DMP & Mutual Support Thread - Part 11

sourcrates

Talia74 wrote: »

Hello Everyone, We are going to start a DMP with SC, Following the excellent advice on here we will be starting it in July to give us time to build up an emergency fund and also to cover ourselves until we have changed to a basic bank account and sorted our direct debits out,

What we would like to know if someone would be kind enough to help is, we have 2 credit cards with Barclaycard and my husband banks with Barclays, we are already 2 months in arrears with both cards, now stepchange has suggested we make a token payment to them each month until we start the DMP, which is not a problem but our fear is that if we do this it will flag up and they will cotton on and try to grab any money in the bank account, as we know they have the right to offset,

Ideally we would look at making a token payment no later than the end of this month (when our new bank account should all be sorted) but stepchange say we should send a token payment asap? what would everyone advise on this please?

Really, i wouldn't bother with token payments, your going to default anyway, why delay the inevitable ?

Banks have processes to run through, its unlikely they will be on the ball that quickly to be honest.
Anywere else you can hide the money till the new accounts opened ?

Talia74

Thank you for your reply
I assume from reading posts on here that defaults are what we want to happen? but I also thought that the token payments were just a way of staying in 'contact' although my first thought was to NOT pay anyone anything (11 creditors - just over £50K in total ) until a new bank account is up and running!

Sorry if any of my questions seem a bit silly, its just that we are brand new to this, although very happy to have our heads out of the sand, finally!

sourcrates

Talia74 wrote: »

Thank you for your reply
I assume from reading posts on here that defaults are what we want to happen? but I also thought that the token payments were just a way of staying in 'contact' although my first thought was to NOT pay anyone anything (11 creditors - just over £50K in total ) until a new bank account is up and running!

Sorry if any of my questions seem a bit silly, its just that we are brand new to this, although very happy to have our heads out of the sand, finally!

Dont worry, its perfectly understandable that you have questions.

Ideally you want defaults as soon as possible, only way to achieve that is either to pay nothing for a few months, or pay considerably less than the contracted payment would be.

Myself, i would simply write to each creditor, inform them your seeking help from stepchange, and a DMP will be the most likely result of this, tell them your taking some time to assess your situation, and you anticipate payments will begin in July.

Stress the fact you will keep them informed of any changes to this.

Thats it, job done.

Talia74

Thank you so much, your advice sounds like a good plan, will make a start on those letters!, should we quote our stepchange ref. number in the letters at this stage?
So pleased we have finally made steps to get out of this mess, I know its going to be a long haul (9years if they all freeze interest/charges) but the relief even after 2 hours on the phone to stepchange is immense

sourcrates

Talia74 wrote: »

Thank you so much, your advice sounds like a good plan, will make a start on those letters!, should we quote our stepchange ref. number in the letters at this stage?
So pleased we have finally made steps to get out of this mess, I know its going to be a long haul (9years if they all freeze interest/charges) but the relief even after 2 hours on the phone to stepchange is immense

Yes quote the SC ref number by all means.

motivated

Hi all

Please forgive me if this is a really stupid question

I have logged onto my DMP and it says Annual review date 2018 and my estimated DFD April 0008 I cant work out when this is as I was told I was looking at approx. 7 years

Am I just being thick
M

MrsSammyB

BeingDebtFreeStartsHere wrote: »

Ooh MrsSammyB I need advice!!!

Co-op are our last predator not to issue a default and it is driving me mad!! :mad:

What did you do to get the default? What did you say in your letter?? They threatened a default in November but it still has an AP marker on our credit report

Any help gratefully received.

Take care,

BDFSH x

Hi BDFSH,

I have been token paying them since around November last year to try and force a default, but I just wrote them a letter saying I wanted an official complaint raised as they've known about my financial difficulties since May 2015 and had not registered a default. It was a short letter, said I felt they weren't treating me fairly by not defaulting me and as a resolution to my formal complaint, I wanted a default immediately, backdated to may 2015 and a refund of all interest and charges since then. Voila - loan written off and no default at all! It's honestly worth a try xx

MrsSammyB

heavenlyharry01 wrote: »

That's awesome news! Well done.
I missed what your complaints are regarding though, is it the time they have taken to default you?

Yes, simply that! I have complained to all creditors for not defaulting me and have asked as a resolution to default me and backdate default to May 2015 (when I stopped paying) and refund any charges and interest since then. Had a result with lloyds too, they refunded me, added a backdated default and sent me £150 cheque for the inconvenience! Still awaiting some replies, so will keep you updated xx

[Deleted User]

motivated wrote: »

Hi all

Please forgive me if this is a really stupid question

I have logged onto my DMP and it says Annual review date 2018 and my estimated DFD April 0008 I cant work out when this is as I was told I was looking at approx. 7 years

Am I just being thick
M

No such thing as a stupid question, motivated. However long we have been on our DMPs there often seems something unusual or unexplained that comes along to confuse us.

I can't understand the end date of your DMP either, it's certainly not you being 'thick'. Why not phone SC, if that's your DMP company, and ask them ? They don't like DMPs to go on for too long and if they told you at the outset that it would take you about 7 years that should be what it will take. Don't worry about it too much and give them a call.

Good Luck:beer:

BeingDebtFreeStartsHere

MrsSammyB wrote: »

Hi BDFSH,

I have been token paying them since around November last year to try and force a default, but I just wrote them a letter saying I wanted an official complaint raised as they've known about my financial difficulties since May 2015 and had not registered a default. It was a short letter, said I felt they weren't treating me fairly by not defaulting me and as a resolution to my formal complaint, I wanted a default immediately, backdated to may 2015 and a refund of all interest and charges since then. Voila - loan written off and no default at all! It's honestly worth a try xx

I will definitely be giving that a try - thanks for the advice

I'll keep you posted!

Take care,

BDFSH x