DMP & Mutual Support Thread - Part 11

motivated

January2015 wrote: »

A*
Some people would have looked on the BC interest and charges as a setback - you looked on it as challenged. You knew they were wrong and you sorted them out. :j
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I certainly did
All thanks to you :dance:

I don't know where this confidence is coming from, honestly a while back I would have just buried my head even further. I am loving the DMP route. Halifax on the other hand have also added interest on 2 loans, I forgot about the repayment holiday I had last month. But I know they have heard from SC so will wait for any letters from them hopefully they will go easy on us too. Will be ready and waiting for any more bumps in the road. . I CAN DO THIS

motivated

Morning all

I have heard back from BC 2 this is their response.



"Thank you for your email. Please accept my apologies for the delay in replying to you.

In view of your situation I have refunded the late payment fee of £12.00, applied to your account.

I have been able to confirm with Stepchange Debt Charity, as your details have now been updated on their records, their offer of payment to us, is for £xxx per month.

Unfortunately, we cannot offer you any form of repayment agreement, however , what we can do to support you at this difficult time , is to suspend interest and fees on your account, Confirmation of this will be sent by letter to Stepchange"

As you are unable to make your contractual minimum payment at present , we will register a missed payment mark each month on your credit file.

It's very important to make you aware that at any point in the immediate future , we will issue a Default notice letter. A default will then be registered ,this will again , reflect on your credit file for 6 years and may impact your ability to obtain future credit.
which may impact your ability to obtain credit for up to 6 years.



Does this mean they haven't accepted our SC payment offer or is it me
Am I right in also thinking that a missed payment marker every month is not good
Please could someone explain this for me
thank you
M

January2015

motivated wrote: »

Morning all

I have heard back from BC 2 this is their response.



"Thank you for your email. Please accept my apologies for the delay in replying to you.

In view of your situation I have refunded the late payment fee of £12.00, applied to your account.

I have been able to confirm with Stepchange Debt Charity, as your details have now been updated on their records, their offer of payment to us, is for £xxx per month.

Unfortunately, we cannot offer you any form of repayment agreement, however , what we can do to support you at this difficult time , is to suspend interest and fees on your account, Confirmation of this will be sent by letter to Stepchange"

As you are unable to make your contractual minimum payment at present , we will register a missed payment mark each month on your credit file.

It's very important to make you aware that at any point in the immediate future , we will issue a Default notice letter. A default will then be registered ,this will again , reflect on your credit file for 6 years and may impact your ability to obtain future credit.
which may impact your ability to obtain credit for up to 6 years.



Does this mean they haven't accepted our SC payment offer or is it me
Am I right in also thinking that a missed payment marker every month is not good
Please could someone explain this for me
thank you
M

BC have acknowledged your SC payment offer and will accept it. They confirm this by stating they will suspend interest and fees on your account.

You are right the missed payment marker is not good. This is standard practice for BC though. If BC were to default you, the clock on your credit reference file for the BC account starts when the default is registered. So, let's say they default you on 1st April 2017. All records of the BC account will disappear from credit reference agency files shortly after 1st April 2023. It can sometimes take a couple of months for the files to be updated so realistically the information would be gone by summer 2023.

However, if BC continue to mark late payment markers these will not disappear until six years after the account is cleared/settled. So let's say your DMP is forecast to be 9 years from 1st April 2017. BC could potentially mark late payments from now right through to the end of your DMP in 2026 AND then for six more years after that. So you credit reference agency files could show poor credit history until 2035. This is why here on the DMP forum we all chase those defaults as quickly as possible.

It's not because we want credit in the future, but you never know what the future will bring and we consider it unfair that our credit records are tainted unfairly beyond the six year mark - and it is unfair because BC are not playing by the rules/regulations.

Hope that explains it for you. Keep writing to BC, thank them for suspending interest and charges, but continually point out you cannot meet contractual payments, it is clear you will be on a DMP for several years and you request they default you as quickly as possible. There are posts above with the relevant quotes you shoul put re. information commissioner and FOC.

motivated

Thankyou again January

I wasn't too sure but thank you for clarifying it for me.
I will be pushing for defaults as we go along but I suppose we have been lucky so far. All charges and interest stopped on 4 CCs even before we've made our first SC payment.

Just 2 loans to contend with now, will wait and see.
Still staying positive and am not regretting taking this path.
Will be drafting letters for BC for future reference, I have a feeling I will be needing them
M

Sazzie23

Sherrera wrote: »

Are defaults on a secured loan the same as for unsecured credit?
I have missed 2, soon to be 3, payments on my secured loan and although I have been in touch and explained it's he to ill health I am very worried that the process to take our house will somehow be triggered.

Hi Sherrera

Missing payments in a secured loan is like missing payments on your mortgage 'your home is at risk if you do not keep up with payments'.

Therefore your payment priority must be, mortgage and secured loan first, followed by council tax and utilities, followed by unsecured debt.

As another OP said, get in touch with a debt charity, Stepchange or CAB or CAP etc ASAP for advice on what to do. If you have any insurance which might cover the repayments, look at that. Try to increase your income, making sure you get all benefits entitled to. Some people find they need help from benefits advisors to get the payment they need, CAB are good for this, but there are others and I think there is a benefits thread on the board somewhere.

What did the secured loan co say? When I dropped my payments for a few months after a bereavement they were constantly in touch, without harassing me, to make such I could restart the payments and get back on schedule.

Saz

Sazzie23

muppetscotland wrote: »

I have been managing on our DMP for a year and had been managing to keep up payments on the "priority" bills of mortgage, utilities, secured loan x 1 and council tax.

Unfortunately I was in hospital and missed work for 2 weeks in February. As I am self employed that meant no cash and I missed the February and now March contractual payments to Central Trust secured loan for £30,000.

I called them to explain and they have been so incredibly nice and said that they would suspend chasing me till mid April for me to send them an income and expenditure form and details of my medical condition (which is chronic but has flare ups). While I am more than happy to comply, I do wonder why they're not being more "nasty" considering it's a secured loan. I am currently 2 months in arrears (around £800) and don't expect to be able to return to full payments till May.

When I do return to payments, will I also have to repay all the missed payments? Does our account remain in arrears till that's repaid?

I just was expecting the roof to cave in and am now worried because it hasn't :rotfl: I thought I was cool about my DMP but now I'm worried anew that this latest set back will risk our home.

I'm only paying a small amount to my other debts so there's no point cancelling them and rechanneling to the secured debt as it wouldn't cover the monthly payments. (But which otherwise would have been a good idea I know).

Any experience of Central Trust specifically or the general idea of falling behind on secured loan most appreciated.
Thanks

Hi, hope you are feeling better.

Different company but when I missed and dropped repyayments on my secured loan they set me a date every 30 days or so to be in touch to discuss. Easy time they where very pleasant but always explained that failing to repay on time could put my home at risk and also increase the total amount to repay and the length of the loan (at the time I couldn't have cared less. But I guess they have to say this). Once I was able to restart full repayments I did that for a couple of months then increased further to repay the outstanding amount which was cleared in around a year and I'm not back on schedule.

Saz

Sazzie23

heavenlyharry01 wrote: »

Hello

Can I ask a question about phone calls from creditors?

I have had two today to my mobile phone from the same DCA. I missed both calls as I was driving both times. First time they didn't leave a message, the second it was a recorded message asking me to call.
I requested the original creditor not to contact me via the telephone, but corespond in writing. But now they have clearly handed it over to a DCA.

Do you answer calls, and then tell them to write? Should I call back? Or wait for them to write, (which I'm sure they will if they can't make contact)?
Thanks in advance

I think I'd wait for them to write, personally, although I will talk to them now if they leave me a message. I don't ever knowingly answer a call to them as that can catch you unawares and leave you vulnerable. I like to be prepared.

Saz

Debtfreehopeful

Hi,
Just a quick question, with ref to defaults I stopped paying my creditors in January and my 1st SC payment is scheduled for May. Do you think I should write to my creditors asking to default my accounts in April?

Also would you advise eeking out my 1st payment to SC for a bit longer? My previous job came to an end in February and I have managed to find another job which starts tomorrow- as I wouldn't have a full months wage until the end of April SC were understanding for me to make the payment on 1st May. If I was to stall the payment I don't know what to say....

Thanks

sourcrates

Debtfreehopeful wrote: »

Hi,
Just a quick question, with ref to defaults I stopped paying my creditors in January and my 1st SC payment is scheduled for May. Do you think I should write to my creditors asking to default my accounts in April?

Also would you advise eeking out my 1st payment to SC for a bit longer? My previous job came to an end in February and I have managed to find another job which starts tomorrow- as I wouldn't have a full months wage until the end of April SC were understanding for me to make the payment on 1st May. If I was to stall the payment I don't know what to say....

Thanks

Why not wait six months ?

By that time most, if not all of your accounts will of been defaulted and sold on, surprisingly debt purchasers are easier to deal with than original creditors are, everything can be done from the debt collectors website, and you will have a nice emergency fund established too.

Just food for thought.

Floopy2009

Just a quick one i have stopped payments in Feb on my credit cards etc and will be going self managed once defaulted and sold on. Just wondered how long does it take to get sold on and dca contact you i presume you will get a letter who the debt has been sold on to ?