Dmp Mutal Support Thread (Part Two)

DeeDee99_2

I hope you can help, Fermi kindly pointed me over towards this thread.

I'm currently dealing with some debts using CCCS, a couple are through the people I originally owed with and another was passed to a debt colleciton agency (NDR)

Now Ive been paying my debts through CCCS since November last year and upon guidance from friends, Ive ignored any letters demanding the full cash amount up til now due to being in a DMP.

Thing is today I received a very threatening letter from them which states that if I do not pay my full arrears by a certain date they will register a default notice against me (which I cant see they can do because I have been paying them monthly to an amount they agreed with CCCS), and that my credit rating will be damaged and it could be taken to court.

Help, I dont know what to do, have any of you dealt with the same thing?

WorriedMart

Hi Dee,

I think Defaults are pretty common whilst on a DMP.. Normally you are defaulted before being passed to a DCA.. They are normally more likely to accept the DMP and freeze Interest than your Creditor.

I expect your credit rating is already on the trashed side by being on a DMP and not meeting the contracts minimum payments.

Its unlikely Court Action will be taken against you as the judge will see you have advice from CCCS and are on a DMP and that you can not pay the creditor more than you already are.. so really its a waste of the creditors time and money.

Im only just starting out with my DMP and haven't got anything like that yet, but I can imagine its pretty frighting to
receive letters like that (They try to scare you in to paying more)

All the advice i've given is through my research on these boards, not my experience

Dont worry, just keep paying the CCCS DMP like you have done

sira_2

Hi, can anyone offer me any advise please? I am currently on a DMP with CCCS about to go into my third month. Our debts are an extortionate £43,000 & we are paying a pitiful £92pm. Some creditors have stopped interest one is threatenting a Charging Order & i dare say more will follow as even though theyve stopped interested theyre not happy with the small payments and who can blame them? As it stands it will take 38yrs to pay everything off & i am really struggling this month on the plan. I worry about every little penny we spend as there just never seems enough & worst of all xmas is coming. Keep thinking if im like this now how an earth am i going to cope for 39yrs?!! So hubby & i have decided that the way forward may be selling our house as there is some equity left. Just had it valued at around £190,000 to pay off mortgage will be about £135,000 leaving approx £50,000 left after legal & estate agent costs. So now my dillema is what do we do next, do we 1. Pay off our debts (in hope they will take a reduced final settlement figure) & rent & start over again knowing we may never get back on the property ladder or 2. Plough everything back into a new mortgage & downsize the property then stay on DMP paying in more from what we save in mortgage payments or 3. Go for the same size mortgage still downsize property then pay off the more demanding creditors & keep going with DMP or maybe even try for an IVA. The problem with that is will i get a mortgage, havent any CCJ's, not sure of defaults but have been issued notices from a couple of creditors, & will i get the same amount of mortgage with a downsized property? Our current mortgagees said we can transfer the mortgage & would be happy to consider us as we havent missed any payments but a new application would have to be made so i take it a credit search will be done, & subject to how much the new property is in comparrison to how much we want to borrow. Any suggestions or comments would be greatly received. Many thanks.

WorriedMart

Hmm I would lean towards using equity to pay off all of my debts, and start again.. but I have rented for years and cant ever see me not renting lol

In your situation maybe downsizing and upping your monthly DMP payments would be an option so you still have a foot on the ladder so to speak Im sure you could get another mortgage.. not sure on the interest rates though as the normal high street lenders will probably not like the fact you have an adverse credit history.. dunno.

I see what you mean about £93 for 43k of debt.. 39 years is a long time if your struggling.

shredder

got my cccs plan through today starts 1st October.had a real pushy guy on the phone from one of the banks asking why direct debit had been cancelled and i should pay some money.thanks to great advice from here i handled the call real well.....just waiting for the other calls to start

DeeDee99_2

WorriedMart wrote: »

Hi Dee,

I think Defaults are pretty common whilst on a DMP.. Normally you are defaulted before being passed to a DCA.. They are normally more likely to accept the DMP and freeze Interest than your Creditor.

I expect your credit rating is already on the trashed side by being on a DMP and not meeting the contracts minimum payments.

Its unlikely Court Action will be taken against you as the judge will see you have advice from CCCS and are on a DMP and that you can not pay the creditor more than you already are.. so really its a waste of the creditors time and money.

Im only just starting out with my DMP and haven't got anything like that yet, but I can imagine its pretty frighting to
receive letters like that (They try to scare you in to paying more)

All the advice i've given is through my research on these boards, not my experience

Dont worry, just keep paying the CCCS DMP like you have done

Thanks Mart but do you think I should write to them and explain my situation? They already know I'm in a DMP as thats where the payments are coming from, straight from CCCS.

WorriedMart

I would personally ignore it Dee. You can write to them stating that your are on a DMP with CCCS and give them your ref number but like you said they already know that anyway.

If they default you, thats nothing to much to worry about.. I think they stay on your credit file for 6 years after the initial default date.

I highly doubt it will go to court.

Gemmzie

DeeDee99 wrote: »

I hope you can help, Fermi kindly pointed me over towards this thread.

I'm currently dealing with some debts using CCCS, a couple are through the people I originally owed with and another was passed to a debt colleciton agency (NDR)

Now Ive been paying my debts through CCCS since November last year and upon guidance from friends, Ive ignored any letters demanding the full cash amount up til now due to being in a DMP.

Thing is today I received a very threatening letter from them which states that if I do not pay my full arrears by a certain date they will register a default notice against me (which I cant see they can do because I have been paying them monthly to an amount they agreed with CCCS), and that my credit rating will be damaged and it could be taken to court.

Help, I dont know what to do, have any of you dealt with the same thing?

Hi DeeDee, yes they can default you because you're not paying the full amount which is agreed when you take out the credit.

A default doesn't mean you go to court usually, you just get a nice letter saying they've defaulted you which sticks on your credit rating for six years.

Pretty standard practise on a DMP, nothing to worry about, it's a scare tactic.

rayday2

Gems is spot on one of my companies gave me a default notice every day for a week, some companies took over 6 months then issued one. Usually I found personally and this is not the rule that once defaults happened then they actually bowed down and accepted payments and froze interest.

Not saying that this is what they should do, but it was a pattern I observed with my companies - most of mine are now with DCA too which is a plus sign to me they are much more willing to accept lower payments as they buy the debts for less.

newlywed

out of 4 creditors, I only got one default. They defaulted me but didn't pass to DCA and haven't pursued it any further. In fact they have now finally stopped interest and charges on the account.