DMP Mutual Support Thread - Part 12

Emm1E

Hi, I have been following this thread for some time and set up our DMP (husband and I-self managed) in October last year. Firstly I would like to say how useful all of the advice has been.

We have only been paying a token payment of £1 pm to each of our 8 creditors. We were both made redundant last year and although we now finally have new jobs, I've had to take a huge pay cut. I can't see how we're ever going to afford to pay more. All accounts have been defaulted, with the exception of creation finance, who we found out today have sold onto Lowell.

I have 3 questions...
1) are Lowell's likely to accept the token payment going forward?
2) I've read a lot about CCA requests but still don't understand exactly what they are-can someone please explain in simple terms?
3) How long are creditors likely to continue to accept our token payment before other action is taken?

FYI - we don't have savings for settlements.

Thanks in advance.

fatbelly

Hi

1. Yes, if justified by a financial statement, Lowell will accept £1

2. Under the Consumer Credit Act you have the right to request a copy of your agreement from the lender at a cost of £1. To encourage them to respond, the account becomes 'unenforceable' until they comply. Obviously this right only extends to consumer credit act agreements so not mobile phones, utility contracts, current accounts. But if Creation was hire purchase then it is a CCA debt.

3 is hard to answer. Court action is always a possibility but the vast number of defaulted agreements (probably 99%) never see a court.

The problem with token payments is that they never deal with the debt, but continually acknowledge it. It's OK as a short-term thing leading to another strategy like settlement deals that you allude to.

Maybe start a thread with you statement of affairs and let us have a look at it.


The other thing is that there should have been a default before your debt could be sold. Have you checked what exactly is being recorded on your files.

Puzzcat

fatbelly wrote: »

Hi

1. Yes, if justified by a financial statement, Lowell will accept £1

2. Under the Consumer Credit Act you have the right to request a copy of your agreement from the lender at a cost of £1. To encourage them to respond, the account becomes 'unenforceable' until they comply. Obviously this right only extends to consumer credit act agreements so not mobile phones, utility contracts, current accounts. But if Creation was hire purchase then it is a CCA debt.

3 is hard to answer. Court action is always a possibility but the vast number of defaulted agreements (probably 99%) never see a court.

The problem with token payments is that they never deal with the debt, but continually acknowledge it. It's OK as a short-term thing leading to another strategy like settlement deals that you allude to.

Maybe start a thread with you statement of affairs and let us have a look at it.


The other thing is that there should have been a default before your debt could be sold. Have you checked what exactly is being recorded on your files.

Hi,
My creation debt was also sold to Lowell never defaulted. I complained to fso and ICO both agreed the creditor was allowed to do this.
Puzz

sourcrates

fatbelly wrote: »

The other thing is that there should have been a default before your debt could be sold. Have you checked what exactly is being recorded on your files.

Puzzcat wrote: »

Hi,
My creation debt was also sold to Lowell never defaulted. I complained to fso and ICO both agreed the creditor was allowed to do this.
Puzz

This is now becoming more common place, i queried this with a stepchange adviser last week, they were of the same opinion as you Fatbelly, and i must confess, me as well.

I thought sec 87 was fairly specific :

87 Need for default notice.

(1)Service of a notice on the debtor or hirer in accordance with section 88 (a “default notice ”) is necessary before the creditor or owner can become entitled, by reason of any breach by the debtor or hirer of a regulated agreement,—

(a) to terminate the agreement, or
(b) to demand earlier payment of any sum, or
(c) to recover possession of any goods or land, or
(d) to treat any right conferred on the debtor or hirer by the agreement as
terminated, restricted or deferred, or
(e) to enforce any security.

Now to me, that seems to mean before they can sell the account or take action through the courts, they must (1) issue a default notice, and (2) record a default on your credit file.

FOS seems not to agree.

S1Ebbz

Has anyone had a CCJ registered whilst on DMP. Mine was going smooth for 5 months until HSBC have ramped up letters with final demands and threatening court action

sourcrates

S1Ebbz wrote: »

Has anyone had a CCJ registered whilst on DMP. Mine was going smooth for 5 months until HSBC have ramped up letters with final demands and threatening court action

99% of the time they are just reminders of what could happen for non payment, usually computer triggered.

I`ve given you a fuller explanation in your other post.

Keezing

Today's a big day for me!

Started off my DMP with a massive £103k owed, and today that amount is £99k! 5 figures! So much better than 6 figures!

sile001

Keezing wrote: »

Today's a big day for me!

Started off my DMP with a massive £103k owed, and today that amount is £99k! 5 figures! So much better than 6 figures!

Well done! Onwards and downwards:)

Emm1E

Creation and Lowell have both advised that a default does not have to be registered-so frustrating as all my other accounts have defaulted. Lowell were pleasant enough to deal with though and payment plan has been agreed. Thanks for the help and advice offered.

[Deleted User]

January2015 wrote: »

It's no longer just the miss-selling, it's the Plevined bit. Look at Martin's guide and just go for it

Thanks for that:T:j:beer:. I've now put my claim in:j. I've been looking closely at other claims I might be able to make, this time for unfair charges and not PPI -related. They won't be for much but every little helps as they say;). I'm on a mission to squeeze every last penny out of financial institutions that have treated us clients so unfairly and unscrupulously over the years. It's all destined for my F&F fund;)