DMP Rejected by bank??

BrussellSprout

Hi guys,

I've just started a DMP with Stepchange over 90% of my debts are with my bank (Nationwide) Loan, Credit card and overdraft.

Stepchange have just written to me to say that Nationwide have rejected my DMP but that they will continue to pay...

I'm not quite sure what happens now? Have I dug myself into a bigger hole than the debt was in the first place?

sourcrates

Hi,
No not at all, its quiet common for creditors to reject the payments offered to them at first, keep making the payments via stepchange, one of two things will then happen.


(1) Either the bank will eventually accept the offers you are making them, or
(2) They will sell on your debts to external collection agencies.


If the latter happens, you will receive written notification in the form of an "assignment notice", this just means the debt has been assigned to whichever DCA contacts you, in this case you simply refer them to stepchange, and they will deal with it for you.


In the mean time you may receive a lot of computer generated mail/calls, once you have referred them to stepchange, you can safely ignore the letters and calls.

BrussellSprout

Thank you for your help

Is there not also the chance that my bank could take court proceedings against me instead of passing my debts on?

Luckily I don't have a landline and a mobile is easily ignored...

Tixy

Agree with sourcrates except there is also a 3rd option (which is much less common) which is that they may at some point take court action against you rather than sell your debt to debt collectors.

The chance of this increases slightly if you are a homeowner, but is still rare on DMPs.

If a couple of months down the line they are still charging you interest on the debts then you may want to send them a letter asking them to reconsider freezing interest (national debtline has a template letter for this).

dreamdreamer

Even if your bank went through court proceedings and obtained a CCJ against you, the court will decide how much is affordable for you to pay, exactly the same as Stepchange has, so not much would change from your end! Nationwide know that so they're unlikely to go to the hassle of gaining a CCJ while you're already making an effort to pay.

From what I've read on here it's very normal for a creditor to initially reject a DMP. I wouldn't worry, just keep referring them to Stepchange and keep paying.

BrussellSprout

Tixy - I do not own my own home, I rent off family, I have no car, and all I really have are clothes..etc (the tv and electronics are all my partners and the debt is only mine), the debts are unsecured personal loans, credit card and overdraft.

I am worried about court, realistically though is there an outcome that would be any different to what they are already being paid by the DMP.

As for writing to them again I've only wrote to them once to send them Postal order reduced payments for the month of August (as my DMP payments don't start until September)

As far as I'm aware any other correspondence Stepchange should be dealing with for me..

BrussellSprout

Thanks Daydreamer, it's just so stressful, currently pregnant, skint and moving house so this on top is sending me a little potty!

sourcrates

As Tixy says, it could be an option for them, but an unlikely one, although there was a case on here recently where the OP had been taken to court for a debt of less than £300.
What usually happens is the debts are sold on or assigned to DCA`s, they cant take everyone to court now can they, so I would not worry too much about that.

Tixy

If you don't own a home then they chance of court action is less likely.

Whilst stepchange will ask your creditors to freeze interest if they don't agree to stepchange won't chase this further for you. Quite a few people have reported being successful in sending a letter direct a few months in to the DMP asking them to reconsider.

BrussellSprout

it's quite large though, I owe the bank about 16k so I don't think they'll just pass it on without a fight (although I must say the DMP I'm paying isn't exactly minimal) each debt is getting around 3/4 of the full contract payment I was previously paying. (In fact step change almost paid 2 of my debts a higher amount than I already was!! luckily, I caught them before they did it... )

sourcrates

BrussellSprout wrote: »

Thanks Daydreamer, it's just so stressful, currently pregnant, skint and moving house so this on top is sending me a little potty!

Don't get stressed out over this, relax, its only money.
The bank wont be stressing about it, neither should you.:)


Congrats on the baby by the way:T