Huge amounts of debt, advice on DMP needed

glentoran99

The_Debt_Expert wrote: »

I understand that, you clearly mean well and a lot of what you write is correct from my point of view. I only mentioned you because someone in the thread did. I joined up for exactly the same reason but from a debt advice point of view. There is surely value in both the life experience of having been in debt, and also having an understanding of all debt solutions and regulations in the industry. For people to question my name on here despite not posting anything factually incorrect is a bit of a kick in the teeth when I'm just trying to help. Then there's the fact I've only posted a few times - surely everyone has to start somewhere or do people on here not accept newcomers? A shame if not.

In terms of what I was discussing, when it comes to legalities with defaults, for example determining when a debt drops of a credit file, creditors are forced to back date it to the earliest date they could have defaulted the account. Hence what I stated is factually correct. The fact it isn't always reality I accept, but if you challenge a creditor on it they will probably back date it.

If creditors are breaking the rules or not doing things in the right way, they need to be reported and they'll stop doing it. The FCA are doing a great job and will hopefully crack down on this sort of behaviour in time.

are they? Look up dumpyboy on this forum and see if he agrees with you?


In my own situation I have been to the Fos and they supported the creditors position that AP was suitable for 12 months

Keezing

So I've received my first response from a creditor since sending out the NEDCAB holding letters, and all they did was send me a copy of my last statement.

No acknowledgement of my request for them to pause interest etc.

Would you resend the holding letter or just move onto the DMP phase anyway?

runforlife

The_Debt_Expert wrote: »

That's very odd, because creditors should default your accounts once usually around 3 months of arrears are outstanding. Payments shouldn't need to be down to £1 to 'achieve' defaults. I'll do some digging on this.

Yes but they don't !

runforlife

January2015 wrote: »

Tell that to Barclaycard. Even after 6 months of £1 payments they were still not prepared to default. It took 8 months for them to write and say they would default and then only 12 months after £1 payments started have they defaulted. This on two accounts.

For 12 months prior to token payments they had been getting DMP calculated payments which were much less than the contractual payments. Despite writing to them, quoting the lending code and pointing out the relationship had clearly broken down due to our financial situation, and evidencing it was not going to improve before we retire, BC would not budge. Only way to make them play ball was either token £1, or no payments at all. They are the worst, but definitely not the only creditor to do this. Self managed was the only way we resolved this problem. StepChange were not prepared to help us.

Yes BC were my worst for not defaulting but 3 years in they agreed to backdate it

Keezing

So a quick update after my initial letters to creditors:

- Barclaycard agreed to freeze interest for 30 days and await offer of DMP
- Barclays agreed to freeze interest for 30 days and await offer of DMP

- MBNA rejected my request to freeze interest and sent Income and Expenditure forms
- Zopa rejected my request to freeze interest until a DMP has been accepted

- AMEX ignored me

So far I'm feeling pretty positive about everything. I'm taking my time in an effort to expedite defaults and plan to send the DMP offers at the end of the month, with a proposed start date of April 1.

I was thinking of sending copies of payslips to add credibility - what do you think?

tlc678910

Hi OP,
If you send payslips is there a danger in the creditors being handed your employers contact details?
Tlc

January2015

I've never complied with requests for copies of payslips or bank statements. I'm two years into my DMP and it's never been a problem.

Keezing

I received an interesting letter from Barclays today, which I have summarised below:

---

NOTICE OF DEFAULT

Nature of the breach: Your inability to afford to make contractual payments

To remedy this breach you are required to take the following action on or before 11/02/2017:

- Withdraw your request for a Debt Management Plan

If you do not take this action then the further action set out below may be taken against you or a surety:

1. With effect from the date shown above the Bank hereby terminates the agreement and demands immediate repayment of the full outstanding which is £29,871.43. Daily interest charges of £0.00 will continue to accrue from the date shown until full repayment is made.

---

I am surprised at the nature of this letter considering I have missed 1 payment.

Does this mean that If I don't withdraw my request for a DMP by 11th of February they will default my account and add zero interest moving forward?

Seems like a good thing?

Thanks everyone!

sourcrates

Keezing wrote: »

I received an interesting letter from Barclays today, which I have summarised below:

---

NOTICE OF DEFAULT

Nature of the breach: Your inability to afford to make contractual payments

To remedy this breach you are required to take the following action on or before 11/02/2017:

- Withdraw your request for a Debt Management Plan

If you do not take this action then the further action set out below may be taken against you or a surety:

1. With effect from the date shown above the Bank hereby terminates the agreement and demands immediate repayment of the full outstanding which is £29,871.43. Daily interest charges of £0.00 will continue to accrue from the date shown until full repayment is made.

---

I am surprised at the nature of this letter considering I have missed 1 payment.

Does this mean that If I don't withdraw my request for a DMP by 11th of February they will default my account and add zero interest moving forward?

Seems like a good thing?

Thanks everyone!

Bizarre letter, never seen one like that before, I suppose you learn something every day don't you.

The default is what you want I assume, they appear to be agreeing to a freeze of interest and acceptance of your DMP.

First time I've ever seen it phrased that way though.

Keezing

I googled some of the phrasing and found someone else who receive it in 2014 http://lawyer-consultation.net/help-again

Can I assume that Barclays will in fact default me on the date in the letter, or is this just a threat?