Hi Guys

what a great site top info here i've a question about setting up a DMP.

I've got a list of me creditors im working through the spreadsheets. I've two loans that have less than a year to go and would like to continue paying the current payment to complete them, and dmp the rest of me debts. Is this ok to do?

Creditors

• Tesco Loan 1580 left to pay - 9 payments left
  
• TV Hp 170 - 6 payments left (in fact as i've stopped all the DD to the credit card companies i was thinking of paying it off with the spare cash.) good idea?
  

the rest

• First Direct loan £16,500 (8 payments made on 84 month term)
  
• Nationwide 19.9% APR £2512
  
• Santander 24% APR £3144
  
• M&S 23.9% APR £2404
  
• Halifax 24% APR £8650
  

After my budget i've around £450 to pay the rest (it needs maybe 600 to see the minimums paid). I'm only in 1 months arrears with nationwide and santander at the minute. but will be with all but FD and Tesco after payday. I'm planning to write the intial letters with token offers for the CC companies while I work out everything and set up a parachute account.

I was considering a further loan from my mortgage as we've loads of equity in our property - i know paying debt with debt isn't smart - but we've an ltv of 35% at the minute. My only fear is if we do that We'll be in the same boat as now maybe 12mths down the line. We can keep living on credit!

Sorry for the long and rambling post. Any help gratefully received.

With Thanks

Ian

follow seq's excellent blog in my sig

dx

Do you have any unwanted PPI on the loans that you could either cancel if you requested it or reclaim if you didnt ?

Do you have any charges on credit cards that you could reclaim ?

As already advised by dx, Sequenci's debt blogs will almost certainly be invaluable in setting up your own DMP.

If you need any help with letters, etc, dont hesitate to yell

I'm following Sequenci's blog at the minute, I've no PPI on any of these just a few charges i can reclaim, and a load from my FD overdraft. I've a SAR letter to do for that. Back to my question can you pay some creditors in full while distributing the rest among the others, as they've a under a year to go and would release more funds to the other debts later on.

my initial letter looks like this.

We are writing to inform you that we are seeking advice and assistance regarding our current financial difficulties.

 

Since making that above agreement with you, my circumstances have changed, and I am not able to make the payments I had hoped to.

 

To this end, we would appreciate if you could hold any action on the above account for a period of at least 28 days, and accept a token payment of £5.00 by bank transfer on 28th April 2011 as a gesture of goodwill, and my seriousness in making good my debts.

 

Also, during this period, could you please freeze interest and/or any other charges accruing on the above account.

 

We look forward to hearing from you as soon as possible.

 

Yours faithfully

Only thing i need to add is a line about only corresponding in writing as satander have already been chasing me 2 or 3 times a day inspite of me speaking to them!

Cheers

Ian

I am not 100% sure, but I very strongly suspect the answer to that is no. The whole point of a DMP is that because of your financial difficulties you are not able to repay everybody you owe money to. The DMP therefore aims to take your disposable income and share it EQUALLY pro rata between your creditors. Obviously if you were to continue paying two at the current rate it would be totally unfair on anyone else in the plan and would be unreasonable to expect them to accept it on those terms.

I think you will have to include the two debts in your DMP and pay them off pro rata in line with all the others in order to be seen to be being fair and equitable.

Ok thanks Tingy, I'll take that on board and recalculate it. 8-)

I understand the equal shares part, but its seems mad to push the Tesco loan beyond its repayment period. But if thats how i need to proceed then i guess thats the way to go. I'll send me letters off tommorow and keep this thread up to date.

Cheers

Ian

I've sent out the letters, and had a chat with a collections rep at Nationwide (very reasonable no pressure) if I go to a DMP they'll only accept it through a managed agency like CCCS can they do that? I'd like to have done this myself.

I've sent out the letters, and had a chat with a collections rep at Nationwide (very reasonable no pressure) if I go to a DMP they'll only accept it through a managed agency like CCCS can they do that? I'd like to have done this myself.

As long as you sign a statement of truth on the I&E form, then they should not discriminate against you if you want to set up your own DMP. This is just further proof of their need to control !

Absolutely agree with citizenB. There is no reason whatsoever why they shouldn't accept a DMP done by the debtor in question. As said, they like to feel they have control and don't like it when you start taking that control away from them and back into your own hands which is where it should be.

Was trying to find in the OFT guidelines where it said they can't refuse to consider your own DMP but couldn't find it - sorry. Under a DMP, you can't choose who you want to pay the whole amount and who not to - that would be unfair and the Creditors can reasonably request to see a list of all your debt and how much you are offering to the rest of your Creditors. Just recalc your unsecured debts as Tingy suggested and whatever you do don't ever send them a bank statement - as they will sometimes request before accepting your repayment. They can't request this, only a court can request this from you. It's probably a bit late, but I would have got a signed Credit Agreement from them all by sending a CCA request to see if you had any insurance that you could have used to cover your payments or whether they still had the agreement . Only then would I have sent the repayment offer and financial statement with my signature.

On your I&E, you do not have to identify your other creditors.. say as Tesco, Halifax, etc. You can list them as :

Credit card 1

Secured loan

Personal loan

Catalogue..

HTH

Excellent advice CB!

As regards the OFT guidelines I don't think you can find it cos I don't think it's in there. Be glad to be proved wrong mind!

Thanks Guys for the great advice. This is the first month in a long time where we've still got cash in the bank at this time in the month!

I was about to start drafting my offer letters tomorow. National Debt Helpline suggested i could if i wanted to pay say 1 debt in full, bearing in mind if i do it myself its not actually a "dmp" apparently so the rules can be more flexible! as long as my creditors agree, and its all detailed in the I&E form i send in.

Also I was going to claim for some bank charges i've a bout 3K's worth over the last 7 years ! after FD sent me my SAR back. That should see off at least one card !

Also another question we've put the house on the market and are planning to downsize. As i said further up this post we've a fair chunk of equity to come. We're hoping to be on our way in 2-3 months (touching wood), do I stretch out the token payments and go for F&F or do i start with the pro-rata'd amounts, and then try for F&F.

Cheers

Ian

Tingy, your right it's not in the OFT guidelines. What it was I saw was that they can't refuse to negotiate with a 3rd party. Anyway Ive benn doing my own DMP for 3 years and not had any real issues.

Ian, you could tell them you are working on your own DMP and are sorting out your finances, offer them £1 and ask for 3 months of no action. Now that is in the OFT guidelines of irresponsible lending that they need to give you time to sort out your finances. Google OFT1107 and look for Section 7.12.

That's what I would do so hope that gives you another option to consider.

Thanks Scotty, I'll take a look at that I'm getting ready to write my next set of letters with my offers, however I'm concerned that not one of the creditors has yet responded to my original letters, should i keep paying the token amounts until i get some response/agreement to freeze charges?

BTW halifax credit cards have send a statement with a section in block capitals suggesting it can tap into a halifax account we have with them, bearing in mind its overdrawn would they still go at it? only the child benefit goes in there currently.

Thanks for all your help guys (any computer issues fire any questions this way - quid pro quo after all - its what i do for a living)

Cheers

Ian

Hi Ian

A few important things:

- Get a "parachute account" ASAP. That is open another bank account with someone you DO NOT OWE ANY MONEY TOO as Halifax are within their right to offset your balance. Even though it is benefits - they will take it (although they are not allowed too). You will get it back, but save yourself the hassle of trying to reclaim it - trust me on this one, they did it to me and I took them to task for over 3 years to get the compensation they owed me for the hassle they put me through!

- ALWAYS SEND LETTERS RECORDED DELIVERY (signed for). It only costs £1.23 per letter, but hold onto your receipts, keep a copy of the signed for receipt that you can print off from the Royal Mail and always write a copy of the recorded delivery number on the letter.

- I would keep paying your token payments, although I have just managed to get all of my Creditors to accept nothing for 3 months from my partner and £1 from me for the next 3 months with some well worded letters ! Even if they reject your token payments, still keep paying them as they can't reject your payments but can reject your offer.

In my experience, Creditors normally take about 2 weeks to get back to you. Those idiots that send threat-o-grams (DCA's) are terrible to get back to you, that is why you need to send it recorded. I find that dealing with the so called "Solicitors" is easier as they tend to stick by the rules - they need to that is why they are lawyers.

So get a parachute account asap or put your money under your mattress as trying to get it back from HBoS will be like getting blood from a stone. If they take it let me know and I can give you a letter that will help you get it back. Prevention is better than cure!

Oh, by the way, I'm unfortunate like you and work in IT, but i'm pretty fond of a nice pint of Stella! LOL!

Good advice scottbhoy.

OP if you're not sure which bank belongs to which group post up here and we can let you know. I have a list of them all, but I'm away now until Monday if you can wait.

Cheers scotty, Tingy,

I've already set up a barclays card cash account set-up ready. The halifax one is an old account we've never closed my wife uses for ebay proceeds and the child benefit. it has a small overdraft on it but she's not the best with money so its always overdrawn. My current bank First Direct are behaving well so far so i'm not ready to move my account yet. We'll see if they're the same when i offer them a reduced payment on my loan (currently my largest unsecured debt). I'm sending in a bank charges reclaim today lets see what they do?

Thanks again

Ian

Good luck. Just so you know I had an overdraft on mine that was maxed out but I still got my tax credits back. If it's overdrawn don't think they will take anything from it but dnt risk it. Dnt give them a penny more than you need.

Great advice on this thread. Nice to see so much brilliant help being given.

Great advice on this thread. Nice to see so much brilliant help being given.

Indeed I'm very grateful to scotty and Tingy for all the help and direction, And today is no different

I've had a response from satander they asking for an I&E form (which is fine - I'll send my own rather than the one they sent) and a Bank statement and payslip to which my gut reaction is b*gg*r off. I recall one of you saying it needs a court order for such things? do i need to?

I'll probably follow up with another letter sending an I&E and maybe a offer and ignore the requests for payslips and statements.

Cheers

Ian

Capital one also asked me for the same information, but after some letter tennis they agreed to the payment i was paying them and stopped the interest, I am still a bit cautious as i am only on a short term arrangement so no doubt the phone calls and letters will soon start arriving! But yeah it is right only a court/judge can order to see payslips and bank statements!!

Good luck with it all!

No probs Remember though, this is just the way I would deal with it, well have really so don't go on my advice alone! Most of the stuff I know - I have learnt it from here - the CAG university.

Wouldn't give them anything other than an I&E sheet. Only a court can ask for the rest. Don't short change yourself on the I&E - it has to be affordable and sustainable to YOU. I had been paying under £2 to one of my debts for almost 2 years and never really answered the demands for payslips etc, in the end they dont really want to take you to court for the court to turn around and say "you can't have what he's not got" !

Absolutely right. They can't even demand your IE form, but realistically they will never come to an agreement without it. As said above be very careful on your IE sheet. Make sure you factor in absolutely everything that you spend on. People often look on the positive side and assume their car will never break down, no house repairs will be needed, fuel prices won't continue to rise, cat tax, MOT, soap, toothpaste, everything! It adds up.

I came across one earlier who had very sadly included overtime as part of the income and now overtime has been stopped and there is over commitment. Be careful not to fall into these basic traps.

Great to see you making progress though!

here's My next letter to the creditors is this approach ok?, I've taken your advice tingy and censored the I&E form to just type of credit. On the subject of IE - haircuts? mines not a problem but mrs tioaboa has a her hair coloured and such and that seems to cost a small fortune, she's stepped it back with groupon deals and shopping around but it still adds up - I'll included it will they question it? it can be as much as 60 quid.

I am writing to inform you that have sought advice and assistance regarding my current financial difficulties from CCCS. I am now asking you to accept a reduced monthly payment and freeze all interest and charges on the account.

 

It is clear from the advice from CCCS that I can only afford to pay unsecured creditors at total of £xxx. As I must treat all creditors fairly I have divided this amount between you all on a pro-rata basis. My offer to you is £xx.xx

 

However unless you confirm your acceptance of this arrangement I shall continue to pay a token payment of £5.00 by bank transfer on 28th of each as a gesture of goodwill, and my seriousness in making good my debts.

 

Written communication by post or e-mail is my preferred method of contact and I will not discuss the matter any further by phone.

 

We look forward to hearing from you as soon as possible.

As always thanks for any advise. btw should i include a harrasment type statement to try to stop em calling up? if so any recommendations

Ian