DMP Mutual Support Thread (Part 4)

newlywed

Just a quick note something for people to keep an eye on...
http://uk.news.yahoo.com/pressass/20080714/tuk-santander-confirms-1-26bn-a-l-bid-6323e80.html

I have A&L account but presumably if it does go ahead and they are merged in with Abbey at some point, this may affect those who have their "safe bank account" for the DMP with one and a debt to the other!!

louietudor

newlywed wrote: »

Just a quick note something for people to keep an eye on...
http://uk.news.yahoo.com/pressass/20080714/tuk-santander-confirms-1-26bn-a-l-bid-6323e80.html

I have A&L account but presumably if it does go ahead and they are merged in with Abbey at some point, this may affect those who have their "safe bank account" for the DMP with one and a debt to the other!!

my thoughts exactly - ive posted a thread on DFW to see if anyone has thoughts

rayday2

Sorry folks I was relieved that it was santander after A&L as I already bank with Cahoot.

I think it will depend on what the terms are and they would have to warn you I think like Lloyds did last year about people with mortgages with Cheltenham and Gloucester.

louietudor

i think i may be reading more into it than i need to as abbey are owned by santander but mbna is american - i think mbna just administer the cc as it does for a&l - has anyone had money taken from their abbey account for an mbna debt??

pinksparkle_2

newlywed wrote: »

One default per account (so if you have a loan and a credit card with the same company, you could get two).

Some default, some don't. I have only had 2 defaults, on 5 debts (so far). Some only stop interest after the default notice.

It does seem to depend on the weather :rolleyes: as to when they issue it - Mint credit card issued it after 4 months on the DMP. But Mint Loans took about 8 months to issue one. The others haven't issued one yet - but they still could do later on if they wanted to.

It stays on your credit rating for 6 years from the date of the default notice - which is why the sooner the better

If they dont default, will your credit report for that account just look like your paying the normal payments???

Pinksparkle

newlywed

pinksparkle wrote: »

If they dont default, will your credit report for that account just look like your paying the normal payments???
Pinksparkle

Not very likely
The ones that aren't defaulted show as "ARRANGEMENT TO PAY", one shows as "Debt management plan" with several late payment marks because I'm not paying the original amount.

Only one account shows "clean" and that's the ones that agreed but still charge me 6% interest :rolleyes: I'd rather a default and no interest thanks!!

pinksparkle_2

Im just wondering with all this credit crunch business, do you think that some creditors may look at us people that are either on or starting out on DMP are taking it upon ourselves to do the right thing. Im constantly worrying about how my credit rating is going to look when i come to remortgage in 3 years time, I would have thought that alot more people will have reached financial difficulty by then (If the Credit crunch is going to last as long as they think) and creditors will have alot more on their hands than us...!!! Wont the criteria for remortgages have to be more leanent as they will have to accomodate for people on DMP'S as so many people will be on them or be in a worse state?...Hardly anyone out there has a perfect credit rating anymore, and its only going to get worse for those havent taken the first step to repair it. So i think that in 3 years time alot more people will be where we are now, only we will have a few years on them...!!!

Pinksparkle

rayday2

Credit companies are not charities, if there are flaws on peoples histories they will use that as an opportunity to stick them on higher interest products. Remember that credit companies are being hurt by the credit crunch, banks are seriously worried so if anything they will learn from past lessons and make credit less available and I believe for a while definately not as cheap as it has been.

pinksparkle_2

rayday2 wrote: »

Credit companies are not charities, if there are flaws on peoples histories they will use that as an opportunity to stick them on higher interest products. Remember that credit companies are being hurt by the credit crunch, banks are seriously worried so if anything they will learn from past lessons and make credit less available and I believe for a while definately not as cheap as it has been.

But it must eventually settle down, for the likes of us???

You remortgaged on a DMP didnt you?....Was your rate much higher?

Pinksparkle
x

rayday2

Yes but it was a few months ago and since then high street products have gone up. I think I was very lucky. Previous to that I was on a poor credit product and my rates were 9.5% and it was a LIBOR rated mortgage which are bad news.

Of course it will settle down eventually but I believe it will get worse before it gets better and things cannot start to improve until we see just how bad things get. I genuinely believe we will go into a recession and technically we are not there yet.