DMP mutual support thread part 13 !!

lisamarie85

Something I’ve just thought of that’s set me off worrying and I cannot contact Payplan as they’re not open today- 

I’m named on my mother in laws business account. I have no power, no say, I don’t sign on the account but I am named on it. Something to do with being able to make payments to me in the future, as she’s setting up a limited company of which I will be given a few shares. 

If I set up the DMP, will it affect that account? I read that if you owe a company money they can take it from any other active account you hold with them without your consent. The last thing I want is the MIL getting money taken from her account, she doesn’t even know about my money issues. 

sourcrates

lisamarie85 said:

Something I’ve just thought of that’s set me off worrying and I cannot contact Payplan as they’re not open today- 

I’m named on my mother in laws business account. I have no power, no say, I don’t sign on the account but I am named on it. Something to do with being able to make payments to me in the future, as she’s setting up a limited company of which I will be given a few shares. 

If I set up the DMP, will it affect that account? I read that if you owe a company money they can take it from any other active account you hold with them without your consent. The last thing I want is the MIL getting money taken from her account, she doesn’t even know about my money issues. 

Your refering to a banks right to "set off" money owed by you from another account in your name, within the same banking group.

Relax, its not going to happen, the account must be in your name only, they cannot take money from a joint account, also there are strict rules about what, and how much can be taken, in reality, it rarely happens, and won`t happen in your case.

If in doubt, use Google.

Stigzee

Hi all I am a newbie to the forum and you all seem really kind and helpful. So I bit the bullet 2.5 years ago where basically we kept accumulating debt it got to £23k because we were using credit cards to manage short term issues and debt consolidation loans just kept adding to problems. 

Funny thing was it snowballed when I missed one payment because I timed my DD wrong by mistake. I lost 0% interest offer and it became unmanageable. 

I have now paid 350 a month and so far paid over 7k off. I only missed one payment but the DMP needed everything unsecured to be wrapped up even though I was meeting debts and repayments for everything else. So there are 6 creditors in place. But all of my creditors are putting defaults on my accounts even those who have taken over the debt despite not receiving letters from all of them regarding defaults etc. 

Last year we had a surprise baby before Covid pandemic which is lovey but has made space an issue and we were looking at and 100 at most in mortgage payments to see if we could move.  But the mortgage companies are auto rejecting because of defaults. 

I don’t know whether I have grounds to dispute anything I have had to hold back one payment since setting up DMP as we had emergency vet bills and a massive car bill which really hit us hard. 

I also have about £4K left from selling my property and have worked out I could possibly pay the DMP in two years but we are stuck at the moment. 

Happy to provide answers to follow up questions 

But my main question is as my credit score is being decimated by the defaults is this something that is normal?  Or should I appeal them I honestly do not know what to do. 

Any advice will be appreciated 

Thanks in advance

bluebell_on_track

Pelerroja said:

Hi folks - wondered if there are any other new starters on here with SC? Sent them my paper work last week and am wondering how long it will take them to set things up, especially given the pandemic. Thanks! 

I set mine up late November. Took about 2 weeks after they’d received my documents and now I’ve made 2 payments. :-) pretty quick really.

Suseka97

Stigzee said:

Hi all I am a newbie to the forum and you all seem really kind and helpful. So I bit the bullet 2.5 years ago where basically we kept accumulating debt it got to £23k because we were using credit cards to manage short term issues and debt consolidation loans just kept adding to problems. 

Funny thing was it snowballed when I missed one payment because I timed my DD wrong by mistake. I lost 0% interest offer and it became unmanageable. 

I have now paid 350 a month and so far paid over 7k off. I only missed one payment but the DMP needed everything unsecured to be wrapped up even though I was meeting debts and repayments for everything else. So there are 6 creditors in place. But all of my creditors are putting defaults on my accounts even those who have taken over the debt despite not receiving letters from all of them regarding defaults etc. 

Last year we had a surprise baby before Covid pandemic which is lovey but has made space an issue and we were looking at and 100 at most in mortgage payments to see if we could move.  But the mortgage companies are auto rejecting because of defaults. 

I don’t know whether I have grounds to dispute anything I have had to hold back one payment since setting up DMP as we had emergency vet bills and a massive car bill which really hit us hard. 

I also have about £4K left from selling my property and have worked out I could possibly pay the DMP in two years but we are stuck at the moment. 

Happy to provide answers to follow up questions 

But my main question is as my credit score is being decimated by the defaults is this something that is normal?  Or should I appeal them I honestly do not know what to do. 

Any advice will be appreciated 

Thanks in advance

Once you fail to make your contractual payments, after a period of time it is fairly routine for those accounts to be defaulted and eventually sold off to debt collectors.   From a debt perspective - a default is what you want because it is at that point creditors can no longer apply interest and charges.  Also a defaulted account will drop off your credit file 6 years from the date it was applied, regardless of whether it has been paid off or not.

With regards to getting a mortgage - it's best not to go direct to the high street lenders and speak to a broker who has experience helping people with an adverse credit history.   If you pop over to the Mortgages and Endowments section you could pop a thread up and there are mortgage advisers who regularly post and might be able to help.

JustWannaBeDebtFree

Hi - I'm new - I entered into my DMP (with PayPlan) in Nov/Dec 2020 and my first payment went out on Jan 1st.
I just received my first default notice, from Barclaycard, which I know you all say is a good thing, but it feels mighty scary!!  I've never missed payments before but had run out of options and energy trying to move the debt from 0% to 0% and the interest rates were making it unable to make my income match my outgoings.

sourcrates

JustWannaBeDebtFree said:

Hi - I'm new - I entered into my DMP (with PayPlan) in Nov/Dec 2020 and my first payment went out on Jan 1st.
I just received my first default notice, from Barclaycard, which I know you all say is a good thing, but it feels mighty scary!!  I've never missed payments before but had run out of options and energy trying to move the debt from 0% to 0% and the interest rates were making it unable to make my income match my outgoings.

Hi,

Don`t worry about it, it is a legal requirement that a default notice be sent, when you are behind with your contractural repayments.

It does not take your DMP into account.

Its simply a document the creditor must send you, it gives you the chance to rectify the breach, usually within 14 days, and if you cannot do that, then the agreement is terminated.

It also goes on to list the possible repercussions of non payment, these are the things the creditor "could do" not "will do".

Yours have agreed to your DMP plan, so it is for information only, nothing more.

Don`t be suprised if debts are passed to various collectors, or get sold on during your time in debt mangement, remember, any new owner will not be aware of your DMP, so you will either have to let payplan update them, or write to them yourself.

crm23

Hi,
I’m just having a bit of a moment and need some reassurance/advice. We entered into our DMP in September last year and have been paying fine ever since. It was incredibly daunting as with many other people, We hadn’t actually missed any payments but just got to a point of amassing huge debt robbing Peter to pay Paul. Our current circumstances mean the plan is set to run for 20 odd years (which is frightening in itself!) but we are hoping to bring this timescale down massively soon. We are touch wood in the worst financial position will be in for quite some time so I just keep telling myself we need to just go with the flow right now.. basically within the next 4 years we will no longer be paying almost £500 a month childcare fees, my student loan of £190 a month will have been paid off in full, and my car on HP will also have been paid off which is a further £200 a month, so there is potential to have an extra almost £900 a month at that point. However, the thing that is scaring me most is that our current mortgage deal with Halifax is up in 3.5 years.. probably just before the majority of these will have been paid up (bar the childcare which will be earlier) I’m already preparing myself that it’s massively unlikely I will get a better deal and that I will be moved onto the SV rate with Halifax at that point. Am I right to presume that? Also, i think most of our accounts have defaulted now so in 6 years they won’t be showing, but will I still come up with issues finding a better deal after that point given my DMP will still be running? I know I probably just need to relax and let the next few years run its course as lots can change, but I can’t shake the worry of the mortgage on the house off (that is all up to date with no payment issues btw). 

Suseka97

@crm23 - well done for taking control of your spiralling debt problem, that's the biggest hurdle.  You are right in that you now need to just go with the flow and let the DMP bed in, once it does you'll pretty much forget about it and look forward to a bright(er) future.  

As for the mortgage - when it comes to the end of your current fixed term, you will most likely be able to do a product switch and choose whatever would be the most favourable option for you.  You don't have to drop to their SVR.  A product switch is done online and only takes a matter of minutes.  What you cannot (easily) do is switch to a new lender, or try to change the terms of the mortgage (such as borrow more, or reduce/extend the years) with your current lender - that would result in a hard search and would likely be declined.   I'm with Nationwide and a couple of years into my DMP I did an online switch with no issues whatsoever.

You are right that defaults will disappear at the 6 year point and so will open up the market to you - but, if you have/or had debts with a particular lender it won't matter that the default for that has gone off your file.  They have long memories and will hold records of the adverse credit histories of past customers.  Now, even that won't necessarily mean you'd get an automatic decline - all of the high street lenders have their own lending criterion,  for example some don't mind defaults as long as the debt has been settled and is not less than 3 years old etc. 

But all of this is a way down the line for you, so for now put your worries aside and let things take their course.

natlie

Hi 
Help with Moorcroft please

My PayPal debt recently moved to Moorcroft my PayPal states I owe £4186.50 and the Moorcroft account states I owe £4503.10?

There are a lot of random payments in the accounts

Paypal £152.54 3 Dec and £152.54 13th Jan

Moorcroft £152.54 on the 16 Dec and £152.54 on the 12th Jan 

Moorcroft were no help at all on the chat 
Thanks 
Nat