DMP mutual support thread part 13 !!

purplepaws

jupitercrash wrote: »

Sorry to keep going on, I appreciate there are lots of people here with questions & you're all working hard to answer them all - but can anyone give me any guidance on this?

Hi Jupitercrash,


I wanted to reassure you about dealing with MBNA. My experience so far, is that they are really kind when dealing with people with MH problems. My husband was diagnosed as BPD last year - so I finally understand why he used to go out and buy a new car after remortgaging the house to pay for it!

I've set up his DPB and both written and spoken to MBNA. On the phone they have been fab, very caring and considerate. To be honest, I have been shocked by just how nice they have been. It would appear that many lenders are very aware of the effects of BPD and money. They have asked for a letter from his consultant to confirm his diagnosis, which with my hubbies consent, they now have. I guess it is up to the individual, if you want to share this info, but now they have confirmation of his diagnosis they have been totally supportive and only contact me every 6 months or so. (We are paying nothing, interest has been frozen on £25,000+ debt)


I do believe that these companies are trying to be better when dealing with customers who suffer with MH issues, this can only be a good thing.


Good luck x

Suseka97

startingadmp wrote: »

When should I send a letter to creditors? Before the payments are attempted, or after the first isn't paid? What should it say? How can I stretch non-payment out 3 months before actually starting the DMP formally?

You should write to them now to let them know what is happening; let them know you are in financial difficulty and that you are working with StepChange to come up with a solution. In terms of stretching things out - you can simply say that you expect to be back in touch with them in x month at which point you expect to be in a position to make a repayment offer (or words to that effect).

Suseka97

YorkieDave wrote: »

I’ve never hear of an EF before. Is it common practice and accepted by creditors to set up an
EF before starting a DMP? Do all creditors accept this and not try to take you to court before 6 months is up? Two of the loans I set up were for my business but in my name, with Shawbrook and Zopa. Will a DMP on those affect my business at all?

I think you are best advised to contact one of the debt charities because business related debts are handled differently to standard DMPs. We advise people to save an EF before launching into a DMP as a matter of course, but there's no 'common practice' accepted by creditors.

Suseka97

sammy_Beebee wrote: »

So I have just received my first default notice from Tesco Bank (Credit Card balance £1347. Letter sounded scary but I'm assuming in the grand scheme of things the default is actually a positive. My DMP is due to start on the 1st November and I have heard back from most creditors saying that they accept my payment plan and my account has moved to collections department, presumably this will lead to further defaults?

It's good to hear you've managed to get that first default, which will mean interest and charges will stop and the clock is now ticking down in terms of its impact on your credit file. As for the others, whilst they may have moved them onto collections do keep an eye on them. It doesn't always mean a default will follow and you could end up with AP/AR markers instead, so worth checking from time to time.

fullofcold

Husband is in DMP. I have started a new job which means that I may be able to start eating into the balance of what he owes to various creditors. Long term aim is to get it paid off and when the arrangements drop off the credit file remortgage as a joint mortgage (everything is currently in my sole name as I work in finance and we cannot be financially linked or bye bye job).

He owes a total of £33500 (accrued before we got together). If we work hard we can probably get rid in a couple of years. It will be a lot of hard work but we could probably just about manage it.

Husband's DMP is with a fee charging company. I have tried to get him to change but he sticks his head in the sand when it comes to stuff like this. My question is can I, as a third party, start paying bits off directly with the companies that he owes (some balances are £150 or so) or will it cause issues with the company he has arranged the DMP through. If it will I'll just chuck money into a savings account until we have enough. I'm on fixed rate for another 3 years anyway, and I reckon I *might* be able to save enough between now and then to repay it in full.

Suseka97

fullofcold wrote: »

Husband is in DMP. I have started a new job which means that I may be able to start eating into the balance of what he owes to various creditors. Long term aim is to get it paid off and when the arrangements drop off the credit file remortgage as a joint mortgage (everything is currently in my sole name as I work in finance and we cannot be financially linked or bye bye job).

In terms of the length of time this DMP will affect his credit file - you need to make sure that his accounts have been defaulted. Hopefully they have, but if not it will have a much longer impact than you may think.

fullofcold wrote: »

He owes a total of £33500 (accrued before we got together). Husband's DMP is with a fee charging company. I have tried to get him to change but he sticks his head in the sand when it comes to stuff like this. My question is can I, as a third party, start paying bits off directly with the companies that he owes (some balances are £150 or so) or will it cause issues with the company he has arranged the DMP through. If it will I'll just chuck money into a savings account until we have enough. I'm on fixed rate for another 3 years anyway, and I reckon I *might* be able to save enough between now and then to repay it in full.

This is where he needs to listen. He needs to lift his head out of the sand and dump that fee charging company. Maybe one way to bring this reality to him is to add up just how much he is paying them to simply act as a third party, taking his payment and distributing it to his creditors. That is ALL they are doing. You could then show him just how much more quickly you could be reducing those debts.

You say that you are hoping that you can clear these debts in a few years.. well, you are certainly going to be in a much better position to do that if he stops paying that fee. I'd imagine that company would not be in favour of you paying off those smaller debts - but that doesn't stop you. They won't suddenly stop representing him (and I use that term loosely) because they will want to continue to take that nice monthly fee.

I imagine one of the reasons he is reluctant to do anything about this is because he simply can't face dealing with it and so if he continues to refuse, have you considered taking this on and self-managing it for him? It's very straightforward and there are plenty of us on here who can help you do that. There are also very good online resources - such as NEDCAB and DebtCamel which you would do well to familiarise yourself with.

All you would need to do is give that company notice that you intend to end the contract with them. Get a list of all outstanding balances and payment instructions and then set up the standing orders to each. That's it.. then you stop paying that fee and can start saving that towards full and final settlements, or use whatever that fee was to pay off some of the smaller debts. A DMP is an informal arrangement and you can run it how you choose to.

fullofcold

I know it'll be 6 years after it is repaid that we can remortgage and add him to the deeds. It is a long term plan (I work in mortgages and protection so not clueless, just no idea about DMPs in the way they work). I'm currently paying down a loan that I have, which if I'm careful enough will be gone by next year.

Husband went into this DMP about 7 years ago with Gregory Pennington and I'm thinking that once my loan is done I'll be in a much better position to start hammering the money owed.

I've offered many times to speak to his creditors and get a payment plan set up directly but he says he wants to let sleeping dogs lie until we're in a position to repay it in full. I've told him I think he's an idiot, but I think he is afraid that they'll start being difficult.

fullofcold

*such as NEDCAB and DebtCamel which you would do well to familiarise yourself with*

Thank you, I will take a look later and have a chat with him about getting this sorted. Appreciate your help. Hopefully I'll be back with all sorts of questions later!

ditty1234

Hi I am asking this question here as it is hard to start a DMP without defaulting on loans and cards. I am on a DMP with Step Change. My house and car insurance is coming up for renewal, and while I think my house insurance might be reasonable as I have had no claims, I still will not be able to pay it in full, so it will have to be monthly. Will the company do a credit check when I'm already with them?
My car insurance is an other story - last year I totalled my car in January, and while not my fault I hit a ladder that fell off a truck, without any witnesses, so it is my fault in insurance language. My car was totalled. Also I now have a UK drivers licence which I had to take from scratch even though I have had a EU license since 1998, but it is still a new license as could not convert. I got a random quote online and it was over £800. As I have defaulted 3 credit cards since May, will this affect the cost of insurance over the year - I won't have £800 spare in December.
I am thinking I will just bite it and stay with my current insurer as I am not loosing all of my no-claims discount as it was protected, I just don't know yet what they will quote.
Any ideas?

sourcrates

ditty1234 wrote: »

Hi I am asking this question here as it is hard to start a DMP without defaulting on loans and cards. I am on a DMP with Step Change. My house and car insurance is coming up for renewal, and while I think my house insurance might be reasonable as I have had no claims, I still will not be able to pay it in full, so it will have to be monthly. Will the company do a credit check when I'm already with them?
My car insurance is an other story - last year I totalled my car in January, and while not my fault I hit a ladder that fell off a truck, without any witnesses, so it is my fault in insurance language. My car was totalled. Also I now have a UK drivers licence which I had to take from scratch even though I have had a EU license since 1998, but it is still a new license as could not convert. I got a random quote online and it was over £800. As I have defaulted 3 credit cards since May, will this affect the cost of insurance over the year - I won't have £800 spare in December.
I am thinking I will just bite it and stay with my current insurer as I am not loosing all of my no-claims discount as it was protected, I just don't know yet what they will quote.
Any ideas?

Hi,

Even bankruptcy does not Barr you from insurance services, every driver needs car insurance, normally these things are not affected at all, and you can still pay monthly.