DMP Mutual Support Thread - Part 12

Suseka97

phil788660 wrote: »

........
I have asked for CCA agreements over 2 months ago and so far only PRA group have come back to me stating they have CCA for one of the debts (8K) but have confirmed they haven't as yet got CCA for the other debt (6K)
I am not sure what is the back action I should take from here on the debt which is enforcable and the one that isn't as yet and the and the ones I haven't heard back from?
I just don't know what to do for the best next and feel a bit in limbo with it all? Phil

If you believe PRA have proven the £8k debt is enforceable (and you need to get that checked out, try the AllAboutDebt forum), then you should set up a payment plan for that one. As for the others, basically don't do anything / pay anything until you receive paperwork that proves enforceability and save the payments you would have been making in your emergency fund or for F&Fs at some point. It took more than 6 months before I heard back on three of mine (all UE) and I'm still waiting (a year on) to receive proper paperwork for the other three.

EyeEye

Hi Everyone,

Been lurking a while and thought I’d finally post. So I have racked up just short of 17k worth of debt in my 29years of life and after years of must doing enough to keep on top of it, it’s finally got the better of me.
I used to live with my parents and they didn’t charge me much rent and i had a fair bit of disposable income. Then a 18months ago I had a daughter and moved in with my partner. Suddenly money become tighter and I was paying lots towards debt but then using credit cards to live. You all know how it goes as most of you have been in the same postion.

Now I can’t afford the minimum payments anymore though haven’t missed one yet. I spoke to Stepchange and the advised a DMP. At the moment I can't afford to offer much to creditors due to some ill health meaning I have missed a few days of work.

I have done my budget and all my money is going into my car, I foolishly entered into a pcp agreement on a fancy car. I am unable to end the agreement as it still has 2 years to run. However I can return the car and be left with a deficit of 2.5k id have to pay. Getting rid would give me an extra £350 a month to pay debt. Do you think it's best I just throw that on a credit card and then get on the DMP and start throwing money at the debt?

Also iv read a lot about defaults and I don't really understand what this means? What is a default and why is it a good thing?

One last thing has anyone got a loan with Zopa? How helpful were they with the situation?

[Deleted User]

EyeEye wrote: »

Hi Everyone,

Been lurking a while and thought I!!!8217;d finally post. So I have racked up just short of 17k worth of debt in my 29years of life and after years of must doing enough to keep on top of it, it!!!8217;s finally got the better of me.
I used to live with my parents and they didn!!!8217;t charge me much rent and i had a fair bit of disposable income. Then a 18months ago I had a daughter and moved in with my partner. Suddenly money become tighter and I was paying lots towards debt but then using credit cards to live. You all know how it goes as most of you have been in the same postion.

Now I can!!!8217;t afford the minimum payments anymore though haven!!!8217;t missed one yet. I spoke to Stepchange and the advised a DMP. At the moment I can't afford to offer much to creditors due to some ill health meaning I have missed a few days of work.

I have done my budget and all my money is going into my car, I foolishly entered into a pcp agreement on a fancy car. I am unable to end the agreement as it still has 2 years to run. However I can return the car and be left with a deficit of 2.5k id have to pay. Getting rid would give me an extra £350 a month to pay debt. Do you think it's best I just throw that on a credit card and then get on the DMP and start throwing money at the debt?

Also iv read a lot about defaults and I don't really understand what this means? What is a default and why is it a good thing?

One last thing has anyone got a loan with Zopa? How helpful were they with the situation?

Well done on facing up to your debt situation:beer:. Welcome to our supportive and non-judgemental group. Although the balance may seem like a lot you're tackling things before the whole situation spirals out of control. I think a lot of us have been there, using credit cards to pay for essentials just to get through the month. That's when problems really start as the added interest means the debt only increases and a sense of desperation sets in.


I'm not very au fait with PCP arrangements for cars and don't fully understand how they work:o. I can appreciate that the payments are a massive drain on your finances but if you relinquish the car you'll still have to pay the outstanding £2.5k:eek:. Have I got the wrong end of the stick? If you do that you'll probably need to obtain another car to replace it which will involve yet more expense, in effect you'll be paying for 2 cars at the same time. I'd think long and hard about that situation. Others may advise differently and I'll be very interested to see what anyone else comes up with. Once on a DMP you will have no access to any more credit. Your loan and credit card accounts will be closed and obtaining new credit elsewhere would be virtually impossible. How would you then fund the purchase of a vehicle to replace the one you've suggested returning?


As for defaults, they can be a very good thing:j. If you are keeping on top of repayments your credit file might not be too bad at the moment but once you enter a DMP your credit rating will plummet anyway. A default will stay on your credit file for 6 years after which time all trace of that debt disappears from sight, even though some of the balance may still be outstanding. More importantly, when accounts are defaulted the creditor freezes interest for the duration of the rest of the repayment of that debt. That's brilliant as at least you know the extent of your debts and the time it might take you to be rid of them. Seeing each one slowly decreasing month on month is a wonderful feeling.


Lots to think about, I know. Becoming debt-free isn't easy but it's the most liberating thing ever:j. Good luck and keep us posted. Anything you want to know, please just ask.

January2015

phil788660 wrote: »

I have asked for CCA agreements over 2 months ago and so far only PRA group have come back to me stating they have CCA for one of the debts (8K) but have confirmed they haven't as yet got CCA for the other debt (6K)

Phil

Have PRA sent any documentation regarding either CCA? Stating they have the CCA and sending the correct, enforceable documentation are completely different things.

As Suseka says, whatever you get back you need to get it checked out on the AllAboutDebt forum (another site you will need to you).

DMP_Tiger

Afternoon all, will I ever have to show my bank statements to creditors? Or to anyone else? I have received an annual pay increase which will change my I & E statement that I have recently sent to creditors.

I would actually like to use it for something other than debt repayments as it's not going to make any real difference anyway. Presumably at some point they will ask for an updated I & E. But it's only a cost of living increase so presumably I'll be able to increase my figures for groceries, diesel, etc at that point?

January2015

DMP_Tiger wrote: »

Afternoon all, will I ever have to show my bank statements to creditors? Or to anyone else? I have received an annual pay increase which will change my I & E statement that I have recently sent to creditors.

I would actually like to use it for something other than debt repayments as it's not going to make any real difference anyway. Presumably at some point they will ask for an updated I & E. But it's only a cost of living increase so presumably I'll be able to increase my figures for groceries, diesel, etc at that point?

I can't remember sending bank statements to Stepchange.... but since self managing I have never sent bank statement or payslips to creditors.

sourcrates

DMP_Tiger wrote: »

Afternoon all, will I ever have to show my bank statements to creditors? Or to anyone else? I have received an annual pay increase which will change my I & E statement that I have recently sent to creditors.

I would actually like to use it for something other than debt repayments as it's not going to make any real difference anyway. Presumably at some point they will ask for an updated I & E. But it's only a cost of living increase so presumably I'll be able to increase my figures for groceries, diesel, etc at that point?

Hi,


You do not have to do anything you are uncomfortable with, if they ask, just refuse, or say you'd rather not.


You can say No to them you know.

Suseka97

DMP_Tiger wrote: »

Afternoon all, will I ever have to show my bank statements to creditors? Or to anyone else? I have received an annual pay increase which will change my I & E statement that I have recently sent to creditors............

Good grief... NO... seriously a DMP is an informal arrangement. Only 'share' what you want others to see. It's your plan. The new GDPR legislation has really tightened up the sort of information companies are allowed to hold/ask for and so I think that really helps folks like us. Don't be bullied by creditors or feel they have the upper hand.. they do not.

daisy_jean

Quick query...


My DMP payments started in May (so I've paid 3 so far). But I didn't start an emergency fund as I was too scared to delay it. Now I find I've completely screwed up my I&E and am struggling to make ends meet each month. Is it possible to review it already? Or I am up s%%t creek until the first year is up? Feeling very foolish and stupid right now
Doesn't help that my wage has gone down by £50 a month due to a change in role either :eek:

bewildered1

January2015 wrote: »

BCard are an absolute nightmare when it comes to freezing interest.

They will not freeze interest if you are paying 1% or higher than the outstanding balance each month. So, for example, if you debt is £12k, and your DMP pays them £120 or more per month they they will whack on interest. If you DMP pays them £119, or less, they will freeze charges.

Stupid, stupid, stupid!!! :mad::mad::mad:

My SC DMP paid them 1.16% of my outstanding balance. As they were adding interest, the outstanding balance was increasing rather than decreasing.

The only way to stop BCard doing this is to play hardball. Be brave and either:

• Stop paying them altogether until they default the account and pass it to a DCA
• Pay them only token payments
• Or, reduce your DMP payments to a figure well below 1% of the outstanding balance

I left SC, went self managed and dropped to £1 payments and wrote to them advising I had not made the decision to enter a DMP lightly and was fully aware of the impact this would have on my credit reference files. I formally requested they not only freeze interest, but also that they refund all interest and charges added to my account from the date they were notified of my entering a DMP. I also formally requested they backdate the default on my account.

I don't know if I was lucky, but I did get everything I asked for :j:j However, be warned it is not a quick process with BCard and took a number of letters back and forth. I just kept pressing my case and advising they were treating me unfairly and pointed out that had I completely walked away from my debts they would have defaulted the account in a timely manner which would have frozen the debt at the level on the date of the default being made, but because I was trying to be responsible and deal with my debts they were penalising me and treating me in a less favourable manner than customers who fail to deal with their debt problems.

Seriously, if you don't get the answer you want in the first response, don't give up. Keep making your point and wear them down. It's what I do. I honestly believe the points I make are fair and reasonable so I keep making them until someone with sense in the organisation gets my letter :rotfl: because that's all it takes... for the right person to deal with your problem. Most of the people in these organisations are paper pushes who don't actually know the legislation and you will find the people in debt on this forum read the legislation and know what's reasonable and fair etc. (Well, I read the legislation and use it to empower my arguments as and when I think it fits the case).

Hope this helps.

Thank you January for your response. It was very helpful.