DMP & Mutual Support Thread - Part 11

kb_soma

LadyMorticia wrote: »

Hey lovelies.

Me again (sorry!) Having let my creditors know about the DMP, they're asking for the expenditure form from SC. Is this something SC send them or something I should? SC say that they'll let all your creditors know, but I'm a worrier!

SC always sent my budget to them, you could send it to them too, but think about the cost of a stamp. If SC have told you that they'll let your creditors know, you could always phone them to double check...

make_the_change

Hi All,

I sent my I&E statements to my creditors and my offer of repayment, I am going to be self managed. My biggest debt has accepted the offer and frozen interest. My second biggest has also accepted, frozen interest and charges and issued a default. Now just waiting on the other three. First lot of payments start next month!

FuzzyDF

Just completed the dreaded annual budget review with SC on the phone. The lady on the phone was so helpful. I should be debt free 2 years sooner than I thought :T

Challenger71

Went into branch and confirmed new bank account, went on live chat with SC but they said we needed to phone and husband was in work and spent his lunch break taking ID into new bank so will need to phone them tomorrow lunch time when we are together.

I am worried they are going to say we need an IVA due to the amount of debt.

Challenger71

make_the_change wrote: »

Hi All,

I sent my I&E statements to my creditors and my offer of repayment, I am going to be self managed. My biggest debt has accepted the offer and frozen interest. My second biggest has also accepted, frozen interest and charges and issued a default. Now just waiting on the other three. First lot of payments start next month!

Well done, how long did it take? Did you stop payments or send nominal payments?

make_the_change

Challenger71 wrote: »

Well done, how long did it take? Did you stop payments or send nominal payments?

I sent my letters with my details and offers on the 19th May and got two replies over weekend and today x

minx_01

Evening!

I am just starting out on a DMP with Stepchange.

I am totally responsible for incurring all of my debts, as I have been an idiot.

Part of my debt is an overdraft with Barclays, on a joint account with my partner.

I opened a new bank account with Lloyds to have my wages paid into, and to pay my DMP from.

My partner opened 2 new sole accounts, one for his personal use, and one to pay all our bills. We asked Barclays to transfer all the direct debits to the new bills account, and we arranged to transfer £700 each into this account every month to cover the direct debits.

Today they have taken Money from my partner's sole account to clear the overdraft on the original joint account, and now we have no money left in the bills account to cover the direct debits:(

I would be grateful for any help or advice anyone could give me.

Thanks! x

sourcrates

minx_01 wrote: »

Evening!

I am just starting out on a DMP with Stepchange.

I am totally responsible for incurring all of my debts, as I have been an idiot.

Part of my debt is an overdraft with Barclays, on a joint account with my partner.

I opened a new bank account with Lloyds to have my wages paid into, and to pay my DMP from.

My partner opened 2 new sole accounts, one for his personal use, and one to pay all our bills. We asked Barclays to transfer all the direct debits to the new bills account, and we arranged to transfer £700 each into this account every month to cover the direct debits.

Today they have taken Money from my partner's sole account to clear the overdraft on the original joint account, and now we have no money left in the bills account to cover the direct debits:(

I would be grateful for any help or advice anyone could give me.

Thanks! x

Unfortunatly this is called the right of set off, something they can quite legally do, however, they have to follow certain rules, and if they have not left you with enough funds for essential expences, you should write and complain, do this ASAP, and you should get some kind of refund.

Sazzie23

minx_01 wrote: »

Evening!

I am just starting out on a DMP with Stepchange.

I am totally responsible for incurring all of my debts, as I have been an idiot.

Part of my debt is an overdraft with Barclays, on a joint account with my partner.

I opened a new bank account with Lloyds to have my wages paid into, and to pay my DMP from.

My partner opened 2 new sole accounts, one for his personal use, and one to pay all our bills. We asked Barclays to transfer all the direct debits to the new bills account, and we arranged to transfer £700 each into this account every month to cover the direct debits.

Today they have taken Money from my partner's sole account to clear the overdraft on the original joint account, and now we have no money left in the bills account to cover the direct debits:(

I would be grateful for any help or advice anyone could give me.

Thanks! x

Hello and welcome,

Unfortunately as Sourcrates has advised, rule of offset has been applied, even though you accept all the debts are down to you, (and we don't judge on here), the joint account is classed as joint debt and will continue to affect OH's. Credit status and accounts. That said, I thought they were supposed to give you written warning that offset was to be applied. Also I thought Barclays had an agreement with Sc not to do this?

I would a. Get OH to ring and complain to bank
B. Get OH to open a new account away from anywhere you have joint or solo debts.
C. Contact the direct debit holders, if utility bills, council tax etc, explain you are in dealing with SC and you accept they are priority creditors but can they give you a few weeks to sort it out. If the are creditors that you are adding to SC the DD should be cancelled anyway, just ring them up, quote SC and give your ref.
D. Call Sc and ask them if there is anything else you can do.

Try not to worry, once you get through the sticky start up, everything will fall into place.

Saz

Sazzie23

Challenger71 wrote: »

Went into branch and confirmed new bank account, went on live chat with SC but they said we needed to phone and husband was in work and spent his lunch break taking ID into new bank so will need to phone them tomorrow lunch time when we are together.

I am worried they are going to say we need an IVA due to the amount of debt.

Hi Challenger, they might advise you an IVA would be better for you, but they won't force you into anything you don't want. It's more about the amount of time to get to DFD (debt free date) than the amount of debt. My current DFD is 2031 and I am still on a SC DMP so living proof it's doable.

Not looked at your signature/previous posts but any reason you don't want an IVA, I couldn't for work reasons, but they tell me it can be a much better thing if you've a long DFD.

Saz