DMP mutual support thread part 13 !!

Suseka97

nbamaster said:

Hello everyone,
My debt is about £25k with 5 different creditors.
As I was advised in this forum I have cancelled my direct debits at the end of July 2021 in order to get defaults on all of my debts before I proceed with DMP through StepChange.
At the moment 2 out of 5 accounts are in default  the other 3 are in arrears (4 months behind with payments).
Tesco bank credit card debt which is in arrears apparently have been to Moorcroft. Does it mean it defaulted as well? 
Is there anything I should do at the moment? Do I have to get in touch with Moorcroft at all?  Or should I wait for all my debts to be in default first before I take any action and apply for DMP? 

You should receive a written default notice from the creditor or DCA in question, but the best way to confirm whether your accounts have been defaulted or not is to check the 3 credit reference agencies.  The free ones, not paid for, which are MSE credit club, Clearscore & Credit Karma.

I wouldn't get in touch with Moorcroft, wait until they write to you and yes - ideally its best to wait until the accounts are defaulted before you enter into the DMP.

nbamaster

Suseka97 said:

nbamaster said:

Hello everyone,
My debt is about £25k with 5 different creditors.
As I was advised in this forum I have cancelled my direct debits at the end of July 2021 in order to get defaults on all of my debts before I proceed with DMP through StepChange.
At the moment 2 out of 5 accounts are in default  the other 3 are in arrears (4 months behind with payments).
Tesco bank credit card debt which is in arrears apparently have been to Moorcroft. Does it mean it defaulted as well? 
Is there anything I should do at the moment? Do I have to get in touch with Moorcroft at all?  Or should I wait for all my debts to be in default first before I take any action and apply for DMP? 

You should receive a written default notice from the creditor or DCA in question, but the best way to confirm whether your accounts have been defaulted or not is to check the 3 credit reference agencies.  The free ones, not paid for, which are MSE credit club, Clearscore & Credit Karma.

I wouldn't get in touch with Moorcroft, wait until they write to you and yes - ideally its best to wait until the accounts are defaulted before you enter into the DMP.

Thank you for your response.

I've just checked my reports and it says that thisn tesco cc debt will  default in my next December report.

Moorcroft sent me a letter a week ago asking me to get in touch with them.

So coming back to my original question - 
1. Should I get in touch with Moorcroft now?
2. I haven't received any information regarding two other defaults - whether they have been sold on to CDAs or not.

Whats the best way to go about it?

If I'll have to wait another couple of months for my other debts to default before I start my DMP, what I Moorcroft and others going to do? 
I'm just afraid they will take serious action against me...

Many thanks for your help, I appreciate it 🙏 

rachmc

Hi All,

I posted a while back and really appreciated the support and advice you offered. So far, only 3 accounts have defaulted- I didn't realise how much of a slow process this would be! I have a query for your lovely brains regarding PayPal. PayPal have defaulted me, I've asked them to hold for 30 days, they agreed and I've just gone back to them at the end of the 30 days with a payment offer which they've accepted but the wording of their response is a bit bizarre. The reply mentions "While you are making the above repayments, an Arrangement will be reported on your PayPal Credit account to the Credit Reference Agencies". 

My query is now that the account has officially defaulted (I've checked and it does show as defaulted on Equifax and Transunion), should they be showing an arrangement or should it be the default only?

Thanks in advance

sourcrates

nbamaster said:

Suseka97 said:

nbamaster said:

Hello everyone,
My debt is about £25k with 5 different creditors.
As I was advised in this forum I have cancelled my direct debits at the end of July 2021 in order to get defaults on all of my debts before I proceed with DMP through StepChange.
At the moment 2 out of 5 accounts are in default  the other 3 are in arrears (4 months behind with payments).
Tesco bank credit card debt which is in arrears apparently have been to Moorcroft. Does it mean it defaulted as well? 
Is there anything I should do at the moment? Do I have to get in touch with Moorcroft at all?  Or should I wait for all my debts to be in default first before I take any action and apply for DMP? 

You should receive a written default notice from the creditor or DCA in question, but the best way to confirm whether your accounts have been defaulted or not is to check the 3 credit reference agencies.  The free ones, not paid for, which are MSE credit club, Clearscore & Credit Karma.

I wouldn't get in touch with Moorcroft, wait until they write to you and yes - ideally its best to wait until the accounts are defaulted before you enter into the DMP.

Thank you for your response.

I've just checked my reports and it says that thisn tesco cc debt will  default in my next December report.

Moorcroft sent me a letter a week ago asking me to get in touch with them.

So coming back to my original question - 
1. Should I get in touch with Moorcroft now?
2. I haven't received any information regarding two other defaults - whether they have been sold on to CDAs or not.

Whats the best way to go about it?

If I'll have to wait another couple of months for my other debts to default before I start my DMP, what I Moorcroft and others going to do? 
I'm just afraid they will take serious action against me...

Many thanks for your help, I appreciate it 🙏 

Original creditors don`t take legal action, instead they either sell your debt to someone else, or they retain ownership of it, but engage a DCA to collect the debt on their behalf.

If a debt is sold, you will be informed in writing, likewise the other option is the debt collection route, the letter will refer to "there client", so the collection company doesn't own the debt, so can`t do anything except advise their client.

It appears all Moorcroft are doing is acting on behalf of Tesco Bank, so they will go through there standard range of collection letters with you, and if you don`t bite within a certain timescale, they simply return the account to Tesco, who will then engage another DCA, and it`s rinse and repeat again, and so it continues.

Under the civil procedure rules, the first step to legal action requires a "letter before action" to be sent, this is a questionnaire type document with a 30 day return window, so plenty of time and warning for you to react.

At present, stay your course, until your credit files show defaults for all accounts, unless circumstances just mentioned prevail, which is unlikely, but a possibility, that`s what you should do.

Suseka97

sourcrates said

....... Under the civil procedure rules, the first step to legal action requires a "letter before action" to be sent, this is a questionnaire type document with a 30 day return window, so plenty of time and warning for you to react.

At present, stay your course, until your credit files show defaults for all accounts, unless circumstances just mentioned prevail, which is unlikely, but a possibility, that`s what you should do.

I'm highlighting this point for all and any who are feeling overwhelmed by this process or fearful of it!

Understand that the process of debt collection is pretty simple and structured.  If you are going down the DMP route you must hold out for defaults, so you can be assured that a) all interest and charges are stopped and b) the 6 year clock commences when the default will fall off your credit file regardless of whether there is still an outstanding balance or not.

Don't be bullied by either the original creditor or, subsequently, a debt collection agency.  Their aim is to get you to enter into some form of payment arrangement and if you are going down a DMP route, make sure that arrangement suits you and not them.  Do it on your terms and in your own timeframe depending on your personal circumstances and realise that you can always stop court action if it gets that far by entering into a payment arrangement and one that you can afford.

nbamaster

Suseka97 said:

sourcrates said

....... Under the civil procedure rules, the first step to legal action requires a "letter before action" to be sent, this is a questionnaire type document with a 30 day return window, so plenty of time and warning for you to react.

At present, stay your course, until your credit files show defaults for all accounts, unless circumstances just mentioned prevail, which is unlikely, but a possibility, that`s what you should do.

I'm highlighting this point for all and any who are feeling overwhelmed by this process or fearful of it!

Understand that the process of debt collection is pretty simple and structured.  If you are going down the DMP route you must hold out for defaults, so you can be assured that a) all interest and charges are stopped and b) the 6 year clock commences when the default will fall off your credit file regardless of whether there is still an outstanding balance or not.

Don't be bullied by either the original creditor or, subsequently, a debt collection agency.  Their aim is to get you to enter into some form of payment arrangement and if you are going down a DMP route, make sure that arrangement suits you and not them.  Do it on your terms and in your own timeframe depending on your personal circumstances and realise that you can always stop court action if it gets that far by entering into a payment arrangement and one that you can afford.

Thanks to both of you. Your help is much appreciated.

bon007

Hi I had a light bulb moment 3 months ago and realised like we all do that my credit was extortionately out of control & had no idea how I had got to being 50k in debt . I have now begun the process and I stopped my payments 3 months ago but these are yet to default as I have just set up an account with clear score . I am in the process of creating a realistic SOA and I have decided I would like to self manage but I have no idea where to begin . I have started creating an emergency fund as advised on these amazing forums . My credit report shows I have 3 months of arrears so I take it these are not defaulted yet . I am being hounded by loads of phone calls even though I sent a letter requesting no phone calls . Over the Christmas period I want to create a realistic budget of what I could afford to pay on a payment plan but that’s where I would like some advice ? I would appreciate any advice on going forward from here . I feel ashamed by the whole situation but I understand this is common and you just need to move forward . I would be grateful if any reply .

debtfreeme2021

Hi @bon007 I’m very much starting my journey like yourself so learning through this page as I go along and reading other resources as best as I can . So far I have just ignored the calls which can be up to 5-6 times a day from some . Having a few urgent repairs I needed to sort I have also started to build my emergency fund now and trying to get my head around my budget. The one thing I thought I would share from a learning experience is to use cash envelopes for certain elements of my budget so I can visually see where my money is going this has really helped me gain a little structure . In terms of budget I have found it takes some tweaking talking the advice on board that you need to live in an almost comfortable position but not extravagantly and try and set your budget around that. I don’t have a plan yet on how I will divide up the remaining disposable income to my debtors , I know step charge divide equally but I think I will allocate a percentage to each . Will be interested in how others respond . Good luck on your journey . 

Suseka97

bon007 said:

Hi I had a light bulb moment 3 months ago and realised like we all do that my credit was extortionately out of control & had no idea how I had got to being 50k in debt . I have now begun the process and I stopped my payments 3 months ago but these are yet to default as I have just set up an account with clear score . I am in the process of creating a realistic SOA and I have decided I would like to self manage but I have no idea where to begin . I have started creating an emergency fund as advised on these amazing forums . My credit report shows I have 3 months of arrears so I take it these are not defaulted yet . I am being hounded by loads of phone calls even though I sent a letter requesting no phone calls . Over the Christmas period I want to create a realistic budget of what I could afford to pay on a payment plan but that’s where I would like some advice ? I would appreciate any advice on going forward from here . I feel ashamed by the whole situation but I understand this is common and you just need to move forward . I would be grateful if any reply .

No need to feel ashamed of anything and well done for taking control of your financial situation.

This is a very useful resource and worth sitting down and reading through the process, it also provides you with a number of template letters that will help you along the way https://nedcab.cabmoney.org.uk/dmp.asp

Basically you need to get your SOA together and decide on what you can reasonably and comfortably afford and then wait for the accounts to default, continuing to build on your EF whilst you wait.  If your credit file is currently showing 3 months in arrears they have not defaulted and you should receive formal written notification as and when that happens.  Be prepared for a long wait, not all creditors move to defaults quickly - your account will go through an internal process first and likely to be handed over to their in-house collections.  As for the phone calls, you can do one or both of these things - write again and head your letter with 'formal complaint' and insist they remove your phone number from their records and/or block the number.  Make it clear that you do not give permission for them to use your number and if they continue you will report them to the information commissioners office (that should do the trick).

All of this will take time and when you are ready to set up your DMP then pop back on here if you need help with the next steps.

HelenM05

Hi it's me again, we have now received letters back from nearly all the debt companies responding to our CCA requests wih various different replies but none of them are able to produce the CCA"s at this time. Idem securities have sent a statement showing the last 12 months payments (paid through stepchange) and the letter heading states Re; Your unsecured credit agreement. Is this their way of trying to scare us into thinking this is actually a CCA when it clearly isn't? Also one or two have been quite threatening in the tone of the letters stating although it isn't enforceable they will still  pursue the debt with debt collectors. My next DMP is due on 10th January and the more I pay them the less we have available for full and finals. It's really annoying because we've already offered f&f amounts which they have all refused. We've been on this DMP for 10 years now and it's like a huge weight that we can't get rid of, if we carry on with the DMP it will take us at least another 5 or 6 years to pay it off.