My debt story - looking for a bit of support

Boabyfromcraiglang

Do creditors ever acknowledge that your in a debt payment plan?

sourcrates

https://forums.moneysavingexpert.com/discussion/comment/81963129#Comment_81963129

If you manage the process correctly, your debt repayments will coincide with your debts been sold to 3rd party companies, defaulted debt is just that, you make what arrangements you see fit with the debt purchasour/collector, and thats that.

If you start repayment before the debts are sold, then a creditor can mark your credit file as "AP" (arrangement to pay) until or unless it defaults, and they would acknowledge the arrangement either in writing or by email I would assume.

Naomim

https://forums.moneysavingexpert.com/discussion/comment/81962422#Comment_81962422

This was the same for us except I was the one shouldering the finances and ultimately the worry and sleepless nights. I don't feel any guilt now though. I came to realise I wasn't spending extravagantly on myself, all of it was for the family.

I didn't go into a DMP and I'm still paying off my debts 8 years on. Monzo pots were a game changer for me with budgeting and I became quite obsessive. I also use a free app called Snoop that let's me see all my bills coming out and makes sure I'm covered for the month.

You've got this 💪

Rob5342

It was exactly the same for me. Having a baby, moving house and my wife giving up work put a big dent in our finances. I started using credit cards "just for this month", which of course just kept knocking on to the next month. I used various 0% transfers but they ran out and and payrises I had were cancelled out by increases in interest. I was never extravagant and everything I paid for was for my family's benefit but I ended up with £44,000 on credit cards.

Starting a Dmp was the best thing I ever did and the stress disappeared literally overnight. Not having credit to fall back on was very worrying at first but that really focused my mind on cutting down on non essentials and putting money aside for upcoming expenses. I was soon making much better use of my money as a result. We didn't have the weekly takeaways etc but when it came to buying school shoes I had the money and could just pay for them outright without any worry or putting them on the credit card again.

Boabyfromcraiglang

Thanks for all the responses so far. Has anyone had success with irresponsible lending claims?

There are some big loans I took out towards the end that it was clear (looking in hindsight) I wouldn't be able to service. However with the question on the loan application about my contribution to our mortgage I put that I contribute half even though the full payment comes out my account. In my thinking that will probably disqualify me from a responsible lending claim and I'm better to just keep quiet about it?

Any one got any thoughts?

Thanks

Rob5342

I've had some good results from making irresponsible lending claims, my best was a £16,000 interest refund from Nationwide for a credit card they had given me multiple limit increases on. I think that was quite an exceptional case, I spent 2 years with them fighting it every step of the way, but at the very end they suddenly backtracked and made me a settlement offer despite the preliminary decision from the FOS ombudsman being in their favour.

It's quite common, perhaps even standard, for lenders to reject claims but the FOS puts a great deal of responsibility on lenders to check that loans are affordable before they lend to you. The FOS publish their ombudsman decisions and if you look at those there are some cases where people have put incorrect details on their application and the FOS have said that the lender should have done more to check peoples situations before lending. The FOS base their decision on the information the lender would have had available to them and what would have been proportionate given the circumstances, so that depends on how big the loan was, what your credit report said, how much they could see from any accounts you already had with them etc. If you think they shouldn't have given you the loan then give it a go. It doesn't take that much work, but lenders drag things out as long as they can in the hope that you'll give up. Just keep pushing until you have exhausted the process.

sourcrates

"Has anyone had success with irresponsible lending claims"?

"Any one got any thoughts"?

It costs nothing to make a complaint, and the old saying, "don`t ask, don`t get" would apply here.

If you are going down that path, you should do so quickly, as strict time limits apply to complaints of a financial nature.

Generally you have 6 years in which to bring an issue to your lenders attention.

Debt camel gives good advice here, applies similarly to loans as well:

How to get refunds from catalogues and credit cards · Debt Camel

Boabyfromcraiglang

But what about my saying I was only responsible for 50% of the mortgage. At the time I rationalised it in my head that my wife was responsible for the other half but I knew the full amount came out my own current account in my own name?

Boabyfromcraiglang

Also in my desire to get this sorted and not really understanding the position I entered the DAS without any of my accounts defaulting. Will this likely mean arrangement to pay markers will be added rather than defaults?

Thanks

RAS

So you are in Scotland?

If so, can you edit the title of your thread to include (Scotland), please.

.