DMP mutual support thread part 13 !!

R.j.Belcher

MrsLD said:

.Barclaycard (c£900) are taking a very different approach. When I log in, I can see that they aren't actually applying interest or fees, but they are  writing, texting and emailing me to warn about them, and they are certainly reporting to the CRAs that I am 'missing' payments. They are also the only ones who have formally notified me my card is not to be used (not that I have any intention of using any and chopped them all up before I contacted PayPlan about the DMP) and who have sent me a Notice of Arrears, which makes me think they are going to default me soon. I am happier for a default to happen asap if it is going to happen at all- but why is their approach so different? Is it because as the lender to whom I owe least, they are getting by far the smallest slice of the pie?

Hi I am over a year into my DMP and had 2 loans and a CC with Barclays, by far my biggest creditor with about £20k. They quickly sold my debt on to PRA after a couple of months of letters. You need to be defaulted for the good of your credit score in later years. This week I finally got the last of my CC's to default me and have said they will be selling my debt on. You will probably find Barclaycard sell on your debt shortly.
Rob

cactuswhale

We've been in a DMP now for over 4 years with the last default about 3.5 years ago. No missed payments since and no missed mortgage payments ever. We are trying to move house and currently have our own property as sale agreed. Early indications are showing it can be very difficult to get a competitive mortgage rate whilst on a DMP. Can anyone recommend a good broker who are experts in this area? Our LTV is under 50% too, so hopefully there is someone out there who will approve us.

Incidentally, we tried to port our existing mortgage over, but it seems our current lender is going to reject it. It's somewhat frustrating because we are not borrowing more and could potentially borrow a bit less. We've never missed a mortgage payment with them for nearly 6 years. It just seems odd that if they reject it, we will be paying them the exact same amount monthly for the rest of the fixed term, so I don't get the logic.

FYI - We went through an initial, automated affordability check which declined but after speaking with them, they said that this is no longer required and would go to an underwriter instead after discussing with a mortgage adviser. It is regrettable that we are even on a DMP and we can more or less clear it entirely with some capital left over from the sale, but I'm guessing they won't take this into consideration. 

Appreciate any help. Thank you!

lisamarie85

It’s been a while since I’ve posted. I’ve been on my DMP for about 2.5 years now with PayPlan. PRA bought two of my debts, they’ve just sent me an offer for 30% off to settle but would only record “partially satisfied” 

I contacted them and asked them if they would change that to “fully satisfied” and they replied saying that is not something they are legally allowed to do? 

I’ve seen the template letters people send when they make an offer to the companies and fully satisfied is always one of the requests. Any advice on moving forward with this? I owe 4700, they’ve asked for 3400. But I’m currently paying £45 per month to PP so wondering whether it’s even worth settling because the £45 a month isn’t causing me any issues and obviously £3400 is a big chunk to find xx

Newmum92

Hi all,

I had a successful outcome of irresponsible lending through the FOS, which meant an overdraft of £5000 has gone down to £500. They had to wipe any information from my credit profile. My question is, other than chasing for the remaining £500 can they do anything - can they obtain a CCJ? I am guessing they can’t default it as they had to remove the account from my credit file so it shows as closed with a £0 balance. 

Thanks 😊 

sourcrates

Newmum92 said:

Hi all,

I had a successful outcome of irresponsible lending through the FOS, which meant an overdraft of £5000 has gone down to £500. They had to wipe any information from my credit profile. My question is, other than chasing for the remaining £500 can they do anything - can they obtain a CCJ? I am guessing they can’t default it as they had to remove the account from my credit file so it shows as closed with a £0 balance. 

Thanks 😊 

Banks don`t take court action, hopefully its the last you will hear of it, if they do sell on the £500 debt, then some debt purchasing company will likely buy it.

It all depends on the circumstances, why did it leave a £500 balance, why not wipe out the lot ?

watermelonx

Hi all. Me again. I’ve had letters and an update on my credit file that my loan account with natwest is in arrears. I’m on a DMP with stepchange and on there it says the debt is with moorcroft now. Is it normal to receive correspondence from natwest still? And how can I be in arrears if stepchange are dealing with payments? 

Sorry if I’ve missed something simple here. 

funny_bunny

@Newmum92 well done...  

Did you provide medical evidence for MH when you complained to your bank and then to FOS?

sourcrates

watermelonx said:

Hi all. Me again. I’ve had letters and an update on my credit file that my loan account with natwest is in arrears. I’m on a DMP with stepchange and on there it says the debt is with moorcroft now. Is it normal to receive correspondence from natwest still? And how can I be in arrears if stepchange are dealing with payments? 

Sorry if I’ve missed something simple here. 

When you take out a loan/credit card etc, you enter into a contract with that lender.

Your contacted payments are recorded on your credit file, you are in debt management, so are now in arrears with your contractual payments, so the bank, who still own your debt, has a duty under sec 77A Consumer Credit Act to provide you with statements informing you of this.

Moorcroft are just managing your account, and It makes no difference if DMP payments are on time, or not, as they are not recorded on credit files.

They are an informal arrangement, not covered by the Consumer Credit Act.

Once your account defaults, the relationship between debtor and lender is over, and no more statements or credit file reporting will take place, the account will stay defaulted for 6 years regardless of what you do, until then, you will continue getting statements, and having missed payments recorded.

lisamarie85

Sourcrates you always offer such fabulous (sensible!) advice, could you look at my post on the last page and see if you can help? I wonder if it’s been missed as nobody has replied to me. Thank you 

happytimesahead

Hi everyone, 

I have reading up on DMPs, and these pages have proved very helpful - so thank you! 

I understand now it’s usually best to wait for creditors to default before starting a DMP. 

I have 11 different creditors. I’m guessing, they’re not all going to default at the same time.. so what should be my plan of action when some have defaulted, but I’m waiting for others to do the same? 

My plan is to start a DMP with SC when the defaults all come in, but I’m not sure what to do in the ‘in between time’ whilst still waiting for defaults from others? 

When the defaults start coming, do I start making payments to those creditors in a self-managed DMP kind of way? 

I’ve just cancelled all DDs and changed banks this month, now waiting to start missing payments & build EF so just at the early stages but I’m unclear what I need to do when I only have some of the defaults (understand it can take a while for some creditors to finally do this!) as assuming continuing to ignore once the default has happened could lead to potential issues? Do I write to them once defaulted to say I’m waiting for other creditors to do the same, and only then will the DMP be in place, or start payments on the defaulted accounts only?

thanks for any help!