DMP & Mutual Support Thread - Part 11

sourcrates

jchrispin wrote: »

All my creditors defaulted in 2011 when I set up the plan so should drop off March next year. I presume you can't default twice?

You presume correctly !!

gawebb99

sourcrates wrote: »

You presume correctly !!

sorry im new to all this, what does it mean when a creditor defaults... and then 'drops off'

sourcrates

gawebb99 wrote: »

sorry im new to all this, what does it mean when a creditor defaults... and then 'drops off'

If you have missed payments, then a creditor can issue a "default notice", which is a legal requirement that gives you 28 days in order to bring your account up to date.

If you don't do this, then the account normally gets closed at that point and goes to collections.

Defaults stay on your credit file for 6 years, after which they disappear.
Most people prefer the creditor to default the account early on, so that you have a definite date when the default will be gone.

lots for you to take in at this stage I know !!!!

gawebb99

sourcrates wrote: »

If you have missed payments, then a creditor can issue a "default notice", which is a legal requirement that gives you 28 days in order to bring your account up to date.

If you don't do this, then the account normally gets closed at that point and goes to collections.

Defaults stay on your credit file for 6 years, after which they disappear.
Most people prefer the creditor to default the account early on, so that you have a definite date when the default will be gone.

lots for you to take in at this stage I know !!!!

thank you again sourcrates! yes lots to learn. but onwards and upwards

January2015

Puzzcat wrote: »

Quick question to those SM experts ...

When you sent in your i&e did you include all your creditors/debts and how much you pay them individually or did you do something else? I ask because on the NEDCAB I & E it includes all this info...

Love Puzz. x

Hi Puzz

I copied over all my predator info from SC into NEDCAB. Strangely it produced different figures for each creditor to SC figures. One was quite a bit higher (over £50 p/m higher) and all others lower. I just printed the NEDCAB generated letter, choosing the drop down option to say "my offerof payment has reduced to the pro-rata payment offer calculation is different to my previous DMP provider"

I took advice from blisteringblue and I also sent predators who had not ceased charging interest the I&E showing what they should be getting but stating I would only pay them £1 p/mth until they agreed to either cease interest or default the account. It worked very quickly.

I'm still very much at the start of the SM journey - but it all seems to be going really well so far. I immediately offered £1 token payments to all creditors for Feb and March because we had no emergency fund at all (read my diary and see the car troubles since we started the DMP ). All but one predator came back they are happy with this offer. The one that wasn't is only a few pounds a month anyway so I am not too bothered.

January2015

carbootcrazy wrote: »

Thanks so much Puzz and blisteringblue for your clear and full replies and your unfailing patience. What stars you both are:A

There's just one final question on the subject (I promise;))

If you can pay extra to one creditor at any time don't the others get a bit nasty about it? If we have to send them all regular updates of our creditors and the current debt balances they'll know who is getting preferential treatment.

When I mentioned to SC that I hoped to pay extra to my smallest creditor to wipe out my overdraft completely they just said that the other creditors 'won't like it'. Stupidly I didn't ask what they might do about it:o

When I was with SC I had an account with Very (catalogue). It was on buy now pay later and if I paid only the amount SC collected, my £1200 debt would have soard to over £1600. I wasn't having that. I made direct payments to Very without even discussing with SC and just logged on and updated the amount owing on my SC online debt management account. When I did a review SC never said a word about how one debt had miracously been paid and cleared over 5 or 6 months rather than over the agreed 9 year forecast for my DMP:D

Not one of my other 11 creditors complained to either myself of SC. I don't expect they were that bothered to look too closely at my credit files each month.

Just pay extra to who you want to, when you want to. It's your money, your debt and a DMP is an informal arrangement after all:beer:

[Deleted User]

As someone so wisely said in a recent post to someone else, ''there's a lot to take in''. How right you are:beer:. I've been on my DMP for exactly 3 years and am still learning something new practically every time I read this thread:T

I just dropped in today to say a massive 'thank you' to Brogden, January, Puzz, sourcrates, blisteringblue (and anyone else I have forgotten but has been greatly appreciated nevertheless):o for the constant help, advice and patience with my recent spate of questions:beer:.

Thanks to this thread I think I've got things clear in my mind at last:j

make_the_change

I posted my letters a week ago to creditors about working with SC and token payments. One of them usually harasses me until they get through to me about sorting out a payment plan. I was due to speak to them as of the 1st Feb and have received no calls or texts at all! I take that as a positive? Just waiting on the post each day for the responses.

Fairyfingers

BeingDebtFreeStartsHere wrote: »

Oooooh I would love a default from Barclaycard!!! How long have you been paying them on your DMP??

BDFSH x

I too have had my BC official default :j I began my DMP in July 15 with SC and am paying 0.25% of my balance, but I think the final push was sending a CCA request and getting a curt reply with a reconstituted agreement even though it's a pre 2007 debt. I suspect they have realized it's unenforceable and plan to sell it on before it's too late.

So now 8 months on all 4 of my OP have defaulted me, CCA'd all of them but only 2 have bothered to reply!! So my plan is to pay as little as possible each month and save as much as I can for F&F, as I suspect all are unenforceable which could be a good bargaining tool when the time comes.

In the short time I've been on here the advice has been invaluable and I have spent many hours researching CCA's and F&F there's a great site by the Office of Fair Trade with plain English CCA guidance http://nmil.org.uk/Library/Guidanceonsections77_78_79oftheConsumerCreditAct1974.pdf

Basically it says you do still have to pay but they can't hassle you if it's unefrocable. :T

make_the_change

Fairyfingers wrote: »

I too have had my BC official default :j I began my DMP in July 15 with SC and am paying 0.25% of my balance, but I think the final push was sending a CCA request and getting a curt reply with a reconstituted agreement even though it's a pre 2007 debt. I suspect they have realized it's unenforceable and plan to sell it on before it's too late.

So now 8 months on all 4 of my OP have defaulted me, CCA'd all of them but only 2 have bothered to reply!! So my plan is to pay as little as possible each month and save as much as I can for F&F, as I suspect all are unenforceable which could be a good bargaining tool when the time comes.

In the short time I've been on here the advice has been invaluable and I have spent many hours researching CCA's and F&F there's a great site by the Office of Fair Trade with plain English CCA guidance http://nmil.org.uk/Library/Guidanceonsections77_78_79oftheConsumerCreditAct1974.pdf

Basically it says you do still have to pay but they can't hassle you if it's unefrocable. :T

Can you explain about debts that are over a certain amount of years old? Does it mean for example a card you have had for years and haven't used for x amount of years but still paying off?