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DMP & Mutual Support Thread - Part 11

edited 12 July 2015 at 9:50AM in Debt-Free Wannabe
5.1K replies 1.1M views
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  • zay475zay475 Forumite
    7 posts
    Thank you so much Sazzie, you and the others have helped me so much today. It is very much appreciated and I will sleep a lot better tonight thanks to you.

    Kind regards
  • Suseka97Suseka97 Forumite
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    zay475 wrote: »
    Hi sourcrates,

    Thanks so much for your quick reply, it is much appreciated. Do you know if stepchange ask for proof of income in the yearly review? I had to give them proof when I started the DMP last august, however I can't see any recent posts saying whether or not they ask for it in an annual review. I found a post from dec 2015 saying they don't, but on their site they mention that they are bound by the FCA to do a yearly review now, even though they always have. I can't seem to find out whether showing proof of income is a new mandotary rule too. It's very confusing lol.

    I've just completed my 4th and final annual review online and, as before, all I've done is updated my income and adjusted a few outgoings (such as gas, electric, council tax). I've not been asked to provide proof of any adjustments. I guess if my monthly payment to SC was to drop significantly as a result, then I would expect to hear from them -but each year my payment has risen (albeit only a small bit).

    As has been said - whilst your income might have risen a little, so have your costs. The DMP arrangement is an informal one and it's yours to control. You're paying your debts and that's the main thing and the plan has to work for you. If you want to have that little extra income to add to your emergency fund, or for a little luxury every now and then - go for it, what's the harm :)
  • Suseka97Suseka97 Forumite
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    sourcrates wrote: »
    If you have defaults on your credit file, its likely you may be rejected for a current account, only way to know is to apply.

    A basic account is no different to a normal current account in many ways, obviously there is no borrowing facility, but most come with a chip an pin debt card, all do DD, SO, etc, and they are open to anyone, as long as your identity can be established, and you have no history of fraud, and no credit check is required.

    Thanks Sourcrates - as you say I think I'll just do a bit of research on which account might be best and have a go online. In truth all I need is a pin card and DD/SO functionality - so if I can't get a normal, a basic will do. I was just concerned that I might get rejected for a basic too -but from other replies that sounds unlikely.
    Firstly, Suseka, massive congratulations on how successful you've been in paying off your debt so far. That's a lot to have paid back in a relatively short time and it must be wonderful to now be counting down to the end in months rather than years. Don't forget to come back when you are finally debt-free so we can celebrate with you.
    As for bank accounts I'm surprised anyone's said that people on DMPs can get turned down for a basic account. That's definitely news to me as I was under the impression that everyone was allowed a basic account. I'm sure there was some sort of Government intervention in the banking sector to ensure that no one should be excluded from basic banking facilities.
    The FlexBasic I have (and others on here do too) is excellent for a basic account and can be fixed up completely online very quickly. Lots of other banks available, just make sure it isn't a bank you have any debt with (or one of the other financial institutions under it's 'umbrella').
    Good Luck:beer:

    Thanks Carbootcrazy: It's been tough and my monthly repayment is probably too high - but at the outset with SC they were quite tough in terms of what outgoings they allowed and because I was so new to it, I just went along. As I got into the stride of the DMP I just got used to it I guess and then just fixed my mind on the DFD. If I had my time again, and my advice to others would be, is not to get pushed into paying too high a repayment amount and allow yourself to live a little -even if the DFD is longer.

    Looking back at the main forum the threads where folks were saying that they were refused a basic account were quite dated (didn't spot that at first) so I imagine the legislation you mention has remedied that issue. I'll look at the Flexbasic and I might approach Nationwide where my mortgage is held and see where that takes me. I guess I was worried that at the outset of a DMP, when most folks change their account - they won't have the defaults etc that would show up on a credit search. Anyways, I've got to change so I might as well just apply and see what happens.

    I do pop on the forum from time to time -just to keep an eye on everyone and post if I think I can help -so I will definitely be back to celebrate with y'all when I reach my DFD :D
  • Suseka97Suseka97 Forumite
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    Suseka97 wrote: »
    .......I'll look at the Flexbasic and I might approach Nationwide where my mortgage is held and see where that takes me

    Oops, just realised Flexbasic is a Nationwide account - doh! Guess that's what I'll be doing then :)
  • Suseka97 wrote: »
    Oops, just realised Flexbasic is a Nationwide account - doh! Guess that's what I'll be doing then :)

    Not sure whether it's a good idea to have a bank account with your mortgage provider. I know a mortgage is a debt but presumably it's not part of your DMP so the situation may be different. I don't have a mortgage to worry about, thank goodness, it was very small anyway(oh, the good old days:j) and has been paid off years ago.
  • edited 26 March 2017 at 10:28AM
    [Deleted User][Deleted User]
    0 posts
    edited 26 March 2017 at 10:28AM
    zay475 wrote: »
    Thanks beingdebtfree, much appreciated. Has anyone had a recent yearly budget review, did they require any proof of income? it's very difficult to find out if it is part of the annual review. Huge thanks to everyone for the advice.


    Please don't worry about it. In my 4 reviews, whether online or by phone, I was never asked to send any proof. They did ask me though if my income had gone up at all. I'm on pensions and there is a tiny (laughable) yearly increase which they would know was happening. I just 'compensated' for it by upping my outgoings (which were genuine anyway) and my monthly payment stayed pretty much the same.


    Just do what's right for you. Good Luck:beer:
  • Tiggerlou wrote: »
    Wescot have taken over Lloyds and BOS credit cards and got a letter saying they will stick to the agreement with stepchange and the repayments... has any one had any dealings with them? Thanks

    Hi Tiggerlou

    I received letters only yesterday from Lloyds and Westcot about Westcot taking over the management of my Lloyds credit card account.

    Please don't worry about this as Westcot have been managing one of my other debts for about 2 years and everything has run like clockwork with them:T
  • sourcratessourcrates Forumite, Board Guide
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    Old thread now getting a bit large, so have started a new one, which can be found here :

    http://forums.moneysavingexpert.com/showthread.php?t=5623951
    I'm a Board Guide on the Debt-Free Wannabe, Credit File and Ratings, Bankruptcy And Living With It, boards. "I volunteer to help get your forum questions answered and keep the forum running smoothly".
    Board guides are not moderators and don't read every post. If you spot an abusive or illegal post then please report it to:
    [email protected].
    Any views expressed are mine and not the official line of MoneySavingExpert.com.
    For free debt advice, contact either : Stepchange, National Debtline, CitizensAdviceBureaux.
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