DMP & Mutual Support Thread - Part 11

Bouncybubbles

Does anyone know what I should be sending to SC in regard to letters I receive? Do I email them a copy of everything eg. Had a letter from co-op basically demanding I pay my OD off. Or do I only send them letters if it is regarding the debt being sold to other companies? Thank you

Pc2003

If your dmp is quite new bouncy bubbles I would forward the letter on to sc with your reference written at the top and I would send a letter back to co -op advising you have sent letter to sc and all further correspondence should be sent there

Mkl79

Hi,does anyone know the rules (if any) of starting a small savings account whilst on a DMP? I dont mean an 'emergency fund' i mean something seperate,like a pension or a small ISA like £5/10 a week,do you have to disclose any savings that you start AFTER you enter a DMP? Or would a pension/ISA provider do credit checks?
I know saving whilst in debt is not a great move but i am paying a reasonable amount to my DMP each month and would like to think about saving a little money up for afterwards as i will be pretty old by the time my DMP ends!

Sazzie23

Mkl79 wrote: »

Hi,does anyone know the rules (if any) of starting a small savings account whilst on a DMP? I dont mean an 'emergency fund' i mean something seperate,like a pension or a small ISA like £5/10 a week,do you have to disclose any savings that you start AFTER you enter a DMP? Or would a pension/ISA provider do credit checks?
I know saving whilst in debt is not a great move but i am paying a reasonable amount to my DMP each month and would like to think about saving a little money up for afterwards as i will be pretty old by the time my DMP ends!

Hi Mk

Actually it is expected for you to save, for example if you are claiming £xx for car repairs or £xx for house repairs then it's expected you would save this and use it when the bill comes up (not spend it on replacing garden troughs like me :rotfl:).

Also as you'll have read on here, you need an emergency fund fo breakdowns/disaster etc.

It's ok to start a savings account though I think many people use an old one they've had loitering somewhere. Possibly easiest to open a new one with somewhere you have a safe bank account but I think it's ok to shop around if you want, I haven't needed to try that myself.

Saz

Spoonhead88

This month has not been great:

Made my £145 payment but out of the 3 creditors I have, only one of the debts was reduced, Lloyds get £21.57 a month but they added £12 in late fees and £16.07 interest which just increased the debt.

The Santander loan debt is also increasing I just feel like giving up. Santander phoned me after I letter i sent about not charging interest and they told me they are not because the interest was front loaded on the loan. The letter they sent me when I first started to the dmp stated that interest would still be charged.

[Deleted User]

Spoonhead88 wrote: »

This month has not been great:

Made my £145 payment but out of the 3 creditors I have, only one of the debts was reduced, Lloyds get £21.57 a month but they added £12 in late fees and £16.07 interest which just increased the debt.

The Santander loan debt is also increasing I just feel like giving up. Santander phoned me after I letter i sent about not charging interest and they told me they are not because the interest was front loaded on the loan. The letter they sent me when I first started to the dmp stated that interest would still be charged.

Sorry for your bad news, Spoonhead. Sending a big hug your way.

If you are on a DMP with someone like Stepchange I'd be very surprised if creditors could charge 'late fees' as they know when the money will reach them and exactly how much you'll be paying as part of the agreement they accepted with SC. I know to my cost that Lloyds are very slow to stop adding interest:mad: but late fees when on a DMP is a new one on me. I hope someone more experienced and knowledgeable than me will come along soon and offer you some advice:).

Can I ask, is your DMP a very new one and the system hasn't caught up with developments yet? There are sometimes oddities in the payment schedules and reporting for the first month at least:(.. I've been away helping a relative for a few weeks and have been totally offline. You may have already told your story and I'm sorry not to know all the ins and outs of it. So many posts on here in my absence, I'm going to have days of catching up to do;)

Good Luck in sorting it out. Please keep us posted.

Spoonhead88

carbootcrazy wrote: »

Can I ask, is your DMP a very new one and the system hasn't caught up with developments yet? There are sometimes oddities in the payment schedules and reporting for the first month at least:(.. I've been away helping a relative for a few weeks and have been totally offline. You may have already told your story and I'm sorry not to know all the ins and outs of it. So many posts on here in my absence, I'm going to have days of catching up to do;)

Good Luck in sorting it out. Please keep us posted.

Hey, thanks for the reply. Yeah, my dmp started in Jan this year and Lloyds took awhile to agree to it. Hopefully
it will start running smoother now.

Puzzcat

Spoonhead88 wrote: »

This month has not been great:

Made my £145 payment but out of the 3 creditors I have, only one of the debts was reduced, Lloyds get £21.57 a month but they added £12 in late fees and £16.07 interest which just increased the debt.

The Santander loan debt is also increasing I just feel like giving up. Santander phoned me after I letter i sent about not charging interest and they told me they are not because the interest was front loaded on the loan. The letter they sent me when I first started to the dmp stated that interest would still be charged.

Hi Spoonhead88,

I was a little confused about the loan situation, usually if a loan is front loaded with interest then the total you owe at the start of the dmp should only go down. If interest is being added monthly then it isn't front loaded. You would be able to find this information from your original loan application.

With regards to late payment fees you need to ask your creditor to move the due date to fit with the date of payment from SC. Unfortunately some Creditors don't do this unless you ask them to.
I am sure it will settle down after a few months have you written to Lloyds to request they stop the interest?

Puzz. x

Puzzcat

Mkl79 wrote: »

Hi,does anyone know the rules (if any) of starting a small savings account whilst on a DMP? I dont mean an 'emergency fund' i mean something seperate,like a pension or a small ISA like £5/10 a week,do you have to disclose any savings that you start AFTER you enter a DMP? Or would a pension/ISA provider do credit checks?
I know saving whilst in debt is not a great move but i am paying a reasonable amount to my DMP each month and would like to think about saving a little money up for afterwards as i will be pretty old by the time my DMP ends!

As Sazzie says 'saving' is a very important part of a dmp working, I have a few separate saving accounts and then lots of e accounts off of my bank account which are all named, car, Christmas, birthdays, emergency fund etc. Hopefully if you have an online bank account you can do something similar.

Puzz. x

Puzzcat

Bouncybubbles wrote: »

Does anyone know what I should be sending to SC in regard to letters I receive? Do I email them a copy of everything eg. Had a letter from co-op basically demanding I pay my OD off. Or do I only send them letters if it is regarding the debt being sold to other companies? Thank you

Hi BB,

I never sent SC anything, if i was concerned about a letter I would either ring them or come on here!! The only time you really need to contact them is when your debts are sold to DCA's to ensure they have correct payment details (although this can be done online through your SC account). I have kept all letters I have received and after 2 years have had to start a new file.. I don't get many now mind... kind of miss the post...!

Puzz. x