Contact from Creditor

alboy850

Ive been on a DMP with Stepchange since 2012, I had four creditors totalling 20K

Over the years I have managed to pay three of them off accept this last one and I really can't afford to.

I have received a letter last week saying they want a payment within 14 days or they MAY take further action.

I have sent a copy of the letter to Stepchange for advice.

I have noticed in been exactly 4 years since i have started the DMP so it could be their yearly letter stating arrears etc.

What can or should I do?

sourcrates

Absolutely nothing, just keep paying your DMP.

There threat of "further action" could be an early indication they intend to sell the debt on, that's all.

Very common, nothing to fret about.

National_Debtline

Hi Alboy850,


Normally the DMP would be structured so that all of the debts finish at the same time, was this debt included from the start or did they continue to add interest and charges? Copy in StepChange is the first step, but you should also remember a DMP is not legally binding. If they wanted to take further action they can, they are most likely referring to county court.

Try not to worry. If you get court papers you can get help filling in the paperwork from a free debt advice charity and the creditor would most likely get the same monthly offer through court as they would through a DMP.


Laura
@natdebtline

sourcrates

If it's from an original creditor, they almost never take legal action.

They simply assign or pass the account to a debt collector.

Notice it says "may take further action" ?

I "may" win the lotto Saturday night, but I doubt it.

But as per National Debtlines post above, how come this creditor hasn't been paid, when stepchange are supposed to treat each creditor equally ?

alboy850

This creditor had the most debt attached to it, the three other ones were less. I have managed to offer final settlements with the others. I did keep in contact with S/Change through out the process.

sourcrates

Honestly, all further action means is they may give your account to a debt collector.
Those letters are ten a penny.

From your post it's not clear if you are still paying them through stepchange or not, can you clarify how much you owe, if your still paying, etc etc thanks.

alboy850

Still paying 58 pounds per month through Stepchange as i have been since 2012. with yearly budgets some years may of been a few pounds more but pretty steady at that rate.
Approx 3k outstanding.

I have been self employed since 2014 after being made redundant so income does vary.

fatbelly

All sorts of things MAY happen.

In the remote eventuality of a court claim you complete the forms and offer £58 per month. This would clear the debt in a reasonable period (3-5 years). The courts would be OK with this.

The creditor knows this, so the most likely thing to happen is nothing.