DMP & Mutual Support Thread - Part 11

January2015

Sazzie23 wrote: »

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

Lending Code Section 224 states:

• Subscribers should consider reducing or stopping interest and charges when a customer evidences that they are in financial difficulties. Such reduction/suspension decision should be based upon an income and expenditure statement indicating that they are unable to make repayments sufficient to meet contractual terms. Where a customer is able to make only token payments, their debt should not increase as a result of interest and charges levied. The assessment should reflect the customer’s lack of ability to pay rather than the stage an account has reached in the arrears cycle or whether they are using free sources of debt advice. Where a firm declines to allow concessions, they should be prepared to explain why to the customer or their adviser if requested to do so.

• Section 225 states:
  
  • It is inappropriate for interest and charges to continue to be taken where the result would be that the repayment period for the customer becomes excessive. In forming a judgement on what might be excessive, a subscriber should take into account the type of product and the individual circumstances of the borrower.

heavenlyharry01

Thank you soooo much for your help.

My husband and I are thinking about what to do...whether to just default without the DMP or go with the DMP.

I'm not majorly bothered about the AP markers...no intention to move and seriously bad with money so it's good if I can't get credit!! I'm due a large inheritance within the next two years (my dad died and the house is being split but it's all dependent on when my dads partner moves from the house which has to be within the next two years).

Can I ask another question if we go down the default without a DMP route??

Should I inform the creditors now? That I'm seeking advice?

make_the_change

Stupid question.... I have a very high overdraft debt and its not been defaulted despite paying hardly anything back in 2 1/2 years... can an overdraft be defaulted? Do we have to treat overdrafts differently to store cards / credit cards / loans etc...?

sourcrates

make_the_change wrote: »

Stupid question.... I have a very high overdraft debt and its not been defaulted despite paying hardly anything back in 2 1/2 years... can an overdraft be defaulted? Do we have to treat overdrafts differently to store cards / credit cards / loans etc...?

Eventually the bank will realise the account isn't been used and will call in the overdraught.

They will give you usually 14 days to settle it, otherwise a default will be registered.

More difficult with OD's as you are not required to make regular payments, so can take a while for the bank to realise.

make_the_change

sourcrates wrote: »

Eventually the bank will realise the account isn't been used and will call in the overdraught.

They will give you usually 14 days to settle it, otherwise a default will be registered.

More difficult with OD's as you are not required to make regular payments, so can take a while for the bank to realise.

This is the one debt I am struggling with as its so high and it's been 2 1/2 years and no default. All they do is put on hold and then threaten to send someone round to my address...

sourcrates

make_the_change wrote: »

This is the one debt I am struggling with as its so high and it's been 2 1/2 years and no default. All they do is put on hold and then threaten to send someone round to my address...

You could write to them, explain the situation, ask to be defaulted so the debt can be added to your DMP, can't hurt can it.

abby1234519

January2015 wrote: »

Lending Code Section 224 states:

• Subscribers should consider reducing or stopping interest and charges when a customer evidences that they are in financial difficulties. Such reduction/suspension decision should be based upon an income and expenditure statement indicating that they are unable to make repayments sufficient to meet contractual terms. Where a customer is able to make only token payments, their debt should not increase as a result of interest and charges levied. The assessment should reflect the customer’s lack of ability to pay rather than the stage an account has reached in the arrears cycle or whether they are using free sources of debt advice. Where a firm declines to allow concessions, they should be prepared to explain why to the customer or their adviser if requested to do so.

• Section 225 states:
  
  • It is inappropriate for interest and charges to continue to be taken where the result would be that the repayment period for the customer becomes excessive. In forming a judgement on what might be excessive, a subscriber should take into account the type of product and the individual circumstances of the borrower.

Yes!! I have already sent two letters but I will definitely use this when they reply and say no

Tiggerlou

Hi all.... first payment went out to stepchange at the start of the month to be hit yesterday with an overpayment of tax credits of nearly £8000! Does anyone know if you can add this to the dmp as some threads I have read say you can and some say otherwise.... I am still waiting for stepchange to answer me x

Perpetual_Miser

Hello,

I'm coming up to my first annual review with StepChange next month.

For those who've been through this, what will be involved? Will they contact me or should I resubmit my budget?

I'm not yet in a position to increase my monthly payment by a significant amount but I would like to make a nominal increase to show progress.

Thanks

abby1234519

Perpetual_Miser wrote: »

Hello,

I'm coming up to my first annual review with StepChange next month.

For those who've been through this, what will be involved? Will they contact me or should I resubmit my budget?

I'm not yet in a position to increase my monthly payment by a significant amount but I would like to make a nominal increase to show progress.

Thanks

With payplan they do your budget again – income and expenditure. With me, they decided I had another £3 to spare so my payment went from £100 to £103

They have to do it every year I guess to show creditors that you are actually being managed