DMP mutual support thread part 13 !!

tinybull

Good day, Its now about 4 months since I have sent out holding letters to all our creditors. I have recently sent out our statement of affairs and offers to each creditor. Even though I have told them to communicate in writing, a few still keeps on calling or sending text messages asking me to call them back...
One though, M&S written back regarding my offer and asked me to call back so that they can agree a "affordable" solution for me. Shall I just write back and tell them that my offer is the only offer on the table since my position has not / will not changed and that they should send my details so that I can set up a standing order?

I kind off feel that by self managing this, the creditors don't go into DMP mode and most of them still want to speak to me to discuss solutions...
One final question, all the accounts are still "live", still incurring interest and default charges. I am hoping for the accounts to default before 6 months so I can start my payments. Will I receive new payment details or will I be using the account details set up originally?

sourcrates

tinybull said:

I kind off feel that by self managing this, the creditors don't go into DMP mode and most of them still want to speak to me to discuss solutions...
One final question, all the accounts are still "live", still incurring interest and default charges. I am hoping for the accounts to default before 6 months so I can start my payments. Will I receive new payment details or will I be using the account details set up originally?

Debt management can be a minefield, creditor's not stopping interest/charges etc, its sometimes difficult to know what to do for the best.
Thankfully these problems will be addressed when the new, regulated Debt Management plan is launched, later this year, interest/charges will stop automatically, and you will be protected from further action under the new scheme.

This is still some months off, and may yet be delayed due to covid-19, so in the meantime what to do ?

Non payment usually triggers the default, and ideally that is what you want, as everything is frozen, and the 6 year clock start`s counting down to the default coming off your file, your focus should shift from the original creditor, to whoever may buy or manage these debts in say 6-8 months time, banks rarely keep bad debts on their books for very long anyway, usually you start paying them, then a few months down the line, they sell the debt anyway.

You should tailor your approach so that they sell these accounts on quicker, then when you do start paying, all your money is going to reduce the debt, rather than to provide profit for them, obviously keep your eye on the post, but that should not be a worry, as legal action is rarely taken at this stage, debts are nearly always sold, or assigned to a DCA for collection instead.

That would be my approach, it currently solves the issues surrounding interest etc, the new owners will write to you in due course.

Summer12

Letter before claim received from Reston’s solicitors acting on behalf of Debt Managers service who bought debt from Next. Is there any point sending a SAR to Next? Perhaps to see amount it was sold for? Can you tick boxes C & D? Will request CCA (in section 4) but should I also put in CCA request direct to Debt Managers services? Many thanks

sourcrates

Summer12 said:

Letter before claim received from Reston’s solicitors acting on behalf of Debt Managers service who bought debt from Next. Is there any point sending a SAR to Next? Perhaps to see amount it was sold for? Can you tick boxes C & D? Will request CCA (in section 4) but should I also put in CCA request direct to Debt Managers services? Many thanks

Yes you can do both, it won`t hurt, are they aware of your DMP ?

You won`t find out how much the account was sold for as this is commercially sensitive information which is never divulged, and is actually, not any of your business, its theirs, so would not show in a SAR anyway.

Pelerroja

Hi everyone - hope you’re all well
We’re due to make our first DMP payment on 1 March so things are finally underway. I wondered if anyone had an experience with energy suppliers as creditors though? One of ours is SSE (about £800 - we were told bills included in rent but then turned out they weren’t...long story!) 

SC contacted me this week to say that they have refused the offered payment, which is odd since it’s the same as I was paying them beforehand. The only thing I can think of is that I was paying the offered amount plus £100 a month for current usage and maybe that’s confused matters. My main question though is if they start “action” against us does this mean we’re at risk of being cut off? Or having a pay-as-you-go meter forcibly installed? (We’re a rental property and our landlord would NOT be happy with that!)

thanks in advance! 

sourcrates

To avoid that happening, maybe give thought to the fact that utility bills are priority debts, and should be paid over and above any unsecured credit debts, which are non priority.

I would have thought Stepchange would have explained that to you.
Pay off the electric bill first at the expense of your other credit debts.

Pelerroja

sourcrates said:

To avoid that happening, maybe give thought to the fact that utility bills are priority debts, and should be paid over and above any unsecured credit debts, which are non priority.

I would have thought Stepchange would have explained that to you.
Pay off the electric bill first at the expense of your other credit debts.

They did in all the pre-amble which is why I was surprised at the “they’ve refused but don’t worry” email. Perhaps just an automated one? I will give them a call on Monday Hoping this doesn’t mean I have to pull out and go SM? I have depression and anxiety and I don’t think I’m ready to go it alone just yet!

sourcrates

Pelerroja said:

sourcrates said:

To avoid that happening, maybe give thought to the fact that utility bills are priority debts, and should be paid over and above any unsecured credit debts, which are non priority.

I would have thought Stepchange would have explained that to you.
Pay off the electric bill first at the expense of your other credit debts.

They did in all the pre-amble which is why I was surprised at the “they’ve refused but don’t worry” email. Perhaps just an automated one? I will give them a call on Monday Hoping this doesn’t mean I have to pull out and go SM? I have depression and anxiety and I don’t think I’m ready to go it alone just yet!

To be fair, self management is really easy, these 3rd party companies may big up what they do for you, especially the ones who charge you for a DMP, but in reality, and this applies to the debt charities as well, all they do is send one letter to your creditors showing your income/expenditure, and your proposed offer of payment.

They may also answer questions from you, and/or your creditors, and then arrange to distribute your payments every month, that is basically it, its not rocket science, I can`t understand why it alarms so many people, anyone can do this from the comfort of their own computer, its never face to face, and always remains autonomous.

CrinklyB82

Hi. I have a question about loan interest applied. I am on a DMP and not too long left (circa 12 months). All my creditors froze interest and I have noticed on the 6 monthly statements from Halifax there were entries for interest charged alongside the standard monthly payment due. This interest reduced mi the by month and stopped being added late 2019. I raised a formal complaint with Halifax as it looked like interest wasn't frozen for that debt. Halifax rang and discussed with me advising that no additional interest was bei f charged after they checked.  They advised that the loan interest for my loan was charged up front when I took.the loan out. My question is   is it fair to expect them to have reduced that interest charge for the period my DMP was in place? Should I take this to FOS?

sourcrates

CrinklyB82 said:

Hi. I have a question about loan interest applied. I am on a DMP and not too long left (circa 12 months). All my creditors froze interest and I have noticed on the 6 monthly statements from Halifax there were entries for interest charged alongside the standard monthly payment due. This interest reduced mi the by month and stopped being added late 2019. I raised a formal complaint with Halifax as it looked like interest wasn't frozen for that debt. Halifax rang and discussed with me advising that no additional interest was been charged after they checked.  They advised that the loan interest for my loan was charged up front when I took the loan out. My question is   is it fair to expect them to have reduced that interest charge for the period my DMP was in place? Should I take this to FOS?

You see that`s the thing with unregulated DMP agreements, you are technically still bound by the original credit agreement you signed, and so is the lender.

Any freezing of interest is entirely at the creditors discretion they have no obligation to do so at all !!
All the FCA lending code says is debtors must be treated fairly, it all depends whose definition of fairness you subscribe too.