Prioty Debts

Sly72

Currently managing own DWP, but been hit with high untilty bill (Gas/Elec) due to reading issues. My question is i am aware this a prioty debt but would my creditors play ball if i ask to reduce payments to clear this for 6 months, anyone point me to any FCA rules to use.

Grumpelstiltskin

Managing your own DMP you decide what you pay, if you want to keep it going have you considered paying them £1 each until you have cleared it?

EssexHebridean

As above - you simply tell your creditors that you have had an unexpected bill, and that you are temporarily reducing your payments to them while it is cleared. 

Do you not currently have an emergency fund? If not, then it would be a good idea to go through your budget again (always a good idea to review it periodically anyway) with a view to tweaking things so that you can start to build one. Even £50 a month set aside will build to an extent where this sort of issue will become less of a problem.

Have you sorted out the issues with the meter readings now? If you have problems submitting regular readings then it might be a good plan to get yourself on the list for getting smart meters fitted. If you have smart meters and they aren't sending the readings then make a formal complaint to your provider to try to get this fixed, but in the meantime ensure that you submit the readings monthly - a reminder set on your phone of email account can be useful as a prompt for this. 

sourcrates

Oh Sly come on, you know the drill by now surely, priority debts take precedence, always.

There`s no playing ball here, you tell them you have an unexpected priority bill, they will just have to lump it.

Sly72

sourcrates said:

Oh Sly come on, you know the drill by now surely, priority debts take precedence, always.

There`s no playing ball here, you tell them you have an unexpected priority bill, they will just have to lump it.

I know just after some re assurance as i have a very tricky creditor to deal with, was just after any FCA stuff to back me up.

sourcrates

Standard default position is that priority debts take precedence over non essential credit debts.

If you want gospel, this is the guidance that would apply-

CONC 7.3.

Examples of treating a customer with forbearance would include the firm doing one or more of the following, as may be relevant in the circumstances:

1. (1) 

   considering suspending, reducing, waiving or cancelling any further interest or charges (for example, when a customer provides evidence of financial difficulties and is unable to meet repayments as they fall due or is only able to make token repayments, where in either case the level of debt would continue to rise if interest and charges continue to be applied);

   [Note: paragraph 7.4 (box) of ILG]

2. (2) 

   allowing deferment of payment of arrears:

   1. (a) 

      where immediate payment of arrears may increase the customer's repayments to an unsustainable level; or

   2. (b) 

      provided that doing so does not make the term for the repayments unreasonably excessive;

3. (3) 

   accepting token payments for a reasonable period of time in order to allow a customer to recover from an unexpected income shock, from a customer who demonstrates that meeting the customer's existing debts would mean not being able to meet the customer's priority debts or other essential living expenses (such as in relation to a mortgage, rent, council tax, food bills and utility bills).