settlement on DMP?

beany2

Hi I am on a Payplan DMP and wonder if it would be breaking the rules with Payplan if I rang up the company one of my debts has been sold on to to see if I could reach a settlement figure..does anyone know if this will cause a problem with my Payplan agreement which was set up a couple of years ago through CAB. Thanks for any help offered with this question.

rising_from_the_ashes

You really shouldn't do it as because you're on a DMP your creditors have agreed to a lower payment than should be made and maybe frozen interest - each company will be getting a % dependent on what you owe ie owe company 1 £100 pay £10, owe company 2 £200 pay £20 etc

If you have money to be able to pay off then really this should be done through your DMP provider and on the same % basis - otherwise you are treating one creditor more favourably than another which can break the terms of the DMP

Saying that - I know a lot of people do it - someone with personal experience should hopefully be along with more advice

Deep_In_Debt

I was on a dmp with CCCS (now Stepchange) and I made F&F's along the way on my dmp. StepChange were happy with it. It meant that my remaining creditors were receiving more money each month once I'd cleared off the debt as I was still paying the same...so everyone happy! Like I say, Stepchange were cool with it and even sent me template letters to use and contacts to write to.

Payplan will probably not negotiate as a good deal as you could get. I'd just go ahead and do it and then let Payplan know and the money you are paying into your dmp will be redistributed amongst your remaining creditors. But, don't phone the creditor, keep it in writing. National Debtline website has some good template letters you can use. You will need to make sure that the offer is accepted in final settlement and that neither they, nor any associate or 3rd party will chase you for the remainder in the future and that your credit file is marked to show that the debt has been paid off. Start at 35% as an offer as DCA's buy debts for pennies in the £ so will probably make a massive profit at 35%, but expect a bit of to'ing and fro'ing though but worth it in the end if you are prepared to persevere.

Good luck.

Stewart_78

Just do it and tell payplan later. There are no rules here, despite what they tell you. Their plan is to get as much out of you as possible without having to resort to action that costs (court). If you can do a deal, just do it. Don't worry about payplan.

beany2

Thanks to all of you that sent me a reply, they were very helpful.

GibbsRule_No3

I'm with Payplan and offered F&F to my creditors. Three accepted, one did want more than I first offered but when Barclaycard declined to make any offer, I just used their share on the one that wanted more and it was accepted. After everything was settled I just asked Payplan to pay my (reduced) monthly money to Barclaycard as the other creditors had settled. Payplan did not say anything. I used the calculator on the National Debt Line website to see how much to offer pro rata. Good luck.