DMP & Mutual Support Thread - Part 10

neiljmuk

Pickle29 wrote: »

Hi
Thanks for the advice, put my mind at rest for a while - will let you know when I hear something. Fingers crossed x

Slightly off topic but if you change suppliers don't you have to pay up what you owe to the existing energy company? If so, it's stupid that these switch schemes are always late winter when accounts will not be in credit as opposed to Autumn when it's basically like a savings account!

neiljmuk

Puzzcat wrote: »

Hi,
Ap's stay on file for 6 years after the debt is settled so not sure how a partial settlement would work. I would also have thought the accounts would be closed by the creditor at the settled point as I can't see them wanting to lend more money to those of us who have defaulted on payments but I could be wrong. I just assumed that all the creditors I currently owe money to will want to see the back of me when my dmp finishes.


I don't have a debt with Lloyds.. everyone else but not them so not sure what they do with regards to defaults.


Puzz. x

Yeah, it's slightly odd. I know that FF would precede 6 years of credit file nastiness and account closure, but with folk saying payments to BC show settled again as they are being made (once you hit the minimum) it sounds like as long as they made a bit on the 3% or not lost anything with 0% they are happy to keep your business. Some logic in that you've carried on paying. You are a pain in the !!! but they know they will make money from you if you are stupid enough to use the card again. Indeed my 12 month 3% interest arrangement states, card not usable for duration of plan, implying it will be once a certain level of payment is attained. That lends itself to another problem in that you will eventually be getting 30% interest again when the SC payments catch up against the dwindling debt. Then there is the person on here who's APs disappeared. In my scenario I'd still expect them to linger for 3yrs from payments returning to settled.

As you can see, I'm just trying to understand how those wierdos at Barclaycard tick. With everyone else it's get defaulted and get out! Simpler.

I think I will hoard money as opposed to increase SC payments. More power to me to deal with the idiot lenders even if it means going self managed. If I left the good creditors getting payments of the same amount as they got with SC I'm sure they would not notice me playing silly b*ggers with the bad uns be it stopping payments or dropping to token payments to break them, or doing !!!!!!....

Long way off but I'm knowledge hoarding. I'll know how to go self managed even if I never have to do it! :cool:

spot3

my Barclaycard account also shows a credit limit of £2000 on my credit report, when the other card and overdrafts say £0 so I don't know if my account is active or not. I need to phone them and find out. I'll let you know

melysion

So - have a little update. Called stepchange last night. Had a really decent but straight talking guy help me out. He suggested going into a branch to get an basic account opened straight away so I could get everything moved before the 1st of March, but the two near to my workplace (nationwide and natwest) only do basic accounts online apparently and I work full time with an hour for lunch. I had an internet chat with natwest but had to call nationwide. The womans tone once I said I wanted a basic bank account was awful I'm afriad. I hate judgemental people who think that they suddenly have the right to feel superior. Anyway. So tonight I applied for a nationwide account online and am just awaiting the paperwork. Seeing as there is no way my new account will be ready before my next loan payment (by far my biggest debt) is due out, the plan is to keep paying as usual (thankfully I can do this in March, its from April I can't) and then ask for the DMP to start in May. In the meantime I'll put a stop to my unsecured credit payments from April, get everything else pulled over to my new account and actually start my DMP budget which means I'll have a £380 emergency fund in place for May. Does this sound like a sensible plan? Thankfully my salary is paid on the 25th of the month so even if I cant get my salary paid in my new bank account in time I can transfer all my money before the loan is due out on the 1st of April. It might just be possible that I'm due a repayment holiday from my loan in April anyway which would help but we will see. I could, in theory, just pay the big loan and not the credit cards in March to increase the emergency fund a bit but was told last night by stepchange that the credit card companies would consider that preferential treatment to my third creditor. Anyone heard of this before?

May seems a while away to start the DMP but the more I think about it, the more I realise I have to take this slowly for my own mental state (I have bipolar and generalised anxiety disorder). I don't want to not start paying my Lloyds loan when I'm still with them - and thankfully I still have that option this coming month - cant risk them freezing my account or taking all my money. I have a mortgage and all manner of bills (and my cat to feed) that come up throughout the month.I'm guessing its completely up to me when I start the DMP. All feedback appreciated.

Have to say that my anxiety levels have dropped like a stone now I have a more manageable plan of action in place. It will be such a relief in the end I think to know I am just getting rid of this bloody loan which has been a milestone round my neck for ages.

Turn out by the way, that my debt mountain wasn't quite as bad as I feared. Its just under £20K. £14K for the Lloyds loan (used to be £25K - yikes), almost £4K for the Barclaycard and the rest is the MBNA card. It will take 4 years and 5 months to pay (all going well)

p.s. Not exactly a small update was it. lol

January2015

melysion wrote: »

So - have a little update. Called stepchange last night. Had a really decent but straight talking guy help me out. He suggested going into a branch to get an basic account opened straight away so I could get everything moved before the 1st of March, but the two near to my workplace (nationwide and natwest) only do basic accounts online apparently and I work full time with an hour for lunch. I had an internet chat with natwest but had to call nationwide. The womans tone once I said I wanted a basic bank account was awful I'm afriad. I hate judgemental people who think that they suddenly have the right to feel superior. Anyway. So tonight I applied for a nationwide account online and am just awaiting the paperwork. Seeing as there is no way my new account will be ready before my next loan payment (by far my biggest debt) is due out, the plan is to keep paying as usual (thankfully I can do this in March, its from April I can't) and then ask for the DMP to start in May. In the meantime I'll put a stop to my unsecured credit payments from April, get everything else pulled over to my new account and actually start my DMP budget which means I'll have a £380 emergency fund in place for May. Does this sound like a sensible plan? Thankfully my salary is paid on the 25th of the month so even if I cant get my salary paid in my new bank account in time I can transfer all my money before the loan is due out on the 1st of May. It might just be possible that I'm due a repayment holiday from my loan in April anyway which would help but we will see. I could, in theory, just pay the big loan and not the credit cards in March to increase the emergency fund a bit but was told last night by stepchange that the credit card companies would consider that preferential treatment to my third creditor. Anyone heard of this before?

May seems a while away to start paying things off, but the more I think about it, the more I realise I have to take this slowly for my own mental state (I have bipolar and generalised anxiety disorder). I don't want to not start paying my Lloyds loan when I'm still with them - and thankfully I still have that option this coming month - cant risk them freezing my account or taking all my money. I have a mortgage and all manner of bills (and my cat to feed) that come up throughout the month.I'm guessing its completely up to me when I start the DMP. All feedback appreciated.

p.s. Not exactly a small update was it. lol

Hi melysion

Glad things are progressing for you - not as quickly as you want but you will get there.

I think given your concerns about setting up a new account in time and loan payments coming out of your account you are right to delay the start of the DMP by one more month.

Don't worry about SC's comment about preferential treatment - just do not pay the credit cards. Use the funds to build up your emergency fund. The need for preferential treatment of creditors kicks in once SC start the DMP; until that point you are managing your finances to the best of your ability. I would make a token payment of £1 to each of the creditors for March and April.

I would contact each of your creditors at the last possible date before each payment is due and advise you are working with StepChange to manage your finances and StepChange will be in contact with them shortly. What this will do is kick in the 30 day no contact period and suspension of interest and charges (hence the reason for leaving it until the last possible day before payment for each creditor is due).

As you are planning on starting the DMP in May now you are likely to get calls in April (after the end of the 30 day no contact period for each creditor). However, just phone them on or before the 30 day period ends and advise that you are working with StepChange and they have now given you a reference number and will be writing to them shortly. Ask them to extend the no contact/interest free/no charges period - we didn't need to do this, but several of our creditors told us verbally that if, for any reason, the DMP wasn't set up in 30 days to just get back to them and let them know what was happening and they would extend it for a further period until they heard from SC. They obviously won't do this indefinitely, but I think by then you will be almost home and dry and ready for the DMP to start.

Don't forget you will need to make token payments of £1 again in April:beer:

melysion

January2015 wrote: »

Don't worry about SC's comment about preferential treatment - just do not pay the credit cards. Use the funds to build up your emergency fund. The need for preferential treatment of creditors kicks in once SC start the DMP; until that point you are managing your finances to the best of your ability. I would make a token payment of £1 to each of the creditors for March and April.

OK, I'll do that as that would add about £100 to my fund. Thank you

January2015

melysion wrote: »

OK, I'll do that as that would add about £100 to my fund. Thank you

Just remember - do not panic about the phone calls;)

They are just people, they will not be there when the phone is put down and they can't have what you don't have.

As I said to you on another thread, you are taking a path to deal with you debt and are not avoiding or running away from it. The call centre staff for credit card companies are really helpful as soon as you mention StepChange. They know this means you are seeking advice and support to sort your situation out.

Personally, I wouldn't wait for phone calls, I would phone them (but leave it to the last possible day before the payment is due). This means you are calling them on your terms and you are not worrying about when and if they are going to call you.

Good luck - keep us all posted with your progress. Think about starting a diary - I'll happily subscribe to follow and support you through the DMP journey. As I said we are only just starting our DMP journey but the difference in our lives just one month into the process (and it's not yet actually started) is amazing. We feel lighter, confident we can clear the debts, and feel positive about our future.

sourcrates

melysion wrote: »

OK, I'll do that as that would add about £100 to my fund. Thank you

Glad it's making more sense to you, and that you have slowed down a bit !!!
Creditors don't exercise there supposed rights of offset until way, way down the debt collection path, if ever, it certainly won't happen for missing one payment.

I found that buying a phone you can Barr numbers on really useful, you should never really talk to creditors on the phone, as this is there first weapon of choice, and can leave you more confused than ever, taking away that weapon, and dealing with them in writing only, on your own terms, is a much better option.

January2015

I've been reading on these forums about credit card accounts pre 2007 and CCAing the card companies (I think that was the term).

I think one of our accounts is way before 2007 and the balance is about £12k. As we are entering a DMP is there anything to be gained from going down the CCA route?

sourcrates

January2015 wrote: »

I've been reading on these forums about credit card accounts pre 2007 and CCAing the card companies (I think that was the term).

I think one of our accounts is way before 2007 and the balance is about £12k. As we are entering a DMP is there anything to be gained from going down the CCA route?

There is everything to be gained.

On accounts opened before April 2007, there were many errors on credit agreements, prescribed terms missing, or other information that was legally required, was also missing.
Also a creditor must provide a copy of the original agreement, or be able to provide proof it existed, after the above date, the law was changed so that a creditor could provide a reconstituted copy.

There is a good chance they will not still hold the correct paperwork, thus rendering the account potentially unenforceable in court.
Even for recent accounts a creditor must provide proof the debt existed, otherwise they can't obtain a judgement in court.

In a nutshell, if they can't produce the right paper work, they can't get judgement against you, the debt does not disappear, just makes it unenforceable.
You can then use this to your advantage, either offer a really low full and final, there choice would be to take it or get nothing !! Or you could choose to not pay it at all, horror of horrors I hear you cry, well not so.

Moral arguments aside, and based just on the law, the consumer credit act works both ways, it provides protection for the borrower and the lender, if either one chooses not to comply with the terms of the agreement, then that's just tough.

If the creditor can't stick to the terms, why should you, you see the CCA says that if a creditor can't produce the correct paperwork, then the account remains unenforceable until such time as they do, however long that might be .