defaulted.


Puzz.

thehistorygirl

blisteringblue wrote: »

Totally agree, write to them all. For the price of a stamp it really can do no harm. I personally think they dump on what they can get away with at the start before agreeing to no fees and interest.

Are they reputable firms though, at the moment I seem to have the opposite to you, freezing the account for 30 days while Stepchange set things up, and our biggest creditor wrote and accepting the payment plan instantly. Most are mainstream credit cards though.

Yes, they are mainstream lenders. NatWest and Cap1 are the main ones and have much smaller amounts owing to Littlewoods and Argos (those are in the very small hundreds). Both statements from the big ones arrived this morning and both have whacked on £12 charges and interest. NatWest also deny having been contacted by PayPlan depsite having accepted the payment for last month. Anyway, I'm going to take your advice and send those letters off to each one and see what happens. Wobble moment averted for now anyway!!