Stepchange DMP help

[Warwick65]

Hi Col

It seems the advisor has this wrapped around his neck for some reason, while some of what he says can be true it can also be wrong so I will try to give you my understanding.

If the debt has been defaulted and it shows as defaulted on your credit file then you can not get another default. There are some instances when companies have tried it on but they shouldn't and you may even get compensation if you have suffered a loss. I would keep a copy of your credit report that shows default dates.

I however they manage to get a CCJ then that will show for another 6 years

If however the account only shows AP or arrangement then it will never fall off your credit file, that is why you need then defaulting. I had a couple that did to actually default me until I stopped paying.

You will now be starting the process of the debts hopefully becoming SB after 6 years. I would be aware though that some companies keep long records and even when the debt is statute barred they may be reluctant to open new accounts you may not fit the profile of their preferred customers (HSBC seem to have a profile, although they gave me a credit card:-) ).

[Night Monkey]

In these situations I like to remind myself of a comment from Di on my diary -

DMPs set up by charities are a way of outsourcing their debt collection activities in a seemingly respectable way.

I find that puts anything they have to say in context.

[Warwick65]

In these situations I like to remind myself of a comment from Di on my diary -



I find that puts anything they have to say in context.

While I think for some people in some cases a managed DMP is the right thing to do that may in itself change. I was in a fair for DMP for a long time. I regret I was in it for so long but at the time I started it, it made my life liveable. Remember I had 20 odd debts and was getting letters and phone calls on an almost daily basis, I was juggling payments to try and keep everyone happy. I passed all this on and was then able to stop dealing with everything.

As such I will never criticise anyone for entering a DMP as a starting point. That being said, I think it is important to understand where these charities get their funding and why they get their funding - they are funded by the credit industry who do so in order to retain their licence because they can point to this and say we do show forbearance and we do look after people who fall into arrears.

In a similar vain, the gambling industry have to show they support 'responsible gambling' by funding the various help programs - personally I think the gambling industry should be closed down and come the revolution it will be .

[Night Monkey]

...at the time I started it, it made my life liveable

I agree absolutely. I had around half a dozen creditors when everything went awry, and having StepChange deal with them and get them all off my back while I took stock and made sure that my mortgage was paid was a Godsend.

Having said that in retrospect it could be said that I used (and abused) them to get minimum payments set up before I went self-managed and ultimately pulled the plug. I too wish I'd taken the plunge earlier but we each take the path we're happy with at the time.

...I think it is important to understand where these charities get their funding and why...

Indeed. This certainly came as news to me.

[col81]

All quiet on the Western front, no letters/calls etc last payment to Stepchange was 6 weeks ago. I am keeping the Stepchange monthly payment money to one side to let it build up in case of issues

[col81]

Well PRA and Wescott have landed a letter each today. Both confirming the debts are on hold and they are still looking for the CCA's. Funny this because Wescott told me they had it and had sent it out on 2 occasions. I expect them to soon find that the payments have now stopped too. They have been looking for these CCA's now for 4 months.

I find it amazing that they can't find them as the debts are only 6 years old it seems to good to be true. Fingers crossed.

[Joanna Connolly Solicitors]

PRA and Wescott have landed a letter each today. Both confirming the debts are on hold and they are still looking for the CCA's. Funny this because Wescott told me they had it and had sent it out on 2 occasions.

They have been looking for these CCA's now for 4 months.

I find it amazing that they can't find them as the debts are only 6 years old it seems to good to be true.

That sounds like progress.

It may not be as simple as 'can't find them', it may be that the original creditor isn't being as cooperative as they would like them to be.

I hope you've kept the credit agreements Westcot sent you (twice) so you can compare them with anything different you get sent in the future

Di

[col81]

I have not paid Stepchange now for 3 months. All debts have CCA's other than 1 which is on hold. The CCA's have been checked and are valid. I have had letters threatening CCJ's if i don't pay.

I have offered one debt with Cabot £400 to settle in full (i owe £1250) they won't do it. I have offered another with Wescott (owned by Cabot) £400 (i owe £1150).

I am not sure what to do now so i am just leaving it to see what happens. In the meantime i am saving up the £140 PM i used to pay stepchange.

Any ideas?

[Joanna Connolly Solicitors]

All debts have CCA's other than 1 which is on hold. The CCA's have been checked and are valid. I have had letters threatening CCJ's if i don't pay.

I have offered one debt with Cabot £400 to settle in full (i owe £1250) they won't do it. I have offered another with Wescott (owned by Cabot) £400 (i owe £1150).

Any ideas?

The credit agreements may be enforceable but that doesn't necessarily mean the debt is enforceable if all the other statutory duties have not been complied with such as the Default Notice, Assignment etc.

Sometimes the difficulty in making an offer can be the debt purchaser 'smells money' so will automatically want double.

If they can see the debtor owns a property they may prefer to go to court in the hope of winning the case and then getting a Charging Order on the asset even if they have to accept modest monthly payments for a while. An unsecured debt becomes a secured debt that way.

They can threaten a CCJ all they like, but they'd have to win in court first!

Which "Cabot" (exact name on the NOA) owns the debt? Is it Cabot Financial (UK) Ltd who are not authorised by the FCA to issue legal proceedings, although that won't stop them from giving it a go >

Jo explains this legal point here >

Intrum UK Finance Limited is not authorised by the Financial Conduct Authority to exercise the rights of a lender. They rely on the para 55 FSMA 2000 servicing exemption.

We look forward to using the same legal arguments in the future against Intrum UK Finance Limited which we used against Idem Capital Securities Limited in the recent successful FCA authorisation Appeal where the Circuit Judge found that the para 55 FSMA 2000 servicing exemption did not allow the unauthorised debt purchaser to issue proceedings in the county court.

Di

[col81]

Hi Di,

Yes it is Cabot Financial (UK) Ltd. One of these debts is being managed by Wescott but owned by Cabot. It is impossible to get anywhere with them. I am just going to ride it our for a while and keep tucking the £150 P/M away. PRA Group have offered me £370 to settle a £400 debt!

The only bonus so far is my debt with PRA (Barclaycard for £2250) is unenforceable and on hold. The credit union will take £10 per month until the £2k + debit is cleared.

The good news is 2 of my 5 defaults have gone off my file another going this month then 2 in May. I should then be able to get my credit back and look to re-mortgage etc for a better deal. The light is at the end of the tunnel.

I just need to know the best direction to go in with these few small debts i have come so far and won't give up.

[Joanna Connolly Solicitors]

Hi Di,

it is Cabot Financial (UK) Ltd. One of these debts is being managed by Wescott but owned by Cabot. It is impossible to get anywhere with them.

I just need to know the best direction to go in with these few small debts i have come so far and won't give up.

That's the spirit!

When you have a moment can you update each debt in your post #9 so that forum members can see which have been viewed as unenforceable, when (what date) you sent the CCA Requests, date of last payment etc.

Then each time there is a development update again to get guidance on your next step.

Debt 1 Account
Loan agreement still with - Xxxxxxx Credit Union
Commencement date - 2014
Approx balance - £2390
Last payment date - last month
step change? - yes

Debt 2 Account
Credit Card natwest with - Cabot
Commencement date - 2014
Approx balance - £1265
Last payment date - last month
step change? - yes

Debt 3 Account
Credit Card natwest with - Wescott/Cabot
Commencement date - 2014
Approx balance - £1151
Last payment date - last month
step change? - yes

Debt 4 Account
Credit Card barclays with - PRA
Commencement date - 2014
Approx balance - £390
Last payment date - last month
step change? - yes

Debt 5 Account
Personal loan with Royal Bank Of Scotland with PRA
commencement date - 2014
approx balance - £2200
Last payment - last month
Step change - yes

Di

[col81]

Quick one...

Cabot/Westcott have started at £600 to pay off each £1250 debt i have. So they want £1200 to pay off £2500. These aren't on my credit file anymore and they do have the CCA's. I have bartered them down to £800 to clear them both i have hounded them over a week or so. I am going to pay the £800 and wipe the £2500 at lease then my debt is down to £4500.

PRA group won't knock a penny off my £390 account and one big debt of £2250 with PRA is not enforceable. In my eyes if i pay off the £800 and the £2250 debt in not enforcable i am down to around £2500 of debt left to go

[col81]

Debt 1 Account
Loan agreement still with - Xxxxxxx Credit Union
Commencement date - 2014
Approx balance - £2390
Last payment date - October 20
step change? - No

Debt 2 Account
Credit Card natwest with - Cabot
Commencement date - 2014
Approx balance - £1265
Last payment date - October 20
step change? - No (i have been offered a settlement of £400 on this account)

Debt 3 Account
Credit Card natwest with - Wescott/Cabot
Commencement date - 2014
Approx balance - £1151
Last payment date - October 20
step change? - No (I have been offered a settlement of £400 on this account)

Debt 4 Account
Credit Card barclays with - PRA
Commencement date - 2014
Approx balance - £390
Last payment date - October 20
step change? - No

Debt 5 Account
Personal loan with Royal Bank Of Scotland with PRA
commencement date - 2014
approx balance - £2200
Last payment - October 20
Step change - No (I have been told this in not enforceable)

[Joanna Connolly Solicitors]

Thank you for the updates.

one of the 5 debts is unenforceable so does that mean you’re still waiting for responses to your CCA Requests to the other 4?

Di

[HenyOrgnet]

Other providers may cancel your plan if you miss one payment, even if it's due to circumstances beyond your control. If you consistently skip DMP payments, they may have no choice but to terminate your DMP. In case that you are using those resources for your business, check this guide about invoices for business, to get the needed information, which will help you to solve the problem. But don't forget, that some companies may not accept these terms.