DMP Mutual Support Thread - Part 12

Dandytf

Nice to see natwide overdraft balance 0 this month.
1st Sc dmp debt cleared since 2012.
Think I'll increase payments a few pounds in next few weeks and again try to reduce June2022 debt free date.
Hopefully 1 or 2 smaller debts could be clear end 2018

Onebrokelady

sourcrates wrote: »

That’s up to NatWest, complain to them if they are dragging there feet, be a bee in there bonnet, keep on complaining to them until they agree to default you.

I'm going to write to them again until they give in

Onebrokelady

January2015 wrote: »

Nat West passed my account to Wescot for management, but they still defaulted it within 6 months of my starting my DMP. No problems

Ahhh thanks for that January,I've only been on my DMP for three months, maybe I will give them more time

sourcrates

Helpme34 wrote: »

Hi

Anyone else able to share any info re the above please?
Seems like OAB is MIA at the moment!!

If that is what you are comfortable with, then yes.

Danny008

Our DMP is due to start June 1st but yesterday my wife and I had a letters from MBNA giving the 30 day default notice and another letter saying either pay the arrears or if I could offer a partial settlement they may accept. We have money saved but I don!!!8217;t want to use it at the moment but I also don!!!8217;t want to miss out as they may not offer it again. What!!!8217;s the best thing to do? Thanks in advance.

[Deleted User]

Danny008 wrote: »

Our DMP is due to start June 1st but yesterday my wife and I had a letters from MBNA giving the 30 day default notice and another letter saying either pay the arrears or if I could offer a partial settlement they may accept. We have money saved but I don!!!8217;t want to use it at the moment but I also don!!!8217;t want to miss out as they may not offer it again. What!!!8217;s the best thing to do? Thanks in advance.

It sounds like very early days for them to be making a stupendous offer, especially as your DMP hasn't even started yet or your account being defaulted. If the letter was from MBNA themselves it looks as if the debt is still with the original creditor and hasn't yet been 'sold on'. Original creditors don't tend to offer greatly reduced settlements:(


I had something similar from Lloyds (via Wescot) but when I phoned they couldn't/wouldn't give me any idea of what type of reduction they were prepared to make. they said I had to make my offer to them which they would consider. I haven't taken this any further yet. It might be worth your while going in by starting off with an extremely low offer. They probably won't accept it but may counter with what they consider reasonable. This will probably be way too high for you, maybe only a 10% reduction in the current balance but from there you can bat offers to and fro until you find something mutually acceptable.


I wouldn't worry too much about missing out if you don't accept immediately. It really does seem very early days for any type of good offer to be made to you.


One thing, though. Is this a relatively old debt? It could be that it is unenforceable anyway, meaning you don't even have to pay it at all (as advised by many on here) or maybe just pay a minimal amount. To find out the enforceability or otherwise of debts you need to put in a CCA request to the lender. Lots of info on this thread and elsewhere online about CCAs.

sourcrates

Danny008 wrote: »

Our DMP is due to start June 1st but yesterday my wife and I had a letters from MBNA giving the 30 day default notice and another letter saying either pay the arrears or if I could offer a partial settlement they may accept. We have money saved but I dont want to use it at the moment but I also dont want to miss out as they may not offer it again. Whats the best thing to do? Thanks in advance.

Two or three years down the line, the discount available from the debt purchaser who picks up your account will be a lot, lot better than the measly 10/15% MBNA will offer you now.

For example, Lowell regularly offers between 20 and 75% off dependent on how much you owe.

I would wait.

*Sable*

Okay, so I've filled out the forms and posted back to StepChange. They will be taking a payment of £276 each month.

So now I need to inform my creditors what's happening. In the meantime, do I go ahead and cancel my direct debits? I've seen somewhere that it said you need to continue to make the minimum until the creditors have acknowledged the DMP (seems a bit pointless as the hope is they'll put the accounts into default anyway), but obviously I could do without paying the minimums AND the £276 to SC.

sourcrates

*Sable* wrote: »

Okay, so I've filled out the forms and posted back to StepChange. They will be taking a payment of £276 each month.

So now I need to inform my creditors what's happening. In the meantime, do I go ahead and cancel my direct debits? I've seen somewhere that it said you need to continue to make the minimum until the creditors have acknowledged the DMP (seems a bit pointless as the hope is they'll put the accounts into default anyway), but obviously I could do without paying the minimums AND the £276 to SC.

Your entering debt management, why would you continue to make the regular payments, all your accounts should be on hold anyway, have you written and informed all your creditors of your intentions ? if not then you should do.

The whole idea is to draw a line in the sand, stop paying, inform them of your situation, all your accounts then automatically go on hold for at least 30 days, then your DMP payments usually start a few months down the line.

You must do things in the right order.

*Sable*

have you written and informed all your creditors of your intentions ? if not then you should do.

No, I haven't. I literally only spoke to SC and did my budget yesterday. My next step is to let the creditors know.