PayPlan DMP needs to GO!!!!

Rjhsteel

70%?
we have been with Payplan for 6 years now and mainly only the interest gets paid off.

Hoping to only pay around 30% of it.

MrsTinks

If you are on a DMP then most of your creditors should have stopped charging interest?

Once in a while you will get a creditor who will accept 30% to settle - but it will greatly depend on if they think they have any hope of getting the rest of their money and if so if the cost of recovering it will be higher than the amount owed. It's not a finite calculation that can be applied to each creditor out there as some of it will also be down to who is handling your account, if they had a bad day, what their targets are for recovery etc.

I think realistically you need to accept that you will probably need to pay in excess of 30% of your debt owed to do your F&F.

Have you checked why your creditors are still charging you interest if you have defaulted the accounts?

sourcrates

Rjhsteel wrote: »

70%?
we have been with Payplan for 6 years now and mainly only the interest gets paid off.

Hoping to only pay around 30% of it.

Once an account defaults, thats it, a line in the sand is drawn, no further interest or charges of any kind can be applied to it, the amount is frozen.

The only exception to this rule, is if your original agreement allows further charges to be added, the majority of consumer credit agreements do not allow for this, but a tiny minority do, thats why its important to check your agreements small print to make sure.

If creditors have been charging you interest on defaulted accounts you first need to check your agreement to see if its allowed or not, and if not, get an official written complaint banged in against them, and ask for the money back.

January2015

Rjhsteel wrote: »

70%?
we have been with Payplan for 6 years now and mainly only the interest gets paid off.

Hoping to only pay around 30% of it.

All interest on our debts stopped - most immediately, but the infamous BC kept charging (but we have recently had all the interest credited back to our account, which reduced the outstanding balance nicely).

As I said, we were paying a reasonable amount each month and I felt the DCAs attitude was they are getting regular monthy payments, so why settle for considerably less when they know they will get the full amount eventually.

I don't think we will be able to negotiate much less than 60% (hoping for 50%) - at which point I will be happy. We have a bit more saving to do before we can make those offers, and when we do we will again start offering low and negotiate up where necessary.

January2015

As you are in a DMP, your creditors will be aware you are in financial difficulties. The Lending Code Section 224 states:

[FONT=&quot]Subscribers should consider reducing or stopping interest and charges when a customer evidences that they are in financial difficulties. Such reduction/suspension decision should be based upon an income and expenditure statement indicating that they are unable to make repayments sufficient to meet contractual terms. Where a customer is able to make only token payments, their debt should not increase as a result of interest and charges levied. The assessment should reflect the customer’s lack of ability to pay rather than the stage an account has reached in the arrears cycle or whether they are using free sources of debt advice. Where a firm declines to allow concessions, they should be prepared to explain why to the customer or their adviser if requested to do so.
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Section 225 states:
[FONT=&quot]It is inappropriate for interest and charges to continue to be taken where the result would be that the repayment period for the customer becomes excessive. In forming a judgement on what might be excessive, a subscriber should take into account the type of product and the individual circumstances of the borrower.
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If you have only been making payments towards interest and not reducing the capital on your debts, the result is that it is highly likely you will never complete your DMP. I would challenge your creditors on both of those Lending Code points and request interest and charges are reviewed and repaid to the account.[FONT=&quot][/FONT]
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