Debt management payments.

[skyline]

just took a call from FJ. This matter is now being ivestigated by them and GP.

[Sarah Jolly]

Dear skyline

I’m sorry about the upset this has caused you and know you've been in touch with us today.

The team are investigating your concerns regarding the reduction in your creditor balances whilst you were on your debt management plan with Gregory Pennington.

I think this highlights a key difference between an IVA and a DMP. When an IVA is accepted your lenders are obliged to stop charging you interest and adding any other charges to your account. This means that all of your payments (net of fees) go towards paying off the debt principal. By contrast on a DMP, lenders are not obliged to freeze interest and charges. Whilst we will negotiate with them to do so, not all will allow concessions.

We’d be happy to provide you with a schedule that breaks down the initial balance when you started your DMP, the payments made to each creditor (net of fees), when or if the creditors stop applying interest and charges and the balances at the end of your DMP. I have asked the team to send this to you.

The balance at the end of your DMP should be the same as the starting balances for your IVA. However, there may be debts that weren’t included in your DMP but must be included in an IVA.

If we can help any further please don't hesitate to contact us.

I hope this information helps.

[North East Derbyshire CAB]

Hi

A very interesting thread, epsecially regarding the mentioned added interest.

Lets see what GPs response will be.

Hope you get sorted

Paul - NEDCAB

[North East Derbyshire CAB]

font size="1" face="Verdana, Arial, Helvetica">quote:<hr height="1" noshade>Originally posted by Sarah Jolly

Dear skyline

I’m sorry about the upset this has caused you and know you've been in touch with us today.

The team are investigating your concerns regarding the reduction in your creditor balances whilst you were on your debt management plan with Gregory Pennington.

I think this highlights a key difference between an IVA and a DMP. When an IVA is accepted your lenders are obliged to stop charging you interest and adding any other charges to your account. This means that all of your payments (net of fees) go towards paying off the debt principal. By contrast on a DMP, lenders are not obliged to freeze interest and charges. Whilst we will negotiate with them to do so, not all will allow concessions.

We’d be happy to provide you with a schedule that breaks down the initial balance when you started your DMP, the payments made to each creditor (net of fees), when or if the creditors stop applying interest and charges and the balances at the end of your DMP. I have asked the team to send this to you.

The balance at the end of your DMP should be the same as the starting balances for your IVA. However, there may be debts that weren’t included in your DMP but must be included in an IVA.

If we can help any further please don't hesitate to contact us.

I hope this information helps.

Hi Sarah

Looks like you beat me to it.

Interesting comments on creditors charging interest in DMPs

Paul NEDCAB

[skyline]

Thanks Paul,

I'll keep updating the thread. as far as interest on the DMP, i was told by GP that all was frozen and the reason for been guided into IVA was that the 2 MBNA cards i had were proposing to stop the freeze, hence went into IVA. Cannot believe that MBNA then charged £4100 for 3 months between DMP and IVA.

Regards,

font size="1" face="Verdana, Arial, Helvetica">quote:<hr height="1" noshade>Originally posted by North East Derbyshire CAB

Hi

A very interesting thread, epsecially regarding the mentioned added interest.

Lets see what GPs response will be.

Hope you get sorted

Paul - NEDCAB

[North East Derbyshire CAB]

font size="1" face="Verdana, Arial, Helvetica">quote:<hr height="1" noshade>Originally posted by skyline

Thanks Paul,

I'll keep updating the thread. as far as interest on the DMP, i was told by GP that all was frozen and the reason for been guided into IVA was that the 2 MBNA cards i had were proposing to stop the freeze, hence went into IVA. Cannot believe that MBNA then charged £4100 for 3 months between DMP and IVA.

Regards,

font size="1" face="Verdana, Arial, Helvetica">quote:<hr height="1" noshade>Originally posted by North East Derbyshire CAB

Hi

A very interesting thread, epsecially regarding the mentioned added interest.

Lets see what GPs response will be.

Hope you get sorted

Paul - NEDCAB

Hi

You are welcome

We will keep looking in

Paul - NEDCAB

[North East Derbyshire CAB]

font size="1" face="Verdana, Arial, Helvetica">quote:<hr height="1" noshade>Originally posted by North East Derbyshire CAB

font size="1" face="Verdana, Arial, Helvetica">quote:<hr height="1" noshade>Originally posted by skyline

Thanks Paul,

I'll keep updating the thread. as far as interest on the DMP, i was told by GP that all was frozen and the reason for been guided into IVA was that the 2 MBNA cards i had were proposing to stop the freeze, hence went into IVA. Cannot believe that MBNA then charged £4100 for 3 months between DMP and IVA.

Regards,

font size="1" face="Verdana, Arial, Helvetica">quote:<hr height="1" noshade>Originally posted by North East Derbyshire CAB

Hi

A very interesting thread, epsecially regarding the mentioned added interest.

Lets see what GPs response will be.

Hope you get sorted

Paul - NEDCAB

Hi

You are welcome

Lets hope things turn out OK for you

We will keep looking in

Paul - NEDCAB

[MelanieGiles]

Thankfully, with the impending advent of the Debt Management Protocol, banks continuing to charge interest during a DMP will be a thing of the past for those firms who sign up to the protocol.

[skyline]

Hi Sarah.

Any update on this? I have not had any contact from Gregory pennington as yet.

Thanks... Skyline

font size="1" face="Verdana, Arial, Helvetica">quote:<hr height="1" noshade>Originally posted by Sarah Jolly[/i



Dear skyline

I’m sorry about the upset this has caused you and know you've been in touch with us today.

The team are investigating your concerns regarding the reduction in your creditor balances whilst you were on your debt management plan with Gregory Pennington.

I think this highlights a key difference between an IVA and a DMP. When an IVA is accepted your lenders are obliged to stop charging you interest and adding any other charges to your account. This means that all of your payments (net of fees) go towards paying off the debt principal. By contrast on a DMP, lenders are not obliged to freeze interest and charges. Whilst we will negotiate with them to do so, not all will allow concessions.

We’d be happy to provide you with a schedule that breaks down the initial balance when you started your DMP, the payments made to each creditor (net of fees), when or if the creditors stop applying interest and charges and the balances at the end of your DMP. I have asked the team to send this to you.

The balance at the end of your DMP should be the same as the starting balances for your IVA. However, there may be debts that weren’t included in your DMP but must be included in an IVA.

If we can help any further please don't hesitate to contact us.

I hope this information helps.

[MelanieGiles]

It doesn't look as if Sarah has logged on for a few days. Perhaps she is on annual leave?

[Sarah Jolly]

Hi Skyline

I’ve contacted my colleagues as I've asked both the team at Freeman Jones and at Gregory Pennington to investigate your concerns independently.

I believe that you should now have received a call and an email from them.

I hope this helps

[lem]

What interests me here is how many representatives we have had from the debt industry on here tell us that fee charging companies for dmps are generally worth it compared to the debt charities as they are more successful at getting interest stopped for debtors, that doesn't seem the case here, I would have expected Gregory Pennington to have had more success at that for the op being in a dmp and being charged interest for that length of time!

[ClareSilver]

With the new debt management protocol in place, more creditors will be accepting dmps (providing they sign to the protocol) and interest and charges are more liekly to be suspended.

[skyline]

Hi Sarah,

No phone calls or emails as yet from either party.

font size="1" face="Verdana, Arial, Helvetica">quote:<hr height="1" noshade>Originally posted by Sarah Jolly

Hi Skyline

I’ve contacted my colleagues as I've asked both the team at Freeman Jones and at Gregory Pennington to investigate your concerns independently.

I believe that you should now have received a call and an email from them.

I hope this helps

[skyline]

Lem

just too add, i was told both at the start and during my DMP that all charges and interest were frozen. The reason for being advised by Greg penn to go into an IVA, was that MBNA for which i had 2 credit cards with were possibly going to start charging interest again. hence the move to IVA.

Skyline..

font size="1" face="Verdana, Arial, Helvetica">quote:<hr height="1" noshade>Originally posted by lem

What interests me here is how many representatives we have had from the debt industry on here tell us that fee charging companies for dmps are generally worth it compared to the debt charities as they are more successful at getting interest stopped for debtors, that doesn't seem the case here, I would have expected Gregory Pennington to have had more success at that for the op being in a dmp and being charged interest for that length of time!