Token payments: some creditors accept, one says no

[DarrenAs]

Hi - I hope someone can help! I would be very grateful for any advice on this issue.

 

I am probably going to have to apply for a DMP with one of the free charities,

because I have lost a chunk of income and can no longer meet my minimum payments to creditors.

 

But I want to delay the process by up to three months, as I may be able to recover that income in that time.

 

In the meantime, I have contacted creditors explaining the situation, and asking for them to hold action and accept £10 a month token payments.

 

All of them have been prepared to do this so far - apart from the major bank who provides my unsecured personal loan.

 

They have refused to pause collection action / charges unless I send them an income and expenditure form.

 

I can do that, but I am unsure if it is the right thing to do.

 

Clearly it will show I can afford to pay them more than the token £10 payment I am offering all my creditors

- but until my situation is stabilised I do not want to make higher payments than that,

or pay one creditor more than another, or commit to a repayment plan which then has to change if I go ahead with a DMP.

 

Does anyone know what I should tell the bank?

They have given me seven days to provide an I&E form. Thanks very much for any advice!

[dx100uk]

so you are saying the bank your money is paid into is the one with the loan?

 

dx

[Conniff]

To be honest Darren, personally I would write back to the bank saying 'tough, there is no more'.

Edited July 24, 2012 by Conniff

[Lilythepink]

To be honest Darren, personally I would write back to the bank saying 'tough, there is no more.

 

I agree, show them on the form that you have no extra money. Even the CCCS will tell you that you need money to live on......

And if they don't accept well tough....

I have been through it all , and with the help of CAG, I have fought off many a creditor... one by one:whoo:

[DarrenAs]

Hi - thanks so much for the replies!

 

a) No, it's not the same bank that holds my current account, which is good.

 

b) My problem really is that I know that my income / expenditure form will show them I *can* currently pay them more than the token payment I have offered, of £10 a month. So while the form will show I cannot afford my minimum payment to them, it will also show I could pay more than £10. So they will just write back and demand more.

 

My issue is that I don't want to pay any creditor more than any other for the next 2/3 months, and until I can stabilise my finances over the next two months and assess my income and future costs, I don't want to start a repayment plan with one creditor that I might not be able to stick to. Is that reasonable? My other creditors seem to think so.

 

I'm just wondering what this bank will do if I write back and refuse to give them an I&E form until my income is stabilised in two months time... I wish they could have just agreed to the temporary hold like my other creditors have !

[sequenci]

Hello there.

 

There is an obligation on creditors to hold action on an account for a month or two whilst you consider the most appropriate option. This then gives you time to get your financial statement together and to then choose the most appropriate option in moving forward. If a creditor says no then ask them to reconsider, it can often take a few attempts to get a creditor on board - do consider sticking to your guns; you'll get there in the end!

[DarrenAs]

Hi Sequenci - thanks very much, that's reassuring. I just wonder what they will do if I refuse to give them the details they are asking for within seven days. I guess the arrears and the charges will just keep building up I wonder how long they would leave it before escalating their action.

 

I have to admit I find it all a bit frightening ...

[sequenci]

Hello again.

 

Write back stating that once you have got your income and expenditure form together you'll be in touch with a suitable offer of payment. Until then point out that they have an obligation to give you time, as such they should hold-action. If you want to be slightly cheeky you should remind them of their obligations in accordance with the Lending Code. Or something like that

 

Don't worry too much about what they might do, often with credit debts their bite is far worse than their bite.

[DarrenAs]

Thanks again. I will do that and see what they say. I'll post on this thread what happens, in case it helps anyone else.

[sequenci]

Cool, keep us updated