DMP

pathtodebtfree

Hi all, have been in a self managed Dmp for a while with a few creditors but only recently added 2 x natwest loans to it. They have defaulted one loan so I have been waiting for other to default before starting payments however the collector they have gone with has put both loans together in their communication to me so it's a whole lump sum not two separate accounts. I am reluctant to start payments as stated above as one is still not defaulted and don't want this to be seen as an arrangement to pay. What's the best way to go about this?

peteuk

Firstly a DMP should cover all your debts, and you shouldn’t be taking more debt on whilst on a debt management plan. This is so all debts are treated fairly, if your creditors find out they may ask for higher/normal payments. Remember a DMP is not legally binding and your creditors have no requirement to accept lower payments, freeze interest etc.

Are you paying the full payment on the non defaulted loan? If not then it’s being reported to your credit agency. If your not paying it will be reported as a missing payment and the amount of months it’s not been paid, so why wait till it defaults? Once it defaults is reported as such. Anything prior to this is irrelevant, it’s defaulted.

sourcrates

"the collector they have gone with has put both loans together in their communication to me so it's a whole lump sum not two separate accounts".

They do this to make management of the debt easier, but by combining two existing debts into one new debt, they create an account that (a) there will be on legal paperwork for, and (b) an account that never existed previously.

Make a CCA request, they won`t be able to provide a copy credit agreement for that amount, in your name.

Are you certain this company hasn`t bought the debts?

Can you name them?

pathtodebtfree

Hi @sourcrates The debt collector is moorcroft, do i make the cca request to natwest?. And @peteuk this is not a new debt, this is a debt I thought I could still manage without joining my self managed dmp but unfortunately realised I could not so please don't make judgement as that is not why I have came here. Thanks

sourcrates

Moorcroft primarily act as a debt collector, and work on behalf of their clients.

For all intents and purposes this makes them of no real problem to you as they won`t have authority to enforce the creditors rights, all they will have been cleared to do is take payment from you.

You could just let them get on with it and let them run through their standard round of collection letters.

If at a later date you need to act, then send a CCA request to whoever is writing to you at the time, but for now Moorcroft can simply be ignored.

peteuk

https://forums.moneysavingexpert.com/discussion/comment/82167750#Comment_82167750

@pathtodebtfree - no judgement from me, just needed to know the full picture. So thank you.

Personally I believe the second loan will default shortly, if they have sent it to a debt collector. As sourcrates has said the loans have been joined by the debt collectors as it’s easier for them. As its now joined add it to your DMP.

Good luck with the journey.

Rob5342

https://forums.moneysavingexpert.com/discussion/comment/82167750#Comment_82167750

Do you have any other debts that aren't in your DMP? It's best to default on everything and then pay them all in your dmp. Once you've got a few defaults then having more won't make much difference and having them defaulted will ensure that no more interest is accrued.

sourcrates

You may have missed the bit where I said the debt may be unenforceable because they have combined them.

Send a CCA request and see what comes back.

You might not have to pay it at all.