DMP & Mutual Support Thread - Part 10

james_joyce

Hi All

Two of my creditors have asked me to provide evidence of my expenditure. My problem is some items in my budget are based on what I should be spending, i.e. I have been underspending recently to try to survive!

Is the budget meant to reflect what you have spent in the past rather than a realistic estimate of what you should be spending?

What happens if I just don't provide the information? Is the only consequence going to be I default sooner?

Regards
James

dad2one

james_joyce are you working through a DMP provider?

Only I'm surprised to hear of that request if you are. Speak to the DMP people about it. Are they specific on what expenditure they want to see?

james_joyce

dad2one wrote: »

james_joyce are you working through a DMP provider?

No, self-managed. I've already sent my income and expenditure statements, which my larger creditors have already accepted without needing further info.

james_joyce

dad2one wrote: »

james_joyce are you working through a DMP provider?

Only I'm surprised to hear of that request if you are. Speak to the DMP people about it. Are they specific on what expenditure they want to see?

Sorry I replied to the first draft of your post!

So yes I am self managed. One creditor wants bank statements and payslips to cover at least one of the past three months. I have just checked the other creditor's letter and they want less info than that.

james_joyce

I'll just send them my info and see what happens!

dad2one

Aah. I guess one of things with StepChange is that they (and thus you) are trusted with the statement of affairs from the outset, so long as it is reasonable.

If it's a smaller creditor, I'd consider them pretty cheeky.

Well, payslips are not a problem or that unusual to ask to see. Bank statements though....

tell them you'll send the next one, because you don't normally keep them, and spend up on it?

System

Puzzcat wrote: »

Hi ploppy,
No that's quite normal. Creditors like different length reviews some 6 months and some annually. Stepchange will do a review with you once a year and your review date will be on your sc online page. The creditor may write to you when your review with them is due and you can then ask sc to send them your current I & E, after 6 months it probably won't have changed but after your annual sc review it may have done. Unfortunately although they do freeze interest and I believe once defaulted it stays frozen some will not default and can start interest again.. (ie. BC..)


This is another reason why you need to make sure you check your creditor statements every month and don't rely on the balances on the sc website.


Hope you feel better soon, and don't worry it will all sort itself out.


Puzz. x

Ok, so I think I am either having a blonde moment....or I am just suffering with fuzzy brain due to being ill. When everybody talks of "default"...what exactly does that mean? We had a letter from BC to say they had added a £12 charge as we had defaulted & not paid the minimum payment last month, (even though we had written and told them about DMP/SC and paid £1 token payment, but that account is still having interest added.

So when you say once "defaulted" the interest normally stays frozen, can you explain please......:o ....sorry, I am really stupid today.

dad2one

Re - James_Joyce There's not a lot that can be gleaned from a bank statement anyway, except bill direct debits. I reckon it's more of an integrity test, like they may well not examine it, but just log in their file that you sent one.

dad2one

ploppy57 - Nothing's hard and fast in banking procedure and terminology. (well, some things are, but people try to keep it under wraps).

Generally, yes a Default in legal speak follows an Arrears. It means in the way we often talk about it once we receive an arrears notice, we then receive a default notice, both legal papers and governed by law etc. The default notice effectively means the original loan / credit agreement is over and now the creditor just wants their money back. With that, usually, all interest and extra charges stop, because it is not a loan anymore.

The way BC (notorious I've heard for being a pain sorry) use this word in their letter to you does not sound the same. They are just charging you for missing payments.

You can write and ask them to stop doing this, and that the payment plan you have set up is all you can afford. Even suggest then if you want, that they default notice the agreement.

dad2one

Addition - if there's been not much time since setting your DMP up, this might just be a short term reaction (usually initiated by a computer) before they do notice you with arrears and then default.

Bottom line - don't worry about it yet. See what their next communication is.