DMP & Mutual Support Thread - Part 10

Jon81

Ali80 wrote: »

6 out of 9 creditors showing reduced online balance so, based on my monthly payment, 1.5% is paid :j

Still a long way to go, but so chuffed my debt payment has for the first time in ages, mostly (BC.....grrrrrr :mad:) gone towards clearing debt and not interest!

Small victory, but surely we all need little wins to help get us get to the end!

xx

Good news other peoples successes keeps me and I'm sure others on track to do the same well done

Sazzie23

Dancingthroughlife wrote: »

Great advice, thank you. I may start with the token payments for a few months then as unfortunately neither myself nor my partner can get credit so it sounds like a smart idea, I wasn't really aware it was an option so thank you for the advice.

x

Hello, and Welcome,

No one but here tells you about getting your emergency fund by token payments, but it's absolutely essential if you are going to maintain payments long term.

I'd also suggest a trawl through the thread, it'll help you understand why we like defaults and you'll know more what to expect.

angela1976 wrote: »

Hi I was wondering if any helpful people had any dealing with creation credit card, they have accepted our dmp, but are still chairing interest of around 12% now I know this is a lot lower than I was paying! but my stepchange payment to them each month will actually only be clearing 10 a month off the debt so will take forever to clear the debt. I have wrote to them but I've just got a this is the best we can offer. This is our 1st month on our dmp so I don't feel confident enough to go on my on and make £1 payments in hope that they default me. Has anyone got creation to freeze interest??

Sorry no experience, have you tried writing to them using the lender code template put up by January2015? It's a few pages back but it's probably worth a try, and even if no one has had success before, doesn't mean you can't be the first:D . If there's no luck there, complain to FoS, and finally, remember that as you pay off other debts the amount you pay remaining creditors will increase so your DFD won't be as long as you might think?

Puzzcat

angela1976 wrote: »

Hi I was wondering if any helpful people had any dealing with creation credit card, they have accepted our dmp, but are still chairing interest of around 12% now I know this is a lot lower than I was paying! but my stepchange payment to them each month will actually only be clearing 10 a month off the debt so will take forever to clear the debt. I have wrote to them but I've just got a this is the best we can offer. This is our 1st month on our dmp so I don't feel confident enough to go on my on and make £1 payments in hope that they default me. Has anyone got creation to freeze interest??

Hi,
I complained to fos and got the interest reduced but not frozen. They are my only interest charging creditor so I pay £30ish a month and £10ish is interest. I can live with that as in the old days I was paying out £100's in interest each month over my 9 debts.
Puzz.x

fermi

Plenty of ombudsman complaints on creation finance

an example

http://www.ombudsman-decisions.org.uk/viewPDF.aspx?FileID=31007

Time_to_face_the_music

Good morning DMPers new and old :hello:

Just got a fantastic surprise when I opened our online banking, I have been paid early for some consultancy work so have just made our last payment to Lloyds TSB and .........

:j :j :j We are now debt free :j :j :j

We really couldn't have done it without this forum and particularly this thread. The help, advice, experience and support has meant everything to me, I have despaired, cheered, screamed, shouted, laughed and cried here and you were with me all the way. :A

HH my twin, you inspired me and supported me 100% of the way and I beat the target you set for me too, which makes me so proud

DMP & Mutual Support Thread :iloveyou:

TTFTM x

fermi

Massive congratulations TTFTM.

Also thank you for the massive help and inspiration you have given.

January2015

angela1976 wrote: »

Hi I was wondering if any helpful people had any dealing with creation credit card, they have accepted our dmp, but are still chairing interest of around 12% now I know this is a lot lower than I was paying! but my stepchange payment to them each month will actually only be clearing 10 a month off the debt so will take forever to clear the debt. I have wrote to them but I've just got a this is the best we can offer. This is our 1st month on our dmp so I don't feel confident enough to go on my on and make £1 payments in hope that they default me. Has anyone got creation to freeze interest??

Sazzie23 wrote: »

Sorry no experience, have you tried writing to them using the lender code template put up by January2015? It's a few pages back but it's probably worth a try, and even if no one has had success before, doesn't mean you can't be the first:D . If there's no luck there, complain to FoS, and finally, remember that as you pay off other debts the amount you pay remaining creditors will increase so your DFD won't be as long as you might think?

My previous post was back on page 204. I quoted the lending code Section 225 with Hellifax as our OD was going to take 38 years to clear based on the way they were continuing to apply interest and charges and claimed this was excessive. It worked - they immediately agreed to move the account to recoveries, freeze all interest and charges.

My original post is copied below - hope it helps

January2015 wrote: »

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

January2015

Time_to_face_the_music wrote: »

Good morning DMPers new and old :hello:

Just got a fantastic surprise when I opened our online banking, I have been paid early for some consultancy work so have just made our last payment to Lloyds TSB and .........

:j :j :j We are now debt free :j :j :j

We really couldn't have done it without this forum and particularly this thread. The help, advice, experience and support has meant everything to me, I have despaired, cheered, screamed, shouted, laughed and cried here and you were with me all the way. :A

HH my twin, you inspired me and supported me 100% of the way and I beat the target you set for me too, which makes me so proud

DMP & Mutual Support Thread :iloveyou:

TTFTM x

Well done TTFTM - you are an inspiration to DMPers old and new.....showing it can be done.

I am sooooooooooooooooooooooooooooooooooo pleased for you
:j:j:j:j:j:j:j:j:j:j:j:j:j:j:j:j

Hopelessly_Hopeful

Time_to_face_the_music wrote: »

Good morning DMPers new and old :hello:

Just got a fantastic surprise when I opened our online banking, I have been paid early for some consultancy work so have just made our last payment to Lloyds TSB and .........

:j :j :j We are now debt free :j :j :j

We really couldn't have done it without this forum and particularly this thread. The help, advice, experience and support has meant everything to me, I have despaired, cheered, screamed, shouted, laughed and cried here and you were with me all the way. :A

HH my twin, you inspired me and supported me 100% of the way and I beat the target you set for me too, which makes me so proud

DMP & Mutual Support Thread :iloveyou:

TTFTM x

Oh my word- talk about starting the weekend with a bang!

:money::beer::j:money::beer::j

Many many congratulations Twin. So very pleased for you that I want to cry myself.

You have been wonderfully inspirational to many; me included. You have given tirelessly to others on a consistent basis and made a big difference to many people on the threads. Am in awe at your focus. You've cleared the debt in record time, unbelievable how quickly you have dealt with the issue and you must have one of the best track records here at getting and interest stopped and not reinstated. I have no doubt that had we met earlier I'd have had the courage to go self managed etc earlier and be in a better place financially sooner. However, instead I got something more valuable, something money can't buy- true friendship and the support that brings. So huge thank you from me.

Here's to your next chapter.


:rotfl::T:A:)

Big hugs HHx

SquirrelNuts

Time_to_face_the_music wrote: »

Good morning DMPers new and old :hello:

Just got a fantastic surprise when I opened our online banking, I have been paid early for some consultancy work so have just made our last payment to Lloyds TSB and .........

:j :j :j We are now debt free :j :j :j

We really couldn't have done it without this forum and particularly this thread. The help, advice, experience and support has meant everything to me, I have despaired, cheered, screamed, shouted, laughed and cried here and you were with me all the way. :A

HH my twin, you inspired me and supported me 100% of the way and I beat the target you set for me too, which makes me so proud

DMP & Mutual Support Thread :iloveyou:

TTFTM x

Huge WELL DONE! to you TTFTM! :T:T:T

I look forward to the day when I can post something similar on here:D

Squiz