DMP & Mutual Support Thread - Part 11

changeforbetter

s@sha wrote: »

Thank you. Yes, I wish they had told me that, because it may seem stupid, but it never occurred to me that my current account would be impacted in any way by starting a DMP. I have been suffering with depression, and now I'm on the mend it's been a big step for me to start sorting out this debt problem. So although it's a small matter, a little thing like this just throws me.
I will ditch the idea of asking to stay with FD and apply for a basic account from one of the providers mentioned on the main site article.

If you're looking for a new bank, I went with Co-operative Cashminder (that's their basic account) - they opened my one without much hassle and it's great to have a simple account without overdraft or connected to any other debts. When you put money in there feels good to see it there.

sourcrates

s@sha wrote: »

Thank you. Yes, I wish they had told me that, because it may seem stupid, but it never occurred to me that my current account would be impacted in any way by starting a DMP. I have been suffering with depression, and now I'm on the mend it's been a big step for me to start sorting out this debt problem. So although it's a small matter, a little thing like this just throws me.
I will ditch the idea of asking to stay with FD and apply for a basic account from one of the providers mentioned on the main site article.

I was just the same, I'd been with first direct 10 years when I had to do something about my debts, it was a meaning curve, but a valuable one.

[Deleted User]

s@sha

Sorry to hear of your bank account problems. Like has already been said, SC should have told you at the outset, before your DMP was finalised, that you needed to set up a 'clean' bank account. Do it as soon as you can now though.

I banked with Lloyds and at the outset of my DMP had an overdraft of £300 with them plus a maxed-out credit card with a balance of £15000:eek:. Lloyds never said anything about closing the bank account though. SC did advise opening a 'clean' account elsewhere so I set up a basic account at Nationwide and transferred all my DDs and incoming money there. The Lloyds one has remained open and the OD has been paid off. I must admit to using it from time to time all the way through my DMP, largely to pay in bags of loose change after occasional car boot sales. I then transfer it over to my Nationwide account electronically as I don't have a Nationwide branch nearer than 20+ miles away where I can pay in loose cash..

Not once has Lloyds refused to transfer the money or hung onto it to set off against debts. Mind you, it's never in there long enough, hours at the most;). Also, it never amounts to more than about £20 at a time. I assume the Lloyds account will stay active even after my DMP ends and as it is a fully-functioning account not a basic one I'm keeping my fingers crossed.

sourcrates

abby1234519 wrote: »

Quick Question - I'm not on a DMP - asking for husband. Can you reclaim charges for accounts on a DMP. For example - CC 1 was told going on a DMP, 6 months later they were still adding missed payment charges.

I understand why - its the process, but would he have any luck getting that 6 x £12 credited back to the account?

Yes of course you can.

You should not be treated any differently because of the DMP.

A complaint, is a complaint, and should be resolved to your satisfaction just like any one else's would be.

Sleepysophie

abby1234519 wrote: »

Quick Question - I'm not on a DMP - asking for husband. Can you reclaim charges for accounts on a DMP. For example - CC 1 was told going on a DMP, 6 months later they were still adding missed payment charges.

I understand why - its the process, but would he have any luck getting that 6 x £12 credited back to the account?

Hi there,
In my experience they all seem to have their own rules. I was successful in getting back several late payment charges and the interest that related to it along with an apology payment of £75 when I went through the CCs official complaints procedure accessible on their website. I was with StepChange at the time and they (I am sorry to say) were very little help when I asked for their advice. They just told me that the CC company could do what they were doing as we had broken the credit agreement. However, the response from the person from the credit card company was much more favourable. They contacted me within 48 hours of me sending them the online complaint too and the 'apology' payment went in as a faster payment to my current account on the very same day. £700 was refunded to my credit card in total. They claimed to not to have known I was on a DMP but acknowledged they should have been aware as they could see it on a linked account (bank account). Try going direct to the CC company and follow their complaints procedure, as I did. Good Luck!

Sleepysophie

s@sha wrote: »

Hi to everyone on the thread, I'm so glad I discovered this thread today. Many, many thanks to those who have offered such reassurance and good advice, I plan to sit and read the whole thread when I have time. I'm a long time member of MSE, but rarely post these days, although I do keep up with the news and emails.
I'm currently two months into a DMP with StepChange, but had a nasty shock yesterday when I discovered that my current bank, FirstDirect, will no longer let me have my current account with them, because I have a £2,800 debt on their Visa credit card, which has now been added to the DMP. Theyve given me 60 days notice of account closure, and advised that I will probably have to get a 'basic' account with a high street bank.
I know it's 'only' a bank account, but I'm quite upset, and feel a bit like I'm having the rug pulled from under my feet. StepChange gave me no warning that this would happen, and I've been with FD as a good, reliable customer for 25 years.( I have not had debt problems before, this is mostly as a result of marriage breakdown)
FD have brilliant customer service, I had nightmares with Lloyds years ago, which is why I moved to FD in the first place, and I'm worried about switching accounts to one that isn't so good and all sorts of problems possibly happening.
I know it's probably a good thing, but to be honest, I feel almost like I maybe should have just managed that debt myself, and SC should have told me what would happen if I added it onto the DMP?
I don't really even understand WHY i have to change the account, I still have my mortgage with FD, they seem quite happy to let me keep that, and I don't have an overdraft facility on the current account anyway, so I can't go overdrawn with them, so why do I have to leave?
Is it worth throwing myself metaphorically at their feet and pleading for mercy (playing up the 'loyal customer for 25 years, etc bit? I really don't want to swap, and I feel a bit scared by it all now....I know it's stupid but I'm frightened now what other nasty shocks this DMP might cause.

Hi,
I know its difficult but try not to let it affect you emotionally. Its just a bank and you're just a number (even if they do have exceptional customer service). I am sure you don't need to close the account you just need to use another one where they will not be able to move any funds you have in there to pay off other debt you owe them. It is just to protect you. I had to close my original account as I had an overdraft on it and they defaulted me etc (I had been with my bank 25 years too with a good record, and it did make me feel emotional). However, with nothing owing on the account, if its really important to you, just keep it open but don't use it until you're back on your feet again? Good luck.

Sazzie23

sourcrates wrote: »

Hi,

Ideally you should get all your accounts defaulted first before starting any kind of debt management plan.

Usually no payments for 6-8 months or so does the trick, if you don't get defaulted, you instead get "AP" markers (arrangement to pay) which will stay on your credit report for a further 6 years AFTER you have finished paying off your debts.

So getting defaulted and saving a good emergency fund, should be your first priorities.

Non of the debt charities will tell you this.

Once your account defaults, no further interest or charges can be added, the line is drawn in the sand so that 6 years from date of default, they will all disappear from your credit file.

Very important you do things in the correct order.

Hi all

I thought I'd chip in here, and explain that both SC and pay plan are funded in someway by the creditors, and it's therefore not in their interest to do this.

Whilst it may or not be (I haven't tried it) a good idea to stop paying and get defaults straight away, I'd say the vast majority on the DMP forum haven't done it that way. they've gone to SC etc asked for help, started a payment plan and further down the line have gone self managed, accruing defaults along the way. Some have been self managed from the off, again with or without defaults.
Clearly some like little miss sunshine have defaulted first, and that's fine if it worked for you, it's not how I chose to do it, but it may well be the way to go to get defaults early on and get rid of the interest.

So if you are going to do it this way, I think you've probably got to be prepared to be self managed straight away, stay strong when asked for payments, and not worry about missing payments. Make sure they don't have any contact details you don't want them to have for you. I've no idea whether Ccjs are likely taking this route, perhaps Little miss sunshine and Sourcrates or anyone else who has taken this route could advise.

Saz

Sazzie23

Sleepysophie wrote: »

Hi,
I know its difficult but try not to let it affect you emotionally. Its just a bank and you're just a number (even if they do have exceptional customer service). I am sure you don't need to close the account you just need to use another one where they will not be able to move any funds you have in there to pay off other debt you owe them. It is just to protect you. I had to close my original account as I had an overdraft on it and they defaulted me etc (I had been with my bank 25 years too with a good record, and it did make me feel emotional). However, with nothing owing on the account, if its really important to you, just keep it open but don't use it until you're back on your feet again? Good luck.

I still feel sad about having to lose the joint account we'd had for 25 years, I think it's about change and how we feel about change we've not controlled.

Chose to do something you'd like, such as opening a new account and getting the transfer bonus, might make you feel better. Be prepared to not get the bonus, then if you do get it, bonus literally :T

Saz

Sazzie23

Sleepysophie wrote: »

Hi there,
In my experience they all seem to have their own rules. I was successful in getting back several late payment charges and the interest that related to it along with an apology payment of £75 when I went through the CCs official complaints procedure accessible on their website. I was with StepChange at the time and they (I am sorry to say) were very little help when I asked for their advice. They just told me that the CC company could do what they were doing as we had broken the credit agreement. However, the response from the person from the credit card company was much more favourable. They contacted me within 48 hours of me sending them the online complaint too and the 'apology' payment went in as a faster payment to my current account on the very same day. £700 was refunded to my credit card in total. They claimed to not to have known I was on a DMP but acknowledged they should have been aware as they could see it on a linked account (bank account). Try going direct to the CC company and follow their complaints procedure, as I did. Good Luck!

Is there something in the lenders code about not adding charges when in financial difficulties. I'd agree SC are no help at getting charges refunded, they sort of claim this might happen but don't tell you how.

Saz

sourcrates

Original creditors don't take legal action on consumer credit debts, normally, not unless there's more to the story, or you owe a Hugh amount of money.

For example, you stop paying your credit card, it can take up to 6 months or so before the creditor would default you, then they may pass your account to a DCA to attempt collection, this may go on for a few more months, eventually they would pass the account back, and it's at that point they may choose to sell it on.

You then go through the same senario with the DCA that buys it, but this time there is the chance of legal action if you don't come to an agreement.

Basically you can safely wait 6-9 months or more with little chance of anything but the odd call or letter.

In the end it's how you want to play it, and what end result your after.