DMP & Mutual Support Thread - Part 10

racht

alamaya wrote: »

whats the freeze interest letter lol I ask sounding like a total newb

I used a template from the National Debtline website when Very continued to add interest to my account- they have a list of various sample letters to use

Sazzie23

alamaya wrote: »

I should add im having a DMP wobble.
1 month in to our DMP and hubby has had a threaten to default notice sent. I know people say this is a good thing but I feel crap. I just want to pay what I owe, I know slower but I will pay every penny, but with this and my 26k and 6k loans still having interest added I cant see any way out of this debt

Hi Alamaya

Repeat after me, I am a good person, I want to pay off my debts, companies do not have the right to treat me badly.. Feel better yet, go back and say it again until it helps:)

Ok now find that template letter, there are a few versions on the thread or the nedcab site as well as national debt line should be able to help. Oh yes, and send the letter ! Make a note of the date so you know when to ring FoS if you don't get the required response.

Now stop worrying about the default, you know from reading this thread they are a good thing, what most people don't realise is that the letters are often automatically generated as soon as either a payment is missed or a certain level of payments are behind. It really is nothing to worry about, and can often mean the account will go to a debt collection agency (dca). Again nothing to worry about and they usually go to 0%.

As your DMP is so new, are you sure TSB knows you are with SC? Sometimes the paperwork doesn't get to the right department in time, have you spoken to TSB ?

Keep your chin up, you are going to get through this. We've all felt like this at one time or another, we do understand.

Puzzcat

This is the letter I sent to one creditor and then took them to the FOS.




Dear Sir/Madam

Re: Account Details ***


Thank you for your letter and statement concerning the above account. I am sorry that you feel unable to freeze interest on the above account.

As you are aware, I am in a DMP with Stepchange, reference number******. The majority of my other creditors have agreed to the offer of payment and agreed to suspend any interest charges still accruing. They have accepted that to continue to charge interest would not assist me in my present financial difficulties, and can only serve to delay my efforts to repay this debt.

I have already paid considerable sums in interest to my account. If interest charges continue, the monthly instalments I am paying will onlyj ust cover that interest. Also, the cooperation of my other creditors who have agreed to freeze interest already would be put at risk.

I am aware that you subscribe to the Lending Code which states that lenders will consider reducing or suspending interest and charges if these would cause the debt to increase or lead to the repayment term becoming too extended. I would therefore be gratefulif you would reconsider your decision not to freeze the interest. This would mean that the monthly payments I make would actually reduce the balance outstanding to your company within a reasonable time period.

Please consider this letter as a complaint about the interestc harges you are continuing to apply to my account. I would like to see these stopped immediately.
If you are unable to help me with this issue, I will have no alternative but to take this case to the Financial Ombudsman Service.

I look forward to hearing from you as soon as possible.

Yours faithfully

KID77

Advice please, I am freaking out! Just received letter from Stepchange to say Barclays are not accepting DMP as they are going to take court action. Stepchange say in their letter not to worry, its not unusual and to call them when we receive the forms. Just tried ringing them but they are closed today. Even though letter says don't worry I am doing everything but that. The overdraft is for 1000 so not alot....and when i google Barclays court action, nothing comes up. If anyone can offer any advice it would be greatly appreciated xxxx

Just to add Barclays sent a termination notice on my other account which has an overdraft of 511, saying if I dont pay they will pass to DCA but I am not so worried about this as seems a standard practice.

K
xx

Puzzcat

KID77 wrote: »

Advice please, I am freaking out! Just received letter from Stepchange to say Barclays are not accepting DMP as they are going to take court action. Stepchange say in their letter not to worry, its not unusual and to call them when we receive the forms. Just tried ringing them but they are closed today. Even though letter says don't worry I am doing everything but that. The overdraft is for 1000 so not alot....and when i google Barclays court action, nothing comes up. If anyone can offer any advice it would be greatly appreciated xxxx

Just to add Barclays sent a termination notice on my other account which has an overdraft of 511, saying if I dont pay they will pass to DCA but I am not so worried about this as seems a standard practice.

K
xx

Hi,
Firstly don't panic! Can't really advise as don't have Barclays bank account but seems a little extreme, my od with natwest was way bigger! Was the account always in its od, or did you withdraw a large sum before starting dmp? I know creditors have refused for recent transactions on accounts. Just put the letter to oneside and call sc on Monday. Snotty letters always arrive at the weekend!!
Puzz.x

sourcrates

KID77 wrote: »

Advice please, I am freaking out! Just received letter from Stepchange to say Barclays are not accepting DMP as they are going to take court action. Stepchange say in their letter not to worry, its not unusual and to call them when we receive the forms. Just tried ringing them but they are closed today. Even though letter says don't worry I am doing everything but that. The overdraft is for 1000 so not alot....and when i google Barclays court action, nothing comes up. If anyone can offer any advice it would be greatly appreciated xxxx

Just to add Barclays sent a termination notice on my other account which has an overdraft of 511, saying if I dont pay they will pass to DCA but I am not so worried about this as seems a standard practice.

K
xx

No need to panic,


If, they go to court, you would simply fill in the court papers, return them promptly, there is no requirement to attend in person, advise the court of your DMP, and what you can afford to pay, usually what you are paying now.


Normally the court would just make an order to continue paying as you are now, so no great changes, and nothing to panic about, its just a way for the bank to secure its debt, if you like.


As long as payments are maintained, all will be fine.

KID77

Thanks Puzzcat and Sourcrates, I actually rung Barclays direct as didnt want to worry about this all weekend. Spoke to 2 lovely menbers of staff who said not to worry as Barclays never take anyone to court, they may oass debt to DCA if they struggle to get money from me but they will not actually take me to court. He said there was nothing in my file about the particular account where they had referenced court action so he said I would need to speak to recoveries on Monday as they are the dept that deal with SC. He said mistakes are often made by SC and Barclays themselves when setting up DMPs so should be nothing to worry about .
We lived in our overdraft, maxed out and we did the same this month we withdrew about £500 for food and emergencies from our overdraft just incase barclays freezed our account before payday so perhaps thats the reason...
I knew this wasnt going to be easy but it really scared me seeing court action. One bonus is its made me realise not to be scared of speaking to my creditors directly as they are just regular people doing a job.
Thank you guys for both responding so quickly xxxxxx

sourcrates

It is rare for creditors to go down the court route, 99% of the time, the letters are computer generated threats, nothing more.


The usual procedure, as you say, is to sell or assign the debt to a DCA.


Enjoy your weekend !!!

KID77

sourcrates wrote: »

It is rare for creditors to go down the court route, 99% of the time, the letters are computer generated threats, nothing more.


The usual procedure, as you say, is to sell or assign the debt to a DCA.


Enjoy your weekend !!!

Thank you, the fact he has said they don't take anyone to court has made me less panicked but I am still nervous to see what they say on Monday.

Enjoy your weekend too xx

KrazyKel

Sazzie23 wrote: »

Really busy at the moment and no time to post, but please, please don't consolidate, been there, more than once got several of the T shirts, doesn't help if you can't stick to budget you'll just run up more debts...IMO.

If you can make the min payments, and get plenty of 0% s it's worth looking at the calculator....can't remember what they call it, someone help me out ....but you have to be able to stick to your budgets and if it's too tight you simply won't be able to.

Good luck, I'll try to post something more useful later

Thank you, I am making extra money with overtime and ebaying its just annoying that I dont see any of the money I make at the moment, seems to just get eaten up by not budgeting and fee's etc
I had an annual statement from HSBC the other day and Ive paid £1000 in just one year in OD Fees and Informal overdraft charges

I would like to have consolidated - know so many have fallen in that trap before tho so maybe its a good idea that Ive been declined
Also declined other recent 0% cards..

If I did a DMP with Stepchange, and make extra money from Ebaying and Overtime. what am i best doing with the extra income?
Giving it stepchange to split between the debts or save for F&F Offers or me paying them in full once I have enough?

I do have a spare Lloyds bank account can start to use - not connected to any my debts, Can you switch DD's easily too from HSBC? don't need all switching tho like my credit card payments