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How do Halifax react to DMP?

I have my phone call with CCCS on Monday.
Although I have not missed any payments (yet) to mortgage (Abbey) or Halifax CC, I have a debt with the latter for 11k which I am struggling to meet.
Just wondering if anyone has any experience wth them, do they freeze the interest? And do they agree to reduced payments? Also as soon as you go down the route of CCCS and a DMP, is that when your credit rating gets marred?
I am trying to sell the house to address this debt but if my credit rating gets bad I might not be allowed another mortgage? Catch 22?
Many thanks in anticipation.

Comments

  • Is there anyone around who might be able to answer this for me.
    Thanks
  • Leixlip1
    Leixlip1 Posts: 372 Forumite
    I'm doing a self-managed DMP and Halifax have refused to accept reduced payments/freeze interest unless they receice the offer via Payplan, CCCs etc - they are the only one of my creditors to act in this way - I had to go down the official complaint procedure to even get them to say this.
    At the moment I'm tempted to tell them I will be with-holding payments I've been making - put them in a seperate account and invite them to take me to court and then we can see who is acting unreasonably.
    Barclaycard/Mercers - I had do do the same to them plus point out that Barclays accepted my offer of reduced payment/freeze interest by return of post on a loan I have with them and how would it look to the court if Barclaycard refused this - they accepted the logic numerous letters later.
    Good luck.
  • Crown
    Crown Posts: 1,377 Forumite
    Morning,

    Im afraid to say like Leixlip I had nothing but trouble with the Halifax and I know a more than a few people on here that also have had problems with getting them to even acknowlege the paperwork of the DMP.

    I Too am doing my own DMP as after priority outgoings there is nothing left for the CCCS to offer. The CCCS advised me to make token payments of £1.00 and the Halifax refused this saying that they needed to see the paperwork.

    I sent the paperwork at least 5-6 times via the post and sent faxes twice. They claim to not have received one of them! I contacted there complaints dept as I was still being charged interest and had letters saying I had not acknowledged this debt!

    Eventually they froze the interest and refunded the charges that had been put on my account. I am now paying £1 a month on each account I hold with them although it took 4 months of hassle and stress too get to this point.

    Although they are a complete pain to deal with do not be put off as you do have rights and can only afford what you can. I found there favourite tactic to be threatening phone calls what got to a point I was receiving 6-8 a day.

    If this happens then please post again as there a re some template letters that can be sent to stop ALL calls from them and they will need to contact you via post.

    Sorry for the long reply but after 4 months of action with them it still makes my blood boil
    Official DFW Nerd Club - Member no. 297 - Proud To Be Dealing With My Debts :D
  • amani_2
    amani_2 Posts: 604 Forumite
    HI Scopiolady,

    I have a CC, LOAN and OD with Halifax in total about 10k. Im on a DMP with CCCs, 2 1/2 months into it. They ignored all letters, and phoned us up to 8 times a day. so i bombarded them with letters and faxs. the last time i spoke to them i asked them not to call late at night due to having 2 small children in bed and they never called again. about 2 days ago i received a letter from them saying they would except my reduced payments and suspend interest on the CC for 12 months. still not heard anything about the loan or OD.

    hope this helps


    AMANI XXX
  • Crown
    Crown Posts: 1,377 Forumite
    Hi just had another thought.

    One thing that they did tell me was that you need to send seperate paperwork for each account as different people deal with it.

    I also have 3 accounts (Loan, O/D, and Credit card) totalling £22k. My arrangemnt now is now "long term". What this means I dont know as they havent been able to clarify but paying just £1 a month means that I may be debt free sometime around 2098 :rotfl:
    Official DFW Nerd Club - Member no. 297 - Proud To Be Dealing With My Debts :D
  • Gosh, thank you for your replies to date.
    They sound a nightmare. Luckily I never give out my phone number on any applications and am ex directory (and have caller display!) so hopefully they won't catch me out in that way.
    Any thoughts on credit ratings............or is that totally out of the wndow as soon as I go through a DMP?
    Thanks for taking the time to reply, its so nice to know there are other people out there who are/have been in the same situation. Its makes me feel not quite so lonely!
  • Crown
    Crown Posts: 1,377 Forumite
    Your credit rating will be damaged as soon as you miss a payment. Once you let them know that you will be making reduced payments they will send you a defualt notice threating all sorts if you do not pay up within 28 days.

    T|hey are required by law to send you a default notice and its nothing to worry about. As long as you make token payments they are unlikely to take much action apart from selling the debt onto a Debt Collection Agency after 3 months. Again this is nothing to panic about as the DCA are easily to deal with than the Halifax. (only one of my O/D was sold onto them)

    Your credit File will be damaged but remember that it only stays on your file for 6 years. It is not like doing an IVA or BR that stays for good.

    Also if you are serious about wanting to get out of debt then surely you will not need credit within 6 years? The only problem I have had is my mortgage rate is high but I never want to use a loan or a credit card again!
    Official DFW Nerd Club - Member no. 297 - Proud To Be Dealing With My Debts :D
  • 1Sandra2
    1Sandra2 Posts: 42 Forumite
    Hi
    Am new to the site, and just don't understand some of the abbreviations! Can you tell me what a DMP is please, and a CCCS?

    Thank you!! :confused:
    :hello:
    There should be more to life...
  • Crown
    Crown Posts: 1,377 Forumite
    Hi Sandra, welcome to the board :T

    DMP = Debt Managent Plan
    CCCS Consumer Credit Counselling Service http://www.cccs.co.uk

    If you need some advice start a new thread ;)
    Official DFW Nerd Club - Member no. 297 - Proud To Be Dealing With My Debts :D
  • Conor_3
    Conor_3 Posts: 6,944 Forumite
    I am trying to sell the house to address this debt but if my credit rating gets bad I might not be allowed another mortgage? Catch 22?


    Not really. Houses are stupidly overpriced at the moment and IMO unless you're earning over £80k a year you'd have to be a blithering idiot to buy, especially with the current round of interest rate hikes. People on 4/5/6 times income multiplier mortgages are in real trouble at the moment.

    I can't get what this obsession is for being on the property ladder is. People are prepared to live on £50 a week as long as they can buy a house even though at that little to live on, they may need two jobs. It's utter madness.

    30 - 40 years ago, the majority of the population rented. In most countries, people rent rather than buy.

    No shame in renting. Been looking at houses for the inlaws who are banking. 4 bed house with garage in a nice neighbourhood for £550 a month to rent compared with, after the latest interest rate hike, £600 a month mortgage repayments on a pokey 3 bed ex council house on a local council sink estate that has CCTV, it's so bad. Non brainer really, especially when you can get the rent paid if you become unemployed for whatever reason.
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