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DMP mutual support thread part 13 !!

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  • Suseka97
    Suseka97 Posts: 1,571 Forumite
    Tenth Anniversary 1,000 Posts Name Dropper
    alxofn1 said:
    Hello everyone. A quick question from me. 

    I'm in the first month of my DMP, having made my first payment to StepChange earlier this month. I'm in a bit of a panic however. One of my creditors on my DMP is PayPal Credit, so not a credit card lender per se like the rest of my creditors. Anyway, in my ignorance I noticed that two recurring payments (total value less than 10.00) that I have for usage of a cloud drop box service were charged to my PayPal Credit balance. This means that I have effectively utilised the credit facility even though I'm on a DMP. From what I can gather my other creditors e.g. BarclayCard have closed my card so it cannot be used but the PayPal Credit facility still seems to be usable. It was not my intention to use it for these costs, as these should have come out of my current account but somehow I've overlooked this. 

    The bottom line question I have is : will my DMP be in serious jeopardy for this (inadvertent) use of a credit facility that is listed on my DMP? 

    Thanks all.
    No, it won't.  It takes a little while for these things to work through and a DMP to settle down.  You need to amend whatever subscription/recurring payment arrangement you have going there so it doesn't keep happening.  Although I would have thought that if PP credit is part of the DMP they would reject any payment requests to that account.  Just update SC if that has changed the account/debt balance - that's all.
  • Suseka97 said:
    jojay75 said:
    It looks like I may have enough to make a full and final settlement on my debt. It’s currently £15k. I’m with stepchange. What’s the best way to go about it? What percentage to offer? I’m not 100% sure on the exact amount yet, as it’s from my dad’s estate. Most of it is going to mum/put in trust for us. I would also like to keep a bit back as emergency fund to avoid future debt. Would it be better to wait, save and pay debt off in full for my credit file, or does it matter? 
    There are a couple of factors to consider here.  Who holds the debt (original creditor or DCA) and how old is the debt?  I ask because if the debt has been sold on and/or is pretty old, then you are more likely to get favourable discounts.  But, the best way to go about that is to take control of your DMP and stop making payments whilst you send off CCA requests.  Hopefully if your debts are with a DCA they are not going to be able to provide the necessary documentation that proves a debt is enforceable.  The reason this is useful is because then, you stop paying for a while and then start the F&F ball rolling and if they return as unenforceable you have more chance of getting a discount.

    If you think about it logically - why would a OC or DCA want to consider accepting discounts if you are making regular payments.  Especially a DCA who will have bought the debt cheaply and the more you pay the greater their profits.  Alternatively, if you are keen to move ahead you can always test the water and make them an offer.  Start low 10% or 20% of the outstanding balance/s and see what happens.  But again, to do this you are best to self-manage the DMP from now on.

    As for your credit file, that's pretty much trashed already - yes, so really it makes no difference whether you pay it off in full or not.  Again, depends on how old and whether the account/s are defaulted as to how long the debt is going to impact on your credit worthiness into the future.
    Thanks for the advice. As a first step I’ve contacted Stepchange to see if they can make a full and final settlement offer. If they can’t will look into what you’ve said. I’d rather not stop payments if I can get away with it, but totally see what you’re saying about the creditors. In my favour it will mean they get payment 13 years early! 
  • alxofn1
    alxofn1 Posts: 18 Forumite
    10 Posts
    Hello all,

    Not sure if anyone has had any experience with PayPal Credit? They're proving to be one of the trickier creditors to handle. StepChange advise me that they sent a cheque - which PayPal advised is their preferred method of payment - on the 4th December (and quoted me the cheque reference number) however the balance is still not updating on my PayPal balance and I have now been e-mailed by PayPal to advise I am late paying and have incurred a £12 late payment fee. I have advised StepChange but with the holidays coming up a reply may be quite a while. PayPal have very limited phone support so I have given up being on hold for today.

    I wondered if anyone can advise if late payment fees like the above might be revoked? and how things stand with regards to payments going missing if they are in the form of a cheque? 

    Thanks all.
  • lulabelle01
    lulabelle01 Posts: 49 Forumite
    Sixth Anniversary 10 Posts
    edited 23 December 2020 at 12:04PM
    Its been quite a while since I've posted on here. I'm self managing a dmp and its been going fine for the year and half I've been doing it. Today I've been sent into a slight panic by noticing a search on my credit file by Intrum its shown as a debt collection search so I'm panicking quite a lot about this. Has anyone had any experience with this? Can I assume maybe one of the debt collection agencies has passed the debt onto this company or is it likely to be something else?  Can anyone help or at least calm my nerves this is the last thing I need right before Christmas 😩
  • sourcrates
    sourcrates Posts: 31,487 Ambassador
    Part of the Furniture 10,000 Posts I've been Money Tipped! Name Dropper
    Its been quite a while since I've posted on here. I'm self managing a dmp and its been going fine for the year and half I've been doing it. Today I've been sent into a slight panic by noticing a search on my credit file by Intrum its shown as a debt collection search so I'm panicking quite a lot about this. Has anyone had any experience with this? Can I assume maybe one of the debt collection agencies has passed the debt onto this company or is it likely to be something else?  Can anyone help or at least calm my nerves this is the last thing I need right before Christmas 😩

    Hi,
    Debts are assigned, sold, or managed by various debt collection companies, it can be like a conveyor belt the number of times debts are moved between companies at times, most likely just a trace, certainly nothing to panic about, why would you ?
    Makes no difference to you who owns your debts or who you pay now does it.
    If the debt has changed hands, no doubt they will write to you, until then, carry on.

    I’m a Forum Ambassador and I support the Forum Team on the Debt free wannabe, Credit file and ratings, and Bankruptcy and living with it boards. If you need any help on these boards, do let me know. Please note that Ambassadors are not moderators. Any posts you spot in breach of the Forum Rules should be reported via the report button, or by emailing forumteam@moneysavingexpert.com. All views are my own and not the official line of MoneySavingExpert.For free non-judgemental debt advice, contact either Stepchange, National Debtline, or CitizensAdviceBureaux.Link to SOA Calculator- https://www.stoozing.com/soa.php The "provit letter" is here-https://forums.moneysavingexpert.com/discussion/2607247/letter-when-you-know-nothing-about-about-the-debt-aka-prove-it-letter
  • alxofn1
    alxofn1 Posts: 18 Forumite
    10 Posts
    Hello all.
    Hoping to get any advice or input. 
    PayPal are one of my creditors and StepChange as part of my DMP advised me they sent them a cheque - as was requested by PayPal - to make my monthly payment. However the cheque doesn't appear to have registered on the system, and so PayPal have now added a late penalty fee to my account balance - they've just called me and said the same. I'm not quite sure what to do - I would imagine the advice would be to not pay them anything further (my next DMP payment goes out in a few days). I e-mailed SC and am waiting for their reply, but given the holidays it might be a while. 

    Any thoughts?

    Thanks!
  • Hello,
    It's been awhile since I posted because I had everything under control but then this happened!....
    Drydens Ltd/Arrow global sent a county court claim to me dated 14th December.  The 'debt' I have was originally with Sainsburys who passed it on to Moorcroft for collection.  I sent a CCA request to Moorcroft in Jan 2018, to which they didn't reply and in 2019 passed it on to Arrow/Capquest. I ignored all letters and made no more token payments since I sent the CCA request back in 2018. The last letter I had from them was in Jan 2020 which was the letter telling me the debt had now been assigned to them.
    Then I get the County court claim out of the blue!  but still no CCA agreement provided!
    I am going to submit an acknowledgement of service to give me time to defend it but can someone please tell me if there is a particular wording I should use in the defence please??
    Also what does "I intend to contest jurisdiction" mean please?
    Many thanks as always. 
  • Hi all
    just a quick question.... 3 of my accounts defaulted and when I received the default notice I got a letter pretty much straight away to say DCA had taken over the account which was fine and now I have payment plan set up for these. 1 of the accounts I’m still waiting to default (capital 0ne) has sent be a default letter today should I now contact them with my offer of payment? The others seemed to go straight to DCA so felt simpler just wondering if now I have this default should I contact capital one directly with my offer of payment? TIA
    Current Debt- Jan 2021 - £27500
  • jwil
    jwil Posts: 21,824 Forumite
    Part of the Furniture 10,000 Posts Name Dropper Photogenic
    Hi all
    just a quick question.... 3 of my accounts defaulted and when I received the default notice I got a letter pretty much straight away to say DCA had taken over the account which was fine and now I have payment plan set up for these. 1 of the accounts I’m still waiting to default (capital 0ne) has sent be a default letter today should I now contact them with my offer of payment? The others seemed to go straight to DCA so felt simpler just wondering if now I have this default should I contact capital one directly with my offer of payment? TIA
    My Cap 1 card defaulted 5 years ago and they still haven't sold it on or passed it to anyone else, so I'd make the offer to them.
    "If you can dream it, you can do it". Walt Disney
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