DMP mutual support thread part 13 !!

nbamaster

Hi everyone,

Just a quick update of my situation:

I've stopped my DDs in August hoping for my debts to default, so I can start DMP with StepChange.

So far all debts have defaulted BUT one Lloyds credit card.

What worries me though is that I received first default about 2-3 months ago. Most of my debts have been passed/sold to DCAs like PRA Group, Wescot, Moorcroft, LC Asset.

I'm a bit worried that while I'm waiting for my last debt to go into default something bad will happen in regards to other debts as I'm completely ignoring phone calls and letters I receive from DCAs.

Is there anything I should do atm?
Lloyds already defaulted 2 loans, but for whatever reason hasn't done the same with CC.

Thank you

sourcrates

nbamaster said:

Hi everyone,

Just a quick update of my situation:

I've stopped my DDs in August hoping for my debts to default, so I can start DMP with StepChange.

So far all debts have defaulted BUT one Lloyds credit card.

What worries me though is that I received first default about 2-3 months ago. Most of my debts have been passed/sold to DCAs like PRA Group, Wescot, Moorcroft, LC Asset.

I'm a bit worried that while I'm waiting for my last debt to go into default something bad will happen in regards to other debts as I'm completely ignoring phone calls and letters I receive from DCAs.

Is there anything I should do atm?
Lloyds already defaulted 2 loans, but for whatever reason hasn't done the same with CC.

Thank you

They are not debt collectors, they are debt purchasing companies, bit of a difference in that they own the debts they are chasing.

Is self management an option ?

You could start the DMP, and leave out the non defaulted account for now.

I think I would do that.

PC304

Hi Everyone,

I was just hoping for a little guidance. My current situation is I have 26k on a DMP spread over 11 creditors. All have defaulted bar a few small debts. I am just approaching the 2 year mark in April this year, and pay £325 a month.

Fortunately I have had some pay increases and cut back on other expenditure and I am now in a position to pay more to the debts. I have taken advice on here before and was advised a good plan is to keep paying the £325 as agreed but then build up another fund to try and offer discounted F+F settlements.

I dont have this fund yet - as I am just now being able to start it, with around £200 a month I can afford to put into it.

My question is, one of my creditors has a settlement offer to settle around 3k of debt for 1.5k, so a 50% reduction. If the offer still stands towards the end of the year (it is an auto calculated one on their website when I log into my account) then I will be able to afford this and clear 3k of my debt.

However - should I do this? My DMP is with PayPlan and will I not be advised to offer the payment over all my creditors? 

Is it best to let the fund grow over several years and then offer a settlement to all my creditors at once?

Any advice would be great.

nbamaster

sourcrates said:

nbamaster said:

Hi everyone,

Just a quick update of my situation:

I've stopped my DDs in August hoping for my debts to default, so I can start DMP with StepChange.

So far all debts have defaulted BUT one Lloyds credit card.

What worries me though is that I received first default about 2-3 months ago. Most of my debts have been passed/sold to DCAs like PRA Group, Wescot, Moorcroft, LC Asset.

I'm a bit worried that while I'm waiting for my last debt to go into default something bad will happen in regards to other debts as I'm completely ignoring phone calls and letters I receive from DCAs.

Is there anything I should do atm?
Lloyds already defaulted 2 loans, but for whatever reason hasn't done the same with CC.

Thank you

They are not debt collectors, they are debt purchasing companies, bit of a difference in that they own the debts they are chasing.

Is self management an option ?

You could start the DMP, and leave out the non defaulted account for now.

I think I would do that.

Thank you sourcrates, I appreciate your help.

I know self management would be a good option here as it would give me more flexibility. But I don't feel confident enough atm to do self management. Maybe in the future, but ad of now - I wanted to go through StepChange.

I guess StepChange won't let me start DMP and leave out that one CC debt?

Is waiting another month or so (hopefully it will default by then) very risky?

If it is. I will start DMP ASAP. Would DMP stop Lloyds from defaulting that CC? 
It would be fairly small payments anyway.

Thank you

kel90

Hi all, I entered my DMP in April 2018, all going well I thought, however I’ve been reading through this forum and have now realised that having a special arrangement on two of my accounts is not something I should be happy about. All of my other accounts have defaulted, I naively thought that having these special arrangements meant once they were paid they would come off my credit file now I realise they stay on for 6 years after final payment. These accounts are with Very and Everyday loans, my question is can I ask them or push them to default these loans and back date this from when they should have been defaulted, or even ask that they be defaulted from now? My plan is not estimated to end until December 2026. 

Many thanks and sorry if this has been asked before.

sourcrates

Kel90,

You can do anything you want friend, its a free country.

Make a complaint, see what they say.

bon007

Hi
after following all the excellent advice on here I started my journey by deciding to go self managed on my DMP.

I have the total of 7 accounts and I thought 3 accounts had defaulted . The first account was straight forward and sold to Moorcroft and they have a agreed my payment plan straight away .I then received a statutory notice of default from another creditor so I assumed this account had defaulted so I followed the same system sent a letter and offered a payment . This particular creditor has now sent me a letter stating they are happy to receive this payment but my credit profile will state your in a paying arrangement. 

My question is what do I do now ? As I understand I need the account to default in which I thought it had?

The third account I received a default notice served under section 23

I then sent a letter making an offer of payment in which I have now received a response stating Please send us

An offer of payment
Financial Statement

Your account has now been placed on hold for 4 weeks .

The other accounts are yet to send any default paperwork . 

I would appreciate my next steps as feel a little lost . ? 

sourcrates

Contacted them far too early, they won’t default you now as you contacted them to make an arrangement.

You need to wait a good 6-8 months after the default notice arrives, longer even, until you see that default on your credit file.

Then you make your move, my advice, ignore things for a while, let the process unfold.

bon007

hi Sourcrates so these accounts are not defaulted then ?  So now just ignore all correspondence is that what you mean ? 

sourcrates

bon007 said:

hi Sourcrates so these accounts are not defaulted then ?  So now just ignore all correspondence is that what you mean ? 

Check your credit file and see.

Anything to do with debt collection takes time, a lot longer than people think, you have to keep in mind what a default actually is.

The default notice just informs you of the status of your account, and it gives you a timescale to remedy the breach by, in order to continue with the agreement.

You don`t want to continue with the agreement, nor do you want to come to an arrangement which avoids a default with this company, your business together has been concluded, the agreement is terminated, and you no longer have a working arrangement, that is what defaulting is, the end of your relationship with that lender.

Now this default notice served under sec 87/1 of the consumer credit act, lists a number of things the creditor can do, note can do, not will do.

In the vast majority of cases your account will be sold, or passed to a collector.

Its only now at this stage that you start to engage with the new owner, if someone is just collecting the debt, find out if a default has been registered, if it has, that`s all good, if not, again, wait until its sold and then defaulted.

All defaults will be registered on your credit file, showing the date of default.

Making the system work for you in this way see`s to it that negative information only stays on file for 6 years, and not double that time as with AP markers, of course if your credit file is of little interest to you, then you can start making payment arrangements at any time you choose.