DMP & Mutual Support Thread - Part 10

Sazzie23

Scaredofdebt wrote: »

That's really good news January. Unfortunately for us they have rejected our Dmp, we have 2 credit cards of £7000 and £4000. Just not sure why they have rejected. X

Hi Scared,

I know,it's really frightening when the say they are 'rejecting' your DMP offer, but don't panic (easy for me to say), don't worry (I compete for worrier of the year) and relax (you'll see by the time of day I write this that I'm good at that!), but try to do as I say and not as I do and KEEP CALM:D

Are you with SC? Have you contacted them? The usual SC advice is to ignore the rejection and keep paying the budgeted DMP amount, eventually they will get with the programme. Don't try to keep,paying them outside the DMP as you'll land yourself in financial problems as well as risking putting the rest of the DMP,in jeopardy.

As Sourcrates says, what can they do really? The 2 worst things that could happen are a CCJ - I've think I've heard of this happening once in the 2 years I've been on the thread, and a charge order on the house which just means IF you sell they have to have their money and again I've only heard of that once in the last 2 years. In the very unlikely event either of these happens, so what? Credit rating will already be trashed by the DMP, court won't make you pay any more, & they don't make you sell your house.

Helifax are not going to come knocking on your door asking for the extra money, I suspect that they WILL try to charge you interest and that is the reason they re saying they 'reject' your DMP. So, get yourself prepared with the don't charge me interest letters (templates were a couple of pages back), and don't think 'OMG' think 'what the heck' you may wish to replace heck with something suitable (Scuse language folks:o).

GENERAL,REMINDER

Defaults are good, DcA are good, default letters are often sent automatically and may not mean you've had an actual default. It will show on your credit file (Noddle is free to check) when you are actually defaulted. For some reason default letters often arrive in a Saturday so I though I'd post that now.

Happy times everyone, keep smiling, it's going to get better.m:T

Sazzie23

tequilabird wrote: »

I'm getting myself in a right pickle here and wondered if anyone could help me.

I've got credit card debts with Halifax, Nationwide, Barclaycard, Creation, MBNA and M&S. My OD is with Santander. I thought I'd been clever and moved all my DDs to my Lloyds current account. However, I now know that Halifax are part of the Lloyds banking group.

1.) Do you think this will be a problem?
2.) If so, does anyone know of a basic bank account that I could open which would not be touched by any of my creditors?
3.) Could I keep the Lloyds account for payment of my household/priority bills and open a separate one for my cc bills?

Thanks for all your help! i'm in a right hole at the moment and this forum is really helping me get through things

Lloyds and HBOS only got associated in 2009 but always had a separate banking licence until,very recently. Most of the info I found was out of date so I don't know if there is a risk. To be certain, best to move your money away, Coop seems sensible, and you should be able to use the banking switch facility.

Are you self managed or with SC etc? Only asking as you wouldn't be paying individual CC but a single payment to the DMP.

Scaredofdebt_2

Sazzie23 wrote: »

Hi Scared,

I know,it's really frightening when the say they are 'rejecting' your DMP offer, but don't panic (easy for me to say), don't worry (I compete for worrier of the year) and relax (you'll see by the time of day I write this that I'm good at that!), but try to do as I say and not as I do and KEEP CALM:D

Are you with SC? Have you contacted them? The usual SC advice is to ignore the rejection and keep paying the budgeted DMP amount, eventually they will get with the programme. Don't try to keep,paying them outside the DMP as you'll land yourself in financial problems as well as risking putting the rest of the DMP,in jeopardy.

As Sourcrates says, what can they do really? The 2 worst things that could happen are a CCJ - I've think I've heard of this happening once in the 2 years I've been on the thread, and a charge order on the house which just means IF you sell they have to have their money and again I've only heard of that once in the last 2 years. In the very unlikely event either of these happens, so what? Credit rating will already be trashed by the DMP, court won't make you pay any more, & they don't make you sell your house.

Helifax are not going to come knocking on your door asking for the extra money, I suspect that they WILL try to charge you interest and that is the reason they re saying they 'reject' your DMP. So, get yourself prepared with the don't charge me interest letters (templates were a couple of pages back), and don't think 'OMG' think 'what the heck' you may wish to replace heck with something suitable (Scuse language folks:o).

GENERAL,REMINDER

Defaults are good, DcA are good, default letters are often sent automatically and may not mean you've had an actual default. It will show on your credit file (Noddle is free to check) when you are actually defaulted. For some reason default letters often arrive in a Saturday so I though I'd post that now.

Happy times everyone, keep smiling, it's going to get better.m:T

Thanks Sazzie, it has definitely been a sleepless night!! I have contacted SC and they said we will continue to keep paying them through the DMP and I don't have any intention of paying them extra - I can't! I did always expect this from HFX but was a shock when it happened and I am worried that our other creditors - Barclaycard, Natwest, Next and Hitachi - will also reject and we will be back to square one.

As far as CCJ's go, we are 9 years of finishing our mortgage, have no intention of moving and don't ever want to see another credit card as long as I live so not too bothered about our credit file. Just really scared about what is going to happen next. It is crazy, on Thursday when MBNA was accepted I will really happy and positive, just goes to show it really is an emotional rollercoaster!!

Scaredofdebt_2

On a separate note, does anyone have any experience of dealing with Hitachi finance? We bought a sofa from DFS and our loan is with them on interest free credit. We wrote to them to say we could meet February's payment but then SC DMP would be taking over but they have not taken Feb's payment and have not contacted us so far. The DD is still set up and there was money in the account for them to take just not sure why they haven't. So this means that February then have not received anything and I am just concerned of the impact of this as opposed to making token payments (hope that makes sense, brains a bit fuzzy this morning).

Scaredofdebt_2

SquirrelNuts wrote: »

My Lloyds CC was initially rejected (Lloyds are same group as Halifax), then they agreed to accept a month later.

Halifax's options - like all creditors - are:

1) Accept DMP
2) Reject DMP and sell debt (to a DCA who will likely accept)
3) Reject DMP and try to get their money back via court.

Now... the last choice sounds scary, BUT you have already made a fair offer and can prove its all you can afford (your income and expenses).

From what I've read, it appears that courts take this into account and set up a repayment plan accordingly (i.e. same or similar payment offer per month).

Halifax will know this, so I would suggest that likelihood of court is minimal as long as you keep paying the offered amount, as there is simply no benefit to Halifax paying out a load of fees to court just to get the same amount anyway.

So... stick with it, and I'm sure it will work out eventually...

Squiz

Hi Squiz, thanks for the reply. Can I just ask how did you know Lloyds had accepted - did they write or just stop interest?

spot3

That's it! Stepchange have taken my last DD payment, I have paid off all my debts. Now I can start saving, I'm almost as excited about watching a savings balance grow as watching my Stepchange balance go down.

January2015

spot3 wrote: »

That's it! Stepchange have taken my last DD payment, I have paid off all my debts. Now I can start saving, I'm almost as excited about watching a savings balance grow as watching my Stepchange balance go down.

*•.¸ (*•.¸♥¸.•* )¸.•* Congrats to spot3!
♥«´¨`• 2 0 1 5 •´¨`»♥ YOU DID IT!!!
¸.•*(¸.•*´♥`*•.¸)`*•, * * * * * * * *

Puzzcat

spot3 wrote: »

That's it! Stepchange have taken my last DD payment, I have paid off all my debts. Now I can start saving, I'm almost as excited about watching a savings balance grow as watching my Stepchange balance go down.

Well done spot3... enjoy being debt free...!


Puzz. x

tequilabird

Sazzie23 wrote: »

Lloyds and HBOS only got associated in 2009 but always had a separate banking licence until,very recently. Most of the info I found was out of date so I don't know if there is a risk. To be certain, best to move your money away, Coop seems sensible, and you should be able to use the banking switch facility.

Are you self managed or with SC etc? Only asking as you wouldn't be paying individual CC but a single payment to the DMP.

Thanks Sazzie! I called StepChange as I didn't really fancy going through the whole rigmarole of switching accounts again! Turns out, although Halifax and Lloyds are part of the same banking group, they hold separate licences and trade independently so are unable to offset so I've been advised that using my Lloyds account will be fine! :j

I'm not really at DMP stage yet, just arranging a TPP and have made my first token payments to all creditors. Just waiting now to hear back from them all and see how many of them get nasty with me :eek: hoping that they all play nicely!

Thanks for all your advice!

SquirrelNuts

Scaredofdebt wrote: »

Hi Squiz, thanks for the reply. Can I just ask how did you know Lloyds had accepted - did they write or just stop interest?

I phoned them and they accepted on the phone!

They then wrote off the back of the call to say that as a temporary concession they would accept £x per month and would stop interest etc, but would still send arrears and default letters etc.

I'm still not defaulted though, but probably just a matter of time...

Squiz