DMP mutual support thread part 13 !!

sourcrates

swansea_lad said:

Received this from Payplan yesterday

We are writing to you in relation to your account with MBNA International Ltd, reference 4129851686497631.

This creditor has informed us that they have rejected your offer of repayment. Whilst they will continue to accept payments from you, they may decide to add interest or charges to the amount owing. This is because the offer of repayment is more than the contractual payment due under your credit agreement.

You don't need to take any action about this, but we should both keep an eye on how much interest is charged as the amount might make an alternative debt solution more suitable.

If you have any questions or would like to discuss the situation with us, then please do not hesitate to drop us a message on your PayPlan Plus account or call 0800 316 7155. We will be happy to review your case at any point to make sure that a DMP is still right for you.

Kind regards,

The PayPlan team


Payplan said that you can apply to get defauls removed when you have paid off the debt. Anyone know if this is worth a try?

No, you can`t get defaults removed, what are they talking about ?

And why would you anyway ?

You want defaults, that way all interest is stopped.

You should really have waited till your accounts were all defaulted before starting debt management, looks like you`ll have to lump it now.

andrar

sourcrates said:

You should really have waited till your accounts were all defaulted before starting debt management, looks like you`ll have to lump it now.

Just on this - can I ask how you manage the inbetween stage please? Where three of my creditors have defaulted me but I’m waiting for the others to. My loan says it could be end of the year before they even think about defaulting me for example. If I don’t set something up with those that have defaulted me am I opening myself up to court action? I want to use stepchange but should I try doing it myself to save this issue?

 Thanks 

sourcrates

andrar said:

sourcrates said:

You should really have waited till your accounts were all defaulted before starting debt management, looks like you`ll have to lump it now.

Just on this - can I ask how you manage the inbetween stage please? Where three of my creditors have defaulted me but I’m waiting for the others to. My loan says it could be end of the year before they even think about defaulting me for example. If I don’t set something up with those that have defaulted me am I opening myself up to court action? I want to use stepchange but should I try doing it myself to save this issue?

 Thanks 

Its always awkward when creditors won`t default you, some are quicker than others, some think they are doing you a favour by not defaulting, basically it can be a minefield that throws up all sorts of potential issues. 

You must choose what your goal is, if you can live with AP markers, and interest still being added, then continue as you are.

On the other hand, you seem to be rather tired of that scenario, and that is understandable, we normally advise just stopping all non essential debt payments, until defaulted, or otherwise sold on, however long that may be, once the debt is with a debt purchasing company, as I've said before, all interest stops, and they will accept pretty much any deal you put forward.

Legal action is quite rare, believe it or not, and as with everything in life, there is a process they must go thought, its called the "pre-action protocol", and is a part of the civil procedure rules.

This involves what's known as an LBA (Letter before action) usually consisting of a questionnaire type document with a 30 day return window, this is designed so that you can come to an agreement with your creditor, and avoid the matter going to court.

If this is ignored, then a claim form usually follows.

So there will be plenty of warning of impending legal action, and plenty of time for you to deal with it, so the process can be done quite easily, as long as your keep an eye on your post, its just common sense really.

andrar

sourcrates said:

So there will be plenty of warning of impending legal action, and plenty of time for you to deal with it, so the process can be done quite easily, as long as your keep an eye on your post, its just common sense really.

thanks so much, I wasn’t aware of the pre-action protocol, that’s so helpful to know. I shall try my best to stand firm and not wobble! 

Jordantaylor89

I have been on token payment with one creditor a fairly large loan
desperate to get it defaulted  been a year now paying £1  but still no default 
i am thinking about canceling the £1 and paying nothin for few months to try to get defaulted but  worried they will  wack me with a ccj. Can anybody help please

Suseka97

Jordantaylor89 said:

I have been on token payment with one creditor a fairly large loan
desperate to get it defaulted  been a year now paying £1  but still no default 
i am thinking about canceling the £1 and paying nothin for few months to try to get defaulted but  worried they will  wack me with a ccj. Can anybody help please

Read a few posts above - you won't suddenly get a CCJ.  There's a process to follow and you would have plenty of time to make an arrangement to pay.  I used to think tokens showed willing, but they are pretty pointless really.  It costs the company more in admin to handle the payment, than its worth.  

So, stop the payment and make a complaint (or several) about the non-default.

CL16Fan

We're on month four of our DMP, and the default letters are slowly starting to come through. Has anyone else had faff with some banks actually acknowledging StepChange? We've got a bit of that. On the plus side, one of our debts is now under £500 outstanding so will soon be cleared. Little steps! 4 years until everything's done, apparently. 

BooBoo77

Hello I went self managed last year and have been gradually obtaining CCA documentation over the interim period and have restarted paying each of the ones who have produced documentation.   I am just about to start producing my annual budget for each of the ones I’m paying. How have you recorded the ones that are either unenforceable or haven’t yet produced the CCA documentation please? I’m thinking i include their details and amounts outstanding but write, currently on hold as unenforceable / CCA docs not yet produced. Then I divide total money available to the remaining creditors to pay them off sooner. Is that the best way to do this? I’d like to pay the others off sooner. Thanks 

Suseka97

BooBoo77 said:

Hello I went self managed last year and have been gradually obtaining CCA documentation over the interim period and have restarted paying each of the ones who have produced documentation.   I am just about to start producing my annual budget for each of the ones I’m paying. How have you recorded the ones that are either unenforceable or haven’t yet produced the CCA documentation please? I’m thinking i include their details and amounts outstanding but write, currently on hold as unenforceable / CCA docs not yet produced. Then I divide total money available to the remaining creditors to pay them off sooner. Is that the best way to do this? I’d like to pay the others off sooner. Thanks 

As you are self-managing and intending to only pay the enforceable ones for now, then I don't think it necessary to include them in your I&E, but I guess it doesn't matter if you do and show that you are apportioning all your available balance to the ones you are intending to pay.   

It's really up to you what you show on your I&E.

BooBoo77

Thanks so much Suseka.  That's really helpful.  

I've got another question which I'd be grateful for advice on please.  All my previous defaults finished last year and stupidly I got tempted to apply for credit building credit cards.  The plan was to just use them to show I could deal with credit now - as if! I've since racked up another £4k debt and need to deal with them.  My current DMP will take about 5 years to clear so I think my best plan is now to get them defaulted and added to my existing DMP once they've done that.  

As I'm self managing, how is it best to do that please?  I'm thinking that I write to each of them to say that I'm in financial difficulty and need time to sort myself (maybe mention taking advice from step change?), stop payments etc and wait for them to default.  Once they do default I add them to my existing I&E and revise payments to take them into account?  

I was thinking I'd try and pay them off beside the DMP but I'm just going to be extra stretched like that, could be tempted to use credit again with them and they'd still be there (due to the interest) once I'd finished my DMP.  This way after 6 years I would really be clear of all defaults and I would also be preventing myself being able to take out more credit while I pay off.  Which is scary.  I feel so stupid to get into this again when I've been so diligent.  Thanks for any and all advice.