Help Please

lyndseyb2009

I'm in a tricky spot and hope one of you lovely people can help me....

Cutting a long story short :
* DMP for 6 years with Churchwood - payments started at £300, now increased to £460 (54.99 fee)
* Churchwood "changing business direction" - passed my plan to Money Plus Group
*MPG have advised due to my income , I can now afford to pay £586 (which I agree with) - but agreeing to this will mean their fee is no longer fixed at what I agreed to pay Churchwood and they will increase my fee to £101 a month (which is CRAZY!)
* Total debt is now just over £3500 - which I am over the moon about as I was being told it was £2000 higher (I re-checked all balances directly with my accounts)
* I had planned to take all of the accounts back myself (there's 5 in total - 3 of which are with Ulsterbank) and set up re-payment plans with them myself - increasing my offers (almost doubling in some cases due to saving on potential fees) so the debts would be cleared in literally 4/5 months (4 months sooner than would be if I stayed on the DMP with MPG.
* Barclaycard agreed (balance @ just over 450) and I set up a standing order starting from next month
*RMA Resolve where not open on Sat but I plan to call them back tomorrow to speak with them.
* 1 Ulsterbank CC has a balance of £50.00 - which I plan to clear now
* 1 Ulsterbank Loan - balance £2200 & 1 Ulsterbank OD - balance of £400
* Ulsterbank have point blank refused to let me set up a repayment plan - it has to go through an appointed 3rd party - which infuriates me!
*UB suggested I speak to StepChange who may have been able to help me - went through all the details with StepChange and they have confirmed that as my balance is so low and the repayments I can make are pretty decent, they would not suggest I set up a new DMP with them and told me that I should deal with UB directly.
* I rang Ulsterbank Back and they have again refused to deal with me directly - they've said I have to go through a 3rd party (although not surprisingly they did confirm if I was ringing to clear the balance they would allow me to make a direct payment!)

So now I'm stuck.... I don't want to give in and give MPG £101 a month for managing accounts I know I can manage myself. StepChange have confirmed they can't help me......

Ulsterbank confirmed if I do not make a payment next month they would likely sell on my debt to a debt collection agency (not worried about that) but my main question is :

If I cancel my DMP - pay off the CC, set up repayment with RMA & Barclays (Barclays already set up) and let the Ulsterbank one go until they contact me.... what is the worst that can happen? Both accounts already have a default registered from 2010 - so due to drop off in 2016 , hooping to buy a house in 2017 so really don't want this to re-default (is that even possible??). I really also don't want letters threatening CCJ's etc - as I have come so far and I have the funds to make payments - the creditors just won't let me do it directly!

The Ulsterbank did say that the Debt company they pass the debt too would likely allow repayment plans - and by the time they contact me I could have 2 months worth of payments waiting to satisfy them and then make 2 more monthly payments and job done!

I already know that within the next few months I will be able to pay this debt off - it's so frustrating that they will not let me make 4 equal payments over the next 4 months just to end it.

Can anyone shed any light on whether this is a truly stupid plan or if it makes sense? It seems to make sense in my head but the ? around what would happen on my credit file with Ulsterbank does worry me... I've worked so hard to make sure my DMP was followed , never missed a payment since it started and have always increased when I have been asked to...... I would hate to undo this all over 1 bad decision.

I know my credit file is not good right now - but as of next year it could potentially start to go back up again - and I don't want to undo 5 years worth of defaults and go right back to "year 1 default" again or I can give up the dream of ever owning my own house for the foreseeable future.

(PS: The key reason I want to buy my own home is because I pay £1100 in rent in London and to buy in my hometown a house would cost me approx £65,000 - so my mortgage would be roughly £700 less a month - which is HUGE!)

Any advice will be thoroughly , thoroughly appreciated!

rockm87

Call stepchange, theyre FREE DMP.

lyndseyb2009

Thanks for the reply.

I spoke to Stepchange on Saturday and they confirmed they didn't think they could help me.... they did the "Statement of accounts" with me and I have a reference number etc but they did say they wouldn't put me into another DMP as my balances where relatively low and I would potentially be able to clear it in 4/5 months........

I don't realy want to go through the process yet again with PayPlan (another free service).

I don't understand why Ulsterbank are being so difficult! I am willing to pay them.....

aymz1983

Ulsterbank cannot 're-default' you for the debt. Once it defaulted n 2010, it will be off your file n 2016 regardless, unless it ended up going to a CCJ. Which is very doubtful as they would - as they've stated - send it to a debt collector who do accept payment plans.

Are you going to put the money aside whilst you wait for UB to sort it out and send it on? If you can, and you don't think you'd dip into it, it might be worth keeping the money to one side and when you know you've reached the outstanding balance just ring them and pay it in full. It could take them a while for them to send it on!

sourcrates

Hi,
Ok, easily sorted this, your plan makes perfect sense.


Stop paying the DMC the ridicules fee they have been extorting from you for however long, and cancel the contract you have with them.
You seem more than capable of self managing your finances from now on.


If ulster bank wont accept your payment directly from yourself, that's there problem, simply wait until they sell on the debt, then pay the DCA that picks it up, simply and easily solved.
If an account has already been defaulted, it cannot happen twice, it will stay on your file for 6 years regardless of whether its paid or not.


You should also look at making a claim against the DMC if there fee`s were not made clear to you, or you were not informed that a free alternative existed, both are good reasons for compensation.

Stevie_Palimo

I'd not bother with any new payment plan Company if that be a Charity or paid for one, The charity ones are meant to be worse and nosey to, They also seem to get more money from a person as opposed to a private Company, I'd personally deal directly with them or the debt collection side and make an agreement to pay and if you can save enough up as well then put an offer to clear the balance.

lyndseyb2009

Hello All,

Thank you so much for your replies!

I'd 100% put the money aside (my OH has said he'd keep it for me in his separate savings account which he doesn't use) and in 4 months I'd have accrued the amount needed to clear the debt. My OH is really sensible with his money and I know he wouldn't spend it (he fears me too much lol).

I was just worried about defaulting again after what seems to have been forever trying to get it all made right - but you've all put my mind at rest that they will not do this. I know the process for CCJ's - never had one but know from what I've read that they will at least write to you first before they proceed with Courts etc.

Should I be at all worried about late fee's and charges? Will they suddenly whack on a hefty late payment & interest fee leaving me worse off? I've heard when they resell the debt on - the debt companies will usually accept a much lower payment for clearing the balance?

Re: DMC charging me fees - I'm completely with you on this one, they did not make it clear at all at the start that there was companies who would be willing to do this all for free. I've spend the guts of £6000 in fees in the last 6 years which makes me feel quite sick - literally my outstanding debt paid off twice over! Going to have to look into re-claiming as it certainly was not made clear to me at all.

sourcrates

It makes no difference if they add charges, interest, or next doors cat to your account.
Once a debt is with a debt collection agency, the process follows a pattern, they will send letters asking you to pay, then usually after a couple of months, they will start offering discounts, usually the opener is around 30% off, and you should be able to negotiate a lot better than that.


So it make little difference what a creditor adds to the account, as you can get a good discount anyway.


Defiantly look into getting some, or all, of those charges back, initially follow the DMC `s complaints procedure, do it in writing, so you have a paper trail, if no joy, financial ombudsman is your next step.

lyndseyb2009

Hi Sourcrates,

Thank you so much. I've drafted an email to go the DMC I was with before and I will also print it off and post it recorded tomorrow.

I'm complaining because a) I didn't know non fee paying companies where available and b) when I started my plan, I was told a DMP would be my best course of action (despite the debt being nearly 20K) - I was deterred from an IVA as "it would affect my credit score massively - they failed to mention , after 6 years the debt would be wiped from my file and that a DMP was no better for my credit file.....

Also - had they of set me up with an IVA - I would be totally debt free now , it would have been concluded last month! If I had of stayed at the payment first agreed on my DMP - I'd have been paying it back for 8 years..... hardly the best option for me!

These companies make me angry, I know I shouldn't take it personally but they really didn't give me half of the info I now know they should have.

Let's see what they say. Have arranged a call back with Money Plus Group tomorrow (as I'm WFH) to hopefully cancel the plan. Will get in touch with RMA Resolve also - to get my plan set up with them for re-payments.

I can't pay the balance on the UB CC until after the 20th - as MPG have literally just taken a payment last week so need to wait for that to reach the accounts before I can settle the balance.

I feel so much happier after talking to you guys - seriously I was so worried but you'be all put my mind at rest.

lyndseyb2009

So quick update from me...... I've let MPG know that I want to cancel - but I have to wait until Friday to have the official closing of the account with them (as it's a different team). Letter written to also go in the post with them to cancel and also to complain - I've checked their T&C's and they should have told me up front any changes to my payment schedule would affect fees - which they did not.

So the bigger update is my OH's brother has kindly offered me £2500 to clear the Ulsterbank debt - so I don't need to go into a new DMP or "ignore" the debt - I can settle it in full and then keep repaying the Barclaycard & RMA debts on a payment plan for 5 months. The only downside is I haven't been able to get in touch with them yet but I am also writing to them today (letter in post - recorded).

Now my question is..... my total debt is £3500 - do you think I should use the £2500 available to me to try and get Full & Final settlements sorted? I know it's not the full amount - but bearing in mind I've been paying into the plan for 5 years so they are not going to be "writing" off huge amounts anyways - the bulk of the debts have been paid (over £16,000 has been paid off over the last 5 years - excluding fees).

Not sure what companies are like in terms of F&F offers - seeing as my account has always been up to date (albeit in a DMP so some are defaulted). Of the 5 accounts only 1 has been passed to a debt collection agency - the rest remain with the banks - Barclays (CC) and Ulsterbank (CC, OD & Loan).

I've no idea where to start - any ideas?

xx

Stevie_Palimo

lyndseyb2009 wrote: »

So quick update from me...... I've let MPG know that I want to cancel - but I have to wait until Friday to have the official closing of the account with them (as it's a different team). Letter written to also go in the post with them to cancel and also to complain - I've checked their T&C's and they should have told me up front any changes to my payment schedule would affect fees - which they did not.

So the bigger update is my OH's brother has kindly offered me £2500 to clear the Ulsterbank debt - so I don't need to go into a new DMP or "ignore" the debt - I can settle it in full and then keep repaying the Barclaycard & RMA debts on a payment plan for 5 months. The only downside is I haven't been able to get in touch with them yet but I am also writing to them today (letter in post - recorded).

Now my question is..... my total debt is £3500 - do you think I should use the £2500 available to me to try and get Full & Final settlements sorted? I know it's not the full amount - but bearing in mind I've been paying into the plan for 5 years so they are not going to be "writing" off huge amounts anyways - the bulk of the debts have been paid (over £16,000 has been paid off over the last 5 years - excluding fees).

Not sure what companies are like in terms of F&F offers - seeing as my account has always been up to date (albeit in a DMP so some are defaulted). Of the 5 accounts only 1 has been passed to a debt collection agency - the rest remain with the banks - Barclays (CC) and Ulsterbank (CC, OD & Loan).

I've no idea where to start - any ideas?

xx

I would think that given the time you have had the payment plan running if you go back and offer a very low split as follows they would likely take it or want an increase.


Total debt £3500.00
Money to clear £2500.00
Debt 1: £2500.00, Offer them £1000.00
Debt 2: £300.00, Offer them £150.00
Debt 3: £500.00, Offer them £250.00


You get the picture here, Write in with the offer and ask that they reply with the answer in writing, This can be done via email or post as long as you have a paper trail and state that this is a full and final settlement offer and you also want your credit file marked as such after payment is received.