Settling with creditors

[Never-In-Doubt]

Re: Settling with creditors

^^^^ Thanks SnV

Another point on that, some lenders are waiting for 5 years happy accepting a payment to THEN add a default at that late stage, ie affecting you for 11 years in total.

Hence cessation of payments at an early stage actually forces them to default you.

Hope all this makes sense.... see the diaries section for full details, loads of example cases in there

[Undercover Elsa]

Re: Settling with creditors

Hi Missy,
Welcome to AAD!
A few other things to consider:
Have the creditors stopped interest on the accounts being paid via the Debt management Plan? (They should! otherwise he could get to then end and then find he's still got shedloads of interest to pay off, as one of our members discovered)
Is the DMP charging a fee to administer the debts? (They shouldn't!)
The LAST thing your BF should be doing is asking what the creditors want in order to settle. That's like giving them a blank cheque!
Finally, are there any unfair charges (late payment/overlimit fees) OR missold Payment Protection Insurance on any of these accounts?

I know it's hard to take that the defaults will remain, regardless of whether fully paid or not paid at all...but as Niddy says, they drop off after 6 years (EDIT 6 in Scotland too) from the ORIGINAL default date, no matter what you do. Very VERY occasionally a creditor may remove the default as part of a Full and Final settlement, but that's as rare as hen's teeth.

As your BF has nothing to lose, default wise, if it was me I'd put myself in the position of having the best possible bargaining power for as low a Full & Final settlement as possible.
This means:
Stopping paying for at least a few months - makes them more and more eager to "deal"
Send off for copies of the credit agreements - any failure to supply the agreement or the (numerous) errors that can and do occur will increase bargaining power.
Then YOU TELL THEM what you are willing to pay, starting low.

Finally, I appreciate that your BF hasn't (yet) done the reasearch on this as you are doing, but at the end of the day it is YOUR money you intend to use for settlement, so in my book you do have a say in how this is handled.
Far better, as mentioned above, to have as much money available for a deposit as possible...which of course will ultimately widen the range of mortgages available to you

Kind regards,
Elsa x

[Never-In-Doubt]

Re: Settling with creditors

but as Niddy says, they drop off after 6 years (5 in Scotland) from the ORIGINAL default date, no matter what you do.

Noooo that's Statute Barred - defaults stay 6 years no matter where you live in the UK.

[Undercover Elsa]

Re: Settling with creditors

OOOPS...quite right of course, I was getting carried away there!

[SA Gold]

Re: Settling with creditors

Thank you to everyone who has posted. I must say this forum and its members are golden!

I have decided to contact my creditors requesting a copy of the agreement using the template letter on this forum.

Once i have determined what is enforcable, and what isn't i was planning on dropping out of the DMP to start the party!

I will be starting a diary but just to answer some questions:

All my creditors issued a default against me almost instantly - thanks, lets get the clock ticking!

My DMP provider do not charge any fees and 100% of my monthly amount is being paid to my creditors.

They requested the interest is frozen and i believe this to be the case - i am paying a fraction of the original agreement and the balance with them all is going down, albeit slowly.

One question i do have:
I have read the link about CCA's and relieved to hear Niddy explain the default "egg timer" is set in stone; six years from the date of default is issued. I notice on my Equifax file there are green boxes all the way after them because i have paid on time through the DMP. Will late payments on each creditor make anything worse, or start a 6 year clock on the "late payment" part, or is it only a default which would hold this 6 year rule? Sorry, if this has been explained already - still trying to get my head around everything!

[helmsman]

Re: Settling with creditors

Thank you to everyone who has posted. I must say this forum and its members are golden!

I have decided to contact my creditors requesting a copy of the agreement using the template letter on this forum.

Once i have determined what is enforcable, and what isn't i was planning on dropping out of the DMP to start the party!

I will be starting a diary but just to answer some questions:

All my creditors issued a default against me almost instantly - thanks, lets get the clock ticking!

My DMP provider do not charge any fees and 100% of my monthly amount is being paid to my creditors.

They requested the interest is frozen and i believe this to be the case - i am paying a fraction of the original agreement and the balance with them all is going down, albeit slowly.

One question i do have:
I have read the link about CCA's and relieved to hear Niddy explain the default "egg timer" is set in stone; six years from the date of default is issued. I notice on my Equifax file there are green boxes all the way after them because i have paid on time through the DMP. Will late payments on each creditor make anything worse, or start a 6 year clock on the "late payment" part, or is it only a default which would hold this 6 year rule? Sorry, if this has been explained already - still trying to get my head around everything!

Hi,
If your credit is ok and your inheritance is pretty good would you not be able to secure a mortgage yourself. just a thought.

[SA Gold]

Re: Settling with creditors

Hi,
If your credit is ok and your inheritance is pretty good would you not be able to secure a mortgage yourself. just a thought.

hi there,
It is something we have considered although due to my salary being far less doesn't really allow for a much of a mortgage compared to a joint application.
That said, we are looking for properties which fall within my scope (which isn't a great deal) with view to moving in and doing work on rooms as and when we can afford it.
What we have been advised against (by friends who have done it and wish they hadn't) was to buy somewhere that is not fit for living in and putting up with it. Causes a lot of stress and then there is the problem of finding the money to get it put right.

One friend was desperate to buy somewhere on the tiny mortgage offered and had to time shaving and using the toilet in his working hours!

[helmsman]

Re: Settling with creditors

hi there,
It is something we have considered although due to my salary being far less doesn't really allow for a much of a mortgage compared to a joint application.
That said, we are looking for properties which fall within my scope (which isn't a great deal) with view to moving in and doing work on rooms as and when we can afford it.
What we have been advised against (by friends who have done it and wish they hadn't) was to buy somewhere that is not fit for living in and putting up with it. Causes a lot of stress and then there is the problem of finding the money to get it put right.

One friend was desperate to buy somewhere on the tiny mortgage offered and had to time shaving and using the toilet in his working hours!

Hi,
OK it was just a thought, shaving in the toilet forget that thought well best of luck whatever you decide.

[Never-In-Doubt]

Re: Settling with creditors

One question i do have:
I have read the link about CCA's and relieved to hear Niddy explain the default "egg timer" is set in stone; six years from the date of default is issued. I notice on my Equifax file there are green boxes all the way after them because i have paid on time through the DMP. Will late payments on each creditor make anything worse, or start a 6 year clock on the "late payment" part, or is it only a default which would hold this 6 year rule? Sorry, if this has been explained already - still trying to get my head around everything!

Ok, can you take a screen print of one of the accounts and email it me so I can see what you mean about the credit file - this may change things.....

Sit tight and if you can just screen print one entry and let me see it? agreements@all-about-debt.co.uk

Thanks

[SA Gold]

Re: Settling with creditors

Ok, can you take a screen print of one of the accounts and email it me so I can see what you mean about the credit file - this may change things.....

Sit tight and if you can just screen print one entry and let me see it? agreements@all-about-debt.co.uk

Thanks

Hi,
Just sent it over.

Edit: Just realised that i was looking at the wrong dates! The green is before the default! What a wally i am!

[Never-In-Doubt]

Re: Settling with creditors

Edit: Just realised that i was looking at the wrong dates! The green is before the default! What a wally i am!

Yep - notice down the right it shows status - then a great big red default? That's the killer.

As you can see, both defaulted 2010/2011 yet you're paying and nothing changes? Hence my argument, once the credit file is fubar, time to look at other options....

[SA Gold]

Re: Settling with creditors

Yep - notice down the right it shows status - then a great big red default? That's the killer.

As you can see, both defaulted 2010/2011 yet you're paying and nothing changes? Hence my argument, once the credit file is fubar, time to look at other options....

Yep, it's all started to sink in now!

I am actually typing up my diary in notepad this aftenoon, will save what i have done, complete at home tonight and post up. If i can catch the post office on the way home will be picking 3 postal orders!

Thanks for your help.

[Pixie]

Re: Settling with creditors

Yep, it's all started to sink in now!

I am actually typing up my diary in notepad this aftenoon, will save what i have done, complete at home tonight and post up. If i can catch the post office on the way home will be picking 3 postal orders!

Thanks for your help.

You've really nothing to lose. Certainly don't pay your inheritance to the creditors/dcas, put it towards the deposit.

[SA Gold]

Re: Settling with creditors

You've really nothing to lose. Certainly don't pay your inheritance to the creditors/dcas, put it towards the deposit.

Hey there,
Sorry i thought i replied to this one!
Thanks for your advice. Diary has begun!