DMP Mutual Support Thread - Part 12

curlu

Hi everyone, thanks again for advice and support from a newbie.

I prepared my financial statement last night and prepared letter to send to my 6 creditors advising how much I was offering to pay each month based on NEDCAB generated budget, proposing token payments for 3 months with the plan of getting 3 months EF behind me. I have read comments on here about defaulting being the "desirable" outcome, can someone explain why this is desirable? and if that means 6 months stopped payments would be preferable? Also, like so many my mindset is so geared towards paying my debts I wanted to prepare myself and my husband for the late payment letters hitting the mat.....what can I expect in terms of volume and frequency? I have debts with BC, Halifax, MBNA, Lloyds, Tesco and Santander?

Many thanks

sourcrates

curlu wrote: »

Hi everyone, thanks again for advice and support from a newbie.

I prepared my financial statement last night and prepared letter to send to my 6 creditors advising how much I was offering to pay each month based on NEDCAB generated budget, proposing token payments for 3 months with the plan of getting 3 months EF behind me. I have read comments on here about defaulting being the "desirable" outcome, can someone explain why this is desirable? and if that means 6 months stopped payments would be preferable? Also, like so many my mindset is so geared towards paying my debts I wanted to prepare myself and my husband for the late payment letters hitting the mat.....what can I expect in terms of volume and frequency? I have debts with BC, Halifax, MBNA, Lloyds, Tesco and Santander?

Many thanks

Hi,

An account that defaults has a definite end date, you know that 6 years from that date, the default will be off your file, otherwise you will get "arrangement to pay" markers, which will stay for six years after the debt is repaid.

If getting your credit file back into some kind of order is important, defaults are gone quicker.

If you inform creditors of your impending DMP, then you can ignore computer triggered letters, as they won't take that into account, likewise any phone calls, a simple, "I'm entering a DMP and stepchange will contact you soon" is all you need say.

100kdeep

Hi all hope you are all well. I just wanted to give a quick update on my dmp. 1 month in.

Starting with bc obviously some bad experiences on here but I think things must have changed. When I spoke with them on phone they were very easy to deal with. Just needed the sc reference number.
Today got a letter from them very polite saying as you are unable to make contractual payments unless your circumstances change we will default your account 'from the date you told us you were having financial difficulties' and they will not add any interest of charges.
So made for good reading 😁

Mbna were who are my largest debt (30k) were the ones I was worried about cause is they didn't freeze interest then account balance would never reduce. They said
We have heard from sc we have seen your budget and except your payments of x per month. Also have frozen interest. They didn't give a date of when the default would be like bc but said because the payment was not enough to cover minimum they will have to default the account and will give me 1 month notice of this happening. So I was happy with that.

Not heard anything from Tesco hsbc or RBS yet however the 30 day period since I told them of financial difficulties hadn't ended yet.

Night all
:beer:

acee

Just had an email from Piggy Bank offering to settle my account at a reduced rate, however they have sent the email to 451 other people who must all be on a DMP so I can see all their email addresses and they can see mine. This must be a breach of the data protection act could I use this to my advantage to reduce the settlement on my account?

Leanneglos1

Hello everyone, I have a question I'm hoping you can help with, I've received a letter from progressive money re my loan, I've missed 2 payments, in the letter it states they may take me to court for s county court judgement or apply for an attachment of earnings, can anyone advise if this is normal as it seems a lot more steep and serious than a typical default letter, any advice is muchly appreciated.
Thanks

sourcrates

Leanneglos1 wrote: »

Hello everyone, I have a question I'm hoping you can help with, I've received a letter from progressive money re my loan, I've missed 2 payments, in the letter it states they may take me to court for s county court judgement or apply for an attachment of earnings, can anyone advise if this is normal as it seems a lot more steep and serious than a typical default letter, any advice is muchly appreciated.
Thanks

Sounds like just a computer triggered letter thats sent when your behind with your payments.

If you receive a "letter before claim" you should take notice of that, am i right in thinking your holding out for the default before arranging repayment ?

I only ask as action through the courts has increased a little of late, this is because of a rule change coming in on October 1st concerning the civil procedure rules, basically creditors have to provide more information before the threat of court action.

So just take notice of anything a creditor sends you.

henrryyyy

sourcrates wrote: »

Sounds like just a computer triggered letter thats sent when your behind with your payments.

If you receive a "letter before claim" you should take notice of that, am i right in thinking your holding out for the default before arranging repayment ?

I only ask as action through the courts has increased a little of late, this is because of a rule change coming in on October 1st concerning the civil procedure rules, basically creditors have to provide more information before the threat of court action.

So just take notice of anything a creditor sends you.

what should you do if you do receive a letter before claim? contact the creditor to try arrange something? are they obliged to send a letter before claim? and would the letter be titled "letter before claim"?

Leanneglos1

Yeah I havnt spoken with them, sent letters which they say they havnt received regarding my situation and explaining going in to DMP etc, I've complained via email regarding something else and they have given confirmation of address so may resend recorded delivery, trying to arrange EF before entering dmp but yes this is the first letter I've received from them

Leanneglos1

When you say that court action has increased a little, how does this affect me, do they have to give more warning before taking me to court? Is their anywhere I can read up on it?
Thanks as always for your help:)

sourcrates

henrryyyy wrote: »

what should you do if you do receive a letter before claim? contact the creditor to try arrange something? are they obliged to send a letter before claim? and would the letter be titled "letter before claim"?

Leanneglos1 wrote: »

When you say that court action has increased a little, how does this affect me, do they have to give more warning before taking me to court? Is their anywhere I can read up on it?
Thanks as always for your help:)

Before court action can commence, you will receive notification by post or email, asking you to either pay in full, or arrange a repayment plan, within 14 days, or else they will commence action through the courts.

It will be headed "letter or notice before claim".

It will also detail the debt outstanding, the court and solicitors costs, should it proceed to court, and what you need to do to avoid this action.