DMP & Mutual Support Thread - Part 11

Haribo1

Thank you January. I will get those direct debits cancelled and get some letters sent off ASAP. I changed my bank account to a basic account a couple of months back so I could try tackling my overdraft so that's sorted. Thanks again. I'm just petrified about the phone calls but I suppose they can't have what I don't have.

little_library_lady

HI there.
I have received a letter from Capital One saying my account has now been 'set up on the reduced payment plan' and I will receive a separate letter explaining the dates and the amount of repayment separately. they also say 'Enclosed you will find a Default Notice. We've issued a Default Notice because you or your appointed representative have entered into a long term payment plan for less than the required minimum amount on your account. This means you are in breach of your agreement. The default will not affect your agreed payment plan.' ---- Do I want them to default me?
What in effect does this mean?

This Notice of Default served under section 87 (1) of the Consumer Credit Act 1974 is a bit intimidating.

Thanks for any help at all.

January2015

Haribo1 wrote: »

Thank you January. I will get those direct debits cancelled and get some letters sent off ASAP. I changed my bank account to a basic account a couple of months back so I could try tackling my overdraft so that's sorted. Thanks again. I'm just petrified about the phone calls but I suppose they can't have what I don't have.

If they phone, they have to go through the data protection bit to check who you are. As soon as that is done say

"Thank you for phoning. I was in the process of contacting you. I am working with Stepchange to manage my financial situation. They have recommended I move to a debt management plan and are helping me set this up. As soon as I have more information I will contact you. Please can you update your records to indicate I am working with Stepchange and also to include my formal request that all communication is done in writing."

Don't let them get a word in edgeways Honestly once you mentioned Stepchange and DMP they are fine. Every single one of my creditors was brilliant (and I had 12 of them).

Don't panic, don't be ashamed, just get the response down to pat and you will be fine. Things will move along faster than you realise - before you know we will be in April or May and you will wonder what you were worried about.

January2015

little_library_lady wrote: »

HI there.
I have received a letter from Capital One saying my account has now been 'set up on the reduced payment plan' and I will receive a separate letter explaining the dates and the amount of repayment separately. they also say 'Enclosed you will find a Default Notice. We've issued a Default Notice because you or your appointed representative have entered into a long term payment plan for less than the required minimum amount on your account. This means you are in breach of your agreement. The default will not affect your agreed payment plan.' ---- Do I want them to default me?
What in effect does this mean?

This Notice of Default served under section 87 (1) of the Consumer Credit Act 1974 is a bit intimidating.

Thanks for any help at all.

Assuming you are on a DMP, default is exactly what you want. Defaulting the account stops the interest and puts a definite date in time on your credit reference file for when the account relationship formally broke down. Defaults drop off the credit file after six years.

Some predators (notoriously Barclaycard) are very slow to default and mark the account as AP (arrangement to pay) for years - that stays on the credit file for six years after the account is settled so could be on their for years. For example my DMP is forecast at 9 years so if BC mark my file AP for the next 9 years that mark will be on my file for 6 years after the last payment. So 9+6 years = 15 years. I would much rather a default now and record disappears from credit file in 6 years.

supersaver2

Hi Guys,

Can i just say how fantastic you all are and what great advice you give! I'm building up the courage to make my first post on this board, been reading for weeks and hopefully going to face up to my debts soon. Reading what you all write is very encouraging though, this might be the best part of the whole forum.

KID77

Hi Coinmachine

I agree with January, you have broken terms of agreement so an extra £30 per month to creditors isn't going to make them like you anymore or treat you any better. Save it for f&f and as for credit file, partially settled may not look as good as fully settled but by the time your dmp ends most of your accounts should be off your credit file assuming they have defaulted xx

Hi Library

Once you have broken the terms of the agreement by not paying at least minimum payments, creditors are entitled to default you. The good thing about a default is that it then removes the account from your credit file after 6 year. so for us our dmp is set to last another 9 years but if all default soon then our credit file will look better before debt is paid off which will allow us to hopefully remortgage. As I say its not something you can help or fight against. Hope that makes sense.

Kid
Xx

little_library_lady

January2015 wrote: »

Assuming you are on a DMP, default is exactly what you want. Defaulting the account stops the interest and puts a definite date in time on your credit reference file for when the account relationship formally broke down. Defaults drop off the credit file after six years.

Some predators (notoriously Barclaycard) are very slow to default and mark the account as AP (arrangement to pay) for years - that stays on the credit file for six years after the account is settled so could be on their for years. For example my DMP is forecast at 9 years so if BC mark my file AP for the next 9 years that mark will be on my file for 6 years after the last payment. So 9+6 years = 15 years. I would much rather a default now and record disappears from credit file in 6 years.

thanks January and Kid!, yes I've just started a DMP with StepChange. The first payment doesn't come out until February.

timetosayenough

Hi everyone,
Ashamed to say I'm a bit of a lurker so feel a bit naughty asking for advice.

The problem I've got is everythings going wrong at the moment. I didn't pay my DMP last month due to having to get new glasses and these cost more than I accounted for. Mainly because I'm so short sighted that I needed to get the lenses thinned. Stepchange were great and I've notified my creditors.

Now I need to get the rear bushes done on the car. It's just been one thing after another. I'm panicking and really anxious.

Ive thought about making a token payment for next month and thought about doing that for March so that I can try and get a bit of money together. It all started when I had to have my dear old dog pts. Everythings gone wrong since.

I'm seeing my mental health nurse on Friday, see if I can get something for the anxiety. I;m already on antidepressants.

I just don't want creditors to think that I'm being awkward.

January2015

supersaver2 wrote: »

Hi Guys,

Can i just say how fantastic you all are and what great advice you give! I'm building up the courage to make my first post on this board, been reading for weeks and hopefully going to face up to my debts soon. Reading what you all write is very encouraging though, this might be the best part of the whole forum.

Congratulations - first post hurdle now passed We look forward to many more posts from you very soon :beer:

Puzzcat

little_library_lady wrote: »

HI there.
I have received a letter from Capital One saying my account has now been 'set up on the reduced payment plan' and I will receive a separate letter explaining the dates and the amount of repayment separately. they also say 'Enclosed you will find a Default Notice. We've issued a Default Notice because you or your appointed representative have entered into a long term payment plan for less than the required minimum amount on your account. This means you are in breach of your agreement. The default will not affect your agreed payment plan.' ---- Do I want them to default me?
What in effect does this mean?

This Notice of Default served under section 87 (1) of the Consumer Credit Act 1974 is a bit intimidating.

Thanks for any help at all.

Hi,
Agree totally with all the advice already given, but I will say that just because you receive a default notice doesn't necessarily mean they will mark your credit file as defaulted. BC are notorious for doing just this and even now they have sold my debt it is still not defaulted.
Puzz.x