DMP mutual support thread part 13 !!

quelfie831

You could always contact them..... I believe they have a form of a Financial Hardship team so you could arrange the payment plan etc with them... although it would be pointless if the interest hasn't stopped accruing

sourcrates

Hols2021 said:

Has anyone had any experience with Arvato? i had a look on their website and it says they can send collection agents to your home and take you to court if you dont co operate with them? I'm sure on previous posts here i have read that credit companies will engage with DCA to try and get their money back for them and if no luck its passed back to the credit companies who then sell the debt and issue a default.

I'm sorry for all the posts but i saw sourcrates reply above so i think i will wait until it defaults but then i've read the above on their website so it just worries me. I just want to be clear on the process as the letters i am getting say they have issued a default then at the bottom of the letter it says if i don't communicate they will issue a default, so if i set up a payment plan with them the interest won't have stopped, i read reviews of them also and they seem like the worst company to try and deal with and will hound you and harrass you, sorry but i am really starting to get into a panic as i am trying to do this all myself.

This from their website -

"About Arvato Financial Solutions

We are a leading supplier of outsourced Credit Management Services across the UK. Every year we manage millions of accounts on behalf of our clients and always aim to be regarded as a trusted business partner".

They are just managing your account, as I said above, forget legal action and the like, they will run through there standard range of template letters, they will likely try and call you, this may go on a few months, the account will then be returned to the original creditor, who may rinse and re-peat with another DCA or sell the account to a debt purchaser.

Try not to let your imagination run away with you here, your only at the very beginning of the collection process, debt collectors may threaten all kinds of things, although most are much easier to deal with these days than in the past, however there hands are tied in what they can actually do, they can write to you, they can call you, and that`s about the limit of there capabilities.

Legal action, if it happens at all, is nearly always much further down the line, after an account has been passed around DCA`s  a few times, and maybe sold on, one or twice, its companies such as Lowell/Cabot/PRA Group who purchase debts, that`s when you should take notice of what they are saying.

So just stay calm, keep your nerve, keep an eye on your post, watch your credit file, as soon as  you see that default on there, its all systems go, and if they don`t default you, write and tell them too do so.

bluebell_on_track

Good morning, just after a bit of help understanding how/ when things drop off credit rating. I finally have all accounts defaulted (except PayPal). The defaulted accounts have been sold to third parties. On my credit file, the payments to the third parties are showing up as a D. So for instance, where it used to say HSBC credit card it now says ‘name of debt agency’ and D’s next to each month. Is this correct? Many thanks for your help. AP x

sourcrates

bluebell_on_track said:

Good morning, just after a bit of help understanding how/ when things drop off credit rating. I finally have all accounts defaulted (except PayPal). The defaulted accounts have been sold to third parties. On my credit file, the payments to the third parties are showing up as a D. So for instance, where it used to say HSBC credit card it now says ‘name of debt agency’ and D’s next to each month. Is this correct? Many thanks for your help. AP x

"D" is for default, yes, the old entry should show the original default date, and a zero balance, the new entry should also show the original default date, and the outstanding balance.

Will stay that way for 6 years regardless of anything else that happens.

Lady4806

I have recently joined although been reading lots on this thread about DMP and posts from sourcrates and suseka97, all been very useful and composing for me. 

I have a specific question on my own circumstances. Basically i have around £40k unsecured debt on my credit cards built up over the years and my only income is as a Landlady where i have rental income from 3 unmortgaged small flats that enable me to pay my day to day expenses and up till now my credit card minimum repayments. However, its reached the stage where instances of unpaid rents, tenants trashing the property and increased living costs etc has meant i am unable to meet my credit card minimum repayments. i wanted to know whether i run the risk of my creditors securing the debts on my properties if i enter in a self-managed DMP or force me to sell? Possibly taking me to court to put a charging order on my rental properties? 

Appreciate any thoughts on this. Thanks in advance. 

MMPhi123

Ex_welsh_borrower said:

MMPhi123 said:

Ex_welsh_borrower said:

MMPhi123 said:

Ex_welsh_borrower said:

natlie said:

Hi,

I’m 2 years into DMP now and I had a from MBN* this week who had transferred my account to Westcott saying they’d made a mistake last year when they defaulted me as I had continued to make payments and that as a gesture of goodwill they have deleted the default and cleared my £4100 balance. Anyone heard of this before, I can’t believe it!!!!
thanks
Nat

The same thing happened to me in March, a 2.5k debt originally with Lloyds was sold to the PRA group then out of the blue I had a letter saying the same and they wrote it off. It's confused me as all my debts I have made payments on just not the contractual amount hence the defaults. Are all my defaults valid or is there grounds to challenge them?

StepChange told me that they had heard of a number of clients getting the same letters recently too.

Sorry to jump on this, but am I understanding that they cannot default you if you have continued to make payments? I was defaulted as soon as I moved my payments to PayPlanPlus, despite never missing a payment (I didn’t know at the time that you have to stop paying and wait for defaults). BarclayCard immediately defaulted me, am I understanding that they can’t/shouldn’t have done that and I can challenge this? Interestingly I’ve now gone self-managed and have been this way for a few months now - Im still waiting on BCard to tell me how to pay them, as they closed my online account, so I can’t pay, or even see the balance outstanding. They’ve defaulted according to my credit file, but haven’t sold the debt on.

This is really what I want to know, as I know I made payments to all my debts just whatever the amount SC had determined based on my SOA. I also never stopped payments and was defaulted by Next, Lloyds, Barclaycard and Tesco. HSBC have recently also said they intend to do so which I've made a complaint about because of the length of time involved.

All the four defaulted accounts I continued to make payments on but my understanding was that they are entitled to default the account should you not be making the contractual payments. My payments were under these amounts I know that so I was just confused as to why Lloyds have said they shouldn't have defaulted the account......certainly not going to argue with them but maybe I'm missing something

I've just written to BarclayCard as on further inspection it appears they defaulted me as soon as I entered an agreement with PayPlan. Prior to this I had not missed the minimum payment, which I understand I need to have done for at least 3 months before a default can be issued. They also issued their "notice of closure" letter which was dated one day after the date of the default on my credit report, then two months later I received a letter to confirm the actual closure. Even at this stage I wasn't 3 months behind on full payments...Will see what they come back with! 

That's interesting as Im certain Tesco defaulted me straight away too as I remember it being very quick as I entered the DMP with SC.

So I got a reply back from BarclayCard, alas no debt written off any any such good things like that like other people, but they are removing the default as they said I Maintained payments while on my plan with PayPlan, which I guess is a good thing for my future credit rating? They’ve said they will remove the default, and the account will return to contractual terms, and I’m not really sure what that means, so I’m going to write back and find out. I just want to pay off the debt and get it cleared. I look forward to my debt-free future with as little impact on the credit report as possible, so that we can one day get a mortgage. 

I know some people have gone down the route of having some debt written off due to mental health/disability issues, but I’m not sure if I’d be able to do it, as I’ve been making payments so far to them all and am now in an informal self managed DMP. Autism and ADHD was how I got into the debt in the first place, but equally I feel I need to own this mistake and repay what I owe? 

sourcrates

Lady4806 said:

I have recently joined although been reading lots on this thread about DMP and posts from sourcrates and suseka97, all been very useful and composing for me. 

I have a specific question on my own circumstances. Basically i have around £40k unsecured debt on my credit cards built up over the years and my only income is as a Landlady where i have rental income from 3 unmortgaged small flats that enable me to pay my day to day expenses and up till now my credit card minimum repayments. However, its reached the stage where instances of unpaid rents, tenants trashing the property and increased living costs etc has meant i am unable to meet my credit card minimum repayments. i wanted to know whether i run the risk of my creditors securing the debts on my properties if i enter in a self-managed DMP or force me to sell? Possibly taking me to court to put a charging order on my rental properties? 

Appreciate any thoughts on this. Thanks in advance. 

I am assuming your credit card accounts are all still up to date and with the original lenders, are you renting or do you have a mortgaged house you live in ?

Usually when you start debt management and keep making your regular payments, any court action is put firmly on the back boiler, creditors are quite happy to receive regular, affordable payments from you, there are many posters on this forum who have successfully completed debt management, who had 3 times the debt you have, and no further action was taken with them.

A creditor needs a CCJ in place, in order to be able to apply for a CO, now you can never say never, but as long as the DMP payments are being made, any further action won`t even be considered, so you should be quiet safe.

Orders for sale are now so rare, official figures are no longer kept.

If you wanted to avoid the possibility of this ever happening, maybe consider putting the flats in another name or joint names, that way you have much more protection from this being a threat in future.

Lady4806

sourcrates said:

Lady4806 said:

I have recently joined although been reading lots on this thread about DMP and posts from sourcrates and suseka97, all been very useful and composing for me. 

I have a specific question on my own circumstances. Basically i have around £40k unsecured debt on my credit cards built up over the years and my only income is as a Landlady where i have rental income from 3 unmortgaged small flats that enable me to pay my day to day expenses and up till now my credit card minimum repayments. However, its reached the stage where instances of unpaid rents, tenants trashing the property and increased living costs etc has meant i am unable to meet my credit card minimum repayments. i wanted to know whether i run the risk of my creditors securing the debts on my properties if i enter in a self-managed DMP or force me to sell? Possibly taking me to court to put a charging order on my rental properties? 

Appreciate any thoughts on this. Thanks in advance. 

I am assuming your credit card accounts are all still up to date and with the original lenders, are you renting or do you have a mortgaged house you live in ?

Usually when you start debt management and keep making your regular payments, any court action is put firmly on the back boiler, creditors are quite happy to receive regular, affordable payments from you, there are many posters on this forum who have successfully completed debt management, who had 3 times the debt you have, and no further action was taken with them.

A creditor needs a CCJ in place, in order to be able to apply for a CO, now you can never say never, but as long as the DMP payments are being made, any further action won`t even be considered, so you should be quiet safe.

Orders for sale are now so rare, official figures are no longer kept.

If you wanted to avoid the possibility of this ever happening, maybe consider putting the flats in another name or joint names, that way you have much more protection from this being a threat in future.

Thanks Sourcrates. Yeah all credit cards up to date and with original lenders. I am in process of cancelling DDs soon. 

I have a mortgaged house I’m living in which is in joint names. The rental flats are in my name only. But i was wondering for DMP do they actually ask for proof of income and considering I’m going to go to self managed i don’t really need to tell why my income is coming from? Or do creditors do Land Registry searches? 

I will most certainly pay something to my creditors for my DMP but it’s looking like it will be 12-15 years i will be debt free based on my income. Whether that will be acceptable but will be for me affordable rate to pay all my debts off. 

sourcrates

Lady4806 said:

sourcrates said:

Lady4806 said:

I have recently joined although been reading lots on this thread about DMP and posts from sourcrates and suseka97, all been very useful and composing for me. 

I have a specific question on my own circumstances. Basically i have around £40k unsecured debt on my credit cards built up over the years and my only income is as a Landlady where i have rental income from 3 unmortgaged small flats that enable me to pay my day to day expenses and up till now my credit card minimum repayments. However, its reached the stage where instances of unpaid rents, tenants trashing the property and increased living costs etc has meant i am unable to meet my credit card minimum repayments. i wanted to know whether i run the risk of my creditors securing the debts on my properties if i enter in a self-managed DMP or force me to sell? Possibly taking me to court to put a charging order on my rental properties? 

Appreciate any thoughts on this. Thanks in advance. 

I am assuming your credit card accounts are all still up to date and with the original lenders, are you renting or do you have a mortgaged house you live in ?

Usually when you start debt management and keep making your regular payments, any court action is put firmly on the back boiler, creditors are quite happy to receive regular, affordable payments from you, there are many posters on this forum who have successfully completed debt management, who had 3 times the debt you have, and no further action was taken with them.

A creditor needs a CCJ in place, in order to be able to apply for a CO, now you can never say never, but as long as the DMP payments are being made, any further action won`t even be considered, so you should be quiet safe.

Orders for sale are now so rare, official figures are no longer kept.

If you wanted to avoid the possibility of this ever happening, maybe consider putting the flats in another name or joint names, that way you have much more protection from this being a threat in future.

Thanks Sourcrates. Yeah all credit cards up to date and with original lenders. I am in process of cancelling DDs soon. 

I have a mortgaged house I’m living in which is in joint names. The rental flats are in my name only. But i was wondering for DMP do they actually ask for proof of income and considering I’m going to go to self managed i don’t really need to tell why my income is coming from? Or do creditors do Land Registry searches? 

I will most certainly pay something to my creditors for my DMP but it’s looking like it will be 12-15 years i will be debt free based on my income. Whether that will be acceptable but will be for me affordable rate to pay all my debts off. 

Land registry searches are more likely to happen much further down the line, after your debts have been sold on a few times or passed to various collectors, or you have not been paying them at all, at this point in time creditors are not going to dig very deeply into your circumstances.

If you were to go with stepchange or the like, some evidence of income would be required, its not compulsory, but they may not be able to help you without it, so self management may be the better option for you, as you retain control of all aspects of it.

Lady4806

sourcrates said:

Lady4806 said:

sourcrates said:

Lady4806 said:

I have recently joined although been reading lots on this thread about DMP and posts from sourcrates and suseka97, all been very useful and composing for me. 

I have a specific question on my own circumstances. Basically i have around £40k unsecured debt on my credit cards built up over the years and my only income is as a Landlady where i have rental income from 3 unmortgaged small flats that enable me to pay my day to day expenses and up till now my credit card minimum repayments. However, its reached the stage where instances of unpaid rents, tenants trashing the property and increased living costs etc has meant i am unable to meet my credit card minimum repayments. i wanted to know whether i run the risk of my creditors securing the debts on my properties if i enter in a self-managed DMP or force me to sell? Possibly taking me to court to put a charging order on my rental properties? 

Appreciate any thoughts on this. Thanks in advance. 

I am assuming your credit card accounts are all still up to date and with the original lenders, are you renting or do you have a mortgaged house you live in ?

Usually when you start debt management and keep making your regular payments, any court action is put firmly on the back boiler, creditors are quite happy to receive regular, affordable payments from you, there are many posters on this forum who have successfully completed debt management, who had 3 times the debt you have, and no further action was taken with them.

A creditor needs a CCJ in place, in order to be able to apply for a CO, now you can never say never, but as long as the DMP payments are being made, any further action won`t even be considered, so you should be quiet safe.

Orders for sale are now so rare, official figures are no longer kept.

If you wanted to avoid the possibility of this ever happening, maybe consider putting the flats in another name or joint names, that way you have much more protection from this being a threat in future.

Thanks Sourcrates. Yeah all credit cards up to date and with original lenders. I am in process of cancelling DDs soon. 

I have a mortgaged house I’m living in which is in joint names. The rental flats are in my name only. But i was wondering for DMP do they actually ask for proof of income and considering I’m going to go to self managed i don’t really need to tell why my income is coming from? Or do creditors do Land Registry searches? 

I will most certainly pay something to my creditors for my DMP but it’s looking like it will be 12-15 years i will be debt free based on my income. Whether that will be acceptable but will be for me affordable rate to pay all my debts off. 

Land registry searches are more likely to happen much further down the line, after your debts have been sold on a few times or passed to various collectors, or you have not been paying them at all, at this point in time creditors are not going to dig very deeply into your circumstances.

If you were to go with stepchange or the like, some evidence of income would be required, its not compulsory, but they may not be able to help you without it, so self management may be the better option for you, as you retain control of all aspects of it.

I will definitely go with self management route and i will be able to make the payments based on my affordability however long it may take. But atleast after the defaults come through i can start getting the debts down and as you say i think it will be nuisance/administration work for the creditors to go for CCJs or CO/forced sales on my rental properties when rather they will get a monthly payment trickling to them. Appreciate your clarification and pointers that is sometimes good to just pass through another set of eyes to advise upon. I will start to cancel the DDs now and start my route to self management DMP. If anything untoward happens that i haven’t already read about in this topic, i will probably come back for advice. Thanks