Looking at a DMP

Fresh44

Thanks for your help. Obviously different debts will be defaulting at different times. Which won’t be an option for step change. So it’ll looking it’ll be a self managed? Do I just respond and set up a payment plan every time I get a default from each lender? 

2021rdsunshine

Fresh44 said:

Thanks for your help. Obviously different debts will be defaulting at different times. Which won’t be an option for step change. So it’ll looking it’ll be a self managed? Do I just respond and set up a payment plan every time I get a default from each lender? 

You’re right, defaults will probably happen at different times with different debts. You wait for default to appear on your credit file and then you can engage with creditor or whoever owns the debt ( sometimes creditors sell on the debts straight away after default, it happened with some of my debts) . They normally write to you and often there is information on their letters of the ways to make payments. If you don’t want to engage in any phone conversations with creditors, you just pay by standing orders from your bank account and that’s it basically. They might ring or write asking for you to get in touch and you can do that if you wish after default but I chose not to and it’s working for me , payments are made monthly and they have left me alone for now. Might take a while for you to get defaults, make sure you save a good emergency fund in the meantime. 

Rob5342

It's much easier to manage it yourself for exactly this kind of reason. Stepchange have their uses, but they have a very rigid approach designed to favour the creditors at your expense. 

Fresh44

Hi guys, after a long wait my first 4 default notices have arrived from Lloyds, mbna and virgin, letters also says my accounts are closed and give me a reference number to replace my account numbers. 

They have sent income and expenditure forms and told me to ring them or write to them. Would it be better just to write to them and tell them what il be paying per month? Or do I wait for it to go to a DCA? I am happy to start paying and have an emergency fund set up in a separate account away from my debts. 

RAS

Have they included the bank account details you need to make a payment?

What is the current state of your emergency fund?

Fresh44

No bank account details for payment provided. I have around 4k in an emergency fund. 

RAS

How many months essential spends would the emergency fund cover?

Fresh44

Hi All,

haven't been on in a while and everything is going great, defaults have been issued and standing orders have been set up and I have made a few payments to DCA s. My only problem is I took out 2 x 10k loans with updraft, 1 in 2022 with a balance left of £5266 and another in 2023 with a balance of £8034, I have received a letter from ACI a perch group company, they have combined the 2 loans and say the balance for the 2 is £18592. I can only think they have pre loaded the interest, any ideas if this sounds right and is there anything I can do? Thanks 

RAS

I'd be inclined to put in an affordability complaint about this. Giving the loan in 2023 wasn't clever. And since they've combined the two debts, you are going to have to claim using their reference number for the combined debt. Expect to have to appeal as they will probably refuse.

If they ever threaten to start legal proceeding, ask for the CCA. They don't have one as they've combined the debts.

enthusiasticsaver

I agree putting in an affordability complaint against Updraft is worth trying and asking for the CCA and to explain the balance discrepancy which is either pre loaded interest or late payment charges.  I would definitely query it though as it is over £5k difference. 

Good you are managing the DMP yourself.