Guidance on changing to a Self managed DMP / F&F settlements

gonnabeeok

Hi,

I have a few various questions on this post, any help for any part of this post would be super appreciated.

I am currently on a managed DMP and looking to end this arrangement and change to self managed.

I've read around on others experiences doing so but I am finding the process a bit overwhelming and need it broken down a bit more for me to understand (I am autistic and very anxious so it takes me a bit to get to grips with things).

• Do I need to end the managed DMP first?
• When contacting my creditors (5 different creditors, 6 debts) do I need to do it by letter or could I email them with a formal written letter attached? My post is extremely slow where I live and I am anxious about the delays in correspondence
• I intend to keep my existing budget that I have with the managed DMP and pay them the same, it'll just be directly from me instead of via a third party. Do I need to tell them this on the letter, and do I need to ask them for account details to pay to?
• Do I need to tell them a payment date that I intend to pay on, on the letter also?
• Is there anything else I should be aware of when changing to self-managed?

Once I have completed this process, I intend to make full & final offers to the creditors with money that will be gifted by my partner for this purpose only. I have support in place for the F&F offer process

Is there anything I should be aware of in terms of making settlement offers as well? I'll be offering them around 40-50% of the current balances each.

5 out of 6 debts defaulted in 2022-2023 - I didn't understand the process of all of this back then so I had already started a DMP and most of them defaulted after. I am unsure whether I could ask them to backdate defaults to 6 months of arrears as some took longer to default?

There is one debt that concerns me, that hasn't defaulted, and is my largest debt. It is a loan with Lendable (tried and failed a consolidation loan ha ha) who mark my credit file with missed payment & DMP every month since 2022. It's wrecking my credit file and I may have to rent somewhere alone next year and I am terrified (no guarantor, bad credit, etc) that I'm going to be homeless.
I worry that as it hasn't defaulted they won't accept the F&F offer. They have sent me arrears notices every few months with random sums of arrears (it goes up and down) that don't make sense (they did freeze interest back in 2023 though). A financial advisor I spoke to was equally confused by these letters. I tried to call them about it and was told a supervisor would be in touch but nothing came of it. They also have a partner company, Zable i think, who are constantly texting and emailing that I am pre approved for a credit card which seems inappropriate to share a DMP customer's details for this, they are aware I am vulnerable as well due to multiple disabilities.
Should I ask Lendable to default back to 2022?? Is there anything I can do to help my chances of them accepting the settlement offer? I am dreading dealing with them and I don't know what the best thing for my credit file would be.

I will list my creditors and amounts outstanding below in case anyone has any insight on how to contact them/what to expect from them during the process of moving to self managed to later do settlement offers.

- Lendable - loan - £2,681.54
- Advantis Credit - credit card, was Sainsbury's - £1,379.47
- Nationwide - credit card - £1,205.54
- Capital one - credit card - £960.97
- Link Financial - was Very - £949.37
- Nationwide - overdraft - £248.40

It was around £12k in total when I started the DMP, now around £7k, it's not much in 4 years but I am proud of how much I have paid while on a low income and with ill health.

Appreciate any guidance and advice for my plans, and apologies for the long post!

Thank you x

RAS

Welcome.

I thinks it's going to be worth making an affordability claim against lendable but you need to do this promptly as there's a 6 year limit. You may not win at stage 1 but later, probably reduced to initial debt less money repaid, interest repaid and some concession in the default.

With regard to any F&Fs, start at 20%.

fatbelly

Yes, you do need to end your managed dmp. Writing to creditors by email seems fine to me. Ask for bank details where you don't already have them. But i wouldn't start payments to anyone who hasn't registered a default

Brie

Agree with has been said already but would like to add that I would state in your email that you are revoking your authorisation for whatever organisation was handling the DMP to make it clear that any correspondence needs to be sent to you. That will help ensure that communication is clearer.

As for Zaple I would suggest contacting them and telling them to erase all contact details they have for you and that anything you receive from them after 1 May (or whatever might be considered reasonable) will constitute harassment and will be reported to the ombudsman.

gonnabeeok

https://forums.moneysavingexpert.com/discussion/comment/81973174#Comment_81973174

Hi, thank you!

How would an affordability complaint work, how would we know if I was not able to afford it at the time of applying? All a bit confusing for me!!

Is it important to tell them when doing F&F about my health and no likelihood for increased income? I'm on PIP and currently reducing hours at work and I currently only pay £50 between all creditors and I can't see it ever going up so would they be more likely to accept 20% with this information?

gonnabeeok

https://forums.moneysavingexpert.com/discussion/comment/81973217#Comment_81973217

Hi, thank you for your reply

Thanks, that is reassuring, email feels a lot quicker and easier to keep track of when dealing with multiple creditors too. I will make sure to ask for bank details

Lendable is the only one not defaulted but I have paid continuously on the DMP to them for years, what would be likely to happen if I stop now? I don't really want a default adding this year when the rest will be at 6 years in 2028/early 2029 which is not long now if that makes sense. I'm conscious of needing to be accepted to rent somewhere on my own next year (out of my control, person I currently live with will be leaving and I cannot afford current place alone etc) so I want to be careful on the credit check side of things :(

gonnabeeok

https://forums.moneysavingexpert.com/discussion/comment/81973487#Comment_81973487

Hi Brie,

Thank you, I will make sure to state clearly that I am revoking authorisation from the organisation etc

I will do that with zable as well, thanks!
I was mostly in shock that they could send something like that without me ever interacting with them, even if they are a part of Lendable. Its very pushy wording, "We have set you up already with your email [my email here] you just need to download the app and sign in for your pre approved credit card" - I understand that companies share details for marketing but couldn't believe how convincing and enticing the emails and texts have been, and find it shocking that Lendable would share contact information of customers already in debt. I can ignore it and move on but I feel concern for other vulnerable people out there who could go for these emails and get into more debt or something. Maybe I am being too sensitive about it though. 😅

Thank you for your help!

Brie

Sounds like what Zable and Lendable are doing would be the good basis of an affordability complaint if someone signed up for the new card.