Debt collection agency threatening court action whilst I am on a DMP

DeeDee99_2

I'm currently dealing with some debts using CCCS, a couple are through the people I originally owed with and another was passed to a debt colleciton agency (NDR)

Now Ive been paying my debts through CCCS since November last year and upon guidance from friends, Ive ignored any letters demanding the full cash amount up til now due to being in a DMP.

Thing is today I received a very threatening letter from them which states that if I do not pay my full arrears by a certain date they will register a default notice against me (which I cant see they can do because I have been paying them monthly to an amount they agreed with CCCS), and that my credit rating will be damaged and it could be taken to court.

Help, I dont know what to do

fermi

Your best bet is to contact CCCS again for advice ASAP (but they will most likely advise you as below).

Threats of court action while you are in a DMP and paying as much as you can afford are mostly bluff and bluster designed to frighten you into making additional payments that you can't afford. Stick to your budget and payments and only make payments through CCCS at the agreed amount.

A creditor is entitled to default your account while in a DMP as you are not keeping to the original credit agreement.

Payplan (who offer a similar DMP/service to CCCS) have this to say on their website:

Can my creditors still issue me with a County Court Judgement?

As a DMP isn't legally binding creditors could still take action against you. As Payplan have many years experience and have a great relationship with the creditors this is less likely to happen. However Payplan would continue to support you if any of your creditors applied to the court for a CCJ. Even if a creditor applied to the court for a CCJ the payment should remain similar to what you are paying through Payplan.

Will I get a Default Notice?

By entering into a DMP, your creditors can issue a default notice as you are defaulting on your original credit agreement. If you receive a default it doesn't automatically mean the creditor is going to take legal action. The default will appear on your credit file for 6 years from the date it was issued.

http://www.payplan.com/frequently-asked-questions/debt-management-plans.php#Ccj

CCCS will help/support you in exactly the same way as mentioned above.

There is a DMP Mutual Support thread with loads of info and support linked to below.

http://forums.moneysavingexpert.com/showthread.html?t=454457

CLAPTON

They can and often do register a default with the credit agencies... there's nothing you can really do because you have defaulted on the credit agreement. Your credit rating will be trashed for six years until the defaults drop off.

They can but rarely do take you to court because the court will probably order you to pay what you're paying now and it costs them monmey to take your to court.

There isn't really much you can do. Have you passed the letters to CCCS?

DeeDee99_2

Thank you so much Fermi, I'll have a read of the links you have and also go and post in the DMP thread also. You're a star

DeeDee99_2

Clapton, no I havent yet as only got this threatening letter today but I will do in the morning

fermi

DeeDee99 wrote: »

Thank you so much Fermi, I'll have a read of the links you have and also go and post in the DMP thread also.

Good.

As CLAPTON says, there is normally little point in them taking you to court as you can ask to be allowed to pay by instalments at much the same rate as the DMP. No gain for the creditor.:rolleyes: