DMP & Mutual Support Thread - Part 10

melysion

jools35 wrote: »

Hi - wanted to update and share what's happened with us over the last month. I also want to try and offer some hope and reassurance to all the newbies like me who think there's no way out.

I've posted a few times and read most days. This time last month I'd just watched my wages get eaten up by direct debits, been to the cash machine to withdraw money from credit cards to make sure every single penny was paid and that included putting money from credit cards into my current account...also used some cash for school lunches etc. I'd been doing this for months thinking something would happen to change our situation and finally it reached crunch time where 6 credit cards were maxed out and I didn't know how we were going to eat. I've never, ever missed a payment for anything at all and could not contemplate doing this. I wasn't sleeping, was miserable and felt like I just could not go on. I had tried for a consolidated loan with our bank and refused. Tried to up our overdraft by about £30 to cover a dd for 2 days and was refused. It was then that I realised that actually my bank weren't there to help me at all and that I felt no sense of loyalty to them either. I spent hours on the web and found this part of the forum and took the plunge and contacted stepchange.

With their advice I set up a new bank account, cancelled dd's for the creditors with exception of essential ones and spoke to some creditors to give them my stepchange ref number. All have been very nice. I've not gone out of my way to call them, but if they call me I just tell them we're with stepchange and as soon as they hear this they just take the details.

Last Friday my wage was paid into my old current account for the last time and I had an agonising few days making sure all the dd's that need to be paid were. This included me cancelling a dd for our bank loan with the same bank. I then moved all our left over cash to my new bank account using the transfer facility in internet banking. I felt sure that someone from the bank would be sitting watching what was going on, figure it out and zap all our money away.....well a week later i've not even had a letter from them......

For the first time in over a year I actually have money in my purse just after pay day - also have a small amount of savings/emergency cash and I'm so glad we did as we've just had a problem with our car and need 200.00 to fix it. If we hadn't done this we would have tried to up credit card limit to pay it.

Anyway, sorry for the long post. I just really want to drum home the point that whilst you may owe banks/credit card companies etc, they're not going to suffer if you pay a smaller amount to them. It's you who will suffer. I was on the edge and with 3 kids who were getting to the stage that they didn't want to speak to me, I have to say it's not a nice place to be. I feel like myself again. The change has been so dramatic that I actually wonder why more people don't do this to improve their lives. Yes, the consequence is that your credit rating will be trashed, but I don't see that as a bad thing. For us if it was there we'd spend it and I know that many others do the same.

Good luck people, and thank you for all the regular posters on here. I know I don't always post/comment on here but I do read every day and you have changed my and my families lives. Thank you. :A

Thank you. That is somewhat reassuring

Sazzie23

jools35 wrote: »

Hi - wanted to update and share what's happened with us over the last month. I also want to try and offer some hope and reassurance to all the newbies like me who think there's no way out.

I've posted a few times and read most days. This time last month I'd just watched my wages get eaten up by direct debits, been to the cash machine to withdraw money from credit cards to make sure every single penny was paid and that included putting money from credit cards into my current account...also used some cash for school lunches etc. I'd been doing this for months thinking something would happen to change our situation and finally it reached crunch time where 6 credit cards were maxed out and I didn't know how we were going to eat. I've never, ever missed a payment for anything at all and could not contemplate doing this. I wasn't sleeping, was miserable and felt like I just could not go on. I had tried for a consolidated loan with our bank and refused. Tried to up our overdraft by about £30 to cover a dd for 2 days and was refused. It was then that I realised that actually my bank weren't there to help me at all and that I felt no sense of loyalty to them either. I spent hours on the web and found this part of the forum and took the plunge and contacted stepchange.

With their advice I set up a new bank account, cancelled dd's for the creditors with exception of essential ones and spoke to some creditors to give them my stepchange ref number. All have been very nice. I've not gone out of my way to call them, but if they call me I just tell them we're with stepchange and as soon as they hear this they just take the details.

Last Friday my wage was paid into my old current account for the last time and I had an agonising few days making sure all the dd's that need to be paid were. This included me cancelling a dd for our bank loan with the same bank. I then moved all our left over cash to my new bank account using the transfer facility in internet banking. I felt sure that someone from the bank would be sitting watching what was going on, figure it out and zap all our money away.....well a week later i've not even had a letter from them......

For the first time in over a year I actually have money in my purse just after pay day - also have a small amount of savings/emergency cash and I'm so glad we did as we've just had a problem with our car and need 200.00 to fix it. If we hadn't done this we would have tried to up credit card limit to pay it.

Anyway, sorry for the long post. I just really want to drum home the point that whilst you may owe banks/credit card companies etc, they're not going to suffer if you pay a smaller amount to them. It's you who will suffer. I was on the edge and with 3 kids who were getting to the stage that they didn't want to speak to me, I have to say it's not a nice place to be. I feel like myself again. The change has been so dramatic that I actually wonder why more people don't do this to improve their lives. Yes, the consequence is that your credit rating will be trashed, but I don't see that as a bad thing. For us if it was there we'd spend it and I know that many others do the same.

Good luck people, and thank you for all the regular posters on here. I know I don't always post/comment on here but I do read every day and you have changed my and my families lives. Thank you. :A

Great advice Jools and I know there will be a lot of readers of the thread who will recognise this situation and those feelings of despair. You have made great progress already, well done. A lot of people do find they have more cash once the DMP starts and it does feel strangely empowering.

Sazzie23

Meatloaf1981 wrote: »

I had two letters from BC today about my two frozen cards. A formal demand to pay and if I don't, they'll apparently default me. I almost wanted to ring them and say "YES! BLOODY DEFAULT ME! RATHER THAT THAN HAVE THOSE HORRID AR MARKERS!" but I resisted the urge. I will wait until the end of the month as the letters say and then hopefully they'll default me. Lord knows I want them to!

Perhaps we should send the demand letters back saying, please default me :rotfl:

Ellieseleven

jools35 wrote: »

Hi - wanted to update and share what's happened with us over the last month. I also want to try and offer some hope and reassurance to all the newbies like me who think there's no way out.

I've posted a few times and read most days. This time last month I'd just watched my wages get eaten up by direct debits, been to the cash machine to withdraw money from credit cards to make sure every single penny was paid and that included putting money from credit cards into my current account...also used some cash for school lunches etc. I'd been doing this for months

Anyway, sorry for the long post. I just really want to drum home the point that whilst you may owe banks/credit card companies etc, they're not going to suffer if you pay a smaller amount to them. It's you who will suffer. I was on the edge and with 3 kids who were getting to the stage that they didn't want to speak to me, I have to say it's not a nice place to be. I feel like myself again. The change has been so dramatic that I actually wonder why more people don't do this to improve their lives. Yes, the consequence is that your credit rating will be trashed, but I don't see that as a bad thing. For us if it was there we'd spend it and I know that many others do the same.

Good luck people, and thank you for all the regular posters on here. I know I don't always post/comment on here but I do read every day and you have changed my and my families lives. Thank you. :A

Yes, I remember this situation so well and the sick feeling in the pit of my stomach as I withdrew more money on my credit cards to be able to live. The relief is immense once you start to do something about it.

For us, the fact that our credit rating is trashed is a very small price to pay. We are coming up to our 5th year on a DMP, we have made a big dent in our debts, we sleep at night and we can look forward to a future without worry;)

For everyone starting out on this journey, keep at it! It really is worth it and you will get your life back;)

Take care
Ellie xx

Growurown

Morning all, great to see this thread is still so supportive. It was a definite lifeline when I started out on my DMP. Next payment should see my debt dip below the £10,000 mark. I'm finding that quite exciting, to owe less than ten grand!

To all the newbies - it will be worth it, the fear and anxiety will subside and in a few months when everything settles down life will be so much better.

January2015

Morning everyone - hope you are all well

No contact received from Nat West about the DMP, but the monthly statement dropped through the letterbox this morning and it shows 0% APR and zero charges - so I can only assume they have accepted the DMP offer and zeroed interest and charges

Good start to our weekend then

minkeymootoyou

Got a letter from StepChange saying that Very have rejected my DMP, even though I got a letter from Very saying please forward your third party and DMP details etc. I emailed them saying, you'll still only be getting the stated amount on the 25th, as I cant afford more.

Natwest and QuikQuid accepted it and stopped interest. Very isn't my biggest debt either.

January2015

minkeymootoyou wrote: »

Got a letter from StepChange saying that Very have rejected my DMP, even though I got a letter from Very saying please forward your third party and DMP details etc. I emailed them saying, you'll still only be getting the stated amount on the 25th, as I cant afford more.

Natwest and QuikQuid accepted it and stopped interest. Very isn't my biggest debt either.

Oh dear.....Very are one of our creditors....happy days ahead - I think not

Very is our smallest debt

fermi

minkeymootoyou wrote: »

Got a letter from StepChange saying that Very have rejected my DMP, even though I got a letter from Very saying please forward your third party and DMP details etc. I emailed them saying, you'll still only be getting the stated amount on the 25th, as I cant afford more.

Natwest and QuikQuid accepted it and stopped interest. Very isn't my biggest debt either.

Make a formal complaint to them saying if they are not prepared to show you the forbearance they are required to under FCA rules, and are not willing to accept the DMP and freeze interest, then you will be taking a complaint to the FOS.

fermi

Example of someone else's FOS case.

http://www.ombudsman-decisions.org.uk/viewPDF.aspx?FileID=21784

complaint

Mr A complains about a store card account he has with Home Retail Group Card Services
Limited (trading as Argos Card Services). He is on a debt management plan but is unhappy
that interest is still being applied to the account which is equal to almost half of what he
repays each month. He feels that Argos Card Services has not responded sympathetically
his financial situation.

background

The adjudicator who considered the case recommended it be upheld. He noted that Argos
Card Services had made some concessions by reducing the amount of interest that is
charged on the account and had accepted reduced payments. However, he felt the
concessions were insufficient in this instance and recommended Argos Card Services refund
the interest and charges that had been applied to the account since November 2011; reduce
the interest rate to 0% going forward and pay £250 for the distress and inconvenience
caused.

Argos Card Services did not accept the adjudicator’s findings and believes it has dealt with
Mr A’s circumstances fairly. It is not prepared to refund the interest applied, reduce the
interest to 0% or make a payment for the distress and inconvenience.

The case was reviewed by a second adjudicator who agreed with the overall opinion of the
first adjudicator. He felt however that the proposed payment of £250 was higher than what
an ombudsman might award in the circumstances here and felt a payment in the region of
£150 was more likely.

Mr A was unhappy about this and, in summary, feels the original £250 should be paid.

my findings

I have considered all the available evidence and arguments to decide what is fair and
reasonable in the circumstances of this complaint. Having done so, I have upheld this
complaint.

Argos Card Services believes that it has dealt with Mr A’s financial difficulties fairly by
reducing the interest rate on his account and accepting reduced repayments every month.
says the interest rate on the account is variable and instead of the 29.9% APR it can reduc e
the interest to between 0% and 9.9%. I accept that by agreeing to reduced repayments and
reducing the interest by 20%, so that 9.9% is being charged, is a positive step towards
helping Mr A in his position of financial difficulties. However, Mr A can only afford to repay
£20.45 each month and the interest charges are still approaching half of what he is repaying
each month.

Mr A has been on a debt management plan since November 2011 and having considered
his circumstances and level of outstanding debt it is unlikely that his circumstances will
change considerably in the near future. At the current rate of repayment and level of interest
that is being applied it will take up to ten years to repay the outstanding balance on the
account. Even if no further interest or charges are applied to the account the debt will still
take almost five years to repay.

As Mr A is in financial difficulties Argos Card Services is required to treat him in a positive
and sympathetic manner. Having considered the specific circumstances of this case I agree
with the adjudicator that although concessions have been made, these do not go far enough.
Argos Card Services has accepted it can reduce the interest rate to 0% and that its
measures are designed to be temporary and assist consumers in the short term. Mr A is not
in short term financial difficulties, as demonstrated by the fact that he is still on the debt
management plan almost two years later. Unless he has a significant change of
circumstances it is likely he will still continue experiencing the same financial difficulties for
some considerable time yet.

Having considered the steps that Argos Card Services has taken I think it could and should
have done more to assist Mr A in his position of financial difficulties. I do not think that in the
circumstances here that charging the amount of interest was reasonable and Argos Card
Services should now refund the interest and any charges that have been applied since
November 2011. It should also ensure no further interest is applied to the account.

I agree it is reasonable to periodically review Mr A’s circumstances but unless his
circumstances improve significantly it would be unreasonable to restart applying interest to
the account.

I also agree with the adjudicators that Argos Card Services’ failure to treat him in a positive
and sympathetic way has caused him distress and inconvenience. I have considered what
Mr A has said about the proposed payments by the adjudicators and the other broader
issues that he has referred to in his personal life.

Having carefully considered the
circumstances of this specific case I think a payment of £200 to be fair and reasonable and
Argos Card Services should therefore make this additional payment directly to Mr A.

I appreciate Mr A may remain unhappy about the level of this award but I am satisfied it is an
appropriate amount.

my final decision

My final decision is that I uphold this complaint and direct Home Retail Group Card Services
Limited (trading as Argos Card Services) to:

 - refund all interest and charges that have been applied to this account since November
2011;
- ensure no further interest is applied to the account, unless it is clear that Mr A’s
circumstances have improved significantly; and,
-  pay £200 to Mr A for the distress and inconvenience he has been caused.