DMP mutual support thread part 13 !!

Newmum92

Hi everyone 

I started my DMP journey a few months ago and am still in the process of waiting for defaults. 

I switched bank accounts and did the switch service to get £150. But I did manually change all income to go to my new account and manually cancelled some important ditect debits just in case. Barclays contacted me to say my overdraft balance would remain but that the switch had taken place and all payments would be directed automatically. 

This has all been going fine but recently I saw a £60 payment had gone into my barclays but it hasn’t been redirected. The issue is my account isn’t showing on online banking anymore due to the switch and on the chat function they are saying they can’t tell me what the payment was for and that I need to check my statements. Well my statements don’t say either. 

Is there a way I can ensure this doesn’t happen again? I’m guessing they have decided to keep it due to the right to offset.

Hols2021

Hi,

I have received a verification letter from Arvato....it says they are looking for me at the address registered beacuse i haven't contacted them. I have asked on here previously about them, there is still no default registered on my credit file and i haven't received a copy in the post either. The creditor send letters saying they have issued it then at the bottom of the letter it says if i dont contact thm they will issue it, Its quite confusing but i want to make sure i'm still doing the right thing and that they are just trying to collect the money for the creditor and get me to set up a plan with them and if i don't it will go back to the creditor who should then default me and that is when the debt is sold and i arrange a payment plan then? i think we are around 4/5 months without making payments but still no defaults for any of our accounts, i understand it can be quite a slow process though.

April22

Hi Everyone

I thought I would post an update since beginning a DMP at the start of April. 

My creditors were Nationwide, AMEX, Virgin, Shawbrook, Tesco and MBNA. Total £100k

All of the creditors have been very understanding. All have cancelled interest, and all have accepted the plan. 

Amex cancelled my card and sent the debt to AIC within a day of me telling them I was going to start a DMP - at a stage where I hadn’t actually missed any payments 😵‍💫

Shawbrook had an issue where for 2 months despite being sent the paperwork from Stepchange on 5 occasions they kept saying they had received nothing.

Both of these things are now running smoothly as Shawbrook received the papers eventually and Amex gave my debt to AIC who were AMAZING to
me on the phone and so efficient and kind. 

Despite these two issues I have found Tesco, MBNA, Virgin, and Nationwide to be incredibly supportive and helpful. 

Although Stepchange obviously correspond for you, I spent a long time calling all of my creditors on a couple of occasions at the start of the plan to explain I was entering into a DMP, and again to check they had received what they needed, Tesco actually set up the plan while I was on the phone to them straight away no questions, and I genuinely think this open correspondence with all
of my creditors helped the situation. 

Tesco defaulted me almost immediately, I’m not sure if AMEX ever actually defaulted the account, more defaults I’m sure will follow. 

With cost of living going up I may need to review my budget - but for now I’m sticking to the agreed payments so that the creditors can see I’m committed to tackling the problem,

I wanted to post this so that anyone who was feeling like me at the start of the plan - worried and frightened - can see that it’s actually been a wonderful and smooth process and I’ve been treated fairly and kindly. 

Today - despite having only made 2 payments - I can start to see a dent in the debts that previously I never saw due to interest - it was actually a lovely feeling - only a small win - but a win none the less.

I want to say thank you Sour Crate for explaining the process so well to everyone. I would have been petrified by some of the letters I’ve received, but both you and my creditors have explained that actually these are standard generated letters and there is absolutely nothing to worry about. 

I do have one question - in a couple of years my fixed rate ends on my mortgage - my DMP is a 9 year plan so my credit file will still be ruined. Accepted that getting a remortgage from another lender is unlikely. But if I stick with Nationwide who I’m with now, and apply for a new product, is that classed as a remortgage or just a product switch? And if they say no for whatever reason is it just the case that I would carry on on standard rates? I mean I wouldn’t lose my mortgage would I - the fact I have a 20 year mortgage now means I can just stick with what I have? Sorry if this sounds like a dumb question  

April 

sourcrates

April22,

This is one reason why its so important, especially if your a mortgage payer, to get defaults registered early.

Defaults show for 6 years, after which the whole financial entry will drop off your file, even if you still owe money on it.

Yes the balance is still collectable, but won`t show anywhere, re-mortgages with the same lender do not normally require a credit check.

crm23

sourcrates said:

April22,

This is one reason why its so important, especially if your a mortgage payer, to get defaults registered early.

Defaults show for 6 years, after which the whole financial entry will drop off your file, even if you still owe money on it.

Yes the balance is still collectable, but won`t show anywhere, re-mortgages with the same lender do not normally require a credit check.

Sorry to hijack the question but this is relevant to my situation too. Our DMP will run long past our fixed rate end date, however defaults should drop off about a year after. Are we better off going on standard variable for a year or so to then potentially get a better deal elsewhere once the credit file has improved? Do lenders ask if you’re on a DMP and would that affect anything even after the 6 years is up? Thanks 

Desperadoo

Question about one debt

I have contacted Moorcroft ref changing my DMP from PP to self managed.  Only company who have not replied after 2 weeks.

Today recieved email statement from Argos ( who originally owned debt )  showing next payment due.  

My question is should I be dealing with Moorcroft or Argos ? 

April22

crm23 said:

sourcrates said:

April22,

This is one reason why its so important, especially if your a mortgage payer, to get defaults registered early.

Defaults show for 6 years, after which the whole financial entry will drop off your file, even if you still owe money on it.

Yes the balance is still collectable, but won`t show anywhere, re-mortgages with the same lender do not normally require a credit check.

Sorry to hijack the question but this is relevant to my situation too. Our DMP will run long past our fixed rate end date, however defaults should drop off about a year after. Are we better off going on standard variable for a year or so to then potentially get a better deal elsewhere once the credit file has improved? Do lenders ask if you’re on a DMP and would that affect anything even after the 6 years is up? Thanks 

Thank you - so if I stick with Nationwide I will be ok switching products - and if for any reason they say no I can just transport onto standard then? 

Sorry I feel so stupid asking this question, I was worried if they said no to a remortgage they might take my existing one away but it doesn’t sound like that’s the case then…
I’m such a worrier 😊

jwil

I'm with Barclays and was in the middle of a DMP with several defaults on my report.  I just went online and chose a new deal for my mortgage out of a selection they had on the site.  No questions asked, I didn't speak to anyone, and it went through straight away.  I think as long as you don't want to change anything, i.e. borrow more or change the term, then a credit check isn't done.

sourcrates

Desperadoo said:

Question about one debt

I have contacted Moorcroft ref changing my DMP from PP to self managed.  Only company who have not replied after 2 weeks.

Today recieved email statement from Argos ( who originally owned debt )  showing next payment due.  

My question is should I be dealing with Moorcroft or Argos ? 

If the debt was sold, you would have been notified in writing, were you ?

Desperadoo

If the debt was sold, you would have been notified in writing, were you ?

I'm afraid I don't know... since entering DMP s few years ago I pretty much ignored any letters as know things were being paid with payplan. I can see the debt being paid to Moorcroft and I can access it on their website and showingagainst Moorcroft on credit reference file. Will contact them again tomorrow to ask rhe questions. Thanks