DMP mutual support thread part 13 !!

Queen_of_Swords

My DMP with SC starts 1 April, so no payments made yet, and prior to this I have only missed 2 regular payments. Today I received a letter from Barclaycard telling me that due to the amount offered being less than standard minimum monthly payment, they are defaulting the account. From what I have learned so far, on this forum, that is a good thing?

Willing2Learn

Yes, that is a good thing, as the 'toxic' account will be removed from your credit files six years from the date of default. Conversely, if they were instead to mark your file as an arrangement to pay (AP), then the 'toxic' account would remain on your file six years from the account being settled. Another reason a default is good, is that I believe they cannot apply further interest once the account has defaulted.

So a default is good news

Willing2Learn

bristol2020 wrote: »

I have a question regarding my DMP with Stepchange. Im in a position where I could settle in full, but as my whole financial mess is a result of the payday loan merry-go-round im loathe to do so. I was completely unaware that I could contact the payday loan companies and ask for a refund on interest etc because of irresponsible lending, at least until January of this year when I fired off multiple letters etc.
As my PDL's were all over 6 years old its most likely going to be a long winded process before I see any redress, and most will have to go to the FO im sure.
So back to my current situation and my DMP with Stepchange. Do I ask them to negotiate on my behalf or should I contact my creditors direct? One lender makes up 90% of my current debt, and there are five other smaller debts with other lenders.
And if i do go direct and we reach a mutual agreement in writing (I assume i need to stipulate that the debt has not already been sold on or nor will it be after settlement), should I then get someone else to clear the debts on my behalf - i.e they pay and I give them the money, or is it ok If I pay on my debit card or bank transfer etc?
Thanks in advance

Hi,


Since the debts are all old debts, then if it were me, I would submit a CCA request for each debt, to check whether your creditors have compliant paperwork or not. If they cannot provide you with compliant paperwork, then the applicable debt would be unenforceable.

Queen_of_Swords

Willing2Learn wrote: »

Yes, that is a good thing, as the 'toxic' account will be removed from your credit files six years from the date of default. Conversely, if they were instead to mark your file as an arrangement to pay (AP), then the 'toxic' account would remain on your file six years from the account being settled. Another reason a default is good, is that I believe they cannot apply further interest once the account has defaulted.

So a default is good news

That's good! I thought that was the case. Thanks for your replyWilling2Learn.

I can't believe how calm I feel at such words as "default" etc! It was just over 2 months ago I first posted, and I remember how low I was, and how trapped I felt, and feeling as though there was no way out of the terrible hole I had dug for myself.I know I still have a long way to go, and a lot to pay back, but for the first time in ages I feel in control!

:T to all of you on this forum, for all your knowledge and help.

Terrifiedindebt

Hi I’ve been reading all the various posts on this forum for the last few days and today sat down worked out my total debts (mine and partner) and ashamed to say in excess of £50k - all credit card debts which I’ve been burying my head in sand over for a few years.
Decided today was the day to contact StepChange and they were very helpful and they’ve emailed me the paperwork to complete and return and suggested my first payment should be made in May or June which only leaves me 2 months at most to save for my EF. Having read the various posts on here I’m wondering - do I now contact my creditors and tell them I’m working things through with StepChange and that I be making my first payment through StepChange in July (to give me a further month for my EF?) StepChange wanted me to start paying in May and then agreed June so I don’t know if i can re-negotiate July with them? Also if i am to write to my creditors at this point can I tell them to contact me via email not by post - my nosey neighbour has opened two credit card statements in the last 5 months that were delivered to her property in error (quite similar house name) and I feel embarrassed enough about my situation without having her gloating at me when she hands letters over that she has (mistakenly!!) opened. Would be grateful of any advice in moving forward with this - just wish I had done something sooner instead of spending months worrying and having sleepless nights and getting further into debt. Thanks in advance

Suseka97

Terrifiedindebt wrote: »

........
Decided today was the day to contact StepChange and they were very helpful and they’ve emailed me the paperwork to complete and return and suggested my first payment should :)be made in May or June which only leaves me 2 months at most to save for my EF. Having read the various posts on here I’m wondering - do I now contact my creditors and tell them I’m working things through with StepChange and that I be making my first payment through StepChange in July (to give me a further month for my EF?) .........

Also if i am to write to my creditors at this point can I tell them to contact me via email not by post -

Welcome to the forum and good luck with your DMP journey

To answer your first question - I would simply delay sending back the paperwork and enter a start date of July, if that's what you want. Personally I'd leave it a good 6 months (as you will have read is the advice we generally offer in order to save a decent EF). You may have come across sourcrates comment on this a few posts up advising folks that SC is funded by the banks and they will want to get you repaying by your chosen method quickly and are not interested in your EF, so in that you have to take care of yourself. It's a shame that most folks come on here after having already contacted SC and jump too quickly into their DMP. I did all those years ago, and regretted it. In saying this I'm not criticising SC, that's their job and they are a great help to people in your situation.

Its important that folks build up an EF because you will have no access to credit once the DMP kicks in and life has a habit of throwing curveballs at you. A broken boiler, car that needs fixing, washing machine breaks down etc, etc. So what you want to avoid is having to mess around with your DMP should the unexpected happen.

To answer your second question, yes - you can ask your creditors to contact you via email, rather than by post. A lot of folks prefer electronic communications, the main thing is to ensure you save those emails (I'd print hard copies) so you have an audit trail of anything that is agreed between you and them.

Azza7

Well Very coming in hard and fast.I missed my first payment beginning of last week .Posted letter same day explaining my financial problems, told them I was getting advice from Age uk and Stepchange, will be doing a dmp .....could they hold account for 2 months and write only.Since then Ive had 3 texts,2 emails and 2 letters and yesterday a breakfast call (8.15am) about missed payment.At first he said he hadnt got my letter but then said oh yes my colleague forgot to put it on hold but 30 days only still paying interest and if we dont hear by then there will be more calls.I only owe them £399 but theyve already added another £33 late charge and interest.Ive saved £250 ef so far but feel depressed and so tempted to pay them off.But I cant do that with everyone I owe £21 k.Could be 6 months or more paying extra 33 till they finally default.Would wecome advice do I stand firm.Stepchange also emailed me re plan but want to hold off as long as I can as no assets .Thanks for reading it really helps to unload on someone besides the dog !x

sourcrates

Azza7 wrote: »

Would wecome advice do I stand firm.Stepchange also emailed me re plan but want to hold off as long as I can as no assets .Thanks for reading it really helps to unload on someone besides the dog !x

Defenatly stay firm, this is exactly why you should not speak to these people on the phone, they say we are adding this, and that, plus interest, blah blah, the script they use is designed to make you feel this way, and pay up, its all aimed at getting you to pay, they try to play mind games with you, so stay off the phone, and they cant do that anymore.


The best way to deal with creditors is to write explaining your intentions, then monitor what they send you, but otherwise ignore them, until your ready to start paying them, update them at your leisure, under current data protection laws you can decide how they are to contact you, so do so, block phone numbers, ask for email contact only, you choose.

Terrifiedindebt

Thanks Suseka97 for the advice - I keep reading and re-reading old posts and everyone suggests building up an EF first - not got much disposable income to build it up but guess if I can stretch it out for 3 months before the DMP commences then it’s something small in the pot!
I’ve organised a new bank account and I’m going to write to the creditors to tell them I’m in negotiation with SC and looking to start making payments in July and to tell them if they wish to discuss anything with me then it must be via email - not quite sure how to word that letter so any advice is appreciated if there is any legal jargon I can follow. Need to make sure I draw out my salary from my old bank account as soon as it hits the account (too late to get it sorted for end of March salary) but frightened that they could use the offset rule with my wages ....and once I get the money into my new bank account need to contact all he companies I have ddr with for utilities etc to make sure that all ddr transferred too! Such a lot of head work and worrying that ddr that are due at start of month will try and collect from my old bank account - is it better possibly on my old online bank account for me to cancel all ddr so that the utility companies write to me?? Sorry to be a pain and ask silly questions but I know the advice given on this forum is from other people who have been in this situation. Any responses greatly appreciated for the dmp newbie! :

sourcrates

Terrifiedindebt wrote: »

I’m in negotiation with SC and looking to start making payments in July and to tell them if they wish to discuss anything with me then it must be via email - not quite sure how to word that letter so any advice is appreciated.


dd that are due at start of month will try and collect from my old bank account - is it better possibly on my old online bank account for me to cancel all ddr so that the utility companies write to me?? :

Hi,

You can change bank details on most utility accounts websites, or give them a quick ring to update them, cancel your old ones first.

The offset rule is not something widly used, and certainly not as quickly as you suggest, banks just dont work that fast lol.

As regards contact, something along these lines may be useful :


Dear Sirs,

Re acc no : xxxx xxxx

As you are aware i am in severe financial difficulty, and will soon be entering into a debt mangement plan, after taking advice from stepchange debt charity.

To avoid unnessessary and confusing communications, i must insist that all future contact be made by email only, my prefered email address is ...(enter email address here)....!

Please update your systems immediatly, and remove any phone numbers you currently have for me.


Yours sincerely