Starting DMP

Rob5342

It's quite normal to be contacted before defaults. Just ignore them until they do default you and then start the payments.

It's completely counter intuitive but ignoring them for a few months means you will be treated better than if you were paying them.

fatbelly

Just think of it as them working through their standard letters.

Beck50

Just checking back in, this morning have checked my clearscore credit ratings it says I'm soaring high, also check MSE Credit club and yes my score has dropped but all my creditors have me down as in arrears, Drafty I'm sure sent me an email stating Default and they like lendable are the ones that have been contactable by email but both want my DMP reference number which I haven't started yet, so you all think it's still best to wait, even though the likes of Natwest, Barclaycard, Nationwide & MBNA send me letters asking for me to get in touch by certain dates or they will pass to their debt recovery team? My feelings on starting my DMP change daily when you keep being contacted which I know they have a right to.

RAS

There are defined rules about the action that creditors have to take before they can issue a default against a debt. Unless the creditor has marked your account as being in default, then those emails are just do many characters in the ether.

You'd be best to wait until you can see the defaults on your credit record.

Meantime, save what you would be paying your creditors into your emergency fund as you will need it sometime.

sourcrates

Beck50 said:

Just checking back in, this morning have checked my clearscore credit ratings it says I'm soaring high, also check MSE Credit club and yes my score has dropped but all my creditors have me down as in arrears, Drafty I'm sure sent me an email stating Default and they like lendable are the ones that have been contactable by email but both want my DMP reference number which I haven't started yet, so you all think it's still best to wait, even though the likes of Natwest, Barclaycard, Nationwide & MBNA send me letters asking for me to get in touch by certain dates or they will pass to their debt recovery team? My feelings on starting my DMP change daily when you keep being contacted which I know they have a right to.

OK, it doesn't matter what your current creditors may say or do, it`s completely meaningless to you, but obviously they must follow the correct collection procedures, so just let them get on with it.

If they wanted to start action through the courts, they can only do so once your account defaults, not before, and in 99% of cases, the debt is either passed to collections, or sold on, rather than that happening.

When you start your debt management plan, it`s very unlikely you will still be dealing with the original companies, as the accounts will hopefully have been sold on to 3rd party debt purchasers, and it will be them you will then be dealing with.

Rob5342

Don't let the letters worry you, they are just standard ones they go through before they default you. Once they default they will probably be passed to debt purchasers who will just take what you offer.

Beck50

Hi, Drafty have emailed me today saying that 7 days from the date of this email, if they do not hear back from me by then they will assign my debt to CRS debt collection agency if though I emailed them a few weeks ago to say that I would be starting a DMP with stepchange, should I be worried as the rest I owe only 1 has defaulted me the rest just keep trying to call me and send letters, although to be fair the letters have been supportive about ringing them to see if they can help, but haven't because of going through Stepchange when ready. 

fatbelly

No problem. You'll just get letters from a different source for a bit.

peteuk

Beck50 said:

Hi, Drafty have emailed me today saying that 7 days from the date of this email, if they do not hear back from me by then they will assign my debt to CRS debt collection agency if though I emailed them a few weeks ago to say that I would be starting a DMP with stepchange, should I be worried as the rest I owe only 1 has defaulted me the rest just keep trying to call me and send letters, although to be fair the letters have been supportive about ringing them to see if they can help, but haven't because of going through Stepchange when ready. 

In my experience, (back in 2005) when we started our DMP with CCCS (now Stepchange) some companies will happily put you into their collections department on a short term basis, but then every 6 months renew the agreement.  HSBC did this for about 4 yrs. 

As others have mentioned some will quickly sell the debt onto a collecting company, others may have an in-house debt collecting company.  So don’t be surprised if somewhere down the line a debt is passed back to the original company.

I personally, would suggest speaking to your debtors, but I know a lot of people disagree.  To some degree it stops the letters, emails, text and calls.  But that’s just me.

Good Luck with the DMP.

Beck50

Hi, is it normal or abnormal for creditors to keep ringing, I appreciate they are chasing money owed to them, but when you are at work and that's the only time they ever seem to ring you, why can't there be a better way of communicating with them other than ringing them which I don't want to do yet until I get a full house of defaults, some have and some haven't so am I best to keep ignoring them and wait to be defaulted by all of them? One as mentioned in a previous post have passed the debt to a collection agency.