Help needed ref making Full & final payment offers

[canwecleardebt]

Hi, am brand new here so please excuse my comparative ignorance.

This seems like an excellent site and having read some of the posts there seems light at end of tunnel for us. Unfortunately I'm a bit overwhelmed at how much info to get through there is.

 

If someone can point us to a good thread or even give me low down on some of these abbreviations,(cca?) it would help but essentially our story is:

 

My wife and I have about £17k of debt, about £6k in my name and the rest in hers, nothing is in joint names. My wife stopped work to look after our children so is earning about £220pm part time. I am on £26k pa.

 

We have been in a dmp with Payplus since Feb, setup via National debtline, and so far ok. The main creditors MBNA & Northern Rock have accepted a reduced payment plan. Lloyds, probably the main creditor have not accepted though we send regualr payments via the dmp.

The dmp is in joint names with payplus but not direct with the creditors and we are left with absolutely nothing at end of month. Up until point of deploying the dmp we had not defaulted on any minimal payment, it was a case of being proactive with the debt and not reactive to default notices if we did etc.

 

However, we have decided to sell our house and relocate (renting of course) to release some capital and; by mid Sep; will expect to have a lump sum to offer our creditors - the house is in my sole name so although I may have to negotiate with my own creditors the bulk debt being in my wife's name is not obliged to be repaid from this sum. Or is it?

I read that reduced payments may not be considered before 12months of reduced payments have been made ?

 

I have read in posts about seeking PPI & reducing the balance before offering a F&F but don't understand.

 

Sorry to waffle but to receive advice I guessed more info was better than too little. Can someone pls give me some advice or refer to a very relevant thread. I will continue looking but I never realised until tonight these forums existed. Ignorance is sometimes not bliss

 

Many thanks in anticipation.

[maroondevo52]

Hello and Welcome, canwecleardebt.

 

 

Best thing to do is have a good look around the Forums.

 

Here's the abbreviatons...............

 

Glossary(abbreviations) - Consumer Wiki

 

The thread you posted on regarding Full and Finals is a good one.

 

Regarding the PPI have a look in this Forum, also the successes in the 'stickies' at the top of the Forum.

 

Payment Protection Insurance (PPI) - The Consumer Forums

 

With your debts, you could start a new thread in each of your creditors Forums, giving some detail of what the score is with them at the moment.

 

Sorry, this is not too detailed but i'm going off-line shortly, I'll see how your getting on tomorrow.

 

 

Regards.

 

Scott.

[canwecleardebt]

Hi many thanks for quick reply. I did have a read of some and then posted. Was advised maybe best to start my own thread so i get specific to me replies but yes, lots to read. cheers

[maroondevo52]

Hi,

 

It would help if you could give a breakdown of your debts, people would then know how to advise you on each one.

 

Regards.

 

Scott.

[dx100uk]

urm..

 

you're not obliged to even pay off your debts either

 

i question your logic when this is only £17k and mostly unsecured debts?

 

as for PPI and unlawful charges yep claim them back, you are entitled to them + interest

 

you need to give a basic list your debts

 

and where you stand with each one.

 

dx

[canwecleardebt]

Ok, I'm gonna cut/paste this so hopefully format comes out ok. Below is essentially everything I can tell you:

 

Creditor Owed DMP £pm Creditor Status

Lloyds TSB credit card £4,095 £41.78 (accepted)

Lloyds personal loan £3,599 £36.72 (rejected)

MBNA credit card £2,474 £25.24 (accepted)

Santander (DFS) £1,021 £10.41 (accepted)

Halifax Current a/c Overdraft £1,647 £16.81 (accepted)

Northern Rock £3,746 £38.23 (pending)

Total £16,582, payments £178.19 (includes £10 payment cover) at DMP rate 8yrs

 

The top 3 are my partners. the latter 3 mine. All unsecured.

Been paying DMP since Feb 2010 (6months to date)

 

Before instigation of dmp we had not fallen into arrears with any payment but thought best to be proactive before ccj threats etc. I presume I will therefore not have any PPI and extra charges I can claim back or am I misguided on this.

 

I changed bank from Halifax as they changed their agreed overdraft fees structure and becuase instigating a dmp was advsied to change banks so it my approved o/d became a debt by default.

 

I appreciate all the help and if savings can be made I of course will support the CAG initiative. Thanks in advance.

Edited July 12, 2010 by canwecleardebt
formatted to be more readable

[dx100uk]

you can reclaim ppi and unlawfull charges regardless

 

it might be best if you cca everyone you are paying money to. barring o/d's

 

dx

[canwecleardebt]

Sorry, maybe I have misunderstood. Am I supposed to start a new thread for each specific creditor on the forums ?

 

Thanks

[maroondevo52]

Sorry, maybe I have misunderstood. Am I supposed to start a new thread for each specific creditor on the forums ?

 

Thanks

 

Hi,

 

It makes it a lot easier for people to help you, just give a little detail about the debt and what the score with it is at the moment.

 

If you have any problems finding the forums, give me a shout.

 

Regards.

 

Scott.

[canwecleardebt]

Thanks Scott. Before I go off on tangent vreating several new threads I would be grateful if cast eye over the Lloyds thread I started for that aspect of our dmp at: http://www.consumeractiongroup.co.uk/forum/lloyds-bank/268170-card-loan-should-i.html#post3038093

 

If I'm on right track with this and need do same for others would you give me the nod or point in right direction.

 

Many thanks

Richard

[Undercover-Elsa]

Hi,

Just had a look at your new thread. Looks fine!

Doing this for each one, apart from helping us advise, also helps you to organise your thoughts.

At home, start a folder for each debt with a diary sheet at beginning to make notes on progress. Save all correspondence (never ever discuss anything on the phone with creditors), and copies of letters you send, with recorded delivery receipts stapled to them.

 

Congratulations on taking control!

 

Elsa x

[canwecleardebt]

Hi, been reading the forums a bit more and have started a thread for each creditor as advised to. One grey area I have, having now read more, is that my wife and I entered into the DMP together but it was driven by fact the payments to her creditors could not be maintained on her income alone. My payments were manageable and I had an impeccable 999 credit rating only 6 months ago. However, its now dropped to fair which is ok I guess.

 

So my question is: should we have setup separate dmp's or more to point just one in my wifes name?

My wife is only now working p/t for £200pcm. Surely I was advised wrong by national debtline / Payplan as if she had defaulted in her own right the creditors would be looking at nothing per month and more likely to write the debt off or accept a low F&F amount. I wouldn't have need trashed my own. Is it better to rethink the dmp and split it, I could probably even get my rating back up with negotiation. As Dx said, I'm not liable at all for it for why should I carry on subsidising the creditors to tune of about £120pcm.

 

At moment we pay £180 into the dmp. My payments a month woiuld only have been £100pcm on all accounts, (compared to nearly £200pcm payments in her name) so already I'm thinking if she had her own dmp and didn't pay, we'd be better off by £80. Her rating is trashed already and we can try rescue mine so between us we'd be ok. Or am I being too simplistic?

 

At moment, as I post, I'm actually quite annoyed as it seems I should never of had to enter a dmp myself.

 

Thanks

Edited July 22, 2010 by canwecleardebt
added pcm payment info

[dx100uk]

well the things is the financial linking will be shown on the CRA files anyhow, but yes, in theory, and, like myself, you are funnily enough correct.

 

mines the otherway around.

 

mine is trashed [by HFC defaulting on a debt during a period of dispute when i was reclaiming PPI - dealing with that at present]

 

but my mrs's is ok.

 

now as interms of the DMP, well yes you'ed prob save money, but, you might find your time better spent reclaiming all your can.

 

one benefit of this is that IF the defaults put on a cra from say a card etc are the DIRECT result of unlawful charges i'e if it were not for X charge in X month i would not have exceeded my limit - if this is the case and they refund said charge, then you should be able to demand the default is removed , as it was unlawfully placed on the cra record.

 

anyhow

 

something to think about

 

dx

[canwecleardebt]

Thanks Dx. However, I really don't think we ever missed on payments etc and if we did get any extra charges they were very few and far between as I've always been quite strict with direct debits etc and always chomped on the bit with whomever at any hint of a charge I disagreed with when they did occur. Normally bank overdraft charges which I nearly always got back by hook or crook. Current creditors I really don't think there are any, and at peril of sounding defeatest to you. not to extent its worth the aggro to find and then reclaim it.

 

One of the defaults on my cra though, is as you say, a result of the Halifax not crediting my dmp payments and instead listing them as defaulted missed payments. I should be able to argue that successfully with help of Payplan.

 

Thank you.

[canwecleardebt]

maybe a daft question, but I've just got some £1 postal orders to send in payment for my creditor CCA but how do I know whom to make them payable to? {see list of creditors below} I don't want them sending it back saying the payee is wrong costsing me money and time.

[dx100uk]

for £1 it wont hurt to just send them blank.

 

dx

[canwecleardebt]

dx I did think that myself but then I thought hang on I'm dealing with bankers here, a pound, a penny, it'd go missing. Heh heh But yeah prob send off blank. Cheers

[canwecleardebt]

Hi, my wife and I entered a payment plan via Payplan last Febuary and as most of the debts are unsecured and also in my wifes name whom is not earning much as only part-time I am thinking that it's best to offer a F&F on back of her earning potential and rate of paying off.

 

I read somewhere that it is best to wait until a plan has been in force for at least 12months without default as the creditors are more likely to listen. If the general advice is it doesn't matter then I will make steps to do it before the New Year but as we are only 4months away from completing the 12 then I'm wondering if best to wait.

 

Also, I am considering buying a new (used) car as ours needs replacing. However, as it is my wife who drives, then the car will be registered in her name so although the debts are unsecdured, is it normal for creditors to request she sells such an item in order to offer more else they will reject the F&F offer. If so, I will hold off the car replacement until making the F&F. It may be that if we get a better deal overall by offering to do this rather than a trade in then I can also instigate that.

 

many thanks in anticipation of response.

[sequenci]

Hi there,

 

I don't think making an offer now would make much difference than waiting for 12 months. I'm a debt counsellor for one of the big charities and I've certainly never heard of a 12 year rule. The creditors shouldn't expect you to sell a car (unless it's a very expensive one!).

 

Hope this helps!

[canwecleardebt]

Hi, many thanks for fairly quick reply. I can't remember where I read it, I think on here actually, where it 'may' be considered that you have shown fair attempt to repay and therefore may get a more favorable response. I would prefer not to wait 12 months since I am paying £180 pcm where if I offer a F&F earlier it will either get accepted or refused in which case I will probably then default since my wifes debt is unsecured and she is not working so it will save us a lot of money in long run. More heartache admittedly I expect but at moment I feel my dmp is money down the pan.

 

Thanks

[sequenci]

Well, if you don't ask you'll ever know!

 

More info here:

 

http://www.nationaldebtline.co.uk/england_wales/factsheet.php?page=24_full_and_final_settlement_offers

 

or as a .pdf

 

http://www.nationaldebtline.co.uk/england_wales/pdf/24_full_and_final_settlement_offers.pdf

[The Mould]

Why don't you cancell the DMP and bring the accounts/debts under your management and control.

 

How many creditors do you have and what is the amount (actually) owed to them?

 

Do you have a lump sum available to make the Settlement offers?

 

If you do default and no agreement can reached between you and any of your creditors, either in Settlement or by way of an agreed monthly payment, then the creditor will take legal action to recover any amount that you legally owe to him, if you are a home owner then this unsecured debt will be secured against your home by way of a charging order. (that could happen, but if it were to happen, it is a long way of at the moment)

 

You should send your creditors your offer to Settle the account in Full and Final (DO NOT INCLUDE ANY CHEQUE PAYMENT AT THIS STAGE) and wait for their response.

 

You will not have to sell the car.

 

Send your offers into your creditors and when they respond post up their replies and then we can continue from that point.

 

Do you have any dispute with any of your creditors at present in relation to the amount they claim you owe?

 

 

Kind Regards

 

The Mould

[canwecleardebt]

Hi, been a while since I posted in the different forums for each of the debts I'm handling but essentially my situation has changed dramatically and I need some advice, probably quickly as I may be in a 'best time' scenario

 

Since Feb 2010 I have been in a DMP with Payplan but have just left my job and essentially have no income. Due to circumstance I chose to leave the job of own accord so I can't claim insurance etc etc. I have reduced my dmp from 179,99 pcm to just £20.

 

However, I am in a position where I can realistically offer a F&F to my creditors and if I can impress on them I have no income at moment and the payment plan is effectively useless in reducing the debt, then I would hope they'd take what they can get or sell on to dca where again I may be in better bargaining position.

 

I am hoping to secure work again soon (I have 3 positive interviews lined up) but if I can make this bad situation work for me then I need act quickly. I checked last year and PPI & unfair charges are extremely negligible (only double figures if that) so I'm happy to forego that out of 15k total thats left if I can get some F&F sorted quickly.

 

Question?

I cca'd the creditors last summer but due to not being on my game I left it even though only 2 replied and stupidly filed the recorded delivery slips in a 'safe' place so no proof I requested. I need do it again for those that didn't reply yes?

 

Question?

That done, should I make a F&F offer in region of 10% to start with and take it from there, stopping the payment plan where necessary if refused and request they take me to court where I hope get a better deal?

 

I was intelligent enough to start a dmp but not intelligent enough to stay on top of it, letting it toddle along but now I really want to get off backside and settle it for good if possible.

 

Advice much welcome and appreciated. If you need any more info please let me know.

 

Original threads: (cant post full link as I dont have enough quota to do so)

orignal thread (see dated 12th July for dmp breakdown)

#post3050697

#post3048264

 

Thanks

[canwecleardebt]

Hi, I sold my house last year and came away with a little capital, not much at all but it would significantly reduce my 17k debt. If I were to stop my dmp and try make F&F's unsuccessfully, ending up in court, would I have to declare the capital and therfore be forced to pay it all out?

 

I am considering paying off my family member who of course lent me the deposit on the house and would effectively leave me no capital. Would I be forced to provide courts with statements etc and have to account for such monies and have that go against me?

 

Maybe a naive question to some but for me its a completely grey area.

 

Thanks

[sequenci]

The family member is a creditor just as much as anyone else, in fact I wopuld argue that they are a priority creditor. As such I'm not sure that you would get in to too much trouble if (and it's a very big if) matters went to court.