DMP,stopping,opening,,ban k,account

[starchild]

:???:hi i am new here and found this site via yahoo

 

my problem is this i have accumulated debits over the past few years which now total in the region of £32k stupid i know

but i thought that i could clear them by keeping up with payments an act which i now know was futile

 

things came to a head last week when our mobile phones were switched off

and i started to receive calls from the various card companies that i owe money to

 

my debit is roughly made up of the following

£ 8,000 credit card,

£5,500 personal loan,

£1,900 overdraft all with lloyds

£4,800 mbna

£3,500 tesco

£4,000 egg

£2,000 virgin

£3,00 halifax

 

up until this month i have not missed a payment on the personal loan (been running for 3 years with 2 left) and have made more than the minimum payements on the cards.

 

but i now reliase my outgoings far outway my income and i am at my wits end

 

whilst speaking to a call centre from lloyds last week they mentioned the credit consumer council and payplan and suggested i contacted them for assistance

 

i tried both on line and they both appear to have advise a reduced payment plan and that i should open a new bank account and have my wages paid in

 

i am in the process of doing this but have found it hard to find a bank not linked i applied to natwest

and then found out they are linked to rbs i have now been accepted by the co op

who appear to be linked to no one

 

 

i have stopped my wages going in for next thurs

but i am really scared about the backlash from lloyds

 

 

i still have a mortage with them and intend on trying to pay it over the counter until my new account is up and runnning

 

im i doing the right thing part of me feels it is dishonest and then the other part feels angry that they(lloyds)

have allowed me to continue building up debit with them i have been a customer for over 20 years

 

any advice would be most welcome and helpful

 

 

Thanks

 

Mark:???:

[silverfox1961]

HI,

First of all, you are not being dishonest. You are facing up to the fact you are in a bit of a mess.

 

Setting up a DMP with payplan or CCCS is generally a good idea as they will deal with the creditors on your behalf.

 

Your mortgage is the most important debt so maintain that over all others.

 

Here is a link to some template letters which might help in the interim:

 

http://www.consumeractiongroup.co.uk/forum/general-debt-issues/20758-creditors-dcas-letter-templates.html#post162353

 

Once you go down this route, the creditors may start to harass you into paying more than you can afford or they may pass you to either an in house debt collector or sell the debt to an external one.

While you are paying at least something, court action is unlikely (although not impossible)

 

Are there any late charges/penalties that you could reclaim to help reduce the debts?

[starchild]

Thanks for the reply silverfox

 

you mentioned about late charges/penalties ?? is this money i can claim back form them ?

 

as i mentioned this is all new to me as i have paid on time all of my working life

 

my wages are due on the 15th so i am panicking about direct debits etc

but all the advice i have recieved so far is saying just pay what you can afford .

 

my wife is aware of what is going on but all the debts are mine and i would not want any of her wages forming part of any repayment plan

[rebel11]

Hi starchild

 

Firstly, as silverfox states, don't feel guilty, the banks would be happy to lumber you with another £32k's worth of debt if they could.

 

You can claim back all Penalty Charges, it's easier to claim back from credit card companies then banks at the moment. You can claim back all the charges with Contractual Interest. Also if you have been Mis-sold PPI you can also claim that back with Contractual Interest. You can claim back all charges for at least 6 years plus. You just need to send a SAR

Request with £10 for each company, they will send you all the data they have including all statements for at least six years.

 

All tempates and spreadsheets are on this site.

 

http://www.consumerforums.com/resources/templates-library

 

 

Thanks for the reply silverfox

 

you mentioned about late charges/penalties ?? is this money i can claim back form them ?

 

as i mentioned this is all new to me as i have paid on time all of my working life

 

my wages are due on the 15th so i am panicking about direct debits etc

but all the advice i have recieved so far is saying just pay what you can afford .

 

my wife is aware of what is going on but all the debts are mine and i would not want any of her wages forming part of any repayment plan

Edited July 13, 2010 by rebel11

[starchild]

Hi rebel

 

thanks for the reply and advice what are penalty charges excuse my ignorance

are they when you pay late ??

 

also i have just been called by payplan to seee if i have filled in the details online yet at justabank which i have not due being in work all day and young kids to entertain when i get home

 

should i be aiming to pay as little as i can to the creditors or more i thought with having 8 i should aim to pay £30 to each ??? :confused:

[silverfox1961]

If you went with Payplan or CCCS, they would work out what disposable income you have and split it between the creditors. If you were to do your own DMP, that is the way you would do it. You pay what you can afford. NOT what a creditor demands.

 

If you have been charged a fee for paying your loan or credit card bill late then you can reclaim them.

If you have insurance on a loan or credit card which you never knew about or was unsuitable for you, then you can recliam that too

[rebel11]

Yep, they are late charges, you might also have been mis-sold PPI

It is well worth claiming these back with Compounded Contractual

interest. Basically your attacking the debt from all angles.

 

You should also send them all a CCA Request with £1, the agreements might be unenforceable, then you can put the accounts into dispute.

 

Hi rebel

 

thanks for the reply and advice what are penalty charges excuse my ignorance

are they when you pay late ??

 

also i have just been called by payplan to seee if i have filled in the details online yet at justabank which i have not due being in work all day and young kids to entertain when i get home

 

should i be aiming to pay as little as i can to the creditors or more i thought with having 8 i should aim to pay £30 to each ??? :confused:

[starchild]

hi peeps,

 

i have started the ball rolling (no getting off now) and i am cacking my self

i have cancelled all my direct debits including my mortage with my main bank

i intend on walking in there tommorrow and paying just my mortage (can i do this??)

i have filled in my details with cccs and i am awaiting an email with my dmp instructions in they have told me it could be up and running by august 1st but in the mean time i should make a token payment to each creditor to show willing

 

as mentioned i am sh.tting myself but i cannot see any other way forward

 

i will keep the forum informed of my progress

 

thanks

 

Mark

[loobyloo85]

Hi

 

Just read your posts. Do not be concerned about your mortgage with Lloyds - as long as you are maintaining your mortgage payments, they cannot put your property at risk. Yes the debt management companies will always suggest, as they did with me, to open a new safe account which you have done with Coop, so just ensure all income and direct debits are now moved over to this account, and that no more income is going into your old bank account.

Just looking at the amount of debt that you owe, have you considered doing an IVA before at all? Depending on how much you can offer as a monthly payment, this may be an option for you?

[starchild]

Hi loobyloo

 

thanks for the reply and advice i went through my details with cccs and the advice is to go for a dmp which they estimate will take me 13 years to complete

i am hoping to reduce this by claiming back ppi and any other charges i can get

 

As i have mentioned in other post i am finding the whole thing very daunting

regards

 

Mark

[middenmess]

Hi Starchild

 

Most of us came here as you have sick with worry and finding all the advice somewhat overwhelming.

 

Trying to take it all in at once is,to say, very daunting but if you're prepared to ask for help and receive advice then there will always be caggers here who having been through the same problems as you are experiencing now,will be more than willing to help you.

 

Spend some time reading around various threads and posts and you'll be surprised how quickly you can learn from this site--in next to no time you'll be able to offer advice from what you've learnt to others!

[Undercover-Elsa]

Hi Starchild,

They should let you pay your mortgage over the counter, if not ask for details to pay by BACS or Standing Order, that way you pick the best time to pay them. If necessary, ask them to move your payment date to the best day of the month for you...usually the very end. (This can, in effect, give you a month without paying them, if it normally comes out mid month and your salary comes at the end of the month, eg if you pay it 15th July from the wage paid in end of June, then change it to end of month, it wouldn't be due till end of August, after your August salary...so nothing to pay from the July salary...)

 

Another route available, particular if any of your creditors refuse to stop interest or become unduly aggressive is to make them prove the debt by sending off a formal request for the credit agreement (CCA request) which enables you to legally stop payment if they do not comply. I personally would have done this with each one (except overdrafts) before approaching a DMC,

but that's just my own approach.

 

Just take things a step at a time, you'll get lots of friendly advice and support on here.

 

Kind regards,

Elsa x

[starchild]

Hi all,

 

Apologies if this is the wrong location but I have been through most of the forums looking for info regarding opening new bank acoounts .

 

I have been on a DMP since mid 2010 and have not missed a payment since thenn although I did lower the ammount I was apying at the starte of this year. I owe money acrross 8 different finances:- 3 lloyds,1 egg,1virgin.1 mbna,1 halifax and tesco .

 

Altough I think the lower lloyds one may have ben sold..

 

 

I bank with co op and have a fairly good and secure job ,mortage and family and have lived at my address for 15+ years..

 

due to all the stuff going onnwith co op we have been looking at changing banks for a while now . I currently pay for my account and recieve various insurances , so I was looking for something similar

 

I applied to Nationwide for their flex plus account and have been told I am not suitable.

 

After 6 years will al the DMP stuff still be visible on my file ?

 

shall I not bother trying to open more accounts does this impact on my file.

 

Any help and advice most welcome

 

 

Thanks

 

Mark:|