dmp help

Max_and_sasha

Hi tell

Do you not have a cooling off period with your current dmp, tell them you have changed your mind


Max

tkell

This comes directly from GW Finance contract:
6. Your Right to Terminate
6.1 You have the right to cancel this Agreement under section 1.4
6.2 You may also cancel this Agreement at any time if the total Fees payable under the Debt Management Programme differ significantly
from the fees we estimate to you at the commencement of the Agreement provided that this right to cancellation will not be available in
the event that such difference in Fees is due to any misrepresentation by you of your finances, including, without limitation, your Creditors. In the event of cancellation under this section 6.2, we reserve the right to retain the Initial Fee.
6.3 In addition to your right to cancel under sections 6.1 and 6.2, you may also end this Agreement at any time by giving us two weeks prior notice which you may serve at any time, by any communication means, whether or not you believe we have been in breach of our obligations under this Agreement. In the event of cancellation under this section 6.3 we reserve the right to retain the Initial Fee and any management fees deducted from payments distributed between you’re Creditors


fees are as follows: £600 set up fee (split into 4 payments of £150) and a monthly fee of £78 pounds for the remaining 21 months set out to clear my debt. They are supposed to be taking £412 out of my bank account on Wednesday. All my creditors have been contacted by them as I can see it on each of their websites. I spoke to GW finance by phone initially and signed an agreement with them on Friday. They said they require two weeks prior notice in writing to cancel and they have the right to retain the set-up fee of £600

Max_and_sasha

Hi tkell,

Phone GW tomorrow and see what they say when you tell them your are cancelling there services , all I can say to you is PLEASE do not be like my wife and I paying for a dmp that you can get done for nothing, I paid a dmp for 12 years but we are doing our own dmp with the help from this great forum

Max

DCFC79

tkell wrote: »

I have 5 payday loans, 2 credit cards and an overdraft with my bank. total debt is approx £8500.

I have cancelled my CPA's with the bank. well, i phoned and instructed them to.

Im just concerned that I am supposed to pay the first instalment to my creditors on Wednesday. If i cancel with GW finance (debt management company) then my creditors won't be payed and i will have default notices and a lot of hassle.

Thats a small amount for a dmp, you really considered all options.

tkell

Thats what I was told was my best option by GW Finance. what else could I do?

fatbelly

tkell wrote: »

fees are as follows: £600 set up fee (split into 4 payments of £150) and a monthly fee of £78 pounds for the remaining 21 months set out to clear my debt. They are supposed to be taking £412 out of my bank account on Wednesday. All my creditors have been contacted by them as I can see it on each of their websites. I spoke to GW finance by phone initially and signed an agreement with them on Friday. They said they require two weeks prior notice in writing to cancel and they have the right to retain the set-up fee of £600

That's £2238 fees on top of 6414 debt!

With over 5% of your debt available as surplus income, I'm surprised you need a dmp. Are you actually paying above the contractual minimum payments on some of your debts?

kimplus8

pologies if this has already been said- ive just finished an all nighter with the baby scream so im v v tired

StopIt

tkell wrote: »

Yes im being charged.Also, yes i didnt realise you could do it for free. Now that they have set it up and its happening so soon im afraid its too late to change it as step change will take at least a week to set up and i would have to give two weeks notice to this company. Im worried that i will get loads of defaults ...

You want lots of defaults, trust me.


This DMP company, as well as charging you, is mis-advising you too.


If you go straight into a DMP without getting your accounts to default, you will still be charged interest, will have no emergency fund and be in danger of setting off a fresh and worse debt crisis.


Cancel this paid DMP right now, do not delay.


Then Speak to StepChange. If you are advised that a DMP is the way to go (Although as fatbelly says, on paper it doesn't look like the best idea, but you're using PDL facilities which suggests that it is!) then send token payments of £1 (or nothing) to your creditors, along with written notice that you'll be starting a DMP in September or so.


Use that period to build up an emergency fund, by then your creditors should have defaulted you, switching off interest and giving 6 years before the defaults leave your credit files.


The fact that you have multiple PDL products on your file means your credit file is pretty much trashed anyway, so don't fear the defaults.

Westminster

You can't generally avoid defaults going on to a DMP

Actually you want them issued ASAP to limit the long term damage to a maximum of 6 years from your last default date.

6 years probably sounds like a ridiculously long time - however, it's nothing compared to the significant damage that a creditor (like MBNA) can inflict by leaving you on Arrangement to Pay which means evidence of your DMP remains visible on future credit searches for 6 years AFTER the debt is paid off and the account is closed.

This happened to me and it took a lot of work to sort it out (never did get MBNA to issue a default).

In the same position again, I would pay £1 per month as a token payment to each creditor until they issued a default - then I would increase their payment to the usual pro-rata of your excess income.

tkell

I have been taking out PDLs since last July. I have never defaulted and always paid the installments in full and on time. This Wednesday however i will find myself in a situation where all wages will go on PDL and nothing left to live on. So I panicked, went to GW Finance. I phoned bank and cancelled all CPA's.

I just emailed GW instructing that i wished to cancel and not to take payment on Wednesday.

Next step: write to all my creditors? How will I pay a token payment - via phone and debit card? And also contact stepchange and set up a dmp for September?

Sorry for all the questions ive just never been in this situation before. I need someone to spell it out like a dummies guide to...