DMP Rejected

Loafer

Hi all..
I contacted CCCS last month and sent off my letters concerning going on a DMP with my creditors.

As I am out of work at the moment, the most I could offer each of my 4 creditor was £1.

Lloyds have written back to me now saying that this cannot ber accepted and they are not prepared to freeze the interest or charges on these accounts.

I am awaiting a callback from the CCCS to discuss this but was wondering if anyone has had the same experience and what they did next. Its really put a downer on my day.

Help, Support and advice appreciated!

yellowmonkey

Hi

On a DMP myself but LLoyds are not one of my creditors. From what i can gather they are a bit difficult to deal with. No doubt someone with experience of them ( There are quite a few ) will be along to offer their tales with LLoyds.

Well done on the DMP and try not to get down. It generally starts with 2 steps forward one step back but you will get there in the end.

Good luck

ym

madmoney_2

hi there loafer this is just one creditor so far who has rejected ur dmp, my advice would be to sit tight and wait for cccs to help u with it, never dealt with them myself but imo, the major banks are all the same, im sure you are not the first one to have a dmp with them rejected, and u certainly wont be the last xxx

mm

newlywed

Hi, sorry I can't really help with Lloyds specifically. I am on a DMP with CCCS myself and had some immediately refuse the DMP but then when they actually received payments they accepted it and froze interest.

Unfortunately some banks are quicker than others to stop interest

Loafer

Thanks for the replies. I would be interested to hear from people who have dealt with Lloyds directly to see what happened with them but all the support is so so so appreciated.

Can I ask Newlywed or anyone else who its relevant to, How did you actually go about making payments? I have asked for a payment book but this has been to no avail.

My credit record will be shot to pieces! I am really gutted about that!

newlywed

When they send you the welcome pack, they will send you a payment slip for your first payment to be made in CASH at a post office. They also send you details to set up a Direct Debit or a standing order for you to set up for paying the other months - Direct Debit is their preferred way (but I like to be in control and so and pay by standing order).

Each month when CCCS send a statement to you, there is another post office payment slip at the bottom so you could pay that way if you prefer.



Credit is how you into difficulties in the first place... not having credit can be difficult but at least it avoids a lot more worries!!

It's surprising how relieved you feel when you know there aren't any more direct debits etc to check on from your account and that there won't be any more credit card statements to fret over

Just a word of warning though, initially you debt will go up for a few months as you are making reduced payments and they will still be charging interest etc. But stick with it - I started mine in May and my debts are now falling steadily.

Most have stopped interest completely and the only one that hasn't, was actually the first to accept the DMP and reduced interest to less than a third of what it was. So now instead of £700+ a month interest, I am charged £40. Can live with that

Loafer

You're so right, credit is what got me into the bind i am in .. I am starting my first proper job in a month or so (I think they call it a career!) and was just planning ahead for the inevitable mortgage.
So a few stressful months ahead of me! Ho hum.. i am so grateful to everyone on this board, those who have posted here and the DFW's in general!
Thanks and keep the advice coming!!!

newlywed

Just think the quicker you can pay off your debts once you start your new job, the quicker you can build up a good credit rating for your mortgage.

You can still get a mortgage on a DMP (apparently others on here have said - don't know from experience though as we are happy in our long term rent) although rates will be higher.

So just view it as a slightly longer term plan (depending on how quick you can pay your debts).

CLAPTON

Paying £1 per creditor isn't a DMP.
A DMP is about paying your debts off albiet over much extended timescale.

When you wrote to your creditors did you explain you were unemployed but expected to start work soon. Do you expect to be able to to restart paying the full amount on the debts? What exactly did you tell them?

Perhaps if you provided full details of the situation we might be able to be more helpful.

Loafer

CLAPTON wrote: »

Paying £1 per creditor isn't a DMP.
A DMP is about paying your debts off albiet over much extended timescale.

When you wrote to your creditors did you explain you were unemployed but expected to start work soon. Do you expect to be able to to restart paying the full amount on the debts? What exactly did you tell them?

Perhaps if you provided full details of the situation we might be able to be more helpful.

You're right, and I didn't explain myself very well at all, but for me it was the first steps towards the DMP.
The letters I sent were the templates that CCCS posted to me in order to send. Now you have said what you said, I realise that they won't be aware of my change of circumstances.

The lady from CCCS said that once my job starts, she would get back in contact to re-evaluate my payment plan but to offer a token payment in the meantime.

But, I have to thank you Clapton for making me realise I had overlooked the creditors lack of awareness to my change of circumstance so have one on me:beer:

I will wait for CCCS to call back and today but if they don't then I will contact LloydsTSB directly in the morning to inform them and see if they are nice enough to freeze or reduce interest payments.

I just dont want to unwittingly agree to anything that would undo or negate any future DMP arrangements that CCCS will undertake on my behalf.

yellowmonkey

CLAPTON wrote: »

Paying £1 per creditor isn't a DMP.
A DMP is about paying your debts off albiet over much extended timescale.

When you wrote to your creditors did you explain you were unemployed but expected to start work soon. Do you expect to be able to to restart paying the full amount on the debts? What exactly did you tell them?

Perhaps if you provided full details of the situation we might be able to be more helpful.

Wooahhh CLAPTON. Not everyone is up to speed with DMP/IVA's etc. Lets not shoot someone down in flames who is asking for advice and is not to sure about things. That is what this board is for 'advice'. Just because some people on here are old hands lets not forget when we first started out.

All the best

ym