DMP mutual support thread part 13 !!

BigAnnieG

Hello!

I just thought I'd pop by to give some support to those in the early stages of a DMP. Don't lose hope!

The backstory: I set up a business then became too ill to work, and ran up a massive debt just living (rent, bills, nothing out of the ordinary).

I got so scared about debt that I didn't do anything about it. Until I took out a massive consolidation loan... but that couldn't even cover everything. (Natwest behaved badly here - sold me a loan knowing I was self-employed, etc, etc, but I gave up arguing with them a while ago).

I got a job but it was minimum wage and didn't even cover my full monthly payments let alone rent and incoming bills. I had a breakdown.

I filled out the paperwork to file for bankruptcy and was one day away from posting it to the court.

Before I sent it, I called Stepchange, who were incredible. I went on a token DMP, paying £1/month for a year, to catch myself up a bit. (I wanted to repay the debt I had built up, although bankruptcy was discussed as an option, as I had no assets at all).

I had £24k of debts to pay off, plus ongoing living expenses. I lived alone, in an expensive city, on a minimum wage job that meant I didn't qualify for benefits, despite monthly repayments meaning I had no money left over for the rent etc.

Roll forward two years.

I was blessed to receive an inheritance this month that was enough to cover my remaining outstanding debts. The day I called all of my creditors to pay in full had a lot of happy tears in it.

However

When I let Stepchange know that I'd closed it all down, they congratulated me and told me how much I'd managed to pay off on my own over a period of just under two years.

I'd paid over half of that debt myself: £12,988 to be precise. That includes several periods of unemployment due to redundancy and illness, and low paid jobs.

I'm now, officially, debt-free. My file will be marked for another six years, but the last couple of years have taught me a LOT about frugal living so I don't mind staying within my means and not applying for any credit at all.

If it helps anybody out there, I did manage to get an Aqua credit builder credit card about 18 months into the DMP. I did this purely to start building a credit record again, and paid in full every month. It also helped to manage some business expenses (I only used it for work expenses, showed Finance the statement every month, claimed it all back to pay off in full). I wouldn't recommend getting credit during a DMP unless this is your plan.

I had to change my DMP amounts from time to time depending on my job and living circumstances, and it was always easy and never did I feel pressure from creditors to pay any more than I could afford.

If I'm honest, I learned to fudge my figures a bit during reviews in order to pay MORE of the debt off each month than Stepchange would say was affordable, but again I wouldn't recommend that unless you really don't mind eating beans for a week straight

I know I have my Grandad to thank for the inheritance boost to speed up paying off the debt, but I also know that even if that hadn't happened then I would have eventually paid it off anyway.

So, really, I'm just reaching out to anybody starting or currently on the DMP journey to tell you: don't panic. It will be OK. You are more than your credit score. Keep going.

[Deleted User]

What a lovely uplifting post, BigAnnieG:T:j. Thank you for popping back to offer encouragement to others who may be fearing that the light at the end of their particular debt tunnel is very dim and far away. Your experience just goes to show what can be achieved.

I wish you a happy debt-free life:beer:

[Deleted User]

Just taking a bit of time out from my ecstatic cartwheels:rotfl: to do a quick post with my first successes:j


Had my first F&F accepted at what I considered a very good discount. Not going to mention creditors because I know January thinks banks and DCAs read these threads and I'm a bit paranoid:o. This was my biggest debt, still with the original creditor (although managed by a DCA) so I wasn't expecting such a good outcome. I decided to bite the bullet and do the negotiating on the phone after my initial written offer. I'm so glad I did as it was so quick and easy. I'm impatient and hate the slowness of a ping-pong letter situation:o


At the same time I mentioned the late default situation to them and they said I needed to discuss that directly with the original lender which I did. I was armed with 2 letters awarding me redress for interest and charges wrongly charged to me because they hadn't treated me and my financial difficulties fairly. The redress came as a result of them reviewing their systems not because I asked for it so I was chuffed:j


I had already written to get the default backdated but had no joy so I was delighted when the lovely lady I spoke to investigated it thoroughly there and then I was put on hold a few times but I didn't care how long it took if the result was likely to be favourable. And it was:j. Not only did she backdate the default to the start date of my DMP (even earlier than any of my other creditors) instead of over 3 years into it but she awarded me a further £660 in unfair interest and other charges:j. Sadly it could only be paid off the debt but I expressed my horror as I'd just negotiated a settlement based on the outstanding debt prior to this reduction:eek:. Put on hold again but was delighted to be told that the full amount would be deducted directly from the agreed settlement figure.


My maths isn't brilliant but I think I'm a winner there as the amount I'll be paying in settlement minus the full £660 works out less than if she'd deducted it from the balance and worked out the agreed settlement percentage based on that total. Anyway, whether it is or not, I'm euphoric. Just waiting now for the official confirmation letter with the usual 'no one will chase this debt in the future' type of promise and I'll get the money transferred.


Oh, and the cherry on the cake, she also gave me £100 by way of an apology and paid straight into my current account (which isn't with them). It transferred instantly and is now safely in my F&F pot ready for my next foray into the settlement world. Signing off now to do a few more cartwheels:rotfl:

January2015

Black_Monday wrote: »

My apologies in advance as this post is going to be a long one! I have been reading this forum for 6 long years and have taken so much excellent information from people who do not post anymore to the regulars who are now on the forum, however I think it's time I posted for some advice on my present situation.

A bit of background information, February 2012, set up a debt management plan with CCCS, now Stepchange, a lot of debt due to failure of a business set up with a friend, was borrowing money from credit cards to pay staff wages, then paying it back when local council paid up, this went on for years until Council awarded contract to another company in another part of the Country, our world collapsed but hey hey ho life goes on so enough of that.

All credit cards accepted my monthly payments through Stepchange and all was okay until I decided to ask for CCA's. Have managed a few full and finals along the way and several of the cards are unenforceable.

My problem at the moment is the dreaded PRA, I will start at the very beginning (it's a very good place to start, excuse the pun).
February 2012 original debt with MBNA for £14,500, debt is now £12883.00 which is when I stopped paying Stepchange.
March 2012MBNA agreed to reduced payments,
1st August 2012 received a default notice from MBNA
13th November 2012 letter from MBNA saying they had sold debt to AKTIV KAPITAL PORTFOLIO AS ZUG BRANCH
18th November letter from Activ Kapital (U.K.) Limited saying debt had been sold to ZUG branch.
During 2013 and 2014 letters from AKTIV Kapital offering settlements but not enough for me to take them up on the offer.

Nothing then until 9th October 2015 when I received a letter from PRA offering a settlement, I had never heard of PRA before that date, no correspondence from them at all.

In May 2017 after reading many posts on this forum and AAD forum I decided to leave Stepchange and ask for CCA's. I wrote to PRA for my CCA and received my post order back plus a letter saying that my account was currently deemed unenforceable.

On the 12th June 2017, I received another letter from PRA with an attached copy of an application form from the Bank of Scotland ( I do not know what that was about, the debts always been MBNA), however, they still deemed the account unenforceable.

On the 13th July 2018 a year later another lot of documents arrived from PRA, there was a reconstituted letter about financial difficulties and a reconstituted default notice plus a pile of old statements from 2011 to 2012. On the same day, I also received another letter from PRA dated 10th July saying account was still deemed unenforceable, strange they both arrived on the same day!

27/7/18, 31/8/18,18/10/18 more 10% discount letters.

After reading different senario's on both here and AAD I decided to send a SAR to MBNA so that I would know what information PRA held about me. A large pack of paperwork arrived on 9th October 2018, there was no copy of a default notice, nothing about the sale to AKTIV KAPITAL, therefore PRA did not have an original copy of the default notice or sales letter in the files.
There was however a customer information system log from 2006 to present date. Apparently PRA had started asking MBNA for relevant paperwork about me on the 3rd July 2018, PRA asked for a S78 request however, on the 10th July MBNA had told them they could not comply with the S78 request, the next log on the sheets was from me asking for a SAR. Log was then closed.

Best news so far, in with the SAR paperwork was a letter MBNA had written to PRA saying:
THANKYOU for your request with regards to the above customers account (me) under Section 78 of the Consumer Credit Act 1974. Unfortunately we are unable to comply with the request for information and would ask you to notify the customer accordingly (did they heck).

After reading this letter I thought, great this it it, no way will they ever get the documents they need to take legal action against me but, on the 12th November 2018 (hence my signature Black Monday) I have received a letter before claim which needs to be returned before the 7th of December 2018.

In their covering letter they state that; we do not presently envisage that Expert evidence will be needed in this claim, the letter should be treated as an invitation to refer this dispute to Mediation or some other form of ADR in order to avoid Court action. If I do not reply by the 7th of December they MAY issue court proceedings.

My dilemma is, do I tick box D (I dispute the debt) and tell them I have the letter to them from MBNA saying they cannot supply section S78 and hopefully stop them in their tracks or do I just say "the debt is in dispute due to non compliance with my CCA request in May 2017".

So sorry it's a follow on to War and Peace......hopefully I will get some replies from you good folk on the mutual support thread!!!

Thanks in advance

Black Monday x

When did you originally take the MBNA card out? That could make a huge difference.

January2015

carbootcrazy wrote: »

Just taking a bit of time out from my ecstatic cartwheels:rotfl: to do a quick post with my first successes:j


Had my first F&F accepted at what I considered a very good discount. Not going to mention creditors because I know January thinks banks and DCAs read these threads and I'm a bit paranoid:o. This was my biggest debt, still with the original creditor (although managed by a DCA) so I wasn't expecting such a good outcome. I decided to bite the bullet and do the negotiating on the phone after my initial written offer. I'm so glad I did as it was so quick and easy. I'm impatient and hate the slowness of a ping-pong letter situation:o


At the same time I mentioned the late default situation to them and they said I needed to discuss that directly with the original lender which I did. I was armed with 2 letters awarding me redress for interest and charges wrongly charged to me because they hadn't treated me and my financial difficulties fairly. The redress came as a result of them reviewing their systems not because I asked for it so I was chuffed:j


I had already written to get the default backdated but had no joy so I was delighted when the lovely lady I spoke to investigated it thoroughly there and then I was put on hold a few times but I didn't care how long it took if the result was likely to be favourable. And it was:j. Not only did she backdate the default to the start date of my DMP (even earlier than any of my other creditors) instead of over 3 years into it but she awarded me a further £660 in unfair interest and other charges:j. Sadly it could only be paid off the debt but I expressed my horror as I'd just negotiated a settlement based on the outstanding debt prior to this reduction:eek:. Put on hold again but was delighted to be told that the full amount would be deducted directly from the agreed settlement figure.


My maths isn't brilliant but I think I'm a winner there as the amount I'll be paying in settlement minus the full £660 works out less than if she'd deducted it from the balance and worked out the agreed settlement percentage based on that total. Anyway, whether it is or not, I'm euphoric. Just waiting now for the official confirmation letter with the usual 'no one will chase this debt in the future' type of promise and I'll get the money transferred.


Oh, and the cherry on the cake, she also gave me £100 by way of an apology and paid straight into my current account (which isn't with them). It transferred instantly and is now safely in my F&F pot ready for my next foray into the settlement world. Signing off now to do a few more cartwheels:rotfl:

Well done :j:j:j:j:j

I am so very, very pleased for you :beer:

Also - I am loving your updated signature. The new debt balance is amazing. You have done so well

Black_Monday

Sorry Jan, thought I had included everything, it was 2001, well before the 2007 deadline

January2015

Black_Monday wrote: »

Sorry Jan, thought I had included everything, it was 2001, well before the 2007 deadline

Go and visit/join the All About Debt website. Ask on their unenforceability section. They are experts in this area. They also have access to specialist legal advisors - and if you are at letter before claim, they will advise you on the appropriate response.

Good luck with this - although I don't think you will need luck if you get help from AAD as they really are amazing.

Black_Monday

Thanks for your comments Jan, I have been reading both sites, was hoping that posting here first that fat belly, sourcrates or Just Di who posts on both sites might have some advice to give me.

I would add that I have followed your story since you joined in January 15.

Black_Monday

In hindsite I should have started a new thread but could not find out how to do it, thought sourcrates would move it for me!

January2015

Black_Monday wrote: »

Thanks for your comments Jan, I have been reading both sites, was hoping that posting here first that fat belly, sourcrates or Just Di who posts on both sites might have some advice to give me.

I would add that I have followed your story since you joined in January 15.

I read both sites as well - but for specific advice such as you need in this case, and especially as you have a letter before action, I would definitely recommend the AAD site.