Boxed in

[janderson]

Hi All

I do not know what direction to go in, we had our IVA turned down a while ago and are in a DMP with payplan. However now we are getting the calls and letters with all the threats that they contain. The first payment went through last month but some of our creditors say the amount they are getting is not enough and they are pushing aggresively for more.

We are at our wits end and it is affecting our health, we do not want BR but not sure what else we can do. Can anyone help with another IVA application that will be accepted.


thanks


John

[kallis3]

Hi,

Have you spoken to Payplan about the letters etc that you are getting? They will continue for a while until the payments start to settle down.

They will all be pushing for more money, but they will all be being paid pro rata.

These are bullying tactics and we had them when we were DMP.

You just tell them there is no more money, they are being paid pro rata and refer them to Payplan.

Have you spoken to Payplan about going for another IVA?

[MelanieGiles]

If you have appointed Payplan to act for you, then they ought to be sorting this out. A DMP is not in place until creditors have agreed to accept your payments - so you need to find out from them what exactly is happening.

[size5]

As a general rule, it doesn't matter a jot initially what you can afford on a DMP as creditors will always want more. It isn't a personal thing, more strictly business. It obviously benefits a creditor if they can collect more money in.

To make an offer of payment pro rata on a DMP, you have to have balances back from the creditors so that everyone gets their fair share. It is this stage, where the payment has been made but things have not been boxed off totally, that the pressure is at its worst. Kallis is correct in that you should refer any callers to Payplan, you shouldn't be tempted, either, to make token payments to individual creditors outside of your DMP.

Regards.

[Emily]

CCC and Paypal does all the prorata calculations for you to distribute to the creditors, and some will say it is not enough and some will accept.TOUGH LOVE. However, it is not for you to make a new offer...DO NOT MAKE CREDITORS THE OFFER YOURSELF, speak to CCC or Payplan...I think CCC is better at advicing on this.Its creditors BLUFFING. CCC will say as in their guide book, don't get rattle....creditors will calm down and by law they cannot sent the payment back to you...[legally]hence accepting. They will accept what you give them as decreed by PayPlan, and eventually sell your debt on which is even better. If Paypal isn't giving you this advice then switch to CCCs!

If you have no assets then what can they do! NOTHING. Don't worry even at been made BR by them, you can go BRupt and wipe the slate clean which is probably the best course of action. DMP are are temporary solutions and for small debts payable over a short time. If you debts will take you 5 or more years go BR.

[LoneRanger]

I wish i had found this forum before my difficulties started. I fell into the hands of the creditors and made a payment outside of my DMP, not until now did i realise i shouldnt have done this. I too was with payplan.

Although since my IVA propsal had to be withdrew [a couple of weeks ago] i have not had any contact bar RBS, who have passed the debt on-warning me of court action. The issue being i dont have a penny to pay to them at the moment until i find work.

Anyway back to what was been said, it seems to me payplan are vert sparse on the information they provide to people, they didnt even advise that a IVA may have been an option or BR. they were also very difficult to get hold of when creditors were chasing me. May be worth changing to someone else-i dont know [?]

[rockbottom]

HI John

you must be going through hell at he moment and i really feel for you, i havent got any advice i just hope you get it sorted soon, do you no how long you have to leave it before you can try for an IVA again?

rb

[flo]

I'm in the process of setting up a DMP with Payplan and am finding them very professional so far. I think it's the largest DMP company around so I don't expect the personal touch, but I have 2 named contacts who seem to be easily contactable.

What is really scary is the creditors who have passed me on to a debt recovery company. They are real bully boys who tell you that their client isn't looking for a long term solution! They also threaten to send people round to visit you in person. Very scary indeed. I'm pretty sure the law says they can't do that unless the debt is secured against your home. At the very least they would have to apply to a court for an injunction against you I believe (someone correct me if I'm wrong please). Does this mean they are breaking the law by threatening to visit you in person?

Other creditors can be very pleasant indeed and just inform you they will freeze the interest, file a default in 30 days time which will be on your file for 6 years. Does anyone know if this means that the remainder of the debt will be written off then if it hasn't been paid?

About token payments though, Payplan have recommended I make a small payment of £5 to each creditor regardless of debt I have with them. This is just to prevent them from taking further action while the plan is set up.

[kallis3]

Hi Flo,

Your creditors can send debt collectors round to your house. They don't need a court order to do that. It is very rare that they do though.

If they do call, you do not have to speak to them if you don't want to, and they cannot force you to pay any money to them.

If a bailiff comes round, he cannot enter your house by force, but if you have left a window or a door open, he can enter by those means, but that is pretty drastic and again doesn't happen often and requires a court order.

Regarding the default notice, if you are in a DMP, then you will have to continue paying until the debt is cleared. The remaining debt is only written off if you are in an IVA.

[flo]

once a default notice is issued, does this mean that no further interest can be added? I've heard scare stories about lenders freezing interest for a year whilst in a dmp and then adding it all back on so you actually owe more than you did when you defaulted. Is there any truth in this?

Also, is it true that lenders can't or won't make you bankrupt if it would make you lose your job and you are paying them back through a dmp? What if some of the creditors accepted the dmp and some didn't, could the ones who didn't make you bankrupt.

[kallis3]

A default notice will not prevent interest being added on, it simply means that you have not kept up with your payments and they normally ask for the whole amount, however if you are in a DMP you can pay them back at a mutually agreed amount. Usually interest and charges will cease, but this is by no means guaranteed.

Whilst I don't know the definitive answer to the bankruptcy question, it is not in the creditors interests to do this as they will get nothing back. In a DMP they will get all of their money, just over a much longer period.

I cannot see some of the creditors not agreeing, again, it is in their best interests to do so.

I think you need to speak to Payplan and tell them of your fears so that they can put your mind at rest.

[janderson]

Hi All

Thanks for the support and words of guidance, we got today a letter from Mercers for an account in my wifes name. They are now going to send in a debt collector to take payment.

I do not think any of these creditors listen to a word that is said to them they seem to have a script and nothing will allow any deviation from this. I have sent a copy of this letter to Payplan and am awaiting response. Does anyone have experience of mercers debt collectors and if so what is likely to happen.


thanks


John[V]

[Viki.W]

Jon, my barclaycard debt was passed to mercers and I had a debt collector round the other day. I have missed 5 months payments now. Apparently it's quite rare that the debt collectors will turn up, I was obviously unlucky, but they will carry on phoning and make you say it ALL again, and again![:(]

[kallis3]

Mercers are a real pain! They never give up. We always ignored them, and although threatened by debt collectors, they never turned up. I think Viki was just unlucky there.

[janderson]

Hi All

Again thanks for the messages of support, the mercers problem is hopefully resolved. Our caseworker at Payplan rang Barclays and they have accepted our offer on the DMP. However yesterdays good news is ameliorated by todays bad, Argos are not happy and have sent an aggressive default threatening similar action, debt collector blah blah. The annoying thing is according to the letter it is because their share is £1.73 and they want at least £2.00 or 4% of the plan whichever is the greater. They are owed £439.78, it is amazing how much resources they will expend to get such a small amount of return.



Any thoughts please.



Thanks


John[xx(]