DMP & Mutual Support Thread - Part 9

heart2014

Hi all

Firstly thanks for your replies last time I posted. Just thought I'd share an update - first payment has gone to sc. It feels good to be tackling this issue and not building up any more debt. Ive been feeling proud of myself for doing this and I can't wait until it is all paid off. I'm really trying not to dwell on the worst case scenarios and focus on paying this off.

I hadn't heard anything from any of my creditors until today - a letter from next saying thanks for the notification of dmp and then basically going on to detail their own payment plan for me to adhere to or else it could go to a dca basically. I called sc - they advised probably just a crossover with their p.work getting there as that was only sent at the end of April and more than likely system generated. It was scary though to be honest as it's my first letter...but going to ignore it and stick making the payments to sc. It was just seeing this red letter with arrears stamped all over it.

After reading all your posts I totally want to fight the interest charges from the get go...the letter from next says they've stopped them (for the term of their 6 month agreement that they've come up with that is);b.card I haven't heard from yet and my two loans with halifax have had interest charged this month but at that point they wouldn't have had the first payment from sc yet. Would you advise sending a letter now to creditors asking them to stop interest or wait and see until month one is over? If so is there a template I could use?

Thanks for all your help

Sazzie23

Suseka wrote: »

I would get straight onto them (Asda) directly yourself and push them to freeze interest and charges. In my experience most creditors need to be pushed to stop charging and its better to do that from the outset rather than wait and see. All bar one of mine (Halifax) have frozen interest charges and still continue to almost one year in. I did complain via the FOS but didn't get very far with that, but it did result in a letter from Halifax advising that my account should go into 'default' shortly... I wait with bated breath

hmmm hbos:mad: But totally agree with Suseka, Kate, get onto the letter writing now while you have time. I recall something about a 6 month time limit to complain as well but not sure when that counts from ?

Sazzie23

Hopelessly_Hopeful wrote: »

When I was with Stepchange they took payment on the 1st and paid creditors on the 25th. That's hanging onto the money for 3.5 weeks. I would love to know how much interest they gain collectively from the total sum of everyone's DMP payment. I appreciate they need to fund the charity but they already get a % 'comission' from the creditors. This was one of the reasons I chose to go self managed; some of my creditors were charging interest and I reasoned that that way I paid the creditors myself on the 1st saving 3 weeks of interest.


HHx

Another good reason to go self managed but I'm still not ready and don't know if I could be trusted:o, SC works for me, and I understand why they want to hand onto the money's. It's a charity and someone has to pay the advisors wages and phone lines etc etc....
For those that self-manage respect given;)

However I wouldn't rely on SC to get your interest cut, definitely a DIY action required. :eek:

jubilee14

jubilee14 wrote: »

Hi all - i did a seperate post on the forum but didnt get many replies apart from Puzcat - thanks

Just wanting views on whether i should contact hfx on repaying the credit card - they have been threatening to default me for the past few months and got a letter saying i had no arrangement although they are still charging me the reduced 11% pa. i had contested this to freeze interest way back and missed the 6 month window to complain to FOS.

So while i am still paying money via DMP each month its only taking just over £20 off a $10k + debt a month so ideally want to be defaulted.

Concern is if i do contact them i go continue with this which keeps pushing my DFD right out. But if i dont they try and take legal action and put something like a charging order on me.

any views would help thanks all.

so i have written again to Hfx stating that gareement was arranged in 2012 and revised I&E was sent via SC in sept 2013 and again Nov 2013, and that despite paying £2200 they have applied £1860 in interest over past 18 mths meaning i have only paid off a measly £340 of balance, I noted as formal complaint. will see what comes back i have already tried this before to complain and didnt get anywhere but hope by doing this i can send over to FOS if they dont play ball.

Time_to_face_the_music

heart2014 wrote: »

Hi all

Firstly thanks for your replies last time I posted. Just thought I'd share an update - first payment has gone to sc. It feels good to be tackling this issue and not building up any more debt. Ive been feeling proud of myself for doing this and I can't wait until it is all paid off. I'm really trying not to dwell on the worst case scenarios and focus on paying this off.

I hadn't heard anything from any of my creditors until today - a letter from next saying thanks for the notification of dmp and then basically going on to detail their own payment plan for me to adhere to or else it could go to a dca basically. I called sc - they advised probably just a crossover with their p.work getting there as that was only sent at the end of April and more than likely system generated. It was scary though to be honest as it's my first letter...but going to ignore it and stick making the payments to sc. It was just seeing this red letter with arrears stamped all over it.

After reading all your posts I totally want to fight the interest charges from the get go...the letter from next says they've stopped them (for the term of their 6 month agreement that they've come up with that is);b.card I haven't heard from yet and my two loans with halifax have had interest charged this month but at that point they wouldn't have had the first payment from sc yet. Would you advise sending a letter now to creditors asking them to stop interest or wait and see until month one is over? If so is there a template I could use?

Thanks for all your help

My advice is to always try and stop interest ASAP, the earlier you go for it, the better chance you seem to have.

Try something like this, customising it for each creditor:

You

Date

Them

Dear Sir/Madam

Re: [Creditor name] account No: XXXXXXXXXXXXXXX

Thank you for your letter/statement concerning the above account. I am sorry that you feel unable to suspend interest/charges on the above account.

As you are aware, I/we am/are in a DMP with XXXXXXXX, reference number XXXXXXXX. The majority of my/our other creditors have agreed to the offer of payment and agreed to suspend any interest charges still accruing. They have accepted that to continue to charge interest would not assist us in my/our present financial difficulties, and can only serve to increase my/our total debt.

I/we have already paid considerable sums in interest to my/our account. If interest charges continue, the monthly instalments I/we am/are paying will not even cover that interest. Also, the cooperation of my/our other creditors who have agreed to freeze interest already would be put at risk.

I am aware that XXXXXXX subscribes to the Lending Code which states that lenders will consider reducing or suspending interest and charges if these would cause the debt to increase or lead to the repayment term becoming too extended. I would therefore be grateful if you would reconsider your decision not to freeze the interest. This would mean that the monthly payments I/we make would actually reduce the balance outstanding to your company.

Please consider this letter as a complaint about the interest charges you are continuing to apply to my account. I would like to see these stopped immediately and previous interest charges refunded.

If you are unable to help me with this issue, I will have no alternative but to take this case to the Financial Ombudsman Service.

I look forward to hearing from you as soon as possible.

Yours faithfully

You

Time_to_face_the_music

Sazzie23 wrote: »

hmmm hbos:mad: But totally agree with Suseka, Kate, get onto the letter writing now while you have time. I recall something about a 6 month time limit to complain as well but not sure when that counts from ?

The 6 month time limit is related to a FOS decision on a complaint and nothing to do with an initial complaint to a creditor.

Sazzie23 wrote: »

Another good reason to go self managed but I'm still not ready and don't know if I could be trusted:o, SC works for me, and I understand why they want to hand onto the money's. It's a charity and someone has to pay the advisors wages and phone lines etc etc....
For those that self-manage respect given;)

However I wouldn't rely on SC to get your interest cut, definitely a DIY action required. :eek:

Sorry if this makes me unpopular but I think that the 11% that Stepchange get back from the creditors on each and every payment is plenty enough income for a charity. To put some perspective on this, that income was £35.6 million in year ending 31st December 2012.

Interestingly enough the FCA is trying to stop DMP agencies from holding on to payments for anything greater than 5 days and also asking for detailed information to be given on how much interest is earned on retained payments. Stepchange has put up an argument to both of these.

Kate_fixing_it

Wow! Fantastic letter TTFTM - I won't be messing with you will see if mother will pick me up and let me use her printer to get a copy of this out ASAP.

I don't wish to disparage SC but the operator just seemed to dismiss me and try to get off the phone. Probably just a busy day and needing to get the next call.

Thanks everyone for your help and support,
Kate x

Time_to_face_the_music

Kate_fixing_it wrote: »

Wow! Fantastic letter TTFTM - I won't be messing with you will see if mother will pick me up and let me use her printer to get a copy of this out ASAP.

I don't wish to disparage SC but the operator just seemed to dismiss me and try to get off the phone. Probably just a busy day and needing to get the next call.

Thanks everyone for your help and support,
Kate x

Full credit to National Debtline website, I just adapted it a bit to suit :T

There are some great template letters there if you ever need others:

https://www.nationaldebtline.org/EW/sampleletters/Pages/default.aspx

TTFTM x

Kate_fixing_it

Time_to_face_the_music wrote: »

Full credit to National Debtline website, I just adapted it a bit to suit :T

There are some great template letters there if you ever need others:

https://www.nationaldebtline.org/EW/sampleletters/Pages/default.aspx

TTFTM x

Massive thanks again TTFTM, that has been saved to favourites and will come in so useful (not just for me I'm certain!)

Kate x

Enough_Now

Evening all

I hope all is as well as can be reasonably expected in DMP world.

I just wanted to share a small achievement - one out of my nine creditors is now paid off. Statement received today with £0.00 balance. :j

I have another 18 months left of my DMP but this debt was helped along with a substantial PPI reclaim - well worth the price of a couple of stamps!

Finally I can see the light at the end of the tunnel

EN x