paying extra to one creditor

bugaluggs78

one creditor is refusing my dmp offer and is pursuing a ccj and charging order unless I agree to pay them a set amount over three years.
It works out at an extra £85 per month which, if I cut back on a few things I could manage.

I know it isn't fair on other creditors, it feels wrong but I am so scared of a charging order.

Payplan don't seem to be interested in what's happening, in fact all they seem to be interested in is pushing their other products onto me. :mad:

I am interested in others experiences in this situation.

The_Boss

So they want to increase your dmp monthly payment or is this something else.

Forget what is fair to the other creditors - you need to focus on this. It could be a negotiating point. What was the original payment, the payment offered by you and the payment they want?

michael1983l

If you start paying more pro rata to one creditor, don't be suprised when the rest come to you and ask for more money too. If you are going to have a DMP you have to pay every creditor equally pro rata, if you don't and the creditors find out, they will throw your DMP out.

The_Boss

michael1983l wrote: »

If you start paying more pro rata to one creditor, don't be suprised when the rest come to you and ask for more money too. If you are going to have a DMP you have to pay every creditor equally pro rata, if you don't and the creditors find out, they will throw your DMP out.

Are DMPs supposed to pay equally rather than as a proportion of the debt to the respective lender? Seems odd that you'd pay the same to a company you owe (for example) £2k to when you owe another (for example) £7k.

fermi

Pro rata means paying in proportion to the amount owed.

michael1983l

The_Boss wrote: »

Are DMPs supposed to pay equally rather than as a proportion of the debt to the respective lender? Seems odd that you'd pay the same to a company you owe (for example) £2k to when you owe another (for example) £7k.

Paying them pro rata means that you pay a percentage of your available funds in proportion to that of the total percentage of debt when compared to the total outstanding debt.

i.e.

If you owe

Creditor 1 £7,000
Creditor 2 £2,000
Creditor 3 £1,000

And have £100/month available you will pay

Creditor 1 £70/month
Creditor 2 £20/month
Creditor 3 £10/month

sickasachip13

Hi,
You pay a proportion of your debt, but this is also dictated by the type of debt - for example, I owed about £900 on a personal loan, this payment was almost as much as was a payment to a £5k CC debt.
Anyhow, back to the OP's question - I think you would be on very dodgy ground here. Particularly making this a regular arrangement. If you can afford to pay that extra, you could put it into your DMP to be distributed across the debts?
It may be that this creditor is just trying it on, to see if you really have got more money than you've said....don't waver otherwise they will continue in the same vein.
Who is the creditor anyway?
SAAC

The_Boss

fermi wrote: »

Pro rata means paying in proportion to the amount owed.

I know. But we don't know what all of the payments are except the OP was concerned at one lender getting more than the others without referencing whether the pro rata amount is different.

bugaluggs78

currently paying £35 via dmp, they want £120, so an extra £85 a month paid separately for three years to stop court action.

If I don't agree then they will go for ccj, charging order and the debt will increase considerably.

They said they won't go for an order of sale but they could legally do so.

I am trying to protect my home and family.

the creditor is black horse and the only one who hasn't accepted, we have been on a dmp for a few years now, they are a nightmare!

I can't really afford to increase, it will come out of my housekeeping.

fermi

If the court order you to pay more, then that is what you have to do. In absence of a court order, you pay pro rata under the DMP.

michael1983l

I would say they are trying it on. If you are already paying them via a DMP, then they shouldn't really take you to court as you have made an arrangement to pay and are paying them regularly. The court would likely say that you are being reasonable, unless you lied in your SOA when you set the DMP up.