Just looking for some clarity on DMPs

sonnet72

I know I will have to sit this out for God knows how long but I’m finding every minute that goes by and I’m still under a mountain of debt is just SO hard. You are right though because when I’m under stress I act impulsively and that’s never good

sonnet72

I’m going to post ideas here that I’m considering using in my letter to creditors . Mainly because I’d like your opinion as to weather I should include certain things but also because I think it might help others in similar situations. 

So I’ve been thinking about why so many of us are in similar situations where we’re find we can’t repay our debts and often the amount is substantial . One reason is a sudden change of circumstances - the other one is irresponsible lending. I’ve explored this latter reason and there seems to be quite a bit of guidance provided by FCA and FOS about this. 

Firstly there are affordability checks. Loads of case studies show that lenders are simply relying on credit scores. No thorough verification of income was undertaken in any of my loan applications and considering one of my loans is for £25k unsecured, even I was surprised that they never verified my income by asking for wage slips or contacting employer. 

Secondly under the irresponsible lending umbrella there’s an unreasonable interest and charges part. I need to look at the properly but there’s mention of when repayments are disproportionate to the loan amount it’s considered irresponsible lending. 

With my Natwest loan, I’ve paid £245 for 5 months and my balance has reduced by £100 , also i asked for a final settlement figure- just because I wanted to know where i stood and that was HIGHER than my initial loan amount. 

I bank with NatWest so not only do they know that I don’t get regular wages but they have offered this ridiculous loan. 

Although I must take responsibility for taking out my loans the onus is on them to prove it’s suitable  according to the FCA

Thoughts on including these 2 points ( no thorough affordability checks plus irresponsible lending)  backed with actual sections from FCA and FOS guidance ? My only reservation is that I’ll !!!!!! them off by accusing them of being irresponsible when I am also to blame and then they might not cooperate?? 

Regarding my own blame worthiness I will state that desperation combined with foggy brain associated with anxiety disorders leads to making bad decisions. 

sonnet72

From CONC 5.2a - creditworthy assessment: 

1. (3) 

   For the purpose of considering the customer’s income under CONC 5.2a, 15r, it is not generally sufficient to rely solely on a statement of current income made by the customer without independent evidence (for example, in the form of information supplied by a credit referance agrncy or documentation of a third party supplied by the third party or by the customer

   
   

   
   

fatbelly

sonnet72 said:

Latest: I spoke to an online solicitor just now from the Just Answer website and he reckons I absolutely do have beneficial interest in the house, very assertively telling me that anyone that says I haven’t doesn’t know what they’re talking about because they are not lawyers. Proper had a go at me

And was he an insolvency specialist? Did he tell you that in bankruptcy interest follows title?

Ot was he thinking that in divorce proceedings you would have an argument for BI?

Grumpelstiltskin

fatbelly said:

sonnet72 said:

Latest: I spoke to an online solicitor just now from the Just Answer website and he reckons I absolutely do have beneficial interest in the house, very assertively telling me that anyone that says I haven’t doesn’t know what they’re talking about because they are not lawyers. Proper had a go at me

And was he an insolvency specialist? Did he tell you that in bankruptcy interest follows title?

Ot was he thinking that in divorce proceedings you would have an argument for BI?

I will add to that, how much did he charge you for his 'advice' ?

kimwp

Grumpelstiltskin said:

Please stop trying to think you an afford to pay something towards your debts, you cant.

Do not involve any other family members in your schemes, please stop paying everything and write ASAP to all your creditors, all of this after you have told your husband.

A million times this. Just keep re-reading it. (Though I would make requesting a write- off the priority)

sonnet72

The advice was £5 -he was just a run of the mill solicitor that I paid a fiver for at 4am when I couldn’t stop thinking about my debt

thank you Grumplestiltskin I have realised that insolvency is my only option but I’m just going to seek write off first- using the arguments that:
 
i can’t afford to pay back

 I have mental health issues that are historic and are just getting worse

 I have vulnerable dependents 

There’s an issue of irresponsible lending on their part ( this is where I need more advice whether to include this in my argument or not) 

i have no assets and have not contributed financially to my home enough to claim beneficial interest

 by selling my debt, with this knowledge would be exacerbating my situation

 writeoff best for everyone

sonnet72

Can I say, selling my debt , with all of this information at hand is bad practice since they we’ll be kind of misleading the debt agency that they seek to sell to?? 

sonnet72

I just don’t want to come across as accusatory

Grumpelstiltskin

sonnet72 said:

Can I say, selling my debt , with all of this information at hand is bad practice since they we’ll be kind of misleading the debt agency that they seek to sell to?? 

Misleading? they don't know the meaning of that. You are only a number to these people.