DMP mutual support thread part 13 !!

Lady4806

sourcrates said:

Lady4806 said:

sourcrates said:

Debtbegone2022 said:

Hi All

I have received my first default from my Tesco credit card and this is showing on my credit file.

Today I received a letter from Moorcroft advising they are acting as the collecting agents and will be dealing with the account.

Please can I check it is now at this point I can log on to Moorcroft’s website using my reference number and set up a repayment plan? At this point in time I will only be paying £1 a month to each creditor once they default as I am still trying to build up a sufficient EF and deal with the increase in the cost of living.

Thank you

Yep, your all good to go.

This is a text book example of how it should be, Unfortunatly not all creditors play fair with you.

I have a question related to this point in time to what has been asked above. Maybe i got the wrong end of stick, so apologies in advance, but I thought that the best time to arrange payments for DMP are when the debts are with the debt purchasing company and not the debt collectors? 

The account has defaulted so it makes no difference really who owns it, it won`t accrue any more interest or charges, so they may as well get the ball rolling.

Ah i see - thanks. So in that respect if no default has been applied and you still get contacted by debt collectors (working on behalf of creditor), then it is to ignore completely (as not defaulted). 

In the case of it going to a debt purchasing company i am assuming it will most certainly have had the debt defaulted so you set up payment plans etc. 

sourcrates

Lady4806 said:

sourcrates said:

Lady4806 said:

sourcrates said:

Debtbegone2022 said:

Hi All

I have received my first default from my Tesco credit card and this is showing on my credit file.

Today I received a letter from Moorcroft advising they are acting as the collecting agents and will be dealing with the account.

Please can I check it is now at this point I can log on to Moorcroft’s website using my reference number and set up a repayment plan? At this point in time I will only be paying £1 a month to each creditor once they default as I am still trying to build up a sufficient EF and deal with the increase in the cost of living.

Thank you

Yep, your all good to go.

This is a text book example of how it should be, Unfortunatly not all creditors play fair with you.

I have a question related to this point in time to what has been asked above. Maybe i got the wrong end of stick, so apologies in advance, but I thought that the best time to arrange payments for DMP are when the debts are with the debt purchasing company and not the debt collectors? 

The account has defaulted so it makes no difference really who owns it, it won`t accrue any more interest or charges, so they may as well get the ball rolling.

Ah i see - thanks. So in that respect if no default has been applied and you still get contacted by debt collectors (working on behalf of creditor), then it is to ignore completely (as not defaulted). 

In the case of it going to a debt purchasing company i am assuming it will most certainly have had the debt defaulted so you set up payment plans etc. 

Well normally I would say yes, but we are increasingly seeing non defaulted accounts being sold on, technically that is not supposed to happen, but apparently its not against any rules for them to do so.

They just refer you to the standard clause in the terms and conditions wear by they can sell their rights to a 3rd party at any time with notice in writing.

This can cause issues for those wanting defaults, and waiting to start there DMP`s, so it can be a bit of a minefield for some people.

Debtbegone2022

sourcrates said:

Debtbegone2022 said:

Hi All

I have received my first default from my Tesco credit card and this is showing on my credit file.

Today I received a letter from Moorcroft advising they are acting as the collecting agents and will be dealing with the account.

Please can I check it is now at this point I can log on to Moorcroft’s website using my reference number and set up a repayment plan? At this point in time I will only be paying £1 a month to each creditor once they default as I am still trying to build up a sufficient EF and deal with the increase in the cost of living.

Thank you

Yep, your all good to go.

This is a text book example of how it should be, Unfortunatly not all creditors play fair with you.

Thanks Sourcrates! Now to get my I&E filled in on their website  

Jenjen_82

Hello!
I have just applied for a DMP through stepchange. 

I have no experience with these so i just wanted an idea of roughly how long it takes?  My debtors are

Next directory
M&S Bank
Very
Newday (AO)
Lloyds bank (overdraft) 

Thanks

sourcrates

Jenjen_82 said:

Hello!
I have just applied for a DMP through stepchange. 

I have no experience with these so i just wanted an idea of roughly how long it takes?  My debtors are

Next directory
M&S Bank
Very
Newday (AO)
Lloyds bank (overdraft) 

Thanks

Hi 

Its a good idea to have a read through this thread, very long I know, but the advise contained within it will help you get through your DMP smoothly, and avoid schoolboy/girl errors.

For starters, before you even consider starting payments, all your accounts should be defaulted (if possible) and a sizable emergency fund should have been saved.

Looking at your list of creditors, you are the debtor by the way, none of your accounts look like they have been sold on as yet, how far behind in contractual payments are you currently ?

Its not 100% necessary to get all accounts defaulted, but it does have the benefit of stopping all interest and charges from being added, otherwise your going to have to rely on creditor goodwill, and your credit file will take longer to heal in the long run.

Olivia42

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

This happened to me as well recently with MBNA! Very strange, my OH and I had six cards between us which had all been sold to PRA 2 years ago, and one of them was randomly transferred back to MBNA and written off as above. No idea why, as the other 5 are continuing as normal. But it’s £2.5k less to pay which is great. 

Tamar7

Hi, I've been on a DMP for a year now. its slowly tackling my debt, was around 19k now at 11k.. 

I've struggled, as always, its when you have no wiggle room in your finances that the cat tries to die or your car needs work etc so although I've made every payment, I've had to dip back into the acount's the DMP is paying off a few times. 

I've just had my review and although I did make it clear I was struggling, they've only reduced my monthly payments by £50...increasing the length of time on it,  and now my credit rating has caught up and started to drop consistently down.. I knew it would... but it still pains me to see it happen. I'm 42, single  and always wanted to buy a house one day... but that's apparently not going to happen. 

I'm really going through a downer on this whole situation. Rent, debt payment and my car take up 2 3rds of my wage at the moment... thats after tax, my two student loans(under and post grad), pension and NI have deducted £1500 from it...  

I commute a long way for work and during COVID they cancelled the only train from my village to work,  so when my car finance was up, I thought i'd cut my fuel cost with an electric option... at less than £10 a charge.. it has meant I'm only paying £187 in parking a month (also where I work introduced a congestion charge, so that was a bonus) but still £187.... And only if i get a charging space, otherwise its parking and finding a charge station and an extra hour before getting home... Its barely impacted my home electricity, and at under £300 a month its cheaper than some electric cars.. (I also did that before the DMP, so credit wasn't a problem then)

Do any others on DMP's hit a slump where they feel like life is going on without them. 

Sensibly I haven't booked any holidays, I don't go out (hence single) I run out of any spare money after the first two weeks of a month, so mostly just sat trying not to leak any money I have to keep any money I have for parking at work, so daren't spend. 

Most of my clothes are falling apart and any new things I have are from birthday or I did a favour for my housemate scenario. 

Sometimes it honestly feels like life is just going on without me?

Anyway, I'm off to figure out if I have enough ingredients to make some cakes for an event at work as I can't afford to buy them. 

Norfolk_Jim

I built up a small pension fund with Equitable life when I was younger and I've been thinking about using it to make some F&F offers as my DMP has so long left to run, maybe the creditors will settle for 20-30%? I was thinking of using the National Debt Helpline template which all looks very straightforward but it has a line in it about timescales. I dont really want to take the money out first and take the tax hit unless they accept my offer, so here is the question...

Do I tell the creditors that Im unsure of the timescale for making the payment as it would be drawn from my pension? Is it to my disadvantage to admit to having a pension pot at all?

I just feel I have to see some sort of progress on being free of these debts as it impacts my mental health to have it stretching out for years ahead, any kind of positive progress would help

Debtbegone2022

Hi

I have a couple of questions;

1. I have two accounts one with Creation and one with Drafty, I have had letters from both saying they will be defaulting me. I have also received communication from dcas concerning these accounts. Am I correct in thinking that I do not communicate with the dcas until I see the defaults on my credit report? Can I tell the dcas I am waiting for confirmation of the defaults before starting a payment plan?

2. The drafty account above is considered a pdl, I am going to put in a affordability complaint. Should I wait to do this until I see the default on my credit file or does this not matter? 

Thanks

sourcrates

Debtbegone2022 said:

Hi

I have a couple of questions;

1. I have two accounts one with Creation and one with Drafty, I have had letters from both saying they will be defaulting me. I have also received communication from dcas concerning these accounts. Am I correct in thinking that I do not communicate with the dcas until I see the defaults on my credit report? Can I tell the dcas I am waiting for confirmation of the defaults before starting a payment plan?

2. The drafty account above is considered a pdl, I am going to put in a affordability complaint. Should I wait to do this until I see the default on my credit file or does this not matter? 

Thanks

Wait till physical defaults appear on your credit file before starting your payment plan.

You don`t need to explain yourself, it will be a waste of time.

You can submit a complaint at any time, but be warned, if Drafty goes the same way as other lenders have done, you won`t get much back.