DMP Mutual Support Thread - Part 12

ironingpile · 7 April 2018 at 2:53PM

sourcrates wrote: »

You should write and tell them yes, but please remember, only a court can decide one way or another if a particular agreement is unenforceable or not.

When we find these glaring errors in agreements, the creditor could, if they so chose, take the matter to court for the judge to decide, but the majority of the time, due to costs, likelihood of losing etc, that does not happen.

I am just airing on the side of caution here, mostly they roll over, or sell the debt on, but just so that you are aware of the fact that, that, could happen, its extremely unlikely, but possible.

Thanks sourcrates.

Onebrokelady · 7 April 2018 at 11:13PM

I've made two payments to my DMP with SC so far,today I got an email from NatWest saying my account has reached its limit and I need to pay in funds to get it back in credit,this is my OD on my old account and it's in my DMP,I also got a letter from MBNA saying I need to pay now,I'm taking it I just ignore both of these seeing as they are in my DMP,I wrote to them both a few weeks ago telling them I can't pay my contracted payments and to contact me by letter only,they have all acknowledged that I'm in a plan with SC and have threatened to default me already but obviously haven't done so yet

Leanneglos1 · 8 April 2018 at 7:55PM

Hi all, been with step change since November, Ive decided I!!!8217;m going to go self managed using Nedcab, advice on how to stop my step change payments and transition to self managed, do I need to give step change any notice of period and do I keep using them until I!!!8217;ve had a response from all creditors and set up my own standing orders to them? When contacting creditors do it just ring customer services number and ask to speak to the collections team? Thanks

Daydreambeliever · 9 April 2018 at 11:27AM

Leanneglos1 wrote: »

Hi all, been with step change since November, Ive decided I!!!8217;m going to go self managed using Nedcab, advice on how to stop my step change payments and transition to self managed, do I need to give step change any notice of period and do I keep using them until I!!!8217;ve had a response from all creditors and set up my own standing orders to them? When contacting creditors do it just ring customer services number and ask to speak to the collections team? Thanks

Hi, when I went self managed I wrote to SC advising them that from such a date I will be going self managed, you should find a template letter on the NEDCAB website. I then wrote to my creditors advising I was seeking advice from NEDCAB, quoted the reference number and asked for an up to date balance and payment details. I also asked to be contacted by writing only. For the first month, while getting all the details from the creditors I made no payments. Once I received the up to date balances and payment details, I wrote back, sending the NEDCAB I&E form (but tweaked so that they would receive the same payment as with SC) and advised that I would be making token payments until such a date due to unexpected household bills. Again, you should find letters on NEDCAB and just tweak as necessary. I paid token payments for the first few months to build up an emergency fund, something I was never able to do with SC. Most were happy with this, however, Very were an absolute nightmare to deal with. Hope this helps and good luck with the self managing. I only wish I had done it sooner and it's all thanks to the wonderful people on here x

2017spark · 9 April 2018 at 12:35PM

2017spark wrote: »

Thank you
They have just replied to my latest mail saying that they do not recognise CAB advice as being in a DMP - so wont add this to my account and allow a payment plan.
They want me to get a DMP via SC/ PP etc - I'm not doing this as want to be self managed. Any advice as to how I can get them to recognise it? I have my offer letters, financial statement, reference number etc from NEDCAB which I am going to resend them.

Am I best asking them to pass to a debt collection agency and dealing with them?

thanks again xx

Hello all, I think this got lost over the weekend - does anyone have any advice on how I can get them to recognise a SM DMP? I don't really want to return to a DM company but will if I have to

thanks,
X

January2015 · 9 April 2018 at 1:15PM

2017spark wrote: »

Hello all, I think this got lost over the weekend - does anyone have any advice on how I can get them to recognise a SM DMP? I don't really want to return to a DM company but will if I have to

thanks,
X

Apologies - I did see this over the weekend, but needed to spend time digging up information on this for you, which I have done this morning.

The Lending Code was replaced by The Standards of Lending Practice in 2016 (shortly after I went self managed).

The old Lending Code used to state in section 212 :

212. Personal customers may choose a self-help approach to negotiating debt repayment. Subscribers should ensure that
such proposals are given equal consideration as those presented through a debt adviser.

This made it very clear and straightforward for those of us wishing to move to self-managing our DMPs, but is of absolutely no use to use now

However, it is not quite so clear and straightforward in the new Standards of Lending Practice. What this states is:

9. Firms should consider freezing or reducing interest and charges when a customer is in financial difficulty.
[CONC 7]

The important bit here is that little 'Conc 7' That relates to the Financial Conduct Authority (FCA) - and I think CONC stands for consumer credit sourcebook (I think!). Anyway, in Conc 7 of the FCA there is a statement as follows:

CONC 7.12.2 A firm must not

(3) refuse to deal with a customer who is developing a repayment plan, a third party who is assisting a customer to develop a repayment plan or a third party who is developing a debt management plan for the customer's debts,

unless there is an objectively justifiable reason for doing so

;
[Note: paragraphs 3.9c of DCG and 3.49b of DMG]

AND (and I think this is the important bit for you)

(5) operate a policy:
(a) of only negotiating the freezing of interest and charges on a customer's debts where the lender has an existing arrangement with a person acting on behalf of the customer; or
[Note: paragraph 3.49e of DMG]

So, the important bit there is paragraph 3.49e of the DMG, which states:

3.49 Examples of potentially unfair or improper business practices include:

e. operating a policy of only entering into negotiations about, and/or
agreeing to freeze, interest and charges, if the consumer has engaged
the services of a specific representative; with whom the creditor has
an arrangement

So - if it were me, I would send them a letter and quote all that bumpf above and let them know you know your rights, even if they are now hidden deeply in the various bits of code with the Standards of Lending Practice. You are entitled to self manage your DMP and they are trying it on.

Pheww.... that took a fair bit of digging to find the relevant bits to make an argument. Not as easy as it was when it was the old Lending Code. :T:T

Oh - edited to add that DMG is The Office of Fair Trading Debt Management Guidance

[Deleted User] · 9 April 2018 at 1:27PM

January2015 wrote: »

Apologies - I did see this over the weekend, but needed to spend time digging up information on this for you, which I have done this morning.

The Lending Code was replaced by The Standards of Lending Practice in 2016 (shortly after I went self managed).

The old Lending Code used to state in section 212 :
212. Personal customers may choose a self-help approach to negotiating debt repayment. Subscribers should ensure that
such proposals are given equal consideration as those presented through a debt adviser.

This made it very clear and straightforward for those of us wishing to move to self-managing our DMPs, but is of absolutely no use to use now

However, it is not quite so clear and straightforward in the new Standards of Lending Practice. What this states is:
9. Firms should consider freezing or reducing interest and charges when a customer is in financial difficulty.
[CONC 7]

The important bit here is that little 'Conc 7' That relates to the Financial Conduct Authority (FCA) - and I think CONC stands for consumer credit sourcebook (I think!). Anyway, in Conc 7 of the FCA there is a statement as follows:
CONC 7.12.2 A firm must not

(3) refuse to deal with a customer who is developing a repayment plan, a third party who is assisting a customer to develop a repayment plan or a third party who is developing a debt management plan for the customer's debts,
unless there is an objectively justifiable reason for doing so
;
[Note: paragraphs 3.9c of DCG and 3.49b of DMG]

AND (and I think this is the important bit for you)
(5) operate a policy:
(a) of only negotiating the freezing of interest and charges on a customer's debts where the lender has an existing arrangement with a person acting on behalf of the customer; or
[Note: paragraph 3.49e of DMG]

So, the important bit there is paragraph 3.49e of the DMG, which states:
3.49 Examples of potentially unfair or improper business practices include:

e. operating a policy of only entering into negotiations about, and/or
agreeing to freeze, interest and charges, if the consumer has engaged
the services of a specific !!!8216;representative!!!8217; with whom the creditor has
an arrangement

So - if it were me, I would send them a letter and quote all that bumpf above and let them know you know your rights, even if they are now hidden deeply in the various bits of code with the Standards of Lending Practice. You are entitled to self manage your DMP and they are trying it on.

Pheww.... that took a fair bit of digging to find the relevant bits to make an argument. Not as easy as it was when it was the old Lending Code. :T:T

Oh - edited to add that DMG is The Office of Fair Trading Debt Management Guidance

Jan, just wanted to congratulate you on the very clear and thorough advice you have given:T. You are an absolute star to have taken all the time and trouble to help:A

The information isn't applicable to me at the moment, although I read it with interest, as all my creditors accepted my SM DMP with no quibbling. I'm doing all in my power to offer F&Fs to the whole lot of them by the end of this year so hopefully I'll then be rid of the lot of my creditors:j

January2015 · 9 April 2018 at 1:29PM

carbootcrazy wrote: »

Jan, just wanted to congratulate you on the very clear and thorough advice you have given:T. You are an absolute star to have taken all the time and trouble to help:A

The information isn't applicable to me at the moment, although I read it with interest, as all my creditors accepted my SM DMP with no quibbling. I'm doing all in my power to offer F&Fs to the whole lot of them by the end of this year so hopefully I'll then be rid of the lot of my creditors:j

Thank you CBC :beer:

You know me..... I love to quote their own jargon back at them. Often I find they don't even know it themselves and I end up teaching them the rules of debt management :rotfl:

2017spark · 9 April 2018 at 1:30PM

January2015 wrote: »

Apologies - I did see this over the weekend, but needed to spend time digging up information on this for you, which I have done this morning.

The Lending Code was replaced by The Standards of Lending Practice in 2016 (shortly after I went self managed).

The old Lending Code used to state in section 212 :
212. Personal customers may choose a self-help approach to negotiating debt repayment. Subscribers should ensure that
such proposals are given equal consideration as those presented through a debt adviser.

This made it very clear and straightforward for those of us wishing to move to self-managing our DMPs, but is of absolutely no use to use now

However, it is not quite so clear and straightforward in the new Standards of Lending Practice. What this states is:
9. Firms should consider freezing or reducing interest and charges when a customer is in financial difficulty.
[CONC 7]

The important bit here is that little 'Conc 7' That relates to the Financial Conduct Authority (FCA) - and I think CONC stands for consumer credit sourcebook (I think!). Anyway, in Conc 7 of the FCA there is a statement as follows:
CONC 7.12.2 A firm must not

(3) refuse to deal with a customer who is developing a repayment plan, a third party who is assisting a customer to develop a repayment plan or a third party who is developing a debt management plan for the customer's debts,
unless there is an objectively justifiable reason for doing so
;
[Note: paragraphs 3.9c of DCG and 3.49b of DMG]

AND (and I think this is the important bit for you)
(5) operate a policy:
(a) of only negotiating the freezing of interest and charges on a customer's debts where the lender has an existing arrangement with a person acting on behalf of the customer; or
[Note: paragraph 3.49e of DMG]

So, the important bit there is paragraph 3.49e of the DMG, which states:
3.49 Examples of potentially unfair or improper business practices include:

e. operating a policy of only entering into negotiations about, and/or
agreeing to freeze, interest and charges, if the consumer has engaged
the services of a specific representative; with whom the creditor has
an arrangement

So - if it were me, I would send them a letter and quote all that bumpf above and let them know you know your rights, even if they are now hidden deeply in the various bits of code with the Standards of Lending Practice. You are entitled to self manage your DMP and they are trying it on.

Pheww.... that took a fair bit of digging to find the relevant bits to make an argument. Not as easy as it was when it was the old Lending Code. :T:T

Oh - edited to add that DMG is The Office of Fair Trading Debt Management Guidance

January - you are a superstar! Thank you so much - I'm going to send a letter today with this - and include all previous documentation such as I&E etc. Fingers crossed, these are my only awkward ones! Thanks again xx

January2015 · 9 April 2018 at 1:32PM

2017spark wrote: »

January - you are a superstar! Thank you so much - I'm going to send a letter today with this - and include all previous documentation such as I&E etc. Fingers crossed, these are my only awkward ones! Thanks again xx

No problem. It's nice to have the time to look this stuff up (redundancy will do that

)

Good luck - and let us know how you get on

DMP Mutual Support Thread - Part 12

Comments

Categories

Get our FREE Weekly email full of deals & guides - and it’s spam-free