DMP Mutual Support Thread - Part 12

Debtfreehopeful

Hi
Just wanted to check, if a debt is passed on to a debt management agency does that mean that the account is defaulted?
I changed from doing a DMP with SC and went self-managed, I wrote to all my creditors notifying them and the date of the first payment- most have been fine but:-
Next hasn't acknowledged my DMP and is sending a computer generated letter from their debt collection dept with the normal statement amount repayment

Vanquis has said that my original SC DMP payment hasn't been paid and is demanding that (even though I have made my self-managed DMP first payment)- said about passing it on to debt collection agency in 14 days if that payment's not received.

When my accounts are finally passed on to debt collection agencies, are they ok with normal DMP payment amounts?

Thanks

[Deleted User]

Sweet7, as January and others have advised, please don't worry about the start date of your DMP. Just contact SC, all will be well:beer:


As a point of interest, SC don't collect payments from people throughout the month, they just have 2 dates, either 1st or 19th. Mine used to be collected on the 1st (more convenient for me actually as all my other DDs went out then anyway and it left my bank balance more 'tidy' from the start of the month so I knew exactly how much/little money I had left;)).


If a payment date of 1st of each month would be better for you I'm sure they could change it without any problem before things get underway.

motivated

Morning all
I'm confused (again)

Just received a letter from Halifax regarding one of our loans. It states "thankyou for you additional payment this month. (this would be my SC payment) As your account was in arrears we have allocated the payment of £xxx to the arrears and the remaining £xxx towards your loan as an additional payments therefore saving you £xxx in interest" They are not adding any interest anymore though anyway. The balance is the same as I have too so no problem there.

But there was no reference at all about the letter I sent them stating I was now self managing and I would be paying token payments for so long. I will just carry on as I am, maybe they're choosing to ignoring my letter. :think:

sourcrates

Debtfreehopeful wrote: »

Hi
Just wanted to check, if a debt is passed on to a debt management agency does that mean that the account is defaulted?


When my accounts are finally passed on to debt collection agencies, are they ok with normal DMP payment amounts?

Thanks

Hi,

Let me just explain the usual process that takes place when you stop making your regular contracted payments.

Debt collection agencies are utilized in two ways by creditors.

(1) Your account, because its (technically) in arrears, gets passed over to a DCA to "manage" on the creditors behalf, the debt is still owed to the creditor, the DCA just acts as a third party, in order to collect the debt for there client.

The creditor can choose to default you at any time after 3-6 contracted payments have been missed, (DMP payments are not contracted payments) you will be informed separately in writing of this.

(2) Only once defaulted can a debt be sold on, they are usually bought by specialist debt collection companies, such as Lowell, Cabot, and Hoist.

sourcrates

motivated wrote: »

Morning all
I'm confused (again)

Just received a letter from Halifax regarding one of our loans. It states "thankyou for you additional payment this month. (this would be my SC payment) As your account was in arrears we have allocated the payment of £xxx to the arrears and the remaining £xxx towards your loan as an additional payments therefore saving you £xxx in interest" They are not adding any interest anymore though anyway. The balance is the same as I have too so no problem there.

But there was no reference at all about the letter I sent them stating I was now self managing and I would be paying token payments for so long. I will just carry on as I am, maybe they're choosing to ignoring my letter. :think:

Quick phone call to Halifax, explain the situation, get them to re-allocate the payment correctly.

Creditors are much akin to children at times, as in they take time to learn new things.

debby

sourcrates wrote: »

You can go to pay plan direct you know, they are a similar organisation to stepchange.

https://www.payplan.com/?category=BRAND&keyword=payplan&gclid=CKCfyLay69MCFXEW0wodVLsPEw

Thanks for that.
We are now in the process of trying to find a bank that we can get an account with. This is because our overdraft in current one, is going to be included in the DMP.

Twins

Hello Everyone!

I just wanted to say I've spend the last hour and half writing to all my creditors telling them that I'm going to self manage my DMP from here on in! I've got 10 letters in front of me all which contain either the self DMP notice, or request for CCA or in the case of PRA Group telling them I'm not paying as they can't produce a valid CCA!

Phew! My head was all over the place when I first started and tried to type and put together what I needed to say to each creditor but now it's done it feels like a big relief!

I'm offering £1 between now and August so that I can build up some more funds and then by then I should have heard who has a valid CCA or not and then take if from there.

A big thanks to January for consistently putting up with my never ending questions :T I couldn't have put together all these 10 letters without her and thanks to Sourcrates for my silly questions too

Love the support of this page.

Thank you!

[Deleted User]

Twins wrote: »

Hello Everyone!

I just wanted to say I've spend the last hour and half writing to all my creditors telling them that I'm going to self manage my DMP from here on in! I've got 10 letters in front of me all which contain either the self DMP notice, or request for CCA or in the case of PRA Group telling them I'm not paying as they can't produce a valid CCA!

Phew! My head was all over the place when I first started and tried to type and put together what I needed to say to each creditor but now it's done it feels like a big relief!

I'm offering £1 between now and August so that I can build up some more funds and then by then I should have heard who has a valid CCA or not and then take if from there.

A big thanks to January for consistently putting up with my never ending questions :T I couldn't have put together all these 10 letters without her and thanks to Sourcrates for my silly questions too

Love the support of this page.

Thank you!

Well done on all your hard work, Twins:T. I wish you the best of luck in getting what you want from your plans:beer:.


I'm in a slightly similar situation but a bit ahead of you in that I've already (finally:o) gone self-managed thanks to all the wonderful help and support on this thread:A. I've also sent off my CCA requests but it is taking an age to get anything back:eek:. Even an initial acknowledgement that they are working on it would be nice in a couple of cases;). Two of the 'sold on' ones wrote straight back saying they had to refer back to the original creditor for the requested information. I've high hopes that these will fail to produce what I asked for as the debts are so old:j. Just wanted to say, be patient as these companies work in mysteriously slow ways;).


Sorry, a few questions which I hope you don't find intrusive or nosy:o. Did you request CCA from PRA group a while ago, seeing as you already know that they can't produce what you wanted? How long did it take from your initial request to your finding out they couldn't comply? Did they actually tell you that the debt was unenforceable (as I know MBNA has done with some posters on here)? Do they actually tell you that they can't come up with the goods or do they leave things in limbo?

Julie67

Good morning all,

Carbootcrazy Twins as you know we are in the same position as you guys, letters sent off informing our creditors we are now self managed and telling them we are going to be making token payments for the next 6 months.

I've got a question. I've sent off a CCA to our biggest creditor Cabot who I've heard are hopeless at providing these, fingers crossed.
I will do the other five this week. But if they cannot provide them, what's the next step? I realise the debt would be unenforceable but then see people saying they have offered them 10%. Has anyone ever had that accepted after they can't produce the CCA. We owe them almost £13,000 so 10% result would feel like a miracle!

[Deleted User]

Julie67 wrote: »

Good morning all,

Carbootcrazy Twins as you know we are in the same position as you guys, letters sent off informing our creditors we are now self managed and telling them we are going to be making token payments for the next 6 months.

I've got a question. I've sent off a CCA to our biggest creditor Cabot who I've heard are hopeless at providing these, fingers crossed.
I will do the other five this week. But if they cannot provide them, what's the next step? I realise the debt would be unenforceable but then see people saying they have offered them 10%. Has anyone ever had that accepted after they can't produce the CCA. We owe them almost £13,000 so 10% result would feel like a miracle!

I think January is the girl to answer this, Julie:)

I know that just because the debts are unenforceable it doesn't mean that you don't still owe the money. I get confused by this but sourcrates, whose advice is so valuable on all debt topics, says (as I understood it) that we can just walk away from the debt as the creditors wouldn't achieve a successful outcome even if they took us to court for payment.

Some of us don't feel comfortable doing that and would like to sign off on the debt by paying a F&F, however small. I don't see this as dishonourable as the creditors have made thousands out of our (mine anyway) difficulties by slapping on obscene amounts of interest over the years and upping our credit limits even when it was obvious that we were struggling to repay what we'd already borrowed:mad:.


Some creditors give a settlement figure at the start but January suggests not paying anything to the creditors who can't comply with the CCA request and they will probably come back with a lower settlement figure:j. I think from that point that you have a good chance of negotiating it down to the bare minimum.


I'm sure January will be along soon to put it a lot clearer than I have. What I've said is my own interpretation of things and could well be wrong:o. I'm still waiting for the requested CCA information so it might be a while before I decide what I need to do next;)