DMP & Mutual Support Thread - Part 10

blisteringblue

Grrr, just posted all my cover notes and statements to the creditors and noticed a mistake in the payment breakdowns. They were supposed to be identical to the Stephchange ones, but obviously the NEDCAB version is a true % Ratio of Debt. Stepchange must give a bigger % to bank accounts, so our Santander payment is wrong and that throws the rest out. Only a few £ out but out none the less.

Ah well, will pay them the same as the last Stepchange from my statement and see if any notice. Will explain then.

All posted though, so gives me a month to get all the standing orders setup.

Puzzcat

:TWell done January, all going in the right direction.:T
Puzz.x

System

January2015 wrote: »

Yes Ploppy - in our letters re Current Account OD and 2 x loans we 'formally request they take action to default the accounts sooner rather than later'. We went on to explain why we wanted this (to stop all interest and charges, and to keep having to ask via reviews etc) and explained that we understood the implications this action would have on credit reference agency files but the decision to go into a DMP was not taken likely and was taken with the aim of being able to be debt free by retirement age. If they did not default the accounts and continued to add interest and/or charges we could see no forseeable change in our circumstances which would mean we would enter retirement still facing debts because of their actions....and then we quoted S225 of the Lending Code. Quoted this because a 9 year DMP and going beyond into retirement would, in our opinion, result in the repayment period becoming excessive.

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.

It's lovely when it works;)

Edit: Ploppy originally they were still going to charge us £1 per day OD fees. Sounds as if they not doing that to you. Also on loans, all interest was still being added and because reduced payments were being made the loans were never going to be paid off before we retire.

Edit: advised H'Fax of DMP mid Feb and agreement to default all accounts within 6 weeks. I am chuffed with myself

Well done, I am so pleased for you. Once you get the default, you don't have to worry any more do you? Our situation with H/Fax and also with Ll***ds & MBNA is that they have only so far agreed to stop interest for 6 months and then review everything again....with the exception of the Ll***s loan, which has been sent to recoveries dept apparently so interest is stopped full stop, from what I can gather. Tesco have already defaulted us and BC are stopping charges at the moment....but who knows what will happen in the future:rotfl:

Think we might be best to stick with it at the moment and as soon as they try and put interest back on, then maybe I will hit them with your trick . Maybe by then OH will have learnt how to deal with them as well and I won't have to do it all alone.....not holding my breath at that one happening though!:rotfl:

January2015

ploppy57 wrote: »

Well done, I am so pleased for you. Once you get the default, you don't have to worry any more do you? Our situation with H/Fax and also with Ll***ds & MBNA is that they have only so far agreed to stop interest for 6 months and then review everything again....with the exception of the Ll***s loan, which has been sent to recoveries dept apparently so interest is stopped full stop, from what I can gather. Tesco have already defaulted us and BC are stopping charges at the moment....but who knows what will happen in the future:rotfl:

Think we might be best to stick with it at the moment and as soon as they try and put interest back on, then maybe I will hit them with your trick . Maybe by then OH will have learnt how to deal with them as well and I won't have to do it all alone.....not holding my breath at that one happening though!:rotfl:

The nice and personal letters from H'fax advised defaulting will freeze the balances going forward:j

With Ll*yds you could try quoting S227 at them:

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.

Argue they are treating your accounts differently. Write and formally request they default on OD rather than just stop interest/charges for 6 months. If they have sent loan to recoveries separate departments are working in silos and not treating your accounts equitably.

Time_to_face_the_music

Growurown wrote: »

Afternoon peeps, another creditor off my list! Just finished paying the second and last of the two Halifax bank accounts that went onto my DMP as they both had overdrafts.

I have gone from 14 creditors down to 9 now and it's nice to see them going:j

Still working towards being debt free by November.

Great news, well done GUO :j

TTFTM x

Time_to_face_the_music

ploppy57 wrote: »

Well done, I am so pleased for you. Once you get the default, you don't have to worry any more do you? Our situation with H/Fax and also with Ll***ds & MBNA is that they have only so far agreed to stop interest for 6 months and then review everything again....with the exception of the Ll***s loan, which has been sent to recoveries dept apparently so interest is stopped full stop, from what I can gather. Tesco have already defaulted us and BC are stopping charges at the moment....but who knows what will happen in the future:rotfl:

Think we might be best to stick with it at the moment and as soon as they try and put interest back on, then maybe I will hit them with your trick . Maybe by then OH will have learnt how to deal with them as well and I won't have to do it all alone.....not holding my breath at that one happening though!:rotfl:

6 month review is pretty standard, we have always had that throughout with Lloyds but we managed to stop interest, it stayed frozen. It's wise to set a calendar reminder to ask Stepchange to update credit creditors as they normally only do this annually.

TTFTM x

Time_to_face_the_music

January2015 wrote: »

The nice and personal letters from H'fax advised defaulting will freeze the balances going forward:j

With Ll*yds you could try quoting S227 at them:

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.

Argue they are treating your accounts differently. Write and formally request they default on OD rather than just stop interest/charges for 6 months. If they have sent loan to recoveries separate departments are working in silos and not treating your accounts equitably.

FOS won't tolerate same creditor accounts being treated differently when it comes to applying interest but they still consider a default as a bad thing, so couldn't get them to pressure creditors to do it.

It's always worth trying yourself but we have just had to admit that some accounts will never default you. Three and a bit years down the line, we only ever got 4 out of 11 defaulted.

TTFTM x

Puzzcat

Just a quick reminder...Although defaults are what we want, the ultimate win is the frozen interest so the debt goes down. A default is like the icing on the cake but freezing the interest has got to be the primary aim. I do like a default but want to be debt free more!
Puzz

System

Puzzcat wrote: »

Just a quick reminder...Although defaults are what we want, the ultimate win is the frozen interest so the debt goes down. A default is like the icing on the cake but freezing the interest has got to be the primary aim. I do like a default but want to be debt free more!
Puzz

Yes, that is very true Puzzcat. As this was our first months payment with SC, our debts had incurred a bit of interest over the last couple of months before it actually got frozen, so not gone down as much as I had hoped. Will just have to hope it stays frozen......."Are you listening BC??":rotfl:

neiljmuk

Puzzcat wrote: »

Just a quick reminder...Although defaults are what we want, the ultimate win is the frozen interest so the debt goes down. A default is like the icing on the cake but freezing the interest has got to be the primary aim. I do like a default but want to be debt free more!
Puzz

Problem here for me is wanting a mortgage but if I only get the default once the debt is paid, it's apparently possible to get considered by many lenders with defaults after a couple of years (even if the debt exists funnily enough) so I'll focus on the largest possible deposit and paying off the actual debt as soon as without compromising on having more financial freedom.

If the worst comes to the worst I'll rent till I retire then buy a house outright or with a 50 to 75% deposit and the one off payment from my private pensions.

Many ways to skin a cat