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Posted: Sat Feb 05, 2011 12:10 pm
by andi
hi
i have gone with a DMP plan and thought everything was going great until i started to recieve letters again from creditors telling me that i have gone into arrears and over my limit when i was no where near my limit when i started the dmp. i have rang the card services and they informed me that no plan has been in place since november. the letters now state that court action will be taken, i feel let down by the company that i am with and i am in more debt now than i was before i went onto this plan. can someone advise me please on what action i should take. would i break my contract if i tried to pay some people myself whilst still with the dmp plan?? getting desparate now
Posted: Sat Feb 05, 2011 12:22 pm
by MelanieGiles
Hi Andi and welcome to the forum
That, unfortunately, is the downside of the DMP process.
How much do you owe in total to creditors and how much are you paying each month into the DMP?
Posted: Sat Feb 05, 2011 12:49 pm
by andi
MelanieGiles wrote:
Hi Andi and welcome to the forum
That, unfortunately, is the downside of the IVA process.
How much do you owe in total to creditors and how much are you paying each month into the DMP?
owe over £16,000 pay back £300 to dmp of which £255 goes to creditors
Posted: Sat Feb 05, 2011 12:53 pm
by MelanieGiles
On the basis of those facts, I think you are in the right process, but perhaps not with the right company. You need to use a firm who is prepared to take your case to the creditors and get them to stop the charges and interest mounting.
This sight recommends three DMP companies, all of whom I have personal knowledge of and would not hesitate to recommend. It may be worth giving them a call to see if they would be happy to take your case on, as it is a very simple process to hop from one DMP firm to another.
Posted: Sat Feb 05, 2011 12:56 pm
by Tina Shortland
Hi Andi - I think Melanie meant to say that is the downside of the DMP process!
With the figures you have mentioned it would be worth speaking to one or two professionals to go over your income and expenditure again to see if an IVA could be viable.
If you have done any research you will know the pitfalls you have come across in your DMP would not happen with an IVa as it is legally binding and has to be watertight. I am not surprised you feel let down.
Get some advice straight away so you can see what your options are and to allow an interim order to be in place to protect you if legal action is imminent.
You've some to the right place for help so no need to feel desprate anymore.
regards,
Posted: Sat Feb 05, 2011 12:57 pm
by MelanieGiles
Oh heck - I need to stop having late nights!!! Post now duly amended and thanks for being a good wingman Tina!!
Posted: Sat Feb 05, 2011 12:58 pm
by Tina Shortland
...so as not to confuse you, I am saying an IVA might be viable as it may be that the company who have been looking after you (and not very well by what you describe) may not have worked out your budget correctly and therefore in reality you may have less to afford each month that you currently pay.
If, on the other hand you can afford the £300 each month without problem and not rely on anymore credit alongside it, then as Mel says, a DMP sounds like it is still the best option for you but maybe with a better company.
Regards,
Posted: Sun Feb 06, 2011 10:49 am
by andi
Tina S wrote:
...so as not to confuse you, I am saying an IVA might be viable as it may be that the company who have been looking after you (and not very well by what you describe) may not have worked out your budget correctly and therefore in reality you may have less to afford each month that you currently pay.
If, on the other hand you can afford the £300 each month without problem and not rely on anymore credit alongside it, then as Mel says, a DMP sounds like it is still the best option for you but maybe with a better company.
Regards,
Posted: Sun Feb 06, 2011 10:51 am
by andi
hi so where do i stand if i want to pay the creditors myself plus stay with DMP plan? i can not see anything in T&C that states i cant do this
Posted: Sun Feb 06, 2011 12:56 pm
by Adam Davies
Hi
I think you can make extra payments but it may confuse the situation. Maybe better to speak with your existing company and find out what is happening.
The most important part of a DMP is what is happening to the interest charged, for the reasons shown above.
Regards
Posted: Sun Feb 06, 2011 1:03 pm
by kallis3
I would certainly think of using a different company. There are one or two who post on here that come highly recommended.
Posted: Sun Feb 06, 2011 3:30 pm
by Broke of London
Hi - do you know why the dmp is no longer in place? I would consider looking at one or two other companies to compare their advice to what you have already received. It sounds like you may be able to do a little better! X
Posted: Sun Feb 06, 2011 3:45 pm
by kallis3
The DMP probably still is in place - there is nothing to stop creditors contacting you or continuing to put interest and charges in place.
I used a fee paying company and received excellent service and interest and charges were frozen from day one. We used to get a letter every six months asking if anything had changed. We told them it hadn't and they went away quite happily.
Posted: Sun Feb 06, 2011 5:49 pm
by Broke of London
In his first post the OP says the creditor informed him there hadn't been a plan in place since November.
Posted: Sun Feb 06, 2011 5:51 pm
by kallis3
The card services said that - doesn't necessarily follow that there isn't one.
The OP needs to speak to the company they are using to find out for definite.