A few newbie questions regarding DPP

NorthernSoul1990

Good Morning,

This morning I finally realised I had to tackle my PDL debts, after months of going in a constant circle I decided to go on to the StepChange website (many thanks to the numerous links on here) and fill out there advice sheet.

It advised that I should start a DPP with themselves, what they have suggested I pay back monthly seems fine and leaves me with enough money to get through the month. I am just looking for a few questions to be answered before I send of all of the required information.

1) Is a DPP Scotland's equivalent of a DMP? Might sound like a stupid question but there is so many different terminologies.

2) I am due to have this months PDL payments come out on Friday, if I contact my bank, can they stop these coming out?

3) Is it worth emailing the companies to advise that I am setting up a plan?

4) Will these companies start harassing me, to be honest I don't mind phone calls to my mobile or letters. I just don't want them to contact my work.

5) If I find I have money left over at the end of each month, can I pay a bit more of the loans, or once I am in a DPP is that it as such?

Many thanks in advance for your help, hope I can become a regular user on the site.

National_Debtline

Hello there,

1) A DPP is similar. It's possible to have a DMP in Scotland too. A DPP is known as a 'Debt Arrangement Scheme'. It's far superior to a DMP as it can guarantee to freeze interest and charges and also it can prevent a creditor enforcing a court order against you - It is a 'diligence stopper'.

2) You can contact the bank to remove the 'continuous payment authority - which is the permission you give the lender to take payment via your debit card. You may need to do this in writing, we have a sample letter within our fact sheet, which you can find *here*.

3. I think this is a good idea, some may agree to hold action for a while whilst your plan is set up.

4. They should only contact you at work if you've given them permission to do so. You can write to a creditor and inform them that they are not allowed to call you at all - and that written communication is the only way that you wish to be contacted.

5. That's possible.

Best wishes - and welcome to the forum!

David @natdebtline

P.s. - Here's the Scottish version of our website, it has great fact sheets covering both DMPs and the DAS (and a world of other useful stuff too!): https://www.nationaldebtline.org/S/Pages/default.aspx

NorthernSoul1990

Good Morning,

Thank you very much for the quick and informative reply. Really appreciated.

National_Debtline

You're welcome.

Oh, by the way, there is no such thing as a stupid question on this forum - especially where debt's concerned!

David.

sourcrates

NorthernSoul1990 wrote: »

2) I am due to have this months PDL payments come out on Friday, if I contact my bank, can they stop these coming out?

You need to get on to your bank super pronto about this, because the PDL lenders WILL try to debt your account, however, I believe there only allowed to make two attempts now, and they cant take part payment amounts anymore either, but that may not stop them trying, as long as you have called your bank to cancel the constant payment authority's then your bank is duty bound to refund that money should they attempt to debt it, they may try again next month or next week though, they can be very slippery some of them.

crapfinanceskills

hi i am also in the process of setting up a DPP and am gathering all documents together to send off but have a question or two. Do you have to include all current lines of credit in the DAS or can you exclude one (ie catalogue or credit card) if you are able to manage the account. my main problem is that i have gotten into the payday loan cycle and have a couple of pretty major overdrafts and i am struggling to have money to live on.

Also it seems that i have been on the wrong tax code at work for the last year so have been trying to live on a wage that was 150 - 200 a month less than it should have been which is probably why im in this mess, well that and having to pay for road tax earlier this month.

coolcait

It's advisable to include all debts in a DPP - you're only protected from legal action by the creditors who are actually in the Programme.

Leave creditors out of the Programme, and they can still, legally, chase you for payment - up to and including petitioning for sequestration in certain circumstances.

NorthernSoul1990

Good Afternoon,

I have contacted all my PDL lenders (5 of ) and 2 have replied saying they shan't be taking money on Friday and are awaiting correspondence from StepChange. Not heard anything from the other three. Is it worth chasing them up?

I phoned RBS (my bank account) and they advised that they will monitor the account and make sure nothing is taken out on Friday from the PDL companies. So thank you for the above information, bit of a relief.

Now awaiting information from StepChange. Hopefully the DPP will be set up by the end of the week. Will keep you updated.

Again thank you very much for your help thus far. Very much appreciated.

NorthernSoul1990

Quick update on this, didn't have any money taken on my paydate.

Have spoken to all PDL companies who to be fair have been helpful, all freezing interest for 30 days whilst they corrospond with Step Change.

The only one I have a problem with is Mr Lender, they say if they don't receive a payment of at least 10% by Friday they will pass the debt on to a debt collector. I asked if they could freeze the account like others for 30 days but they declined.

Any advice?

NorthernSoul1990

After speaking with StepChange this afternoon, they advised to keep in contact, seeing if they would accept freezing the account. I am keen to avoid any door to door debt collectors, so think I might just pay the token 10% fee, just so the account is definitely on hold.

Powered_By_Pies

Hey Northern,

Stay right on RBS's chuff on Friday, and keep an eye on your account like a hawk. I had this issue at the end of April as I'd phoned my bank (Lloyds) to cancel CPA's on my accounts, and although they said they had, I checked my account on payday and 2 had slipped through the net. One was only about 30 quid and I wasn't too fussed, but the other was for quite a bit more. I got on the phone to them and to be fair, they admitted the previous assistant had omitted two from the list and reversed the larger payment without any questions. It was back in my account the next day.

It might also be worth considering opening a new account and closing your current one, transferring any direct debits and wage payment details over. I think I'm going to do this myself in the next few days, that way I won't need to worry about anyone trying to force payments from my account come payday except for my DMP, my second to last car finance payment and my mobile phone.