DMP Mutual Support Thread - Part 12

System

sourcrates wrote: »

Token payments are a waste of time, they serve no real purpose, and cost the creditor more to process than the payment is actually worth.

Defaults, this has been covered so many times in the past, but just to clarify, prior to an account defaulting, you are relying on the goodwill of the creditor to stop adding interest to the account, some will, some wont.

Once an account defaults, the balance is frozen, no further interest or charges can be added, also, you then know you have a clear 6 years until said default drops off your credit file, so in the case of someone in a DMP, defaults are good news.

So in your opinion is it better to pay nothing than to pay £1?

sourcrates

ploppy57 wrote: »

So in your opinion is it better to pay nothing than to pay £1?

I queered this myself with Fatbelly (who works at CAB) he agreed with me that token payments are a waste of time, you either tell them your saving an emergency fund, and they will have to wait until you are ready to start payments, or you just get on with whatever debt solution that has been recommended to you.

So it makes little difference if you pay £1 a month or nothing, of course if it makes you feel better, then so be it, but in the grand scheme of things, it matters not a jot.

If it were me, i would want all accounts defaulted before i started a DMP, if that meant not paying for 6-8 months, then so be it, but that's just my personal take on things.

System

sourcrates wrote: »

I queered this myself with Fatbelly (who works at CAB) he agreed with me that token payments are a waste of time, you either tell them your saving an emergency fund, and they will have to wait until you are ready to start payments, or you just get on with whatever debt solution that has been recommended to you.

So it makes little difference if you pay £1 a month or nothing, of course if it makes you feel better, then so be it, but in the grand scheme of things, it matters not a jot.

If it were me, i would want all accounts defaulted before i started a DMP, if that meant not paying for 6-8 months, then so be it, but that's just my personal take on things.

But definitely pay nothing while waiting for CAA requests to come back?

Ours have been defaulted since 2015/16, with the exception of 1 small one. Its just that now we have started SM and trying for CCA's, it seems to put it all in a different light.

MK-4

sourcrates wrote: »

I queered this myself with Fatbelly (who works at CAB) he agreed with me that token payments are a waste of time, you either tell them your saving an emergency fund, and they will have to wait until you are ready to start payments, or you just get on with whatever debt solution that has been recommended to you.

So it makes little difference if you pay £1 a month or nothing, of course if it makes you feel better, then so be it, but in the grand scheme of things, it matters not a jot.

If it were me, i would want all accounts defaulted before i started a DMP, if that meant not paying for 6-8 months, then so be it, but that's just my personal take on things.

Thanks, that really clears it up, so I will write again to my creditors this month with the "saving an emergency fund" and hold off starting with SC for a few months.

January2015

Token payments.... or no payments ?????

I totally agree with Sourcrates. Token payments are a bit pointless when starting DMP / saving for an emergency fund. It's also correct they cost the creditor more to process than the £1 token payment they receive.

However, I am paying token payments now I have all my accounts defaulted, most transferred from original creditors to DCAs, emergency fund saved. So why am I paying token payments rather than full DMP payments or zero payments. I am paying token payments to 'show willing' with DCAs and keep them on-side so to speak whilst I save for F&Fs. I feel (and it is my opinion only) that if I totally ignore them or don't make some sort of payment they are more likely to start considering more action - what that action may be I have no idea, but worst case scenarios for me would be CCJs or charging orders. I don't want that so I pay token payments. However, during DMP setup, saving for EF and definitely when creditors do not provide information requested under CCA requests - zero payments all the way.

That's my two pennies worth on this subject

Suseka97

usedtobeblue wrote: »

Hi I’m just in the process of setting it all up, I have the letters ready to send to all my creditors and will send them today! I’m with step change yes, should I maybe seed a secure message to my bank asking them to stop payments immediately?

Yes, stop all payments to your original creditors now - if you bank online you should be able to go into your account and cancel the direct debits yourself.

System

January2015 wrote: »

Token payments.... or no payments ?????

I totally agree with Sourcrates. Token payments are a bit pointless when starting DMP / saving for an emergency fund. It's also correct they cost the creditor more to process than the £1 token payment they receive.

However, I am paying token payments now I have all my accounts defaulted, most transferred from original creditors to DCAs, emergency fund saved. So why am I paying token payments rather than full DMP payments or zero payments. I am paying token payments to 'show willing' with DCAs and keep them on-side so to speak whilst I save for F&Fs. I feel (and it is my opinion only) that if I totally ignore them or don't make some sort of payment they are more likely to start considering more action - what that action may be I have no idea, but worst case scenarios for me would be CCJs or charging orders. I don't want that so I pay token payments. However, during DMP setup, saving for EF and definitely when creditors do not provide information requested under CCA requests - zero payments all the way.

That's my two pennies worth on this subject

Thanks Jan. Still can't decide if I should just stop the token payments to L*nk until they provide the CCA's, or tell them I am going to do it. Its the fact that they haven't even acknowledged our letters. Wondering if they actually received them.

sourcrates

Just to clarify, if token payments are all you can afford, for example, you don`t have sufficient funds for a DMP and other forms of insolvency are not appropriate for you, then by all means pay £1 a month.

I am speaking specifically about DMP`s here.

And as regards a CCA request, you are not obliged to pay that account until the documentation you requested has been received.

Summer12

So if you haven!!!8217;t defaulted on a credit card yet but have sent CCAs and so far had no response (and you know they!!!8217;ve received the letter as it was sent recorded delivery) are they entitled to add fees and charges whilst you pay nothing waiting for their response?

sourcrates

Summer12 wrote: »

So if you havent defaulted on a credit card yet but have sent CCAs and so far had no response (and you know they;ve received the letter as it was sent recorded delivery) are they entitled to add fees and charges whilst you pay nothing waiting for their response?

Usually an account is put on hold whilst the request is actioned.

All it says in the actual legislation is :

(4) If the creditor under an agreement fails to comply with subsection (1)

(a) he is not entitled, while the default continues, to enforce the agreement.

so its a bit vague in respect of what you want to know.