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  • FIRST POST
    • Debtfreewannabe1
    • By Debtfreewannabe1 30th Aug 18, 12:32 AM
    • 5Posts
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    Debtfreewannabe1
    Paying off DMP running over 13 years old
    • #1
    • 30th Aug 18, 12:32 AM
    Paying off DMP running over 13 years old 30th Aug 18 at 12:32 AM
    Hi,

    In 2005 I entered DMP of over 40k inc all final fees etc I think my actual debt was around 32k. I currently have 17k left. Long story short Bankruptcy & IVA was not for me due to work and potential job loss. Paying at 300 a month (before their 50 fee) it works out I have around 5 years left to pay.

    Actual figures are hazy I just buried my head in the sand and just got comfortable paying the 300 a month. My circumstances are changing and im getting married my future wife would like a child and a house. I have been offered cash (family loan) to pay this balance off and been asked to see if i can get full and final figures. Then in turn I pay back that family loan at the rate of 300 a month and hoping to do that in 2 years or less.

    I have 3 creditors, Cabot (Egg) 2x Wescot (Lloyds credit card 7 loan)

    What are the chances of me offering up to 7200 (300 x 24) and getting a settlement between the 3. Any success stories? Anything I should watch out for? Should I Just leave the DMP running for another 5 years as none of the debts on my credit file?
Page 1
    • LOVEHB
    • By LOVEHB 30th Aug 18, 7:48 AM
    • 35 Posts
    • 25 Thanks
    LOVEHB
    • #2
    • 30th Aug 18, 7:48 AM
    • #2
    • 30th Aug 18, 7:48 AM
    I think as you have been under a dmp for an extended period of time the chances of you settling at partial settlements are high.

    I would start in offering 10% of the remaining debt. I managed to get 50% off mine with a bit of back and forth with the creditors but i suspect you are in a better position than me i hadnt been in my dmp for long (18 months). Ive noticed from other posts and research that people who had been in DMPs longer and owed more were managing to get lower partial settlements accepted.

    Make sure you get all settlement offers in writing and that they will mark your credit file and partially settled.

    Good luck!
    • fatbelly
    • By fatbelly 30th Aug 18, 7:59 AM
    • 13,108 Posts
    • 10,165 Thanks
    fatbelly
    • #3
    • 30th Aug 18, 7:59 AM
    • #3
    • 30th Aug 18, 7:59 AM
    You can but try.

    7200 against 17k is 42% which I think may be optimistic, particularly with Lloyds.

    There is a thread for these deals, and I think I can link to one poster who successfully achieved a lot of them. Lloyds and Cabot both feature

    https://forums.moneysavingexpert.com/showpost.php?p=69978335&postcount=1179
    • Suseka97
    • By Suseka97 30th Aug 18, 9:06 AM
    • 489 Posts
    • 613 Thanks
    Suseka97
    • #4
    • 30th Aug 18, 9:06 AM
    • #4
    • 30th Aug 18, 9:06 AM
    Hi there, you've had good advice so far -but I just wanted to ask a question. You say you're paying 300 per month, less a 50 fee. So have you been using a fee charging company? If so, whatever else you do or don't do - please stop paying someone else to handle your DMP.

    You are better off going self-managed and then start your F&F ball rolling. Whether you get good discounts or not, or have to play a slightly longer game - at least you'll be in control and all of your 300 can be thrown at the debt in the meantime.
    LBM April 2013 85k /14 Creditors
    SC DMP May 2013 - July 2017 (74k repaid)
    SM DMP July 2017 to date / 9k o/s
    • sourcrates
    • By sourcrates 30th Aug 18, 9:54 AM
    • 15,884 Posts
    • 14,937 Thanks
    sourcrates
    • #5
    • 30th Aug 18, 9:54 AM
    • #5
    • 30th Aug 18, 9:54 AM
    Agreed, Ditch the fee charging DMC.


    This service is available for free.
    I'm a Board Guide on the Debt-Free Wannabe, Credit File And Ratings, and
    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 forumteam@moneysavingexpert.com. Any views are mine and not the official line of MoneySavingExpert.com.

    For free debt advice, contact either : Stepchange, National Debtline, or, CAB.
    For Free Legal advice see : http://legalbeagles.info/
    • MEM62
    • By MEM62 30th Aug 18, 10:11 AM
    • 1,890 Posts
    • 1,529 Thanks
    MEM62
    • #6
    • 30th Aug 18, 10:11 AM
    • #6
    • 30th Aug 18, 10:11 AM
    Hi there, you've had good advice so far -but I just wanted to ask a question. You say you're paying 300 per month, less a 50 fee. So have you been using a fee charging company? If so, whatever else you do or don't do - please stop paying someone else to handle your DMP.

    You are better off going self-managed and then start your F&F ball rolling. Whether you get good discounts or not, or have to play a slightly longer game - at least you'll be in control and all of your 300 can be thrown at the debt in the meantime.
    Originally posted by Suseka97
    +1 On that.

    OP, there is no need to pay someone to manage your DMP. You can do it yourself or there are debt charities that will do it for you. Over the 13 years that this has been running you will have paid the debt management company 7,800 that could have been used to reduce your current debt to less than 10K.
    • D_M_E
    • By D_M_E 30th Aug 18, 1:03 PM
    • 2,081 Posts
    • 69,704 Thanks
    D_M_E
    • #7
    • 30th Aug 18, 1:03 PM
    • #7
    • 30th Aug 18, 1:03 PM
    Whatever you decide to do, don't do full and final offers through your DMP provider.

    They have been taking a cut of your payments so far and that could have all gone towards your debts with a free provider, probably making your debt free day a lot earlier.

    If you do make F&F offers through the DMP provider they will either add on their fee or take a cut of what you offer - as advised above, ditch their services, go self managed then make your F&F offers and, as it's been such a long time I would start around the 10% mark.
    • Debtfreewannabe1
    • By Debtfreewannabe1 30th Aug 18, 7:13 PM
    • 5 Posts
    • 0 Thanks
    Debtfreewannabe1
    • #8
    • 30th Aug 18, 7:13 PM
    • #8
    • 30th Aug 18, 7:13 PM
    Thanks for the advice, I will start contacting DCA's.

    I have no intention of using the DMP for F&F. Ive just been lazy and put off doing reviews with them.

    I just paid the monthly fee for convenience and without the stress.
    • D_M_E
    • By D_M_E 30th Aug 18, 7:18 PM
    • 2,081 Posts
    • 69,704 Thanks
    D_M_E
    • #9
    • 30th Aug 18, 7:18 PM
    • #9
    • 30th Aug 18, 7:18 PM
    13 years at 50 a month - that's 7800 SEVEN THOUSAND EIGHT HUNDRED QUID you have paid in fees to the Debt Management company, all of which could have gone towards your debts and brought your debt free date a lot closer.
    • sourcrates
    • By sourcrates 30th Aug 18, 10:07 PM
    • 15,884 Posts
    • 14,937 Thanks
    sourcrates

    I just paid the monthly fee for convenience and without the stress.
    Originally posted by Debtfreewannabe1
    You could of had the same piece of mind for free with a debt charity.

    Lesson learned me thinks.
    I'm a Board Guide on the Debt-Free Wannabe, Credit File And Ratings, and
    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 forumteam@moneysavingexpert.com. Any views are mine and not the official line of MoneySavingExpert.com.

    For free debt advice, contact either : Stepchange, National Debtline, or, CAB.
    For Free Legal advice see : http://legalbeagles.info/
    • TriggerHappy
    • By TriggerHappy 1st Sep 18, 10:56 AM
    • 52 Posts
    • 52 Thanks
    TriggerHappy
    Hi,

    In 2005 I entered DMP of over 40k inc all final fees etc I think my actual debt was around 32k. I currently have 17k left. Long story short Bankruptcy & IVA was not for me due to work and potential job loss. Paying at 300 a month (before their 50 fee) it works out I have around 5 years left to pay.

    Actual figures are hazy I just buried my head in the sand and just got comfortable paying the 300 a month. My circumstances are changing and im getting married my future wife would like a child and a house. I have been offered cash (family loan) to pay this balance off and been asked to see if i can get full and final figures. Then in turn I pay back that family loan at the rate of 300 a month and hoping to do that in 2 years or less.

    I have 3 creditors, Cabot (Egg) 2x Wescot (Lloyds credit card 7 loan)

    What are the chances of me offering up to 7200 (300 x 24) and getting a settlement between the 3. Any success stories? Anything I should watch out for? Should I Just leave the DMP running for another 5 years as none of the debts on my credit file?
    Originally posted by Debtfreewannabe1
    Hiya,

    Don't take this the wrong way but yours is a good example of what can happen if you don't take ownership of your DMP and retain a degree of control over your debts while using a company who charges you to look after your affairs.

    Leave that company ASAP. Ideally do it yourself, if you're not confident then use a charity like Step change or Christians Against Poverty (CAP). Personally I recommend Step Change.

    As you have been making payments for so long, and I'm guessing they're all defaulted long ago, then I would imagine that you'll be able to get a decent reduction. Personally I'd play hard ball a bit and offer 20% and ask them to make a counter offer - expect to settle at maybe 60% though, don't be afraid to make a counter offer...

    Good luck
    • Debtfreewannabe1
    • By Debtfreewannabe1 13th Oct 18, 5:02 PM
    • 5 Posts
    • 0 Thanks
    Debtfreewannabe1
    Just an update.

    Please be blunt and tell me what i should expect if you think i have set myself high expectations.

    Balances are now down to a total of 15k. Im still paying this debt management company until I have sorted out what I am doing. I am only doing it for convenience (dons tin hat) dont want to upset the applecart by not paying just yet.

    Oh before anyone screams at me yes it could be half of that had i not used the DMP company lesson learned there!

    I was talking to someone and then subsequently researched this. Would anyone challenge the debt being unenforceable due to them being taken up prior 2007 doing a CCA request?

    Im confused on how that would work and should I try it? Dont know how much that would upset things? Just confused.
    • fatbelly
    • By fatbelly 13th Oct 18, 5:13 PM
    • 13,108 Posts
    • 10,165 Thanks
    fatbelly
    Credit cards and loans are consumer credit act debts so you are entitled to make s77-79 requests on them.

    https://www.nationaldebtline.org/EW/factsheets/Pages/getting-information/credit-agreement-advice.aspx

    Do them properly and see what comes back
    • sourcrates
    • By sourcrates 13th Oct 18, 5:29 PM
    • 15,884 Posts
    • 14,937 Thanks
    sourcrates
    Its one of your statutory rights to ask for this information.


    If, a creditor cannot produce what they are supposed to produce, the debt may be unenforceable.

    After you make the requests, the consumer credit act allows 14 days for compliance, after this time your accounts are automatically unenforceable in court until such time as they respond to you, however long that may be.

    So always worth doing.
    I'm a Board Guide on the Debt-Free Wannabe, Credit File And Ratings, and
    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 forumteam@moneysavingexpert.com. Any views are mine and not the official line of MoneySavingExpert.com.

    For free debt advice, contact either : Stepchange, National Debtline, or, CAB.
    For Free Legal advice see : http://legalbeagles.info/
    • Debtfreewannabe1
    • By Debtfreewannabe1 13th Oct 18, 6:12 PM
    • 5 Posts
    • 0 Thanks
    Debtfreewannabe1
    Its one of your statutory rights to ask for this information.


    If, a creditor cannot produce what they are supposed to produce, the debt may be unenforceable.

    After you make the requests, the consumer credit act allows 14 days for compliance, after this time your accounts are automatically unenforceable in court until such time as they respond to you, however long that may be.

    So always worth doing.
    Originally posted by sourcrates
    Some research I have read seems suggest once time has expired people have stopped paying until they comply.

    Is that true?

    Should I go down that route?
    • fatbelly
    • By fatbelly 13th Oct 18, 6:47 PM
    • 13,108 Posts
    • 10,165 Thanks
    fatbelly
    Yes that's definitely an option.

    However, if they come up with the paperwork at a later date the debt does become enforceable.

    You could use that opportunity to suggest a small settlement deal, which is what you posted about in the first place.
    • Just Di
    • By Just Di 13th Oct 18, 7:53 PM
    • 219 Posts
    • 101 Thanks
    Just Di
    I have 3 creditors, Cabot (Egg) 2x Wescot (Lloyds credit card 7 loan)
    Originally posted by Debtfreewannabe1
    Was the ex-Egg debt originally a loan or credit card (portfolio purchased by Barclaycard in 2011)?

    And is the current owner Cabot Financial Ltd., Cabot Financial (UK) Ltd or Marlin etc. It may matter.

    Are you sure the other two accounts are still with Lloyds not assigned to a debt purchaser because that's not always obvious when you're in a DMP especially if the same DCA carries on managing the account for the next owner ?

    Was there PPI on any of these three accounts, or indeed on any of your other debts which you have now paid off? Or have you only ever had three debts in this DMP?

    My feeling is negotiation is best conducted from a position of strength, so sending the s 77-79 CCA Requests to see if the debts are actually enforceable makes sense.

    Di
    • Debtfreewannabe1
    • By Debtfreewannabe1 13th Oct 18, 8:54 PM
    • 5 Posts
    • 0 Thanks
    Debtfreewannabe1
    Im looking at all options now. Just want to pay back what is rightfully due. I know at some point I have been stung with stupid amount of charges for defaulting and interest added to the top before the interest stopped

    Was the ex-Egg debt originally a loan or credit card (portfolio purchased by Barclaycard in 2011)? Loan

    And is the current owner Cabot Financial Ltd., Cabot Financial (UK) Ltd or Marlin etc. It may matter. Cabot financial (europe) limited

    Are you sure the other two accounts are still with Lloyds not assigned to a debt purchaser because that's not always obvious when you're in a DMP especially if the same DCA carries on managing the account for the next owner ? - I get lloyds statements but managed by westcot bit confused there

    Was there PPI on any of these three accounts, or indeed on any of your other debts which you have now paid off? Or have you only ever had three debts in this DMP? - need to check these thanks

    My feeling is negotiation is best conducted from a position of strength, so sending the s 77-79 CCA Requests to see if the debts are actually enforceable makes sense.

    Di
    Originally posted by Just Di
    Last edited by Debtfreewannabe1; 13-10-2018 at 8:58 PM.
    • nortong
    • By nortong 15th Oct 18, 8:32 AM
    • 97 Posts
    • 29 Thanks
    nortong
    You could of had the same piece of mind for free with a debt charity.

    Lesson learned me thinks.
    Originally posted by sourcrates
    Why not give them a piece of your mind so that you can have some peace of mind?
    • purdyoaten2
    • By purdyoaten2 15th Oct 18, 9:29 AM
    • 950 Posts
    • 467 Thanks
    purdyoaten2
    Why not give them a piece of your mind so that you can have some peace of mind?
    Originally posted by nortong
    Hmm - sourcrates may not have the best grammar skills and the use of 'of' instead of 'have' can be infuriating but I wish that I possessed half of his knowledge and willingness to help others in dire need of advice - as he consistently and tirelessly portrays.
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