DMP Mutual Support Thread (Part 4)

MurrayMint

Another update...
* Got a letter from GE saying they will accept our CCCS DMP payment offer.
* And a letter from MBNA saying that they will not accept our DMP, so our account is continuing to fall into arrears, but they have suppressed all charges and interest. It does go on to talk about how only a small increase in our payment would allow them to accept us onto a proper payment plan with them, which would allow us to rebuild our credit rating. But if we couldn't do this, then they will sell the debt on (as per their standard policy)

I thought not a bad day's post today!!!!

claireyfairy31

bauctu wrote: »

I got a letter from GE Money saying they will not accept my offer of reduced payment as I have used the card recently. I was using it right up until going for the DMP but not since. It was the only way of buying anything I had left! Has anyone else had this problem?

Hi Bauctu

I had the same problem with GE- they won't accept reduced payments if you have made a purchase in the last three months. I spoke to someone there and they just said that I should resubmit my repayment proposal once three months had passed after the last purchase. In the meantime, CCCS just kept making the payments on my behalf (which were accepted) and then the payment proposal was formally accepted after the three months had passed. GE issued a default notice and have now passed the debt onto CL Finance who, touch wood, have continued to accept the payments.

Hope this helps.

x

claireyfairy31

SerenaGoode wrote: »

Hi Clairey,

Haven't gone down the DMP plan yet, so can 't advise on how difficult they'll be. But I'm damn sure that managed loans are a massive rip-off. And they don't look great on your credit file anyhow, so may as well stick to your guns. You'll only end up giving them money you can't afford.

For what it's worth I can trump you. HSBC are my bank, and I have about £25K outstanding debt with them. Should be fun chatting to them about that when it comes to telling them I want to stop paying interest...

Good luck, and just remember they can't get blood out of a stone. :rotfl:

Thanks Serena! I have found that much depends on who answers your call when you speak to HSBC. I have had experiences where I have called and had nightmare response from hell and then called straight back only to get the most helpful person in the world so good luck to you too!

newlywed

bauctu wrote: »

I got a letter from GE Money saying they will not accept my offer of reduced payment as I have used the card recently. I was using it right up until going for the DMP but not since. It was the only way of buying anything I had left! Has anyone else had this problem?

Don't panic. They did this to me too, immediately they received the DMP proposal from CCCS. Then a couple of months later they accepted and stopped all the interest.

By the way GE - no department communicates with the other so just wait for a few different departments to write to you (After they sent the letter accepting the DMP and stopping interest, they sent another one from a different department saying they refused it :rolleyes: - they did accept and stop interest )

newlywed

Althea wrote: »

Also, I'd just like to query something. I've read all of the posts in this thread (took me a loooooooong time! ) and I've seen - or at least I *think* I've seen - the general opinion that your credit rating is only wrecked for 6 years from the time the defaults get put onto your credit report. Is that right, do I remember reading that info correctly? Only I've just read in that CCCS Debt Remedy booklet thingy the following:

<quote>
When you are making reduced payments to your creditors it is almost certain that your credit file will be adversely affected. This information is held for 6 years after the debt has been repaid so it is unlikely you will be able to obtain more credit and it may be some time before your rating will improve.
<end quote>

Which says to me that your credit rating is shafted for 6 years AFTER the DMP is completed ... so even when you're fully back in the black, that means still no getting credit of any kind, difficulties with mortgages, etc. And that scares me almost as much as the court proceedings warnings ... !

OK 18 months into my DMP here are my thoughts (I've checked my credit file a couple of times).

Default notices stay on your account for 6 years from date of default. So earlier you get these, the better - as the sooner they will drop off the file

But, not every creditor defaults you. One has marked me down as "arrangement to pay" and then noted down that each of my payments are late (because it's not the full original amount). Therefore I assume that this late payment will then show up for 6 years from the time I pay it off.

Another creditor has marked me down as "DMP" and similar to above.

Another has not marked anything bad on my credit file yet but is still charging a small amount of interest 6.2%. They are now getting funny about me reducing my DMP payments and I am fully expecting another default shortly - fingers crossed the interest will stop


So yes I think it can "affect" your credit file for 6 years after you pay off the debt. But late payment notes and "arrangements" are much less damaging to your credit file than bankruptcy or IVA because you show you are trying to pay them all off in full, and you have made regular arrangements to pay them a set amount.

cloudnine_2

Hi Everyone, interesting discussion about how a DMP can affect your credit history and, moreover the potential affect on applying for a new mortgage.
The credit history part is really in the 'lap of the gods.' As stated previously, any defaults will stay on your file for six years. Personally, I want any of my creditors who intend to default me to do it quick for obvious reasons.
The question od obtaining a new mortgage is really the same as obtaining any new loan, because thats what a mortgage is in reality. I have eight creditors am on a DMP with CCCS. My car loan comes to an end in January following four years of paying on the button every month. The balloon payment in January will be £16K and I simply won't have it. Mercedes say they'll repossess the car if I can't pay...I asked if they could extend the loan by a further four years but, under my CCCS contract I'm not supposed to take out a new loan anyway...Mercedes refused anyway..'Double whammy !!'
I have a feeling this is what might happen if I apply for a new mortgage or, try to refinance my existing one as the lender will always look at my credit file.. Worrying I agree but a sound message not to make any moves in selling your house until you've got confirmation in writing from your lender that they will refinance or replace your mortgage with a new one.

rayday2

I don't think with the whole financial climet as it is that anyone can predict how companies will react and make decisions based on histories etc.

I was nearly two years into my DMP and got a remortgage this year and if I am a good girl in two years time they will remortgage me again ignoring my credit history as a mainstream customer and save me even more money. Being good involves not missing mortgage payments.

They took my DMP as me realising there was a problem and doing something about it other than reborrowing. If I had an IVA or bankrupcy they wouldn't have touched me. So it seems companies do like DMPs more than the other solutions.

He did say that other high street lenders were thinking about taking on sub prime but not sure if that is still the case. But if you think about it more and more people are hitting a crisis, banks calling overdrafts in, cards etc that if they never take risks borrowing people money then there market share will drop as more and more people become less than clean.

rayday2

Kudox wrote: »

I have had nothing but bad responses from all my creditors after I sent my token payments,in fact none apart from egg have even acknowledged I have contacted them! I guess it's all just pot luck what they will or won't accept?

Added you to the list on page 2, so officially you are member number 238 welcome! :T

ianmak

I don't think I'd ever want credit again after all this is over. Only my mortgage to worry about, which I've never missed a payment, not sure what happens next year, if I want to go onto a new fixed rate...

Bad day for phone calls this week. NR, MBNA & Amex all phoning up day after day. Told them each day the same. What's the point in answering the phone and being co-operative if they're just going to ring back again the next day. Grr. Amex are the only ones who apologise (three days running) for phoning you in error. Argh.

Jvic28

Hi everyone,

I've got my 1st review with CCCS tomorrow. I've only been making payments to them since 1st August. Is it normal to have a review this soon. What can I expect. I'm a bit nervous because so far everything has been dealt with online, but this time I'm going to have to speak to someone.