DMP and barclays

Candyfloss600

So we've recently entered into a DMP with step change. I've already had some creditors accept our proposal and they have stopped interest. However Barclays sent a demand for full amount to be paid. Step Change has said that this is common and shows that they intend to apply a default on the account. My question is has anyone had dealings with Barclays and DMP? Did they accept in the end or are they just going to be difficult? 

RAS

Ideally if you aren't paying the minimum repayment, you WANT the creditor to apply a default before you start making reduced payments.

This means that interest and fees are nil and that the debt will leave your record in 6 years time, even if you don't pay a penny.

If you start making payments before the creditor applies a default, your record will be given an AP mark. That means that your credit record is only repaired 6 years after you clear the debt.

So check your credit records with all three providers and report back?

Sly72

Barclays will sell the debt to PRA, once this happens PRA own the debt and you can pay them same amount you are paying now.

sourcrates

Its just a standard default notice, you want this to default, so its for information only.

Creditors who have already agreed to stop interest without going through the default process will mark your file with AP markers, they will show for 6 years after the debt is repaid.

Banks don`t deal with bad debts, its likely your debt will be sold.

Rob5342

Really you should have stopped paying everything and waited for them to default before you started making payments. Stepchange act in the best interests of the creditors, not you, whhich unfortunatly means they advise you to do things that are very harmful for you in the long term.

Asking for the full amount to be paid is standard wording for default letters, in practice the debt gets sold to a debt collector who will keep making the same payments. This is very good for you as it means you now have a fixed date 6 years after the default date when the debt will drop off your credit report, and the debt collector will be open to a reduced payment offer if you have sufficient money available in the future. At some point you may consider asking the debt collector for the CCA, if they can't produce that then they can't enforce the debt and you can just stop paying it.