DMP & Mutual Support Thread - Part 10

Brogden

Puzzcat wrote: »

Well yesterday when I got home there was a lovely letter from B.card telling me my arrangement was coming to an end and as they haven't heard anything from SC assume I am now rich and can go back to normal payments.. well not quite those words but you get the picture...


So today I rang SC and advised they need to send BC a letter stating I'm still poor which they will do. I then decided I would call BC as well to ensure they knew I wasn't ignoring them... well..


How many security questions.. how can I remember the postcode of my previous address?? I moved 13 years ago.. I have trouble remembering my name some days...!!! Still got through to a lovely lady who said I was very entertaining and I told her I was still poor and she said she would pray for me in church on sunday to become rich.. I got her to note my call on the system so they can't say I've ignored them...


Then I decided to ask about the lack of a default, just lots of AP's on credit file.. unfortunately BC have a different idea than the rest of us and the lady having spoken to someone in the know still came back to me and said an AP marker is less damaging than a default despite my attempts to explain it to her.. ho hum.. will send them a complaint letter about this after I have the new arrangement set up... All in all a very pleasant call..

Hi Puzz,

The 'arrangement to pay' is irritating but to my knowledge (and in my experience) that doesn't stop the account from defaulting. I know we want a default at the earliest time and start the six year clock ticking. The less you pay the earlier the account will default.

Practice can vary but let's say its the bank's rules that a default is issued after the account is six months in arrears ie. you have paid nothing for 6 months........if you pay half the minimum payment it will default in 12 months......if you pay a quarter the minimum payment it will default in 8 months. The less you pay the sooner it happens!!!! Its part of the reason I am 'self-managed.' That's not to say everything goes to plan

Brogden.

blisteringblue

Trouble is its being caught between a rock and a hard place. Our largest creditor is MBNA with almost 30% of the total debt. However they have been the best, they have said as my payment schedule will have it clear in under 5 years they will freeze interest until then. They will not default me as long as I keep up the payments.

So do you rock the boat and risk them getting !!!!!y just for the sake of getting credit earlier. Personally I don't think so. That's my biggest creditor I don't have to worry about until the end of the DMP, but they won't default me.

Personally it's not an issue, stops me running up debts at the end anyway.

FuzzyDF

Hmmm.....three months into my DMP and I seem to have over budgeted in what I can afford to pay SC. Phoned them and explained that I may have been over keen when I first filled in my budget form thinking that I could survive on £20 come the end of the month. I'm only reducing my payment by about £40 but the SC lady wasn't that helpful which I'm very surprised about as they have literally saved my life previously.

For any of you other lovely peeps on here did you get a lot of grief from your creditors after making a reduction?

I feel quite guilty about having had to reduce my payment. Just wonder if the creditor beasties are going to get upset?

Brogden

blisteringblue wrote: »

Trouble is its being caught between a rock and a hard place. Our largest creditor is MBNA with almost 30% of the total debt. However they have been the best, they have said as my payment schedule will have it clear in under 5 years they will freeze interest until then. They will not default me as long as I keep up the payments.

So do you rock the boat and risk them getting !!!!!y just for the sake of getting credit earlier. Personally I don't think so. That's my biggest creditor I don't have to worry about until the end of the DMP, but they won't default me.

Personally it's not an issue, stops me running up debts at the end anyway.

We have MBNA in the 'portfolio' too! If they aren't going to default you then there's little concern except those 'arrangement to pay' markers may be there.

As I cast my mind back MBNA were initially very patient but I was in a somewhat chaotic state at the time and they gave up on me, defaulted and then (thankfully) sold the debt. They only defaulted though once the aggregate total of my missed payments exceeded the amount of X-months' number of minimum payments.

If I had had my head together I could have avoided the default but in all honesty I believe its best the way it is

All the best,

Brogden.

Monkeyballs

Hi Fuzz,

My payments have gone from £500 to £200 (with stops in between) and have recently discussed token payments and possibly a DRO and every time SC have been great and at all times saying that my budget has to be realistic but fair.

Your creditors will be fine, you might get a couple of letters but they'll be to confirm the reduced payment.

Sadly not all ladies are as lovely as my DMP ladies (or as fit I bet! :money:).

MB of G x

Monkeyballs

I for one find it really annoying that AP's are seen as a negative :mad:

I can see the argument that they aren't as bad as a default 100% but creditors don't see them as a positive and while nobody on here I imagine will want credit after their DMP it will cause problems for that one big thing in life which sadly relies on credit (or a lottery win) which is buying a house...

I tried to get Barclaycard to remove the AP's that they'd added to my file and when they rejected my complaint it went to the FOS and they frustratingly rejected on the grounds that my payments will be dropping soon (or stopping if I wind up with a DRO) and they'll be defaulting soon enough anyway

Ridiculous when it shows that were trying to repay our debts as opposed to just scarpering! Grrr...

MB of G x

Puzzcat

Brogden wrote: »

Hi Puzz,

The 'arrangement to pay' is irritating but to my knowledge (and in my experience) that doesn't stop the account from defaulting. I know we want a default at the earliest time and start the six year clock ticking. The less you pay the earlier the account will default.

Practice can vary but let's say its the bank's rules that a default is issued after the account is six months in arrears ie. you have paid nothing for 6 months........if you pay half the minimum payment it will default in 12 months......if you pay a quarter the minimum payment it will default in 8 months. The less you pay the sooner it happens!!!! Its part of the reason I am 'self-managed.' That's not to say everything goes to plan

Brogden.

Hi Brogden, I think bc are just renowned for being a bit difficult with defaults, there are lots of threads about ap markers and quite,a few directed at bc. I'm not to bothered but will have a go at some point!!
Puzz.x

FuzzyDF

Monkeyballs wrote: »

Hi Fuzz,

My payments have gone from £500 to £200 (with stops in between) and have recently discussed token payments and possibly a DRO and every time SC have been great and at all times saying that my budget has to be realistic but fair.

Your creditors will be fine, you might get a couple of letters but they'll be to confirm the reduced payment.

Sadly not all ladies are as lovely as my DMP ladies (or as fit I bet! :money:).

MB of G x

Pity it wasn't a gent on the phone, I might have been able to woo him......not.

Maybe she was just having an off day. It just sounded as if she couldn't believe that the end of the month is a bit of a horror story at the moment, never mind onwards and upwards.

Glad you're back MB x

Brogden

Puzzcat wrote: »

Hi Brogden, I think bc are just renowned for being a bit difficult with defaults, there are lots of threads about ap markers and quite,a few directed at bc. I'm not to bothered but will have a go at some point!!
Puzz.x

Hi Puzz,

I was Mr. Two-Barclaycards I paid them both off when I was rich......I never went through the hard times with them!! Referring to what you said about Barclays being difficult......yes, yes and yes again - I had a current account too. Isn't it a pity they've just been fined £38,000,000.......I wanted to put all the noughts in :rotfl:!!!!!!

Brogden.

Puzzcat

blisteringblue wrote: »

Trouble is its being caught between a rock and a hard place. Our largest creditor is MBNA with almost 30% of the total debt. However they have been the best, they have said as my payment schedule will have it clear in under 5 years they will freeze interest until then. They will not default me as long as I keep up the payments.

So do you rock the boat and risk them getting !!!!!y just for the sake of getting credit earlier. Personally I don't think so. That's my biggest creditor I don't have to worry about until the end of the DMP, but they won't default me.

Personally it's not an issue, stops me running up debts at the end anyway.

Hi BB,


Defo don't want credit, but will still have a mortgage to sort for a few years after dmp is done and would like to hope I can get a decent rate..!!!


Puzz.x