DMP mutual support thread part 13 !!

sourcrates

cheeseball73 said:

Sorry, should have said - the DMP was started in 2016 so the accounts have been sold on and passed around a fair bit since then - I'm hoping a few of the debts will end up unenforceable just to give me a little more chance of making a good offer. 

One is with PRA Group, one with Link Financial, and the other four with Link Financial but for some reason managed by Westcot even though I can log into Link and see the details on their customer portal. 

Once a debt defaults, no further interest or charges can be added, ever, no matter how many times the debt is sold, or passed around collectors, they cannot add interest to consumer credit act debts unless the original agreement allows them to do so.

Its common for companies such as link, to buy debts, but have them managed by a 3rd party, in your case Wescott.

If a creditor cannot provide the correct legal paperwork for a debt, it means that they cannot take you to court to force you to pay, they can still ask you to pay, and still report to your credit file (if they are already doing so).

How this affects settlement offers varies by company, you may have trouble with PRA Group, as they are not very flexible when it comes to settlement offers I`m afraid, the rest may be more approachable, however don`t expect them to just bend over if they can`t produce compliant paperwork, some will hold out for almost full settlement or nothing, lack of compliant paperwork can help you in some cases, but not every case.

The majority of those who have unenforceable accounts simply ignore them till they go statute barred and don`t pay anything, if your unwilling to remove unenforceable accounts from your DMP (should you have any) without settling the debt in full, or partially, then you would be spending your money unnecessarily.

aquafish_2

Afternoon folks, hope we're all well.  I'm a year into my self managed DMP and it's the best thing i've ever done. 

I've had a letter today from Barclaycard saying its time for a review.  Do I just send my previous expenditure to them or will they actually want an up to date version?

sourcrates

Just tell them nothing has changed aquafish_2.

aquafish_2

sourcrates said:

Just tell them nothing has changed aquafish_2.

Thank you mate, appreciate the help.

cheeseball73

sourcrates said:

cheeseball73 said:

Sorry, should have said - the DMP was started in 2016 so the accounts have been sold on and passed around a fair bit since then - I'm hoping a few of the debts will end up unenforceable just to give me a little more chance of making a good offer. 

One is with PRA Group, one with Link Financial, and the other four with Link Financial but for some reason managed by Westcot even though I can log into Link and see the details on their customer portal. 

Once a debt defaults, no further interest or charges can be added, ever, no matter how many times the debt is sold, or passed around collectors, they cannot add interest to consumer credit act debts unless the original agreement allows them to do so.

Its common for companies such as link, to buy debts, but have them managed by a 3rd party, in your case Wescott.

If a creditor cannot provide the correct legal paperwork for a debt, it means that they cannot take you to court to force you to pay, they can still ask you to pay, and still report to your credit file (if they are already doing so).

How this affects settlement offers varies by company, you may have trouble with PRA Group, as they are not very flexible when it comes to settlement offers I`m afraid, the rest may be more approachable, however don`t expect them to just bend over if they can`t produce compliant paperwork, some will hold out for almost full settlement or nothing, lack of compliant paperwork can help you in some cases, but not every case.

The majority of those who have unenforceable accounts simply ignore them till they go statute barred and don`t pay anything, if your unwilling to remove unenforceable accounts from your DMP (should you have any) without settling the debt in full, or partially, then you would be spending your money unnecessarily.

Thanks sourcrates - how should I proceed with Stepchange, then - should I just remove the account from my DMP once they've confirmed it's unenforceable? I think I can do this by setting the balance to 0 on my online DMP, so no payment goes to them, but I'll make sure. And in the meantime keep making payments whilst I wait for them to come back to me? I have a first reply letter from PRA Group from 29/05 saying they are requesting the information and 'until this is resolved, I have placed your account on hold which will cease any further collections activity until further notice' - from this I assume they won't take the payment? 

Ktaylor86

Now 3 months into our DMP via Stepchange... 
Paying almost £500 a month. 

Feeling quite depressed at it all! Dread the post everyday as it often another arrears or default notice or debt passed to a CRA. Whilst defaults etc are expected I have so much anxiety for a CCJ. 
Just received 2 default notices for loans from Zopa and have a third with them too! 

Reading the forum, it seems I should have built an emergency fund first, wished I looked at this before entering into the DMP. 

We are slightly better off than our original budget calculation, with less childcare cost than 3 months ago, however we are still in a really difficult position. Costs of everything are going up substantially, we had a big unexpected car repair bill this month, now have zero money for 2 weeks. 

Husband and I are way overdue eye tests (pre covid was our last!) and he wears glasses and think he needs new ones, and we are struggling even to afford NHS dentist or prescription. 
My car is due MOT in August and dreading it! 

Both work full time, got into a pickle due to high living expenses including childcare, tried to get on top of it with consolidation loans but then ended up using credits cards etc again. But being in this position I feel so much guilt and shame. 

I am doing what I can to sell things, old clothes and stuff but feeling really stuck. 
I know our budget etc will be reviewed next year, I am worried in case they say we have to pay even more, childcare costs gone down but everything else went up massively and struggling to afford the most basic of things. 

Car and home insurance due July, quote came through and it doubled! Managed to get it a bit cheaper by shopping about and negotiating, but some providers I looked for a quote for didn't even allow monthly instalments, presumably because of my credit rating. 

Anyway I guess I feel very anxious and panicky about it all, and worried if I have made mistakes and now stuck. 

Floss

Ktaylor86 said:

Now 3 months into our DMP via Stepchange... 
Paying almost £500 a month. 

Feeling quite depressed at it all! Dread the post everyday as it often another arrears or default notice or debt passed to a CRA. Whilst defaults etc are expected I have so much anxiety for a CCJ. 
Just received 2 default notices for loans from Zopa and have a third with them too! 

Reading the forum, it seems I should have built an emergency fund first, wished I looked at this before entering into the DMP. 

We are slightly better off than our original budget calculation, with less childcare cost than 3 months ago, however we are still in a really difficult position. Costs of everything are going up substantially, we had a big unexpected car repair bill this month, now have zero money for 2 weeks. 

Husband and I are way overdue eye tests (pre covid was our last!) and he wears glasses and think he needs new ones, and we are struggling even to afford NHS dentist or prescription. 
My car is due MOT in August and dreading it! 

Both work full time, got into a pickle due to high living expenses including childcare, tried to get on top of it with consolidation loans but then ended up using credits cards etc again. But being in this position I feel so much guilt and shame. 

I am doing what I can to sell things, old clothes and stuff but feeling really stuck. 
I know our budget etc will be reviewed next year, I am worried in case they say we have to pay even more, childcare costs gone down but everything else went up massively and struggling to afford the most basic of things. 

Car and home insurance due July, quote came through and it doubled! Managed to get it a bit cheaper by shopping about and negotiating, but some providers I looked for a quote for didn't even allow monthly instalments, presumably because of my credit rating. 

Anyway I guess I feel very anxious and panicky about it all, and worried if I have made mistakes and now stuck. 

I would suggest that you look at your budget again, including a monthly amount for car repairs / insurance / MOT and dental/ glasses. It might be that paying £500 is more than you can actually afford - have you done your SOA? Why not start a new thread with that, and folk can try to help. It maybe that you will need to tell Stepchange that you have had unexpected car repairs and need to suspend your plan for 3 months - that £1400 will pay your repair bill, insurance & glasses, and the balance can be the start of your emergency fund 😉 

Also remember that a CCJ is very unlikely if you're in a DMP.

Ktaylor86

Floss said:

Ktaylor86 said:

Now 3 months into our DMP via Stepchange... 
Paying almost £500 a month. 

Feeling quite depressed at it all! Dread the post everyday as it often another arrears or default notice or debt passed to a CRA. Whilst defaults etc are expected I have so much anxiety for a CCJ. 
Just received 2 default notices for loans from Zopa and have a third with them too! 

Reading the forum, it seems I should have built an emergency fund first, wished I looked at this before entering into the DMP. 

We are slightly better off than our original budget calculation, with less childcare cost than 3 months ago, however we are still in a really difficult position. Costs of everything are going up substantially, we had a big unexpected car repair bill this month, now have zero money for 2 weeks. 

Husband and I are way overdue eye tests (pre covid was our last!) and he wears glasses and think he needs new ones, and we are struggling even to afford NHS dentist or prescription. 
My car is due MOT in August and dreading it! 

Both work full time, got into a pickle due to high living expenses including childcare, tried to get on top of it with consolidation loans but then ended up using credits cards etc again. But being in this position I feel so much guilt and shame. 

I am doing what I can to sell things, old clothes and stuff but feeling really stuck. 
I know our budget etc will be reviewed next year, I am worried in case they say we have to pay even more, childcare costs gone down but everything else went up massively and struggling to afford the most basic of things. 

Car and home insurance due July, quote came through and it doubled! Managed to get it a bit cheaper by shopping about and negotiating, but some providers I looked for a quote for didn't even allow monthly instalments, presumably because of my credit rating. 

Anyway I guess I feel very anxious and panicky about it all, and worried if I have made mistakes and now stuck. 

I would suggest that you look at your budget again, including a monthly amount for car repairs / insurance / MOT and dental/ glasses. It might be that paying £500 is more than you can actually afford - have you done your SOA? Why not start a new thread with that, and folk can try to help. It maybe that you will need to tell Stepchange that you have had unexpected car repairs and need to suspend your plan for 3 months - that £1400 will pay your repair bill, insurance & glasses, and the balance can be the start of your emergency fund 😉 

Also remember that a CCJ is very unlikely if you're in a DMP.

Thank you so much for your guidance and reassurance re CCJ. 
The idea of having a break in payments to deal with the car repairs and important medical stuff like eye tests plus build a fund up is very tempting to put us on a even keel. I have paid £230 for husband car repairs and we think it needs another £200-300 to be running correctly, hopefully my friend is going to do some of it for us though! 
Then my car is due August so that is another pending expense! Unfortunately we need our cars for commuting. 

I will look at the budget and post a new thread later, thanks very much :-) 

sourcrates

Ktaylor86 said:

Now 3 months into our DMP via Stepchange... 
Paying almost £500 a month. 

Feeling quite depressed at it all! Dread the post everyday as it often another arrears or default notice or debt passed to a CRA. Whilst defaults etc are expected I have so much anxiety for a CCJ. 
Just received 2 default notices for loans from Zopa and have a third with them too! 

Reading the forum, it seems I should have built an emergency fund first, wished I looked at this before entering into the DMP. 

We are slightly better off than our original budget calculation, with less childcare cost than 3 months ago, however we are still in a really difficult position. Costs of everything are going up substantially, we had a big unexpected car repair bill this month, now have zero money for 2 weeks. 

Husband and I are way overdue eye tests (pre covid was our last!) and he wears glasses and think he needs new ones, and we are struggling even to afford NHS dentist or prescription. 
My car is due MOT in August and dreading it! 

Both work full time, got into a pickle due to high living expenses including childcare, tried to get on top of it with consolidation loans but then ended up using credits cards etc again. But being in this position I feel so much guilt and shame. 

I am doing what I can to sell things, old clothes and stuff but feeling really stuck. 
I know our budget etc will be reviewed next year, I am worried in case they say we have to pay even more, childcare costs gone down but everything else went up massively and struggling to afford the most basic of things. 

Car and home insurance due July, quote came through and it doubled! Managed to get it a bit cheaper by shopping about and negotiating, but some providers I looked for a quote for didn't even allow monthly instalments, presumably because of my credit rating. 

Anyway I guess I feel very anxious and panicky about it all, and worried if I have made mistakes and now stuck. 

The whole principle of debt management is for you to be able to live a normal life, whilst repaying your non priority debt, at an affordable rate, over a longer period of time, using your disposable income.

Situations change, circumstances change, a DMP is an informal arrangement, which you can change as your situation changes, so if things are not working out, then you need to take action to make it work in your favour.

From what you have told us, you should immediately cancel the payment to stepchange, inform them you are struggling with your budget, as it favours the creditors far too much, and you will be taking a 6 month hiatus from the plan.

You then write and inform your creditors about the action you intend to take and why.

Then you get your eye tests/glasses/food in the cupboard whatever it may be, and you start saving an emergency fund also.

Once you are ready to resume, you either go back to stepchange, or do it yourself, or pick another free provider such as payplan, and start your DMP over again, this time correctly budgeted for.

Affordability is paramount to creditors and debtors alike these days, your creditors will be fine with a six month wait, there will not be any mention of legal action, there will not be continuous calls and letters, as long as you inform them of your intentions.

I would suggest you do this as soon as possible as only you can change your situation for the better.

Ktaylor86

sourcrates said:

Ktaylor86 said:

Now 3 months into our DMP via Stepchange... 
Paying almost £500 a month. 

Feeling quite depressed at it all! Dread the post everyday as it often another arrears or default notice or debt passed to a CRA. Whilst defaults etc are expected I have so much anxiety for a CCJ. 
Just received 2 default notices for loans from Zopa and have a third with them too! 

Reading the forum, it seems I should have built an emergency fund first, wished I looked at this before entering into the DMP. 

We are slightly better off than our original budget calculation, with less childcare cost than 3 months ago, however we are still in a really difficult position. Costs of everything are going up substantially, we had a big unexpected car repair bill this month, now have zero money for 2 weeks. 

Husband and I are way overdue eye tests (pre covid was our last!) and he wears glasses and think he needs new ones, and we are struggling even to afford NHS dentist or prescription. 
My car is due MOT in August and dreading it! 

Both work full time, got into a pickle due to high living expenses including childcare, tried to get on top of it with consolidation loans but then ended up using credits cards etc again. But being in this position I feel so much guilt and shame. 

I am doing what I can to sell things, old clothes and stuff but feeling really stuck. 
I know our budget etc will be reviewed next year, I am worried in case they say we have to pay even more, childcare costs gone down but everything else went up massively and struggling to afford the most basic of things. 

Car and home insurance due July, quote came through and it doubled! Managed to get it a bit cheaper by shopping about and negotiating, but some providers I looked for a quote for didn't even allow monthly instalments, presumably because of my credit rating. 

Anyway I guess I feel very anxious and panicky about it all, and worried if I have made mistakes and now stuck. 

The whole principle of debt management is for you to be able to live a normal life, whilst repaying your non priority debt, at an affordable rate, over a longer period of time, using your disposable income.

Situations change, circumstances change, a DMP is an informal arrangement, which you can change as your situation changes, so if things are not working out, then you need to take action to make it work in your favour.

From what you have told us, you should immediately cancel the payment to stepchange, inform them you are struggling with your budget, as it favours the creditors far too much, and you will be taking a 6 month hiatus from the plan.

You then write and inform your creditors about the action you intend to take and why.

Then you get your eye tests/glasses/food in the cupboard whatever it may be, and you start saving an emergency fund also.

Once you are ready to resume, you either go back to stepchange, or do it yourself, or pick another free provider such as payplan, and start your DMP over again, this time correctly budgeted for.

Affordability is paramount to creditors and debtors alike these days, your creditors will be fine with a six month wait, there will not be any mention of legal action, there will not be continuous calls and letters, as long as you inform them of your intentions.

I would suggest you do this as soon as possible as only you can change your situation for the better.

Thank you so much, that is so reassuring. 
I guess I am worried they will say my budget is within normal limits and that's that. 

But I will try and speak to Stepchange as I have reviewed the budget they set and added what has gone up and more realistic amounts for some items like food shopping, car repairs etc and end up worse off by £200 a month, no wonder we are struggling really.