DMP mutual support thread part 13 !!

Norfolk_Jim

Having started on my DMP with haste (strike while the iron is hot so to speak) I've realized the importance of the emergency fund with a few unexpected bills over Christmas.
I have said previously that I had some money coming to me in the New Year, around £3-4000 that, I think it might have been Fatbelly, suggested would make a good Emergency Fund and basis for future F&F offers when that becomes an option in the future.
However - recent communications from Stepchange have indicated that they would expect (I've not told them about my New Year funds) any extra money I come into to be given over to be distributed to my creditors and not doing so would constitute not treating my creditors fairly. I, on the other hand think I need an Emergency Fund.
This will also be an issue for me in the not that far off future when my 2 pensions begin to pay and I have the tax free lump sums from them (thats around 5 years) and I'm hoping that with payments over that time the balances will have reduced somewhat and F&F payments will be a realistic prospect.
This is a long-winded way of asking - Can Stepchange or my Creditors see when I get this money if I put it into a savings account thats not with any of them? Do savings show up on credit reports or any other monitoring systems?
Has anyone else had this experience or found the same approach from Stepchange?

[Deleted User]

needtodothis2020 wrote: »

Thanks for the encouragement, it gives me hop that I can do this
Sam

You can and will do it, as so many others of us have:j. I signed up with SC and thanks to them and the wonderful posters on this thread I'm now happily debt-free after what seems like a lifetime of anxiety and robbing Peter to pay Paul. Not only that but I eventually gained the confidence to go it alone and do a self-managed DMP. I couldn't have managed the first 4 years without SC to hold my hand though but when I was in a position later on to offer F&Fs to finally clear the debts once and for all I decided going self-managed offered me the necessarily flexibility.


If there's ever anything you'd like to know about anything DMP related please just ask. Someone on here will have experienced something similar or be having the same problem.

Good Luck:beer:

needtodothis2020

Morning,
Just after some advice about my next steps please.
I have received my pack from SC but I am still a bit confused about my next step.
I know I have to print, sign the agreement but do I need to gather all my account numbers and send that to them as well ? I cant find this information in the pack
Now I have my DC number I will write to all my creditors on Monday explaining the situation
Is there anything else I need to do between now and then?
Many Thanks
Sam

Willing2Learn

Hi scot23 and welcome to the forum

scot23 wrote: »

I’ve been in contact with Step Change this week and going to get ball rolling with a DAS/DPP (as I’m in scotland). Have printed out their letter to send to my creditors. Do I also send this to bank with my current account and overdraft? My letter says that I’ve recieved advice from SC, I am in financial difficulties and that SC will be in touch. Is that enough? Should I ask for a 30 days ‘breathing space’ for my account or is this automatically assumed?

Just so you know, I have no experience of a DAS/DPP (as I'm in England), but my understanding is that a DAS is the equivalent of a DMP in Scotland.

Since you have an overdraft, then your bank would be considered a creditor, and you should send them the StepChange letter you have printed out. Most creditors are 'clued up' and will automatically freeze interest for 30 days.

Incidentally, I recommend you open up a new current account with a bank that you do NOT have any debt with. You should use that to have your income paid into. It will protect and ring-fence your income.

scot23 wrote: »

Slightly worried about 1 of my loans (it’s with creation) who states : During the currency of this agreement you should not suffer any bankruptcy petition to be presented against you, or execution to be levied against any of your assets, nor shall you enter into any arrangement or composition with your creditors without our express consent.
Also says the balance of the total amount payable shall be immediately due and payable after expiry of proper notice if: you cancel direct debit or fail to pay instalment.

This sounds like their standard t&cs. And I personally would not worry about it.


I would like to add that this is a thread for DMPs. I recommend you start a new thread titled DAS/DPP questions. That way you will get MSE members in Scotland replying to you, with their experiences.

Good luck!!


Edit: I see you have posted your question in the StepChange thread too. Just so you know, you probably won't get a reply until Monday at the earliest. I recommend you 'phone them instead for support and answers...

Willing2Learn

Hi Jim

Norfolk_Jim wrote: »

Having started on my DMP with haste (strike while the iron is hot so to speak) I've realized the importance of the emergency fund with a few unexpected bills over Christmas.
I have said previously that I had some money coming to me in the New Year, around £3-4000 that, I think it might have been Fatbelly, suggested would make a good Emergency Fund and basis for future F&F offers when that becomes an option in the future.
However - recent communications from Stepchange have indicated that they would expect (I've not told them about my New Year funds) any extra money I come into to be given over to be distributed to my creditors and not doing so would constitute not treating my creditors fairly. I, on the other hand think I need an Emergency Fund.
This will also be an issue for me in the not that far off future when my 2 pensions begin to pay and I have the tax free lump sums from them (thats around 5 years) and I'm hoping that with payments over that time the balances will have reduced somewhat and F&F payments will be a realistic prospect.
This is a long-winded way of asking - Can Stepchange or my Creditors see when I get this money if I put it into a savings account thats not with any of them? Do savings show up on credit reports or any other monitoring systems?
Has anyone else had this experience or found the same approach from Stepchange?

There is no need to tell StepChange about the lumpsum you are due to receive. Just deposit the money in your bank account and things will be fine. You need to have an Emergency Fund as it is essential.

And that is a good idea to let the lumpsums build up so that you will be in a good position to make F&F offers further on down the line. Before you make the F&F offers, it is always a good idea to submit a CCA request for each eligible account.
Debts - why, how & when to ask for the CCA agreement

And by the way, savings accounts are not recorded on your credit files.

dibdabbers

Hi, can I have a little more advise please, Ive cancelled my direct debits but I am waiting for the accounts to be defaulted before I enter a DMP. Should I send a letter in the mean time to them or pay a small token payment?

sourcrates

dibdabbers wrote: »

Hi, can I have a little more advise please, Ive cancelled my direct debits but I am waiting for the accounts to be defaulted before I enter a DMP. Should I send a letter in the mean time to them or pay a small token payment?

Only one way to get defaults, and that’s to ignore your debts completely for 6 months in the hope they default you.
You can write and ask them to default you quicker, sometimes it works, sometimes not.

dibdabbers

Thanks Sourcrates, I had a bit of a wobble yesterday, is there any possibility if I don't speak to them that they will take it straight to a CCJ or is this uncommon?

sourcrates

dibdabbers wrote: »

Thanks Sourcrates, I had a bit of a wobble yesterday, is there any possibility if I don't speak to them that they will take it straight to a CCJ or is this uncommon?

You can`t take anything "straight to a CCJ".


Original creditors virtually never take legal action, first it goes to internal collections, after a few months, it may be passed to an external debt collector to chase, 8/9 months later the debt may be sold, then the new debt purchasor will run through their standard array of template letters with you, that takes a year or so, if you continue to ignore, they either ignore you and consentrate on the ones who do respond, or they may decide to take legal action against you, depends on what the liklihood of getting any money out of you may be.

They would then send a letter before action, giving you 30 days to respond, if the matter was not solved at this point, a month, maybe 6, later, a claim form would be issued, you then have 28 days to respond to that, then the case would take around 4/5 months to get to court, if found against you, you have a further 30 days to pay the judgement without it appearing on your credit file.

So the debt collection process can take a very long time, and the court process can too, those who think missing a couple of payments automatically means court are very mis-guided, of course some creditors act quicker than others, but as a rule of thumb, this is roughly the time scale your looking at.

purplepaws

needtodothis2020 wrote: »

Morning,
Just after some advice about my next steps please.
I have received my pack from SC but I am still a bit confused about my next step.
I know I have to print, sign the agreement but do I need to gather all my account numbers and send that to them as well ? I cant find this information in the pack
Now I have my DC number I will write to all my creditors on Monday explaining the situation
Is there anything else I need to do between now and then?
Many Thanks
Sam

Good morning, hope you had a better weekend?
I don't know if you have sorted this out already but I expect StepChange will need a list of all the debts and lenders, including account or card numbers, so that they can sort out a repayment plan for each one. The DMP will distribute your 'available funds' (monthly payment to StepChange)) and distribute it between each lender as a percentage of debt owed (so if you owe £1000 to Barclaycard and £500 to M&S, and your monthly payment is £100 to SC, Barclaycard will receive the larger share of your payment each month (£70ish) and M&S £30)) Obviously, if there's multiple lenders, then the monthly payment gets split into more payments - but SC will do the Maths!!
I expect the form that you need to sign and return, is permission for SC to act on your behalf when liaising with the lenders, so they will be unable to do anything until they have your authority. If I were you, I wouldn't bother with sending holding letters to your lenders now, if you have already got this far down the line with SC - let them take over once you grant them authority.