DMP and Payday loans

[Nelliebellie]

I'm new to this forum but have been reading various threads for last 3 hours and found so much help and good advice on offer I decided to post my problem to see if anyone can give me a bit of guidance.

 

In 2004 I made the decision to enter a DMP with the charity CCCS. It wasn't one I took lightly but it was necessary and I can remember the relief I felt when within a couple of months my plan was running smoothly and I knew my debt was under control. I won't go into infinite detail but will say it was a real eye opener when I finally added up all my debt, credit cards, loans, overdraft, store cards and I was staggered to find it totalled just over 53k!! All utilities and rent etc paid every month, it was just unsecured non-priority debt I owed.

 

Nearly 8 years later and my debt is now just over 14k so only just under 3 years to go!!

 

The problem is I've been completely stupid in the last few months and am so angry with myself. I've fallen into the payday loan trap. I know whilst on a DMP I should not be taking out any loan, but I justified the initial payday one as a temporary solution as would get me through a tough month without jeopardising or altering my ongoing DMP. You know the next bit, paid the loan on payday but had to get another one a couple of weeks later, and so on and so on.

 

I now have loans with 3 payday companies and I've just been paid and I had to defer the loans on all 3 so I have only paid the charges. I know I won't ever have enough money in my bank account to settle any of them without it leaving me short to pay my bills and eat so I realise I need to do something and quickly. My question is should I first speak to CCCS and tell them I have these additional debts - can they add them to my DMP or would it be a problem as I should not have incurred any extra credit whilst on my DMP? I have read lots of posts about how to get out of the payday loan cycle and I realise I am looking at opening a new basic bank account for my salary to go into and am prepared to report my debit card stolen/lost and give my current bank written notice to stop paying the PDL companies, but should I deal with offering the PDLs repayment plans myself rather than involve CCCS. I know all my disposable income should be paid to CCCS but I'm sure I could find a bit to pay the PDLS myself directly and not rock the boat with my DMP. I would be so gutted if it were to all go 'Pete Tong' when I'm on the home stretch.

 

I've read many posts that say how stupid people feel getting into a mess with PDLs, but I am probably the most stupid!! My only excuse is that my dear mum died very suddenly and unexpectedly in 2011 and I guess I lost the plot for a while, she was always there for me and I'll admit she helped me out now and then with the odd 20 or 30 pounds and she never expected it back, but I told her I would pay her back one day and now I can't. This isn't a sob story, just need to explain how I've managed to 'fall off the wagon' so to speak!

 

If anyone has any advice on my best option to go for I would be eternally grateful, I've not stressed this much about money since been with CCCS, not been an easy 8 years but it was my debt and I always intended to pay it all back as never considered bankruptcy or IVA an option (I work in finance area, wouldn't be looked upon favourably). Apologies for long post, but just typing this has made me feel a bit better. Thanks

[dx100uk]

you need to look at all your debts and see if you have any PENALTY charges or PPI to reclaim.

 

i'd also make sure all your debts show on your cra file too

 

the pdl guys will be here in the morning

 

but

there is not 'legal' remit for any pdl co to levy PENALTY charges

 

dx

[citizenB]

As dx has said, you should look at the debts currently being maintained via CCCS and see if there are any charges/PPI that can be reclaimed.

 

I suspect that CCCS will not be at all happy that you have taken on more debt.

 

I am astonished that PDL companies have provided you with more debt. That just proves that they are NOT responsible lenders. Had they been, they simply wouldnt have lent you any more.

 

Anyhow, the damage is done. If CCCS give you any hassle, then you can manage your own DMP.

 

The following CASHflow system is OFT approved so your current creditors should not refuse to deal with a DIY DMP.. However, you are going to have to do some juggling with your Income and Expenditure form, as to be honest, I dont see those creditors being too happy at having to receive less than they have been!!

 

Have the charges and interest been frozen on your debts that are being managed by CCCS ?

 

If you are experiencing difficulty in repaying your debts, CASHflow is a way for you to negotiate affordable repayments with your creditors. Before you can use CASHflow, you must have spoken to one of the free advice agencies licensed to offer CASHflow to their clients. The advice agency will start by talking to you about all of the options available, and can help you to decide if CASHflow is the right one for you.

 

If you decide to use CASHflow, you will be provided with all of the tools you need to be able to complete your own financial statement and negotiate offers of repayment with creditors yourself. This will enable you to stay in control of your situation, but still have support from an adviser at any stage if you need it.

 

You can contact a local advice agency to check if they offer CASHflow. You can find a list of free advice agencies that are near to you by searching for a money adviser in England or Wales, Scotland, or Northern Ireland.

Alternatively, you can call National Debtline on 0808 808 4000

CASHflow: http://www.cashflow.uk.net/

National Debtline: http://www.nationaldebtline.co.u k/

https://www.mymoneysteps.org/

Also as highlighted in the CAGnewsletter...

There is the new CAB system that might also be worth a look, this system saves all your details, has guidance allowance figures to work with if you wish and you do not need to be invited / signed off etc with this system, just log in and away you go (see below)

 

(Also, there are a number of other self help tools and systems around so might be worth a little exploration if this is what you eventually decide on.)

 

http://mymoney.nedcab.org.uk/moneyadvice/

 

http://mymoney.nedcab.org.uk/moneyadvice/ (example of completed dmp)

 

If you are locked into a Continuous payment authority, then you need to get that cancelled immediately. Have a read of the following link on how to do that.

 

http://www.consumeractiongroup.co.uk/forum/content.php?850-Continuous-Payment-Authorities-How-to-stop-them

 

Some banks are saying that it cant be done. They MUST comply with your request to cancel it and if they dont, then they must refund any monies paid out after your request to cancel.

 

You might also want to think about setting up a new bank account with another group.

 

HTH

[Guest Peer Lawther]

Hi Nelliebellie,

 

As you're already a client of ours don't worry about giving us a call to discuss your current situation.

 

Our main concern would be to make sure you don't continue to struggle with your finances. We'll do our best to get you back on track as quickly as possible.

 

I hope this helps.

 

Kind regards,

 

Peer

[steve00117]

Please keep us updated as to how you get on with this, I'm in exactly the same situation myself!

[Nelliebellie]

Thanks for your reply citizenb, I appreciate your advice. The interest was frozen on all my DMP debts within a few months of setting it up with CCCS, so I was fortunate all my creditors agreed to this so quickly. I could do my own DMP but I think some creditors are more inclined to agree to DMP payments when it's managed through CCCS. I've had a response on here from a CCCS employee which is helpful too, perhaps they will be able to renegotiate my plan and I'll have to hope my existing DMP creditors don't get difficult about it. Going to make my mind up over the weekend. Thanks again. Nelliebellie

[Nelliebellie]

I will do, sorry to hear you have the same problem and hope you can get things sorted.

[citizenB]

Hi nellie, it was decent of Peer Lawther to reassure you and hopefully this will be resolved for you without too many problems.

[renegadeimp]

I wouldnt ignore your credit file, as you have no clue what marks your creditors are putting on there. They do drop off in 6 years, but in that time, you have no clue what they have been up to. Remember, when they drop off, your credit score doesnt magically reset itself. It stays very low and you have to build it up again which could take years.

 

Not to mention the issue of identity fraud which is rampant right now.

[renegadeimp]

I understand what you are saying, but your Crefit Record is the best way to judge what is happening. It's well known that even when paying off your loan/debt with a PDL, they can still issue a default or notice of late payment on it. Even if you are making the payments on time and in full. Theres no need to have it affect your life for a further 6 years.

 

Regarding the old debts, if the OP has made a payment or acknowledged the debt in writing, then the timer would have been reset. Since the CCCS was paying the creditors during this time, its doubtful the debts did get wiped or made statute barred.

[Nelliebellie]

Thanks for all the replies.

I did get month's free trial access to my credit file in January this year and some of the debts

I have been paying via DMP with CCCS since 2004 are not shown on it at all, to my surprise.

 

Tesco credit card only issued a default notice to me in February this year, and been paying that via CCCS plan since June 2004!

 

To be honest my credit file doesn't bother me and if it's affected for another 6 years from PDL defaults I won't lose any sleep over it.

 

For nearly 8 years I have lived on a tight budget, with only a debit card for a basic bank account during the last 3 years

so I have got used to paying for things I need at the time.

 

Don't think I'll ever get credit again once I have finally cleared it all but through choice, not owing to a low credit score!

 

I am going to open a new basic account with another bank this week,

then ring CCCS and see what they can do for me and if they can't continue to help me I'll do my own DMP

(checked out CAB one via link in one of the replies and it looks pretty useful tool).

 

I'll keep posting as things happen and am also going to get my PPI claims off to MBNA (loan and credit card accs)

as they've been on my desk in the spare room for a few weeks waiting to be done.

 

Thanks again to all for advice, it's greatly appreciated.

 

[renegadeimp]

It's no problem and its good to hear that things are starting to get back on track for you.

[Nelliebellie]

Please keep us updated as to how you get on with this, I'm in exactly the same situation myself!

 

Quick update - I have opened a new bank account so my salary will go into the new account this month - that's a relief! I rang CCCS and they listened to me and spoke to a manager to get authorisation to add PDL creditors to my DMP and the manager said Yes:-) because of my good payment history having not missed a payment under my DMP for almost 8 years. I am very grateful to CCCS for their assistance, know I'm not out of the woods by any means as got the wrath of the PDL companies to come when they don't get paid later this month and quite probably some calls from my DMP original creditors who will be getting less than they have been, but feel it's a positive step to getting things back on track. So if anyone is on a DMP and has got into a pickle like I did speak to your DMP people as hopefully they can help, CCCS have been brilliant and having them in my corner has eased some of the worry.

[citizenB]

That is good news Nellie, takes a bit more of the stress out of life.

 

[Clarkeyuk]

Did your local cab office set up with cccs? I've got an appointment on Friday at my local cab so I'm hoping they can sort me a DMP out!

[Nelliebellie]

Hi Clarkeyuk. I rang CCCS directly and it was best call I ever made! They were great, it took about half an hour on the phone discussing my debts and giving them my information and then they did the rest i.e contacting my creditors. If CAB don't arrange it for you, I would recommend you contact CCCS yourself. Hope it goes well for you Friday and you get something sorted out.

 

Nelliebellie