DMP mutual support thread part 13 !!

Penguin_

sourcrates said:

Penguin_ said:

OK so an account which was in default has now moved to 'in dispute' with Lowell according to Clearscore. This was definitely in default when I originally set my DMP up with Stepchange & now Lowell are saying unless I pay the £xxx a month they will default me. This amount is 3 times higher than the amount I was paying them through Stepchange. 

Is it possible for them to re-default me? 

Have you checked the information on the 3 main CRA `s ?

Accounts only default once, you only pay what is affordable, according to your budget, Lowell know this, everyone knows this, ignore their bluster, check the accounts status and if a complaint is required, then send one.

I have checked Experian & clearscore, both show in dispute but I know it was in default when I was with SC. I cannot afford to have this default now as everything was/is due to drop off my credit file in 3 years which will be roughly the time my partner & I will be looking to start buying a house.

nbamaster

Hi everyone,

I've spent all day reading through this thread, trying to get as much information as possible. Still - pardon me if I'm asking questions that have been asked before.

I've got 29k of unsecured debt (credit cards and personal loans) and can no longer afford minimum payments. I believe DMP is the way to go for me at this point...

My plan of action is:

1. Open Nationwide flex account and update my employer with new bank details.
2. Cancel all DDs and standing orders.
3. Build EF, ideally for 6 months
4. Start DMP through Step Change (might go SM in the future, but feel like need their help at the beginning) 


Now a few questions please:

1. I get paid on the 25th of each month, so there is not enough time to change my bank account this month. Can I cancel all DDs now apart from 2 loans and overdraft I have got with my own bank? (Lloyds) and when my bank details are updated, will cancel Lloyds debts and stop using Lloyds account. Or is it better to wait until employer updates my details? BTW - I should receive new card in 7-10 days so I can't do anything now anyway, right? 

2. Should I inform creditors I am having financial difficulties and I'm currently looking for solution with Step Change and also ask them to contact me only via Royal Mail?
Or just ignore everything for 6 months? 
I should mention that if there's anything that can be done in order to limit the amount of letters and phone calls I will be getting then I'm up for it as my partner is not aware about my situation. 

3. It is probably a stupid question but how many letters from creditors can I realistically expect while I'm building EF for 6 month? Will I get bombarded with them?

4. I really want to go through Step Change first. But one of my personal loans is taken through Salary Finance and payments are taken straight from my salary. Therefore I don't think this payment can be cancelled. But the other issue is what would Step Change do with it since I know they like to share the DMP payment between all creditors, and obviously Salary Finance would be getting full payments unlike other creditors. Is there any way around it?

I hope these questions make sense, as English is not my 1st language.

Thanks

nbamaster

One more stupid question if I may - when I cancel DDs and creditors start sending generated letters - do envelopes look like any other letters or can you tell straight away it's about debt? 

Thank you

Penguin_

Letter from PRA saying that they are at present unable to provide a CCA for one debt so they have deemed it unenforceable at present. I know they could get something in the future but it should give me a bit of wiggle room in terms of offering a settlement. 

jwil

nbamaster said:

Hi everyone,

I've spent all day reading through this thread, trying to get as much information as possible. Still - pardon me if I'm asking questions that have been asked before.

I've got 29k of unsecured debt (credit cards and personal loans) and can no longer afford minimum payments. I believe DMP is the way to go for me at this point...

My plan of action is:

1. Open Nationwide flex account and update my employer with new bank details.
2. Cancel all DDs and standing orders.
3. Build EF, ideally for 6 months
4. Start DMP through Step Change (might go SM in the future, but feel like need their help at the beginning) 


Now a few questions please:

1. I get paid on the 25th of each month, so there is not enough time to change my bank account this month. Can I cancel all DDs now apart from 2 loans and overdraft I have got with my own bank? (Lloyds) and when my bank details are updated, will cancel Lloyds debts and stop using Lloyds account. Or is it better to wait until employer updates my details? BTW - I should receive new card in 7-10 days so I can't do anything now anyway, right? 

2. Should I inform creditors I am having financial difficulties and I'm currently looking for solution with Step Change and also ask them to contact me only via Royal Mail?
Or just ignore everything for 6 months? 
I should mention that if there's anything that can be done in order to limit the amount of letters and phone calls I will be getting then I'm up for it as my partner is not aware about my situation. 

3. It is probably a stupid question but how many letters from creditors can I realistically expect while I'm building EF for 6 month? Will I get bombarded with them?

4. I really want to go through Step Change first. But one of my personal loans is taken through Salary Finance and payments are taken straight from my salary. Therefore I don't think this payment can be cancelled. But the other issue is what would Step Change do with it since I know they like to share the DMP payment between all creditors, and obviously Salary Finance would be getting full payments unlike other creditors. Is there any way around it?

I hope these questions make sense, as English is not my 1st language.

Thanks

I'd cancel the DDs now, leaving the Lloyds ones until you get your new account.  I'd write to your creditors and tell them you are seeking advice and will be in touch again with a solution.  You'll get a fair few letters, but you'll probably reduce them if you communicate rather than just ignore.  Definitely say you want contact in writing only.

I have no experience with Salary Finance, but Stepchange will be able to advise.  I know you say you want to go with SC first, and I understand because I was the same, but have a look at the NEDCAB site - it is really good and will generate all the letters for you.  You could then just list your SF loan as a priority loan.  

In terms of what the letters look like - they are just standard letters - there is nothing to identify them as debt collection letters, and once you get set up, the frequency is minimal.

If you don't feel you want to tell your partner (I haven't), then just consider how you will explain your sudden change in habits - if you usually whip out the CC if you are out, or if you want to buy something big, you won't have access to credit any more.  That is one reason why it's helpful to have that emergency fund, but it's also something a partner may notice and question.

Dixie80

Hi, 

I started a DMP with PP in December.  I had 15K worth of debt, which under normal circumstances could afford to pay... just about.  Then Covid hit and my husband was first furloughed, then made redundant.  I had to take responsibility for all household bills, which meant that the unsecured debts couldn't be paid, so I went down the route of the DMP.  I had a great experience with PP, and it went a long way to reducing a lot of anxiety that I was suffering. 

My husband has struggled to find a job, and has been on a New enterprise plan with the Jobcentre.  He's started his own business, and it's early days.  He also has around 15k of debt on a personal loan and a couple of credit cards, and his redundancy money has been paying those off for the last 6 months.  However, that's all gone, and he's spoken to PP because he just can't pay his debts right now.   Totally different experience.  The call handler was quite condescending about his self-employed earnings, and twice mentioned to him how I must be angry that I'm paying all of the household bills, and that I'm basically supporting him (what else is a spouse supposed to do in this situation?!).   She then nearly wet herself when she found out that I too have a DMP, and said that something must be incorrect in my plan because I shouldn't be able to afford to have DMP AND pay his share of the household bills.  My DMP was constructed so that I COULD pay the bills.  

The things that she was saying have completely undermined my respect for PP.  I'm now considering going self-managed and helping my husband self-manage his too.   In terms of going self-managed, do I just notify payplan of my intention, and take over with corresponding directly with my debtors myself - sending the expenditure details to them, etc, and my intended payment contribution?  
I'm guessing it would be easier to start off self-managed in my husbands case?  

Sorry for the long post, I just needed to vent somewhere! 

sourcrates

Dixie80 said:

Hi, 

 do I just notify payplan of my intention, and take over with corresponding directly with my debtors myself - sending the expenditure details to them, etc, and my intended payment contribution?  
I'm guessing it would be easier to start off self-managed in my husbands case?  

Sorry for the long post, I just needed to vent somewhere! 

Yes basically, just remember, you are the debtor, the people you owe money too are your creditors.

Self managing a DMP is very straight forward and simple to do.

Good luck with it.

nbamaster

Just one more thing:

I have cancelled all DDs (apart from Lloyds, as still waiting for my second bank account to be in use). I want to send out holding letters to my creditors with the information that I'm currently seeking advice from Step Change etc.

Should I inform them I will not be paying anything for the next 6 months or is it to early to do that and just ask them to wait 30 days and stop adding interest and fees?

Many thanks 

natlie

Hello, I’ve had my final default issued today hooray! It’s brown MBN* unlike my other creditors this letter has asked for the full payment of over £5k this hasn’t happened to me before, it says the recoveries team are non managing my acct. 

it says next steps are to make the full balance payment immediately. I no longer have any contractual right to pay my debt by monthly repayment but if I am paying an agreed payment I should continue doing so until further notice.

I assume it will get sold on now I just don’t like the tone of this particular letter compared to my previous defaults

nat

sourcrates

natlie said:

Hello, I’ve had my final default issued today hooray! It’s brown MBN* unlike my other creditors this letter has asked for the full payment of over £5k this hasn’t happened to me before, it says the recoveries team are non managing my acct. 

it says next steps are to make the full balance payment immediately. I no longer have any contractual right to pay my debt by monthly repayment but if I am paying an agreed payment I should continue doing so until further notice.

I assume it will get sold on now I just don’t like the tone of this particular letter compared to my previous defaults

nat

Standard default notice Natlie, its a requirement of the CCA to send this to you in order to allow you to remedy the breach, should you wish too.

It will ask for the full amount, and list the possible consequences of non payment, as per the terms of the CCA.

I think it gives you 14 days to remedy the breach, or a default will be placed on your credit file.

That is what you want, so just file the letter, hopefully they will follow through with the default, they don`t always do so, but that would be the normal result.

The debt will then go to collections, then either an external debt agency, or it may even be sold, they make these decisions on the hoof so to speak.

Most of all, don`t panic, the wording may sound scary, but its just standard typeface.