Terrified of starting a DPP (scotland)

kediler

Hi all,

I'll keep this as short as possible. I have started proceedings to try and get a DPP through Stepchange. They've been incredibly helpful.

I took very ill in the last 18mths with a 4 month stay in hospital during a nervous breakdown. I have stress disorder and anxiety but in this time i've racked up 12k worth of credit card debt. Now I'm on ESA and PIP, payments are fortnightly and monthly and ive lost control of my financing. Going through the expenditure with the SC agent, I have £188 left over to pay my creditors per month.

I was told to contact each of my creditors with a reference number - that has been the worst part so far and i'm not done!! Some have been quite forward and a little difficult. One has refused to send me proof of a statement and I can no longer access online banking with them so do I just let SC sort this out as long as I send them a photo shot of my CC?. I've been in tears the last two days and not slept. Do I have to contact the others or could I just leave it and hope the moratorium form I forward to SC will fix it? HSBC have said they can not freeze anything until they hear from SC and I will default and start to receive letters. I'm at my wits end!

My husband knows nothing about my debt and SC have said I can keep it that way but if creditors are now going to chase me I'm worried my husband will find out. Can anything happen to our home? Its in my husbands name and owned outright. He pays all the household bills, I pay monthly food shopping, christmas presents for our family insurances and anything else.

I'm also concerned that if the DPP is not accepted then I'll be left to contact each creditor again to arrange some kind of hardship with them..I don't know how it works. :( I'm terrified to even send off the paperwork.

Willing2Learn

I think that taking the first step forward on a debt-busting journey was 'terrifying' for most of us. So you are not alone in feeling that way. And none of us knew how the applicable debt management system worked at the beginning. But it is so cool when it all starts coming together... All the letters threatening letters stop arriving...

kediler wrote: »

...I was told to contact each of my creditors with a reference number - that has been the worst part so far and i'm not done!! Some have been quite forward and a little difficult. One has refused to send me proof of a statement and I can no longer access online banking with them so do I just let SC sort this out as long as I send them a photo shot of my CC?. I've been in tears the last two days and not slept. Do I have to contact the others or could I just leave it and hope the moratorium form I forward to SC will fix it? HSBC have said they can not freeze anything until they hear from SC and I will default and start to receive letters. I'm at my wits end!...

If it were me, I would only make contact with my creditors in writing. This takes the pressure off when compared to doing things on the phone. You can't get panicky and flustered doing things by letter (via Royal Mail). I recommend contacting all your creditors this way.

A default is good news by the way. You ideally want all your creditors to default you right at the beginning of your DPP, as this will mean your credit file will 'clean up' sooner.

beanielou

Let Step Change do as much as they possibly can from their end & try not to worry too much (Easy for me to say I know).

kediler

Thank you!

One other question please. In with the SC paperwork is a list of what creditors can and cant do with unsecured debts. Two of them are:
They can pass debts to a collection agency
They can send debt collectors to your home. :-(

I don't see the point in processing a DPP if thasts the case. I thought creditors were not allowed to harass me once the DPP was in place?

beanielou

kediler wrote: »

Thank you!

One other question please. In with the SC paperwork is a list of what creditors can and cant do with unsecured debts. Two of them are:
They can pass debts to a collection agency
They can send debt collectors to your home. :-(

I don't see the point in processing a DPP if thasts the case. I thought creditors were not allowed to harass me once the DPP was in place?

So dis I :think:

Willing2Learn

kediler wrote: »

… One other question please. In with the SC paperwork is a list of what creditors can and cant do with unsecured debts. Two of them are:
They can pass debts to a collection agency
They can send debt collectors to your home. :-(

I don't see the point in processing a DPP if thasts the case. I thought creditors were not allowed to harass me once the DPP was in place?

Passing the account to a Debt Collection Agency (DCA) is standard procedure once the original credit agreement is broken. Nothing to worry about. They would only threaten to send an agent to your home if you were not keeping to your repayment schedule. Besides, you could write to all your creditors advising them that the only correspondence that you consent, is by written correspondence via Royal Mail.

Don't be scared. You are doing the right thing.

kediler

Thank you.

Do i have to find a new bank account? One of the debts included in the DPP is with my current account (£100 overdraft). Stepchange advised me not to pay anything further towards the debts but i have a payment going in today which will automatically bring the overdraft to nil. So do i just let that happen and inform stepchange? I cant get hold if my bank via phone and its too late to write to them i think? Stepchange received my forms today.

Also, with a DPP when does 'diligence' come in to it? Im reading a lot on this but don't know if this would happen to me. I don't understand it if im honest.

And finally, theres a facebook page (bailiffs and debts page) that refuses to allow posts on money advisors like stepchange. Apparently, if a debt is sold on, then it may not be paid via the DPP with SC.

Any help is really appreciated thank you.

Willing2Learn

Whatever choices you make, please do not consider Facebook as a useful resource for information gathering.

If it were me, I would withdraw or transfer out the £100 at 1 minute past midnight. Have you got a current account for your wages, with an independent bank, unconnected to any of your debts?

As far as 'diligence' is concerned. You are going to have to speak to SC about this, as I haven't got a clue.

kediler

Willing2Learn wrote: »

Whatever choices you make, please do not consider Facebook as a useful resource for information gathering.

If it were me, I would withdraw or transfer out the £100 at 1 minute past midnight. Have you got a current account for your wages, with an independent bank, unconnected to any of your debts?

As far as 'diligence' is concerned. You are going to have to speak to SC about this, as I haven't got a clue.

Thank you for your reply.

Unfortunately i don't have another bank account separate to all of my debts. SC didn't tell me i needed this - ive even completed the direct debit form for DPP payments to come out of this said account! Im panicking now.

My child benefit paynent is also going in tomorrow and i have a pip paynent due Thursday

beanielou

I can’t believe that SC didn’t tell you that the first thing that you needed to do was open a new basic bank account away from anyone that you owed money to.

kediler

beanielou wrote: »

I can’t believe that SC didn’t tell you that the first thing that you needed to do was open a new basic bank account away from anyone that you owed money to.

No they didn't 😔 Im not sure what to do now. Not only do I have rhe ovdrdraft with my current account but i have a credit card linked with a bank of scotland account. SC have only just received my paperwork today so it will take a little while to get in touch with each creditor. Maybe i have time to open up another basic account?
I think i need to speak with stepchange tomorrow. This is a nightmare!! 😩