DMP Mutual Support Thread (Part 4)

Gemmzie

They are probably still charging interest because you're paying them more, and too much.
Even with a self administered DMP, you're expected to do pro-rata payments. It goes much more in your favour should one of them take you to court.

Lodge

Gemmzie wrote: »

They are probably still charging interest because you're paying them more, and too much.
Even with a self administered DMP, you're expected to do pro-rata payments. It goes much more in your favour should one of them take you to court.

Hi.

Thanks again for the reply!

Who do you feel I am paying too much to? Do you think I'm paying too much to all of them, leaving me short at the end of each month?

I'm worried if I try to re-negotiate lower payment they will just cancel the payment arrangement and push it through the Courts?

Please offer any advice you can as I'm feeling very down about it all today..... :rolleyes:

Angel_Cake_3

Hi Lodge, the amount you pay really all depends on if you can afford to pay it and what you have left to live on.

When I first contacted Payplan they were very clear that I must lot leave myself short and should pay only what I can afford.

They have a standard Expenses V Income template that they use and from what I can gather it is goverment led. I was very surprised they put in expenses for haircut, pets etc.... But once again, goes back to we need to live!

The other thing that they said that was very important, that once we have the total that is left to share out amongst creditors, they have to be porportioned equally in line with what is owed. For example, if you have 2 creditors and owe £1000 in total £750 and £250 and have £100 left to pay them, the one you owe £750 to get £75 and the one you owe £250 to gets £25. (does that make sense)?

The reason this is done is to ensure that all creditors are treated equally.

My adivce to you would be to contact Payplan or CCCS for their thoughts.
I seems you are worried about reducing payments and the consequences. As long as the creditors see the reason why you are reducing (food / petrol etc.. going up) they should be fine.

The other reason to go to PP or CCCS, if in the unlikely event they talk about court etc... you will have the support of the experts who will hold your hand the whole way (very unlikely though)

Hope that helps xx

Lodge

Angel_Cake wrote: »

Hi Lodge, the amount you pay really all depends on if you can afford to pay it and what you have left to live on.

When I first contacted Payplan they were very clear that I must lot leave myself short and should pay only what I can afford.

They have a standard Expenses V Income template that they use and from what I can gather it is goverment led. I was very surprised they put in expenses for haircut, pets etc.... But once again, goes back to we need to live!

The other thing that they said that was very important, that once we have the total that is left to share out amongst creditors, they have to be porportioned equally in line with what is owed. For example, if you have 2 creditors and owe £1000 in total £750 and £250 and have £100 left to pay them, the one you owe £750 to get £75 and the one you owe £250 to gets £25. (does that make sense)?

The reason this is done is to ensure that all creditors are treated equally.

My adivce to you would be to contact Payplan or CCCS for their thoughts.
I seems you are worried about reducing payments and the consequences. As long as the creditors see the reason why you are reducing (food / petrol etc.. going up) they should be fine.

The other reason to go to PP or CCCS, if in the unlikely event they talk about court etc... you will have the support of the experts who will hold your hand the whole way (very unlikely though)

Hope that helps xx

Many thanks.... Could you point me in the direction of the Income and Expenditure form please?

Darth_chaffinch

Am happily with CCCS, but some creditors (lloyds and Virgin credit cards) are still deducting interst, even though they've accepted the DMP, can they do this - how can I ask them to stop???
Also, Lloyds bank havve accepted the DMP but are defualting my current account every month, which is showing up on my credit report!! How can I stop them doing this please??

Thanks!

Angel_Cake_3

Hi Lodge, if you go onto the CCCS Website they have full details there of what you should include in your I/E.
If not, I am sure one of the helpful peeps here will be able to point you in the right direction. Payplan done mine for me
x

longforthesun

Darth_chaffinch Lloyds are funny they told me they will not accept our dmp and want an additional £13 a month. I said i cant afford it and they told me they will not stop interest or charges till I up my payments. Got my statement through yesterday and they have not charged me interest or charges and interest for next month is showing £0.00. I did send a CCCA request so i don't know if that has anything to do with it (not yet heard back on the CCA request they have a few more days to reply). I would write a complaint letter to them stating that there refusal to stop interest and charges could jepordise the agreement you have with other creditors who have stopped all interest. I am sure someone said to put Formal Complaint in bold lettering at the top of the letter to get their attention.

cloudnine_2

I've seen mention on this site of people claiming past interest and other charges from their creditors. My question is: If you'ev agreed a 'no interest' DMP with the creditors, won't they take a dim view of you trying to claw back charges? In other words, the creditor might think " Hey, we've been accomodating agreeing to your DMP, and now you're asking for money back".
I'd love to go ahead and claim but, I'm feeling a bit wobbly at how my eight creditors will react come review time.

Bigdi

Hi all, someone asked about this the other night. Go to this link for some interesting news http://www.glitec.co.uk/2008/05/debt-advice-companies-and-charities-get-new-powers/. Good luck!

Ex-Spendaholic

Thanks for that link Bigdi.

Cloudnine, I am reclaiming charges from all the creditors on my DMP. I was scared about this too. I sat for a year wanting to do it but scared to take the step. I'm pleased to say I've had great success and am getting my charges back without much effort (well apart from Cahoot and Creation Finance who I have referred onto the Ombudsman). The money refunded goes towards the debt with them.

Give it a go.