dmp help

StopIt

tkell wrote: »

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...

You can pay via Bank Transfer. Nearly all creditors will have their bank details on a "How to Pay" page so pay via that.


Yes, send a letter saying you're facing financial distress and you're going to be seeking help from StepChange IRT getting a DMP set up.


Go here: https://forums.moneysavingexpert.com/discussion/4895819 (Bring a few biscuits and a strong cup of hot beverage).


And yes, tell GW Finance to take a running jump. Paying £2k on a £6.5k debt is literally being robbed for being poor. Screw these leeches.

sourcrates

tkell wrote: »

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

£600 set up fee and £78 per month ????? argh !!!!!

What on earth were you thinking ???

That's insane, these companies should not be allowed to pray on people when there at there most vulnerable !!!

Also you need to take more conserted action to stop any of these companies taking money from your account, cancelling CPA's is not always adequate, report your debt card lost, you will get a new card, with a new number, one they won't know, so they can't remove any money from your account, you need to do this now, today.

You have a choice here, you may still be defaulted anyway as you will be in debt management, so your credit file should not be top priority right now.

You can save yourself this extortionate fee by going to stepchange or doing it yourself, you can request payment details yourself from your creditors, please just slow down and do this the right way, I hate to see people taken advantage of in this way.

If you want more detailed info, please feel free to PM me.

StopIt

sourcrates wrote: »

£600 set up fee and £78 per month ????? argh !!!!!

What on earth were you thinking ???

That's insane, these companies should not be allowed to pray on people when there at there most vulnerable !!!

Indeed.


I mean, if they had to advertise honestly, it'll be something like this:


"Have Money Troubles? Struggling to get by? Having to rely on short term credit to pay the bills? Fancy giving us some more money you don't have? Then come to us for a Debt Solution*"


*Solution will put you into further hardship, we will also not provide any service that you can not do yourself, or get assisted with by a free service.

Twins

Westminster wrote: »

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.

Hi Westminster, sorry to hijack this post and take it off topic slightly but wondered if you can answer a question regarding the 6 year marker on the credit file.

I have a small balance left with NCO and they've never defaulted me and have marked the account as AP. I've written to them asking them to put a default on the account from 2011 which is when I entered my DMP. When I spoke to them on the phone they said that as I have been paying above the minimum that they wouldn't default me.
They've accepted a F&F offer but I haven't paid it yet until I hear back in writing about the default date. They have given me until the 3rd June on the F&F offer otherwise the balance becomes full again.
I'm not sure what to do, shall I pay then F&F and argue the default date or shall I pay the whole balance over time but the AP still stays on file?

Thank you for any help!

glentoran99

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 are getting defaults anyway, that's part and parcel of the DMP, cancel the charging company immediately

tkell

Cancelling my card isn't really an option for me as I need it for some of my priority payments at present.

I have successfully cancelled the DMP with GW Finance and set one up to start with STEPCHANGE in July. I have contacted all my creditors requesting to put account on hold , giving them my step change reference and offered a token payment for each that I have worked out with step change. switching bank account to santander without taking my overdraft with me. contacted bank and cancelled all CPA's.

Anything else I should do? My income will be 1940, paying £369 a month to my creditors which should have me debt free in 1 year and 8 months.

sourcrates

tkell wrote: »

Cancelling my card isn't really an option for me as I need it for some of my priority payments at present.

I have successfully cancelled the DMP with GW Finance and set one up to start with STEPCHANGE in July. I have contacted all my creditors requesting to put account on hold , giving them my step change reference and offered a token payment for each that I have worked out with step change. switching bank account to santander without taking my overdraft with me. contacted bank and cancelled all CPA's.

Anything else I should do? My income will be 1940, paying £369 a month to my creditors which should have me debt free in 1 year and 8 months.

Well done, bloody good show !!!!!!

patman99

With Stepchange, you have the option of a Temporary Payment Plan. This will force all your creditors to default. Once this has happened, then is the time to switch to a DMP.

Anyway, you might be able to avoid a DMP entirely. If you wish to put your SoA on this site, we might be able to advise you better.

debtisnotme

tkell wrote: »

Cancelling my card isn't really an option for me as I need it for some of my priority payments at present.

I have successfully cancelled the DMP with GW Finance and set one up to start with STEPCHANGE in July. I have contacted all my creditors requesting to put account on hold , giving them my step change reference and offered a token payment for each that I have worked out with step change. switching bank account to santander without taking my overdraft with me. contacted bank and cancelled all CPA's.

Anything else I should do? My income will be 1940, paying £369 a month to my creditors which should have me debt free in 1 year and 8 months.

Thank goodness you found us :j

tkell

Statement of Affairs

income : 1940 (2127 - 234 pension)

Expenditure (monthly):
Rent: 450
Secured Loan from ireland: £100
water: 10
gas 50
electric 50
council tax 40
court fine : 472 (set up to pay 80 a month for six months - then the money will go towards DMP)
Phone: £70 - contacting vodafone to see if i can go on a cheaper plan)
Internet: £16
Satellite £20
Tv licence: 8
Car service £33
road tax £2
car insurance £165 - likely to go up as court gave me 5 penalty points (i missed FPN notice deadline. Paid fine on time but was late sending my licence and court gave me 472 fine and 5 points)
Fuel 80
Public Transport 20
Food toilitries 200
Tobacco 60
Clothing 20
Hairdressing 20
union fees 27
sports hobbies entertainment 40
sundries 10


Unsecured debt:
safety net 653.80
piggy bank :479.52
CRS (formerly lending stream ) 751.84
Llyods overdraft 4600
mr lender 230.40
quick quid 758.40
wonga 436
barclay CC 253.97
capital one CC 200

DMP ARRANGEMENT: 369 A MONTH ( INC BY 80 once my court fine is paid in 6 months). debt free in 1 year 8 months