What's to stop people maxing out credit and going on a DMP?

Bettingmad

Teach me to not fully read other posts, pointed out by Moo.

misterbarlow

bit hard to actually prove fraud when it comes down to it...
well we did it, our car was giving up so we bought a used car on credit card about 2-3 months before starting our DMP, hadn't decided 100% on the DMP at the time but had talked long and hard about it and it was 99% on, got the car as we needed it, then once we decided to do the DMP, we thought might as well enjoy life before it goes t*ts up and maxed out our final card on a nice holiday for the kids, then contacted stepchange......
if we doing a DMP and screwing our credit rating, and lives, 45k or 47k to pay back, not much difference really..

and our kids will remember that holiday for ever, they still comment on it, which is worth any debt!!


since then we have paid back over £15k of our debts...

Bettingmad

misterbarlow wrote: »

bit hard to actually prove fraud when it comes down to it...
well we did it, our car was giving up so we bought a used car on credit card about 2-3 months before starting our DMP, hadn't decided 100% on the DMP at the time but had talked long and hard about it and it was 99% on, got the car as we needed it, then once we decided to do the DMP, we thought might as well enjoy life before it goes t*ts up and maxed out our final card on a nice holiday for the kids, then contacted stepchange......
if we doing a DMP and screwing our credit rating, and lives, 45k or 47k to pay back, not much difference really..

and our kids will remember that holiday for ever, they still comment on it, which is worth any debt!!


since then we have paid back over £15k of our debts...

Dress it up as much as you want, however your actions especially for the holiday were immoral and fraudulent. Good example set for your children!!!!!

sourcrates

Confession time, back in the early 2000`s my then wife had been hurt in an accident at work, basically she couldn't work, so we were down to just my wage, we both had lots of debt, inc mortgage and second mortgage, and between us had been earning good money, but it was around this time our financial world collapsed, LBM was not far away, had months prior to this receiving threatograms from some of the best (worst) DCA`s in the land, I knew meltdown was imminent, and ontop of this we had a 2 yr old daughter to think of.


I had a 5k overdraught with my then bank (who funnily enough are now my bank again) which was untouched, I opened a new basic account, and transferred the 5k across to it, we had no other money to speak of, so I saw this as an emergency fund for my kids needs.
Few weeks later was accepted for an IVA, and this was the start of my path to becoming debt free, I used the money to make sure my daughter had everything she needed, so I don't regret it, desperate times make people do desperate things.
I'm not looking for absolution, nor appeasement, you have to have been in these situations to really know what desperate means, there you go............

Hanky_Panky

Well done to sourcrates for admitting it.

This happens all the time - I have seen it loads. I'm actually a bit shocked that some posters on here think it doesn't happen at all.

National_Debtline

Hi all

Just to elaborate on some of the above responses re: maxing out credit and possible repercussions:

If done prior to a DMP, or attempts at DIY negotiation: creditors may be less willing to accommodate requests to freeze interest, charges etc. The recovery process will be no different to normal - despite some references to fraud above, if the accounts have been managed according to their terms of use, it is very hard to imagine the circumstances in which a lender would try to pursue such a complaint against a borrower.

Prior to DRO: possible revocation if it is deemed that debts were incurred with no expectation of being able to repay. The Insolvency Service will often review cases for evidence of periods where debts have been rapidly accumulated over a short space of time. We do warn those applying for DROs that incurring any further debts may jeopardise their application.

Prior to bankruptcy: strong possibility of bankruptcy restrictions on the grounds of reckless or irresponsible financial conduct by the debtor.

To be honest, from my perspective I really don't think this scenario is all that prevalent. A significant proportion of the people I deal with assure me that if they ever owe another penny it'll be too soon.

Dennis
@natdebtline