DMP & Mutual Support Thread - Part 11

Dubstar

Been reading and keeping up with you all, great to see even more positive stories!

My Stepchange DMP 1st payment went out on 1st August and Lloyds Credit Card, Post Office CC and MBNA all have put to 0% but Lloyds over draft want to charge 19.95% and I have not heard about the Lloiyds loan yet so I will be contacting them as not fair that Lloyds are treating the different products differently! Will call them first but if no luck I will send the letter. Thanks for that one.

It is my first month that I have not lived off credit! I have the money ready to put Diesel in to go to work next week and feel more in control than ever! The advice here helps so much giving me the confidence to know they can't control me.

sourcrates

muddlepops wrote: »

Thank you, Sourcrates. I'm probably just getting a bit ahead of myself. Step change have cancelled my direct debit for the next 3 months or until I'm actually made redundant/ benefits are awarded and then they can recalculate. I've just been googling like crazy since cause I worked myself up as it was all sorted and now it's all unknown again. They didn't mention about making token payments in the mean time and I'm guessing that's because of the possibility of a DRO. I wish I could just switch my brain off for a month till it all hits the fan and then just deal with it. Work still have yet to give me a date and even when they do I wont be officially redundant until 3 weeks later. The thought of paying nothing until its all sorted is giving me the Heebie-jeebies. Stupid anxiety can go suck a fart.

Seriously, you could stop paying today, and apart from easily deflected letters and calls, you wouldn't get much bother.

Debt collection takes years sometimes, court action, although possible, is actually rare, and it's usually only after the debt has been passed from piller to post a dozen times.

I would not worry too much about the consequences of non payment, it's usually just the credit file that suffers.

Take your time, sort it out when you are ready.

LadyMorticia

Puzzcat wrote: »

This is the letter I sent, you will need to adapt it and ensure you do follow up with the FOS if you don't get the response you need. Obviously creditors are allowed to charge interest but at worst you may get the % reduced, but hopefully frozen...


Dear Sir/Madam

Re: COMPLAINT – CREDITOR NAME AND ACCOUNT NUMBER

As you are aware, I am in a DMP with Stepchange, reference number ******. The majority of my other creditors have agreed to the offer of payment and agreed to suspend any interest charges still accruing. They have accepted that to continue to charge interest would not assist me in my present financial difficulties, and can only serve to delay my efforts to repay this debt.

I have already paid considerable sums in interest to my account. If interest charges continue, the monthly installments I am paying will only just cover that interest. Also, the cooperation of my other creditors who have agreed to freeze interest already would be put at risk.

I am aware that you subscribe to the Lending Code which states that lenders will consider reducing or suspending interest and charges if these would cause the debt to increase or lead to the repayment term becoming too extended. I would therefore be grateful if you would reconsider your decision not to freeze the interest. This would mean that the monthly payments I make would actually reduce the balance outstanding to your company within a reasonable time period.

Please consider this letter as a complaint about the interest charges you are continuing to apply to my account. I would like to see these stopped immediately.
If you are unable to help me with this issue, I will have no alternative but to take this case to the Financial Ombudsman Service.

I look forward to hearing from you as soon as possible.

Yours faithfully

I'm having problems with Argos still charging alot of interest too, so this letter template really helps me as I didn't know what to say in my letter to them. Thank you.

funkyfish586

Hi All, we have been on a DMP for 6 years and have gone from 44k worth of debt to 15k

Due to various reasons / problems we are thinking of leaving the company we use and going self managed. I have read endless info on line and feel confident in setting it up ourselves but I have a few questions if any one can help?

1. How do i find out the information in order to set up Direct debits / standing orders? Do i phone the creditors?

2. Most of our debts have been sold to DCA and i rarely hear from them in terms of statements etc. How do I know that my payment is actually going against the debt?

Thank you in advance

LadyMorticia

Hey guys.

For those who have Littlewood debts on their DMP, do your statements say you're in arrears?

I get a statement from Littlewoods every month and my arrears amount keeps going up and this month it said my minimum payment is £1000! :eek: Also, it says that default charges might be added.

The debt is being dealt with my NCO (I think the part of the company deals with Shop Direct debts.)

NCO never answer my emails or messages through the site.

Is this just a computer-generated statement? It sort of just feels like NCO aren't talking to the main Littlewoods department etc, but I'm not sure what the actual process is with regards to monthly statements. All the other statements I get have my DMP payment details on and any details of reduced interest etc.

Thank you.

racht

LadyMorticia wrote: »

Hey guys.

For those who have Littlewood debts on their DMP, do your statements say you're in arrears?

I get a statement from Littlewoods every month and my arrears amount keeps going up and this month it said my minimum payment is £1000! :eek: Also, it says that default charges might be added.

The debt is being dealt with my NCO (I think the part of the company deals with Shop Direct debts.)

NCO never answer my emails or messages through the site.

Is this just a computer-generated statement? It sort of just feels like NCO aren't talking to the main Littlewoods department etc, but I'm not sure what the actual process is with regards to monthly statements. All the other statements I get have my DMP payment details on and any details of reduced interest etc.

Thank you.

I'm with Very (passed onto NCO) but my statements are the same as Littlewoods, always say I'm in arrears and the minimum payment is the arrears amount. There is no mention of the DMP on the statement anywhere. Mine also says that default charges may be added but I've been on my DMP for 2 years now and after a few issues at the start to stop them adding interest they have accepted all payments and never added any charges.
These are my only creditor not to default my account- I have complained but they refuse so looking into going self managed to drop payments to see if this makes a difference.

sourcrates

racht wrote: »

I'm with Very (passed onto NCO) but my statements are the same as Littlewoods, always say I'm in arrears and the minimum payment is the arrears amount. There is no mention of the DMP on the statement anywhere. Mine also says that default charges may be added but I've been on my DMP for 2 years now and after a few issues at the start to stop them adding interest they have accepted all payments and never added any charges.
These are my only creditor not to default my account- I have complained but they refuse so looking into going self managed to drop payments to see if this makes a difference.

Simply don't pay them until they sell on the debt.

No good !!!!! footing around with token payments, don't pay them, I guarantee you will be defaulted within 6 months, the debt will be sold on, then you can tackle it.

They want to play hard ball, well you can too !!!

Sazzie23

muddlepops wrote: »

Thank you, Sourcrates. I'm probably just getting a bit ahead of myself. Step change have cancelled my direct debit for the next 3 months or until I'm actually made redundant/ benefits are awarded and then they can recalculate. I've just been googling like crazy since cause I worked myself up as it was all sorted and now it's all unknown again. They didn't mention about making token payments in the mean time and I'm guessing that's because of the possibility of a DRO. I wish I could just switch my brain off for a month till it all hits the fan and then just deal with it. Work still have yet to give me a date and even when they do I wont be officially redundant until 3 weeks later. The thought of paying nothing until its all sorted is giving me the Heebie-jeebies. Stupid anxiety can go suck a fart.

Anxiety messes with your head til you can't think what decision you should make never mind actually make it. Stepchange have made the decision for you, there is no comeback, they are a well respected recognised debt management charity and if they have said don't pay, you don't need to pay, stop worrying.

My. Tip for the worrying is allocate a day or time for the worry. Like worry Wednesday's on that day or at that time, write down all the worry you have, some people do find it easier to do it oce a day. Then look at the worry, write possible suggestions, put them all on a box til next time and put them away. If you find yourself worrying in the meantime, say to yourself, and I know is sounds crazy, this is not worry time and think of something you'd like to do, eat steak, drink cold beer, see a concert and move your thoughts away from worry.

With a bit of practice, it does help, though you might still be overwhelmed and need to see the doc for some more guidance or treatment as appropriate. But don't struggle along with your worries any more than struggling with money cos neither helps :eek:

Saz

Sazzie23

LadyMorticia wrote: »

Hey guys.

For those who have Littlewood debts on their DMP, do your statements say you're in arrears?

I get a statement from Littlewoods every month and my arrears amount keeps going up and this month it said my minimum payment is £1000! :eek: Also, it says that default charges might be added.

The debt is being dealt with my NCO (I think the part of the company deals with Shop Direct debts.)

NCO never answer my emails or messages through the site.

Is this just a computer-generated statement? It sort of just feels like NCO aren't talking to the main Littlewoods department etc, but I'm not sure what the actual process is with regards to monthly statements. All the other statements I get have my DMP payment details on and any details of reduced interest etc.

Thank you.

Hi I think my HBOs statement used to do the same thing, but as I don't get statements now it's no longer a worry. Statements seem to stop generally after a year or so. I think they are usually computer generated and are aimed at those that have stopped paying. Us Slow DMP payers are not catered for by many creditors.
Try not to worry unless they are adding interest or charges and then complain.

Saz

Sazzie23

funkyfish586 wrote: »

Hi All, we have been on a DMP for 6 years and have gone from 44k worth of debt to 15k

Due to various reasons / problems we are thinking of leaving the company we use and going self managed. I have read endless info on line and feel confident in setting it up ourselves but I have a few questions if any one can help?

1. How do i find out the information in order to set up Direct debits / standing orders? Do i phone the creditors?

2. Most of our debts have been sold to DCA and i rarely hear from them in terms of statements etc. How do I know that my payment is actually going against the debt?

Thank you in advance

Hi, well done for moving to self managed. I haven't done this myself but I believe there's good advice on the NEDCAB website. From what I recall people saying you have to contact each creditor to get details of account payment information and at the same time ask for an up to date statement explaining you are going self managed, will continue paying but just need to review i&E.

Hope this helps, a self manager will probably give more accurate help soon.

Saz