Hi there i know this is a Iva site but I''m just entering into a debt management plan and one of my creditors is black horse finance.
I have a lloyds tsb business bank account, will they close my lloyds tsb account as i know the two companies are related when i enter the debt management plan to pay the black horse loan off or will my business account be ok.
Any help on this would be much appreciated.
Welcome to the forum, I don't know the answer to your question, but one of the experts will be along soon. I know in an IVA you'd be advised to change your account but not sure with a DMP>
Even though this is an IVA site, the forum advice covers everything...and I mean everything [:)]
Hello shaun, Im sure someone with more experience with this will come along and let you know. But from my experience when I was in a DMP before moving to an IVA I was asked to open an account with another bank. I used to back with barclays and they are one of my creditors. This was to ensure that any funds in my account like my wages werent frozen at any point.
I would possibly look to opening a different account so that you can be prepared if this was to happen - not sure they talk to each other between departments, and as this is a business account it may never happen, but better to be safe than sorry !
Sharing from experiences of dealing with debt
There is a solution for everyone .... Just need to stay positive !
we started a dmp which we were told after 7 years would be paid off after the 7 years we were still paying and was told by our dmp that there was a further 8 years to go as the creditors were still charging intrest that is why we chose to go the iva way as on a dmp they still add intrest so if you have the option of an iva it is worth looking into as all intrest is stopped
Hi
In a DMP creditors will receive the full debt back, you would think that they would try to help the situation by stopping interest, or at least bringing it right down to a level where capital is being paid off.
For anyone in a DMP am I right in thinking that once the debt is sold to a third party,i;e a debt collection agency, that interest does stop ?
Regards
Regards
With the DMP I did, all my creditors bar HSBC, froze interest and charges from day one.
I was advised to change my bank account though as HSBC were my main creditor and kept taking the loan payments out of the account even though there was no money in there to pay for it.
They sold the debt on to Robinson Way and the charges stopped.
Sharing from experiences of dealing with debt
The greatness of a man is not in how much wealth he acquires, but in his integrity and his ability to affect those around him positively.
Bob Marley. http://kallis3.blogs.iva.co.uk
How awful is that - to pay into a DMP for 7 years, to then find out that you have another 7 years to pay. I am glad that DMP companies are now being obliged to provide a more rounded advice to their clients, and to be accountable for the quality of that advice. Clearly an IVA would have been a better option for you all those years ago.
Hi guys thank you very much for all your feedback i will try and open another business account if poss, i just didn't want my business account been closed due to the black horse loan which would really mess things up.
Thanks once again.[:)]
It is important for potential persons with financial problems seeking appropriate advice to ask if a DMP is suggested "for how long" and what is the position on interest! Some very bad advice does eminate from some companies and that is one reason why the Debt Resolution Forum (DRF) was set up to apply strict standards which will be monitored in respect of their members. The moral is to ask as indicated above!
Last edited by David Mond on Sun Jan 11, 2009 8:11 pm, edited 1 time in total.
Regards, David Mond, Insolvency Practitioner for over 46 years. Personal Insolvency Practitioner of the year 2012, Personal Insolvency Practitioner of the year finalist 2013 & 2014 awarded by Insolvency & Rescue Magazine and 2015 finalist for Personal Insolvency Firm of the Year.
Further to Andys comment I don't think there is any particular legal obligation on the purchaser of a debt not to charge interest but that probably depends on the terms of the sale and the terms of the original agreement.
In reality the amount tends to settle because any connection to the original credit agremeent has been largely lost.
My own view is that once a debt is sold the nominal amount simply acts as a licence for the purchaser to recover what they can from the debtor. The expecation to recover the full amount (or anything close to it) will be very low.
My creditors stopped all interest and charges, some of them were never sold on until after the IVA either.
Sharing from experiences of dealing with debt
The greatness of a man is not in how much wealth he acquires, but in his integrity and his ability to affect those around him positively.
Bob Marley. http://kallis3.blogs.iva.co.uk
