DMP mutual support thread part 13 !!

sourcrates

Skittlesjo wrote: »

So had a response back from two of my payday loans explaining they are willing to cancel my CPA arrangement .

Hi,


You should really have already done this yourself to avoid them clearing out your account, you must always antisipate the worst when dealing with payday lenders in particular, and creditors in general.

Skittlesjo

I cancelled them by writing to them asking them to be cancelled as per advice? Was this not right then? I didn’t do it with Stepchange though? They haven’t cleared anything out of my bank thank god I literally have £10 to my name.

sourcrates

Skittlesjo wrote: »

I cancelled them by writing to them asking them to be cancelled as per advice? Was this not right then? I didn’t do it with Stepchange though? They haven’t cleared anything out of my bank thank god I literally have £10 to my name.

Yes and No.


CPA`s (constant payment authority) are usually cancelled by ringing or writing to your bank, its them who cancel the arrangement, not the creditor, as the arrangement is for the bank to allow the creditor to take payment on a regular basis with no further permissions required from you.

You are lucky in the fact that the payday lenders who survived the rule changes a couple of years ago, now have to follow FCA rules, and cleaning out someones bank account, no longer happens (hopefully).

Prior to regulation, it was common for this to happen for non payment, mainly by the foreign based lenders, who wouldnt think twice about doing it, another favorite was the setting up of a DD to clear out the account of a non payer, and yes, without the debtors permision, some people lost thousands in this way, the first you knew of it was when you checked your account, and there was no money in it, those days are long gone now thankfully.

Line_In_The_Sand

A quick question & an update from me :-)

Question - Our new joint account is with Monzo. I like that I can set up pots to correspond with my StepChange budget categories. It's going to make it easier for us to manage things going forwards. All the advice here is to open a basic account though - is there a reason for that beyond not having an overdraft and not picking something that's linked to your creditors?

My understanding is that Monzo only run a soft credit check, unless you apply for an overdraft, which we won't be doing. Are we okay to stick with them, or are we likely to run into issues?

Update - Do I get a prize for having read the whole of this thread? Thank you to everyone who has posted in here, all of your questions and answers have been so helpful to me in seeing how DMPs work. We've got our new bank account set up, and all the Direct Debits have been moved across (except for the ones going into the DMP, which I have cancelled).

We'd just made payments on everything when we finally decided enough was enough, so I'm delaying sending out letters to creditors for a little while. StepChange helped us work out a budget, and I've made a spreadsheet to help track everything. I'm going to take the next few weeks to make sure our budget is as sensible as possible - I've already thought of things we hadn't factored in. The plan is to go back to SC in a month or so, with our updated budget plan, by which time we'll have missed a payment, and I figure that by the time everything's in place, another month or two will have gone by.

The emergency fund was already looking reasonably healthy because I'd stopped trying to overpay our debts, and instead concentrated on throwing money into the EF. It's had a nice boost from a bit of a tax rebate this week, which is great timing.

Suseka97

Skittlesjo wrote: »

I cancelled them by writing to them asking them to be cancelled as per advice? Was this not right then? I didn’t do it with Stepchange though? They haven’t cleared anything out of my bank thank god I literally have £10 to my name.

To reinforce sourcrates message - you have the legal right to cancel any CPA arrangement whenever you want to, even if the payday lender refuses to cancel it. Your bank has to cancel these payments if you instruct them to. So get in touch with them asap and tell them you remove any previous authority for payments to either company to be taken with immediate effect.

biker_rob

Hi everyone

It's been 6 months since the start of my self-managed DMP. It's whizzed by and all gone extremely well. All 5 creditors have defaulted, two debts have been passed onto DCAs (all fell in line with the DMP) and nobody has called or emailed, as requested.

I've just completed my 6 month review, updated my SOA and sent out letters to my creditors with my adjusted offers. Due to a promotion at work I can pay a little more now but I'm not over-stretching myself at all.

Just wanted to say thank you so much for all of the advice given when I first ventured onto the thread last year. At the time I couldn't sleep with worry over my debts but now I hardly give them a thought as my manageable payments just go out every month along with my other outgoings.

For anybody new to the forum and DMP land, don't worry it is remarkably easy. The advice given on this forum is priceless and I learnt so much from the experts here.

If you are considering a DMP and feel its the best option for you then go for it. Once set up you can wave goodbye to all the hassle and strain of receiving phone calls on a daily basis then just get on with life.

:beer:

windsor123

Hi there I am new to this forum. I started a DMP with Stepchange last November and I am coming up to my annual review. I just wanted to know what things I need for it? when I started the DMP they didn't ask for much except wage slips which I can provide. Does anyone out there know if the review will be different and if they require bills/ bank statements etc?
I have kept up with my monthly payments and can pay a bit more from next year due to a pay rise so Im hoping nothing will go wrong as it has been a relief to have this. My debt is £9k so not huge but I am wanting to get it out of the way asap.

vicki84

Now I am getting account closure letters to I need to worry about court procedures

ElleCee

Got my first response to holding letters today.... from a bank I don’t even have debt with! ��

Was a very lovely letter (hope they’re all that nice) but they have no record of me!
I wish that were truly the case but no such luck; looks like my Virgin letter ended up with MNBA ��

Mick1000

Evening all so after talking to SC and PP I think a DMP is right for me (they both agree), prefer the idea of a self managed option though myself after reading a chunk of this forum so will probably do that.

I have one question that I'm after some second opinions on before I start.

Long story short currently my partner and I have about £1500 we can pay towards my non-priority creditors (which we have been struggling to do for best part of a year and the debt keeps rising). In a couple months time, we're having our first child (yay - can't wait!!) and then once statutory maternity kicks in by December time we'll have about £350 we can pay towards non-priority creditors.

So, do I start now as is and then change the DMP in a few months? Or go straight in with this is where we'll be by the end of the year and this is what we can afford then. SC advised me to start now and then change again once the situation has changed again. Do others agree?

Thanks
Mick