DMP Problem

YourLad97

Hi,

New to the forum, so bare with.

I’ve been on a DMP for a few years not and I am about 75% done with it. However, I’ve made a really stupid mistake a few weeks ago.

My parents are retired and they’ve asked me for a loan which they weren’t eligible for due to being retired I presume. They’d pay me back monthly and that would go towards the loan.

I was stupid enough to do it. Once I’ve done it, I realised that I shouldn’t have and that despite the fact that my parents would be paying it off it would still be in my name and I could get in trouble with my DMP provider. As soon as that happened (within one day of taking the loan out) I gave it back and explained it to my parents. 

This loan will now be marked as settled on my Credit File.

my question is, what is the likelihood that my DMP provider finds out and this gets cancelled? 

I’m very torn about whether to come clean or not. I haven’t really slept nor stopped shaking due to all this. 

I keep imaging that the DMP gets stopped and the creditors demand full payment with immediate effect which Id obviously not have the means to do. 

In the last year I’ve missed only one payment.

thank you for any advice!

EssexHebridean

If the DMP gets stopped, just go self-managed - it's not a big deal at all (even though I get that it feels like it right now!) as it's up to you to call the shots about how you run things. 

Well done on both your progress with the DMP and on realising the issue around taking the loan too! 

If you've found yourself with a missed payment to the DMP this isn't a problem but it probably is worth working out what the root cause was and considering what steps you might need to take to prevent that situation occurring again - it could be that you were underbudgeting, or that something came up and you didn't have sufficient in your emergency fund, or just the cumulative effects of the DMP payments not leaving you quite enough income for your budget. All easy to fix though, once you've worked out which it is.

Grumpelstiltskin

To add to what EH said, I do hope your DMP is with a charity and you are not paying any company to do it for you.

YourLad97

Hi both. Thanks for your advice. My DMP is indeed with a charity. 

In terms of missing the payment, I’ve missed one as I was on a zero hour contract but now I have a proper contract so it should not happen.

I know none of you can give me a definitive answer but if my DMP gets stopped, what are the chances of my creditors just demanding that I pay the whole amount in one go? I fear getting a CCJ or them bankrupting me as that would erase all of my progress. 

Rob5342

DMPs are nothing special, its just someone making payments on your behalf. If it does get stopped you just make the payments yourself, the creditors wont care at all where the payments come from. 

YourLad97

Rob5342 said:

DMPs are nothing special, its just someone making payments on your behalf. If it does get stopped you just make the payments yourself, the creditors wont care at all where the payments come from. 

My fear is that they find out I took out another loan (albeit gave it back straight away) and they say that it shows a lack of commitment etc. ergo demand the remaining of the balance immediately.

RAS

You are seriously over-thinking this. No-one at the creditors looks in detail, 99.9999999% of the time. Everything is computer generated. Ok, if you are reducing payments, it might be worth sending a message beforehand, in case the computer does flag up your case.

Remember if the DCA bought your debt when it was new, they paid 30% ish. If it's been sold on several times maybe 10% ish. They've probably already made a profit from you.

ManyWays

DMPs are not like IVAs, no one picks over your bank statements or credit records. They wont notice this has happened.

This would be a good time to look at whether your DMP could end sooner though. Have most of your debts been sold to debt collectors?

Grumpelstiltskin

OK As RAS said you are over thinking this and panicking, please stop.

The chance of you getting a CCJ is very small and they don't just appear out of thin air you do get a chance before they are issued to pay them.

Creditors can and do sometimes demand you pay up in full, it doesn't mean you have to it's just another threatening tactic.

You have to realize you will be in control of your debts not your creditors.

YourLad97

ManyWays said:

DMPs are not like IVAs, no one picks over your bank statements or credit records. They wont notice this has happened.

This would be a good time to look at whether your DMP could end sooner though. Have most of your debts been sold to debt collectors?

I’ve read on a few forums that DMP creditors do regular soft searches on their debtors accounts hence why I’m scared that they’ll find out. Is that not the case?


Grumpelstiltskin said:

OK As RAS said you are over thinking this and panicking, please stop.

The chance of you getting a CCJ is very small and they don't just appear out of thin air you do get a chance before they are issued to pay them.

Creditors can and do sometimes demand you pay up in full, it doesn't mean you have to it's just another threatening tactic.

You have to realize you will be in control of your debts not your creditors.

My fear is that they demand full payment I then have no way of doing that and they take me to court. I think a CCJ would literally be my final straw in this whole debt situation. I just think that once I breach one of the conditions of my DMP like I have now they’ll essentially refuse to negotiate any repayments with me. 

 
 

Grumpelstiltskin

Please stop this, creditors have better things to do than doing soft searches on all their debtors.

As I said creditors can ask for full payment but it doesn't mean you have to do it.