Debt Managemt Plan query

universallyuncredited

Grumpelstiltskin said:

Have you ever requested CCAs ( Consumer Credit Agreements ) On any of the credit cards or loans?

If they can't be produced then no court action can be taken so no need to pay them.

What we advise is to stop paying the and request CCAs, if they do produce valid ones then you can make affordable payments if they can't you just stop paying.

 With such a large amount of debt affordability would normally come into play but these debts may be too old to think about that.

I did look into this some time back but I understood that if I have paid, I've acknowledged a debt exists regardless of their being a CCA on file.

Grumpelstiltskin

What you are thinking about is a debt being statute barred. This happens when you don't pay or acknowledge it for 6 years ( 5 in Scotland).

So yes your debts aren't statute barred because you are paying them, but unenforceable is different.
For a creditor to think about applying for a CCJ they have to be able to prove to the court that the debt is viable, because your debts are so old it is likely that the CCA has disappeared over the years especially if it has been passed around different companies. So they can't take court action and you can stop paying and there is nothing they can do.

universallyuncredited

RAS said:

universallyuncredited said:

Hello.

I've been in a dmp for a number of years, paying all my disposable income into it which amounts to about £140 a month.

My situation is potentially going to change and my disposable may go as high as £1000 a month..........

Any advice appreciated.

A lot has changed in the debt collection world in the last decade. A good many of the practices in which debt collectors used to engage are now banned or discouraged, although some of them look for wriggle room. 

Your current plan really is not helpful to you, and yours.

Do not increase your payments towards the debts when your income increases.

The basic of the debt collection industry is that they pay 5-30% of the book value and try and extract more than they paid for it from the debtor. So many will have already made a profit from you. 

When your surplus increases, feed some into an emergency fund so you can cover white,goods clapping out, etc. Put a little into your family budget for bigger ticket items; teens cost more than toddlers to take on holiday etc.

And put the rest into a fighting fund.

Then send CCA requests to all the credit card debts. If the debts have been sold repeatedly, some of the creditors will have lost the legal documents needed to enforce the debt. It's impossible to guess who's going to fail and who succeed in finding the papers. Give them a month and then stop paying.

You are also in the realms where creditors might start offering discounted settlement figures because the debt is so old. This is when you do not want to be managed by any DMP provider. It's quite possible that even if every CCA is found, you could still clear all this debt for £15-20k, maybe less, using discounted settlements.

Shift across to self management, and you can start to take advantage of this once you've got some money in the fighting fund. Do not just accept every offer. If they want £1200, offer £800 and see what happens. Maybe they'll come back with £890, and you can afford that.

Best of luck. Because your deserve some.

Thankyou. Is there a good template letter for a CCA request?  

universallyuncredited

Just a side note to all of this.

My previous mortgage accounts for over half of my debt.

It was with Northern Rock at the time and when I went to DMP it was transfered to "Computershare - Landmark Account"

Looking at my DMP, although they are receiving payments, they have not given acceptance of my plan. In fact I don't think they have ever communicated, they just stay quiet and take my money.

Is there any reason I cannot request the CCA from them now, whilst my DMP is active and see what happens.  What would be the my course of action if they cannot produce it or do not respond within the timescales? 

My thinking is that I have nothing to lose here and a lot to gain. 

 

ManyWays

MW used to be called Gregory Pennington until early 2023, when they got government funding, and at that point, I think they were told then that their DMPs have to be free so I dont think you should have been charged fees after that point 

This article from National Debtline explains how to ask a creditor for the CCA agreement, Credit agreements | Getting information | National Debtline
This is only relevant for loans and credit cards and HP, not overdrafts 

Grumpelstiltskin

Have you ever contacted Landmark to ask what is happening to the mortgage.

Home – Landmark Mortgages - Landmark Mortgages

universallyuncredited

Grumpelstiltskin said:

Have you ever contacted Landmark to ask what is happening to the mortgage.

Home – Landmark Mortgages - Landmark Mortgages

I have never had direct contact with them. About 12 years back my mortgage ( just the shortfall after sale as we were forced to sell a tenanted house below mkt value) with Northern Rock went into the DMP.  This was subsequently transfered to Landmark.  In the 10 years or so I've been paying them, they're just a name on my dmp.

ManyWays

Can I ask how large the remaining debts in your DMP are? If they are very large and you are renting, have you looked at insolvency?

universallyuncredited

ManyWays said:

Can I ask how large the remaining debts in your DMP are? If they are very large and you are renting, have you looked at insolvency?

Yes, but the debt is joint and my partner's job will not allow it on her file.

ManyWays

I am sorry, I think I lost sight of your starting position, which is that you are going to have a large surplus each month, so insolvency isnt really relevant. Asking for CCA agreements where feasible will help minimise the amount you have to pay.