Two Questions - Token Payments and Letters to Creditors

Cloud_2

Hi fellow budget crusaders. Hope everyone here is doing okay today. Okay, I have a couple of questions that are making me feel like a bit of a dummy and hope that perhaps one of you wonderful people can help me.

Firstly my situ at the mo:

- I am entering a DMP with CCCS.

- I have applied for new basic bank account not connected to creditors.

- I am about to write to creditors to make token payments while I await new basic bank account application paperwork that I need before I sign up to the DMP.

My questions are:

1) How do I make token payments? (On the phone by DD? Or by cheque? Or by standing order? I just can't find out and I've searched hard)

2) In my first letter to creditors (same template for all) to inform them I will be making token payments do I HAVE tell them of the DMP? Would it help me more to do so? I don't want to though before I sign the paperwork.

If you have a spare minute or so here is an example of my letter which only states I am in discussions for financial guidance:

Dear Sir/Madam

Re Account No/Reference No: 007

Since making that above agreement with you, my circumstances have changed.
I cannot now afford to meet agreed monthly payments because I lost my job on 01/07/07 and am now in receipt of Jobseekers Allowance until I find new employment.

I offer a token payment of £1 as a gesture of goodwill.

If interest or other charges are being added to the account, I would be grateful if you would freeze these so my debt does not increase.

I am currently in discussions with various companies for financial guidance. I will contact you again as soon as I know which route I am going to take or if my circumstances improve.

I would ask of you not to contact me by telephone but would please put all future correspondence in writing and send to the above address.

Thank you for your assistance. I look forward to hearing from you as soon as possible.

Yours faithfully




Mr A N Other

Sorry for the long post. Any help or corrections to my letter would be greatly, greatly appreciated and I will try and give it back ten fold to anyone I can in any way I can whenever I can. In fact I helped my first member today (yay). Thanks.

OberonSH

I think it depends on the creditor - I wrote to mine and asked for their bank details so I could set up DDs for the payment. You could send a cheque (if you have a book) or ask them for their details or giro credit clips so you can make the payments.

I would mention the DMP, then you can't be accused of holding anything back, plus that might make them realise that you're not mucking about, you really cannot make the payments.

CLAPTON

I would not advice a DD as this lets them access your account directly; not of course that they would deliberately take more than they should but better to be sure.

Cheques are fine if your new account gives you a cheque book.
Postal orders are Ok but expensive for you.

Otherwise ask them for their account details so you can set up a standing order.

Without knowing more of your circumstances I can't comment on your letter.
Are you expecting to be able to resume full payments shortly ?
Or are you expecting to enter a DMP for the long term?

Sea78

Hi

I am on a CCCS DMP as well - they sent me some paperwork to send out with those first token payments, so hang fire and you should receive it. I actually didn't write a letter with them, just filled out the form for each creditor, wrote a cheque (but if I hadn't been able to get a cheque book i think I might have gone as far as getting a postal order for each one!), signed the form and sent it all off! This way I wasn't pulled into saying anything in particular. They also then had the CCCS reference number so that I could tell them if they hassled me that they should contact CCCS.

Sea xxx

Cloud_2

Thankyou all so much. You have all given me the info I really needed and some helpful suggestions to. And I know that info does not come free. All the best to all of you. Thanks again.

Sea78

Cloud - that's what we're here for

Good luck with the DMP - I felt so sick starting mine off and ashamed as well (silly I know). But now I see that it really was the best thing I could do and also has really helped me learn how to budget! (You'd think I'd have learnt that one ages ago lol).

Hope to see more from you soon

Sea xxxx

Cloud_2

Sea78 wrote: »

Cloud - that's what we're here for

Good luck with the DMP - I felt so sick starting mine off and ashamed as well (silly I know). But now I see that it really was the best thing I could do and also has really helped me learn how to budget! (You'd think I'd have learnt that one ages ago lol).

Hope to see more from you soon

Sea xxxx

Thanks Sea78. I so hear you on all of what you say. Real glad you're on your way. Hope to see you around too.

Cloudxxx

Me_Myself_2

I have allowed some creditors to set up DDs and the have all abided by the agreed figures without fail. Others M&S and Marbles wanted me to setup Standing Orders which have also worked well.

I'm over 2 years into my DMP now and everything is relatively easy now.

Good luck

Sea78

How are things going now Cloud? Have you had the info through from the CCCS yet?