DMP mutual support thread part 13 !!

natlie

Zeus75 said:

Hi,

I am currently 2yrs into a DMP with Stepchange. One of my creditors, MBNA, has still not defaulted my account, which I have over £6K still to pay. This is due to me paying much more via my DMP than the minimum requirement needed from MBNA, which is just 1% of the balance.

During the last 2yrs MBNA have stopped any interest and charges but last week I received an email from them advising that they would start to charge interest & charges again. I queried this with Stepchange who agreed to send details of my DMP to them again in the hope that they would stop the interest.

Yesterday I received an email from SC advised that MBNA would be continuing to add interest and charges, despite the request to stop them. I understand that they have no obligation to stop interest charges etc. Email below:

MBNA Limited have contacted us about the payment we offered them through your plan.

They've told us that they will be continuing to add interest and charges to your account. If you want to know the interest rate and charges they're applying contact them directly.

We'll still carry on paying MBNA Limited and your plan will continue as normal.

MBNA Limited may pass your debt to a different company. To make sure that your plan stays on track you need to let us know if this happens so that we can send payments to the new company instead.

Any ideas of what I can do to stop the interest charges as this will increase my debt not reduce it. I asked SC if they would stop any payments to MBNA in attempt to default but they can't when still part of my DMP.

Any ideas/suggestion of what I can do ?

TIA
Zeus

I had an MBNA Account they wrote to me one day randomly and closed my account clearing over £4k of debt the original post will be in this thread 

Zeus75

sourcrates said:

Zeus75 said:

Thanks Sourcrates. 

I’ll look at going self managed. Not keen on dealing with MBNA though,  but I’ll have a go. 

Well, the thing is, you don`t have to "deal" with them, you simply make the payment of £1 or whatever, and just let them get on with things, they will likely sell the debt on as well as defaulting you.

You then include the new owner in whatever repayment schedule you have.

I've spoken with MBNA and after looking into my account (SOA etc) they have agreed to default my account in the next couple of months with no interest charges, which suits me.
Thanks again.

Hols2021

Hi, I wonder if anyone can help, I’ve asked this questions a few times now but no one has replied yet. My husband has a CC with Virgin which we have not paid since March, (we were waiting for it to default) we have had no letters, emails or anything from them and it has also disappeared from his CF. I know they can do this then reappear under the debt collection company, this has happened to some our cards and loans. Has anyone had any experience of this please? I think we will need to call them, this has been off his credit file for a few months and I thought it would have appeared back on his file by now. Looking for any advice please? 

Ex_welsh_borrower

Zeus75 said:

sourcrates said:

Zeus75 said:

Thanks Sourcrates. 

I’ll look at going self managed. Not keen on dealing with MBNA though,  but I’ll have a go. 

Well, the thing is, you don`t have to "deal" with them, you simply make the payment of £1 or whatever, and just let them get on with things, they will likely sell the debt on as well as defaulting you.

You then include the new owner in whatever repayment schedule you have.

I've spoken with MBNA and after looking into my account (SOA etc) they have agreed to default my account in the next couple of months with no interest charges, which suits me.
Thanks again.

I had pretty much the exact same issue with MBNA where my payments were over the minimum as long as no interest was added but below once they were added so I was in limbo for a default too. I ended up calling them and starting a compliant on the ground that once interest was added I would default anyway, and which was unfairly impacting on my credit rating for a longer period. They eventually agreed to default the account and backdated it to the original date I informed them of my finance issues. Debt was then sold onto Link Financial not long after.

sourcrates

Hols2021 said:

Hi, I wonder if anyone can help, I’ve asked this questions a few times now but no one has replied yet. My husband has a CC with Virgin which we have not paid since March, (we were waiting for it to default) we have had no letters, emails or anything from them and it has also disappeared from his CF. I know they can do this then reappear under the debt collection company, this has happened to some our cards and loans. Has anyone had any experience of this please? I think we will need to call them, this has been off his credit file for a few months and I thought it would have appeared back on his file by now. Looking for any advice please? 

Hi,
Well its anyone's guess isn`t it really, if the debt is sold, they will write to you.

I would not worry about it, if/when someone writes to you, you will know won`t you.

Calling them will be pointless, as account decisions are taken at a much higher level than call handler, they will only know what their screen tells them, I'd just leave it and wait and see what happens, it can`t hurt him, so why worry.

Parkyp

Can anyone offer advice. I entered a dmp with Stepchange September 2019. MBNA didn’t default account or arrangement to pay markers on my credit file. They stopped the interest. On February 2020 my statements said account closed. I recently did a budget review with Stepchange no changes made (still paying the same amount since 2019) MBNA have sent me a letter saying they are closing my account and will issue a default notice. I phoned them today and asked could the default date be backdated to 2019 when I first entered a DMP they said no it can only be from when they send the default.  

Has anyone managed to get this date changed.

Thanks 

natlie

natlie said:

Hi 

I have Payp*l on my DMP though ti was handed to a collection agent called M*orcroft the two have different amounts with around £600 difference on the balance for M*orcroft, I have messaged with no response and its very frustrating 

Also today PayP*l have added a £364 compensatory payment to my account any idea what this is for? 

Thanks
Nat 

Just as an update on this as received an email, Payp*l reviewed the way they treated some customers who were in financial difficulty in October and then issued a refund to anyone who had similar issues.   

Bowmonster

Hi everyone,
New here and need some advice/moral support. I have about £35k debt, my financial situation job wise etc plus cost of living has become a complete mess and I can't get anywhere near affording payments any more. REALLY don't want to enter into an IVA - they seem like horror stories every time I read about them. Looking to set up a DMP. But it would be extremely minimal payments at the mo and looking like forever to pay off. What do others pay per month and how long are your DMPs currently looking at running? I think I could only afford a max of about £100 per month at the mo. So depressing.

Norfolk_Jim

Bowmonster said:

Hi everyone,
New here and need some advice/moral support. I have about £35k debt, my financial situation job wise etc plus cost of living has become a complete mess and I can't get anywhere near affording payments any more. REALLY don't want to enter into an IVA - they seem like horror stories every time I read about them. Looking to set up a DMP. But it would be extremely minimal payments at the mo and looking like forever to pay off. What do others pay per month and how long are your DMPs currently looking at running? I think I could only afford a max of about £100 per month at the mo. So depressing.

I have a similar amount of debt as you and I pay £150pm which will need to come down at my next review. Debt Free date is 2040. I pay no attention to that as Im unlikely to live that long, Im nearly 60 and not in best of health. Anyway, I dont see why you could not have a DMP. Try Stepchange or look at making your own plan. Do you have anything creditors could take? A house for instance? If you don t there really isnt much they can do besides accept whatever you have left to give them. Even if you do, and I do, that doesnt really stop you having a DMP. I'm assuming your debts are unsecured debts.

Bowmonster

Norfolk_Jim said:

Bowmonster said:

Hi everyone,
New here and need some advice/moral support. I have about £35k debt, my financial situation job wise etc plus cost of living has become a complete mess and I can't get anywhere near affording payments any more. REALLY don't want to enter into an IVA - they seem like horror stories every time I read about them. Looking to set up a DMP. But it would be extremely minimal payments at the mo and looking like forever to pay off. What do others pay per month and how long are your DMPs currently looking at running? I think I could only afford a max of about £100 per month at the mo. So depressing.

I have a similar amount of debt as you and I pay £150pm which will need to come down at my next review. Debt Free date is 2040. I pay no attention to that as Im unlikely to live that long, Im nearly 60 and not in best of health. Anyway, I dont see why you could not have a DMP. Try Stepchange or look at making your own plan. Do you have anything creditors could take? A house for instance? If you don t there really isnt much they can do besides accept whatever you have left to give them. Even if you do, and I do, that doesnt really stop you having a DMP. I'm assuming your debts are unsecured debts.

Thanks for this. I have my house which is a joint mortgage with my partner, but all the debt is unsecured so that shouldn't be an issue. That's reassuring that yours is so long. I think I'll feel the same ...plod along with it and forget about it, not much else you can do!!!! I just need reassurance that it's possible to be in one forever!!!!