Help needed - DMP

[Dannyboy777]

Hi all,

 

I've sent off my LBA to 7 banks/c/card companies nearly 2 weeks ago. I am in a DMP through Payplan, my question is this, I have been informed by an IP (insolvency practitioner) that any refund of charges will be deducted from outstanding balances, most of these debts have transferred/sold onto collection agencies, so if this is the case, is it worth my while paying court fees etc to pursue charges which are just gonna be deducted from outstanding balances and leave me out of pocket?

 

Does anybody have any similar experiences or can you advice me further as to what to do, I'm considering just pulling the plug.

 

Thanks

[demon_x_slash]

If you're in a DMP, you should make it a condition of settlement that you are paid by cheque. Explain that you are in a DMP, and to offset these reclaimed charges against one particular debt would be favouring one creditor over another; you will be distributing the 'refund' pro-rata over all your creditors, as your DMP requires you to do. Try that one for size.

[Dannyboy777]

Thanks for that demon but will this work, they may turn around and say tough luck, you owe us the money, why should we pay you direct? I need to be absolutely sure on this one otherwise I may be throwing away 3-400 quid in court fees alone.

 

Anyone out there who's in/been in a DMP and claimed charges successfully and had a direct payment??

 

Thanks

[demon_x_slash]

If they want to settle your bank claims, and you make paying by cheque a condition of the settlement, they can't refuse. But feel free to ask others

[Dannyboy777]

At what point during the correspondence stage do I make it clear to the banks/c/card companies that it is a condition that they pay by cheque, are there any templates available? I am currently ready to file a claim through my local court.

 

Thanks

[demon_x_slash]

I'm not sure which form you put it on - someone else'll be able to tell you. Perhaps the POC? PM a mod if you don't get a reply within a day or two.

[smartmartian10]

Dannyboy,

 

I too am with payplan. Have you done a CCA request for the credit agreements? I have all mine and so far the replies are underwelming! there is a template in the library sections here and it only costs £1 per card / account.

 

One reply I had from Tesco Visa made the requests all worthwhile see link below

 

http://www.consumeractiongroup.co.uk/forum/royal-bank-scotland/80248-tesco-visa-no-cca.html

[Dannyboy777]

Thanks for your input/advice guys!..much appreciated

 

My question was, is it really worth persuing with reclaiming these charges considering I am now at a stage where I have to shell out around 3-400 quid in court fees and no guarantees of getting a payout, instead going directly to reduce outstanding balances.

 

Furthermore, I am considering bankruptcy as an option so all the debt I have would be writen off anyway in 6-12 months time, just thought the £2k I would've gotten while going through bankruptcy would have been very handy indeed!

 

Thanks

[c_allen]

why do you want to go bankrupt?

claim your charges back, you will win, then when they payout, in the form of a cheque as suggested above, you can do that, then ask everyone you owe if you pay them x amount will they settle the debt. also, have you claimed C/I? if not why don't you start again at the prelim stage and go for C/I. when you win this you'll make more money byway of interest, then you can offer more to your creditors, then you've more chance of getting them to settle for less than you currently owe, if that makes sense.

i've just won with C/I £6400, for only £3600 in charges, that nearly £3000 interest, and i'm going to my creditors and offering to settle, if they'll accept less

[Dannyboy777]

Sorry, but what's a C/I?

[c_allen]

C/I = contractual interest. for example, if you go overdrawn by £10, the bank will charge you between 25% to 30% interest on that £10,from the date that you ''borrow that £10 without their authorisation'' its called unauthorised borrowing, now they've ''borrowed'' your money without your authorisation, therefore you charge them what they'd charge you, contracts work both ways, but if you do this then you MUST claim it from the start of your claim, ie the prelim, so in your case you'll have to start again but that not a prob, it sets you back 1 month but it's worth it. also if you do this then DON'T accept any offer unless it's what you want, you absolutely MUST keep your claim whole. before you do this have a read around at threads that have won with C/I or CCI [compound contractual interest]

hope this helps;)

[Dannyboy777]

Thanks for clearing that up, c allen!

 

I dont think C/I is applicable in my case as I am only claiming charges as notified and late fees and not overdraft interest. As regards the court form, where do I put the condition of settlement is by way of a cheque payable to myself?

[c_allen]

C/I is applicable for ALL charges they've ''borrowed'' your money without your authorisation, so unauthorised borrowing rates apply, if you want.

not sure about where you'd say payment by cheque though sorry, but someone will know the wording

[Dannyboy777]

Thanks c allen for clarification

[Dannyboy777]

Hi all

 

So, is there anybody out there who is in a DMP and have successfully claimed charges and have had a direct payout, I only ask as I am now at a stage where I'm doing court forms thus incurring charges, any advice/guidance would be most appreciated.

[chezt]

Sorry I haven't read all the replies so may be repeating what someone else has said (sorry!) I'm in a DMP with CCCS & have had refunds on a couple of claims within the DMP now. I stated that I wanted payment by cheque so I could distribute round all my creditors not just them but this didn't work & they just deducted from their balance (Which I was ok with tbh as at least it reduces my debt anyway) The only thing I did stipulate was that the refund of the court costs was to be made directly to me & this did happen.

 

This is how I worded it if you want to use it ....

 

I wish to confirm that I am willing to accept the sum offered to reduce the balance on the account as you suggest. However, I must point out that I expect payment of my costs, being the sum of £xx.xx for the issue fee for this claim to be paid to myself by cheque payable to chezt

Hope this helps? Oh and again - sorry if I've repeated anyone it's just I don't have time to read all the replies at the moment!

[Dannyboy777]

Thanks chezt for that, that was more or less what I was expecting to hear, I mean surely they cant do a direct payment to the individual if that individual owes them money, oh well, guess I've saved meself a few bob in court fee by just pulling the plug on the whole thing!

 

All the best guys

[chezt]

Thanks chezt for that, that was more or less what I was expecting to hear, I mean surely they cant do a direct payment to the individual if that individual owes them money, oh well, guess I've saved meself a few bob in court fee by just pulling the plug on the whole thing!

 

All the best guys

 

 

I personally wouldn't pull the plug mate as it will still reduce the amount that you have to pay back & therefore you will be debt free sooner - that's the way I'm looking at it anyway - also getting the satisfaction of winning!

 

I'm just finding it a struggle to come up with the court fees so I'm tryna concentrate on filing one at a time then when I get my fees refunded start on the next one etc ....

 

It's ultimately your decision but it is still your money & you have a right to reclaim it - even if it's just reducing your balance

[Dannyboy777]

I know what you saying mate and am very grateful for your support/advice. The thing is around £1600 in total with 7 banks I'm claiming and all the court fees to be incurred is not gonna make a big dent in the £135K (thats right 135 grand!!) I owe. I was hoping to get the payout then petition for bankruptcy, at least I would have had a few bob to live on whilst being bankrupt.

 

Cheers!

[chezt]

I know what you saying mate and am very grateful for your support/advice. The thing is around £1600 in total with 7 banks I'm claiming and all the court fees to be incurred is not gonna make a big dent in the £135K (thats right 135 grand!!) I owe. I was hoping to get the payout then petition for bankruptcy, at least I would have had a few bob to live on whilst being bankrupt.

 

Cheers!

 

OK I see - I totally understand now ... I honestly can't see them paying you money if you owe them regardless of what you say your tems are - JMHO of course but I really struggled with mine.

 

Also as you say for the small amount (compared to your debt) it makes you wonder if it is worth it anyway if your only option is bankrupcy.

 

Sorry I can't help you further in your situation - good luck with everything

[Dannyboy777]

Thanks mate for your kind words and I wish you and everybody else on this forum who've been fantastic with advice etc all the very best.

[chezt]

Thanks mate for your kind words and I wish you and everybody else on this forum who've been fantastic with advice etc all the very best.

 

[c_allen]

sorry i didn't know you owed that much i torally understand now:o

[Dannyboy777]

Hi all

 

Just to let you all know that following an LBA letter to Abbey credit card (MBNA), I have today received a response, basicaly a long winded letter explaining that their default fees are confidential and contains business sensitive information blah blah blah, but anyway they said as my account has been legally assigned to a debt collection agency, they have instructed them to credit my account by £170 (my claim was for £275) in order to end matters in this case.

 

So, in short, what I am saying is that anybody in a DMP who are hoping for a direct payout ie cheque to you, it aint gonna happen! My advice would be unless you've got small balances outstanding and reclaiming the fees would wipe them out, go for it or if you are in a similar position to mine, ie huge outstanding balances, reclaiming the charges are not gonna make a dent into the balances, I'd say save your time and money and dont bother, instead save the cash up and petition for bankruptcy and start with a clean slate!

 

All the best people!

[demon_x_slash]

Yikes, £135...sorry mate Good luck though, stick around, glad to have you - take a stroll over to the Debt forums and post your debt details up and it's possible you could find some other way to reduce the amount owing