DMP mutual support thread part 13 !!

TheWickerMan

Thanks for the advice so far. Despite some further procrastinating, I have finally taken the plunge! The letters I am sending inform them that I will be contacting StepChange and envisage a DMP starting in May 2020 (to allow a 5 month emergency fund as advised by many on here but obviously I did not say that to them). Just a few more questions if you don't mind.

-The first of the direct debits (Capital One) which I will not want to be paying is scheduled for Friday. I sent the letter by mail today. Should I cancel the direct debit now, or wait until a time when I think they've probably read the letter (let's say Wednesday). I wasn't sure if it was frowned upon to cancel the DD before they've had chance to read my correspondence.

-I have a loan through Zopa which will also go onto my DMP - does anyone have any experience with dealing with them? As it is peer-to-peer lending, I'm imagining they may be a bit more difficult to deal with

-Another loan takes payment through Continuous Payment Authority. In order to cancel that, I assume I need to ask the Loan company not to take payment, and also order my bank not to allow payment?

Many thanks.

ACA22

Hi
I’m planning on starting a dmp, although PayPlan advises Iva might be best option, would you advise trying to let the accounts default before entering the plan so the 6yr period starts as early as possible rather than run the risk of creditors putting a AR marker in its place which could double the length of time on the credit record,
Any help appreciated.

Debtress

I thought I would let you know that HSBC have agreed to wipe out 65% of my debt to them and that they have settled for a F&F!!! So happy!

Waiting to hear from Link & Cabot regarding CCA's still.

I will be going self managed now so I shall contact SC next Monday to let them know as I do not want the extra money "saved" by not paying HSBC any more to go to them, especially as they have still not produced the CCA's but there is still time for them to do so.

Suseka97

ACA22 wrote: »

Hi
I’m planning on starting a dmp, although PayPlan advises Iva might be best option, would you advise trying to let the accounts default before entering the plan so the 6yr period starts as early as possible rather than run the risk of creditors putting a AR marker in its place which could double the length of time on the credit record,
Any help appreciated.

That tends to be the general advice - early defaults are the why to go when on a DMP. I'm not sure how it works if in an IVA.

Suseka97

TheWickerMan wrote: »

-I have a loan through Zopa which will also go onto my DMP - does anyone have any experience with dealing with them? As it is peer-to-peer lending, I'm imagining they may be a bit more difficult to deal with

-Another loan takes payment through Continuous Payment Authority. In order to cancel that, I assume I need to ask the Loan company not to take payment, and also order my bank not to allow payment?.

I've no personal experience of Zopa, but even thought its a 'peer to peer' lending platform - it still has to follow FCA guidelines (surely). I've read a few threads about people dealing with Zopa and their experiences tend to differ. Zopa do give advice on their website if you are experiencing difficult in making payments - which suggests to me they should be open to an arrangement under a DMP.

As for the CPA - do get on to your bank and cancel the authority asap.

RW01

Hi, I’ve currently got 3 debts left to pay off and looking for advice please. Does anyone know what type of figures Moorcroft are likely to look at - have a £3300 overdraft debt (NatWest) which is now about half the original debt but I’ve not made any repayments for approx 18 months.
The other two (link and Cabot) are each for c£3k, again no repayments for c18 months. Both are unenforceable however (I know some people might think I’m stupid!), I’d really like to settle them so I’m no longer getting letters chasing them. Link keep saying they’ll accept c£1800 and Cabot are similar, I’ve offered both 10% and told them I’m not prepared to make even token payments if they won’t accept. If they refuse to accept is there anything I can do to stop them chasing me for an unenforceable debt? Any info welcomed, thanks in advance.

Debtress

Because I am very stressed at the moment, can someone please confirm what I do now. Here is an extract of a letter from Cabot after I requested a CCA last month.

Unfortunately we currently do not have the relevant information on file so we will be requesting a copy of the credit agreement and terms and conditions from your original lender, as well as a statement of your account. This may take some time, but we will write to you within the next 12 days with an update.

Thank you for making payments on your account, we ask that you continue these payments while we manage your request.

This account may be on your credit file and could affect your ability to get credit, apply for a mortgage or a phone contract. By making your regular payments it will be updated to show the balance going down which can have a positive effect on your credit file.

ALL my defaulted accounts are now no longer on my credit file. I think my question is, even though they don't have it yet, can I stop payment to them until they do find it? Is there a template letter I should send?

Suseka97

Debtress wrote: »

..............ALL my defaulted accounts are now no longer on my credit file. I think my question is, even though they don't have it yet, can I stop payment to them until they do find it? Is there a template letter I should send?

This is a standard computer generated letter, or just a template someone adds your name and address to when receiving a CCA request. When debts get sold on, its quite common that its a job lot transfer of names, addresses, account numbers and balances - with no associated paperwork. So that's good news, because whilst they try to dig up the paperwork they cannot take any enforcement action against you. So just sit back and wait and simply stop your payments, no need to follow up with another letter - they know the drill.

Suseka97

RW01 wrote: »

...................I’d really like to settle them so I’m no longer getting letters chasing them. Link keep saying they’ll accept c£1800 and Cabot are similar, I’ve offered both 10% and told them I’m not prepared to make even token payments if they won’t accept. If they refuse to accept is there anything I can do to stop them chasing me for an unenforceable debt? Any info welcomed, thanks in advance.

You can't stop them chasing you. The only thing a UE debt means is that its not enforceable through the courts - but you still owe the monies outstanding. So you either settle, or accept that they will continue to contact you and just get used to that routine. It seems, from what you say, that they are starting to negotiate settlements - so just stick to your offer and if they say no, leave it for 6 months or so and make the same offer. It's a bit of a 'cat and mouse' game now.

CanWeClearIt

Hello. This is my first post. I’ll build out my profile later and have a good look around but wanted to get this up for comment.

This seems a good place for me to start - you all appear helpful and non judgemental.

We’re (wife and I) are facing up to the situation we are in in terms of debt. We’ve ran up around £70k in credit cards and loans. I’m a mix of embarrassment and annoyance at this - annoyed at how we’ve got here but to be honest also annoyed at these institutes who kept throwing it to us.

We both work full time and have a daughter who’s 10. She doesn’t work yet but I’m thinking chimney sweep soon.

We earn what I consider to be a decent combined salary - we just can’t get the elbow room we need to make a dent in the debt. Seems not uncommon situation.

We tried to consolidate everything into a re-mortgage but got declined.

We spoke with the CAB today and went through things. They discounted IVA and bankruptcy and passed us over to an organisation called debt compare - can’t post the link as a newbie.

Stepchange said they couldn’t help as we can make the payments to manage the debt.

Debt compare seemed slick on the phone. Nice lady - but I’m sceptical of most of these organisations and how they could be using our situation to make money.

They took details of our expenditure and income and suggested we could have this cleared by them in around 5 years at a payment of £1500 a month.

Process was that we sign up and they deal with the credit card companies. Talk to them on our behalf and agree on the terms. All for £40 a month management fee.

This was pitched as a DMP.

Does anyone have any experience of this company or suggest one similar?

I’m not sure how they come up with that 4.5 year figure - that must be based on all the lenders saying “ok fine - no more interest for you” ..

I just don’t know what the right approach is. I know carrying on how we are isn’t it.. but I want to put myself in the hands of a shark.