DMP Mutual Support Thread (Part 4)

Rabbit-in-headlights

andreweduk wrote: »

I just got a letter in the post today from Style Financial services, issuing a default notice on my account.

I'm on a DMP, so I guess this is normal and nothing much to worry about?

That's right, from reading others on here, a default notice will stay on your credit file for 6 years so the sooner you get them, the sooner they disappear from your file. They are just a formal notice that you have not kept to the contractual payments. Some creditors sell on debt to a DCA once a default notice has been served, and/or stop interest/charges, so not necessarily a negative thing;)

I recently received a letter the A&L stating that, because my arrears were now above a certain level, they were about the send me a default notice, but so long as I keep to my DMP payments they won't take any further action.

Hope this helps,

RiH

ruthie70

coolcait wrote: »

Hiya ruthie

I was having a browse on all things Scottish and came across your post.

If you're looking at a DMP, then DAS could be a good option for you - although you'd probably have to make more than token payments.

This website tells you more about it www.moneyscotland.gov.uk

You do need to go to a specialist DAS money adviser to see if you'd be eligible and have it set up, but it's not just CAB money advisers who do it - quite a few local authorities also have DAS advisers. You can have a look on this register http://www.moneyscotland.gov.uk/das/das_display.jsp?pContentID=247&p_applic=CCC&p_service=Content.show&

If you're accepted onto DAS, your creditors will have to freeze interest, fees and charges (by law). And they can't take any kind of action to make you pay more than has been agreed. They can't touch your house.

It's not an overnight solution, but if it looks like an option for you, then you (or your money adviser) can put in a formal notice of interest in the scheme (an 'intimation'), and that will give you six weeks' protection from any legal action by your creditors. It's probably worth your while checking with a DAS adviser before you do put in this formal notice yourself, as once those six weeks are up, your creditors can take action against you - at least until you formally apply for DAS (if it's right for you). And you can't put in another intimation for another year.

Here's the application form you would send to the Accountant in Bankruptcy if you did want to put in an 'intimation':

http://www.moneyscotland.gov.uk/das/files/Notice%20of%20Intimation%20of%20an%20intention%20to%20apply%20for%20approval%20of%20a%20debt%20payment%20programme.pdf

I don't know how much of this is actually relevant to you, but I hope it helps in some way.

Thanks coolcait, really appreciate your advice. I received the paperwork from my assigned money advisor but I found the paperwork to be very basic and not nearly as polished and informative as the CCCS - I also felt it was too close to home, everybody knows someone's auntie, cousin, friend etc. in my region! I know DAS might be the way to go but I really feel the CCCS are a tower of strength and I like the way I can go online and view my DMP etc. Hope I am not making another financial mistake by not going down DAS route but my main reason for the DAS would be because of my £19,000 NR loan (mortgage also with them). However I have worked out that NR will actually get a pro-rata payment of £218 (they get £197 at the moment) and I am hoping this will "please" them!

I am thinking that if the DMP with CCCS is not a success as far as Northern Rock are concerned I could then try and do the DAS as another option. What do you think? I just want my DMP up and running ASAP (due 1 December) and going down the DAS route means more worry and waiting.

ruthie70

Hi Amy - welcome to the site. I've only been around a couple of weeks and find it's a godsend. It must be frustrating having to wait so long for an appointment. Have you completed your debt remedy online? Once I completed this I called them and they send me out an agreement and everything. I did have to make an appointment with a Scottish advisor as I had a few issues that I needed clarification on before I start my DMP. I really can't believe how many years I stuck my head in the sand and regret so many of my previous financial mistakes. However, it's happened, but going down this route has been a huge learning curve for me. Mortgage aside, I don't think I will ever get take out credit again - even if I could!!!

Wishing you well in getting your DMP set up :T

Althea

Amyboo wrote: »

So, after reading advice on here and actually having the lightbulb moment we've decided to contact the CCCS. A counsellor is going to ring us back but not until the 18th which feels like ages away. I just want to get the ball rolling and get started.

I hope we get accepted on the plan as I feel it would relieve so much pressure. My husband and I have opened a new bank account with the Nationwide and I'm going to let all the people know who pay into our account our new bank details today.

My worry is, that we have visa card payments due on the 12th and the 14th and theres definitly no money in the pot to pay these. What shall we do? Do we write to them and let them know that we're in contact with the CCCS? or do we sit and wait until we've had the phone call off the counsellor?
.

Hi Amy -

Sorry to hear you've had such an awful time of it. Be positive ... at least things should only go upwards now ..

First off have you done the online CCCS debt management thingy (sorry, it's late, the correct term escapes me) to see that a DMP is the right thing for you? I actually did all my CCCS dealings via this tool (and then email), I've never actually spoken to a real live yooman bean

Are your credit card payments due by DD? If so, it might be worth cancelling them. You can send your creditors a letter such as that in http://www.consumeractiongroup.co.uk/forum/letter-templates/ - letter "Original Creditor - asking to hold action" I suggest initially, but add in a small comment to the effect of you are including a token payment to cover this month's payment in the "while I seek advice" para. You will probably need to register to view the templates here, but it's free and extremely well worth it - there's a LOT of very useful info on the CAG site (try the Dealing With Debt - Getting Out Of Debt board for a start) as well as some very helpful people. Almost as helpful as the people here

Bear in mind that there is another thread on this DFW board, stickied, called "Ask a CCCS Counsellor a question" - you can always ask any questions in there too, and a CCCS chap/chapess will answer them for you.

Hope this helps!

Amyboo

Thanks for your replies.

We make manual payments for the visa's so I'm going to print the covering letter off and send a token payment. Would a token payment for a £1 be ok or more? Is it better to send a postal order or a cheque?

I got myself quite stressed out yesterday but I'm feeling a little better today. I spent most of the day getting everything sorted out and changing bank details with everyone(other than the creditors)

I will have a nosey through the CCCS thread now.

symesd

Hi all,

quick question, with Christmas fast approaching and a distinct lack of spare cash do you think I could ask CCCS if I can skip my next payment so I can get a few gifts for the kids, and pay token payments for that month or will they just laugh at me!

I don't want the kids christmas to be spoilt, and I cannot get them nothing at all, it's just not right..

thanks

D

Rabbit-in-headlights

ruthie70 wrote: »

Hope I am not making another financial mistake by not going down DAS route but my main reason for the DAS would be because of my £19,000 NR loan (mortgage also with them). However I have worked out that NR will actually get a pro-rata payment of £218 (they get £197 at the moment) and I am hoping this will "please" them!

Hi ruthie, are you sure that your DMP payment to NR would be more than your current payment? CCCS base your payments on your existing monthly repayments, not on the total amount outstanding, so I think you'll find all your payments are lower than pre DMP?

Hope that makes sense?

RiH

ruthie70

Rabbit-in-headlights wrote: »

ruthie70 wrote: »

Hope I am not making another financial mistake by not going down DAS route but my main reason for the DAS would be because of my £19,000 NR loan (mortgage also with them). However I have worked out that NR will actually get a pro-rata payment of £218 (they get £197 at the moment) and I am hoping this will "please" them!

Hi ruthie, are you sure that your DMP payment to NR would be more than your current payment? CCCS base your payments on your existing monthly repayments, not on the total amount outstanding, so I think you'll find all your payments are lower than pre DMP?

Hope that makes sense?

RiH

Hi RiH - maybe I am not working out the pro-rata payment correctly...what I did was list all the debts and got the total outstanding £43,043 - I worked out that NR had £19,500 due to them which would be multiplied by my surplus cash £450 then divided by the £43,043 = £203.86. I think I got the way to calculate this from the CCCS website. However, perhaps they work it out differently depending how much you are currently paying - if that's the case will have to see what the CCCS propose to pay everyone....;)

ruthie70

Amyboo wrote: »

Thanks for your replies.

We make manual payments for the visa's so I'm going to print the covering letter off and send a token payment. Would a token payment for a £1 be ok or more? Is it better to send a postal order or a cheque?

I got myself quite stressed out yesterday but I'm feeling a little better today. I spent most of the day getting everything sorted out and changing bank details with everyone(other than the creditors)

I will have a nosey through the CCCS thread now.

Amy - I think it's advised on here to pay the token payments by postal order so they don't get hold of your new bank details etc. However, these are pricey - a £1 postal order costs an extra 50p fee :eek: I mentioned this to the CCCS and the lady said I should try paying using the bank giro slip at the bottom of the bill. This is another think to be careful with as some companies have a standard fee which can be about £2.50, others are free.

Althea

ruthie70 wrote: »

Amy - I think it's advised on here to pay the token payments by postal order so they don't get hold of your new bank details etc. However, these are pricey - a £1 postal order costs an extra 50p fee :eek: I mentioned this to the CCCS and the lady said I should try paying using the bank giro slip at the bottom of the bill. This is another think to be careful with as some companies have a standard fee which can be about £2.50, others are free.

I asked the CCCS about this, as I didn't see why my creditors knowing about my new bank account is a big deal - basically because they can know about your new account (the existence of it anyway) any time they please - it's on your credit file! And them having account number, bank address etc makes no difference - they can't touch anything in your new account, assuming your new account isn't affiliated in any way to your existing creditors. So I was rather confused at the advice given to avoid sending cheques from your new bank account to pay the token payments, and asked the CCCS advisor about it. Their response actually confirmed what I thought - it makes no difference if your creditors have your new account details, they can't touch it. I was told I could quite safely send cheques from my new account if I preferred to do it that way ... and since I'm (now) a tight-you-know-what, I didn't want to pay the extra for postal orders!!

Just my tuppence worth (and not really worth even that much in today's financial climate!), do with it as you wish