DMP & Mutual Support Thread - Part 10

System

Nice to see my debts decreasing after the first payment...hope everyone else is noticing the same...:)

January2015

neiljmuk wrote: »

This post is a thing of beauty and forms the basis of what will now be a 2nd letter to Lloyds (loan) if I draw a blank from the first one (before going to FOS, then dropping to token payments)....

:T

Thank you for your wonderfully kind words - nice to know that after just a few months on this wonderful forum I am able to help others - it's nice to give something back:D

Ellieseleven wrote: »

I don't think that's sad at all January, I think you got it right in the second sentence...knowledge is power!

Ellie x

Yes Ellie, you are right and I've decided I'm not quite as sad as I thought. I don't know why I just sort of assumed most people who have been on DMPs for a fair while were aware of the lending code and specific wording that would support them. Just shows - one should never assume and should always clarify:rotfl:

On another note - lovely to login onto SC and see the first payments allocated to all our creditors.

We have 12 creditors in total:

• 10 of which are banks/credit cards
• 1 is a catalogue :mad: company which I am desparately going to try and pay up asap to avoid the extortionate buy now pay later interest fees and
• the final creditor is an energy company were in dispute with over back billing.

So there are 10 creditors we are seeking to default us asap. Our accounts were all up to date until Feb 2015 and DMP started Mar 2015 and so far I've got

• 5 accounts to agree to default us so I am feeling fairly chuffed
• 4 of the remaining accounts have frozen fees and charges but I am still angling for defaults asap
• the final account is a CC with BC which I am arguing about interest charges because our payments are over their 1% threshold.....I'll keep you all posted with my progress;)

Hope everyone else is having a wonderful debt busting week:beer:

Sazzie23

Puzzcat wrote: »

And despite mse mucking around with our forum.. I am celebrating.. I have hit just over the 15% mark and into the 50k's...... Updated my signature but don't think you can see it due to the poor design of the new website.. grrr....

I was reading the daily digest so I logged on, but the site doesn't look any different, am I being dim? Congratulations on the debt busting Puzz, next stop will be 20% and one fifth gone !!

January2015 wrote: »

Thank you for your wonderfully kind words - nice to know that after just a few months on this wonderful forum I am able to help others - it's nice to give something back:D



Yes Ellie, you are right and I've decided I'm not quite as sad as I thought. I don't know why I just sort of assumed most people who have been on DMPs for a fair while were aware of the lending code and specific wording that would support them. Just shows - one should never assume and should always clarify:rotfl:

On another note - lovely to login onto SC and see the first payments allocated to all our creditors.

We have 12 creditors in total:

• 10 of which are banks/credit cards
• 1 is a catalogue :mad: company which I am desparately going to try and pay up asap to avoid the extortionate buy now pay later interest fees and
• the final creditor is an energy company were in dispute with over back billing.

So there are 10 creditors we are seeking to default us asap. Our accounts were all up to date until Feb 2015 and DMP started Mar 2015 and so far I've got

• 5 accounts to agree to default us so I am feeling fairly chuffed
• 4 of the remaining accounts have frozen fees and charges but I am still angling for defaults asap
• the final account is a CC with BC which I am arguing about interest charges because our payments are over their 1% threshold.....I'll keep you all posted with my progress;)

Hope everyone else is having a wonderful debt busting week:beer:

Thanks Jan15, couple of great posts there, and shows why us working as a team, get better results, many light bulb moments make a torch:rotfl: Certainly when I first went into a DMP I wasn't in a fit state to even question creditors, never mind start quoting the Lending. Code to them, and then after that I guess I got a bit lazy and complacent, so big thank you for shaking us up:D

January2015

Sazzie23 wrote: »

Thanks Jan15, couple of great posts there, and shows why us working as a team, get better results, many light bulb moments make a torch:rotfl:

What a great way to think of our shared experiences of LBMs. That started my day with a big smile - thank you

Time_to_face_the_music

January2015 wrote: »

Sorry - should have thought of doing that when I originally posted.

Lending Code Section 224 states:

• Subscribers should consider reducing or stopping interest and charges when a customer evidences that they are in financial difficulties. Such reduction/suspension decision should be based upon an income and expenditure statement indicating that they are unable to make repayments sufficient to meet contractual terms. Where a customer is able to make only token payments, their debt should not increase as a result of interest and charges levied. The assessment should reflect the customer’s lack of ability to pay rather than the stage an account has reached in the arrears cycle or whether they are using free sources of debt advice. Where a firm declines to allow concessions, they should be prepared to explain why to the customer or their adviser if requested to do so.

The Lending Code states a token payment is "An offer of payment of a small amount, e.g. £1, made by a customer who has no surplus income available for their ‘non-priority’ creditors and whose circumstances have a realistic prospect of improving so that they will be able to resume full or increased payments".


My argument on this one has been that our DMP sees us through to retirement age and whilst we are making more than token £1 payments our payments are still not equivalent to the required amount for the account to be in order and therefore our payments still constitute a token payment (my logic being that anything less than the required minimum payment must be a token payment).

Section 225 states:

• It is inappropriate for interest and charges to continue to be taken where the result would be that the repayment period for the customer becomes excessive. In forming a judgement on what might be excessive, a subscriber should take into account the type of product and the individual circumstances of the borrower.

My argument on this one (the Hellifax OD) was that it was going to take more than 30 years to clear based on our token payments if they kept charging their daily fee. With no fees we could clear the debt by retirement age. I'm working on developing this argument into my complaint with BC re. interest charges. I need to be more awake when I do the figures, but if their interest is going to take us over the DMP period and into retirement then I think I would argue that makes the repayment period excessive - thinking cap needs to be firmly in place when I word my next missive to BC.

Section 227 states:

• Where possible, subscribers should have consistent policies for customers holding more than one product type in terms of charges and interest concessions.

My argument on this one was how can you agree our relationship has broken down and agree to default our OD but not our loans - you need to treat us consistently.

Edit: I should have said these were just the arguments I used based on my interpretation of bits of the Lending Code I thought applied to our individual circumstances and I do realise the arguments I made may not work for everyone (and indeed may not work for me with all of our creditors - but it did feel good to quote the code verbatim when some of them phoned us following our complaint letters - because different departments deal with complaints about different products even though it can be the same bank/creditor). I felt I knew more about it than the poor so and so's phoning me

Great post and this should help a lot of people. This message really needs spreading so am about to nominate for post of the month.

https://forums.moneysavingexpert.com/discussion/comment/68030020#Comment_68030020

TTFTM x

Puzzcat

Sazzie23 wrote: »

I was reading the daily digest so I logged on, but the site doesn't look any different, am I being dim? Congratulations on the debt busting Puzz, next stop will be 20% and one fifth gone !!

Your lucky you missed it Sazzie.. this is the link to the thoughts of us who didn't...They meant to only trial it with some users but changed it for everyone by mistake...




https://forums.moneysavingexpert.com/discussion/5204850


Puzz. x

Ellieseleven

When I first read this I laughed until tears ran down my cheeks! Still go back and have a re-read if I am feeling the DMP blues:rotfl::rotfl:

I read this too when I first started out on my DMP and like you go back to it every now and again. It is so funny, I laughed until my sides ached!

http://forums.moneysavingexpert.com/...hlight=debitas

Ellie x

BarginBetty79

Hi Everyone,

I'm hoping someone on here can help out and put my mind to rest!
I've recently been advised by SC to enter into a DMP as my debts are currently rising due to me relying on credit to pay day to day living expenses. A little bit of background.....I've had a rapid change in my situation due to a relationship breakdown and had to take a loan out to buy a car and also rent a property. Due to struggling on my own financially I've relied on credit cards for food, petrol, christmas, birthdays and just about everything else! This has resulted in debt of around £9,500.

I finally realised I need help with this and contacted SC who I found really helpful, I'm just a bit nervous about starting a DMP as so far I've not defaulted on any payments to my loan and credit cards and to do this seems really scary. I've also got most of my debt with Lloyds who after looking on the internet on different forums do not seem to be very helpful when it comes to helping with debt.

Any help or advice to put my mind at rest would be gratefuly received.

Meatloaf1981

Hi Betty, you're in the right place! Do not worry, most if not all of the people on this board have been through what you're looking at going through and the initial fear is the first and biggest hurdle. Ultimately, if Stepchange advise that a DMP is probably right for you, then go through the process with them and they will contact your creditors on your behalf to inform them of your circumstances and negotiate repayments with them. Do not fear Lloyds when it comes to them being helpful as Stepchange will deal with that for you in the main.

This is the first step towards becoming debt free, don't panic and everyone here will be there for you if you have any doubts or worries you want to discuss.

Meat.

minkeymootoyou

This is a warning to everyone choosing nationwides basic bank account. One unpaid direct debit will cost you £45 !! I'm now -£35, which they'll probably charge me for too. Banks are nasty.