DMP's are they the right answer?

[pommy190780]

Hi I have just under £40K in unsecurred debt through 5 creditors. I have been to CCCs who have recommended a DMP. After goping through the budget it looks like I have a surplus of £718 per month to pay towards it meaning if interest id frozen i can be debt free within 5 years. all sounds a bit too good to be true so have a few questions:

 

1. How likely is it my creditors (Halifax, lloyds, HSBC, Tesco) will freeze interest?

2. Can I still pay £75 month to my pension? comes out before taxed

 

And finally the most important one for us is after the DMP is finished how likely are we able to get a mortgage? We have one now and are not looking to move for probably 10 years if at all?

 

thanks so much in advance

[Conniff]

1. Very likely

 

2. Yes continue, that should be one of your priority payments.

[citizenB]

IMHO, you stand more chance of getting the interest and charges frozen if you self manage a DMP. StepChange and PayPlan are free and will remove most of the stress - will help you complete a Common Financial Statement which is acceptable to the courts, and creditors are advised to accept these by way of their own Lending Codes and the OFT.

 

You could have them help you sort out your budget, they could also advise if you would able to contribute to your pension. Then go it alone.

 

All your debts should fall off your Credit files 6 years from the date of the default - you would then be able to start clean up your credit file and improve your scores.

 

Are there any default charges that you could reclaim or mis sold PPI ?

[pommy190780]

No PPI or default charges. I hear a lot of people on here saying that you should manage it yourself. What I don't get is why when CCC s do it for free?

[fletch70]

The only thing i could add is that you are 100% sure the budget is affordable. For example if you have included anything in your salary that is not contractual. I have heard stories that the budgets that step change use can be rather tight.

[fletch70]

No PPI or default charges. I hear a lot of people on here saying that you should manage it yourself. What I don't get is why when CCC s do it for free?

 

Because you are in total control. Stepchange. can and do make mistakes but each to their own

[citizenB]

No PPI or default charges. I hear a lot of people on here saying that you should manage it yourself. What I don't get is why when CCC s do it for free?

 

StepChange (formerly CCCS) and PayPlan are in some way financed by the industry, so they are not too concerned about whether the Creditor will freeze interest and charges.

[dx100uk]

list your debts please

 

and check them against your CRa file too

 

dx

[pommy190780]

Halifax loan - 24k paying £480pm

Tesco loan - 8.5k paying £310pm

Halifax overdraft 2200 paying £60 in fees pm

HSBC overdraft - 1000 paying 20 in fees pm

Lloyds overdraft - 3000 pay 80 in fees per month

[dx100uk]

now get you cra file

and match the debts to those

 

dx

[pommy190780]

now get you cra file

and match the debts to those

 

dx

 

I have and they are correct.

[dx100uk]

ok so defaulted dates look at each of those

 

then you need to CCA the 2 loans

and sar Lloyds

Halifax

and hsbc

 

and get all the statements

and challenge the charges

they are still unlawful

if they've been doing it since nov 2009

 

then you can use bcobs complaint letter [the rbs link] for the OD's

 

and reclaim the loan charges see below

 

 

once we know then write some letters on accepting your own DMP.

[pommy190780]

ok so defaulted dates look at each of those

 

then you need to CCA the 2 loans

and sar Lloyds

Halifax

and hsbc

 

and get all the statements

and challenge the charges

they are still unlawful

if they've been doing it since nov 2009

 

then you can use bcobs complaint letter [the rbs link] for the OD's

 

and reclaim the loan charges see below

 

 

once we know then write some letters on accepting your own DMP.

 

Right mega confused. I have not defaulted on any of the loans or overdrafts nor been late or missed any payments I am just trying to pay my debt off the quickest. I have already got 530 of lloyds a couple of years ago for unlawful bank charges. Sorry if I sound thick but it's just the dmp info I was researching.

[dx100uk]

I was going by what you said in post 9?

 

dx

[pommy190780]

I was going by what you said in post 9?

 

dx

 

Post 9 was a list of my debts and balances and I was just trying to get advice on a dmp not the charges related to them or any defaults? Apologies for the confusion if I have not understood what you have said.

[dx100uk]

if you have been levied PENALTY fees for being

late/over/letter/ phone call.

 

you need to address getting those back

post 9 says 'fees'.

 

now

as in terms of 'what' you offer to pay each one

that is dependednt upon how much you Actually owe them

and if the debt is ENFORCEABLE

& the balance does not contain PENALTY charges [esp on overdrafts]

 

 

I use the follow :

 

TELL [dont ask] them they are only going to get £xxPCM for xx mts

as a goodwill gesture

and as a reciprocal GOGW they must freeze int & refrain from levying PENALTY charges.

if they wont

drop them to £1PCM for life.

.

as an example>

.

I am currently in financial difficulties and not able to meet my normal monthly repayments.

to show my goodwill, i am going to pay £5 for 6 mts.

 

i will update you in 6mts time or before, should my situation change.

.

could you please as a reciprocal goodwill guesture,

.

refrain from levying any penalty charges & freeze the interest on my account.?

.

Should you fail to assist me during a period of financial difficulty, contrary to all the guidelines and codes

issued by the relevent bodies and authorities that govern you and the way you conduct yourselves.

.

i shall have no alternative but to reduce my offer to £1PCM for the rest of the life of the account,

.

.

as your actions would do nothing to help me.

.

i thank you for your time.

..

.

dx

.

then pay by your internet banking site

.

and get reclaiming

.

TAKE CONTROL

.

or

if you have sent the above and they refuse

then write back........

.

.

i'm sorry, but you have failed to assist me during a period of financial difficulty, against all the guidelines and codes

issued by the relevent bodies and authorities that govern you and the way you conduct yourselves.

i repeat again, the contents of my letter dated dd/mm/yyyy, for want of clarification:

to show my goodwill, i am going to pay £XX for XX mts

could you please as a reciprocal goodwill guesture, refraining from levying any penalty charges & freeze the interest on my account.

i will update you in 6mts time or before, should my situation chance.

should you fail to help by refraining from levying unlawful PENALTY charges & freeze my interest,

i shall have no alternative but to reduce my offer to £1PCM for the rest of the life of the account,

as your actions are doing nothing to help me.

This is contrary to the rules you should operate under.

disgruntled account holder

dx

[pommy190780]

Ok great thank you for the advice I think I may have said the wrong thing. The charges to my account from the overdrafts are standard charges not interest for having the overdraft, for example £1 per day for use of the overdraft which I use daily. Are these unlawful? Surely they have a right to charge something for giving me credit?

[dx100uk]

that's ok

 

that's why I questioned it.

no ofcourse they can charge a nominal rate

 

but watch out for penalty charges across the board on all debts.

 

back to post one then

you've got it correct

 

you don't have to fwd them your in/out sheet

they have no legal right to see it.

 

only a judge can order that.

 

and don't name other creditors to them either

only give them basic info, if you want

they are supposed to help [as per the letter]

 

divvy up what you have left

 

use that figure in my letter

 

fore it off for each debt

 

let them respond

 

if they wont play ball

 

fire off letter two.

 

dx

[sequenci]

StepChange (formerly CCCS) and PayPlan are in some way financed by the industry, so they are not too concerned about whether the Creditor will freeze interest and charges.

 

Yes they receive a fair share contribution from the creditors BUT they are often VERY concerned about ensuring their customers have their interest and charges frozen.

 

That said, I would aways encourage anyone under a DMP to keep a sharp eve on the creditors to ensure that the freezing of interest and charges happens. It might need the debtor to raise concerns if this doesn't happen - to both the DMP provider and the creditor. In short, although a DMP can take a lot of the workload away from the individual - I still feel there is a duty on the individual to keep an eye on things. If that makes sense!

 

[pommy190780]

Great sense thank you!