DMP & Mutual Support Thread - Part 11

Debtfreehopeful

Thank you
When you want SC to delay the start of the DMP do you have to give them a reason? Think that's all my questions! :rotfl:

somuchindebt

Hello, I have a question regarding two of my loans. When I took them out the interest was added at the beginning to the total balance. When accounts were frozen and I went on DMP balances outstanding would include the interest. With credit cards or overdrafts interests are frozen but these loans are not (although balances are not growing, interest is included). Is there anything I can do and have I got any chance to get these balances reduced?

sourcrates

somuchindebt wrote: »

Hello, I have a question regarding two of my loans. When I took them out the interest was added at the beginning to the total balance. When accounts were frozen and I went on DMP balances outstanding would include the interest. With credit cards or overdrafts interests are frozen but these loans are not (although balances are not growing, interest is included). Is there anything I can do and have I got any chance to get these balances reduced?

Hi,

Your only recourse is to complain to the original lender about the front loaded interest.

Then if no joy, go through the financial ombudsman as per normal.

somuchindebt

Thank you Sourcrates, the loan is actually still with them. I wasn't aware, if this is frown upon by financial ombudsman, so will definitely look more into it!

sourcrates

somuchindebt wrote: »

Thank you Sourcrates, the loan is actually still with them. I wasn't aware, if this is frown upon by financial ombudsman, so will definitely look more into it!

They will look at it on balance of fairness to both sides.

They may find in your favour, they may not, but it's your only option if your not happy.

January2015

Debtfreehopeful wrote: »

Thank you
When you want SC to delay the start of the DMP do you have to give them a reason? Think that's all my questions! :rotfl:

I just told them the date I wanted to start my DMP - but I only delayed it by 2 months at the start. However, with hindsight I would have told them I wanted to delay it x number of months to allow me to build up an emergency fund. That's all you need to say if they even ask. It's yoour DMP - they are just there to help you administer it.

Billy12345

Debtfreehopeful wrote: »

Thank you
When you want SC to delay the start of the DMP do you have to give them a reason? Think that's all my questions! :rotfl:

Hi, like a lot on here i started my DMP straight away without building up an emergency fund which is a bit of a pain. SC never advised me to build up any fund but I dont think its in their remit to advise this. I have found some breathing room at the minute by telling them I have had a car repair bill (sadly its true though:mad:) and they were really helpful at agreeing a two month token payment period so i can pay it off. I wouldnt have thought they will have an issue with it, just tell them you need a few months before you begin or do what others have done and stop paying anything for a few months but tell your creditors you are dealing with SC and they will be in touch, that way you can build up a fund and start with SC later.

Obviously your choice but I wish I built up an emergency fund before taking the plunge, sourcrares, january2015 and others can no doubt advise further if needed.

Good luck with your DMP. Touch wood, mine is going great so far but I'm still a newbie :beer:

Debtfreehopeful

Thank you to everyone who's taken the time to give me further info and advice, I really appreciate it. Things are so much clearer for me and I guess I just wanted some reassurance that the repercussions aren't as bad as they make out on the TV with bailiffs turning up on your doorstep and being plagued with phone calls- letters I can deal with no problem!

Debtfreehopeful

Sorry- me again!
I've just gone to cancel my direct debit for my Tesco loan and CC and have noticed that RBS administer the finance. As I've applied for a basic bank account with Nationwide, I'm not sure if they are part of RBS?! If so I was thinking of applying for a basic bank account with Cooperative Bank- will my money be safe there? Thanks

BeingDebtFreeStartsHere

Billy12345 wrote: »

Hi BDFSH

We are in the same boat here, I am contacting my creditors on Wednesday as I paid the usual amount to SC in january and having to go on token payments for a few months. I havent reveived anything from SC yet so Ill be giving them a nudge too, hopefully ill hear before Wednesday and I wont have to. You are a little ahead of me so i'm watching your posts with interest

Let me know if you get any hassle. I have the creditors numbers ready and emails all prepped and ready to go.

I did get a letter from Sainsburys who are a bit of a pain, saying i havent made the payments in January as agreed and to contact them, that was all because i pay SC by standing order on the 17th of the month and had to pay early in December so while they got their December payment early they got the January payment on or about the 25th which is normal, fingers crossed they will realise this when i call on wednesday.

Ill let you know how i get on with the rest :beer:

Billy

Hi Billy,

The first reduced SC payment is due out tomorrow :eek:

Fingers firmly crossed SC have amended the direct debit - I did get written confirmation of the change from SC so it should all be ok.

Will let you know if we get any hassle from the creditors!!

Hope all goes smoothly for us both

Good luck to all the newbies just starting out on this journey - there is always a solution to any difficulty you may encounter along the way.

Motivated - how did the telephone call to SC go??

Take care,

BDFSH x