DMP and being on Benefits

[Temmy99]

I am new to this site so apologies if I have posted to the wrong thread. I really need some advice as to where to go from here. I had around £60,000 in debts on credit cards and loans, which I have been paying off through a DMP with CCCS for the past 6 years.

 

during this period. I had to leave my job due to distance and hours (worked in London, lived in Kent but initially reduced my hours to enable me get back in time to pick children up from after school, but the benefit people wouldn't cover my childcare expenses because the hours worked were under the threshold to qualify). My partner works and covers the bills and mortgage payments each month.

 

we both claim working tax credit but as this is a joint claim, I put the figure of the whole claim as my income on my DMP. They (CCCS) asked me to include my partner's financial details on the claim, but I refused as the debts were incurred before I met him so debts are solely in my name and he does not want to be a part of it.

 

I have tried explaining to CCCS that I am just on benefits and it is just a struggle to continue with the current arrangement but they have implied that the only option is bankruptcy. I have paid around £25,000 to date and have about £35,000 left.

 

It is estimated that I probably will still be paying this off for the next 20 years. The mortgage is in my partners name and I don't have any assets. The company that my hubby works for are due to relocate in a couple of months meaning that he will soon be out of a job although he is actively looking for work. I really don't know what to do, any advice will be appreciated.

 

Thanks

Edited April 30, 2013 by citizenB
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[citizenB]

I agree, you should not be asked to submit any details of your partner's income for debts that are solely yours.

 

Would it be a problem for you to go bankrupt ? Your credit records are probably already trashed and you would likely be debt free within a year - 18 months ?

 

IMHO, you should contact National Debtline and discuss this with them. I personally would not be recommending CCCS, but apparently they do a good job for some people.

 

Do you know if there are any default / penalty charges on any of your debts ? If so these can be reclaimed

Do you know if there was any Payment Protection Insurance on any of the accounts? If so, then you might have a claim for mis selling.

Do you know if CCCS were able to negotiate the ceasing of charges and interest on these accounts, if not, then the monies you are paying into the accounts are probably not reducing the debts by very much at all.

[Temmy99]

I am not sure if there are any default or penalty charges on any of the debts but the interest charges have been stopped on all of the debts. I took out a loan with HSBC and sainsburys bank which I am still paying through this DMP. I am considering the PPI claim route for both, but still hesitating as I am still paying the loan off so I don't know if I will have any claim with them. moreover, I no longer have the original agreements for both of these. I am in such a mess.

[citizenB]

I am not sure if there are any default or penalty charges on any of the debts but the interest charges have been stopped on all of the debts. I took out a loan with HSBC and sainsburys bank which I am still paying through this DMP. I am considering the PPI claim route for both, but still hesitating as I am still paying the loan off so I don't know if I will have any claim with them. moreover, I no longer have the original agreements for both of these. I am in such a mess.

 

 

Ok, well you would probably be best advised to send a Subject Access Request to both Lenders. This will cost you £10.00 and the company has 40 calendar days to respond. There is a draft letter in the Cag Library, which is linked at the top of each screen. Once you have the data, you will be able to find out what the account number is and what PPI you have paid. Let us know when they have sent you this information and we can then advise how you go about reclaiming

 

It is irrelevant that you are still paying off the loans, if the PPI was mis sold and there were many HSBC loans where PPI was definitely mis sold for one reason or another.. then you really need to ask for the refund. They will almost certainly refund it to the outstanding balance on the account, called offsetting. However, if there is anything left then you will receive that. If there isn't or it doesn't totally clear the outstanding balances, at least you will have reduced the debt.

[Temmy99]

thank you for that, I will look into it and start the process, advice much appreciated. thanks again

[Temmy99]

Final decision letter - HSBC/PPII have been going round this site for about an hour trying to send a new post to the PPI section but I am clearly way behind with the internet, please forgive me. I initially sent off a standard letter to HSBC explaining that I wanted to make a complaint about the misspelling of PPI on my loan and I got a letter back with the PPI reference numbers of two loans (I thought I only had one loan with them but then remembered that I have taken one out previously, paid that off then got another one) with a questionnaire. I completed the questionnaire to the best of my ability as I hardly have any information of the loans now and I also mentioned that I have a credit card with them although I don't know the PPI reference number to that. A few days ago I got this response (in summary) ......having taken the opportunity to review the records we hold in relation to this matter, unfortunately I am unable to support your complaint. Our records show that in xxxxxxx you applied for an unsecured Personal Loan. The monthly payments included an optional Personal Loan Protection plan which is designed to repay your monthly loan repayments in the event of sickness, accident or redundancy. It goes on to say that I received a product information pack which confirmed that the plan was optional and I had a period of 30 day in which I could have cancelled so they believe that adequate steps had been taken to make me aware of the PPI on my loan. In regards to the second loan.....while I do not agree with the points you made and will not be upholding your complaint, I am conscious that the premiums you paid totals £342.32........I am prepared to offer to refund this premium as a gesture of goodwill.........as I am offering to refund the premium it is not my intention to respond specifically to the individual issues raised. Nothing was mentioned about my credit card but the last paragraph states that .......this is our final decision letter. if you remain dissatisfied you have the right to refer this matter to the FOS.Is it too late to do what I should have done first and request for a SAR? I am still none the wiser as to the details of the loans and when I actually took out the credit card which is more than ten years ago. Things are just quite tight and depressing at the moment but I have this sinking feeling that this is going to be a long drawn battle.