Setting up DMP

sammyjammy

chullbulla said:

@Rob5342, you shared the link https://nedcab.cabmoney.org.uk/dmp.asp

However, it is saying Derbyshire and also I generated a letter just to see, it says' I took advice for CAB North East Derbyshire. 

@RAS, I understood your points, was not aware that they can't go to court until default, and I plan to start paying as soon as accounts have defaulted.

Thats ok, just amend the letter as you wish.

chullbulla

fatbelly said:

If you've been on their website, then in a sense you have 'taken advice for CAB North East Derbyshire'. If you're not comfortable with it you should be able to edit that bit out

I see very few charging orders. They're nothing to worry about anyway. The debt just sits there until you move house.

Yes that logic about advice make sense as using their website.

Noted about charging orders, will definitely try to avoid it at anycase, I thought they can get order for sale once charging order issued.

chullbulla

Also how long it takes for a credit report to update once an account is defaulted? as I would prefer to contact creditor as soon as defaulted.

Rob5342

I left the Derbyshire references in, but you can change it if you like or write a seperate letter completely. All that matters is that you tell them what you'll be paying.

My defaults showed up within a month or two. Any legal action is a long way off yet, they'll spend a long time asking you to make payments and threatening various things before they take any action (if they ever do). Once you know it's defaulted then start paying, but you needn't worry about a few months delay.

It might be worth making CCA requests and afordabilty complaints too. Concentrate on the DMP first and get yourself into a sustainable position, but then you could stop paying any that turn out to be unenforcable and if you win any affordability complaints that might shorten the DMP.

fatbelly

Affordability complaints

https://debtcamel.co.uk/refunds-catalogue-credit-card/

https://debtcamel.co.uk/refunds-large-high-cost-loans/

fatbelly

chullbulla said:

Noted about charging orders, will definitely try to avoid it at anycase, I thought they can get order for sale once charging order issued.

No judge is going to grant that on a property you are living in. As I said before, it just sits there till you move,

I did hear once about a lender who tried it in my local court. The legal exec tasked with the case said the judge called him in, said 'no' and sent him away. He didn't even get to sit down.

chullbulla

Thank you for your email @fatbelly, will not take it to a level where creditors decide to go to court, just wait for default all 4 debt I have with MBNA, Virgin ( 2 cards ) Vanquis, and Tesco ( Loan ), let see how efficient they are doing defaults.

Rob5342

When you are in debt it can feel like lenders are ready to pounce the first time you miss anything. I found the opposite was true and they took forever to do anything. Virgin still haven't defaulted me despite having been on a dmp for 18 months and not paying for the last 7 months to try and get them to default.

chullbulla

Rob5342 said:

When you are in debt it can feel like lenders are ready to pounce the first time you miss anything. I found the opposite was true and they took forever to do anything. Virgin still haven't defaulted me despite having been on a dmp for 18 months and not paying for the last 7 months to try and get them to default.

Well in that case it is best to do DMP individually case by case, not good with Virgin in that case, I might have to wait longer as well then so you are not paying Virgin at all for now?

Rob5342

No I'm not paying them at all, that's through a mixture of wanting a default and because they have't provided a CCA. If you are self managed you can work out the DMP and all the payments in one go, and then just start paying them as they default. With ones that haven't defaulted you can save the payments and either put them in an emergency fund or use them to pay a lump sum off the debts when they do default. Personally I'd keep it saved and use it for full and final settlements later on.

It can be daunting to start with but mine has gone very smoothly, the only problems I had were lenders taking too long to default rather than taking any legal action.