DMP mutual support thread part 13 !!

sillybilly1983

Hi guys,

I sent my offer letters out a couple of weeks ago and got my first response today from M&S bank. They have rejected my offer. It states they will send a default letter out in due course. And says to start paying the amount offered anyway.

Should I start paying the offer amount or is there something else I should do if it's refused?

I've gone self managed btw.

Thanks

Suseka97

sillybilly1983 wrote: »

Hi guys,
I sent my offer letters out a couple of weeks ago and got my first response today from M&S bank. They have rejected my offer. It states they will send a default letter out in due course. And says to start paying the amount offered anyway.
Should I start paying the offer amount or is there something else I should do if it's refused?
I've gone self managed btw.
Thanks

Just do as they suggest and start paying the offer amount, their refusal is probably just a process thing and allows them to issue the default (which is good news).

DFW_ASAP

Hi All,

Apologies in advance for asking for advice which has probably been posted already. As you can appreciate there is a lot of information to take in from all the pages of this thread and the other 12 versions of it. I have been skimming through this thread and the F+F thread and want to consolidate what I think I have learned and ask for your advice.

Situation:- Unsecured debt totalling £51k and completely unmanageable in terms of minimum payments. Got in touch with stepchange who advised insolvency but did not want to go down this route for various reasons so agreed on a DMP. I was completely honest and all of my surplus is going towards my creditors with the DMP to last 9 years and 7 months.

My 1st payment towards the plan goes out in 2 weeks so I am literally at the start of the plan.
SC are paying everyone on a pro rata basis. I have been in touch with most of my creditors, most of whom have agreed to stop interest and charges and default the accounts, some within 2 months and others within 6. This is good as it means my defaults will fall off after 6 years.

I would like advice on the following points.
CCA- My debts (8 Credit cards, 2 Loans) were all taken out within the last 3 years from high street banks. Is there any point doing this request.

F+F settlement - When can i start to make these offers, ie once they have sold, after a certain number of years etc. Also. what % do they accept as F+F settlements. I have seen people laughing of 50% offers on threads.

Self managed DMP- Prior to speaking to SC last month I knew nothing about DMPs. However I have seen mention of self managed plans. I was brutally honest with SC and I now regret it as I will have barely anything left to save at the end of each month. Also I cannot amend what each creditor has paid. I want to pay each creditor less but do not want to disturb the process as I am just starting.

Ultimately I want to default as quick as possible, pay the least amount possible each month with the view of clearing with F+F settlements.

motivated

Hi DFW_ASAP

I too started with SC and let our DMP roll for a few months. I then contacted them to say I was going self managed. I used the NEDCAB site which was recommended on here and I organise my own lower payments now. It was painless and simple to set up.

You can tell your creditors you will be paying token payments for a few months. This will allow you to build up an emergency fund.

This should also speed up the defaults. It did for us.

I'm not that clued up on CCAs to be honest but stick around someone will be along soon to advise you further

Good luck

sourcrates

Hi DFW_ASAP,

Wouldn’t bother with CCA’s to be honest.

Debts that young, will, most likely of been taken out online, they should have no trouble complying.

If the debts were a few years older, defaulted, and sold on a few times, I would say yes, but in your case it’s hardly worth it.

terman

Hi All


To Phone or not to Phone that is the Question..


After initially talking to Step Change & Payplan Mr and Mrs terman decided to go self managed and sent out I&E and Repayment Plans as suggested by Payplan.


We stated in our letters that I did not wish to be contacted by Phone as it was difficult to discuss in this way and we didn't want our Children to find out about our Financial Circumstances and suggested that they Emailed, Electronic Messaged or Sent a Letter.


A few of the creditors (Smaller Ones £5K and below) have accepted the plans and frozen interest.

The other ones have emailed to ask me to phone, sent texts messages to ask me to phone and phoned many times and left messages on my answer machines to ask me to phone.


I have further sent emails, Electronic Messages and More letters explaining I wish them communicate in writing and have asked them to remove my phone numbers from the account so they don't phone in error.


They now seem to have stopped phoning, but have not Frozen any Interest even for 30 days or accepted or requested more information.


They have sent more letters saying I should phone and if I don't wish to phone I can authorise someone to act on my behalf and phone them.


As they have not frozen interest (A*mex,HS*C,Vir*in) in particular should I phone or is this normal and I just need to keep sending out letters asking them to communicate in writing?


Thanks Mr terman

DFW_ASAP

Hi DFW_ASAP

I too started with SC and let our DMP roll for a few months. I then contacted them to say I was going self managed. I used the NEDCAB site which was recommended on here and I organise my own lower payments now. It was painless and simple to set up.

You can tell your creditors you will be paying token payments for a few months. This will allow you to build up an emergency fund.

This should also speed up the defaults. It did for us.

I'm not that clued up on CCAs to be honest but stick around someone will be along soon to advise you further

Good luck

Thanks motivated. Will i need to show proof of income and expenses etc or can I just say im making token payments of between £1 and £10. I want to speed up my default. Also If i do this will collection letters get worse? They have said they will only send me regulatory messages and defaults in the post

motivated

DFW_ASAP
We just sent our I&E to each creditor which states the amount we will be paying each month. I added that we had car repairs and high vet bills that needed paying so would be paying token payments of £1 for 6 months and would then start paying the original payment. They were fine with us about it.

Everything we needed, budgets, I&E, letters for creditors etc was generated on the NEDCAB site. We just printed, checked and posted.
M

Suseka97

terman wrote: »

Hi All
To Phone or not to Phone that is the Question..
They now seem to have stopped phoning, but have not Frozen any Interest even for 30 days or accepted or requested more information.
They have sent more letters saying I should phone and if I don't wish to phone I can authorise someone to act on my behalf and phone them.
As they have not frozen interest (A*mex,HS*C,Vir*in) in particular should I phone or is this normal and I just need to keep sending out letters asking them to communicate in writing?
Thanks Mr terman

Ultimately creditors don't have to stop interest, although as you have already experienced many do. As to phoning I suggest you don't - mainly so that you have proof of all communications, they can say anything on the phone. One way to get interest stopped is to push for a default and the easiest way to do that is to stop paying them anything or pay tokens only. If that would worry you, you could write and say that you've got an unexpected bill (car, vet, boiler etc.) and so for the next 6 months you can only make x payment and will recommence the DMP offer payment in x month. That might speed up the process. Or just continue with the DMP payment offer and you may find they stop interest eventually (some take up to 3 - 6 months). It's just a waiting game I'm afraid - but if after say 3 - 6 months they've not done so you can write and complain. I did that several months into my DMP with one creditor and they refunded all interest and defaulted me. Another took over a year - there's just no telling what each will do or when.

Mcfry80

Hi I'm a lurker and not a poster but the advice on here has been invaluable. Been on a DMP with stepchange for 20 months only missed 1 payment early on as cooker broke and had not found this forum before we set up our Dmp and didn't have an emergency fund set up.

My problem is my husband had a car accident this week and the car is very old and will be a write off as only worth around 500.00. By the time they take there excess will be lucky to have 100.00 left for another car.

We live in an area with poor public transport and it will take 3hrs each way to get to work/back and cost around 65.00 per week in travel after working a 12 hr day.

My question is has anyone been in a similar situation and do I have any options. Had a bit of an emergency fund but 4 days before Xmas the car needed 2 new tyres and the brakes done and then a stone cracked the windscreen so in total 400.00 was gone leaving nothing in the pot.

Ideally we would need to cancel our dmp payments for 6 months to be able to buy a new car and have a tiny bit for emergencies but am really worried that our creditors won't accept this and start the interest up again.

Sorry for the long post and any advise would be much appreciated.