DMP mutual support thread part 13 !!

Littlebigmoose

Could anyone kindly advise on the best course of action in my current situation please: Currently on self managed DMP all defaulted except 2. Defaults will fall off report in 2 years and this is when I plan to buy my 1st home. The 2 creditors that have not defaulted 1 of them has been putting AP markers for my token payments and the other has not reported anything for the last 6 months. Is there any benefit in stopping the token payments to force them to default or am I better off just repaying them asap so it doesn't affect my mortgage application in 2 years time?

sourcrates

Littlebigmoose said:

Could anyone kindly advise on the best course of action in my current situation please: Currently on self managed DMP all defaulted except 2. Defaults will fall off report in 2 years and this is when I plan to buy my 1st home. The 2 creditors that have not defaulted 1 of them has been putting AP markers for my token payments and the other has not reported anything for the last 6 months. Is there any benefit in stopping the token payments to force them to default or am I better off just repaying them asap so it doesn't affect my mortgage application in 2 years time?

Ideally in your situation I would exhaust the complaints process with them both.

Make the point that guidance suggest a default should be added after between 3/6 missed contractual repayments, by not defaulting you they are not treating you fairly, ask them to do so, and backdate the default to when you would been 3/6 payments in arrears.

Newmum92

Hi everyone 

I’ve had my first response to my token payment offer letter where I enclosed my budget to back this up. 

I’ve had this response- I really don’t want to call and I did specify in my letter that I want all communication in writing or via email. 

How do I respond to this -

Thank you for your email addressed to our Group CEO, CS Venkatakrishnan, enclosing your budget plan. We appreciate you sharing this with us to pass to our team.

While we have shared your plan with our Collections team, we would require you to contact them directly on 0333 202 7412, as they will need to have a discussion with you to ensure we are able to support you as best as we can.

I hope this addresses your concerns and please feel free to contact us if you have any questions at all. You can call us on 0207 116 8012.

sourcrates

Newmum92 said:

Hi everyone 

I’ve had my first response to my token payment offer letter where I enclosed my budget to back this up. 

I’ve had this response- I really don’t want to call and I did specify in my letter that I want all communication in writing or via email. 

How do I respond to this -

Thank you for your email addressed to our Group CEO, CS Venkatakrishnan, enclosing your budget plan. We appreciate you sharing this with us to pass to our team.

While we have shared your plan with our Collections team, we would require you to contact them directly on 0333 202 7412, as they will need to have a discussion with you to ensure we are able to support you as best as we can.

I hope this addresses your concerns and please feel free to contact us if you have any questions at all. You can call us on 0207 116 8012.

Token payments are a waste of time to be honest, its a faff to sort out, and cost`s the lender more to process the payment than its worth normally, if this isn`t the 20k debt, just let it go through the collections process, and wait till its sold on, then you can organise everything from the debt purchasers websites online account, much easier and simpler.

nbamaster

Hi, it's me again....

So as I mentioned last time, all of my debts apart from one Lloyds CC have defaulted. LLOYDS CC has 6 missed payments, but I'm still waiting to get a default on it.

Since I don't want to go self managed with DMP, would it be worth to write to each creditor telling them I am in process of setting up DMP with StepChange? Just to buy myself more time, (in case they decide to take further actions against me) while I'm waiting for my last debt to default?

Also, I've noticed my overdrafts status hasn't changed at all since I stopped all my DDs (6 months ago). Is it normal?

Thanks in advance 

sourcrates

nbamaster said:

Hi, it's me again....

So as I mentioned last time, all of my debts apart from one Lloyds CC have defaulted. LLOYDS CC has 6 missed payments, but I'm still waiting to get a default on it.

Since I don't want to go self managed with DMP, would it be worth to write to each creditor telling them I am in process of setting up DMP with StepChange? Just to buy myself more time, (in case they decide to take further actions against me) while I'm waiting for my last debt to default?

Also, I've noticed my overdrafts status hasn't changed at all since I stopped all my DDs (6 months ago). Is it normal?

Thanks in advance 

The OD will just run and run until the bank realise your not using the account and will eventually close it, that could take a while, why not write to them and tell them your intentions, ask them to default you, explain your entering debt management, can`t hurt can it.

Suseka97

nbamaster said:

Hi, it's me again....

So as I mentioned last time, all of my debts apart from one Lloyds CC have defaulted. LLOYDS CC has 6 missed payments, but I'm still waiting to get a default on it.

Since I don't want to go self managed with DMP, would it be worth to write to each creditor telling them I am in process of setting up DMP with StepChange? Just to buy myself more time, (in case they decide to take further actions against me) while I'm waiting for my last debt to default?

Also, I've noticed my overdrafts status hasn't changed at all since I stopped all my DDs (6 months ago). Is it normal?

Thanks in advance 

I'd start to chase the default with Lloyds and keep at it... hold off contacting the others for a while longer and only send a letter if you receive something that might suggest they are escalating collection processes (which I doubt will happen anytime soon).  I've been handling debt accounts for a family friend who is unable to manage their own affairs at the moment, and its been over a year with no formal processes in place aside from them actioning defaults.

Littlebigmoose

sourcrates said:

Littlebigmoose said:

Could anyone kindly advise on the best course of action in my current situation please: Currently on self managed DMP all defaulted except 2. Defaults will fall off report in 2 years and this is when I plan to buy my 1st home. The 2 creditors that have not defaulted 1 of them has been putting AP markers for my token payments and the other has not reported anything for the last 6 months. Is there any benefit in stopping the token payments to force them to default or am I better off just repaying them asap so it doesn't affect my mortgage application in 2 years time?

Ideally in your situation I would exhaust the complaints process with them both.

Make the point that guidance suggest a default should be added after between 3/6 missed contractual repayments, by not defaulting you they are not treating you fairly, ask them to do so, and backdate the default to when you would been 3/6 payments in arrears.

Thank you for your reply sourcrates. Sadly I have already tried this, even going to the financial ombudsman, but the creditors decision to not default was upheld. Apparently it's only guidance and they don't have to and reporting an Arrangement to Pay is a true reflection of what's happening with my accounts.

Cpfc1234

Morning all. A bit of advice please. Had my first default confirmed on clearscore and received a letter from moorcroft. How long to I wait now before proceeding with setting up payment as waiting for 4 more defaults and would like to get a bit more wool on my back regards EF pot. Any advice greatfully received cheers

nbamaster

sourcrates said:

nbamaster said:

Hi, it's me again....

So as I mentioned last time, all of my debts apart from one Lloyds CC have defaulted. LLOYDS CC has 6 missed payments, but I'm still waiting to get a default on it.

Since I don't want to go self managed with DMP, would it be worth to write to each creditor telling them I am in process of setting up DMP with StepChange? Just to buy myself more time, (in case they decide to take further actions against me) while I'm waiting for my last debt to default?

Also, I've noticed my overdrafts status hasn't changed at all since I stopped all my DDs (6 months ago). Is it normal?

Thanks in advance 

The OD will just run and run until the bank realise your not using the account and will eventually close it, that could take a while, why not write to them and tell them your intentions, ask them to default you, explain your entering debt management, can`t hurt can it.

Thank you. 

I'll send them a letter.

For whatever reason I thought overdrafts don't default at all, and was sure that the Lloyds CC is the last debt I need a default on...

Both overdraft and CC are with LLoyds.

Hopefully they will agree to default these debts so I can finally start the DMP.

Thanks for very useful advices to everyone 👍